Search Climate Insights Directory
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New Market-based Mechanisms post-2012: Institutional Options and Governance Challenges when Establishing a Sectoral Crediting Mechanism
The document analyzes the transition from project-based mechanisms like the Clean Development Mechanism (CDM) to sectoral-scale mechanisms. It evaluates three governance models for a Sectoral Crediting Mechanism (SCM): centralized (UN-led), hybrid (bilateral with UN minimum standards), and decentralized (independent of the UN). The authors argue that while decentralized models offer flexibility, they risk undermining environmental integrity and market credibility. The paper proposes a centralized SCM project cycle that improves upon the CDM by introducing more interactive baseline reviews, professionalizing the regulatory body, and utilizing biennial update reports for better verification.
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Document type: Research paper
For EPA Regulations, Cost Predictions Are Overstated
The document asserts that environmental regulations in the United States generally cost far less than predicted by industry and the EPA, while providing substantial economic and public health benefits. It challenges claims that such regulations cause widespread job losses or force firms to relocate to 'pollution havens,' citing data that environmental spending creates jobs and that actual compliance costs are often lowered by technological innovation.
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Document type: Fact sheet
Response to EEI’s Timeline of Environmental Regulations
The World Resources Institute (WRI) challenges a timeline produced by the Edison Electric Institute (EEI), asserting that the EPA is pursuing a realistic regulatory schedule for the electric power sector. WRI contends that many items on the EEI timeline are procedural or existing obligations rather than new requirements. The document highlights significant 'regulatory lag time,' noting that the industry has had years or decades of notice for most pollutants. It emphasizes that finalizing these rules under the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act is essential for public health and provides the investment certainty needed for a 21st-century power fleet.
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Document type: Fact sheet
U.S. Government Policymaking on Climate Change
The briefing analyzes the shift in U.S. climate policy from a focus on national cap-and-trade legislation toward regulatory agency actions, subnational initiatives, clean-tech funding, and international trade issues. It argues that while a national mandatory system is unlikely in the short term, climate action is diversifying across administrative, local, and trade-related channels.
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Document type: Briefing
University Data Centres: Policy and business case for reducing greenhouse gas emissions
The study examines three scenarios for greening data centres at Dalhousie University, the University of Ottawa, and the University of Alberta. It finds that relocating to remote renewable sites (Scenario 1) or urban low-emission grids (Scenario 2) is economically unviable due to high capital costs. Only on-site waste heat recovery (Scenario 3) showed a positive net present value for one institution. The report suggests a 'green community cloud' managed by CANARIE as a more viable alternative to individual university efforts.
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Document type: Report
The Most Expensive Thing California Can Do Is Nothing
A group of economists argues that California's clean energy policies, specifically AB 32, provide economic benefits through innovation, job creation, and reduced health costs, and that delaying these actions during an economic recession would be more costly than proceeding.
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Document type: Statement
White Paper Issues and Options for Benchmarking Industrial GHG Emissions
The report examines the methodology for constructing industrial GHG benchmarks, focusing on the trade-offs between sector-wide and product-specific aggregation, the inclusion of indirect emissions, and the selection of benchmark ambition. It analyzes specific sectors present in Washington—including aluminum, cement, chemicals, food processing, glass, pulp and paper, and steel—and evaluates data sources, noting that mandatory reporting rules are the most promising but that a broader geographic cohort beyond Washington is necessary for robust benchmarks. The document concludes by proposing paths for the Washington State Department of Ecology to implement these benchmarks depending on the ultimate policy context.
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Document type: Report
Clean Energy and Climate Action: A North American collaboration
The North American climate policy landscape is marked by political uncertainty, with a strong reliance on U.S. legislative developments to shape Canadian policy dynamics. While regional initiatives in places like California and British Columbia drive progress, the lack of a federal price on carbon and the compartmentalization of policy-making hinder bilateral collaboration. The discussion highlighted the American Power Act (APA) as a potential framework, though its passage in 2010 faced significant hurdles due to the Gulf of Mexico oil spill, competing legislative priorities, and upcoming mid-term elections. Experts emphasized that a 'wait-and-see' approach is insufficient and that long-term success requires balancing supply-side and demand-side policies alongside clear market signals for the private sector.
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Document type: Briefing
Clean Energy and Climate Action: A North American Collaboration
The report outlines the results of expert dialogues held between 2009 and 2010 focused on North American energy and climate collaboration. It highlights a period of significant political uncertainty, particularly regarding U.S. federal legislation, and argues that Canada and Mexico must engage actively in policy discussions to avoid becoming "policy takers." Key areas for cooperation include carbon pricing, renewable energy investment, carbon capture and storage (CCS), and transportation fuel standards. The document emphasizes that while a unified "North American Bubble" for emissions targets is unlikely, pragmatic, sector-specific coordination and the harmonization of technical standards offer viable paths forward in the absence of a continental regulatory framework.
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Document type: Report
The Emerging International Climate Change Regime
The report analyzes how the Canadian agricultural sector can contribute to greenhouse gas reductions and the economic implications of emerging climate policies. It highlights the potential for carbon sequestration in soils and the role of bioenergy, while discussing the complexities of implementing a national cap-and-trade system. Key concerns include the integrity of agricultural offsets, the risk of carbon reversal, and the impact of international trade rules and U.S. policy alignment on Canadian competitiveness.
