Search Climate Insights Directory

The EU's Carbon Border Adjustment Mechanism (CBAM) is designed to prevent carbon leakage and encourage global decarbonisation by imposing levies on high-emitting imports. While facing criticism from BRICS nations as a protectionist barrier, the CBAM's design allows for the deduction of carbon prices already paid in the country of origin. This has led several countries, including India, China, Brazil, and Vietnam, to strategically develop or expand domestic carbon markets or taxes to ensure that carbon revenues are retained domestically rather than paid to the EU. Modelling indicates that if domestic prices reach 50% of the EU's price, countries like India could retain EUR 676 million annually.

The document argues that Europe must shift from a research-centric approach to a comprehensive industrial strategy for fusion energy to avoid falling behind global competitors like the US, UK, China, and Japan. It recommends that the EU's first Fusion Strategy prioritise private sector-led net energy fusion demonstration plants by the 2030s and adopt a Key Enabling Technology (KET)-based roadmap to align public funding with commercially relevant R&D. The authors propose streamlining governance by expanding the role of the Fusion for Energy (F4E) Joint Undertaking as the singular public governance body and establishing a cohesive Public-Private Partnership (PPP) programme to remove financing barriers for start-ups. Additionally, the letter calls for the explicit recognition of fusion as a strategic clean technology in EU legislation, including the Green Taxonomy and the Net Zero Industry Act, and the creation of a regulatory framework that distinguishes fusion from fission.

The report argues that smart grids are essential for ASEAN to integrate rapidly growing solar and wind capacity while supporting industrial growth. It estimates that an investment of $4 billion to $10.7 billion is needed to modernize power systems, which could potentially unlock $2.3 billion in annual economic value by 2040 and create between 243,000 and 649,000 jobs. The document highlights the need for regional cooperation to harmonize grid codes and mobilize green finance to overcome current fragmented standards and financing gaps.

The document defines essential carbon market terminology, including the distinction between cap-and-trade and compliance markets, the mechanics of carbon credits and budgets, and specific regulatory frameworks like the EU's CBAM and the ICAO's CORSIA.

The IISD supports Manitoba's 'Path to Net Zero' plan as a framework for a low-carbon economy, praising the creation of a Climate Change Committee of Cabinet and the focus on Indigenous partnerships. However, the IISD emphasizes the need for detailed implementation plans and warns that carbon capture and storage (CCS) may be an expensive alternative to other emissions reduction opportunities.

The analysis argues that Canadian industrial carbon markets are inefficient due to overly generous performance standards, inconsistent application of rules, restrictions on credit use, the exclusion of smaller emitters, and the use of revenues to offset price signals. These factors lead to credit oversupply and price crashes, particularly in Alberta, British Columbia, and Ontario, reducing the incentive for industries to decarbonize.

The analysis identifies five critical design choices in Canadian industrial carbon markets that undermine their effectiveness: overly generous performance standards, uneven playing fields for facilities, strict limits on credit use, allowing 'opt-in' facilities to exit markets, and using revenues to offset price signals. These flaws have led to credit price crashes in provinces like Alberta and reduced the overall incentive for industries to decarbonize.

Brazil has become a top global oil producer due to pre-salt reserves, with production expected to peak at 5.3-5.4 mbd by 2029-30. While the sector is cost-competitive and the national economy has limited overall dependence on oil revenues, specific regions like Rio de Janeiro are highly vulnerable. The document argues that Brazil can leverage its renewable energy potential and critical minerals to diversify its economy into low-carbon fuels, provided it improves technological innovation and coordinates Petrobras' investments with national industrial policy.

The document examines Namibia's transition toward becoming an oil exporter, highlighting the gap between government growth targets and industry realities. While significant offshore discoveries have been made, the report warns that relying on fossil fuels may divert resources from sustainable development and renewable energy, especially as global demand declines and technical challenges persist.

The report examines 'coal transition credits' as a financial tool for early coal plant closure in Southeast Asia. It finds significant expert skepticism, with only 2 out of 10 experts viewing them as effective. Major risks identified include carbon leakage, baseline inflation, and 'perverse incentives' that may reward polluters. The document concludes that CTCs are not a reliable exit strategy and emphasizes the need for systemic public policy and funding over market-based offsets.

The document analyzes the first year of the Prabowo-Gibran administration, claiming a return to 'New Order' style governance. It highlights the centralization of economic power through the Danantara sovereign wealth fund, the expansion of the military's role in civilian bureaucracy and national development projects, and a surge in the criminalization of activists and protesters. The report argues that the administration prioritizes extractive industries and the interests of political loyalists and oligarchs over public welfare and democratic principles.

