Implementing carbon pricing mechanisms (CPMs) that impose fees on emissions in the power and industrial sectors can be a powerful tool to affect current production and consumption patterns. Under last year’s Sofia Declaration, Western Balkan countries pledged to align their climate change mitigation efforts with the EU targets and programs. Policy makers have declared pricing carbon to be one of the most important instruments in the effort to concretize political promises. However, the Western Balkan region has limited experience with carbon pricing initiatives – and only Albania and Montenegro have taken their first tentative steps so far. Daniel Muth has the details.
The change of power in Washington has opened up a new window for transatlantic climate cooperation, a stated priority for the Biden administration and the European Commission. The first piece in this series examined the political obstacles on the US side. What is the outlook on the EU side?
To face social and environmental problems generated by fossil energies, market-based solutions have emerged to tackle these challenges on a broader scale. These proposals are often also framed as a “green” approach to economic growth. They include e.g. regulatory disincentives for emitting CO2 through a form of carbon pricing or more specifically, emissions trading systems (ETS) and carbon taxes. Although their rationale sounds adequate, their design and implementation are flawed from different points of views and subsequently result in a minimal decrease of CO2 emissions. The following analysis will focus on the main causes of this (political) deficiency with a focus on Latin America. Maximiliano Proaño has the details.
The European Union (EU) is planning to tax carbon-intensive products as a strategy to decrease global emissions and avoid carbon leakage. But will exporters be able to adapt? Lilia Maximova, Gabriela F. Kilpp, Natalia Koto, and Bárbara Martins take a look.
But there’s fight-back from the old guard – in Chancellor Angela Merkel’s own party – as well as from Europe’s so-called ‘frugal four’: Austria, the Netherlands, Sweden and Denmark. Nevertheless, Merkel is going further than ever before in backing the European Green Deal, higher EU climate targets, and renewable energy across Europe. Paul Hockenos has the story.
On July 12, a group of economists called on the German government to take quick climate action. This new proposal packs because the messenger officially advises the government – and doesn’t come from the climate camp. Craig Morris reports
In the run-up to the EU elections, German Environmental Minister Svenja Schulze has now said that she supports French President Macron’s climate plan, including a floor price for carbon. And Chancellor Merkel has now joined her in calling for “carbon net neutrality” by 2050. But the market can’t fix everything, says Craig Morris.