Search Climate Insights Directory

The report examines the potential for international cooperation to mitigate the risks of unilateral border carbon adjustments (BCAs), such as 'green protectionism' and trade retaliation. It evaluates the G7 Climate Club, GASSA, and the OECD's IFCMA using a framework of 'input legitimacy' (inclusiveness and institutional strength) and 'output legitimacy' (effectiveness in achieving five specific goals). The analysis finds that while none are currently ideal for BCA cooperation, the IFCMA shows the most promise due to its focus on data and comparability. The report warns that domestic political priorities and existing policy path dependencies, such as the EU's established CBAM, hinder the creation of a unified international approach.

The document details Africa's objectives for COP28, emphasizing the need for systemic reform of the global financial architecture to close the adaptation financing gap and operationalize the Loss and Damage Fund. It advocates for a just energy transition that supports Africa's move up the green technology value chain, particularly regarding critical minerals, and calls for the inclusion of community-based organizations and youth in climate decision-making.

A coalition of companies representing over $1.6 trillion in annual revenue calls on governments to phase out unabated fossil fuels, decarbonize power systems by 2035 in advanced economies and 2040 elsewhere, and provide financial and capacity-building support to the Global South for a just transition.

The statement asserts that carbon pricing is not the cause of affordability challenges, which are instead driven by global geopolitical factors and oil and gas profiteering. It calls for the Canadian government to maintain a consistent price on pollution, provide support for home electrification and energy efficiency for low-income families, and implement a windfall profit tax on the fossil fuel industry to finance climate solutions.

The analysis finds that while exempting heating oil has a negligible effect on emissions, adding a natural gas exemption would increase 2030 emissions by 4.5 megatonnes. Furthermore, such exemptions would reduce the carbon rebate payments available to most households, negatively impacting affordability, particularly for lower-income groups.

The State of Climate Action 2023 finds that global efforts to limit warming to 1.5°C are failing, with 41 of 42 assessed indicators not on track for 2030 targets. While electric passenger car sales show exponential growth and are on track, other areas such as fossil fuel financing and deforestation have seen significant setbacks. The report argues that efforts in most sectors must accelerate at least twofold this decade, including a seven-fold increase in the pace of coal phase-out and an eight-fold increase in the shift toward sustainable diets in high-consuming regions.

The analysis finds that exempting natural gas and heating oil from the federal carbon price would increase emissions and reduce household affordability, particularly for low-income Canadians, due to a decrease in the value of Climate Action Incentive Payments.

The EU chemicals sector faces a critical investment window until 2030, requiring over EUR1tn by 2050 to achieve net zero. The document argues that decarbonisation must address scope 3 emissions—which account for 60% to 80% of total emissions—through demand reduction, circularity, and alternative feedstocks. Key policy recommendations include expanding the Carbon Border Adjustment Mechanism (CBAM) to include polymers and organic chemicals, implementing Carbon Contracts for Difference (CCfDs) for low-carbon hydrogen, and strengthening the EU Taxonomy to better incentivise low-carbon basic chemicals production.

The report identifies 30 companies, termed the "emissions aristocracy," that were responsible for over 50% of total EU ETS emissions in 2022. While the power sector has seen significant emission reductions since 2013 due to the absence of free allowances, heavy industries like steel, cement, and petrochemicals have experienced stagnant progress. The author argues that free allowances create windfall profits and remove the financial incentive to innovate, calling for a transition to full auctioning by 2030 to ensure the polluter pays principle is upheld.

The Foreign Pollution Fee Act proposes ad valorem charges on imports across 15 broad categories, including steel, aluminum, and solar panels, based on their greenhouse gas (GHG) intensity relative to U.S. production. The author argues the Act is administratively complex and serves as a protectionist tool, noting that it lacks credits for carbon prices paid in exporting countries and imposes onerous requirements for foreign producers to prove lower emissions. While it offers special treatment for low-income countries through International Partnership Agreements (IPAs), the author contends the bill's primary focus is on restricting imports from China and Russia rather than environmental protection.

