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The research paper evaluates the impact of approximately 43 million Euros spent on CDM capacity building in Africa and LDCs over a decade. It finds that while institutional support for establishing Designated National Authorities (DNAs) was generally successful, subsidies for project development were largely ineffective, resulting in a high implicit cost per registered project. The authors argue that a holistic approach coordinating the entire CDM process is necessary for better outcomes.

The document examines the criteria for identifying sub-sectors exposed to a significant risk of carbon leakage under EU ETS Phase III. It argues that calculating additional costs without accounting for free allowances is logically inconsistent, as free allocation is intended to mitigate the very leakage it is meant to identify. Using UK data, the author illustrates that a gradual inclusion of sectors as free allocations decline from 80% in 2013 to 30% by 2020 provides better visibility, allows for learning, reduces economic distortions, and maintains incentives for international climate cooperation.

The report projects emissions for the EU, Japan, and other Annex I countries up to 2012 and 2020. It finds that while the EU ETS is likely to have a surplus of allowances up to 2012 at a price of €20/tCO2, the EU-15 and Japan will face overall deficits relative to their Kyoto targets. Conversely, Russia, Ukraine, and new EU member states are projected to have significant emission surpluses. Looking toward 2020, the EU ETS is expected to enter a deficit unless efficiency and renewables targets are met, suggesting a rise in carbon prices post-2012.

The document examines the legislative debate in the US regarding the adoption of a nationwide emissions trading scheme and the use of border adjustment measures to prevent carbon leakage and protect industrial competitiveness. It analyzes specific proposals like the Climate Security Act of 2008, arguing that while such measures are likely to be included in future legislation, they face significant legal risks under WTO rules, particularly the most-favored nation principle. The paper contrasts the US focus on 'competitiveness' and 'free-riding' with the EU's focus on 'carbon leakage' and recommends international coordination to avoid trade wars and ensure that such measures are based on environmental rather than protectionist rationales.

The document analyzes the 'boom and bust' pattern of carbon prices in emissions trading schemes, attributing it to fixed supply facing highly uncertain demand and asymmetric information. It argues that price collapses undermine low-carbon investment and economic efficiency. While rejecting carbon taxation as a viable alternative due to political and implementation hurdles, the author proposes several policy options to stabilize markets, highlighting reserve price auctions in the EU ETS as a feasible, low-complexity mechanism to reduce supply automatically if prices fall too low.

The document assesses the 2008 proposal for the Australian Carbon Pollution Reduction Scheme, focusing on its mechanisms for price control and international linking. It examines the implications of a domestic price cap and the potential for bilateral linking with the European Union and New Zealand, while analyzing the impact of 'hot air' units from Russia and Eastern Europe on the global carbon market.

The document analyzes the landscape of emissions trading schemes (ETS) in North America, noting that while regional initiatives like the Western Climate Initiative (WCI) and Regional Greenhouse Gas Initiative (RGGI) are advanced, national efforts in the US and Canada face coordination challenges. It argues that linking is logical due to economic ties, but current designs—particularly Canada's intensity-based targets—create barriers to bilateral links with absolute-cap schemes. The author concludes that a US federal scheme would likely preempt most state schemes, while Canada may use equivalency agreements to allow provincial schemes to persist.

The report examines the EU ETS, concluding that emissions trading is effective and has modest macroeconomic impacts, though it can create windfall profits and price volatility. It argues that international competitiveness risks are limited to a few carbon-intensive sectors and recommends maximizing auctioning over free allocation to maintain economic efficiency and innovation incentives. The authors caution against unilateral border adjustments, suggesting multilateral arrangements instead to prevent trade disputes and carbon leakage.

The document analyzes the cement industry's CO2 emissions, which stem from limestone calcination, fuel combustion, and electricity use. It identifies abatement options including energy efficiency, alternative fuels, clinker substitutes, and carbon capture and storage (CCS). The paper examines the economic impact of carbon pricing, noting that high carbon costs can lead to carbon leakage—where production shifts to regions with laxer regulations—due to the industry's capital-intensive nature and the high cost of transportation. It suggests that border carbon adjustments may be more effective than fixed free allocation of allowances in mitigating leakage.

The study examines how carbon pricing affects the chemical sector by analyzing individual production processes to identify specific leakage risks. Using Germany as a representative example, it finds that while most chemical sub-sectors face moderate cost increases, certain basic chemicals—such as calcium carbide, chlorine, and soda ash—experience significant cost increases relative to their net production value. The report suggests that for some substances, like chlorine, high transport costs and risks may mitigate leakage, while others may require tailored policy instruments such as conditional free allowances or state aid.

The paper explores using revenues from the sale of Bulgaria's surplus Assigned Amount Units (AAUs) to fund a Green Investment Scheme (GIS). It focuses on bioenergy, arguing that Bulgaria's underutilized biomass resources could support large-scale fuel switching from electricity and oil to wood-based heating. The authors propose a 'programmatic approach' to overcome the high transaction costs that hindered similar projects under Joint Implementation (JI). Financial assessments suggest mitigation costs for municipal building fuel switches could be as low as 12.7 Euro per tonne of CO2 reduced, while household switches would cost between 24.9 and 30.2 Euro per tonne.

