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The research note analyzes California's consignment auctioning mechanism, where the government auctions free allowances on behalf of companies and returns the revenue to them. This hybrid approach is proposed as a solution for China's national ETS to enable price discovery and price collars while cushioning the economic impact on energy-intensive, trade-exposed sectors and bypassing institutional barriers regarding government revenue accounts.

The study concludes that the EU could achieve greenhouse gas reductions of -55% to -62% below 1990 levels by 2030 by scaling best practice policies from member states like Denmark and Germany. Key levers include a faster coal exit, increased electrical energy efficiency, deeper building renovations, and higher emissions standards for transport. Implementing these measures could reduce energy demand by nearly 45% below 2007 levels and increase renewable energy's share of total final energy demand to 45%, suggesting that political will, rather than technical capacity, is the primary barrier to more ambitious targets.

DSM CEO Feike Sijbesma advocates for the implementation of global carbon pricing to unlock private sector finance and innovation. He highlights the role of the Carbon Pricing Leadership Coalition (CPLC) in supporting companies with internal carbon pricing and urges business leaders to call for price levels that align with a well-below 2-degree world, specifically mentioning a target of at least $40 per ton.

The briefing advocates for shifting or supplementing production-based carbon pricing with consumption-based models to eliminate the need for free allowances and exemptions that mute price signals. It highlights that pricing at the point of final consumption can prevent carbon leakage in basic materials like steel and cement, incorporate emissions from imports, and provide sub-national governments with jurisdictional autonomy. The text proposes an evolutionary implementation path, starting with undifferentiated sector benchmarks and moving toward full life-cycle carbon accounting.

The report finds that while Korea has a massive overall bond market and strong climate policies, its climate bond market remains small with only six bonds issued by four entities. It identifies a potential USD 18bn in unlabelled climate-aligned bonds and suggests that Korea could lead the Asian region by adopting national guidelines, sovereign issuance, and tax incentives, drawing on successful models from China, India, and other ASEAN nations.

The report examines border carbon adjustments (BCAs) as a tool to prevent carbon leakage and incentivize climate ambition among trade partners. It analyzes past proposals in the EU and US, evaluates the legal constraints imposed by the WTO, and provides a comprehensive design framework. The authors recommend a BCA focused on imports of primary goods from energy-intensive sectors, utilizing global sectoral benchmarks for emissions and ensuring revenues benefit developing countries.

The report finds that the Western Climate Initiative (WCI) carbon market, comprising California, Quebec, and Ontario, is experiencing significant oversupply. This surplus, estimated at 270 million metric tons (MMT) through 2020, is driven by economic factors, renewable energy innovation, and the 2009 recession. Because allowances can be banked, this oversupply threatens to undermine the 2030 climate targets by effectively raising future emission caps. The author recommends that WCI jurisdictions adjust future caps downward by an amount equal to the privately held allowances banked by the end of 2020, citing the success of the Regional Greenhouse Gas Initiative (RGGI) in using a similar approach.

The Institute for Policy Integrity recommends that California's cap-and-trade program, extended by Assembly Bill 398, set its permit price ceiling at least as high as the social cost of carbon to properly incentivize emissions reductions. The organization also suggests that unsold allowances be preferentially allocated to the price containment reserve with the highest price to better account for the externalities of greenhouse gas emissions.

The European Court of Justice ruled that the European Commission cannot use the exception for protecting its decision-making process to withhold all documents related to an administrative procedure, particularly when those documents contain environmental information. In a case involving Saint-Gobain and free emission allowances under the EU emissions trading scheme, the Court found that only documents revealing the actual deliberations of decision-makers can be kept secret, while other documents must be disclosed. The ruling emphasizes a strict interpretation of transparency exceptions in line with the Aarhus Convention.

The policy brief argues that border carbon adjustments (BCAs) are a more effective tool for addressing emissions leakage than traditional 'behind the border' measures like free allowances. It outlines a specific six-step design process: determining scope and coverage, calculating embedded carbon, determining the adjustment level, deciding revenue use, establishing an expiration date, and ensuring a fair and transparent process. The authors recommend that BCAs focus on primary goods in high-carbon sectors, apply only to imports to avoid WTO subsidy issues, and exempt Least Developed Countries. Revenue generated should be used to support environmental objectives and benefit affected developing countries. The brief also notes that while BCAs have been proposed in the EU and US, they are rarely implemented.

