Engines have become more efficient over the past ten years, but this increase in efficiency has been offset to a large extent by greater comfort and higher performance. German automakers will have to adjust their policy. - Future mobility – today‘s best investment - Environmental protection – a barrier to investment for agriculture? - Emissions trading – the engine of climate policy Veröffentlicht in Broschüren.
This paper examines the connection between Nationally Determined Contributions (NDCs) under the Paris Agreement on the one hand and carbon leakage on the other. Firstly, this is done by considering different types of emission targets in the NDCs. With an NDC in a carbon leakage receiving country, shifted emissions in many cases require increased mitigation efforts, so carbon leakage comes at a cost to these countries. Secondly, entrepreneurial decisions are examined more closely. The mere existence of NDCs should already have an influence on them, albeit not on immediate production decisions (production leakage), but on medium- and long-term investment decisions (investment leakage). Veröffentlicht in Climate Change | 43/2019.
This paper structures and summarises some of the debates around carbon leakage: Carbon leakage as a problem for the effectiveness of unilateral (or non-harmonised) climate policy, for its economic efficiency in terms of reducing emissions at least cost, for the competitiveness of businesses, and as a possible contradiction for the emerging discussion on radical innovations and industrial restructuring towards a low-carbon economy. A second part of this paper discusses the different channels through which carbon leakage may occur. This includes production (or operational) leakage, investment leakage, leakage transmitted through resource markets and finally indirect leakage. Veröffentlicht in Climate Change | 16/2018.
Electricity generation is the largest source of greenhouse gas emissions in many countries. Most emissions trading systems (ETS) therefore address emissions from electricity generation. The de-sign of an ETS and the structure and regulation of the electricity sector have a large impact on the environmental effectiveness and the quality of the carbon price signal. This report analyses the interaction of carbon and electricity markets in two pilot systems in China: Hubei and Shenzhen. The two pilot systems have adopted very different design features due to the specific local circum-stances. Due to strong government regulation of China’s electricity sector, carbon pricing has played a very limited role in driving low carbon investments. A more market-oriented electricity trading market and deregulation of electricity pricing for certain end-users seems necessary for an effective ETS in China. However, this will depend on the political acceptability of electricity price increases resulting from a strong carbon price signal. This case study is part of the project “Influence of market structures and market regulation on the carbon market” that aims to identify the impact of market structures and regulations on carbon markets and to investigate the interdependencies between carbon and energy markets in Europe, California, China, South Korea, and Mexico. Veröffentlicht in Climate Change | 37/2021.
The Methodological Convention 3.0 for the Assessment of Environmental Costs contains recommendations for methods to assess environmental costs (Part “Methods”) and provides new cost rates for emissions of greenhouse gases, air pollutants and noise, as well as for transport and energy generation (Part “Cost rates”). The cost rates show the benefit of environmental protection for society – and the costs that society incurs if environmental protection is neglected. The cost rates can be used to assess the impacts of laws and public investments, and for the design of economic instruments. In the corporate sector, the cost rates can be used, i.a., to calculate the environmental costs of production and in sustainability reports. The new version of the handbook – the „Methodological Convention 3.1” – has been published in German on December 21, 2020. It contains an update on the cost rates published in the “Methodological Convention 3.0” as well as new cost rates for building materials, emissions of nitrogen and phosphorus, and GHG emissions in agriculture. An English version will be available early in 2021. Veröffentlicht in Broschüren.
Electricity generation is the largest source of greenhouse gas emissions in many countries. Most emissions trading systems (ETS) therefore address emissions from electricity generation. The de-sign of an ETS and the structure and regulation of the electricity sector have a large impact on the environmental effectiveness and the quality of the carbon price signal. This report analyses the potential interaction of carbon and electricity markets in Mexico. The Mexican ETS started as pilot scheme in 2020 with the aim to gather experience in the implementation of an ETS without having impacts on the economy. Due to this, no carbon price has been established yet and the political uncertainty about future climate and energy policy is high. While it is unlikely that the trading sys-tem will have a noticeable impact in the short term on demand, supply, or investments, a carbon price has the potential to spur renewable energy growth under an appropriate electricity market regulation. The potential for short-term fuel switching is low, as natural gas is already the cheapest fossil fuel in the merit order. This case study is part of the project “Influence of market structures and market regulation on the carbon market” that aims to identify the impact of market structures and regulations on carbon markets and to investigate the interdependencies between carbon and energy markets in Europe, California, China, South Korea, and Mexico. Veröffentlicht in Climate Change.
Das geplante Freihandelsabkommen mit den USA (Transatlantic Trade and Investment Partnership - TTIP) hat unter anderem das erklärte Ziel, durch die sogenannte Regulatorische Kooperation die Standards in der EU und den USA so weit wie möglich zu vereinheitlichen. Für den Umweltschutz in der EU birgt eine nicht sachgerechte Gestaltung der Regulatorischen Kooperation jedoch erhebliche Risiken: Umweltstandards könnten sinken und die Umwelteigenschaften von Produkten gefährdet werden. Veröffentlicht in Position.
Conditions for investment in climate protection are quite favorable. Nevertheless, financial resources continue to flow into fossil energy sources. This is accompanied by risks. To assess these risks, UBA has had a method developed which allows financial institutions to roughly estimate transitory climate risks. Simulating the economic development of certain key industries shows that climate risks are expected to increase in the year 2030. This goes hand in hand with increasing financing costs of activities that involve high environmental risks while ecologically sustainable investments are getting financially more attractive. Veröffentlicht in Texte | 23/2021.
In order to explain how future policies in transport should be formulated, it is necessary to understand that sustainability in transport does not only imply transport infrastructure, but can be embedded in a broader policy approach. Financing of infrastructure, investments in public and non-motorised transport, institutional development and road maintenance all require significant funding. Since developing countries face severe financial limitations, budgetary considerations should become the starting point of planning. Available funds – both grants and loans – must be assessed carefully and then spent effectively and rationally. This means tackling the tendency of policy makers to favour prestige projects, and instead convincing them to adopt a sustainability-oriented prioritisation of transport projects. Veröffentlicht in Texte | 71/2013.
The Methodological Convention 3.1 for the Assessment of Environmental Costs – Value Factors provides value factors for emissions of greenhouse gases, air pollutants, noise, nitrogen and phosphorus, as well as for transport, energy generation, building materials and greenhouse gas emissions in agriculture. The value factors show the benefit of environmental protection for society – and the costs that society incurs if environmental protection is neglected. The value factors can be used to assess the impacts of laws and public investments, and for the design of economic instruments. In the corporate sector, the cost rates can be used, i.a., to calculate the environmental costs of production and in sustainability reports. Veröffentlicht in Broschüren.
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