Search Climate Insights Directory
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Time to set SA-US trade on a fresh trajectory
The author highlights a divergence in trade policy between South Africa, which prioritizes the WTO's multilateral system, and the US, which is pursuing far-reaching 'megaregional' agreements like the Trans Pacific Partnership and the Transatlantic Trade and Investment Partnership. This shift poses risks to South African exporters, particularly in the automotive sector, as the US creates reciprocal trade arrangements with other nations. The document suggests that as Agoa faces renewal in 2015, South Africa should move beyond unilateral arrangements toward a more strategic, reciprocal trade relationship with the US.
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Document type: Research paper
International Aviation
The document examines the environmental and social challenges of international aviation, highlighting that the sector may be responsible for up to 14% of man-made climate change. It criticizes the International Civil Aviation Organization (ICAO) for a lack of binding measures and analyzes the European Union's attempts to unilaterally regulate aviation emissions via the EU-ETS. The brief argues that offsetting is not a long-term solution and warns against the use of low-quality credits from mechanisms like Joint Implementation (JI) or oversupplied cap-and-trade systems. It recommends that any global aviation scheme must prioritize in-sector reductions and generate finance for climate action in developing countries.
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Document type: Policy brief
Using climate information to support adaptation planning and policy-making
The document outlines an eight-step process for integrating scientific climate data into adaptation planning, emphasizing that adaptation is a socio-institutional learning process rather than a purely technical exercise. It demonstrates this workflow through a case study in the Philippi suburb of Cape Town, where climate data is used to evaluate the trade-offs between maintaining vegetable production and rezoning land for low-cost housing. The guide highlights the importance of using both historical observations and future projections (RCP 4.5 and 8.5) to inform decisions on flood risk and heat stress.
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Document type: Guide
Crunch time for aviation emissions
The document critiques the International Civil Aviation Organization's (ICAO) progress toward a market-based measure (MBM) for international aviation emissions. It argues that the industry's preference for 100% offsetting fails to incentivize actual emission reductions within the sector and warns that low-quality offsets could exacerbate climate impacts. The author advocates for a cap-and-trade scheme with a stringent cap and strict quality restrictions on eligible offset credits to ensure environmental integrity.
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Document type: Statement
CARBON TAX POLICY PAPER
The document outlines a proposed carbon tax for South Africa, starting at R120 per tCO2-eq in 2015 with annual increases of 10% through 2019. It argues that a carbon tax is more suitable than an emissions trading system (ETS) in the short term due to the oligopolistic nature of the domestic energy sector. The design includes a basic tax-free threshold of 60%, with additional allowances for trade-exposed and process-emission sectors, and the possibility of using carbon offsets to reduce tax liability. Economic modelling suggests the tax would have a largely neutral impact on GDP and employment if revenues are recycled effectively through tax shifting or government investment. The paper also details complementary flagship programmes in energy efficiency, renewable energy, and public transport to support a just transition.
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Document type: Report
Towards Understanding South Africa’s Differing Attitudes to the Extractive Industries Transparency Initiative and the Open Governance Partnership
The research investigates why South Africa is a founding member of the Open Government Partnership (OGP) but remains absent from the Extractive Industries Transparency Initiative (EITI). It argues that the South African government's justifications—namely the existence of the Promotion of Access to Information Act (PAIA) and the Mineral and Petroleum Resources Development Act (MPRDA)—are insufficient because these frameworks do not provide the specific, multi-stakeholder corporate-state payment reconciliation that the EITI requires. The author suggests that South Africa's reluctance is partly ideological, tied to perceived double standards in the global North, and that the country may only join the EITI if it sees it as a means to bolster its status as an emerging global power.