The document assesses the current state of global carbon pricing, noting that most prices are below USD 10, far below the USD 40-100/tCO2 levels recommended by the High-Level Commission on Carbon Prices to meet Paris Agreement goals. It advocates for a 'climate policy portfolio' that combines carbon taxes or cap-and-trade systems with complementary measures to address non-price barriers and avoid 'waterbed effects' through price floors. The brief also calls for the abolition of counterproductive policies like fossil fuel subsidies and the use of carbon revenues to fund a just transition and fight energy poverty.

The report evaluates 12 major diversified miners across transition risks, physical risks, transition opportunities, and climate governance, finding that while operational emissions are improving and capital is flowing toward low-carbon commodities, significant risks persist from downstream regulation and water stress.

The Environmental Advisory Council calls for Latvia to advocate for higher 2030 EU emission reduction targets, a more accurate baseline for non-ETS sectors starting in 2017, and the reduction of compensation mechanisms to ensure the effectiveness of the Effort Sharing Decision (ESD).

The report critiques the 2010 Memorandum of Understanding (MOU) between California, Acre, and Chiapas, which aimed to link jurisdictional REDD+ programs to California's cap-and-trade system. It argues that these mechanisms prioritize market logic over structural climate causes, leading to land grabbing, the criminalization of traditional practices, and the marginalization of indigenous peoples. In Acre, the report identifies methodological flaws in emission accounting and failures in community-level projects. In Chiapas, it highlights the expropriation of territories for agrofuel monocultures and increasing public debt. The document concludes that REDD+ safeguards are largely rhetorical and recommends the exclusion of carbon markets and offsets from environmental policy.

The document examines how California's LCFS and Cap-and-Trade Program work together to reduce transportation emissions. The LCFS mandates a reduction in the carbon intensity of fuels, while Cap-and-Trade puts a price on carbon and generates revenue for clean technology investments. The author argues that neither policy is sufficient alone and recommends extending both to 2030 to provide the stability needed for long-term infrastructure and vehicle transitions.

The report analyzes the California-Quebec linked cap-and-trade program, finding that allowance supply has consistently exceeded emissions from 2013 to 2015, leading to periodic undersubscription at auctions. While recent low auction sales (11% in May 2016 and 18% in February 2017) are viewed as aberrations, the author argues that systemic oversupply persists. Prospective analysis suggests that 78-86% of remaining allowances will be needed for compliance through 2020, with auction demand likely averaging 71-81%. To improve stringency and revenue stability, the report recommends lowering caps, switching to annual compliance, increasing the price floor, and reducing free allowance allocations.

Carbon Market Watch argues that the European Parliament failed to strengthen the 'polluter pays principle' by rejecting a carbon border tax and free permit phase-out for the cement sector. While the Parliament decided to include shipping in the EU ETS and strengthen aviation rules, it voted to maintain a 2.2% annual emissions cap reduction rate rather than increasing it to 2.4%.

The report analyzes GHG mitigation in Azerbaijan, Kazakhstan, and Uzbekistan, finding that while these countries have high GHG intensity due to fossil fuel reliance, significant low-cost abatement is possible through energy efficiency and fuel switching. It proposes specific Nationally Appropriate Mitigation Actions (NAMAs) and investment concepts for each country to transition toward low-carbon growth.

The document examines the intersection of private sector activity and climate policy, highlighting the potential for a 'new industrial revolution' in green technology. It balances optimism regarding falling costs of renewables and new financial instruments with warnings about 'brown pillars' of the economy, market failures, and the risk of social dislocation similar to that seen during globalisation. The author argues for a public-private partnership where governments shape markets and provide social safety nets to ensure a just transition.

The statement warns that non-transparent land-use accounting in Nationally Determined Contributions (NDCs) can allow countries to meet targets while carbon pollution increases. It highlights specific examples in Russia and New Zealand and advocates for separating land-use credits from other sectors to ensure the 1.5°C target is met through essential decarbonisation.