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Document type: Report
Americans Support Strong Climate Energy Policies
The report finds that a large majority of Americans, across political affiliations, support federal climate and energy policies such as renewable energy research and carbon dioxide regulation, even as general concern about global warming has declined. While support for cap-and-trade is sensitive to cost increases, it increases significantly if households receive offsets to cover higher energy costs.
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Document type: Executive summary
OVERVIEW OF COMPETITIVENESS ISSUES IN THE MIDWEST
The report analyzes how carbon pricing may affect the US Midwest, a region characterized by high carbon intensity due to coal dependency and a large manufacturing base. While carbon pricing could increase short-term costs for energy-intensive industries, the report argues it presents a long-term opportunity for the region to lead in low-carbon production and 'green collar' jobs. It highlights the Midwest's significant mitigation potential and the role of the Midwestern Greenhouse Gas Accord in driving this transition.
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Document type: Report
Estimates of Future Supply of International Greenhouse Gas Offsets: A Critical Review
The report finds that projections for international greenhouse gas offset supply vary by billions of tons annually, with marginal abatement curve (MAC) based estimates being highly optimistic compared to those based on historical market trends. While gross supply is expected to exceed U.S. demand by 2020, net availability will be constrained by competition from other nations, developing countries' own mitigation commitments, and significant uncertainties in program design and market infrastructure.
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Document type: Report
GHG_FinalSummary.indd
The World Resources Institute analysis finds that while existing federal and state tools can significantly reduce greenhouse gas emissions, even the most ambitious 'Go-Getter' scenario falls short of the U.S. Copenhagen pledge to reduce emissions 17 percent below 2005 levels by 2020. The report models three levels of regulatory ambition—Lackluster, Middle-of-the-Road, and Go-Getter—across key sectors including power plants, transportation, and industry. It concludes that additional legislative action is necessary to meet international climate targets and the long-term goal of 80 to 95 percent reductions by 2050.
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Document type: Report
Coal-fired Congress Blocks Path to Clean Energy
The author contends that 'grandfathering' existing coal-fired power plants in climate legislation would repeat past mistakes by incentivizing the continued operation of polluting facilities. The text argues that the Clean Air Act's regulatory powers are essential and complementary to a cap-and-trade system to ensure rapid emissions reductions and the growth of a clean energy economy.
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Document type: Statement
Linking National Cap-and-Trade Systems in North America
The paper analyzes the technical and political requirements for linking cap-and-trade systems in North America, specifically focusing on the U.S., Canada, and Mexico. It argues that while linking reduces overall carbon costs and GDP impacts, it may not significantly mitigate production leakage. The authors identify critical design elements requiring harmonization—such as cap type, offset limits, and enforcement quality—and conclude that divergent national interests make a fully integrated system unlikely, with a minimal U.S.-Canada link and a more significant U.S.-Mexico link being the most probable outcome.
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Document type: Research paper
Ten (plus one) insights from the EU Emissions Trading Scheme
The report examines the EU ETS, concluding that while it successfully reduced emissions and had minimal macroeconomic impact, it faced challenges with price volatility and windfall profits due to free allocation. It argues that competitiveness risks are concentrated in a few carbon-intensive sectors and recommends maximizing auctioning and pursuing multilateral agreements for border adjustments to minimize economic distortions.
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Document type: Report
10 (+ 1) INSIGHTS FROM THE EU EMISSIONS TRADING SCHEME
The document outlines ten key insights from the EU Emissions Trading System (EU ETS), arguing that while the system is effective at reducing emissions and has a minimal impact on GDP, its design—particularly regarding allowance allocation and carbon leakage—requires careful calibration to avoid economic inefficiencies and 'windfall profits'. It recommends a phased approach to system improvement and a gradual shift toward auctioning allowances to maximize economic rationality and fund low-carbon innovation.
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Document type: Report
Climate Change and Its Socioeconomic Importance
The document examines climate change as a global challenge characterized by scientific uncertainty and long-term impacts. It frames the issue as a 'market failure' resulting from negative externalities, where the costs of greenhouse gas emissions are not internalized. The authors discuss the economic costs of mitigation versus inaction, the ethical implications of discount rates and inter-generational equity, and the potential for 'carbon leakage' in international trade. It emphasizes the necessity of combining mitigation and adaptation strategies, the critical role of R&D and technology transfer to developing nations, and the importance of international agreements like the Kyoto Protocol and the 2009 Copenhagen Summit (CoP 15).
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Document type: Research paper
The Montreal Protocol and Its Implications for Climate Change
The Montreal Protocol successfully phased out the production of ozone-depleting substances (ODSs), but failed to address the global warming potential of existing ODS banks and the rapid growth of hydrofluorocarbon (HFC) substitutes. ODS banks, if not controlled, risk releasing significant greenhouse gases, while HFC emissions are projected to increase substantially by 2050, particularly in developing countries. The document examines policy options such as the American Clean Energy and Security Act of 2009, producer responsibility programs in other developed nations, and proposals to expand the Montreal Protocol's mandate to include HFCs.
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Document type: Briefing