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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 document analyzes the EU's proposed Carbon Border Adjustment Mechanism (CBAM), which aims to prevent carbon leakage by imposing a carbon price on imports in sectors like iron, steel, cement, aluminum, fertilizers, and electricity. It specifically examines the phase-out of free EU ETS allowances, the exclusion of export rebates, the scope of emissions (direct vs. indirect), and the crediting of third-country climate policies. Swedish stakeholders are divided: industry groups generally fear competitiveness losses due to the lack of export rebates and the exclusion of Scope 2 emissions, while environmental groups advocate for a faster phase-out of free allowances.

The document outlines the EU's proposed Carbon Border Adjustment Mechanism (CBAM), designed to prevent carbon leakage by requiring importers to purchase certificates for embedded emissions in specific goods. It details the sectors covered, the calculation of emissions, the phase-out of free ETS allowances, and the transitional period from 2023 to 2025. Carbon Market Watch critiques the proposal for excluding bulk chemicals and indirect emissions, the slow phase-out of free allocations, and the plan to use revenues for COVID-19 debt repayment rather than international climate finance.

The document examines how permitting processes can be optimized to support the rapid decarbonization of heavy industry, specifically in Sweden's cement, steel, petrochemical, and refinery sectors. Based on a workshop with government agencies and industrial companies, it identifies key characteristics of successful permitting—such as transparency, predictability, and dialogue—and emphasizes the critical role of competence and resources. The brief argues that while some regulatory reforms may be needed, significant improvements can be achieved within existing frameworks by increasing institutional expertise, ensuring stable funding for authorities, and encouraging companies to treat stakeholder dialogue as a core competence.

The report examines four high-emitting sectors—steel, cement, agriculture, and oil and gas—concluding that none have seriously initiated the disruptive changes required to align with the Paris Agreement. It emphasizes that while long-term transitions will take decades due to investment cycles and systemic complexity, immediate action is required to avoid locking in polluting assets. The authors argue that investors can drive impact through active engagement with value chains and by pressuring companies to commit to fundamental business model shifts rather than simple portfolio reallocation.

RMI proposes a framework for 'climate intelligence' based on four pillars: emissions visibility, standardized accounting, digitized infrastructure using distributed ledger technology, and the scaling of these standards in markets. The document highlights the need to harmonize over 250 existing GHG accounting methodologies to create a 'digital schema' for carbon attribution. A key initiative mentioned is Horizon Zero, funded by a $10 million grant from the Larsen Lam Climate Change Foundation, which aims to apply digital disclosure models from the cryptocurrency industry to heavy industrial sectors like steel and cement. The author contends that digitization will make GHG and ESG disclosures as seamless as financial accounting, aligning with emerging regulatory trends in the EU and US.

The document argues that Green Public Procurement (GPP) can leverage the significant purchasing power of governments to stimulate demand for low-carbon materials in energy-intensive industries. It focuses on hard-to-abate sectors such as steel and cement, noting that five basic industrial materials account for 20% of global CO2 emissions. The brief, produced by UNIDO and the Leadership Group for Industry Transition, aims to provide methodologies for GPP design to help reach Paris Agreement targets.

The document highlights the necessity of public-private collaboration to decarbonize heavy industry, which contributes approximately 30% of global CO2 emissions. It identifies the Leadership Group for Industry Transition (LeadIT), launched by Sweden and India, as a key arena for international cooperation toward net-zero emissions by 2050. The brief examines specific policy tools such as green public procurement, carbon contracts for difference, and carbon border adjustments, while referencing implementation experiences in countries including South Korea, Denmark, Sweden, Canada, and the UK.

The briefing proposes a federal low-carbon product standard for the U.S. cement and steel sectors to drive decarbonization. It suggests setting declining emissions intensity benchmarks and allowing the trading of emissions credits among producers and importers. For cement, the author recommends regulating the cement itself rather than concrete for administrative ease. For steel, the focus is placed on intermediate fabricated products. The document emphasizes that such a standard should include both direct and indirect emissions and be supported by price ceilings and floors to manage credit costs. Implementation via new legislation is preferred over the Clean Air Act to ensure coverage of imports and upstream emissions. Potential abatement technologies highlighted include fuel switching, carbon capture, use and storage (CCUS), energy efficiency, and hydrogen-based steel production.

The policy brief argues that while free allocation in the EU ETS protects against carbon leakage, it mutes the carbon price signal for consumers, leading to underinvestment in material efficiency. To solve this, the authors propose a 'climate contribution'—a weight-based charge on the consumption of carbon-intensive materials sold in Europe. This mechanism would pass carbon costs to users and generate revenue for climate action without the high administrative complexity or trade conflict risks associated with border-focused CBAMs. The brief compares this approach against three other CBAM scenarios, concluding that combining dynamic free allocation with a climate contribution maintains a level playing field for exports and avoids 'resource shuffling' and downstream leakage.

The document outlines requirements for the EU's proposed carbon border adjustment measure, asserting that it must replace all existing industry protections, such as free pollution permits, to avoid being mere protectionism. It proposes that foreign producers buy pollution permits under the EU carbon market to strengthen carbon prices and incentivise innovation. The author suggests targeting the most polluting sectors—specifically steel, cement, and bulk chemicals—while exempting Least Developed Countries (LDCs) and Small Island Developing States (SIDS). Finally, it argues that all revenues generated should fund climate action, either through EU innovation funds or as climate finance for developing nations.

