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The report analyzes carbon leakage, which occurs when production shifts from regions with high carbon prices to those with lower or no prices, undermining climate policy effectiveness. It examines the EU ETS as a frontrunner and compares it with emerging systems in the US and Japan. The document evaluates mitigation strategies, including free allowance allocation, investment subsidies, and border adjustment measures (BAMs). It specifically analyzes the leakage potential of energy-intensive sectors like cement, steel, and aluminium, and discusses the legal and multilateral challenges of implementing border adjustments under WTO rules.

The document argues that international financial support for climate mitigation in developing countries must shift from simply purchasing cheap carbon offsets to supporting comprehensive low-carbon development strategies. It details a variety of Public Finance Mechanisms (PFMs)—including grants, loans, equity, and risk guarantees—and maps these to the specific needs of project developers, private investors, and governments. The authors emphasize that tailored support is necessary to address incremental costs and high policy and technology risks, suggesting that a 'social value of carbon' could serve as a reference price to stabilize investments. The paper concludes that a combination of bilateral cooperation for flexible grants and multilateral institutions for large-scale loans and guarantees is essential to leverage the private capital needed for a global low-carbon transition.

The report identifies that while Ghana has a target of 10% renewable energy in its energy mix by 2020, progress is hindered by implementation and roll-out barriers, including weak domestic technical capacity, inadequate regulatory frameworks, and limited access to long-term finance. It suggests a combination of market-mandated policies, the use of the Clean Development Mechanism, and the establishment of innovation centres to accelerate technology adoption. The study estimates that removing these barriers with international support could avoid at least 14 million tonnes of CO2 emissions from renewable energy projects and 70,000 tonnes from energy efficiency activities.

The document argues that replacing approximately 16 million inefficient agricultural pump sets in India, combined with the adoption of High Voltage Distribution Systems (HVDS) and mandatory metering, can significantly reduce energy consumption and carbon emissions. It identifies financing as the primary barrier, driven by high upfront costs of efficient pumps and flat electricity tariffs that remove incentives for conservation. The author proposes a phased policy approach moving from pump replacement to metered tariffs, suggesting that international cooperation is most effective for financial support and capacity building rather than technology transfer. The paper also provides a framework of indicators to monitor program initiation, pump deployment, and tariff reform.

The report argues that current UNFCCC reporting, which focuses primarily on greenhouse gas emission outcomes, is insufficient for managing the implementation of mitigation programmes. It advocates for a comprehensive 'basket of indicators'—including input, process, output, and outcome measures—to identify barriers, foster international learning, and ensure accountability. The authors suggest a hybrid reporting model where a small set of internationally harmonised indicators is complemented by tailored, domestically defined indicators to balance global comparability with local ownership.

The report examines co-operative IPR practices—including cross-licensing and patent pools—as mechanisms to overcome patent thickets and accelerate technology diffusion. Using case studies from the mobile telecoms industry (ETSI) and South Africa's pre-paid metering (ESKOM), it argues that such arrangements can reduce litigation risks, lower costs, and enable developing countries to enter markets. The authors suggest that public policy intervention may be necessary to facilitate these arrangements in the low-carbon energy sector, particularly for technologies like wind power and smart grids, to avoid proprietary lock-ins and high costs in developing economies.

The report evaluates development financing experiences to provide evidence on how climate change mitigation finance can be effectively channelled to developing countries. It finds that donor guidelines, rather than sector or country, primarily determine the nature of financial assistance and reporting. The authors argue that programme-based funding is generally preferable to project-based funding for achieving large-scale change, and suggest that a multi-donor trust fund could facilitate the necessary harmonisation of reporting and verification standards.

The report identifies significant financial, institutional, and skill-based barriers that prevent the scale-up of energy-efficient low-income housing in South Africa, despite the availability of simple passive thermal improvements and solar water heaters. It argues that the Clean Development Mechanism (CDM) is an unsustainable model for these projects due to low carbon prices and dispersed savings. Instead, the author proposes 'Direct Support' mechanisms—including framework support for government institutions, project support for developers, and micro-finance/insurance models for homeowners—to provide upfront capital and capacity building. The paper also recommends establishing national energy performance standards and vocational training to bridge the gap between policy and implementation.

The document outlines a three-phase deployment of CSP in South Africa, targeting 100 GW of capacity by 2050 to save 3,850 Mt CO2-eq. It identifies critical barriers in technology, regulation, and infrastructure, specifically highlighting the need for grid expansion in the north-west and the operationalization of the Renewable Energy Feed-In Tariff (REFIT). The authors argue that international financial support is essential to overcome high investment costs and risk, proposing specific funding mechanisms for R&D and infrastructure.

The document argues that shifting to low-carbon technologies requires a comprehensive 'enabling environment' consisting of innovation capacity, human and institutional skills, regulatory frameworks, and finance. It proposes a capability-innovation framework to match international support mechanisms to a country's specific level of development and the maturity stage of the technology (R&D, demonstration, deployment, and diffusion). The authors suggest that Nationally Appropriate Mitigation Actions (NAMAs) should serve as the primary vehicle for developing countries to define domestic needs, which can then be supported by tailored international mechanisms such as R&D cooperation, Global Technology Demonstration Funds, and technical assistance. The paper emphasizes that for these mechanisms to be effective, they must be coordinated with domestic policy and monitored through specific quantitative indicators to facilitate international learning and accountability.

