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Advance Market Commitments Today Can Build a Low-Carbon Tomorrow
The guide describes advance market commitments (AMCs) as financial mechanisms where governments or private entities guarantee the purchase of a future product to stimulate development and reduce investor risk. It outlines the essential steps for designing an AMC, including defining market boundaries, identifying eligible suppliers and buyers, and establishing standards and procurement processes. The text highlights the utility of AMCs for sectors like aviation, buildings, hydrogen, and carbon dioxide removal, while noting that they should be complemented by other policies to address infrastructure gaps.
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Document type: Guide
Dilution doesn't fix pollution: ETS2 must work for people and climate
Carbon Market Watch criticizes the European Commission's proposed reforms to the ETS2 Market Stability Reserve (MSR2), arguing that removing the 'sunset clause' and increasing allowance releases would create a 'carbon bomb' that threatens EU climate goals. While the European Parliament has proposed mitigating some of these risks by reinstating a partial expiry date for allowances and increasing funding for the Social Climate Fund, the author contends that the system still allows for too much pollution. The document urges policymakers to make the earmarking of MSR2 auction revenues for vulnerable households mandatory and to conduct a full impact assessment of the reforms.
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Document type: Statement
Open letter on MSR2 reform and suggestion to postpone ETS2
The letter argues against postponing the ETS2 and opposes changes to the MSR2, specifically the removal of the sunset clause, which the authors claim would increase emissions and jeopardize the Fit for 55 package. It emphasizes the need for robust carbon prices to drive decarbonization investments and calls for the Commission to ensure Member States strengthen national policies to compensate for any reduced effectiveness of a reformed ETS2.
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Document type: Statement
Managing the risk of high ETS2 prices
The document warns that reforming the MSR2 before the ETS2 launches in 2027 could lead to an oversupply of allowances, weakening the price signal and jeopardizing the EU's 2030 climate target of a 42% reduction in covered emissions. It argues that high prices should be managed through 'complementary measures'—such as CO2 standards for vehicles and boiler phase-outs—and the strategic use of the Social Climate Fund and €300 billion in ETS2 revenue. The authors contend that existing safeguards, including a 'soft price cap' of approximately €55 per tonne and the early auctioning of 30% more allowances, are sufficient for the initial phase. They caution that any increase in allowance supply must be 'cap neutral' to avoid exceeding the carbon budget.
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Document type: Statement
Joint letter to establish an EU lending facility for ETS2 revenue for member states
A joint letter calling for an EU lending facility to frontload future ETS2 revenues, allowing Member States to invest in zero-emission alternatives for vulnerable households before the 2027 implementation of carbon pricing for buildings and road transport.
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Document type: Statement
U-turn on EU’s emissions trading system for road transport and buildings carries huge environmental, social and economic price tag
Carbon Market Watch opposes efforts by politicians in countries like Poland and Czechia to reverse or delay the EU's ETS2 carbon pricing system for buildings and road transport. The organization argues that the ETS2 is critical for achieving a 42% emission reduction in these sectors by 2030 and a 55% net reduction overall by 2050. It highlights that the system includes social protections, such as the €86 billion Social Climate Fund and a €45 per tonne soft price cap, to protect vulnerable populations. The document warns that weakening the system would increase future economic costs, exacerbate the climate crisis, and undermine the EU's energy sovereignty.
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Document type: Statement
Expanding Our Vision of Energy Efficiency
The document proposes a shift from traditional technology-replacement efficiency to a 'whole-systems' approach. It argues that combining electrification with energy end-use efficiency (reducing the demand for energy services) can reduce overall energy demand by 50-75%. The author provides sector-specific examples: in buildings, through passive design and compact urban development; in mobility, via land-use reforms and smaller, lighter electric vehicles; in freight, through modal shifts to rail and material demand reduction; and in steel, via circularity and material substitution. The brief concludes that achieving the COP28 goal of doubling energy efficiency improvement rates requires engaging a diverse range of stakeholders to trigger social tipping points.
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Document type: Briefing
Methodology Underpinning the State of Climate Action Series 2024 Update
The document outlines the technical framework for the State of Climate Action series, focusing on tracking global greenhouse gas emission reductions and carbon removal. It details the process of translating sectoral transformations into actionable targets and the categorization of progress (e.g., 'on track' or 'off track'). The 2024 update introduces 2035 targets for 16 indicators, a new indicator for wind and solar power in electricity generation, and revised transport sector targets based on recent modeling.
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Document type: Guide
Fact sheet: Early Estimate of National Emissions 2023
Canada's total emissions in 2023 were estimated at 702 megatonnes of carbon dioxide-equivalent (Mt), a 0.8 per cent decrease from 2022 and 7.8 per cent below 2005 levels. While the electricity sector has seen a 62 per cent reduction since 2005, oil and gas emissions have risen by 12.1 per cent in the same period, now accounting for 31 per cent of the national total. Despite economic growth and a population increase of 1.16 million people in 2023, emissions fell due to climate policy and market drivers, though a 7 per cent annual reduction in emissions per unit of GDP is required to meet the 2030 target of a 40–45 per cent reduction below 2005 levels.
