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The paper argues that developing countries lack the financial sector capacity to fund the scale of investment required for low-carbon transitions. It distinguishes between 'commercially viable technologies' that need scaled-up investment and 'financially underserved technologies' that require de-risking. Proposed solutions include the creation of a Global Clean Investment Risk Mitigation Mechanism (GCI-RMM), the implementation of sustainable taxonomies and corporate disclosures, and the use of carbon pricing. The authors emphasize that multilateral cooperation is essential to harmonize these regulations and increase grant-based concessional finance to catalyze private investment.

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 report argues that expanding the CN ETS beyond the power sector to include iron and steel, aluminum, cement, chemicals, papermaking, and civil aviation is essential for China's decarbonization strategy. It identifies key obstacles including data collection challenges, industry concerns over international competitiveness (carbon leakage), and bureaucratic inertia. To address these, the authors recommend implementing a price collar to limit economic risk, simplifying allocation benchmarks to one per unique product to reduce information burdens, and highlighting the economic advantages of clean tech innovation. The report also uses green hydrogen as a case study to illustrate how CN ETS expansion can enhance the global competitiveness of Chinese enterprises.

The ENVI rapporteur's draft report proposes a more ambitious and accelerated implementation of the CBAM compared to the European Commission's plan. Key points of divergence include a shorter transition period, expanded product coverage to include plastics and hydrogen, the inclusion of indirect emissions, and a commitment to provide development assistance to least-developed countries equal to the revenues raised by the CBAM.

The EU ETS is a 'cap and trade' system covering power, industry, and aviation across the EU and several other European nations. While it has successfully reduced emissions in the power sector, the document argues that free allocation of permits has led to stagnant industrial emissions and significant windfall profits for companies. The guide details the role of the Market Stability Reserve in managing oversupply and discusses the proposed Carbon Border Adjustment Mechanism as a potential replacement for carbon leakage protections.

The author contends that the proposed ETS2 for buildings and road transport risks exacerbating energy poverty and failing to drive decarbonization unless it is accompanied by complementary policies to remove renovation barriers and a reform of the current ETS to eliminate free allowances for heavy industry.

Carbon Market Watch contends that the EU's 'Fit for 55' package lacks the urgency required for the climate crisis. The authors argue for increasing the 2030 emissions reduction target to 65% and advancing the carbon neutrality goal to 2040. While welcoming the inclusion of shipping in the Emissions Trading System (ETS) and the proposed Carbon Border Adjustment Mechanism (CBAM), the document criticises the continued use of free allowances and the lack of exemptions for low-income countries within the CBAM framework.

The document analyzes the EU's Carbon Border Adjustment Mechanism (CBAM) as a shift in climate policy toward trade and economic levers. It highlights the growth of carbon pricing globally, including the EU ETS and China's national ETS, and suggests that COP26 should be used to establish a 'green window' for preferential treatment of green goods and a mechanism to allocate CBAM revenues to vulnerable countries to ensure a just transition.

The report examines framework climate laws in the UK, France, Mexico, Finland, Sweden, and Victoria (Australia), concluding that while such laws provide a critical political signal and a structured pathway for decarbonisation, most have struggled with implementation. Key failures include a lack of binding interim targets, overcomplexity in governance, and insufficient accountability mechanisms. The report recommends that future laws impose clear, enforceable duties on high-level government decision-makers, integrate independent scientific advisory bodies, and combine long-term goals with frequent short-term progress reporting to avoid 'paper tiger' legislation.

The briefing proposes a coal tax for Indonesia to address the environmental and health costs of coal, which accounts for 40% of the energy sector's carbon emissions. Drawing on India's experience with a coal 'cess', the authors suggest a tax of IDR 78,700 (USD 5.50) per tonne, which could generate IDR 49 trillion (USD 3.6 billion) annually. This revenue could fund a just transition, compensate vulnerable households for rising electricity prices, and incentivize clean energy investment. The document notes that while Indonesia is considering an emissions trading scheme (ETS) and a carbon tax, these take longer to implement, making a targeted coal tax a more immediate and administratively simpler solution.

The report examines the implementation of a border carbon adjustment (BCA) in Canada to mitigate 'leakage'—where emissions-intensive and trade-exposed (EITE) sectors relocate or are undercut by foreign competitors with lower carbon costs. It proposes two primary design paths: a regulation-based BCA extending the existing output-based pricing system (OBPS) or a tax-based BCA accompanying a full carbon tax. The authors identify 11 high-risk product categories, including bitumen and synthetic crude oil, which represent 34% of Canada's GHG emissions. The report analyzes the EU's Carbon Border Adjustment Mechanism (CBAM) and the U.S. approach, noting that while the U.S. lacks a national carbon price, it may use low-carbon standards or Section 232 tariffs. Key recommendations include coordinating with the EU and U.S. to harmonize benchmarks and ensuring the system is 'future-proofed' to accommodate a transition from the OBPS to full carbon pricing.