The Climate Strategies Research Prospectus 2009 details a comprehensive program of academic research designed to support government decision-makers. The work is organized into three primary themes: industrialised country commitments and global market mechanisms (including carbon leakage and emissions trading system linkages), global engagement, technology and finance (focusing on the UNFCCC's Reformed Financial Mechanism and technology innovation centres), and industry-specific sectoral approaches (specifically the steel and maritime sectors). The organization operates as a not-for-profit network, convening international experts to provide independent, fact-based assessments for policy formation, with a particular emphasis on the European Union, North America, and the Asia-Pacific region.

The policy brief examines the trade-off between free allowance allocation and border adjustments in emission trading schemes. It argues that while free allowances protect against carbon leakage, they undermine the effectiveness of carbon pricing. The author proposes that combining full auctioning with border adjustments—strictly limited to carbon-intensive commodities and based on the carbon intensity of best available technology—can address leakage. However, to avoid WTO violations and suspicions of protectionism from developing countries, these measures must be pursued through international cooperation rather than unilaterally.

The document examines the transition from fragmented regional carbon markets to a global architecture, analyzing the risks of market manipulation, environmental integrity failures, and the technical challenges of linking different systems. It proposes a framework of institutional functions—ranging from decentralized cooperation to centralized oversight—to manage price volatility, ensure robust monitoring, reporting, and verification (MRV), and regulate financial derivatives to prevent excessive speculation.

The report assesses the Clean Development Mechanism (CDM), noting significant project attrition and regulatory delays. It highlights the marginalization of Sub-Saharan Africa and the challenges faced by Indian industry, such as stringent additionality tests. The authors propose shifting toward programmatic and sectoral CDMs, suggesting specific reforms for the Chinese steel sector and the use of 'Retirement-CER Obligations' to support the Bali Action Plan.

The report analyzes the Clean Development Mechanism's (CDM) successes and failures, noting a heavy concentration of projects in China, India, and Brazil, while Africa remains largely sidelined. It argues that current project-based modalities and stringent additionality rules create high transaction costs and barriers for Least Developed Countries (LDCs). The authors propose shifting toward programmatic CDM to support small-scale projects and sectoral CDM to address heavy industry, specifically analyzing the Chinese iron and steel sector. Key recommendations include retiring CERs to ensure global emission reductions and reforming additionality testing to be more pragmatic and inclusive.

The document analyzes a draft 'climate doctrine' discussed by the Russian Cabinet on 23 April 2009, which frames climate change mitigation and energy efficiency as economic opportunities rather than costs. It notes that the doctrine recognizes the potential for unchecked climate change to reduce Russian GDP by 25% and suggests that the shift in high-level thinking could facilitate a more constructive Russian position for the Copenhagen negotiations. However, the author cautions that a lack of civil society pressure and the need for international recognition—particularly from the United States—could limit the doctrine's impact.

The report assesses the potential for linking regional and national emissions trading systems (ETS) to create a broader carbon market. It concludes that while an OECD-wide company-level market by 2015 is highly ambitious, linking serves as a critical bottom-up fallback option to top-down international regimes. The study identifies significant barriers to full bilateral linking, including divergent monitoring, reporting, and verification (MRV) provisions, differing offset eligibility, and a lack of consensus on carbon price levels. However, it suggests that unilateral links to international offset mechanisms and indirect links via credits are more likely in the short term.

The report assesses the potential for linking emissions trading schemes (ETS) globally, concluding that an OECD-wide company-level carbon market by 2015 is a "highly ambitious goal." It identifies that while the EU ETS seeks to be a nucleus for a global market, most emerging schemes prioritize domestic price control over full bilateral linking. The study highlights significant barriers to linkage, including divergent target stringencies, the use of intensity-based targets (notably in Canada), and different cost-containment measures like price caps. It distinguishes between unilateral links (one-way recognition), bilateral/multilateral links (mutual recognition), and indirect links (via common mechanisms like the CDM). The report also examines the legal complexities of such links, particularly the constraints on US state-level agreements and the EU's regulatory mandates. It suggests that a "bottom-up" process of linking regional markets could serve as a fallback if top-down international agreements, such as a Kyoto successor, fail.

The paper investigates the potential of CER discounting to address CDM shortcomings, such as non-additionality and the uneven distribution of projects. By analyzing abatement cost curves for China, India, advanced Asian countries, and LDCs, the authors find that while discounting can increase costs for advanced developing countries and potentially incentivize them to adopt their own mitigation commitments, it is insufficient on its own to make LDCs competitive. The study concludes that financial, technical, and institutional barriers in LDCs must be overcome for them to realize their theoretical abatement potential, as the abundance of cheap projects in countries like China continues to dominate the market.

The research paper examines the marginal role of Least Developed Countries (LDCs) in the Clean Development Mechanism (CDM) and evaluates whether preferential access to the EU ETS can increase their participation. It finds that such access is insufficient unless underlying barriers—including limited institutional capacity, lack of financing, and high transaction costs—are addressed. The authors use supply-demand scenarios for 2013-2020 and a comparison with the Lomé Conventions in agricultural trade to argue that financial incentives for high-value projects and reduced access costs are more critical than market access alone.