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The German government, through the German Federal Environment Agency, commissioned a consortium consisting of NewClimate Institute, Germanwatch, and the 2° Investing Initiative to explore criteria to measure the alignment of investment and financing with the 2°C limit. The project focuses in particular on development finance institutions. This report was prepared in the context of the G7 summit meeting. It maps existing 2°C relevant criteria used by financial institutions and discusses what 2°C criteria might look like for key investment areas.

This discussion paper provides an overview of the development of the international carbon market mechanisms and emerging domestic carbon pricing systems, and lays out three distinct but potentially complementary options for market mechanisms in a future climate change agreement. Options for narrowing the emissions gap before 2020 using market mechanisms are also explored. Recommendations for short term action for the G7 countries are given.

The Clean Development Mechanism (CDM) has become one of the world’s most important carbon market instruments, diffusing carbon price signals worldwide, stimulating major private investments in climate change mitigation projects worldwide, and supporting the development of mitigation action in developing countries. Following the recent decline of the market conditions, the situation of project activities, in addition to domestic and international capacities related to the CDM, have noticeably deteriorated. This research conducted by NewClimate Institute and Ecofys on behalf of the German...

This report elaborated by PBL, NewClimate Institute, IIASA and Ecofys provides an overview of projected greenhouse gas (GHG) emissions of seven major emitting countries (Brazil, China, India, Indonesia, Japan, Mexico, and the United States) out to 2030, taking into account the emissions trajectories based on current and selected enhanced policies. Earlier studies have explored the extent to which major economies are on track to achieve their 2020 pledges under the Cancun Agreements. This report extends these analyses for seven selected countries in several ways. First, the effect of planned...

Niklas Höhne and Hanna Fekete are authors of this year’s UNEP Emissions Gap Report. It informs governments and the wider community on how far the response to climate change has progressed over the past 12 months, and thus how far the world is currently positioned to meet the internationally agreed 2˚C limit to global warming. The fifth Emissions Gap Report goes beyond an analysis of scientific reality and the current level of ambition of nations by proposing concrete solutions on how the ambitions gap could be closed.

NewClimate Institute staff prepared the process guidance paper entitled ‘Process guidance for Intended Nationally Determined Contributions (INDCs)’ for the International Partnership on Mitigation and MRV. This process guidance paper is based on early experiences of some countries and the international debate on INDCs and seeks to assist country governments in the preparation of their INDCs. The Conference of the Parties (COP 19) in Warsaw decided to “initiate or intensify domestic preparations for their intended nationally determined contributions” so that they can be submitted well in advance...

The international carbon market is in a state of transition, moving away from project-based carbon market mechanisms like the Clean Development Mechanism (CDM) towards new international mechanisms which have yet to be defined and finalised. The poor demand for carbon certificates and the uncertainty surrounding the design of a New Market Mechanism (NMM) hinders the initiation of new reduction activities in developing countries via the carbon market. In this current phase, bilateral agreements could provide a basis to allow immediate implementation of pilot projects which would allow practical...

The current project-based carbon market mechanisms such as the Clean Development Mechanism (CDM) and the Joint Implementation (JI) do not have a direct impact on global greenhouse gas emission levels, because they only replace or offset emissions. Nor do they contribute to host country׳s national greenhouse gas emission reduction targets. Contributions to net emission reductions in host countries is likely to become mandatory in new mechanisms under development such as in the framework for various approaches, a new market-based mechanism and even in a reformed JI. This research analysed the...

This CDI Practice Paper addresses the role of tools in supporting interventions to achieve the ‘triple wins’ of adaptation, mitigation and development. Over recent years there has been a proliferation of guidance tools to support adaptation or mitigation, increasingly in a development context, but little work on the role tools play in helping to bridge the gap between these three areas in practice. Based on a review of tools in view of ‘climate compatible development’, the paper suggests key considerations for how tools could help achieve ‘triple wins’. They include: the importance of...

Many of the major greenhouse gas emitting countries have planned and/or implemented domestic mitigation policies, such as carbon taxes, feed-in tariffs, or standards. This study analyses whether the most effective national climate and energy policies are sufficient to stay on track for meeting the emission reduction proposals (pledges) that countries made for 2020. The analysis shows that domestic policies of India, China and Russia are projected to lead to lower emission levels than the pledged levels. Australia's and the EU's nationally legally binding policy framework is likely to deliver...

This article explains the nature of the new pilot greenhouse gas emission trading schemes (ETS) in China, as well as the significance of their introduction. By moving towards the allocation of emission rights through market mechanisms, the government is signalling that it is addressing climate change seriously and that it wishes to be compared to Europe and the most progressive regions of North America that have also adopted emissions trading. However, the authors also argue that a transition to a more important role for markets in the area of energy and the environment is still in its very...

Monitoring, reporting, and verification (MRV) requirements in the Clean Development Mechanism (CDM) are perceived to be of high quality, but also complex and stringent. Only one-third of the registered projects successfully managed initial verification and already received carbon credits.

The results are presented from a survey of national legislation and strategies to mitigate climate change covering almost all United Nations member states between 2007 and 2012. This data set is distinguished from the existing literature in its breadth of coverage, its focus on national policies (rather than international pledges), and on the use of objective metrics rather than normative criteria. The focus of the data is limited to national climate legislation and strategies and does not cover subnational or sectoral measures. Climate legislation and strategies are important because they can...

The paper proposes a clear process for regularly updating and strengthening national commitments. The climate regime needs to move out of continuous negotiation and into a framework of continuous implementation. The paper proposes no explicit differentiation of countries. Rather countries would propose nationally determined commitments, guided by the multilaterally agreed phase out goal and the international review. This would maximize participation. The Agreement should also include provisions for recognizing the actions of parties unable to ratify and for deterring egregious cases of free...

Over 40 studies that analyse future GHG emissions allowances or reduction targets for different regions based on a wide range of effort-sharing approaches and long-term concentration stabilization levels are compared. This updates previous work undertaken for the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Regional reduction targets differ significantly for each effort-sharing approach. For example, in the Organisation for Economic Co-operation and Development (OECD) 1990 region, new proposals that emphasize the equity principles of responsibility, capability...