Search Climate Insights Directory

The paper argues that fragmentation of trade-related climate measures (TrCMs) creates significant regulatory burdens, particularly for small and medium-sized enterprises in smaller economies. It distinguishes 'interoperability'—the ability to pass useful information between systems—from 'harmonization,' suggesting that focusing on the former allows governments to reduce trade barriers while preserving policy space. The author proposes several strategies to achieve this, including alignment with international standards like ISO 14067 and IPCC guidelines, adopting flexible information systems, focusing on high-impact sectoral products (e.g., steel, aluminium, and concrete), and utilizing a structured 'top-down' approach to collaboration based on a hierarchy of regulatory objectives and principles.

The guide explains the transition of the EU CBAM to its definitive phase in January 2026, emphasizing the financial impact on exporters of steel and aluminum. It highlights that the use of high default values for missing verified emissions data increases costs, while carbon prices paid in the country of origin can be deducted from CBAM liability.

The EU's Carbon Border Adjustment Mechanism (CBAM) transitioned from a reporting-only phase to a definitive period on January 1, 2026, introducing financial liabilities for importers of iron, steel, aluminum, cement, fertilizers, electricity, and hydrogen. Exporters must now provide verified actual emissions data to avoid high default values, which include annual markups of +10% in 2026, +20% in 2027, and +30% from 2028 onward. Financial liability is calculated based on embedded emissions, adjusted by a Free Allocation Adjustment (FAA) that phases out by 2034, and monetized through CBAM certificates linked to EU ETS prices. The guide emphasizes that verified actual emissions and documentation of carbon prices paid in the country of origin are critical for maintaining competitiveness and reducing costs.

A joint statement by industrial, research, and civil society organisations urging the European Commission to broaden the scope and ambition of the proposed Industrial Accelerator Act to better stimulate demand for low-carbon industrial products in Europe.

The document describes how a global automaker used Climate TRACE and TASA Analytics data to move beyond coarse 'spend-based' emissions factors to granular, facility-level intelligence for steel and aluminium. By integrating Scope 1 and 2 emissions factors with rapid IO-LCA (rLCA) models, the project revealed significant emissions intensity variations across production methods and countries. Key findings highlight the potential for emissions reductions through increased scrap use in both steel and aluminium production and the inaccuracy of standard EEIO data in certain regions.

The document examines the transition of energy-intensive heavy industries toward net-zero emissions, highlighting how global trade dynamics and national policies in developed economies impact emerging markets. It identifies four primary technological levers for decarbonization: energy efficiency, alternative fuel use/electrification, material efficiency, and carbon capture and storage. The author argues that while developing countries with abundant renewables can become new green industrial hubs, they face significant risks from carbon border measures, green protectionism, and reduced access to secondary materials. The briefing emphasizes the need for international coordination on standards, technology transfer, and finance to ensure a just transition for emerging and developing economies.

The EU Carbon Border Adjustment Mechanism (CBAM) is a regulatory tool designed to prevent 'carbon leakage' by applying a carbon price to specific imported goods, matching the price paid by EU producers under the EU Emissions Trading System (EU ETS). The mechanism covers cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. It involves a transitional monitoring period starting in October 2023, followed by a definitive phase-in in 2026. Importers must purchase and surrender non-tradeable certificates based on the embedded emissions of their goods. The document highlights the necessity of phasing out free ETS allowances to ensure the CBAM's effectiveness and discusses the potential for reinvesting CBAM revenues into climate mitigation in developing economies.

Carbon Market Watch criticises the GFANZ's proposed Expected Emission Reductions (EER) methodology, arguing that its reliance on subjective 'business-as-usual' baselines creates risks of manipulation and may encourage continued investment in high-emission industries without sufficient engagement strategies.

The report advocates for low-carbon procurement in China's heavy industry to reduce transition costs via economies of scale and shared green premiums. It outlines a five-part implementation framework and identifies five priority value chains: steel-automotive, steel-construction, cement-construction, aluminum-automotive, and plastics-consumer goods.

The guide outlines three federal funding pools for US clean industrial projects: the Office of Clean Energy Demonstration (OCED) providing grants up to 50% of costs for non-commercial technologies; the Loan Programs Office (LPO) offering up to $412 billion in loan authority to bridge projects to bankability; and various uncapped Section 45 tax credits for hydrogen, heavy industry, and carbon management. It emphasizes the role of these incentives in enabling the creation of 'clean industrial hubs' and the necessity of coordinating federal, state, and private capital to realize these projects.

The document applies the Comparable Uncontrolled Price (CUP) method to bauxite, detailing how physical characteristics, economic circumstances, and contractual terms influence pricing. It identifies key price drivers—specifically available alumina and reactive silica—and provides a methodology for using market indices from agencies like CBIX, Fastmarkets, and CRU to establish arm's length prices, including a practical calculation example for exports from Guinea to China.

