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The report compiles research on enhancing global climate action, focusing on innovative financing mechanisms like microfinance and debt-for-climate swaps, the role of carbon pricing in driving innovation, and the necessity of robust accountability frameworks for the Paris Agreement. It also examines specific urban water resiliency in Patna, India, and proposes a Low-Emissions Technology Commitment within the UNFCCC to accelerate energy research. The proceedings emphasize the need for a multi-level approach to adaptation and the potential for 'climate clubs' to overcome multilateral deadlock.

The Global Climate Policy Conference 2015 explored innovative research-driven approaches to climate action, focusing on the intersection of development, adaptation, carbon pricing, and state accountability. Key discussions highlighted the need for a 'club' approach to carbon pricing and technology, the importance of microfinance and local capacity in adaptation, and the role of basic energy research in breaking the link between emissions and economic growth.

The report outlines discussions from a July 2015 workshop regarding the creation of 'low carbon clubs'—coalitions of countries, regional entities, or nonstate actors cooperating on climate objectives. Participants emphasized that such clubs must provide excludable benefits to members to incentivize participation and prevent free riding. The discussions highlighted the necessity of linking carbon pricing with technology innovation and redistribution to ensure efficiency and consumer acceptability. While a global carbon price is deemed unattainable, these clubs are seen as a way for actors to move at 'multiple speeds' complementary to multilateral frameworks like the UNFCCC and the WTO.

The document outlines the 'fears and suspicions' of the climate community regarding how WTO rules and trade assumptions may obstruct progress on climate change. It argues that the trade regime's focus on economic growth and the avoidance of trade restrictions creates a 'chilling effect' on climate action, as countries fear carbon leakage and loss of competitiveness. The author explores three potential trade-related strategies for climate action: 'levelling up' through border adjustment measures or coordination, favoring environmental goods and services, and using trade sanctions. The paper concludes that while specific reforms to GATT Article XX and the most-favored-nation principle are ideally needed, indirect approaches via jurisprudence or guidelines are more politically realistic.

The European steel and cement sectors face substantial surplus production capacity and limited reinvestment, hindering the adoption of low-carbon technologies. While energy efficiency and fuel-switching have provided some gains, breakthrough process technologies like carbon capture and storage (CCS) require significant public funding and a credible, long-term carbon price signal for both producers and consumers to be viable. The report argues that a comprehensive policy package—combining the EU ETS, innovation funding, and updated building standards—is essential to transition these capital-intensive industries toward sustainable, high-value production.

The report argues that a "carbon market only" approach is insufficient for the cost-effective decarbonisation of the European power sector. While the EU ETS is an effective tool for driving fuel switching in the residual thermal generation mix, it cannot alone drive necessary investments in low-carbon technologies due to high capital costs, revenue risks, and the 'merit order effect'. The authors recommend a policy mix where the EU ETS is complemented by tailored national investment supports—such as feed-in tariffs or contracts for difference—to reduce the cost of capital. To ensure coherence, the report proposes an ex-ante cap adjustment process for the ETS based on Member State National Energy and Climate Plans and the development of long-term decarbonisation strategies back-casted from 2050.

The document outlines a framework called 'Planetary Economics' to address the inadequacy of traditional neoclassical economics in solving climate change. It proposes three domains of socio-economic processes: the First Domain (Satisficing), focusing on human behaviour and efficiency gaps; the Second Domain (Optimising), focusing on market trade-offs and pricing; and the Third Domain (Transforming), focusing on innovation and systemic change. These domains map to three policy pillars: standards and engagement for efficiency, markets and prices for carbon reduction, and strategic investment for infrastructure and innovation. The author concludes that only an integrated strategy combining all three pillars can effectively decarbonise energy systems and overcome systemic 'lock-in' and behavioural inertia.

The policy brief addresses the 'predictability problem' of public climate finance, where funding is often subject to the political caprice of national budgeting processes. It proposes three plans to secure more reliable funding: 'Plan A' involves international levies on aviation and maritime emissions; 'Plan B' suggests earmarking domestic sources like financial transaction taxes or air passenger duties; and 'Plan C' proposes sub-national contributions from entities like California and Quebec. The author advocates for a 'Development Gold Standard' where governments set aside 2% of carbon instrument revenues for the most vulnerable countries, specifically targeting the under-funded Least Developed Country Fund (LDCF).

The policy brief argues that current carbon pricing mechanisms, which use free allowances to prevent carbon leakage in industrial sectors, eliminate the price signal for mitigation beyond primary production efficiency. To address this, the authors propose 'Inclusion of Consumption,' where a consumption charge is levied on carbon-intensive materials (such as steel, aluminum, and clinker) based on benchmark emission values and the carbon price. This charge would apply to all domestic consumption regardless of origin, making it compatible with WTO law. The mechanism would use duty suspension arrangements to track materials through the value chain, with the charge becoming due only when the good is released for consumption. The brief notes precedents in Asia (South Korea, China, Tokyo) regarding electricity consumption and discusses potential implementation in Europe and the United States.

The report examines the concept of 'Green Growth' and its potential to unblock international climate negotiations. It identifies a lack of a unified definition among stakeholders—including economists, the private sector, and civil society—and notes that while some developing nations have adopted the framework, major powers like the US, China, and the EU have not. The document argues that the narrative can gain traction by evidencing climate co-benefits and aligning with the Intended National Determined Contributions (INDC) process. Case studies from Brazil, India, and Colombia illustrate how these principles are applied domestically, though challenges such as low loan take-up in Brazil and the need for affordable technology in India persist.

