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Fragen der Industrie- und Handelspolitik für Afrika (EN)
The document examines the intersection of industrial and trade policy with the green transition in Africa. It argues that for the continent to avoid becoming a 'net loser' in the shift to a low-carbon economy, it must move toward higher value-added production of green technologies rather than remaining an exporter of primary products. The author highlights the African Continental Free Trade Area (AfCFTA) as a key mechanism for establishing regional value chains for renewable energy products. The paper also emphasizes the need for 'policy space' to protect nascent industries, warning against premature trade liberalization and unilateral 'border adjustment taxes' from developed nations. Additionally, it stresses the urgency of 'climate proofing' infrastructure to create jobs and mitigate the inevitable extreme weather events predicted by the IPCC. Finally, the paper calls for African nations to advocate for a Global Green New Deal that respects the right of developing countries to industrialize and includes meaningful resource transfers.
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Document type: Research paper
How Can Trade Policy Maximize Benefits From Clean Energy Investment?
The document examines the tension between using trade policy to maximize local economic benefits from clean energy investments and the risk of increasing costs that could hinder the renewable energy transition. It notes that while global components like solar modules often face lower tariffs in low-income countries, tariffs on components suited for local production—such as bulky wind towers—can stimulate domestic capacity. The author argues that international efforts to liberalize environmental goods and services must be paired with incentives for competitive local production to maintain political and economic support for the transition.
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Document type: Research paper
What Can Least Developed Countries and Other Climate Vulnerable Countries Expect from The EU Carbon Border Adjustment Mechanism (CBAM)?
The document outlines the objectives of a joint briefing by several institutes to analyze how the EU's CBAM, part of the "Fit for 55" package, affects climate-vulnerable countries, including least developed countries and small island developing states. It focuses on the differences between the European Commission and European Parliament positions, the identification of most-affected countries based on carbon-intensive sectors and export reliance, the implications for UNFCCC climate action, and the potential for CBAM revenues to support low-carbon transitions abroad.
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Document type: Briefing
ЖИВОТ ВО ШОК РАЗБИРАЊЕ НА ПАНДЕМИЈАТА
The document examines the COVID-19 pandemic as a systemic crisis that exposed deep inequalities and the fragility of market-based systems. It argues that the health crisis is inextricably linked to environmental collapse, specifically biodiversity loss and zoonotic risks. The text advocates for the revival of the social state, the implementation of a 'foundational economy' that prioritizes basic human needs over profit, and the adoption of 'technological humanism' to bridge the digital divide. It also analyzes the political responses of Green parties in Europe and the rise of authoritarianism and right-wing populism during the crisis, while highlighting grassroots solidarity networks and the disproportionate impact of the pandemic on marginalized groups, including migrants and the elderly.
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Document type: Report
Financing the decarbonisation of heavy industry sectors in Sweden
The report estimates that a net increase in investment of approximately 66 billion SEK is required to decarbonise Swedish heavy industry by 2045. This includes 50 billion SEK for the four largest emission sources—steel, petrochemicals, refining, and cement—and 15 billion SEK for carbon capture and storage (CCS) in the pulp and paper sector to achieve net-zero. The analysis reveals that financing challenges vary by sector: steel and petrochemicals face high capital expenditure (CAPEX) hurdles due to the need for transformative new processes, while cement and refining are primarily constrained by high operational expenses (OPEX) associated with adding CCS. The report argues that while the total costs are manageable compared to other national infrastructure spending, current carbon pricing under the EU ETS is insufficient to drive these investments, necessitating increased public risk-sharing and targeted industrial policy.
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Document type: Report
Building Africa's Renewable Energy Future: Recommendations for a Just Transition
The document analyses the scope and direction of energy transition policies in 34 African countries, evaluating them against dimensions of energy justice. It finds a general shift toward market-oriented regimes using auction instruments and feed-in tariffs, but warns that an overemphasis on bankability can sideline development goals. The brief identifies several 'good practice' countries and recommends that AU-EU cooperation integrate energy justice criteria, support regional partners, and facilitate policy learning from African successes.
