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The report analyzes the vulnerability of ASEAN economies to climate transition risks, highlighting a significant reliance on fossil fuels for electricity generation. It finds that carbon-intensive sectors represent approximately 25% of corporate bond issuance in the region, with a substantial portion of loans and bonds facing refinancing risks by 2030. The authors argue that current industrial classification systems are inadequate for identifying these risks and recommend that ASEAN central banks develop comprehensive 'green' and 'brown' taxonomies to enhance climate risk disclosures and manage potential asset stranding.

The Canadian Climate Institute concludes that Canada's 2030 Emissions Reduction Plan is credible and capable of delivering deep emissions reductions, putting the country on a path to meet its 2026 targets and nearly meeting its 2030 milestone. However, the assessment warns that success depends entirely on the timely execution of a complex policy package, with at least 43 per cent of reductions coming from policies that are announced but not yet developed. Five critical policies—carbon pricing, the oil and gas cap, the Clean Electricity Standard, the Clean Fuel Standard, and land-use reductions—are identified as accounting for 62 per cent of the total reductions needed by 2030.

The Canadian Climate Institute concludes that the 2030 Emissions Reduction Plan is credible and puts Canada on a path toward its 2050 net-zero goal, though a slight gap remains for the 2030 target. Independent modeling suggests that while the plan is transparent and ambitious, its success depends on the rapid implementation of five priority policies—carbon pricing, an oil and gas emissions cap, a clean electricity standard, a clean fuels standard, and land-use emission reductions—which together would account for 62% of the necessary reductions. The report emphasizes that the primary risk is no longer the plan's design but the speed and effectiveness of its execution.

The report evaluates the impact of expanding the EU Emissions Trading System (EU ETS) to cover more European aviation flights compared to the European Commission's (EC) proposal, which retains the EU ETS for intra-EEA flights and uses CORSIA for flights between the EEA and other participating states. Using the AERO-MS model, the study finds that expanding the EU ETS to include all outgoing flights (Scenario 1) or all outgoing and incoming flights (Scenario 2) would significantly increase emission reductions and auctioning revenues, though at a higher cost to airlines. Specifically, Scenario 2 would result in a 113% higher emission reduction than the EC proposal. The report also highlights uncertainties in CORSIA's effectiveness, noting that changes in the baseline or non-participation of major aviation countries could reduce its emission reductions by up to 77%.

The report analyzes the EU's proposed CBAM, which will impose fees on carbon-intensive imports starting in 2026. It finds that the overall impact on China's exports will be moderate due to the limited number of covered sectors, primarily aluminum, iron, and steel. The authors recommend that China expand its national emissions trading system (CN ETS) to reduce exposure to fees and enhance competitiveness. For the EU, the report suggests dedicating CBAM revenues to technical assistance for developing countries and recognizing non-price-based decarbonization policies to reduce international tensions.

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 briefing analyzes 1,047 energy policies adopted between January 2020 and November 2021, finding that most governments prioritize short-term poverty reduction over long-term inequality reduction. While 60% of policies could reduce poverty, only 11% are likely to decrease inequality. The authors identify 'win-win' policies (e.g., energy efficiency in social housing) and 'lose-lose' policies (e.g., fossil fuel extraction support), arguing that the social outcomes of energy transitions depend heavily on policy design, contextual factors, and complementary social protections.

The report outlines the assumptions for 25 federal policies categorized as legislated/developed, developing, or announced. Key measures include a federal fuel charge and Output-Based Pricing System reaching $170/tCO2e by 2030, a proposed emissions cap on the oil and gas sector, and a Clean Electricity Standard aiming for net-zero by 2035. The document specifies simulation scenarios for these policies, including varying stringency levels for methane reductions, ZEV mandates, and building efficiency standards, alongside detailed funding allocations for infrastructure, hydrogen projects, and industrial decarbonization.

