Search Climate Insights Directory

The document outlines the gTech-IESD modeling framework used to assess Canadian carbon pricing. It details ten policy scenarios ranging from 'No policy' to 'Announced policies with binding LETS systems', alongside sensitivity analyses for oil prices and technology costs. The report specifies macroeconomic inputs from the PBO and CER, and provides a comprehensive inventory of legislated and announced federal and provincial climate policies, including fuel charges, Large Emitter Trading Systems (LETS), and various investment tax credits.

The report argues that fiscal policies—including roadmaps, tax incentives, guarantees, and subsidies—are essential to bridge the net-zero investment gap in the ASEAN+3 region. It identifies critical barriers such as a lack of suitable project pipelines, regulatory uncertainty, and the predominance of MSMEs. The document recommends a holistic approach combining these fiscal tools with non-fiscal policies like green taxonomies and mandatory climate disclosures to steer the financial sector toward sustainable development goals.

The document argues that achieving cost-effective net-zero emissions in Canada's building sector requires a significant shift toward electrification and a cessation of gas network expansion. It highlights a misalignment between current utility regulations—which continue to incentivize gas infrastructure growth—and the necessary transition to clean energy. The briefing recommends that provincial governments legally mandate net-zero targets for regulators, prioritize electrification over gas for new developments, and develop managed contraction plans for existing gas networks to avoid stranded assets and protect taxpayers.

The document outlines the necessity of shifting Canada's building heat from gas to electricity to meet net-zero targets cost-effectively. It warns that continued expansion of gas networks risks creating stranded assets and higher costs for ratepayers. The author argues that current utility regulation is insufficient for the energy transition and recommends that provincial governments legislate net-zero targets, prioritize electrification over gas expansion, and implement managed contractions of gas networks while centering equity in policy design.

The document argues that a just transition requires wealthy, high-emitting nations to phase out fossil fuels first and fastest while providing financial and technological support to less wealthy countries. It outlines a broad menu of policy tools across resource management, financial markets, fiscal and monetary policy, economic diversification, and global governance to manage the decline of fossil fuel production and consumption equitably.

The FSD Program addresses the funding gap for the Paris Agreement and Sustainable Development Goals by shifting focus from the supply side of finance to the demand side. By analyzing firm-level investment decisions in low- and lower-middle-income countries (LLMICs), the program identifies the enabling conditions and blended-finance instruments—such as guarantees and risk mitigation—necessary to make sustainable projects attractive to private investors. This micro-level evidence is then used to inform macro-level global and regional policy frameworks.

The report highlights that the EU is a net importer of CO2 emissions, with consumption-based emissions (CBEs) significantly exceeding territorial emissions. While the EU has focused on territorial targets, the authors argue that addressing CBEs is essential for global climate goals. Through case studies of Sweden, Denmark, and France, the report identifies a lack of standardized monitoring and binding targets as primary barriers. It recommends that the EU establish binding CBE targets, standardize carbon accounting, and expand policies like the Carbon Border Adjustment Mechanism (CBAM) and the EcoDesign Regulation to drive sustainable consumption and production globally.

The document argues that the EU's territorial emission reductions mask a growing carbon footprint driven by the import of emissions-intensive goods. It identifies food, housing, and mobility as primary consumption hotspots and recommends binding EU-level targets, mandatory reporting for member states, and enhanced trade transparency to address these emissions.

The author warns that a rightward political shift in the EU and UK could lead to the rollback of climate regulations and the weakening of the European Green Deal. While EU citizens express high levels of concern for climate change, competing priorities like security and healthcare may lead them to vote for parties hostile to green policies. The text urges activists to combat political apathy and maintain climate action on the political agenda even if climate-skeptical forces gain power.

The document assesses the current state of bioeconomy strategies across G20 nations, identifying three primary thematic axes: biotechnology (R&D&I), bioresources (sustainable use of biodiversity), and bio-ecology (sustainable development). It highlights the significant economic potential of the sector, citing estimates that its value could reach US$30 trillion by 2050. The report emphasizes the necessity of integrating indigenous and local knowledge, ensuring social equity, and aligning bioeconomy growth with biodiversity conservation and climate action. It further examines policy enablers such as Green Public Procurement and carbon pricing, and discusses financing mechanisms including nature markets and sustainability-linked bonds. The report concludes by proposing five key themes for the G20 Initiative on Bioeconomy's program of work: integration into growth plans, livelihoods and equity, enabling finance, facilitating biotrade, and measurement methodologies.

