Mauro Pisu, Filippo Maria D’Arcangelo, Ilai Levin, Asa Johansson, 14 February 2022

Despite the commitments of the 2021 UN Climate Change Conference, countries’ climate mitigation policies are not enough to meet their ambitious emissions reduction targets. This column puts forward a framework for designing comprehensive decarbonisation strategies that promote growth and social inclusion. A policy mix based on three components is needed: (1) emission pricing, (2) standards and regulations, and (3) complementary policies that offset distributional effects. A robust and independent institutional framework and credible communications campaigns are key to managing policy constraints and enhancing public acceptance of mitigation policies.

Jun Arima, 26 January 2022

The 26th UN Climate Change Conference of the Parties (COP26) concluded ‘successfully’ with the adoption of the Glasgow Climate Pact. The agreement was the first to target specific energy sources. This column reviews the COP26 landscape and the challenges going forward. Developing countries are expected to continue pressuring industrialised ones to achieve net zero sooner and raise nationally determined contributions. The lack of space for realistic international discussions on energy security may limit the effectiveness of pushing the COP26 standards.

Lukas Boer, Andrea Pescatori, Martin Stuermer, Nico Valckx, 05 November 2021

Low greenhouse gas technologies require more metals than their fossil fuel-based counterparts. This column estimates supply elasticities and pins down the price impact of the energy transition on the metals markets. The results show that prices for copper, nickel, cobalt, and lithium could reach historical peaks for an unprecedented, sustained period in a net zero emissions scenario. The total value of production could rise more than four-fold for the period 2021-2040, rivaling the total value of crude oil production.

Emanuela Benincasa, Gazi Kabaș, Steven Ongena, 03 November 2021

The stringency of climate policy varies from one country to the next. This column examines global syndicated loans to show that banks increase their cross-border lending in response to greater climate policy stringency in their home country, if the home country has more stringent climate policy than the borrowers' countries. Used in this way as a regulatory arbitrage tool, cross-border lending can reduce the effectiveness of climate policies if global coordination is not enforced.  

Alexander Ludwig, 26 October 2021

A new CEPR ebook focuses on climate policies that it calls "no-brainers” and  "low-hanging fruit”. How far do they get us towards net zero and why, if they really are so obvious, are they not being enacted?

Francesco Caselli, Alexander Ludwig, Rick van der Ploeg, 08 October 2021

The target for global warming agreed on in the 2015 Paris Agreement implies that effective policies must be implemented to reduce emissions for the whole planet as soon as possible and reach net zero in the second half of the 21st century. The contributions in a new CEPR eBook aim to identity, for each of the featured nations, which climate change policies will have the fastest and/or largest cumulative impact, and which are the most technically, financially, or politically feasible. Although the low-hanging fruit in climate policy vary across countries, this does not mean that one country cannot learn from the debates taking place in another.

Patrick Bolton, Stefan Reichelstein, Marcin Kacperczyk, Christian Leuz, Gaizka Ormazabal, Dirk Schoenmaker, 04 October 2021

The overwhelming majority of publicly listed companies around the world still do not disclose their carbon emissions, and even fewer privately held companies do so. This column introduces a new CEPR Policy Insight in which the authors argue that mandatory carbon disclosures can make an elementary but essential contribution to the global drive towards a net zero economy, and recommend a mandate for the governments represented at COP26 to adopt.

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