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The report examines the economic and environmental impacts of carbon pricing on industrial competitiveness and the risk of carbon leakage, where emissions shift to jurisdictions with less stringent policies. It analyzes six policy options—border taxes, mandatory allowance purchases, embedded carbon product standards, aid to industry, free allowances, and sectoral approaches—concluding that while border carbon adjustments (BCAs) are theoretically more effective at reducing leakage in specific sectors, they face significant technical, administrative, and WTO legal challenges. The document emphasizes that only a small fraction of GDP (typically less than 1%) is truly at risk, primarily in energy-intensive, trade-exposed sectors like cement, steel, and aluminum.

The document examines border carbon adjustments (BCAs) as a tool for OECD countries to protect domestic industries from 'unregulated' foreign competition and prevent carbon leakage. It identifies trade-exposed energy-intensive sectors—such as iron, steel, and chemicals—as the most vulnerable. The analysis highlights significant WTO legal hurdles, including national treatment and most-favoured-nation obligations, and suggests that any legal BCA would likely require a firm-by-firm carbon footprint calculation and prior attempts at multilateral agreement. Administratively, the author notes the difficulty of establishing a common metric to compare diverse climate policies and the risk of 'punishing domestic manufacturers' if only basic raw materials are covered. Geopolitically, the document argues that BCAs may conflict with the UNFCCC principle of 'common but differentiated responsibility' and could provoke 'vitriolic' reactions from developing countries, potentially hindering international climate negotiations.

The report argues that stabilizing atmospheric CO2 at 350 ppm is economically feasible, with estimated costs ranging from 1% to 3% of global GDP per year. It challenges 'go slow' economic recommendations, specifically critiquing the DICE model's default assumptions, and suggests that the costs of inaction far outweigh the costs of rapid mitigation. The authors emphasize that achieving this target requires a comprehensive global transition to carbon-free energy and the implementation of negative emissions technologies, such as large-scale reforestation and biomass energy with carbon capture and storage (CCS).

Friends of the Earth criticizes the Kerry-Boxer draft climate bill for failing to meet scientific requirements for emissions reductions and for including unreliable offsets and subsidies for 'dirty energy' technologies.

The document analyzes how a U.S. federal cap-and-trade system can address 'early action'—emissions reductions occurring before the program's start. It argues that awarding credits from 'under the cap' preserves environmental integrity, whereas credits 'above the cap' risk inflating permissible emissions. The paper details the challenges of verifying reductions for voluntary direct, indirect, and offset actors, particularly regarding additionality and leakage. It also proposes mechanisms for transitioning existing regional programs, such as the Regional Greenhouse Gas Initiative (RGGI), into a federal system using dollar-for-dollar allowance exchanges to prevent price volatility.

The document defines carbon pricing as a market-based strategy to internalize the costs of climate impacts, driving a shift toward a clean energy economy. It details two primary mechanisms: cap-and-trade, which limits total emissions through tradable allowances, and carbon taxes, which set a fixed fee per ton of carbon. The text emphasizes that while both can effectively reduce emissions, they require complementary policies and careful design to address equity concerns, such as the regressive impact on low-income households and the economic transition for fossil-fuel-dependent communities. It highlights existing examples like the EU-ETS and RGGI, and suggests that revenues from these programs can be used for rebates, clean energy investment, or deficit reduction.

The Climate Strategies Research Prospectus 2009 details a comprehensive program of academic research designed to support government decision-makers. The work is organized into three primary themes: industrialised country commitments and global market mechanisms (including carbon leakage and emissions trading system linkages), global engagement, technology and finance (focusing on the UNFCCC's Reformed Financial Mechanism and technology innovation centres), and industry-specific sectoral approaches (specifically the steel and maritime sectors). The organization operates as a not-for-profit network, convening international experts to provide independent, fact-based assessments for policy formation, with a particular emphasis on the European Union, North America, and the Asia-Pacific region.

The document examines the transition from fragmented regional carbon markets to a global architecture, analyzing the risks of market manipulation, environmental integrity failures, and the technical challenges of linking different systems. It proposes a framework of institutional functions—ranging from decentralized cooperation to centralized oversight—to manage price volatility, ensure robust monitoring, reporting, and verification (MRV), and regulate financial derivatives to prevent excessive speculation.

The report projects that Illinois will face significantly hotter summers, increased flash flooding, and severe threats to agriculture if heat-trapping emissions continue to rise. Under a higher-emissions scenario, Chicago could see more than 70 days above 90°F per summer by the end of the century, and corn yields could decline by as much as 50% by mid-century. The document advocates for a transition to clean energy, including renewable electricity standards and a moratorium on new coal plants, alongside federal cap-and-trade legislation to mitigate these risks.

