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185 results
Industry windfall profits from Europe’s carbon market
The document assesses the impact of 'carbon leakage' rules within the EU ETS from 2008 to 2014, finding that free pollution permits resulted in over 4 billion in windfall profits for heavy industry. It highlights that these subsidies benefit specific sectors like iron, steel, and cement, and primarily accrue in countries such as Germany and the UK. The brief contends that these rules reduce incentives for decarbonization and deprive governments of approximately 137 billion in potential auctioning revenues. It recommends phasing out free allocations in favor of 100% auctioning to align with the polluter-pays principle and the global landscape following the Paris agreement.
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Document type: Policy brief
45q-extension-letter-to-house-ways-and-means_2-3-2016-d68bd8fdcafd2fa1.pdf
The document is a formal request to the U.S. House Committee on Ways and Means to permanently extend and increase the value of the Section 45Q Tax Credit for Carbon Dioxide Sequestration. The authors argue that the credit is essential for incentivizing carbon capture utilization and storage (CCUS) at industrial facilities and power plants, and that current uncertainty regarding its expiration deters private investment. They highlight that CCUS is critical for meeting global mid-century greenhouse gas emission goals and for expanding domestic oil production through enhanced oil recovery (EOR).
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Document type: Statement
6 Steps the Obama Administration Can Take in 2016 to Cement its Climate Legacy
The World Resources Institute proposes six domestic actions for the Obama administration in 2016: implementing the Clean Power Plan, reducing methane emissions from existing gas infrastructure, banning more potent hydrofluorocarbons (HFCs), preparing industrial emission standards, finalizing fuel efficiency for heavy-duty trucks and aircraft, and increasing local climate resilience support. It also urges the U.S. to sign the Paris Agreement, meet Green Climate Fund commitments, and mobilize resources for Mission Innovation to sustain global momentum.
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Document type: Briefing
Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016
The document assesses the financial impact on industrial subsectors under a cap-and-trade scenario with no rebates, noting that most would face compliance costs between 1% and 6% of shipment value, with specific high-risk sectors identified.
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Document type: Fact sheet
THE MEDIUM-TERM REVIEW OF THE 2011 HIGHVELD PRIORITY AREA (HPA): AIR QUALITY MANAGEMENT PLAN DRAFT REVIEW REPORT
The review finds that ambient air quality in the Highveld Priority Area (HPA) has not shown significant improvement since 2012, with frequent exceedances of National Ambient Air Quality Standards (NAAQS). Industrial sources remain the dominant contributors of SO2 and NOx, while mining is the primary source of PM10. An audit of the AQMP implementation reveals that less than 50% of interventions have been fully achieved, with significant deficiencies in vehicle emissions, waste management, and low-income settlement interventions. While government organizational capacity and awareness have improved, the report recommends a revised plan with SMART goals and strengthened cooperative governance across national departments.
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Document type: Report
THE CLEAN AIR HANDBOOK
The handbook explains the legal framework of the EU Air Quality Directive, emphasizing the enforceability of 'limit values' for pollutants like NO2 and PM10. It details how citizens and NGOs can use the Aarhus Convention's pillars—access to information, public participation, and access to justice—to challenge inadequate air quality plans and government inaction in national courts. The document also outlines the European Commission's infringement procedures and the 'Fresh Approach' to tackling systemic breaches of air quality standards across Member States.
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Document type: Guide
REQUEST FOR REVIEW AND STRENGHENING OF THE NATIONAL DUST CONTROL REGULATIONS
The Centre for Environmental Rights, representing various community and environmental organisations, argues that the 2013 National Dust Control Regulations are ineffective due to their reliance on a 30-day monitoring average and the 'crude' ASTM D1739 test method. The letter highlights that PM10 fugitive emissions from mine haul roads account for 49% of total annual PM10 emissions in the Highveld Priority Area. It recommends adopting a pro-active 'best practices' approach and opacity standards similar to those used in Michigan and Utah (USA), and calls for mandatory geochemical and radionuclide analysis of dust from tailings storage facilities to address toxicity and radiation risks.
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Document type: Statement
Carbon leakage myth buster
The document challenges the justification for granting free carbon allowances to EU industries to prevent 'carbon leakage' (production relocation). It argues that there is no compelling evidence of such leakage and that free allocations instead create windfall profits for companies, disincentivize low-carbon innovation, and deprive the public of auctioning revenues. The brief recommends a transition to 100% auctioning of allowances and a more stringent, transparent criteria for the carbon leakage list to ensure only truly high-risk sectors receive support.
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Document type: Policy brief
Modernization and Innovation in the materials sector: lessons from steel and cement
The European steel and cement sectors face substantial surplus production capacity and limited reinvestment, hindering the adoption of low-carbon technologies. While energy efficiency and fuel-switching have provided some gains, breakthrough process technologies like carbon capture and storage (CCS) require significant public funding and a credible, long-term carbon price signal for both producers and consumers to be viable. The report argues that a comprehensive policy package—combining the EU ETS, innovation funding, and updated building standards—is essential to transition these capital-intensive industries toward sustainable, high-value production.
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Document type: Report
EU ETS review proposal earmarks €160 billion for Europe’s largest polluters
Carbon Market Watch argues that the EU ETS review proposal prioritizes industrial interests over climate goals by earmarking at least €160 billion in free pollution permits after 2020. While the proposal increases the linear reduction factor to 2.2% to meet 2030 targets, the organization contends this is offset by the release of surplus allowances and the continuation of free allocations to prevent hypothetical carbon leakage.
