To support the green transition in the automotive sector, the EU has introduced CO2 emission performance standards, also known as the excess emissions premium (EEP) regulation, which will tighten until 2035. Manufacturers exceeding their average fleet emission targets must pay a penalty. The...

We assess household burdens from a carbon tax with revenue recycling, comparing them to burdens from price changes during the recent cost-of-living crisis. We focus on Lithuania, an OECD country that attained high-income status a decade ago, and that recently enacted a €60/ton CO2 carbon tax...

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,...

Sustainable development experts and policy makers expect carbon markets to drive climate finance and help meet climate goals. Carbon pricing and carbon markets continue to evolve and grow. New schemes and instruments were introduced with fiscal revenues reaching a record $104 billion from carbon...

Environmental policies such as the European Union Emissions Trading System (EU ETS) raise concerns about their impact on local employment and competitiveness. Yet, existing EU ETS studies focus on firm-level outcomes during the initial phases of the program. We construct a panel dataset of about...

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...

The energy crisis following Russia’s invasion of Ukraine exposed the heightened vulnerability of low-income households to rising heating costs, particularly those in energy inefficient buildings. Using data from the German Socio-Economic Panel (SOEP), this study examines the distributional...

This study examines how policies affecting the cost of using fossil fuels in production influence comparative advantage in the industrial sector. Firstly, we use a fixed-effects gravity model to estimate the export capabilities that determine comparative advantage. Subsequently, using data on...

As a follow-up to the "Navigating Decisions in Carbon Markets" framework, this Guidance Document helps host countries develop a strategic approach for engaging with international carbon markets. It is structured into seven modules and is designed to help countries explore and answer fundamental...

The "Technical Guidance Note on Ecosystem Governance for Carbon Markets Infrastructure: Assessment and Recommendations" is one of five guidance notes prepared by the Carbon Markets Infrastructure Working Group (CMI WG). This note aims to inform robust governance across carbon market systems. It...

The "Technical Guidance Note on Information Security for Carbon Markets Infrastructure: Tools and Recommendations" is one of five guidance notes prepared by the Carbon Markets Infrastructure Working Group (CMI WG). This note provides practical guidance to strengthen information security across...

The "Technical Guidance Note on Transaction Integrity for Carbon Markets Infrastructure: Tools and Recommendations" is one of five guidance notes prepared by the Carbon Markets Infrastructure Working Group (CMI WG). This note provides practical guidance to embed transaction integrity within...

The "Technical Guidance Note on Standardizing Digital MRV in Carbon Markets: System Evaluation Criteria and Hotspots Assessment" is one of five guidance notes prepared by the Carbon Markets Infrastructure Working Group (CMI WG). This note offers a practical foundation for standardizing and...

The Carbon Markets Infrastructure Working Group (CMI WG), convened by the World Bank, has developed a suite of five Technical Guidance Notes to support the development of secure, connected, and trustworthy carbon market systems. Each note addresses a critical area of market...

The "Technical Guidance Note on Enhancing Data and Systems Interoperability for Carbon Markets: Current Landscape and Strategic Recommendations" is one of five guidance notes prepared by the Carbon Markets Infrastructure Working Group (CMI WG). This note aims to inform ongoing efforts to improve...

This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments. Specifically,...

This paper employs a computational general equilibrium model to examine the potential impact of the European Union's Carbon Border Adjustment Mechanism (CBAM). The paper considers the impact of extending CBAM to other economies, examining whether approaches that require increased coordination of...

This paper documents the evolution of US carbon emissions and discusses the main factors that contributed to the historical carbon emissions rollercoaster. We divide the discussion into four periods - up to 1920, 1920-1960, 1960-2005 and after 2005. For each period, we discuss the main drivers...

The year 2024 was a milestone for carbon dioxide removals (CDR) as the EU adopted a Certification Framework for such activities, and COP29 adopted new UN standards for the sector. This Policy Brief reviews how carbon markets are being prepared to reward high-quality CDR credits in light of the...

An increase of e100 per tonne in the EU carbon price reduces the carbon footprint but lowers GDP due to higher energy costs and carbon leakage. Using a dynamic multi-sector, multi-country model augmented with an energy block that includes endogenous renewable energy investment, we analyze the...

This report explores relevant data on housing characteristics and instruments in the buildings sector that pertain to vulnerable groups in five Member States: Germany, France, Poland, Greece, and Ireland. National sources and European Union (EU)-level data are used to provide insights into the...

EU manufacturing firms face the dual challenge of decarbonisation and (international) competitive pressure. This policy brief analyses emissions and output trends in the EU ETS, sector-specific industrial innovation, the impact of uncertainty on low-carbon investments, and the need to support...

Maritime transport plays an essential role in the European Union (EU) economy. It enables trade and contacts between all European nations. It ensures the security of supply of energy, food and commodities and provides the main vehicle for European imports and exports to the rest of the world....

The volatility of China's emission trading system (ETS) pilots is significantly influenced by economic policy uncertainty (EPU). This article examines how EPU affects the volatility of three typical ETS pilots in China-Hubei, Guangdong, and Beijing-using two local and two global EPU indexes as...

Are carbon emissions priced in equity markets? The literature is split with different approaches yielding conflicting results. We develop a stylized model showing that, if emissions are priced, stock returns depend on expected emissions and the product of the innovation in emissions and the...

The previous federal government coalition had planned to pay private households a climate dividend to offset rising carbon prices; a payout process was even prepared. However, the climate dividend is nowhere to be seen in the new federal government's coalition agreement. In the long term, a...

This study investigates the environmental effects of agricultural trade, renewable energy use, and economic growth in a panel of 14 selected countries for the period 2000-2021. Per capita Co₂ emissions are modeled as the dependent variable using a second-generation panel data method, the...

Trade's impact on emissions is not straightforward. Existing literature on trade and emissions primarily focuses on countries' net export emissions, often neglecting the emissions saved by importing products instead of producing them domestically. The environmental impact from trade is...