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The paper examines various target-setting regimes, including the UN Millennium Development Goals and the US Government Performance Results Act, to identify critical success factors for policy implementation. It argues that successful target regimes require a combination of outcome-based indicators, strong local ownership, and integration with budgeting processes. The authors suggest that these insights can help climate policy by translating long-term emissions goals into achievable intermediate outcomes and robust governance frameworks.

The document analyzes the Brazilian transportation sector's shift toward low-carbon pathways, focusing on two key policies: the National Plan on Logistics and Transport (PNLT) and the Pro-Transport programme. While these policies were primarily designed for economic competitiveness and urban mobility rather than climate change, they offer significant greenhouse gas (GHG) mitigation co-benefits. The author argues that while national-level logistics infrastructure is easier to fund due to its impact on economic competitiveness, local-level public transport funding remains a challenge. The paper suggests that international cooperation, including the Clean Development Mechanism (CDM) and UNFCCC frameworks, could catalyze these efforts, particularly in electrifying rail and improving urban transit.

The document outlines a comprehensive system for facilitating North-South cooperation to transition countries toward low-carbon economies. It defines effectiveness through a 'cycle of cooperation' consisting of shared meaning construction, high-quality deliberation, policy internalization/implementation, and continuous learning. The author argues that since the initiative lacks binding legal enforcement, it must rely on a mix of positive material incentives (such as 'reinforcement by reward'), normative suasion, and managerial capacity-building. The framework emphasizes the need for detailed stakeholder mapping to identify 'veto players' and 'change agents,' and suggests a hybrid organizational structure combining bilateral and multilateral elements to balance ownership with legitimacy. Finally, it stresses that financial support must be substantial—amounting to 'several billion €/$'—and closely linked to demonstrable reform progress to avoid 'decoupling' between verbal commitments and actual implementation.

The document examines the 'twinning' mechanism used by the European Commission to assist candidate countries, specifically Hungary, in adopting the acquis communautaire. It identifies key success factors, such as political leadership and specific technical goals, and highlights barriers like institutional inertia and the limited capacity of beneficiary institutions to absorb support. The author concludes by questioning the applicability of twinning to South-North climate policy cooperation, noting significant differences in priority levels, policy scope, and administrative stability compared to the EU enlargement context.

The report argues that while developing countries often have domestic drivers for climate-beneficial policies (such as energy security and health), resource constraints and political priorities limit their scale. It suggests that international support should move beyond the Clean Development Mechanism's (CDM) project-specific approach toward supporting broader domestic policy frameworks. The authors advocate for the use of intermediate policy indicators and targets—rather than final emissions targets—to provide shorter feedback loops and early rewards for implementation. Case studies from Brazil, China, Ghana, India, and South Africa illustrate specific sectoral opportunities in transport, steel, wind power, and solar energy. The report concludes that such cooperation should be anchored in the UNFCCC to ensure transparency and a fair distribution of financial resources for incremental costs.

The document identifies three primary policy areas for GHG mitigation in India's power sector: the adoption of supercritical and ultra-supercritical coal technologies, the replacement of inefficient agricultural pump sets, and the upgrade of distribution networks to High Voltage Distribution Systems (HVDS). It argues that while these options have large mitigation potential, implementation is hindered by resource constraints, poor financial health of utilities, and political challenges regarding metering. The author advocates for moving beyond the Clean Development Mechanism (CDM) toward long-term North-South cooperation to facilitate technology transfer and financing.

The research examines the effectiveness of conditionality in international aid and enlargement processes to derive design principles for south-north climate policy cooperation. It finds that while IMF and World Bank conditionality often suffer from low compliance and credibility due to geopolitical interests and a lack of ownership, EU enlargement conditionality is generally more effective because of the high value of membership. The authors argue that cooperative climate policy should combine multilateral frameworks for transparency with bilateral relationships for capacity building, utilizing ex-ante conditions and clear metrics to ensure mutual accountability.

The document analyzes the Indian steel industry's high carbon intensity, driven by a proliferation of inefficient small-scale coal-based direct reduced iron (DRI) units and small blast furnaces. It argues that current project-based mechanisms like the Clean Development Mechanism (CDM) are insufficient for systemic change. The author proposes a combination of a harmonised carbon tax and administered manufacturing standards to incentivize a shift toward larger, more efficient blast furnace-basic oxygen furnace (BF-BOF) units and the long-term substitution of steel with low-carbon materials. The paper emphasizes that international cooperation in technology transfer and capacity building is essential to support these domestic policy shifts.

The document analyzes the growth of China's wind power sector, highlighting the role of the 2005 Renewable Energy Law and strategic technology transfers from European companies. It uses Goldwind as a case study for successful private-public partnerships and argues that further international cooperation in turbine design and offshore technology is essential to meet future CO2 emission constraints.

The document presents a portfolio of 2008 research by Climate Strategies, focusing on the EU ETS, the Clean Development Mechanism (CDM), and G8 climate opportunities. Key analyses include the risks of carbon leakage in industrial sectors, the underperformance of CDM projects in terms of certified emission reductions, and the economic rationale for transitioning from free allowance allocation to auctioning in the EU ETS. It also includes the Eliasch Review on financing global forests and a study on the development of mandatory emissions trading in Japan.

The report details a workshop on border adjustment mechanisms (BAMs) as a tool to combat carbon leakage and transition from free allowance allocation to full auctioning of carbon permits. It argues that BAMs should be limited to a narrow set of carbon-intensive commodities (1-2% of GDP) to avoid becoming protectionist 'sticks' or non-tariff trade barriers. The discussion explores implementation options, such as basing adjustments on 'best available technology' or 'average domestic production', and suggests international coordination to define eligible products, harmonise procedures, and provide flexibility for least developed countries.

