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The report argues that expanding the CN ETS beyond the power sector to include iron and steel, aluminum, cement, chemicals, papermaking, and civil aviation is essential for China's decarbonization strategy. It identifies key obstacles including data collection challenges, industry concerns over international competitiveness (carbon leakage), and bureaucratic inertia. To address these, the authors recommend implementing a price collar to limit economic risk, simplifying allocation benchmarks to one per unique product to reduce information burdens, and highlighting the economic advantages of clean tech innovation. The report also uses green hydrogen as a case study to illustrate how CN ETS expansion can enhance the global competitiveness of Chinese enterprises.

The document maps the various 'entry points' for environmental policy within the WTO, ranging from formal committees and negotiating groups to newer, member-led plurilateral initiatives. It highlights that while no single environmental agreement exists, the WTO manages this nexus through general exceptions (GATT Article XX), monitoring bodies (TBT and SPS committees), and specific negotiations on fisheries subsidies and environmental goods. The brief also details three recent ministerial statements from December 2021 focusing on environmental sustainability, plastic pollution, and fossil fuel subsidy reform, which aim to foster cooperation ahead of the Thirteenth WTO Ministerial Conference.

The document details EU member state reactions to the proposed extension of the Emission Trading System (ETS) to road transport and buildings (RTB). While many delegations support the measure to meet the -55% emission target by 2030, significant concerns persist regarding socio-economic impacts on vulnerable groups, the sufficiency of the Social Climate Fund (SCF), and the timing of implementation. The briefing also notes discussions on the Effort Sharing Regulation, LULUCF targets, and CO2 standards for vehicles.

The ENVI rapporteur's draft report proposes a more ambitious and accelerated implementation of the CBAM compared to the European Commission's plan. Key points of divergence include a shorter transition period, expanded product coverage to include plastics and hydrogen, the inclusion of indirect emissions, and a commitment to provide development assistance to least-developed countries equal to the revenues raised by the CBAM.

The briefing assesses the failure of the EU ETS to reduce emissions in the steel sector, which accounts for 221 megatonnes of CO2 annually. It identifies flaws such as excessive free allowances and stagnant benchmarks—particularly for hot metal—that have led to flatlining emissions since 2012. The author proposes replacing free permits with a Carbon Border Adjustment Mechanism (CBAM) and increasing funding for the Innovation Fund to support zero-carbon technologies like hydrogen direct reduction.

The document outlines eleven specific recommendations to strengthen the EU ETS, arguing that the European Commission's proposal lacks sufficient ambition and fails to properly implement the 'polluter pays' principle. Key demands include increasing the 2030 emission reduction target to 70% for ETS sectors, phasing out free emission allowances for energy-intensive industries, and expanding the system's scope to include waste incineration and all international shipping voyages. It also suggests strengthening the Market Stability Reserve (MSR) to prevent price crashes and calls for stricter criteria for the use of ETS revenues to ensure they support climate action. Additionally, the guide provides a communication framework based on urgency, risk, and fairness, alongside a directory of key policymakers in the European Commission and Parliament.

The document outlines discussions within the Committee on Environment, Public Health and Food Safety on key EU climate policies. Key topics include the distinction between primary and secondary wood biomass, the implementation of a Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakages, the decarbonization of aviation through Sustainable Aviation Fuels (SAFs), and the ambition levels for greenhouse gas emission reductions by 2030. It also covers the EU Forest Strategy for 2030, the role of wind technology in maritime transport, and the need for higher targets in the aviation sector to align with FitFor55 goals.

The briefing evaluates MEP Mohammed Chahim's draft report on the Carbon Border Adjustment Mechanism (CBAM), focusing on the phase-out of free allowances, the extension of sectoral scope, financial support for Least Developed Countries, the allocation of revenues, and the handling of export rebates.

The EU ETS is a 'cap and trade' system covering power, industry, and aviation across the EU and several other European nations. While it has successfully reduced emissions in the power sector, the document argues that free allocation of permits has led to stagnant industrial emissions and significant windfall profits for companies. The guide details the role of the Market Stability Reserve in managing oversupply and discusses the proposed Carbon Border Adjustment Mechanism as a potential replacement for carbon leakage protections.