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Document type: Policy brief
Building Africa’s Renewable Energy Future: Recommendations for a Just Transition
The document analyzes energy transition policies in 34 African countries, categorizing them as direct, integrative, or enabling. It identifies a trend toward market-oriented regimes using auction instruments and de-risking tools, while highlighting that only a few countries—including South Africa, Rwanda, Kenya, Mauritius, Ethiopia, and Egypt—effectively integrate energy justice (distributive, recognitional, and procedural) into their frameworks. The authors warn against over-reliance on market forces and recommend that AU-EU cooperation prioritize energy justice criteria, capacity building, and regional partnerships to ensure a just transition.
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Document type: Policy brief
How Can India’s Energy Sector Recover Sustainably from COVID-19? Part 2 – Environmental Sustainability: Tracking COVID-19 support for fossil fuels and renewables in India
The document examines India's energy sector response to COVID-19, noting a trend of continued support for domestic coal and thermal power despite global clean energy goals. It highlights that while some clean energy initiatives exist, such as electric vehicle policies in Delhi and solar power for farmers in Andhra Pradesh, fossil fuel support remains dominant. The briefing advocates for a comprehensive green industrial policy for solar manufacturing, the phase-out of inefficient thermal plants, and the implementation of 'just transition' frameworks to support coal-dependent communities.
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Document type: Briefing
Rent Management: The Heart of Green Industrial Policy
The paper contends that while green industrial policy is often criticized for enabling rent-seeking, the creation of rents is necessary to incentivize investment in high-risk green technologies where markets fail. It proposes shifting the policy focus toward 'rent management'—the strategic process of defining, offering, and eventually withdrawing extra profits—to ensure a transition to a low-carbon economy despite high technological uncertainty and long investment horizons.
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Document type: Research paper
Bridging Costa Rica’s green growth gap
The report analyzes Costa Rica's transition from an agricultural to an export-led economy, highlighting successes in biodiversity and renewable energy alongside critical failures in wastewater management and public transport. It argues that a lack of sustainable public infrastructure and a mismatch in workforce skills hinder the country's goal of carbon neutrality by 2021. The authors recommend streamlining public procurement, diversifying the energy mix beyond hydropower, and implementing a green industrial policy to reduce economic vulnerability to external shocks.
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Document type: Report
Assessing Green Industrial Policy: The India experience
The report evaluates India's approach to green industrial policy (GIP) within its wind and solar energy sectors. It finds that while policies have successfully advanced 'green' objectives—such as energy security, health improvements, and greenhouse gas emission abatement—the 'industrial' objective of creating globally competitive domestic firms has been less successful.
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Document type: Report
Assessing Green Industrial Policy
The report evaluates India's 'Green Industrial Policy' as a blend of market-failure corrections and traditional industrial development goals. While the 'green' objectives—energy access, security, and GHG abatement—have seen success, the industrial policy goals of creating a competitive domestic manufacturing base and fostering R&D have fared poorly. The solar sector has struggled against cheap imports, while the wind sector, though more mature, has seen a decline in global competitiveness and a recent drop in installations following the withdrawal of tax incentives.
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Document type: Report
Germany’s Green Industrial Policy
The report analyzes Germany's energy transition, focusing on the solar PV and wind energy sectors. It evaluates the impact of the Renewable Energy Sources Act (EEG) and its feed-in tariffs (FiT), comparing the economic, technological, and environmental outcomes of both sectors. While wind energy is found to be more competitive and innovative with lower relative subsidy costs, the solar PV sector has faced a severe crisis due to intense competition from Chinese suppliers. The document argues for a systemic approach to green industrial policy, suggesting reforms to the FiT to increase flexibility and competitiveness while addressing grid stability and institutional fragmentation.