The document argues that the EU's 2030 target of reducing non-ETS emissions by 30% relative to 2005 levels will create a significant gap between the demand for and supply of Annual Emissions Allocations (AEAs). It suggests that the existing 2020 flexibility mechanism is insufficient and proposes the creation of an AEA Clearinghouse to facilitate project-based trading, increase market transparency, and catalyze low-carbon investment in lower-income Member States.

The report investigates the potential for a Market Stability Reserve (MSR) to address market and regulatory failures in the EU ETS, such as limited banking capacity and regulatory myopia. Through a model comparison exercise involving twelve institutions, the authors assess different MSR designs—including the European Commission's proposal, an 'Early Start' version, and price-based mechanisms—across indicators of efficiency, price credibility, consistency, transformation, and robustness. The findings suggest that an MSR generally improves performance, with an Early Start MSR (2017) offering superior benefits over the 2021 proposal. The report emphasizes that the effectiveness of quantity-based MSRs depends heavily on setting trigger levels that accommodate the hedging needs of market participants, suggesting the use of REMIT Directive data for future adjustments.

The report identifies a portfolio of low-carbon opportunities for the European steel sector, ranging from energy efficiency and fuel shifting to breakthrough technologies like Carbon Capture and Sequestration (CCS) and increased recycling. It argues that current EU ETS mechanisms, particularly free allocation based on historic volumes, fail to provide sufficient incentives for deep decarbonisation and high-value product innovation. The authors recommend a structural reform of leakage protection, specifically proposing a combination of output-based allocation and the inclusion of consumption in the EU ETS to create a credible business case for breakthrough technologies and material efficiency. The report also emphasizes the need for sustained public funding for process innovation to overcome the 'valley of death' in technology scaling and suggests strengthening links between steel producers and downstream consumers, particularly in the automotive and construction sectors, to drive demand for lightweight, high-strength steels.

The document explores diverse strategies to advance international climate policy, including the adoption of a 'green growth' narrative, the application of social psychology to fairness and equity disputes, and the use of 'clubs' or public-private technology pools to bypass traditional negotiation impasses. It specifically examines the legal interpretation of 'common but differentiated responsibilities' (CBDR), the potential of green bonds to mobilize private finance, and the 'Quisqueya Platform' for creating synergies between mitigation and adaptation in developing countries.

The document outlines a proposal to introduce a 'Charge' for carbon-intensive goods, such as steel and clinker, based on the EU ETS permit price and Best Available Technology (BAT) benchmarks. Drawing on the European excise system, it suggests a 'Production Sphere' where registered 'Carbon Keepers' and 'Carbon Warehouses' can handle goods under duty suspension, and a 'Consumption Sphere' where the charge is triggered upon sale to unregistered entities or final consumers. The report recommends a Carbon Monitoring and Control System (CMCS) for tracking movements and the use of de minimis thresholds for imports based on the ratio of carbon value to product value.

The report argues that low-carbon technology adoption in developing countries requires tailored innovation systems rather than a one-size-fits-all approach. It identifies specific needs for the 'bottom of the pyramid' (energy access), the rising middle class (lifestyle and urban planning), and industrial sectors (efficiency and value chain integration). The authors emphasize that the public sector must mitigate risks through financial support and coordination, while international bodies like the UNFCCC's Technology Mechanism should act as brokers to link finance, R&D, and knowledge sharing.

The report finds that while the EU ETS initially focused management attention on CO2, a declining carbon price and free allocation rules have since diminished its impact. Most emission reductions were driven by economic cycles or non-ETS regulations. The authors argue that current free allocation creates distortions, such as discouraging asset rationalization and incentivizing excess clinker production. To unlock deep mitigation like Carbon Capture and Storage (CCS) and clinker substitution, the report recommends strengthening the carbon price signal, reforming leakage protection through output-based allocation or the inclusion of consumption, and providing targeted innovation support.

The document examines Europe's position within a global 'leading group' of countries advancing energy efficiency, renewable energy, and carbon pricing. It argues that staying in this group is essential for Europe to attract investment, drive innovation, and reduce dependence on energy imports. The authors contend that energy prices are not the primary driver of global competitiveness for most industries, as 92% of German manufacturing spends less than 1.6% of revenue on energy. For the small minority of energy-intensive sectors, the report asserts that price differentials are primarily caused by natural resource endowments rather than climate policies, and that existing 'Carbon Leakage' protections in the EU ETS mitigate competitive risks. The report concludes that a coordinated European low-carbon strategy can create net-employment gains and maintain international credibility in climate negotiations.

The document argues that developing countries can avoid high-carbon lock-in by adopting strategic industrial policies to build technological capabilities. It examines energy efficiency in the sub-Saharan African cement sector and the growth of renewable energy manufacturing in China and India, recommending a mix of targeted protectionism, best available technology regulations, and international support to transition toward climate-compatible development.

The document examines how carbon pricing can lead to 'carbon leakage' and competitive disadvantages for domestic industries. It categorizes policy responses into domestic measures (subsidies, cost containment, and flexibility) and international measures (border adjustments and policy extension). Using the EU ETS as a primary case study, it highlights the risks of free allowance allocation, such as windfall profits and political rent-seeking, while noting that empirical evidence often suggests competitiveness concerns are overstated. It concludes that while border adjustments are theoretically effective, they pose significant risks of trade disputes and diplomatic tensions.