The generation of electricity and heat is the largest single activity covered by the EU Emissions Trading System (EU ETS). Due to the interconnectedness, the difference in the emission intensity of the different fuels and their configuration in a competitive marginal cost pricing market, power...

Iron and steelmaking is the industrial sector with the highest absolute CO2 emissions covered by the European Union Emissions Trading System (EU ETS). This report aims to describe key developments of the sector in the period from 2005 to 2019. It identifies key drivers behind the trends in...

Novel Carbon Dioxide Removal (CDR) technologies have seen a first wave of deployment, driven by investments through voluntary carbon markets and by specific support policies. To sustain the momentum, a credible long-term policy path is urgently needed to lead removal technologies through the...

In the European Union (EU), a second emissions trading system (EU ETS2) covering buildings, road transport and small energy and industrial installations is expected to be introduced from 2027. Until 2030, however, EU ETS2 will not be a separate pillar of EU climate policy, but will support...

Carbon pricing at appropriate levels is critical in the response to climate change, but currently only a fifth of global emissions are priced. Successful carbon pricing in Asia can help jurisdictions in the region achieve their climate targets cost-effectively, spur investments into low-carbon...

The Nationally Determined Contributions (NDCs) under the Paris Agreement fall short of the abatement needed to reach the 2°C target. Emissions trading could be a "costless" means to reduce the ambition gap if countries used their gains from trade for additional abatement. However, this requires...

We examine the relationship between capital structure and carbon intensity in manufacturing firms using a novel dataset that combines information from the EU Emission Trading System with firm-level financial accounts. Our findings indicate that higher financial leverage is associated with lower...

This note describes Carbon Monitor Cities 2.0, a new approach to near-real-time monitoring of city-level greenhouse gas emissions from various sectors without the need for local data collection. With support from the City Climate Finance Gap Fund, the World Bank piloted this approach for 11...

This paper explores the global economic and climate spillovers of the European Union Emissions Trading System (EU ETS), leveraging exogenous variations in carbon prices identified through a carbon policy surprise series. Findings reveal that higher EU carbon prices lead to significant and...

Cap-and-trade regulation is a strategy to reduce carbon emissions (CEs). During production, CEs are reduced by green technology. In a dual-channel supply chain (DCSC), customers try a product at an offline store but purchase it online (showrooming effect). Additionally, using internet...

In this paper, we compare the economic and welfare implications of two carbon pricing policies, namely the European Cap and Trade (CaT) regime and the Chinese Tradeable Performance Standard (TPS). The former sets an economy-wide emissions target and forces firms to purchase sufficient...

This paper examines the potential impact of border carbon adjustments on Trinidad and Tobago's exports. Despite its marginal contribution to global greenhouse gas emissions, the country's high carbon intensity exposes the economy to global low-carbon transition risks. The paper aims to raise...

With the Green Deal, the European Union (EU) has not only significantly increased the ambition of its climate policy in recent years, but it has also added an international dimension to European domestic climate policy. In fact, numerous recently adopted legal acts directly or indirectly affect...

Personal Carbon Trading (PCT) schemes are considered in the transportation sector to control carbon emission. However, there is limited evidence on the potential and feasibility of PCT schemes as a new transportation demand-focused tool. Therefore, we designed a "Carbon for Electricity" scheme,...

Artificial intelligence (AI) is crucial in achieving the carbon peak and neutrality goals and mitigating climate change. Although previous studies have explored cross-sectional differences in corporate carbon emissions, temporal heterogeneities in firm lifecycles have been overlooked. Therefore,...

The role of permanent carbon dioxide removal (CDR) from the atmosphere is currently the subject of intensive discussion within the context of developing a new EU emis­sions reduction target for 2040 and a German long-term strategy on negative emissions. At the same time, a short-term strategy...

This research models and examines multiple decarbonisation pathways for Europe to 2050, evaluating trade-offs between emissions reductions, costs, and implications for gas demand. Scenarios that front-load decarbonisation to 2040 show prohibitively high marginal abatement costs, while a more...

Carbon Capture and Utilisation (CCU) is one of the more mature approaches to carbon neutrality, yet simultaneously one of the least understood or categorically defined. This paper intends to provide a broad-based overview of CCU, as well as a deeper dive that will incorporate scalability, market...

Norway has positioned itself as a climate policy forerunner by aiming to reach net-zero emissions already by 2030. However, the net-zero ambition is not well-defined, not legally binding, nor substantiated by action plans. In a first, interdisciplinary, analysis we scrutinise the net-zero...