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Document type: Fact sheet
20 Policy Levers to Decarbonise Buildings in Europe
The report identifies a critical need to accelerate building renovations in Europe, noting that approximately 97% of the region's building stock requires upgrades to meet 2050 net-zero targets. It argues that while the EU's 'Fit for 55' package and the Energy Performance of Buildings Directive (EPBD) provide a foundation, additional policy interventions are needed to unlock private capital and overcome financial and non-financial barriers. The document details 20 specific policy levers, including the implementation of Minimum Energy Performance Standards (MEPS), the phasing out of fossil-fuel subsidies by 2040, and the adoption of 'Building Renovation Passports'. It emphasizes the role of green bonds and mortgages, suggesting a voluntary EU-wide definition for green mortgages to improve data collection and risk management. The report also advocates for the electrification of heating via heat pumps over hydrogen blending and highlights the importance of addressing 'Whole Life Carbon' (WLC) in construction.
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Document type: Report
FAQ: What is the EU Emissions Trading System (EU ETS)?
The EU Emissions Trading System (EU ETS) is a cap-and-trade mechanism designed to reduce greenhouse gas emissions in the power, heavy industry, aviation, and maritime sectors by pricing pollution. It operates by setting a decreasing cap on total emissions, divided into EU Allowances (EUAs), which companies can trade or buy at auction. While the system has raised over €152 billion since 2005, its effectiveness has been historically hampered by an oversupply of permits and the extensive use of free allocations to prevent 'carbon leakage'. A separate system, ETS2, will be introduced in 2027 to cover buildings and road transport. The document highlights concerns regarding the environmental integrity of the current cap relative to the EU's carbon budget and the lack of transparency in how member states spend auction revenues.
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Document type: Fact sheet
Promoting Energy-Efficient Lifestyles and Decision-Making
The document argues that energy efficiency is essential for climate and development goals and can be accelerated by shifting individual and business decision-making through positive, emotion-based narratives. It outlines a framework for communication based on four pillars: empowering people, fostering positive emotional connections, recognizing champions, and innovating communication channels. The compendium utilizes case studies from G20 countries across sectors including buildings, industry, and transport to share lessons for global energy-efficiency actions.
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Document type: Report
Buildings Criteria - Background Paper
The document outlines the technical framework for certifying low-carbon buildings under the Climate Bonds Standard. It shifts the focus from energy use intensity to emissions intensity, establishing city-specific linear trajectories aimed at net-zero carbon emissions by 2050. The criteria distinguish between new and existing buildings, introducing mandatory Whole Life Carbon Assessments (WLCA) for new constructions to account for embodied carbon. It also provides a guide for Scope 3 GHG accounting across the building value chain, from manufacturers to owners and deconstruction firms.
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Document type: Report
Expanding climate policy adoption improves national mitigation efforts
The research finds that a higher number of climate policies is associated with lower projected emission change rates up to 2030, a result that remains robust when controlling for GDP, historical emissions, and the rule of law. The study identifies specific policy gaps based on emission trends: countries with fast-increasing emissions lack policies in energy-demand sectors like buildings and transport, while those with stalling emissions lack cross-sectoral climate strategies. Across all groups failing to reduce emissions, there is a notable deficiency in policies targeting the reduction of energy and material demand.
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Document type: Research paper
Greenhouse gas distributions to inform the global stocktake
The analysis examines sectoral GHG emissions per capita from 2000 to 2019 across 180 countries. It finds that while energy supply, buildings, and agriculture emissions per capita have decreased in over half of the countries, transport and industry emissions per capita have increased in more than half. Road transport is identified as a particular laggard, with per capita emissions increasing in nearly two-thirds of the countries.
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Document type: Research paper
Using the State Energy Policy Simulator to Support Climate Pollution Reduction Grant Planning
The Energy Policy Simulator (EPS) is a free, open-source tool developed by RMI and Energy Innovation to model the environmental, economic, and health impacts of energy policies across the lower 48 US states. The tool supports the Climate Pollution Reduction Grant (CPRG) program by enabling states to calculate GHG inventories, project emissions through 2050, build scenarios to meet reduction targets, and quantify the co-benefits of mitigation measures, such as public health improvements and economic development.
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Document type: Fact sheet
State of Climate Action 2022
The report finds that none of the 40 indicators of systems change are on track to reach their 2030 targets, with current national commitments leading to projected warming of 2.4°C to 2.8°C. To align with the 1.5°C goal, the report argues for an enormous acceleration in effort, specifically noting that unabated coal phase-out must be six times faster and cement production carbon intensity improvements must increase by more than 10 times.
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Document type: Report
EU Emissions Trading System, Social Climate Fund and Just Transition
The document examines the social implications of the European Commission's 'Fit for 55' package, specifically the introduction of carbon pricing for road transport and buildings (ETS2). It highlights the proposed EUR 72 billion Social Climate Fund (2025-2032) designed to provide income support to vulnerable households and fund emission-reduction measures to ensure public acceptance and a fair transition away from fossil fuels.
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Document type: Research paper
May Week: What is it?
The document details a series of European Commission proposals to meet 'Fit for 55' objectives, including stricter CO2 standards for vehicles, the creation of a Carbon Border Adjustment Mechanism (CBAM), and revisions to the EU Emissions Trading System (EU ETS) and Effort Sharing Regulation (ESR). It also describes the Social Climate Fund (SCF) to mitigate social impacts of emissions trading in buildings and transport, and updated LULUCF targets for carbon removals. Finally, it explains the EU's co-decision legislative process involving the Commission, Parliament, and Council.
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Document type: Briefing
Investment Technologies Today
The document argues that while low-carbon technologies are available to support environmentally conscious development, developing countries lack the financial capacity to deploy them at the necessary scale. It highlights a significant investment gap, noting that global net-zero emissions by mid-century would require an estimated USD 100 trillion in investments, with a substantial portion needed in developing countries to meet rising energy demands.
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Document type: Research paper