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Document type: Statement
Health impacts of atmospheric pollution in a changing climate
The paper examines the severe health and economic burdens of air pollution, noting that global premature deaths could double by 2050. It details the Impact Pathway Approach (IPA) for monetizing health damages and analyzes European industrial emissions data, identifying the power generating sector as the largest contributor to damage costs. The authors propose enhancing these assessments by integrating satellite-based Earth observation data from the MACC/Copernicus services to reduce model errors and provide higher resolution global and regional air quality analysis.
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Document type: Research paper
BRIEF FOR THE CITY OF HOUSTON, HARRIS COUNTY ATTORNEY, AND AIR ALLIANCE HOUSTON AS AMICI CURIAE IN SUPPORT OF APPELLANTS AND IN SUPPORT OF REVERSAL
The City of Houston, Harris County Attorney, and Air Alliance Houston argue that the district court abused its discretion by denying civil penalties and injunctive relief despite finding nearly one hundred actionable Clean Air Act violations at Exxon's Baytown complex. The brief contends that the court misapplied the 'seriousness' and 'economic benefit' factors of the Act, ignoring the public health risks of ozone and carcinogens in the Houston-Galveston-Brazoria Ozone Nonattainment Area. It further argues that the court's narrow interpretation of 'repeated' violations allows polluters to evade liability by frequently changing numeric emission limits.
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Document type: Legal commentary
South Africa: Toxic air is now legal
The statement criticizes the South African government for granting air quality standard postponements to Eskom, Sasol, and Engen on 24 February 2014. It asserts that these postponements effectively legalize toxic air, contradicting Section 24 of the constitution and a 1995 promise by President Mandela. The document highlights the severe health impacts of Eskom's pollution, estimating 20,000 premature deaths and an economic cost of R230 billion, while arguing that industries have had sufficient time since 2004 to implement pollution control technologies.
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Document type: Statement
Oportunidades E Desafios Para Aumentar Sinergias Entre As Políticas Climáticas E Energéticas No Brasil
The report argues that Brazil's current energy-related emission trajectory is unsustainable and likely to exceed estimated fair carbon budgets between 2024 and 2035. It identifies significant opportunities for decarbonization in the transport, industry, and electricity generation sectors, suggesting that a transition to a low-carbon economy can be achieved with low or negative economic costs while improving public health and competitiveness.
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Document type: Report
Open letter to Environmental Affairs Minister Edna Molewa on talks with Sasol
The letter argues that Sasol and Natref's court application to set aside air pollution regulations threatens public health and environmental rights, particularly in the Vaal Triangle and Highveld Priority Areas. The signatories contend that Sasol's high profitability makes its claims of prohibitive compliance costs immoral and that granting exemptions would set a dangerous precedent for other polluters, including Eskom.
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Document type: Statement
Carbon Leakage: A Blank Cheque to Industry
The document argues that the European Parliament's decision to uphold the European Commission's carbon leakage list, using a €30 per tonne carbon price, leads to an over-allocation of free emission permits. It claims this results in a loss of approximately €5 billion in taxpayer revenue over five years and provides windfall profits to polluters, despite a lack of evidence for actual carbon leakage.
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Document type: Statement
Cap and Trade in Practice
The document analyzes the impact of California's Cap and Trade Program on the cement industry, using financial modeling and interviews to assess abatement options. It finds that while carbon pricing makes some investments more attractive, significant barriers—such as short internal payback period requirements (1.5-3 years), uncertainty regarding alternative fuel supplies, and prescriptive customer procurement standards—often outweigh the carbon price signal. The authors suggest that complementary policies, such as public financing for long-term projects and performance-based procurement standards, are necessary to unlock low-cost emissions reductions.
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Document type: Research paper
Regulating Carbon Emissions in Canada
The document analyzes a proposed update to Alberta's Specified Gas Emitters Regulation (SGER) known as the "double-double" approach, which would increase the emission intensity improvement standard to 24 per cent and the price ceiling to $30. Modelling suggests this would result in a total compliance obligation of approximately 29 million tonnes in 2020, with costs for the oil sands sector estimated at $0.13 per barrel. The author recommends indexing the price ceiling to inflation, reviewing cogeneration credits, improving intensity benchmarks, and expanding coverage to facilities emitting over 50,000 tonnes annually.
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Document type: Policy brief
TACKLING 60% OF THE EU’S CLIMATE PROBLEM
The report analyzes the implementation of the Effort Sharing Decision (ESD), which targets non-ETS sectors responsible for nearly 60% of EU emissions. While 15 Member States are projected to over-achieve their 2020 targets, others face significant gaps, particularly in road transport and buildings. The document highlights that while the overall EU 2020 target is likely to be met, several countries rely on flexibility mechanisms or planned additional measures rather than existing policies to close their emission gaps.
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Document type: Report
Carbon Control and Competitiveness Post 2020
The report finds that while the EU ETS initially focused management attention on CO2, a declining carbon price and free allocation rules have since diminished its impact. Most emission reductions were driven by economic cycles or non-ETS regulations. The authors argue that current free allocation creates distortions, such as discouraging asset rationalization and incentivizing excess clinker production. To unlock deep mitigation like Carbon Capture and Storage (CCS) and clinker substitution, the report recommends strengthening the carbon price signal, reforming leakage protection through output-based allocation or the inclusion of consumption, and providing targeted innovation support.
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Document type: Report