The Canadian Climate Institute and Clean Energy Canada propose adjustments to the Clean Electricity Regulations (CER) to ensure they are achievable and cost-effective. Key recommendations include raising the performance standard to 60 tonnes of CO2 per GWh, increasing the capacity factor for peaker plants to 15%, and introducing interim standards for facilities commissioned after 2025. To complement the CER, the authors argue for reforming the Output-based Pricing System (OBPS) to apply full carbon pricing to the electricity sector, federally procuring negative emissions via DAC-CCS and BECCS to offset residual emissions, and increasing support for demand-side management and distributed energy resources.

The Canadian Climate Institute argues that Canada faces an existential challenge to accelerate its transition to net zero to remain competitive. Key recommendations include implementing a climate investment taxonomy, finalizing Clean Electricity Regulations to meet demand that could triple by 2050, and addressing the high carbon intensity of the oil and gas sector through emissions caps and methane regulations. The Institute emphasizes that the risk of moving too slowly outweighs the risk of moving too quickly, especially as international investors managing over $61 trillion in assets commit to net zero.

The Canadian Climate Institute argues that exemptions to carbon pricing, particularly for home heating in Atlantic Canada, would undermine emission reduction incentives and increase the long-term cost of meeting climate targets. It contends that the existing rebate system already supports low-income households and proposes that any additional affordability needs be met through temporary, targeted rebates rather than policy exemptions that create market uncertainty.

The author contends that carbon pricing exemptions, such as those proposed for rural home-heating fuel in Atlantic Canada, are counterproductive because they eliminate incentives for cleaner energy adoption and create policy uncertainty for investors. While acknowledging energy affordability concerns, the text asserts that the existing rebate system already benefits most low-income households. As an alternative to exemptions, the document suggests implementing temporary, targeted rebates for low-income households to address cost-of-living pressures without weakening the overall carbon pricing framework.

Canada has introduced the first transparently published guidelines to prevent new inefficient fossil fuel subsidies, building on its 2022 commitment under the Glasgow Statement. While the framework adopts the World Trade Organization's definition of subsidies and establishes a definition of inefficiency, critics and the IISD highlight loopholes, such as exemptions for 'abated' fossil fuel production involving carbon capture and storage. A significant gap remains in domestic public financing for fossil fuels, which Environmental Defence estimated at CAD 19 billion from the Federal Government in 2022. The government has pledged a plan to end this domestic public financing by fall 2024.

The policy brief outlines how Saudi Arabia and the UAE can leverage their geological storage potential and National Oil Companies to scale up carbon capture and storage (CCS). It identifies current project statuses, storage capacities, and recommends the creation of carbon management strategies, open-access storage hubs, and enduring financial incentives to decarbonize hard-to-abate industries and the power sector.

The document argues that climate change is a health emergency in Canada, citing record-breaking heat and wildfires in 2023. It calls on the Minister of Health to lead decarbonization of the healthcare system, address fossil fuel pollution as a root cause of health harms, and implement the National Adaptation Strategy to protect vulnerable populations.

The European Union is expanding its Emissions Trading System (ETS2) to cover buildings and road transport, starting in 2027 or 2028. While intended to accelerate decarbonisation by applying the 'polluter pays' principle, the system risks disproportionately impacting low-income households. To mitigate this, the EU has established the Social Climate Fund (SCF) to support vulnerable groups and finance energy retrofitting. Carbon Market Watch advocates for increasing the SCF cap, strengthening energy performance standards, banning internal combustion engines by 2035, and ensuring that carbon pricing is complemented by binding national targets under the Effort Sharing Regulation.

The Climate Bonds Initiative argues that Japan's GX plan requires strengthening in several key areas to be truly 1.5°C-aligned. Key recommendations include prioritizing established renewable technologies, setting a clear phase-out date for unabated coal power by 2035, strictly limiting gas investments, and tightening standards for low-carbon hydrogen and ammonia. The report emphasizes that the success of Japan's planned 20 trillion yen GX Economic Transition Bonds depends on rigorous alignment with scientific pathways to mobilize private capital and avoid stranded assets.

The Climate Bonds Initiative evaluates Japan's GX Plan, noting that while it provides a solid foundation for transition finance, certain elements—specifically the reliance on ammonia co-firing and fossil gas—risk undermining its credibility. The report recommends prioritising mature renewable technologies, setting a clear phase-out date for unabated coal by 2035, and implementing a mandatory emissions trading system with a strong carbon price to ensure alignment with global 1.5°C goals.