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Carbon Market Watch and signatory organisations argue that the European Commission's proposal for the EU ETS revision fails to apply the 'polluter pays principle' by continuing free pollution permits. They contend that free allocations have stagnated industrial decarbonisation, noting that over 200 billion euros in allowances have been distributed since 2008 while emissions reductions remained below 0.4% annually since 2013. The document calls for full auctioning of allowances to internalise carbon costs and generate revenue for clean technology, warning that the Commission's plan for 5 billion free allowances between 2021 and 2030 could represent a subsidy of approximately 400 billion euros at current prices.

The document analyzes the NEW 4.0 project in northern Germany, which demonstrated that a highly industrialized economy can operate on 100% renewable energy using digital management tools and industrial flexibility. It argues that Canada faces similar non-technical barriers—specifically rigid regulatory and financial frameworks—that hinder the integration of clean energy and innovation.

CATF Executive Director Armond Cohen outlines the organization's efforts at COP26 to prioritize methane emissions reductions and the deployment of next-generation carbon-free technologies. Key achievements include the launch of the Global Methane Pledge and the inclusion of methane and coal 'phase down' language in the final COP26 text. The document emphasizes that meeting net-zero targets requires an expanded suite of technologies beyond renewables, including carbon capture, hydrogen, and advanced nuclear energy.

Carbon Market Watch argues that the European Commission's proposal to update the EU ETS is insufficient, specifically citing an inadequate emission reduction target and the failure to implement the polluter pays principle through continued free allowances. The organization advocates for a 70% emission reduction target by 2030, a more aggressive Market Stability Reserve (MSR) intake rate of 36%, and the immediate phase-out of free emission allowances. Further recommendations include expanding the ETS to cover all international shipping voyages and waste incineration, excluding Carbon Capture and Utilization (CCU) due to potential loopholes, and deleting Article 26 of the ETS Directive to allow binding greenhouse gas limits in industrial permits.

The document asserts that only hydrogen produced from 100% renewable electricity is a true climate solution, though it remains energy-intensive and costly. It warns that current hydrogen production is dominated by fossil-fuel-based steam methane reformation and that 'blue' hydrogen may have a higher greenhouse gas footprint than burning natural gas or coal for heat. The author recommends prioritizing direct electrification for transportation and buildings, reserving green hydrogen for maritime shipping, aviation, high-heat industrial processes, and long-distance trucking.

The document examines how permitting processes can be optimized to support the rapid decarbonization of heavy industry, specifically in Sweden's cement, steel, petrochemical, and refinery sectors. Based on a workshop with government agencies and industrial companies, it identifies key characteristics of successful permitting—such as transparency, predictability, and dialogue—and emphasizes the critical role of competence and resources. The brief argues that while some regulatory reforms may be needed, significant improvements can be achieved within existing frameworks by increasing institutional expertise, ensuring stable funding for authorities, and encouraging companies to treat stakeholder dialogue as a core competence.

The document argues that Carbon Capture and Storage (CCS) is essential for Germany to reach its 2045 climate neutrality goal, particularly for the cement, steel, and chemical industries. It calls for a government strategy that includes the development of CO2 transport infrastructure, the use of Carbon Contracts for Difference, and a legal declaration to the International Maritime Organization to enable cross-border CO2 transport.

The document examines the resurgence of carbon capture and storage (CCS) in Europe as a critical tool for decarbonizing heavy industries and achieving Paris Agreement targets. It analyzes EU-level policies like the TEN-E Regulation and the EU Emissions Trading System (EU ETS), alongside financing tools such as the Innovation Fund and Connecting Europe Facility (CEF). The paper highlights a strategic shift toward 'carbon management hubs' to achieve economies of scale and reviews national progress in Norway, the UK, the Netherlands, Denmark, Sweden, and Germany, concluding that existing policy levers may be insufficient for the required scale-up.

A coalition of organizations calls on the U.S. House Ways & Means Committee to implement a comprehensive clean energy tax framework. The proposal emphasizes the need for decade-long policy certainty and specific credits for emerging technologies—such as clean hydrogen, carbon capture, and sustainable aviation fuels—alongside the extension of credits for mature resources like wind, solar, and existing nuclear power to reach net-zero emissions by 2050.

The testimony advocates for carbon capture and sequestration (CCS) as a vital tool for Pennsylvania to reach net-zero emissions by 2050. It identifies Western Pennsylvania as the most geologically favorable region for CO2 storage, estimating a potential capacity of 75.6 gigatonnes in deep saline formations, though it notes this figure may be overly optimistic. The author suggests that initial CCS projects should target 15 identified steel, cement, and power plants in the west to minimize transport costs, proposing a 'hub' model to achieve economies of scale. The testimony also highlights the potential for Pennsylvania to use its natural gas resources to produce clean hydrogen via reforming with CCS. To enable this transition, the author calls for federal policy support, specifically the enhancement of 45Q tax credits to $85 per metric ton and the passage of the SCALE Act, as well as the adoption of a state-level Clean Energy Standard.

