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The policy brief argues that current carbon pricing mechanisms, which use free allowances to prevent carbon leakage in industrial sectors, eliminate the price signal for mitigation beyond primary production efficiency. To address this, the authors propose 'Inclusion of Consumption,' where a consumption charge is levied on carbon-intensive materials (such as steel, aluminum, and clinker) based on benchmark emission values and the carbon price. This charge would apply to all domestic consumption regardless of origin, making it compatible with WTO law. The mechanism would use duty suspension arrangements to track materials through the value chain, with the charge becoming due only when the good is released for consumption. The brief notes precedents in Asia (South Korea, China, Tokyo) regarding electricity consumption and discusses potential implementation in Europe and the United States.

The policy brief examines the potential for linking the EU ETS with other carbon markets, specifically focusing on ongoing negotiations with Switzerland. It argues that while linking can increase cost-efficiency, it risks reducing overall emissions abatement, lowering domestic investment, and undermining the EU's target of at least 40% domestic emissions reductions by 2030. The author highlights a lack of transparency and democratic oversight in current linking procedures and recommends that any future linking be accompanied by increased EU emission targets and strict criteria regarding target stringency, the use of offsets, and price/supply controls.

The report examines the feasibility of linking the EU ETS with various global carbon markets, highlighting that success depends on harmonizing design features such as target stringency, offset rules, and price controls. It analyzes the successful California-Quebec linkage and the failed EU-Australia attempt, while evaluating the compatibility of the EU ETS with markets in Switzerland, China, South Korea, New Zealand, Kazakhstan, and the US RGGI. The author recommends that the EU ETS adopt safeguards used elsewhere, such as auction floor prices and banking limits, to address oversupply and price volatility.

The author contends that the EU ETS is hindered by a massive oversupply of emission allowances, which suppresses carbon prices and risks 'green job leakage'. To rectify this, the document calls for the European Commission to implement a mechanism for the permanent cancellation of surplus and unused allowances and to move toward full auctioning of permits after 2020.

The document examines how energy market conditions, specifically supply and pricing, influence the ability of Viet Nam to attract high-quality foreign direct investment (FDI) to support its economic development goals.

The report examines the potential for China to use revenues from a national emissions trading scheme (ETS), expected by 2016, to fund renewable energy. While experts agree that earmarking is feasible, they suggest that funds should target less mature technologies like tidal and geothermal power rather than established wind and solar PV, which are already well-financed. Short-term revenues from auctioning allowances are expected to be small, but long-term potential exists if political will remains constant. Governance challenges include the need for transparency, the harmonization of monitoring, reporting, and verification (MRV) rules across regions, and the decision between centralizing or localizing fund management.

The International Institute for Sustainable Development (IISD) advocates for a stringent cap-and-trade system, the elimination of fossil fuel subsidies, and the integration of climate adaptation into infrastructure and building codes to advance Ontario's climate goals.

The document outlines a study designed to inform Indonesia's domestic fuel pricing policy by comparing international experiences. It aims to establish a baseline of Indonesia's current system, summarize global pricing knowledge for policy-makers, and identify viable policy options to manage fuel price volatility and enforce the pricing mechanism introduced in 2015.

The document argues that the EU's 2030 target of reducing non-ETS emissions by 30% relative to 2005 levels will create a significant gap between the demand for and supply of Annual Emissions Allocations (AEAs). It suggests that the existing 2020 flexibility mechanism is insufficient and proposes the creation of an AEA Clearinghouse to facilitate project-based trading, increase market transparency, and catalyze low-carbon investment in lower-income Member States.

The We Mean Business Coalition advocates for a global climate agreement that limits temperature rises to below 2C, emphasizing the need for a net-zero emissions goal, scalable climate finance, and increased short-term ambition through the UNFCCC Workstream 2. The coalition argues that bold climate action represents a historic economic opportunity, noting that some low-carbon investments have achieved an internal rate of return (IRR) of 27%.

The document warns that the EU Emissions Trading System (EU ETS) is dysfunctional due to a surplus of over 2 billion tonnes of pollution permits, which has caused carbon prices to drop from 30 euros in 2008 to approximately 7 euros. It advocates for the immediate implementation of a market stability reserve to manage this overcapacity, noting that failure to reform the market could lead to a shift toward national-level command-and-control measures and undermine global carbon trading systems and the Paris climate summit. However, it cautions that a reserve is only a temporary cushion and that a permanent cancellation of surplus permits is necessary to protect future climate targets.