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Document type: Research paper
Decision Support Methods for Climate Change Adaption
The document evaluates a variety of decision support methods for climate change adaptation, categorising them into traditional tools (CBA, CEA, MCA) and those specifically designed for decision-making under uncertainty (ROA, RDM, PA, Adaptive Management, AHP). It highlights that while traditional tools are well-known, they often struggle with the deep uncertainties of climate projections. The brief details the strengths and weaknesses of each method, provides a diagnostic framework for matching tools to specific adaptation challenges, and lists case study applications across various sectors and geographies, including the UK, Finland, Spain, and Italy.
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Document type: Policy brief
The cost of carbon pricing: competitiveness implications for the mining and metals industry
The report examines how carbon pricing mechanisms—such as carbon taxes and emissions trading systems—affect the competitiveness of the mining and metals sector. It focuses on aluminium, copper, iron ore, and coal across the EU, South Africa, Australia, Canada, and the US. The analysis highlights that electricity-intensive processes, like aluminium smelting, are most vulnerable to indirect costs passed through from power grids. The report advocates for a principles-based approach to policy design to prevent carbon leakage and maintain international competitiveness, recommending a transition toward a harmonized global emissions system.
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Document type: Report
Environmental Impacts of Wind Power
The document examines the environmental footprint of wind power, noting that while it is a clean energy source, it has specific impacts on land use, wildlife, and local communities. It highlights that land-based facilities in the US use between 30 and 141 acres per megawatt, though permanent disturbance is less than 1 acre per megawatt. Wildlife impacts, particularly bird and bat collisions, are described as relatively low and manageable through better siting and operational adjustments. Public health concerns regarding sound and vibration have not been found to have adverse effects in studies from Canada and Australia. Finally, the document notes that wind power's life-cycle global warming emissions (0.02 to 0.04 pounds of CO2e/kWh) are significantly lower than those of natural gas or coal.
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Document type: Fact sheet
Stopping the clock on emissions from air travel: what's the buzz?
The document discusses the tension between the EU's unilateral inclusion of international aviation in its Emissions Trading Scheme (EU ETS) and the need for a global agreement via ICAO. It warns against the use of low-quality offset credits, specifically industrial gas offsets and non-additional CDM credits, arguing that any global mechanism must prioritize real, permanent, and verified emissions reductions over supplementary offsets.
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Document type: Statement
Carbon pricing and its future role for energy-intensive industries
The report assesses how carbon pricing affects the competitiveness and investment strategies of energy-intensive industries (EIIs). It finds that while carbon costs are a factor, they are often secondary to energy and raw material prices. The analysis highlights the risk of carbon leakage, where production shifts to regions with lower emissions costs, particularly as demand grows in Asia. The report emphasizes that current short-term policy horizons, such as the EU's 2020 targets, are insufficient for the 20- to 40-year investment cycles typical of these sectors, suggesting a need for longer-term regulatory certainty and support for breakthrough technologies like Carbon Capture and Storage (CCS).
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Document type: Report
International Experience with Emissions Trading
The report analyzes the design and operational experiences of various emissions trading systems, including the EU ETS, RGGI, WCI, NZ ETS, TMG ETS, and the Australian CPM. It highlights key design trade-offs regarding coverage, allowance distribution, and price management, while emphasizing that the EU ETS experience demonstrates that over-allocation does not necessarily preclude abatement. The document also provides a toolkit for policymakers to assess the environmental and economic effectiveness of such systems.
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Document type: Report
The Challenge of Institutional Investment in Renewable Energy
The report examines how institutional investors—such as pension funds and insurance companies—can bridge the financing gap for renewable energy. It identifies three investment channels: corporate investment, direct project investment, and pooled vehicles. While corporate investment is easiest, direct investment offers the most potential to lower the cost of capital, though it is constrained by liquidity needs, lack of specialist expertise, and policy inconsistencies. The authors suggest five steps to unlock this potential, including fixing policy barriers and improving investor practices.
