External Publication

Conditions are ideal for a new climate club

The technical and political conditions are ideal for the creation of a climate club to catalyse tougher climate action worldwide.

By: and Date: September 9, 2021 Topic: Energy & Climate

This piece was originally published by Energy Policy. 

 

Annual global greenhouse-gas emissions have been rising steadily for decades and show no sign of peaking. That is, humankind is not making enough progress to exclude a possibly catastrophic climate scenario. Protecting the climate is difficult because of free-riding: emissions abatement costs are largely national but the benefits from climate stability are global. Dealing with this problem needs to be at the core of a new climate strategy. This article argues that both technological and political conditions are now ideal to establish a new climate club, in which members commit to stronger domestic climate measures and agree on the coordinated introduction of carbon border adjustment measures. On the technology side, there have been stunning clean technology cost reductions. This will underpin the climate club: as abatement costs fall, club stability can be more easily achieved. On the political side, we now see the United States, European Union and China – representing half of global greenhouse gas emissions – sharing for the first time a common climate ambition while popular support in all economies is also high for substantial climate actions. These two changes make a climate club more likely stable as the benefits from deviating from the club have diminished. A relatively weak penalty, such as carbon border adjustment measure, may then suffice for club stability. This climate club would also create incentive for other countries to join the club, thus making it a catalyst for tougher climate action worldwide.

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Working Paper

Can climate change be tackled without ditching economic growth?

The notion of degrowth to reduce greenhouse gas emissions appears unrealistic; decoupling of emissions from growth is in principle possible but requires unprecedented efforts.

By: Klaas Lenaerts, Simone Tagliapietra and Guntram B. Wolff Topic: Energy & Climate Date: September 16, 2021
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Past Event

Past Event

The Sound of Economics Live: Unboxing the State of the Union 2021

In this Sound of Economics Live episode, we look at the State of the Union address delivered by Ursula von der Leyen, President of the European Commission.

Speakers: Grégory Claeys, Maria Demertzis, Alicia García-Herrero and Giuseppe Porcaro Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: September 15, 2021
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Blog Post

Is Europe’s gas and electricity price surge a one-off?

Surging natural gas prices in Europe, driven by rising demand and tight supply, are pushing up electricity prices; to prevent volatility, governments need to commit more clearly to a low-carbon future.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: September 13, 2021
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Policy Contribution

A green fiscal pact: climate investment in times of budget consolidation

Increasing green public investment while consolidating deficits will be a central challenge of this decade. A green fiscal pact would address this tension, but difficult trade-offs remain.

By: Zsolt Darvas and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: September 9, 2021
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Podcast

Podcast

A Late Bloomer: where is China’s climate plan?

The world awaits China's concrete plan on carbon reduction, but the country is following its own pace.

By: The Sound of Economics Topic: Global Economics & Governance Date: September 8, 2021
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Opinion

EU climate plan should involve taxing pollution, not borders

Climate change and taxes may be some of the only true certainties in life. To protect ourselves better, we should make careful choices on how they interact.

By: Rebecca Christie Topic: Energy & Climate Date: September 6, 2021
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Past Event

Past Event

Academic lecture: International technology competition

Bruegel Annual Meetings, Day 3 - On the final day of the Annual Meetings, our Director Guntram Wolf sits with Keyu Jin to discuss international competition policy.

Speakers: Keyu Jin, J. Scott Marcus and Guntram B. Wolff Topic: Innovation & Competition Policy Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 3, 2021
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Past Event

Past Event

Sustainable finance

Bruegel Annual Meetings, Day 3 - In this session on the final day of the Meetings, our panelists will discuss the future of finance and its sustainability.

Speakers: Maria Demertzis, Alberto De Paoli, Pierre Heilbronn and Alexandra Jour-Schroeder Topic: Energy & Climate, Finance & Financial Regulation Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 3, 2021
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Past Event

Past Event

The role of the state in providing infrastructure for decarbonisation

Bruegel Annual Meetings, Day 2 - Who should be responsible for providing crucial infrastructure for decarbonisation and how should it be managed?

Speakers: Jean-Bernard Lévy, Diederik Samsom, Simone Tagliapietra, Laurence Tubiana and Georg Zachmann Topic: Energy & Climate Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
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Blog Post

Hydrogen development strategies: a global perspective

Despite different strategies, the European Union, the United Kingdom, the United States, China and Japan all expect hydrogen to play a significant role in the decarbonisation of their economies by expanding its use in energy and transport systems.

By: Alicia García-Herrero, Simone Tagliapietra and Victor Vorsatz Topic: Energy & Climate Date: August 30, 2021
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Blog Post

How much investment do we need to reach net zero?

The size and scope of investments needed to reach net zero will have significant macroeconomic implications.

By: Klaas Lenaerts, Simone Tagliapietra and Guntram B. Wolff Topic: Energy & Climate Date: August 25, 2021
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Opinion

Poorest should be able to buy into decarbonisation

Climate action should be designed in a way that improves social equality.

By: Simone Tagliapietra Topic: Energy & Climate Date: August 19, 2021
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