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The report argues that the EU ETS is failing due to a massive oversupply of allowances caused by the 2008 economic recession and industrial overallocation. Sandbag identifies a total excess of 3.1 billion tonnes (Gt) of allowances, including 2.2Gt from obsolete demand forecasts and 0.9Gt from industrial overallocation. The document highlights that 78% of the net surplus is concentrated among ten steel and cement companies, which have generated significant revenues from selling surplus permits. To remedy this, the report recommends the permanent cancellation of 3.1Gt of allowances from Phase 3 auctions, the establishment of a more ambitious Phase 4 carbon budget aligned with 2050 goals, and the introduction of mechanisms like a "heat exchanger" and a strategic demand-correction reserve to protect the system from future exogenous shocks.

The document examines the Basel III framework, which introduces higher capital standards, liquidity ratios, and leverage limits to prevent systemic risk. While intended to increase resilience, the author argues that Basel III may increase borrowing costs, reduce lending to small businesses in emerging economies, and encourage the growth of the unregulated 'shadow banking' sector. The paper also highlights that Basel III inherits flaws from Basel II, such as a failure to account for the specific macroeconomic needs of lower-income countries.

The document examines the transition of over-the-counter (OTC) derivatives markets toward central clearing via central counterparties (CCPs) following the 2007–2008 financial crisis. While CCPs can enhance stability by reducing counterparty credit risk and price volatility, the author argues they may introduce new systemic risks, such as destabilizing margin calls and the potential for CCP insolvency. The paper concludes that current regulatory efforts, including the Dodd-Frank Act and EU regulations, are reallocating rather than reducing risk, and warns that a loophole for 'individually negotiated' contracts could lead to further deregulation.

The paper examines the politicized nature of the rice sector in Southeast Asia, where domestic priorities and protectionism often lead to market volatility. It highlights how the 2007–2008 food price crisis drove countries toward insular strategies and 'rice sovereignty'. The authors propose that ASEAN can improve food security by enhancing the ASEAN Food Security Information System (AFSIS) for better transparency and fully actuating the ASEAN Plus Three Emergency Rice Reserve. The document suggests that these cooperative mechanisms can build trust and stability in the international market, providing a more effective alternative to myopic domestic focuses.

The report examines the role of small, micro, and medium enterprises (SMMEs) in driving a 'pro-poor' green economy in developing countries. Based on a three-year study of over 1,300 enterprises, it finds that these entities provide critical environmental services and poverty alleviation but face significant barriers, including limited access to finance, technical expertise, and a disconnect between national macro-strategies and local implementation. The document argues for a shift toward hybrid business models and the adoption of Triple Bottom Line planning to ensure financial sustainability and measurable impact.

The document defines Measurement, Reporting and Verification (MRV) as processes to provide and assess factual information to ensure parties meet their obligations. It notes that while the Bali Action Plan initiated MRV requirements, there is currently no clear, agreed-upon global framework, leading to fragmented reporting and a lack of trust between developed and developing nations. The text highlights a central tension: developed countries generally seek uniform standards for all, while developing countries advocate for differentiated standards and increased financial and technical support to build reporting capacity. The author argues that a standardized, transparent MRV system is essential for accountability, building trust, and tracking progress toward the UNFCCC's goal of reducing greenhouse gas emissions.

The Bottom-Up Energy Analysis System (BUENAS) is a policy analysis tool developed by Lawrence Berkeley National Laboratory to model energy demand for appliances and equipment in the residential, commercial, and industrial sectors. It projects energy consumption from 2005 to 2030 across 12 individual countries and the European Union, covering approximately 62% of global final energy demand (increasing to 77% if China is included). The model utilizes a modified Kaya identity—Energy = (Activity × Intensity) / Efficiency—and is implemented via the Long-Range Energy Alternatives Planning (LEAP) system. BUENAS evaluates three scenarios: Business As Usual (BAU), Recent Achievements (modeling MEPS implemented or announced between 2010 and 2011), and Best Practice (assuming the adoption of the world's most stringent standards by 2015). Results indicate that the Best Practice scenario could reduce CO2 emissions by approximately 988 mt by 2030, with the most significant electricity savings projected in the residential (27%) and commercial (22%) sectors.

This research paper examines the global significance of Rare Earth Elements (REEs), China's dominant market position and strategic export restrictions, and South Africa's role in establishing non-Chinese supply chains through specific mining projects.

The briefing argues that the G20 and Rio+20 summits lack concrete deliverables and proposes a 'green growth guarantee' to provide developing countries with indicators, planning support, financial engagement, and peer review. The author highlights the growth of catalyst funds leveraging private investment and the need for a unified approach to sustainable development planning to avoid duplicating efforts across different international frameworks.

The report evaluates the first two phases of the EU ETS, finding that while it successfully capped emissions, its actual abatement impact was modest (40–80 MtCO2/yr) and heavily influenced by the 2008-2009 financial crisis. It notes that the system failed to drive large-scale long-term low-carbon investment due to price volatility and over-allocation. The analysis also highlights significant 'windfall profits' in the power and industrial sectors resulting from free allowance allocations and the pass-through of carbon costs to consumers. The document concludes by suggesting strengthening measures such as price floors and set-asides, and reviews similar emerging schemes in jurisdictions like Australia, China, and the USA.