The Bipartisan Infrastructure Framework is criticized for cutting up to a trillion dollars in climate and clean energy spending compared to the American Jobs Plan. Key omissions include large-scale electric vehicle incentives, building energy efficiency retrofits, direct renewable energy deployment, and industrial decarbonization. The author contends these gaps make it impossible for the U.S. to reach its 2030 greenhouse gas reduction goals and suggests using budget reconciliation to restore these investments.

The document highlights that steelmaking is a highly emission-intensive process, contributing approximately 8% of global CO2 emissions annually. It argues that reducing these emissions is essential for achieving net-zero by 2050 and meeting Paris Agreement commitments, suggesting that G7 nations should lead international cooperation to establish the groundwork for a global industrial transition.

The document argues that Green Public Procurement (GPP) can leverage the significant purchasing power of governments to stimulate demand for low-carbon materials in energy-intensive industries. It focuses on hard-to-abate sectors such as steel and cement, noting that five basic industrial materials account for 20% of global CO2 emissions. The brief, produced by UNIDO and the Leadership Group for Industry Transition, aims to provide methodologies for GPP design to help reach Paris Agreement targets.

The proposal argues that the European Green Deal requires an effective CBAM to prevent carbon leakage and ensure carbon price signals drive industrial investment. It suggests a three-pillar approach: a 'climate contribution' based on carbon intensity benchmarks to ensure carbon costs are reflected in material prices; the EU ETS with conditional free allowance allocation to incentivise carbon efficiency; and Carbon Contracts for Difference (CCfDs) to support investments in clean production and recycling. The authors contend that these elements must work together to avoid trade conflicts, limit administrative complexity, and provide the revenue necessary to fund the transition across all European industrial regions.

The document analyzes how free emission allowances under the EU ETS led to up to 50 billion euros in windfall profits for energy-intensive industries between 2008 and 2019. It challenges the 'carbon leakage' justification for these allowances, noting a lack of evidence for industrial relocation. The author recommends transitioning to full auctioning of permits and utilizing the resulting revenues for climate innovation and a just transition.

The document highlights the necessity of public-private collaboration to decarbonize heavy industry, which contributes approximately 30% of global CO2 emissions. It identifies the Leadership Group for Industry Transition (LeadIT), launched by Sweden and India, as a key arena for international cooperation toward net-zero emissions by 2050. The brief examines specific policy tools such as green public procurement, carbon contracts for difference, and carbon border adjustments, while referencing implementation experiences in countries including South Korea, Denmark, Sweden, Canada, and the UK.

The document outlines a proposed U.S. policy package comprising 45Q tax credit enhancements, the SCALE Act, and appropriations from the Energy Act of 2020. Together with the American Jobs Plan, these measures aim to grow U.S. carbon management capacity 13-fold by the mid-2030s. Key recommendations include introducing a 'Direct Pay' option for tax credits, increasing credit values to $85 per metric ton for industrial applications and $180 for direct air capture, and extending the construction window to 2035. Additionally, the SCALE Act is presented as a means to overcome 'chicken-and-egg' infrastructure barriers through DOE cost sharing, EPA permitting support, and the creation of the CO2 Infrastructure Finance and Innovation Act (CIFIA) for low-interest loans.

The document argues that the United States can lead global industrial decarbonization by leveraging its financial and technical resources through collaborative efforts between the public and private sectors, specifically focusing on the cement, iron and steel, aluminum, and chemicals industries.

Between 2008 and 2019, fifteen CO2-intensive industrial sectors in nineteen EU countries earned estimated additional profits between €30 billion and over €50 billion from the EU ETS. These profits were derived from three primary sources: the overallocation of free emission allowances, the use of cheaper international credits (CERs/ERUs) for compliance, and the passing through of opportunity costs of free allowances into product prices. The iron and steel sector was the largest beneficiary, with profits ranging from €11.9 billion to €16.1 billion. In contrast, the aviation sector experienced a net loss of €151.2 million due to the need to purchase allowances. The report argues that free allocation may no longer be fit for purpose and recommends increasing the share of auctioning combined with targeted investment subsidies or a Carbon Border Adjustment Mechanism (CBAM) to reduce windfall profits and encourage decarbonization.

The report evaluates Colorado's emissions trajectory and proposes a '1.5°C Scenario' to bridge the gap between current policies and climate goals. This scenario emphasizes a rapid transition to 100% clean electricity by 2035, the electrification of transportation and buildings, and the reduction of industrial methane leaks. Implementing these measures is projected to reduce net emissions by 85% below business-as-usual levels by 2050, while creating up to 36,000 new jobs and providing significant public health benefits, including the prevention of over 1,400 deaths annually by 2050.