Search Climate Insights Directory

The report examines the role of border carbon adjustments (BCAs) in preventing carbon leakage, focusing on stakeholder views from five diverse economies. It analyzes the design of existing mechanisms like the EU and UK CBAMs, explores alternatives to BCAs such as output-based allocation and green industrial policy, and details the challenges faced by exporting nations, including emissions measurement complexities and the need for technology transfers.

The guidelines establish a framework for GSS+ labelled financial instruments in Panama, aligning with international standards like ICMA and the Climate Bonds Standard. It details the requirements for use-of-proceeds instruments (green, social, sustainability) and general-purpose sustainability-linked instruments, emphasizing transparency, external reviews, and impact reporting. The document also highlights Panama's Sustainable Finance Taxonomy and the broader sustainable debt market trends in Latin America and the Caribbean.

The document argues that the EU is currently in breach of the Aarhus Convention because the public and environmental NGOs lack a viable legal mechanism to challenge state aid decisions that violate environmental law. It explains that current CJEU admissibility standards effectively exclude NGOs, and that national court actions are insufficient substitutes. The briefing addresses business concerns, stating that a new review procedure would not be suspensive (meaning aid can still be granted and spent during litigation) and would not compromise confidential business information. It evaluates three options proposed by the Commission to grant access to justice, favoring the amendment of the EU Aarhus Regulation as the most legally certain and democratic solution.

A joint response from twelve NGOs urging the European Commission to adopt a fully precautionary, ecosystem-based approach to setting 2025 fishing opportunities, arguing that current Total Allowable Catches (TACs) fail to prioritise the rebuilding of depleted stocks and ignore critical ecosystem dynamics.

The report examines the transition from internal combustion engine (ICE) trucks to zero-emission trucks (ZETs) in India, focusing on the potential for job displacement across direct, indirect, and induced employment categories. It projects ZET sales through 2040 under business-as-usual and ambitious scenarios and highlights the vulnerability of informal sector mechanics and truck-stop service providers. To mitigate these risks, the authors propose the establishment of a Just Transition Fund for India (JTFI) to finance reskilling and alternative livelihoods.

The report presents the Industrial Zero Emissions Calculator (IZEC), an open-source Excel tool that allows stakeholders to visualize the electricity, hydrogen, bioenergy, and carbon capture and storage (CCS) needs required to achieve zero-emission industry. Focusing on U.S. scenario results, the report argues that direct electrification is the most energy-efficient pathway for industrial heat, while green hydrogen should be reserved for high-value feedstocks and steelmaking due to its inefficiency when burned. It highlights that heavy reliance on bioenergy or fossil-based CCS leads to prohibitive land use or capital costs, respectively. The authors emphasize that combining these technologies with energy and material efficiency improvements is critical to making industrial decarbonization feasible and cost-effective.

The report examines the strategic importance of critical raw materials (CRMs) for OACPS member states, highlighting their significant global production shares in minerals like cobalt, platinum-group metals, and manganese. It identifies a critical gap in local beneficiation capacities, noting that most CRMs are exported as raw ores, which results in lost economic value. The document analyzes the impact of new industrial policies from the US, EU, and China—such as the US Inflation Reduction Act and the EU Critical Raw Materials Act—which emphasize reshoring and 'friendshoring' and may conflict with OACPS industrialization goals. It concludes that OACPS countries must move beyond extractive 'pit-to-port' models through regional cooperation, strategic partnerships, and robust regulatory frameworks to maximize socio-economic benefits while managing environmental and social risks.

The briefing argues that the Energy Charter Treaty's (ECT) survival clause obstructs climate mitigation by allowing fossil fuel investors to seek compensation for government phase-out measures for 20 years after a state's withdrawal. To address this, the authors provide a model 'inter se' agreement that allows the EU and other non-EU contracting parties to modify the treaty among themselves to delete the survival clause. The document asserts that this modification is legally viable under Article 41 of the Vienna Convention on the Law of Treaties (VCLT), as it does not affect third-party rights, is not prohibited by the ECT, and aligns with the treaty's stated environmental objectives and the Paris Agreement.

The policy brief contends that despite France's diplomatic leadership and the Paris Place's 2019 commitment to phase out coal, French financial institutions continue to fund coal development. It highlights the severe health and climate impacts of coal, the failure of voluntary commitments—specifically among four major French banks—and calls for a national legal ban on financial services for coal projects to ensure a credible transition.

The document examines the tension between African developmental goals for critical minerals and the geopolitical priorities of external powers, specifically the US-led G7 and China. It highlights China's early-mover advantage in the Democratic Republic of Congo (DRC) and Zimbabwe, while noting that G7 counter-initiatives often prioritize supply chain security over African local value addition. The authors argue that African nations must develop comprehensive national and regional strategies to avoid repeating colonial extraction patterns and to leverage their resources for sustainable industrialisation.