The World Resources Institute outlines ten priorities for President Biden to address the climate crisis, centered on the principles of inclusive prosperity, focusing on carbon-heavy sectors, and supporting subnational action. Key recommendations include committing to a 45-50% emissions reduction by 2030, passing a $2 trillion climate-smart stimulus package, and phasing out new passenger vehicle sales of polluting cars by 2035. The plan emphasizes a 'whole-of-government' approach combining standards, investments, carbon pricing, and environmental justice to reach net-zero emissions by 2050.

Carbon Market Watch proposes ten principles for the EU's Carbon Border Adjustment Measure (CBAM), arguing that it must replace free allocation of allowances in the EU ETS to adhere to the 'polluter-pays' principle. The organization recommends that CBAM cover direct and indirect emissions in high-emitting sectors like steel, cement, and bulk chemicals, and be implemented as an extension of the EU ETS. Key social and diplomatic recommendations include exempting Least Developed Countries (LDCs) and Small Island Developing States (SIDS), recycling revenues into climate action, and using the mechanism to complement international climate diplomacy and product requirements.

The report asserts that 'business as usual' is an unsustainable strategy for industrial sectors, as over 40 percent of annual greenhouse gas emissions originate from energy-intensive industries. It warns that failure to reach net-zero emissions by 2050 threatens the global economy with supply chain disruptions and value destruction for major commodities. The author argues that achieving a 1.5°C pathway requires not only technological shifts—such as the adoption of hydrogen and carbon capture—but also a reduction in the demand for materials like steel, cement, and plastic. The text emphasizes that an orderly transition is preferable to disruptive 'black swan' events and notes a shifting balance of market power away from fossil fuel industries toward climate-aligned corporations.

The document analyzes the impact of the COVID-19 pandemic on the EU carbon market, noting a price drop of nearly 40% to just above €15/ton CO2 as of 25 March 2020. It argues that the current Market Stability Reserve (MSR) is unfit for handling sudden surpluses and proposes specific legislative reforms, including increasing the intake rate to 36% from 2024 and raising the linear reduction factor to at least 4.2%. The author warns against using the health crisis to weaken climate policies or provide unfounded subsidies to polluting sectors like aviation, steel, chemicals, and cement, urging governments to ensure post-pandemic recovery packages support the green transition.

Carbon Market Watch argues that the EU should replace the free allocation of emission allowances in the EU ETS with a Carbon Border Adjustment Mechanism (CBAM) to ensure polluters pay for their emissions. The organization asserts there is no evidence of carbon leakage and proposes that a CBAM should be used as a tool for international climate diplomacy, exempt Least Developed Countries and Small Island Developing States, and be based on carbon performance benchmarks for sectors including steel, cement, chemicals, and power.

The production of basic materials accounts for approximately 25% of global CO2 emissions and 16% of EU GHG emissions. While industry commitment to carbon neutrality by 2050 is growing, current innovation funds and carbon pricing are insufficient to make climate-friendly technologies commercially viable. The Climate Friendly Material Platform proposes a policy package including a 'Climate Contribution' as an alternative to Border Tax Adjustments, Carbon Contracts for Difference (CCFDS), Contracts for Difference for Renewables, Green Public Procurement (GPP), and Product Carbon Requirements to stimulate investment and prevent the relocation of production to regions with less stringent climate policies.

The document asserts that carbon border taxes must be contingent on the removal of free pollution permits under the EU ETS to avoid double-protecting industry and to provide a real incentive for emissions reductions. It argues that carbon leakage is not evidenced and that free allocations have historically functioned as subsidies. The author suggests that border measures should be temporary, non-protectionist, and complementary to global climate policies, while advocating for the use of enforceable environmental chapters in trade agreements to drive global ambition.

Cement production accounts for 5.6% of global CO2 emissions, split between thermal fuel combustion (30-40%) and limestone calcination process emissions (60-70%). The report highlights that concrete naturally re-absorbs CO2 through carbonation, sequestering roughly 48% of process emissions over several decades. To reach carbon neutrality by 2050, the author models scenarios suggesting that capturing 80% of process emissions is sufficient if electricity is decarbonized, or 53% if thermal fuels are also fully decarbonized. Mitigation strategies discussed include energy efficiency, clinker substitution (reducing clinker content to 60%), and novel technologies from CarbonCure and Solidia.

The production of basic materials, including cement, iron, steel, aluminium, and chemicals, accounted for approximately 25% of global CO2 emissions in 2014. The author contends that deep decarbonisation has been limited by a lack of knowledge regarding climate-friendly alternatives and a policy focus on carbon leakage risks. To overcome this, the brief identifies three primary policy gaps: incomplete incentives for recycling, a lack of short- and long-term markets for climate-friendly options, and missing signals regarding the phase-out of carbon-intensive production. Proposed solutions include green public procurement, project-based carbon contracts for difference (CfD), and a consumption charge on basic materials integrated into the EU ETS. The document emphasizes that the European materials sector is in a 'precarious limbo' where investment decisions over the next 10 to 15 years will determine whether assets are closed or transitioned to climate-friendly options.