Search Climate Insights Directory

Between 2015 and 2021, Indonesia's power sector tracked USD 35.6 billion in finance, with 58% allocated to renewable energy. While RE finance trended upward after 2016, it faced a setback in 2020 due to COVID-19 and the Omnibus Law. To reach the 2060 NZE target, Indonesia requires USD 16.1 billion in annual financing, leaving a current annual gap of USD 13.1 billion, most notably in solar and wind power.

The document analyzes border carbon adjustments (BCA) as tools to prevent carbon leakage and support domestic carbon pricing. It details a 'decision tree' of design options, including trade flow coverage, geographic exemptions, emission scopes (Scope 1, 2, and 3), and methods for calculating embedded emissions. The brief highlights the tension between environmental objectives and industrial protectionism, noting that fragmented national BCA regimes could create a 'spaghetti bowl' of conflicting requirements that increase administrative burdens for exporters and strain international trade and climate cooperation.

The report details the data sources and estimation techniques used to track G20 financial support for fossil fuels, including subsidies, state-owned enterprise (SOE) investments, and international public finance. It highlights significant data gaps and transparency issues, particularly regarding subnational support and Chinese SOE reporting, and explains the methods used to approximate 2022 subsidy levels during the energy crisis.

The report examines the transition of North Sea oil and gas producers toward net-zero or complete phase-out scenarios. It highlights that while the region shares geography, the three countries are at different stages of transition due to varying economic dependencies on fossil fuels. The authors argue that government must lead these transitions through state intervention, the deployment of clean technologies like offshore wind and CCS, and the creation of participatory governance structures to overcome industry resistance and ensure social equity for workers.

The Canadian Climate Institute's analysis indicates that CCS projects in the oilsands sector are economically viable under current and proposed federal and provincial policies, including carbon pricing and investment tax credits. The study finds that these projects can generate substantial private returns, suggesting that additional public subsidies beyond those already announced are unnecessary and could lead to excessive corporate profits. While CCS can improve carbon competitiveness and reduce the risk of stranded assets in a declining global oil market, it does not eliminate long-term transition risks associated with the Paris Agreement goals.

The author argues that Canada's commitments to phase out fossil fuel subsidies conflict with growing public funding for emission reduction technologies like carbon capture, utilization and storage (CCUS). To manage the risk of stranded assets and inefficient spending, the paper suggests a rigorous framework based on net-zero consistency, economic value relative to alternatives, community vulnerability, and the risk level of the policy tool used. It emphasizes that the burden of proof for public benefit should lie with the companies seeking support.

The analysis finds that CCS projects in Canadian oil sands are economically viable under current and proposed climate policies, such as carbon pricing and investment tax credits, potentially offering private returns of up to 21%. Consequently, the authors argue that additional public funding beyond what is already announced is unnecessary and could lead to excessive corporate profits. While CCS improves the carbon intensity of oil sands production, it does not eliminate the long-term transition risk associated with declining global oil demand.

The author argues that Canada's goal to eliminate fossil fuel subsidies may conflict with its plans to cap oil and gas emissions and maintain sustainable jobs. To resolve this, the document suggests a rigorous framework to ensure public funds are not wasted on assets that may become stranded due to declining global demand. The proposed framework evaluates project alignment with net-zero scenarios, comparative economic value against clean energy alternatives, impacts on worker and community vulnerability, and the matching of policy instruments to project risk levels.

The report examines the G7 Climate Club, an intergovernmental forum aimed at achieving global net-zero emissions by mid-century. While acknowledging its goals, the author argues that the Club's structure—particularly its focus on rapid decarbonisation and potential trade restrictions—could undermine African development. Key concerns include the economic reliance of African nations on hydrocarbon exports, the high cost of transitioning to low-carbon industrial processes, and the risk of trade protectionism through mechanisms like the Carbon Border Adjustment Mechanism (CBAM). The report highlights a history of unfulfilled G7 financial pledges to Africa and recommends a co-design approach that prioritises technology transfer, climate justice, and financial support over strict carbon accounting and trade sanctions.

The document examines national investment laws as versatile policy instruments, tracing their shift from national development tools (1950-1979) to mechanisms for incorporating international treaty standards (1980-2010). It identifies seven primary functions of contemporary investment laws: regulating admission, administering incentives, facilitating investment, providing legal protection, managing disputes, specifying investor obligations, and supervising investments. The report argues against a 'one-size-fits-all' model, suggesting instead that laws be designed based on a country's specific policy objectives and regulatory capacity. It provides a detailed framework for policymakers to evaluate existing laws and design new ones, emphasizing the need to reduce legal risks associated with investor-state dispute settlement (ISDS) and inefficient tax incentives.