The report projects that Iowa will face significantly hotter summers, increased flooding in winter and spring, and new threats to agriculture due to climate change. Under a higher-emissions scenario, Des Moines could see over 85 days per summer above 90°F and frequent heat waves similar to the 1995 Chicago disaster. Agriculture is threatened by heat stress for corn and livestock, as well as the northward expansion of pests like the corn earworm. The document argues that Iowa can mitigate these risks by strengthening its renewable electricity standard, promoting energy efficiency, and banning coal plants without carbon capture and storage, supported by federal cap-and-trade and fuel economy standards.

The report projects that Michigan will face significantly hotter summers, increased flooding, and agricultural disruptions by the end of the century, particularly under a higher-emissions scenario. It highlights risks to public health from extreme heat and ozone pollution, as well as threats to the state's dairy and corn industries. To mitigate these effects, the document advocates for strengthening renewable energy standards, updating building codes, and implementing federal cap-and-trade and fuel economy policies.

The report projects that Minnesota will face significantly hotter summers, increased flooding, and agricultural threats if current emissions trends continue. Under a high-emissions scenario, the state could see a 12°F increase in average summer temperatures by the end of the century, with Minneapolis-St. Paul experiencing nearly 70 days over 90°F per summer. These changes are expected to increase heat-related mortality, worsen air quality through higher ozone and particulate levels, and disrupt farming via heat stress and pest expansion. The document advocates for a transition to renewable energy, increased energy efficiency, and a federal cap-and-trade program to mitigate these risks.

The report projects that Missouri will face significantly hotter summers, increased flooding, and agricultural disruptions if heat-trapping emissions continue to rise. It highlights severe risks for St. Louis, including extreme heat waves and deteriorating air quality, and suggests a combination of state-level energy efficiency and federal climate legislation to mitigate these effects.

The report projects that Ohio will face significantly hotter summers, increased flooding, and agricultural disruptions if current emissions trends continue. It highlights severe risks to public health from heat waves and ozone pollution, and warns of crop and livestock stress. The document advocates for a transition to clean energy through stronger renewable electricity standards, updated building codes, and federal cap-and-trade legislation.

The report projects that Wisconsin will face significantly hotter summers, increased flooding, and agricultural disruptions if current emissions trends continue. Under a high-emissions scenario, Milwaukee could see more than 55 days per summer over 90°F by the end of the century. The document advocates for a transition to clean energy through renewable electricity standards, energy efficiency, and federal cap-and-trade policies to mitigate these risks.

The American Clean Energy and Security Act of 2009 (ACES) proposes a cap-and-trade system to reduce US greenhouse gas emissions to 17% below 2005 levels by 2020 and 83% by 2050. While power plants and fossil fuel producers are capped, bioenergy from renewable biomass is exempt, and agriculture and forestry sectors can generate carbon offsets. The bill introduces a combined Efficiency and Renewable Electricity Standard requiring 20% renewable energy by 2021, expands the definition of renewable biomass for the Renewable Fuels Standard, and authorizes funding for woodstove replacements, the National Bioenergy Partnership, and strategic tree-planting.

The report analyzes energy-related greenhouse gas (GHG) mitigation potentials for six major developing countries through 2030. It projects that baseline energy-sector emissions for these nations could double to approximately 17 metric gigatons of CO2 equivalent by 2030, representing over 40% of global energy-related GHG emissions. The study identifies high-potential mitigation options across four sectors: electricity production, transportation, buildings and appliances, and industry. Common high-potential strategies across all six countries include renewable energy development, vehicle efficiency standards, and the enforcement of building and appliance energy codes. The report emphasizes that while many low-cost options exist, significant barriers remain, including high up-front capital costs, limited technical capacity, and the need for international technology transfer.

The report claims Shell is the most carbon-intensive oil company globally, with its production intensity projected to rise by 85% due to a shift toward oil sands, oil shale, and liquefied natural gas (LNG). It documents a history of gas flaring in Nigeria, alleging that internal documents show Shell prioritized profit over ending the practice. The report further asserts that Shell engages in 'greenwashing' by promoting limited renewable initiatives while lobbying against fuel quality directives and emissions trading reforms in the European Union and climate legislation in the United States.

AB 32 mandates that California reduce its global warming pollution to 1990 levels by 2020 and further to 80 percent below 1990 levels by 2050. The law establishes a mandatory reporting system for large emitters and directs the California Air Resources Board (CARB) to implement a combination of regulations and a market-based cap-and-trade program to achieve these targets.

The report compares the climate change strategies of India, Brazil, China, Mexico, and South Africa, detailing their objectives, development processes, emission scenarios, and specific mitigation and adaptation interventions. It observes that while these plans identify national priorities and visions, they often lack concrete implementation procedures and specific action-steps, particularly regarding adaptation.