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Document type: Report
Green Industrial Policy and the World Trading System
The document analyzes green industrial policy—policies supporting industries that produce environmentally preferable goods—within the context of the global trading system. It identifies various market failures, such as environmental externalities and capital market imperfections, that justify government intervention. However, it warns of governance failures, including rent-seeking and the risk of picking unsuccessful 'winners.' The author argues that while traditional industrial policy is often mercantilist, green industrial policy can provide global benefits, potentially justifying special trade rules or exemptions for climate-related measures and least-developed countries.
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Document type: Briefing
Ten theses for the German Greens
Following an electoral defeat on 22 September, the author outlines ten theses to guide the German Greens through a process of strategic clarification. The author argues that the party's failures were not merely technical but rooted in 'profound conceptual paradoxes and ambiguities', particularly regarding the lack of a distinctive answer to the social question and the absence of a robust 'Energiewende 2.0'. The document calls for a shift away from 'lifestylish-vague' politics toward solid proposals for green industrial policy, public infrastructure investment, and a clearer relationship between ecology and society.
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Document type: Statement
Debating in the maelstrom: Do the Greens have the answers to the crisis?
The document argues that the Eurozone crisis is a symptom of a failing 'liberal-productivist' economic model and a lack of democratic legitimacy in EU governance. It proposes a 'Green New Deal' focusing on renewable energy, financial re-regulation, and social justice to replace GDP-centric growth. Specific analyses cover the structural failures of austerity in Portugal, the political shift toward majoritarian nationalism in Hungary, and the need for a transnational European public sphere to foster solidarity and democratic reform.
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Document type: Report
Green Industrialization
Africa possesses significant critical minerals (30% of global reserves) and solar resources (60% of global resources), yet contributes only 2% of global manufacturing value added. The document asserts that green industrialization requires systems-level policy coordination, treating finance as industrial policy, and utilizing Digital Public Infrastructure (DPI) to improve competitiveness. It highlights successful examples, such as South Africa's REIPPPP attracting over $14 billion in private investment and Morocco's $32.5 billion in approved green ammonia, steel, and fuel projects. With energy demand projected to increase by one-third by 2030, the text emphasizes the need to shift from exporting raw materials to domestic processing and manufacturing to generate more jobs and long-term value.
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Document type: Fact sheet
HIGH FOOD PRICES IN AFRICA: causes, consequences and agenda for action
The report argues that high food prices in Africa are driven by a combination of climate change, global shocks like the Russia-Ukraine war, and systemic market failures. It highlights extreme corporate concentration in seeds, agrochemicals, and trading, which allows a few firms to capture excess margins at the expense of small-scale farmers and urban consumers. Using maize and soybean markets in East and Southern Africa as case studies, the authors demonstrate how poor regional trade and market power lead to price spikes and reduced production. The document proposes an agenda for action centered on real-time market monitoring via the African Market Observatory, strengthened competition enforcement, and investments in climate-resilient infrastructure.
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Document type: Report
Scaling transition finance for green industrial transition of the Indian iron & steel sector
The paper argues that for India to achieve net-zero emissions by 2070, the iron and steel sector—responsible for 10-12% of national GHG emissions—must shift to low-carbon production. It proposes a comprehensive 'Green Steel Mission' and a national sustainable finance taxonomy to bridge the gap between conventional and green technologies. The authors emphasize the need for differentiated strategies for primary steel (BF-BOF route) and secondary steel (DRI-IF/EAF route), noting that secondary producers face higher financing barriers despite having high near-term abatement potential. Key recommendations include mandating corporate transition plans, developing a detailed sectoral technology roadmap, and adopting innovative financial instruments like Carbon Contracts for Difference (CCfD) to support low-TRL technologies.
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Document type: Research paper
Finance for a Green Economy
The document argues that a successful green economy transition requires a fundamental overhaul of the global financial architecture to move away from short-termism and 'brown' investments. It advocates for the mainstreaming of natural capital accounting to better value ecosystem services and the adoption of inclusive policy processes that protect marginalised groups and workers. Additionally, it emphasises the critical role of SMEs and informal businesses in driving local innovation, noting that approximately 70% of MSMEs in emerging markets lack access to credit, creating a 'missing middle' financing gap.
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Document type: Policy brief