The report examines the intersection of the IMF's expanding climate mandate and South Africa's transition from a coal-dependent economy. It highlights the risks of the IMF's traditional austerity-driven policy toolkit and recommends a more inclusive, transparent approach that prioritizes social justice and long-term stability over short-term fiscal consolidation.

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 document discusses the transition of carbon border adjustments (CBAs) from theory to practice, driven by initiatives in the European Union, Canada, and the United States. It emphasizes the necessity of international cooperation to improve design, counter protectionism, and encourage global climate action. Specifically, it examines two axes of cooperation: understanding equivalent carbon policies and evaluating system equivalences through legal and fair frameworks. The text recommends expanding discussions within the WTO, utilizing multilateral alliances, establishing best-practice working groups, and developing information documents on the average cost of carbon pricing programs.

The document argues that Africa is well-positioned to become a major global hub for green hydrogen due to its abundant renewable energy potential, strategic location, and existing infrastructure. It examines global strategies from the EU, Australia, and Chile, and highlights specific projects in South Africa, Namibia, Mauritania, and Morocco. The authors recommend that the G20 provide targeted financing for infrastructure, facilitate technology transfers for local value addition, and help establish stable offtake agreements and harmonised regulatory standards to prevent deepening energy insecurity in Africa.

The report provides an overview of global environmental governance in 2022, noting a return to face-to-face multilateralism after the pandemic. Key achievements include the adoption of the Kunming-Montreal Global Biodiversity Framework, the launch of plastics treaty negotiations, and the agreement to establish a loss and damage fund for vulnerable countries. It also examines the integration of human rights into environmental policy and the impact of the war in Ukraine on environmental governance.

ClientEarth and the European Environmental Bureau (EEB) have expressed serious concerns regarding the European Commission's revision of the State aid Guidelines on climate, environmental protection and energy (CEEAG). They argue that the Commission is favoring energy intensive users (EIUs) by potentially expanding aid eligibility to companies only 'at risk' of carbon leakage, rather than those at 'significant risk'. The authors contend that the risk of carbon leakage remains 'unproven' and that maintaining reductions in electricity levies for EIUs contradicts the European Green Deal and the Polluter Pays Principle. They advocate for 'Option E2' (the ETS list), which would restrict aid to 14 eligible sectors, resulting in an estimated 89% annual budget reduction and 'much lower competition distortions'. Additionally, the letter criticizes the Commission's governance, alleging a breach of EU jurisprudence by failing to make impact assessments publicly accessible before adopting proposals.

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.

A joint statement by five NGO networks providing policy recommendations for the EU's Carbon Border Adjustment Mechanism (CBAM), focusing on the phase-out of free allowances, expanded scope, support for vulnerable nations, and the rejection of export rebates.

The document examines the growth of the transatlantic trade in natural gas liquids (NGLs), specifically ethane and propane, from the US to Europe. It contends that this trade allows European plastics producers to bypass domestic fracking bans and climate regulations, effectively offshoring the high greenhouse gas emissions associated with extraction and transport. The author calls for the EU to expand its Methane Regulation, Emissions Trading System (ETS), and Carbon Border Adjustment Mechanism (CBAM) to cover the full petrochemical supply chain and imports.

The briefing argues that as countries increase climate ambition, border carbon adjustment (BCA) mechanisms are becoming inevitable to prevent carbon leakage in energy-intensive sectors. To prevent these tools from becoming protectionist, the author proposes a framework of principles—such as the primacy of leakage protection, revenue sharing, and credit for equivalent foreign carbon prices—and best practices regarding coverage, data standards, and appeal mechanisms. The author suggests the World Trade Organization (WTO) as the ideal multilateral forum for discussing these standards, specifically highlighting the 2021 Ministerial Conference (MC12) as a critical starting point.

Carbon Market Watch argues that while the CBAM proposal has positive elements, such as basing certificates on verified emissions and avoiding export rebates, it requires significant revisions. Key recommendations include removing the overlap between CBAM and free emission allowances, including bulk chemicals and indirect emissions from the start, providing special considerations for least developed nations and small islands, and recycling revenues toward international climate finance rather than the Next Generation EU facility.