The document addresses the rise in EU ETS carbon prices, which reached €98.49 on 8 February 2022. It refutes claims from energy-intensive industries and countries like Poland and Spain that speculative trading is causing price spikes, noting that speculative activity accounts for only about 4% of ETS activity. The author opposes a proposal by MEP Peter Liese to release 100 million additional allowances if prices remain high for six months, arguing this would undermine emission reduction goals. Instead, the document advocates for reducing the oversupply of credits, ending free allowances, and aiming for a 70% reduction in ETS emissions by 2030 to provide a stable price signal for industrial decarbonisation.

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 document identifies a dilemma in India's financial system where increasing green finance is perceived to raise credit risk, while strict risk management may constrain green capital flows. It argues that current frameworks, including Basel III, do not adequately factor in climate-related financial risks. To bridge the investment gap—estimated at USD 170 billion per annum—the report recommends a three-pillar approach: policy interventions (such as carbon pricing and green government securities), regulatory prescriptions (including modified risk weights and carbon ratings), and market mechanisms (such as standardized disclosure frameworks and capacity building).

The document analyzes power sector financing in Indonesia from 2015 to 2020, revealing a significant investment gap in renewables and a continued reliance on fossil fuels. While international finance for coal dropped sharply after 2018, domestic finance remains heavily skewed toward fossil fuels. To meet the 2060 Net Zero target, Indonesia requires USD 16.1 billion in annual renewable energy investment, far exceeding the tracked average of USD 2.7 billion. The report highlights solar energy as having the largest investment gap and suggests leveraging blended finance, green sukuks, and the Energy Transition Mechanism to accelerate the transition.

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 analyzes power sector financing in Indonesia from 2015 to 2020, revealing a significant investment gap for renewables and a continued reliance on fossil fuels. While international finance for coal dropped sharply after 2018, domestic finance remains heavily skewed toward fossil fuels. To meet the 2060 Net Zero target, Indonesia requires USD 16.1 billion annually for renewables, compared to a tracked average of USD 2.7 billion. The report highlights solar energy as having the largest investment gap and suggests leveraging blended finance, green sukuk, and the Energy Transition Mechanism to phase out coal and scale up clean energy.

The briefing note argues that trade policy should avoid creating a "two-speed global economy" by balancing regulatory requirements ("sticks") with support measures ("carrots"). It suggests that WTO members adopt principles from international environmental law—such as Common but Differentiated Responsibilities (CBDR)—and employ a data-driven diagnostic process to identify specific barriers to green transitions across different commodities and levels of development.

The polluter-pays principle (PPP) requires those who produce pollution to bear the costs of managing it to prevent damage to human health and the environment. While established in the European Union and OECD, it is not yet a customary international norm due to ambiguities in defining 'the polluter' and varying national implementations. In climate change law, the PPP informs debates on loss and damage and is indirectly present in the Paris Agreement through nationally determined contributions and climate finance. The document suggests that combining the PPP with the principle of common but differentiated responsibilities (CBDR) could help the Global North absorb costs for environmental harms caused in the Global South.

The document asserts that relying on fossil gas as a transition fuel is an unreliable energy strategy, especially given the risks highlighted by the current gas crisis. It argues that market forces and carbon pricing are insufficient to ensure a timely coal phase-out. To maintain the 1.5C target, the author urges policymakers to legislate the closure of coal power stations by 2030 and implement a policy framework to achieve a clean electricity grid across Europe by 2035.

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 polluter-pays principle (PPP) requires that the costs of pollution be borne by those responsible for causing it. While established in the EU and OECD, it is not a customary international norm due to varying state definitions and implementation complexities. In climate law, the PPP is relevant to loss and damage and carbon pricing, though it is not explicitly mentioned in the UNFCCC, Kyoto Protocol, or Paris Agreement. The document suggests that combining the PPP with the principle of common but differentiated responsibilities (CBDR) could ensure that Global North entities absorb the costs of environmental harms caused in the Global South.

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.