The report examines the potential for direct electrification to decarbonize China's industrial process heating, which accounts for nearly three-quarters of the manufacturing sector's CO2 emissions. It focuses on industrial heat pumps for low-temperature needs (up to 165 °C) and thermal batteries for high-temperature needs (up to 1,700 °C). A techno-economic analysis reveals that while coal-fired boilers currently have the lowest levelized cost, industrial heat pumps become the cheapest option for low-temperature heat when 2030 carbon pricing is included. The report identifies significant barriers, including the high cost of electricity relative to coal and limited equipment availability, and recommends policies such as equipment rebates, carbon pricing expansion, and the optimization of Green Electricity Certificates to accelerate the transition.

The document analyzes the first Global Stocktake's signals on mitigation, adaptation, and loss and damage, highlighting the systemic challenges for the Global South. It argues that while the GST provides historic targets for transitioning away from fossil fuels and tripling renewables, it lacks concrete financial commitments. The brief emphasizes the need for the NCQG to address the 'trilemma' of climate goals, fiscal sustainability, and political feasibility by expanding fiscal space through non-debt instruments and reforming the international financial architecture.

The authors argue that Canada requires $140 billion in annual investment to reach net zero, but attracting this private capital requires greater policy certainty. They propose three specific measures: establishing a green and transition taxonomy, providing confidence in the industrial carbon price through carbon contracts for difference, and developing a clean electricity grid as envisioned by the Clean Electricity Regulations to remain competitive against other jurisdictions and avoid carbon-related border adjustments.

The EU's Carbon Border Adjustment Mechanism (CBAM), effective October 2023, imposes carbon tariffs on imports to prevent carbon leakage and encourage global decarbonisation. The document argues that the CBAM will disproportionately harm African countries, particularly least-developed countries (LDCs), by reducing GDP and exports of key materials like aluminium, iron, and steel. It highlights concerns regarding the mechanism's equity, its potential conflict with WTO non-discrimination rules, and the EU's plan to use revenues for internal debt rather than supporting LDCs. The brief recommends that the AfCFTA negotiate for exemptions, a slower phase-in period, and the exclusion of indirect emissions, while urging the EU to increase climate finance and technology transfers to Africa.

The 2024 barometer identifies a shift toward embedding social justice in climate action and the rise of green macroeconomic governance, while warning against the 'gold rush' for critical minerals and the use of climate as a political 'wedge' issue.

The report argues that the UK is currently off track to meet its 2030 NDC and sixth carbon budget, necessitating a shift toward 'accountability and implementation'. It advocates for a systems-based approach that complements electrification with carbon capture and storage (CCS), low-carbon hydrogen, nuclear energy, and aggressive methane mitigation. Key recommendations include establishing a Methane Action Plan, creating a 'producer responsibility' policy for CO2 storage, and prioritising low-carbon hydrogen for 'no-regrets' industrial sectors like refining and ammonia production. The document also emphasises the need for international collaboration, particularly with the EU and emerging economies, to scale these technologies and maintain the UK's global climate leadership.

The report examines how developing countries can capture a fair share of financial benefits from critical minerals, highlighting risks such as price volatility, oversupply, and opaque markets. It suggests opportunities for these nations to increase state participation, develop downstream processing capabilities, and reform fiscal incentives to maximize economic gains from the energy transition.

The report analyzes the fiscal risks and opportunities for developing countries producing critical minerals essential for the energy transition. It highlights the potential for significant additional revenues—estimated up to USD 25 billion annually in taxes and royalties by 2040—while warning of risks such as price volatility, lack of transparency in markets like cobalt and lithium, and the potential for oversupply due to substitutes. The document argues that producer countries can increase their economic benefits by enhancing domestic processing (adding value), re-evaluating state participation, and reforming overly generous tax incentives. It also addresses the impact of alternative financing like 'metal streaming' and the potential costs associated with carbon pricing mechanisms such as the EU's Carbon Border Adjustment Mechanism.

The report analyzes how developing countries can maximize financial gains from critical minerals during the energy transition. It identifies risks such as price volatility, opaque markets, and the impact of alternative financing like metal streaming. Opportunities include increasing state participation, developing downstream processing to add value, and reforming tax incentives. The document emphasizes that while significant additional revenues are possible—potentially between 98 billion and 259 billion USD annually by 2040—the window of opportunity is limited by potential oversupply and the development of substitute materials.

The report finds that while the VCM is viewed as a strategic tool for achieving net zero and incentivizing internal decarbonization, its growth is stymied by a lack of recognition from climate goal standard-setters and perceived reputational risks. Survey data suggests that if standard-setters like the SBTi recognized carbon credits and regulatory claims codes were adopted, corporate spending and the setting of ambitious emissions targets would increase significantly.