The authors examine the transition from traditional public administration to New Public Management (NPM) in South Africa. They argue that the post-apartheid state's desire to distance itself from the 'bureaucratic' nature of the apartheid regime led to the creation of autonomous agencies like CIPRO, which suffered from a confused identity as both a government regulator and a business entity. This structural flaw, combined with a neglect of core administrative processes, resulted in severe operational failures, including high staff turnover, corruption, and the hijacking of companies.

The document argues that Hong Kong serves as a critical hub for South African entry into China due to its free-market economy, legal framework, and logistics infrastructure. It examines the broader China-South Africa strategic partnership, noting that while trade has grown significantly, South Africa struggles with a trade imbalance and a lack of mineral beneficiation. The author suggests that while Hong Kong will remain a key gateway for at least ten years, South Africa should expand its diplomatic presence in other Chinese cities to maintain competitiveness as new regional hubs emerge.

The report analyzes the shift in international development cooperation following the Busan High Level Forum, highlighting the rise of South-South cooperation and the challenge emerging powers pose to the OECD-DAC's Paris Declaration. It notes a transition from a narrow 'aid' agenda toward 'development effectiveness' and economic growth, particularly in Africa, where the influence of traditional Western donors is declining in favor of results-oriented investments from countries like China, India, and Brazil. While the Busan Outcomes Declaration seeks a more inclusive Global Partnership for Effective Development Cooperation, the document argues that a fundamental divide persists between Western aid practices and the mercantilist, tied-aid approaches of emerging economies.

The report traces the history of ASAT programs, focusing on the United States and Russia/Soviet Union, while noting emerging capabilities in China and India. It details various technologies—including kinetic-kill, co-orbital, laser, and jamming systems—and assesses the risks of space debris and conflict escalation. The document also reviews diplomatic attempts to prevent an arms race in outer space, such as the Outer Space Treaty and various codes of conduct.

The report analyzes the global shift in carbon pricing dynamics away from a US-centric model toward Asia-Pacific initiatives, including Korea, Australia, and Chinese pilot schemes. It argues that while the US Federal government remains deadlocked, other industrialised nations must implement carbon pricing to avoid stranded assets and maintain international credibility. Using the EU ETS as a primary case study, the document highlights the effectiveness of cap-and-trade in delivering operational emission savings and the importance of 'easing policies' like free allocation to protect trade-exposed, carbon-intensive industries. It emphasizes that carbon pricing is a 'necessary but not sufficient' tool, requiring complementary measures such as energy efficiency programs and strategic revenue recycling to support low-carbon innovation. The author suggests that regional cooperation and the potential for 'border levelling' measures after 2020 may be necessary if global agreements fail.

The report estimates that at least USD 97 billion per annum in climate finance was provided in 2009/2010, with private finance (USD 55 billion) significantly outweighing public finance (at least USD 21 billion). The vast majority of these funds (USD 93 billion) are directed toward mitigation, while adaptation receives only USD 4.4 billion. The analysis highlights a critical lack of standardized definitions and a significant gap in data regarding the effectiveness of these financial flows.

The Clean Air Task Force argues against the 'zero-sum' race metaphor between the US and China regarding clean energy, suggesting instead that China's capacity for large-scale demonstration and investment provides a 'test bed' that can benefit the US through 'reverse innovation' and capital flow. While acknowledging trade disputes and IP theft, the author suggests the US focus on high-end design and systems integration rather than low-end commodity manufacturing, which is increasingly automated or cost-prohibitive to ship.

The International Partnership on Mitigation and MRV, launched in May 2010 by Germany, South Africa, and South Korea, focuses on supporting developing countries in designing National Low Carbon Development Strategies (LCDS), Nationally Appropriate Mitigation Actions (NAMAs), and systems to measure, report, and verify mitigation actions. This document serves as an input for the Partnership's sixth meeting in Panama City in October 2011, reviewing previous discussions to improve future value to the climate community.

The paper examines the instrumental link between income inequality and social trust, which is considered essential for the collective action required for sustainability. Using a generalized linear mixed model (GLMM) on World Values Survey data from 20 country-year combinations, the author finds that both absolute income and income inequality significantly influence social trust. Specifically, trust rises with income but falls as income inequality (measured by the Gini coefficient) increases. The analysis suggests that neither economic growth nor redistribution alone is sufficient to significantly raise trust levels in low-trust societies; instead, a combination of stable growth and narrowing income distributions over approximately two decades is required to produce meaningful changes in social cohesion.

The document examines the liberalisation of India's service sector since 1991, focusing on telecommunications, banking, higher education, and retail distribution. It finds that while liberalisation has driven significant GDP growth and export increases, the pace and success vary by subsector due to regulatory hurdles, political will, and stakeholder conflicts. The paper emphasizes that successful liberalisation requires strong regulatory frameworks and enforcement capacity, noting that India's multilateral commitments often lag behind its autonomous domestic reforms.