The document examines the intersection of green technology and youth employment in Nigeria, Kenya, and Ghana. It finds that while these countries have established frameworks for clean energy, e-mobility, and climate-smart agriculture, there is a persistent lack of coherence between climate policies and youth employment strategies. The analysis highlights that youth are often excluded from policy-making and that interministerial cooperation is inadequate, hindering the potential for green tech to address high youth unemployment and NEET rates in sub-Saharan Africa.

The report examines Nigeria's potential to leverage its critical mineral deposits—including lithium, cobalt, and copper—to drive economic diversification and meet climate goals. It identifies significant gaps in exploration funding, processing infrastructure, and regulatory frameworks, while highlighting the risk of over-dependence on foreign investors like China. The document recommends a comprehensive national strategy, increased investment in geological mapping, and the development of domestic value-addition capabilities to move beyond the export of raw materials.

The report outlines the design of a proposed Country Platform for Nigeria's energy transition, arguing that the framework must be state-owned, politically anchored, and integrated with national development goals rather than being a donor-driven replica of other JETPs. It identifies critical needs for high-level presidential leadership, vertical coordination with oil-producing states, and the resolution of institutional bottlenecks that hinder the disbursement of climate finance. The proposed platform emphasizes a 'people-centred transition' that prioritizes job creation, energy access, and social protection for displaced workers, while strategically navigating global geopolitical pressures such as the EU's Carbon Border Adjustment Mechanism.

The EU has introduced Clean Trade and Investment Partnerships (CTIPs) to diversify supply chains and foster clean energy cooperation, starting with South Africa. To be effective, CTIPs must move beyond existing frameworks by providing predictable demand, mobilising private finance through innovative instruments, and ensuring transparent, coordinated governance to avoid being perceived as mere compliance tools.

The document asserts that blackouts are predominantly caused by infrastructure failure, human error, and extreme weather, rather than the deployment of variable renewables. It highlights a significant investment gap in electricity grids, noting that while renewable energy investment has more than doubled since 2015, grid investment has only grown by 24%. The briefing argues that modernising grids with storage, interconnections, and decentralised generation can enhance adequacy, operational security, and resilience, including 'black start' capabilities. However, the IEA warns that grids risk becoming the "weak link" in the energy transition due to underinvestment in ageing assets and the inability to keep pace with rising global electricity demand.

The Net Zero Stocktake 2025 finds that while the number of net zero targets continues to rise across companies, cities, and regions, the integrity of these commitments remains low. As of September 2025, 1,935 entities have targets, including 137 national governments and 63% of the Forbes Global 2000. However, only a small fraction of companies, regions, and cities meet all minimum integrity requirements. The report also highlights a gap in planning, with nearly one-third of Forbes Global 2000 companies lacking a clear roadmap, and expresses concern over the lack of dedicated targets for nature-based carbon removals.

Based on workshops in Utah and Colorado, RMI identifies sustainable aviation fuel (SAF) as the primary near-term solution for decarbonizing aviation, while hydrogen and electric propulsion require long-term infrastructure planning. The report highlights that airports are structurally limited in leading this transition because they do not control fuel demand or aircraft certification. Key recommendations include investing in pilot programs, developing long-term master plans for new propulsion technologies, and forming regional airport coalitions to share risks. A preliminary analysis suggests that regional routes under 1,000 nautical miles with aircraft under 90 seats are the most viable early candidates for hydrogen transition.

The Canadian Climate Institute calls for urgent federal action to address climate threats to health, security, and economic competitiveness. The organization proposes six policy priorities: modernizing industrial carbon pricing, enacting the Clean Electricity Investment Tax Credit, maintaining the Electric Vehicle Availability Standard, finalizing oil and gas methane regulations, establishing a climate investment taxonomy, and applying resilience criteria for federally supported housing.

The policy brief analyzes a June 2025 non-paper from 16 EU member states seeking reforms to the ETS2, the emissions trading system for buildings and road transport. The authors argue that while some suggestions—such as publishing more data and starting auctions early—are low-risk, proposals to modify the MSR2 trigger mechanisms, extend its lifetime beyond 2031, or strengthen price controls would increase the total volume of allowances in the market. Because MSR2 allowances are already additional to the emissions cap, the brief contends that these reforms would lead to higher greenhouse gas emissions, weaken the investment signal for decarbonization, and potentially jeopardize the EU's overall climate goals.