The document argues that Sweden's transition to fossil-free transport risks disproportionately harming approximately 40% of the population, particularly those in low-density areas with high car dependency and lower incomes. It proposes a four-part policy framework focusing on structural infrastructure investments, group-specific support, addressing non-transport vulnerabilities, and continuous evaluation to ensure social acceptance and equity.

The report analyzes the East African avocado value chain, highlighting that while the sector drives economic growth, it faces significant hurdles in quality control, infrastructure, and climate resilience. It emphasizes the necessity of transitioning to sustainable, climate-smart agricultural practices to maintain access to the EU market. Key opportunities for upgrading include improving cold chain infrastructure, enhancing access to finance for smallholders, and developing value-added bioproducts from waste.

The report finds that while infrastructure investors have integrated climate change considerations, they lag in measuring other nature impacts like habitat change and pollution. It identifies physical and transition risks associated with biodiversity loss and highlights a shift toward 'nature-positive' investments driven by evolving regulations such as the Kunming-Montreal Global Biodiversity Framework. The document provides case studies of leading practices, including the use of eDNA soil testing and sustainability-linked loans, while noting that a lack of usable data remains a primary barrier to widespread adoption of quantitative biodiversity metrics.

The EU Carbon Border Adjustment Mechanism (CBAM) is a regulatory tool designed to prevent 'carbon leakage' by applying a carbon price to specific imported goods, matching the price paid by EU producers under the EU Emissions Trading System (EU ETS). The mechanism covers cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. It involves a transitional monitoring period starting in October 2023, followed by a definitive phase-in in 2026. Importers must purchase and surrender non-tradeable certificates based on the embedded emissions of their goods. The document highlights the necessity of phasing out free ETS allowances to ensure the CBAM's effectiveness and discusses the potential for reinvesting CBAM revenues into climate mitigation in developing economies.

In the first half of 2024, wind and solar power generated 30% of the EU's electricity, surpassing fossil fuels (27%) for the first time. This transition occurred despite a 0.7% increase in electricity demand. Fossil fuel generation fell by 17%, with coal dropping by 24% and gas by 14%. Renewables overall provided 50% of the EU's electricity, aided by a 21% rebound in hydro generation. Power sector emissions decreased by 17% compared to the same period in 2023, and are 31% lower than in the first half of 2022. While capacity additions are high, the report notes a gap between national ambitions and the EU's 2030 targets under the REPowerEU plan, particularly for wind energy.

The report analyzes the UK's proposed Carbon Border Adjustment Mechanism (CBAM) as a tool to prevent carbon leakage. It highlights key divergences from the EU CBAM, specifically the inclusion of glass and ceramics and the exclusion of electricity, as well as the absence of a transitional period. The document emphasizes the potential administrative and economic burdens on developing countries and LDCs and recommends aligning the UK system with the EU CBAM to reduce bureaucratic hurdles for trading partners.

The report highlights a significant gap in emissions reporting among Indonesia's ten largest coal mining companies, where six fail to include coal mine methane (CMM) in their inventories. Despite national regulations and international standards, CMM emissions are often overlooked in favour of carbon dioxide reductions, potentially doubling the reported emissions of some companies. The document warns that increasing coal production quotas amidst declining global demand creates stranded asset risks and environmental impacts. It recommends that companies adopt comprehensive GHG inventories, re-assess investment risks in light of global methane pricing trends, and implement technical abatement measures such as pre-mine drainage.

Ammonia is essential for global food security via fertilizers and is emerging as a critical low-carbon energy carrier and maritime fuel. While current production relies on fossil fuels—contributing over 1% of global GHG emissions—the transition to 'green ammonia' via electrolysis and renewable energy offers a path to carbon neutrality. RMI forecasts a 113% increase in US ammonia production by 2030, driven by hydrogen exports to the EU and the adoption of ammonia-powered shipping, provided that technical challenges and NOx/N2O emissions are managed.

The briefing establishes that fossil fuels are responsible for approximately 70% of carbon dioxide emissions since the industrial revolution, with a small number of companies contributing a disproportionate share. It highlights the role of attribution science in linking specific extreme weather events to climate change and details the growing trend of using the 'polluter pays' principle in litigation and legislation to hold these companies financially accountable. The document further argues that to meet the 1.5C target, global fossil fuel production must decrease significantly by 2030, supported by a transition to renewable energy and electric vehicles.

The report assesses how border carbon adjustment (BCA) schemes, such as the EU's CBAM, may negatively affect Trinidad and Tobago by increasing production costs and reducing export competitiveness due to the country's lower GHG reduction goals and limited access to finance. While BCAs could incentivize a transition from fossil fuels, stakeholders emphasize that this requires substantial investment and international assistance. The report recommends a phased implementation approach and special treatment for developing countries to balance climate action with equity, adhering to the principle of common but differentiated responsibilities.