The European Commission should not make the implementation of a carbon border adjustment mechanism into a must-have element of its climate policy. There is little in the way of strong empirical evidence that would justify a carbon-adjustment measure. Moreover, significant logistical, legal and political challenges will arise during the design. The EU should instead focus upon the implementation of measures to trigger the development of a competitive low-carbon industry in Europe.
The recipe for a successful European Green Deal is as simple as it is breath-taking: to intelligently promote deep decarbonisation by accompanying the economic and industrial transformation this necessarily implies, and by ensuring the social inclusiveness of the overall process.
From carbon leakage to “green protectionism”, the European Green Deal envisioned by the incoming Commission has many critics. But some adjustments to the deal could make domestic manufacturers more carbon efficient while simultaneously encouraging foreign producers to become more environmentally friendly.
The effort to define rules for international emissions trading faces the strong desire of nation states to develop their own climate policies, which collides with the need for tradable units in one country to be equivalent to tradable units in another country. To overcome this dilemma Georg Zachmann proposes a club of carbon-buying countries that would regulate only imported mitigation outcomes.
The current unsustainable use of our environment can lead to financial crisis. To address this risk, financial institutions should measure their exposure to ecological imbalances using methodologies such as carbon and natural capital accounting.
As the COP21 conference approaches, what are the political and economic considerations?
What’s at stake: France will chair and host the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) at the end of the year. While the scientific community has reached a consensus that climate-warming trends are very likely due to human activities, the discussion about how to address is mired in huge political disagreements.
Europe needs to convince poor countries that it is serious about a climate deal. To do this it must act jointly and decisively to shape global climate finance.
This Policy Brief describes the interaction between three approaches that are effective in driving innovation in low-carbon technologies. Based on that, the author provides four recommendations for making low-carbon technology support smarter.
On 8 July the European Parliament finally voted to introduce a mechanism to stabilise the European emissions trading system (ETS). What can a detailed analysis of the voting results tell us about European enthusiasm for ETS?
Energy & Climate
Following a vote by the European Parliament to boost the price of allowances on the EU’s carbon market, Georg Zachmann analyses the debate surrounding the Emmission Trading System (ETS) as a whole. Zachmann believes that "backloading," or witholding the allowances to fight their falling price, is part of a politically charged debate with little economic […]