The author argues that the Clean Development Mechanism (CDM) lacks environmental integrity due to non-additional projects, leading the EU to propose strict import caps on CERs. To avoid these inefficient caps and reflect 'common but differentiated responsibilities', the paper suggests a discounting system where one tonne of CO2 reduction yields less than one CER, with the discount factor linked to a country's GDP and emissions per capita. While this introduces some economic inefficiency by altering marginal abatement costs, the author contends it is superior to a protectionist EU scenario, as it would maintain higher EU import thresholds and improve the distribution of projects toward poorer countries.

The report examines how Romania can use a Green Investment Scheme (GIS) to invest proceeds from the sale of approximately 100 million surplus Assigned Amount Units (AAUs) into climate-related projects. It specifically evaluates land-use activities, such as the reforestation of 'cut-not-regenerated' forests and fast-growing woody crops, and bioenergy projects, including the rehabilitation of district heating systems. The analysis compares GIS with Joint Implementation (JI), arguing that GIS is better suited for land-use projects due to lower transaction costs, more flexible monitoring, and the ability to address high upfront investments and delayed returns.

The report analyzes Green Investment Schemes (GIS) as a hybrid carbon finance mechanism in Central and Eastern Europe (CEE) that 'greens' surplus Assigned Amount Units (AAUs) by earmarking sales revenues for domestic climate mitigation. It argues that GIS can overcome the failures of the Clean Development Mechanism (CDM) and Joint Implementation (JI)—particularly in energy efficiency and small-scale projects—by utilizing more flexible, programmatic architectures and simplified monitoring and verification (M&V). The report identifies the thermal retrofitting of old building stock as a high-priority target area due to its long-term climate impact and significant social co-benefits. It provides specific architectural recommendations, such as the use of sectoral baselines, post-2012 crediting periods, and the dominance of 'hard greening' to ensure environmental integrity.

The report assesses Green Investment Schemes (GIS) as a carbon finance mechanism to unlock surplus Assigned Amount Units (AAUs) in Central and Eastern Europe (CEE). It argues that GIS can overcome the failures of the Clean Development Mechanism (CDM) and Joint Implementation (JI) by targeting high-priority, long-term mitigation areas such as building energy efficiency and bioenergy. The authors recommend using programmatic approaches, simplified monitoring and verification (M&V), and extending crediting periods beyond 2012 to ensure the bankability of infrastructure projects. The report estimates the potential value of transacted AAUs at approximately €9 billion and highlights the importance of additionality to maintain environmental integrity.

The document analyzes Hungary's implementation of a Green Investment Scheme (GIS) to utilize revenues from the sale of Assigned Amount Units (AAUs) for greenhouse gas mitigation. It details the legal framework established by Act LX of 2007 and Government Decree 323/2007, emphasizing a 'hard greening' approach where funds are invested in projects with measurable emission reductions. The paper focuses heavily on the buildings sector, proposing a programmatic approach to bundle small-scale energy efficiency projects that are typically ineligible for Joint Implementation (JI) due to high transaction costs. It outlines a subsidy system based on energy labeling (Categories C to A++) and provides financial assessments for retrofits and new constructions, while comparing energy efficiency experiences across Central and Eastern European countries.

The document examines the role of intermediate indicators—metrics that measure activity or service provision as a step toward a final outcome—as tools for policy learning and performance benchmarking. By reviewing case studies from sustainable development, agri-environmental policy, science and technology, construction, and overseas development assistance, the author argues that intermediate indicators offer more timely and actionable feedback than long-term outcome indicators. The paper suggests that applying these lessons to climate policy, such as through the quantification of sustainable development policies and measures (SD-PAMs), could enhance transparency and international cooperation, though it notes that data availability and measurement costs in developing countries remain significant barriers.

The document argues that the transition to a low-carbon energy economy requires a coordinated 'innovation chain' where domestic policies create initial markets and absorptive capacity, while international cooperation reduces R&D risks, smooths budget volatility, and accelerates cost reductions through global scale. It emphasizes that technology must be adapted to local contexts in developing countries and suggests that international support should cover incremental costs of new technologies and facilitate the transfer of intellectual property.

The document assesses Ghana's progress in renewable energy (RE) and energy efficiency (EE), highlighting a government target of 10% RE in the energy mix by 2020. It identifies significant barriers, including the lack of a comprehensive legal framework, high upfront capital costs, and a pricing system that ignores environmental externalities. The author argues that international cooperation—through capacity building, credit support facilities, and the Clean Development Mechanism—is essential to accelerate the transition to a low-carbon economy and improve rural electrification.

The document argues that South Africa's heavy reliance on coal, which provided over 90% of electricity generation, creates a significant opportunity for carbon mitigation through the deployment of Concentrated Solar Power (CSP). While the government's White Paper on Renewable Energy (WPRE) set a target of 10,000GWh of renewable energy by 2013, the author suggests a more ambitious target of 15% renewable contribution to final electricity consumption by 2020. To achieve this, the paper proposes a tender process for large-scale projects, complemented by a Renewable Energy Feed-in Tariff (REFIT) to make projects financially viable despite low domestic electricity tariffs. The author highlights that South Africa possesses vast solar resources, with 194,000km2 of land potentially viable for CSP. International cooperation is recommended to provide knowledge sharing, incremental funding to bridge the gap between levelised electricity costs and revenues, and risk mitigation to attract private capital.