The report examines the current state of mining taxation and proposes ten innovative policy ideas to increase government revenue. It highlights the shift toward critical minerals for the energy transition and the risks posed by automation and profit shifting. The proposed ideas include minimum profit sharing, production sharing contracts, state equity, state-owned enterprises, variable royalties, the 'Sixth Method' for transfer pricing, carbon pricing, development taxes for communities, competitive bidding for licenses, and remote monitoring for quarries. It also provides a framework for evaluating these reforms and discusses the legal challenges associated with fiscal stabilization clauses and international investment treaties.

The document argues that traditional mining tax regimes (corporate income tax and royalties) are often insufficient or vulnerable to profit shifting. It proposes ten alternatives, including variable royalties, production sharing contracts, and state equity participation, while addressing the impact of the EU's Carbon Border Adjustment Mechanism (CBAM) and the need for better production monitoring through remote sensing technology.

The guide examines the current state of mining taxation, highlighting challenges such as base erosion and profit shifting (BEPS), and proposes ten innovative policy ideas to improve revenue mobilization. These include minimum profit shares, production sharing contracts, variable royalties, and the 'Sixth Method' for transfer pricing. It also addresses the impact of the EU's Carbon Border Adjustment Mechanism (CBAM) and suggests the implementation of domestic carbon pricing and remote monitoring technologies for industrial minerals. The document emphasizes the need for transparent governance, professional board management for state-owned enterprises, and a balanced approach to fiscal stability clauses to ensure sustainable development.

The authors argue that the EU's current net-zero industry plans are insufficient and propose broadening the scope to include basic material production, introducing a charge on basic materials to raise approximately €50 billion annually for a sovereign wealth fund, and implementing a governance framework that links funding to national reform agendas.

The document outlines 12 key policy interventions to accelerate the transition of hard-to-abate sectors, categorised into simplifying pathways, steering risk and opportunity, derisking green investments, and facilitating essential resource flows.

The report argues that current NDCs and financial frameworks are insufficient to reach net-zero emissions, particularly in developing and emerging economies facing high debt. It proposes nine principles for international climate finance, emphasizing that developed countries must scale up support based on common but differentiated responsibilities (CBDR). Key recommendations include adopting bottom-up, sector-specific finance needs, utilizing innovative mechanisms like debt-for-climate swaps, and aligning finance with national policy processes to avoid carbon lock-ins. The report highlights the importance of 'just transitions' and the synergy between mitigation, adaptation, and loss and damage funding.

The report evaluates the potential for offshore carbon capture and storage (CCS) in the US mid-Atlantic to compensate for limited onshore capacity. Using the SimCCS modeling toolset, the study identifies 199 facilities across 15 industry sectors with a total of 31.47 Mt of annual capturable CO2. It finds that while offshore storage capacity is vast—estimated at 621,221 MtCO2 across 125 candidate sites—the costs are significantly higher than onshore benchmarks, ranging from 95.5 to 147.9 $/tCO2. This cost disparity is primarily driven by offshore pipeline installation and storage expenses. The analysis suggests that capturing the full 31.47 MtCO2 would require a 7,789 km branched pipeline network and that emission prices between $95.5 and $103.5 per tonne could incentivize initial capture efforts.

The Canadian Climate Institute asserts that while the 2023 budget provides financial incentives for a clean economy, regulatory bottlenecks—such as repetitive procedures and limited agency capacity—hinder project implementation. It highlights the urgency of developing critical minerals to meet US market opportunities before 2032 and calls for a streamlined regulatory approach that maintains environmental standards and respects Indigenous rights and consent.

The Stockholm Environment Institute argues that full linkage between Washington's carbon market and the California-Quebec (WCI) market currently poses risks to Washington's environmental goals due to misaligned time horizons and differing levels of ambition. Specifically, the authors highlight a large bank of unused allowances in California that could reduce in-state emission reductions and auction revenues in Washington. They recommend that full linkage be contingent on California extending its program beyond 2030 and tightening its 2030 cap. As an interim measure, the authors propose 'restricted linkage'—such as a limit on the import of WCI allowances (e.g., 2-3% of compliance obligations)—to provide cost containment while maintaining environmental integrity and revenue streams for overburdened communities.

The document outlines an eight-step process for finance leaders to align GHG emissions reporting with financial accounting. It emphasizes the need for cross-functional collaboration between finance and sustainability teams, the application of risk and materiality assessments, and the extension of Enterprise Resource Planning (ERP) systems and internal controls to ensure GHG data is reliable, verifiable, and decision-useful for capital markets.