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Document type: Executive summary
The Challenge of Institutional Investment in Renewable Energy
Institutional investors manage approximately $71 trillion in OECD assets, but their ability to fund renewable energy is constrained by liquidity needs, fund size, and policy barriers. While they could potentially cover all corporate equity and debt needs for renewables, their capacity for direct project investment is limited to roughly 24% of equity and 49% of debt requirements. The report suggests five steps to unlock this potential: fixing policy barriers, improving investor practices, modifying regulatory constraints, developing better pooled investment vehicles, and encouraging corporate investors.
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Document type: Report
Status of Resources
The report details the Green Climate Fund's administrative spending and trust fund status through the end of 2012. It tracks expenditures for the Board, Interim Secretariat, and Interim Trustee, while noting that all received contributions and anticipated pledges had been allocated to administrative budgets through December 31, 2013, leaving no funds available for new funding decisions.
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Document type: Report
BRICS FOREIGN DIRECT INVESTMENT: A PRELIMINARY VIEW
The document finds that while trade among BRICS nations has grown, intra-BRICS FDI remains low and lacks strategic policy direction. Most BRICS countries rely on traditional investors from the EU, US, and Japan, though China, India, and Brazil have increased resource-seeking investments in Africa. The briefing recommends collaborative research, comparative studies of investment frameworks, and improved statistics to foster sustainable, development-oriented FDI within the bloc.
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Document type: Policy brief
Dialogue on ecosystem services, payments and outcome based approaches
The document examines Payments for Ecosystem Services (PES) as a tool to incentivize agricultural land managers to provide non-market environmental benefits. It distinguishes between action-based payments, which reward the adoption of specific practices, and outcome-based payments, which reward actual environmental results. The authors argue that outcome-based approaches are more effective at delivering biodiversity and ecosystem services because they encourage farmer innovation and target the most ecologically valuable land. While European examples often focus on site-specific biodiversity in grasslands, the report suggests that shifting from top-down contractual agreements to local governance and participatory design is essential for scaling these mechanisms. Barriers to implementation include scientific uncertainty, high administrative costs, and the risk of 'leakage' where environmental damage is displaced outside the PES zone.
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Document type: Briefing
Drivers and Challenges for Climate Compatible Development
This research paper by the Climate and Development Knowledge Network (CDKN) examines the drivers and challenges associated with Climate Compatible Development (CCD), defined as a "development first" approach that minimizes climate harm while maximizing human development opportunities in a low-emissions, resilient future. Drawing on experience from over 40 countries, the paper identifies key sociopolitical drivers—such as national resilience needs, energy security, and economic opportunities—and outlines significant barriers, including high implementation costs, political resistance, and institutional capacity gaps.
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Document type: Research paper
Drivers and Challenges for Climate Compatible Development
The paper identifies five key drivers for CCD: national adaptation needs, energy security and resource efficiency, new economic opportunities, access to climate finance, and strong government leadership. It also outlines seven primary challenges, including high implementation and opportunity costs, opposition from vested interest groups, lack of trusted data, short-term political thinking, limited state capacity, institutional constraints, and technological uncertainties. The authors argue that managing the political economy of CCD is essential for overcoming these barriers.
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Document type: Research paper
THE LONG ROAD OF CLIMATE NEGOTIATIONS: FROM KYOTO TO PARIS STOPPING OVER IN DOHA
The COP18 summit in Doha resulted in incremental progress, primarily the agreement of a second commitment period for the Kyoto Protocol (KP2) from 2013 to 2020. While the EU and several other nations committed to an average emission reduction of 18% below 1990 levels, major emitters including the US, China, Russia, Japan, Canada, and New Zealand did not approve or opposed the commitment. The summit failed to establish a concrete roadmap for the $100 billion annual climate finance target for 2020, though it introduced a new agreement to establish an international mechanism for "loss and damage" by COP19. The document highlights ongoing tensions regarding the principle of common but differentiated responsibilities and respective capabilities (CBDR-RC) and the dispute over "hot air" carbon credits, particularly involving Poland and the EU.
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Document type: Policy brief