Richard Branson and B Team leaders advocate for a global commitment to net-zero greenhouse-gas emissions by 2050, arguing that this target is necessary to avoid the most catastrophic consequences of climate change. The statement calls for a meaningful price on carbon and the redirection of fossil fuel subsidies toward renewables, emphasizing that bold government commitments in Paris will drive business innovation and investment.

The report investigates the potential for a Market Stability Reserve (MSR) to address market and regulatory failures in the EU ETS, such as limited banking capacity and regulatory myopia. Through a model comparison exercise involving twelve institutions, the authors assess different MSR designs—including the European Commission's proposal, an 'Early Start' version, and price-based mechanisms—across indicators of efficiency, price credibility, consistency, transformation, and robustness. The findings suggest that an MSR generally improves performance, with an Early Start MSR (2017) offering superior benefits over the 2021 proposal. The report emphasizes that the effectiveness of quantity-based MSRs depends heavily on setting trigger levels that accommodate the hedging needs of market participants, suggesting the use of REMIT Directive data for future adjustments.

The briefing examines the concept of 'climate compatible development' as a means to achieve 'zero-zero'—the simultaneous eradication of poverty and the elimination of net CO2 emissions. It frames this as a 'wicked problem' requiring the integration of mitigation, adaptation, and economic transformation. The author emphasizes that success depends on policy leadership, careful design to manage winners and losers, and cross-government implementation beyond environmental ministries.

The document argues that removing fossil-fuel subsidies is a critical lever for reducing global greenhouse gas emissions and unlocking low-carbon energy pathways. It highlights that global emissions could decrease by 6% to 13% by 2050 through the phase-out of consumer subsidies, though these figures are likely underestimates as they exclude producer subsidies. The paper outlines how countries can incorporate FFSR into their INDCs, Nationally Appropriate Mitigation Actions (NAMAs), and the 2015 UNFCCC agreement. It emphasizes that to maximize emission reductions, subsidy removal must be coupled with binding emission caps in OECD countries to prevent 'carbon leakage' and simultaneous government investment in low-carbon energy and transport infrastructure to enable fuel switching.

The document examines the rollout of biofuels and agribusiness in Southeast Asia, finding that promised poverty reduction and rural development benefits often fail to materialize. It highlights systemic issues including unclear land tenure, the vulnerability of small-scale producers, and weak enforcement of environmental laws. The authors argue that investments frequently precede inclusive development planning, leading to social tensions and ecological risks, and recommend prioritizing 'upstream' planning and strengthening dispute resolution mechanisms.

The policy brief defines carbon lock-in as the process where investments in carbon-intensive technologies and institutions make shifting to low-carbon pathways more difficult and expensive. It introduces a four-step methodology for policy-makers to assess lock-in risk: defining the context, identifying investments inconsistent with climate goals (using 'over-committed emissions' and 'over-production' metrics), assessing the strength of the lock-in (via equipment lifetime and capital intensity), and considering techno-institutional effects. Applying this globally for the period 2015–2030, the brief identifies coal-fired power plants as the highest risk on the demand side, committing 180 Gt CO2 beyond a 2°C pathway. On the supply side, capital-intensive offshore oil and gas platforms are highlighted as significant risks due to high capital and rent intensities. The author recommends that policy-makers move beyond merely promoting low-carbon technologies to actively restricting high-carbon investments through stringent codes, moratoria, and the use of shadow carbon prices.

The report argues for integrating a 'capabilities approach'—derived from the work of Amartya Sen and Martha Nussbaum—into global climate policy, specifically the 2015 international climate agreement. It suggests that climate policies, such as renewable energy and carbon pricing, should be designed to strengthen the basic capabilities of the least well-off rather than diminish them. The document recommends that the UNFCCC incorporate capabilities into the evaluation of Intended Nationally Determined Contributions (INDCs) and across all core agreement elements, including finance and technology, to achieve equitable climate action.

The report argues that Brazil's current energy-related emission trajectory is unsustainable and likely to exceed estimated fair carbon budgets between 2024 and 2035. It identifies significant opportunities for decarbonization in the transport, industry, and electricity generation sectors, suggesting that a transition to a low-carbon economy can be achieved with low or negative economic costs while improving public health and competitiveness.

The Measuring Up 2015 report analyzes climate action across 116 US local governments, representing approximately 14% of the US population. It finds that achieving these cities' 2050 emissions goals would be equivalent to shutting down 86 coal-fired power plants. The report highlights the success of cities like Atlanta, Cincinnati, Minneapolis, and Portland, noting that strong government leadership, supportive state policies, and private sector partnerships are critical for success. It argues that while local actions are significant, they require an enabling national policy framework, including strong power plant regulations and carbon pricing, to reach their full potential.