PROJECTS

The Carbon Footprint of Neptun Deep

The purpose of the Climate-Trade Nexus Assessment (CTNA) is to explore how trade-based climate measures that aim to address international GHG leakage resulting from domestic climate policy measures in key industries might be designed to account for the legitimate differences that characterize climate policy across various developing country trading partners.

Understanding the role of GHGs embodied in traded goods and the intersection of climate and trade policy is imperative to support the transition to a low carbon economy to meet the goal of net zero greenhouse gas (GHG) emissions by 2050. Carbon border adjustments (CBA) on imported goods in the form of charges, fees or other compliance obligations, are one policy approach aiming to address the concern about carbon leakage that is of particular interest to countries that have implemented or are considering carbon pricing measures.

CTNA will survey climate policy in key emerging and developing economies and will explore and seek to propose ways in which their various approaches to climate policy might be fairly and meaningfully accommodated to support low carbon trade without undue negative impacts. It will further explore objective metrics for assessing and comparing relative levels and costs of domestic climate actions, and opportunities to expand the relevance and efficacy of existing arrangements for multilateral cooperation and engagement.

Governments are increasingly contemplating measures such as carbon border adjustments (CBA), as taxes or fees, in part to increase their trading partners’ climate ambitions.  Such policies largely reward trading partners that apply an explicit “carbon price” to GHGs from the goods they produce. While a growing number of exporters are implementing impactful climate measures, few major export countries with sizable or fast-growing export industries tax their domestic GHGs but do exhibit lagging sustainable development indicators.

Thus, this program will also apply these outputs to identify and engage in direct capacity-building consultations focused on the selected target countries with affected export industries.  Through these activities, the Climate-Trade Nexus Assessment will position country decision-makers to reconcile emerging trade-related climate policies with their domestic objectives for trade, climate change mitigation, and sustainable development—and ultimately, to materially contribute to deepening cuts in GHGs across the global trading system.

The project focuese on five different countries for focused analysis and engagement, Brazil, India, Mexico, South Africa and Turkey. The project will conduct a broad survey of methodologies for comparing and assessing national-level and/or sector- or industry-level climate change ambition expressed in climate policies, including those related to carbon market and pricing policies. Relevant data and documents will be collected to understand the current context of climate policy landscape in each countries. A comparative analysis of policy approaches and options will be undertaken for each country, with inputs gathered from relevant stakeholders through in-country and public virtual workshops. The project will propose modalities to accommodate a variety of domestic climate policy designs in international trade-related climate measures based on the findings and experience with the focus countries. The outcomes and outputs of the project will be disseminated through public virtual workshops and a global milestone event.

Climate Trade Nexus (CTN) Assessment – Mexico Workshop – ERCST

Climate Trade Nexus (CTN) Assessment – Brazil Workshop – ERCST

Climate Trade Nexus (CTN) Assessment – South Africa Workshop – ERCST

We are pleased to announce our new project on “The Future of the EU ETS”. This is an important topic that will accompany the European Commission discussions on the future of the EU ETS. Leveraging ERCST’s expertise and recognition in EU ETS discourse, the “Future of the EU ETS” project aims to provide original analytical insights, pinpoint challenges, and propose solutions for the evolution of the EU ETS during the second Phase of phase IV (2025-2030) and post-Phase IV. The project will investigate the system’s impact on key sectors such as power and industry and explore implications for governance relevant to EU policymakers.

For the project, ERCST will put into place an independent review process of a range of key issues, working closely with an Advisory Group and in collaboration with EU Institutions and EU Member States. While taping in the knowledge and insights that the Advisory Group has to offer, ERCST will maintain its role as an independent think tank which will provide evidence-based outputs and will take into account advice and information from all credible sources.

The Advisory Group comprises representatives from:

CEFIC – European Chemical Industry Council	European Aluminium
CEMBUREAU	ExxonMobil
CEPI – Confederation of European Paper    Industries	Fertilizers Europe
EDF- Électricité de France	Fuels Europe – European Fuel Manufacturers Association
ENEL	PGE
EuLA – The European Lime Association	Danish Ministry of Climate, Energy and Utilities
Eurelectric – Union of the Electricity Industry	French Ministry of Ecological Transition
Eurofer – European Steel Association	German Federal Ministry for Economic Affairs and Climate Action
Eurometaux – Association Européenne des Métaux	Ministry of Climate and Environment of the Republic of Poland

 

This project will address the following issues:

1.           Coverage of ETS

2.          Agriculture

3.          Price signal and competitiveness

4.          Carbon removals

5.          Role of ETS in EU climate policy

6.          Market functioning

7.          Architecture and governance