The report assesses Green Investment Schemes (GIS) as a hybrid carbon finance mechanism in Central and Eastern Europe (CEE) that combines the sale of Assigned Amount Units (AAUs) with domestic greening activities. It argues that GIS can address mitigation priorities that other mechanisms, such as Joint Implementation (JI) and the Clean Development Mechanism (CDM), have failed to deliver, particularly in building energy efficiency and small-scale bioenergy. The authors emphasize that because the window for these transactions closes in 2012, GIS should prioritize long-term, low-carbon infrastructure and high-additionality projects rather than lowest-cost measures. Key recommendations include adopting simplified monitoring and verification (M&V) processes, allowing post-2012 fund disbursement, and utilizing a programmatic approach to reduce transaction costs for small-scale investments.

The report examines the Joint Implementation (JI) mechanism of the Kyoto Protocol, detailing its two operational tracks and comparing it to the Clean Development Mechanism (CDM). It highlights significant delays in implementation, particularly in Russia and Ukraine, and the restrictive impact of the EU Emissions Trading Scheme (EU ETS) on projects in Central and Eastern Europe. The document also analyzes the role of Green Investment Schemes (GIS) as an alternative to JI and concludes that the mechanism's late start and short crediting period (ending in 2012) threaten its overall viability unless post-2012 certainty is established.

The report argues that auctioning emissions allowances in the EU ETS is superior to free allocation because it removes price signal distortions, prevents windfall profits, and generates public revenue for climate action and social compensation. While carbon leakage is a primary concern for a small number of energy-intensive manufacturing sub-sectors, the authors find that leakage in the power sector is unlikely due to limited interconnection capacity and long investment cycles. The report recommends a simple, high-frequency, uniform-price auction design and suggests that leakage be addressed through targeted State Aid or border adjustments rather than broad free allocation. Additionally, it highlights that auction revenues can mitigate the regressive nature of carbon pricing by supporting low-income households.

The document examines the economic rationale for auctioning emissions allowances in the EU ETS, arguing that free allocation distorts carbon price signals and creates windfall profits. It suggests that auctioning provides a more transparent framework for low-carbon investment and generates public revenue to support poor households and innovation. While acknowledging carbon leakage as a concern, the report asserts it affects only a narrow range of sectors and can be addressed through targeted State Aid or border adjustments rather than broad free allocation. For the power sector, the report finds no serious leakage concerns and recommends full auctioning. It proposes a simple auction design using single-round, sealed-bid auctions with a uniform market-clearing price.

The paper argues that international aviation and maritime emissions must be regulated as separate sectors to avoid emissions leakage and economic inefficiency. It proposes the implementation of global emissions trading or fee regimes, noting that such systems could generate significant revenue for climate mitigation and adaptation in developing countries. The author evaluates linking options, concluding that a unilateral link with the Clean Development Mechanism (CDM) is the most practical first step due to ease of implementation and allowance supply, while bilateral links (such as with the EU ETS) are more complex, requiring international treaties and scheme compatibility. The document also discusses the International Maritime Emission Reduction Scheme (IMERS) as a differentiated approach to shipping emissions.

The document analyzes Japan's transition from voluntary climate instruments, such as the Keidanren Voluntary Action Plan and the Japanese Voluntary Emissions Trading Scheme (JVETS), toward a mandatory ETS. It compares proposals from the Ministry of Environment (MoE) and the Ministry of Economy, Trade and Industry (METI), noting that the use of intensity-based targets and lenient penalties in some proposals could hinder direct bilateral linking with more stringent systems like the EU ETS. The paper concludes that while direct links are unlikely before 2013, indirect links via the Clean Development Mechanism (CDM) will remain primary until a mandatory system with absolute targets is established.

The report identifies a small number of German industrial sectors—specifically basic iron and steel, fertilizers and nitrogen compounds, aluminium and aluminium products, paper and paperboard, and other basic inorganic chemicals—that face both high carbon-related costs and high international trade intensity. It argues that these sectors are most susceptible to competitiveness distortions and carbon leakage. The analysis distinguishes between direct costs (emissions from production) and indirect costs (increased electricity prices), noting that for some sectors, indirect costs are the primary burden. The document also evaluates various policy mechanisms to mitigate these effects, such as free allocation of allowances, border tax adjustments, and sectoral agreements.

The paper concludes that linking the EU ETS with a US scheme based on the Lieberman-Warner proposal is unlikely to be acceptable to the EU due to significant design differences. The Lieberman-Warner scheme is characterized as systematically less stringent, featuring weaker caps, lower auctioning levels, and extensive cost-containment measures. Such a link would likely result in the EU ceding control over its allowance prices and emissions implications to the US, while also undermining the EU's policy of excluding carbon sink credits.

The working paper by the Graz Group outlines strategies to enhance the environmental integrity and completeness of LULUCF accounting. It suggests moving toward 'fuller accounting' through activities-based, emissions/removals-based, or land-use-based approaches. Key recommendations include mandatory accounting for forest and peatland degradation, a 'restricted stock-change approach' for harvested wood products to prevent false credits, and policy-based methods for 'factoring out' natural disturbances. The authors argue that current Kyoto Protocol rules allow significant emissions from degradation to go uncounted, particularly in Annex I countries that did not elect Article 3.4.