RMI proposes a shift from corporate-level carbon aggregation to product-level accounting that differentiates the emissions intensity of virgin and recycled materials. This method aims to address the lack of transparency in the supply chains of steel, aluminum, and petrochemicals, which together accounted for 14 percent of global GHG emissions in 2019. While circularity offers immediate emissions cuts and environmental benefits—such as reducing iron ore extraction by 37 percent—recycled inputs are projected to meet only 70 percent of steel demand by 2050, necessitating the simultaneous scaling of zero-carbon technologies for virgin materials. The proposed accounting guidance is intended to help corporations verify supplier progress, allow producers to gain competitive advantages, and assist policymakers in enforcing instruments like the Carbon Border Adjustment Mechanism (CBAM).

The document analyzes the EU's proposed Carbon Border Adjustment Mechanism (CBAM), which aims to prevent carbon leakage by imposing a carbon price on imports in sectors like iron, steel, cement, aluminum, fertilizers, and electricity. It specifically examines the phase-out of free EU ETS allowances, the exclusion of export rebates, the scope of emissions (direct vs. indirect), and the crediting of third-country climate policies. Swedish stakeholders are divided: industry groups generally fear competitiveness losses due to the lack of export rebates and the exclusion of Scope 2 emissions, while environmental groups advocate for a faster phase-out of free allowances.

The briefing outlines five trends for climate-aligned finance in 2022: the substantiation of net-zero commitments through interim targets, the publication and assessment of credible transition plans, a shift toward real-economy impact over paper alignment, the adoption of forward-looking data and metrics, and the expansion of sectoral alignment agreements for high-emitting industries.

The document outlines the EU's proposed Carbon Border Adjustment Mechanism (CBAM), designed to prevent carbon leakage by requiring importers to purchase certificates for embedded emissions in specific goods. It details the sectors covered, the calculation of emissions, the phase-out of free ETS allowances, and the transitional period from 2023 to 2025. Carbon Market Watch critiques the proposal for excluding bulk chemicals and indirect emissions, the slow phase-out of free allocations, and the plan to use revenues for COVID-19 debt repayment rather than international climate finance.

The document argues that Green Public Procurement (GPP) can leverage the significant purchasing power of governments to stimulate demand for low-carbon materials in energy-intensive industries. It focuses on hard-to-abate sectors such as steel and cement, noting that five basic industrial materials account for 20% of global CO2 emissions. The brief, produced by UNIDO and the Leadership Group for Industry Transition, aims to provide methodologies for GPP design to help reach Paris Agreement targets.

The document highlights the necessity of public-private collaboration to decarbonize heavy industry, which contributes approximately 30% of global CO2 emissions. It identifies the Leadership Group for Industry Transition (LeadIT), launched by Sweden and India, as a key arena for international cooperation toward net-zero emissions by 2050. The brief examines specific policy tools such as green public procurement, carbon contracts for difference, and carbon border adjustments, while referencing implementation experiences in countries including South Korea, Denmark, Sweden, Canada, and the UK.

The production of basic materials accounts for approximately 25% of global CO2 emissions and 16% of EU GHG emissions. While industry commitment to carbon neutrality by 2050 is growing, current innovation funds and carbon pricing are insufficient to make climate-friendly technologies commercially viable. The Climate Friendly Material Platform proposes a policy package including a 'Climate Contribution' as an alternative to Border Tax Adjustments, Carbon Contracts for Difference (CCFDS), Contracts for Difference for Renewables, Green Public Procurement (GPP), and Product Carbon Requirements to stimulate investment and prevent the relocation of production to regions with less stringent climate policies.

The production of basic materials, including cement, iron, steel, aluminium, and chemicals, accounted for approximately 25% of global CO2 emissions in 2014. The author contends that deep decarbonisation has been limited by a lack of knowledge regarding climate-friendly alternatives and a policy focus on carbon leakage risks. To overcome this, the brief identifies three primary policy gaps: incomplete incentives for recycling, a lack of short- and long-term markets for climate-friendly options, and missing signals regarding the phase-out of carbon-intensive production. Proposed solutions include green public procurement, project-based carbon contracts for difference (CfD), and a consumption charge on basic materials integrated into the EU ETS. The document emphasizes that the European materials sector is in a 'precarious limbo' where investment decisions over the next 10 to 15 years will determine whether assets are closed or transitioned to climate-friendly options.

The report identifies that the production of basic materials accounted for approximately 25% of global CO2 emissions in 2014, yet progress in decarbonisation has been modest due to carbon leakage concerns and limited political support for resource efficiency. It proposes a portfolio of seven mitigation options, ranging from sharing and reuse to low-carbon production processes. To unlock these, the authors identify three primary policy gaps: incomplete incentives for recycling, a lack of markets for climate-friendly options, and missing signals for phasing out carbon-intensive production. Recommended solutions include project-based carbon contracts for difference (CfDs), Green Public Procurement (GPP), and the introduction of consumption charges on carbon-intensive materials to reinstate carbon price signals muted by free allowance allocations in the EU ETS.