The authors argue that uncertainty regarding the future of Canada's carbon price—scheduled to reach $170 per tonne by 2030—discourages firms from investing in expensive, long-lived low-carbon projects. To close this 'certainty gap,' they propose that the Canada Infrastructure Bank (CIB) act as a partner to share risk, effectively providing insurance against policy reversals. This could be achieved through payment exchanges based on actual versus expected policy costs or by making loan payback obligations conditional on future policy stringency. The authors contend this approach is superior to grants or subsidies because it targets the specific market failure of government risk and creates a financial deterrent for future governments that might seek to weaken carbon pricing.

Analysis of 2017 and 2018 model year non-luxury used electric vehicles (EVs) in California shows that they deliver total ownership savings of $1,100 and $500 respectively over a 5.5-year period compared to similar gas cars. While EVs carry a purchase price premium, this is offset by lower fuel and maintenance costs. The report highlights that targeted incentives, such as the Clean Cars 4 All program's maximum $9,500 rebate, can reduce total ownership costs by nearly 40% for lower-income households. The author recommends expanded EV financing, electricity rate reductions using cap-and-trade revenue, and increased support for charging infrastructure in multi-unit dwellings to ensure an equitable transition.

The document advocates for a global carbon price on shipping to drive decarbonisation, suggesting that such a measure must avoid offsets and free permits while using revenues to fund green infrastructure and support vulnerable nations through rebates rather than exemptions.

The report examines the economic advantages of aggressive decarbonization in China, highlighting that solar and wind power have become more cost-competitive than coal. It argues that a faster transition to clean energy will enhance China's global export position in solar PV and electric vehicles, reduce stranded asset risks associated with coal, and provide significant co-benefits in air quality and energy security. The authors advocate for peaking emissions by 2025 and implementing a combination of carbon pricing, performance standards, and green finance to ensure a high-quality economic transition.

Colombia has committed to reducing GHG emissions by 51% by 2030 and reaching carbon neutrality by 2050. While the government has developed a robust legal framework for climate mitigation and adaptation, the report finds a critical gap in Just Transition planning. Massive layoffs are already occurring in the thermal coal sector due to falling international prices and the shift toward renewables, yet the government has not implemented specific policy responses to support affected workers. Similarly, conservation efforts in the AFOLU sector, particularly the expansion of protected areas and páramo ecosystems, threaten the livelihoods of informal rural workers and ethnic communities. The report concludes that Colombia's Monitoring, Reporting, and Verification (MRV) system lacks the capacity to track social welfare and employment impacts, and recommends urgent, regionally differentiated strategies for economic diversification and worker retraining.

The document details the 'externalities' of fossil fuels—costs not reflected in market prices—across climate, environmental, and health dimensions. It highlights significant U.S. impacts, including $606.9 billion in extreme weather costs (2016-2020) and 350,000 premature deaths in 2018. It also emphasizes the disproportionate burden on communities of color and low-income areas, such as 'Cancer Alley' in Louisiana. Proposed policy solutions include eliminating subsidies, increasing the social cost of carbon, implementing a federal clean electricity standard, and establishing carbon pricing.

The report provides a comprehensive overview of energy transition progress in Brazil, Germany, Indonesia, Japan, Mexico, Pakistan, Philippines, Poland, South Africa, South Korea, Turkey, and Vietnam. It highlights the role of independent think tanks in driving policy breakthroughs, such as coal phase-outs and renewable energy targets, while identifying systemic barriers including political resistance, grid limitations, and financing gaps. The document argues that while technology strategies (renewables and electrification) are converging, national implementation is shaped by distinct local political and social factors.

The document assesses China's transition toward a comprehensive 'one-permit' governance system for stationary pollution sources, analyzing the legal framework, implementation challenges at the local level, and the role of the Ministry of Ecology and Environment (MEE). It highlights gaps in the current system, such as the exclusion of noise and solid waste from the primary permitting regime and a lack of specific legal liabilities for permit violations. The report compares China's approach with the EU's Industrial Emissions Directive (IED), emphasizing the use of Best Available Techniques (BAT) and risk-based inspection strategies to improve environmental quality.

The author contends that because a link between the EU carbon market and the UK is now impossible after Brexit, the UK should adopt a carbon tax on January 1st. This is presented as a superior alternative to a 'risky and highly complex' UK-only Emissions Trading System, providing necessary certainty for businesses and investors.