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In light of Egypt's transition to a green economy, this report focuses on reducing greenhouse gas (GHG) emissions and increasing resource efficiency along three different value chains in which small and medium-sized enterprises (SMEs) play a crucial role. In order to support SMEs in Egypt to take advantage of implementing greening options along value chains, more detailed analyses are needed. Therefore, the aim of this study is to analyse three selected supply chains to identify greening opportunities for SMEs. Against this background, the project report is structured as follows: Chapter 2 introduces the background with an overview over the concept of green economy followed by Egypt's economy and its green economy. This is followed by a presentation of the value chains and an overview of the respective sectors. Chapter 3 describes the research approach, methods and data collection. The following chapters examine the three selected value chains cotton, sugar beet and refrigerators, including environmental hot spots, greening options as well as the experts' evaluation of those greening options. The report concludes with key recommendations in Chapter 7.
22 years are left until the German target for climate neutrality should be reached. For the industrial sector, this implies a fundamental change and an acceleration of emission reduction, as from 2000 to 2021 the sector has reduced its greenhouse gas (GHG) emissions by only 13% (ERK, 2022). For the large structures, plants and assets that are characteristic for the energy intensive industrial sectors, the timespan implies no room for delay. One sector facing particular challenges is the chemical industry. Here, fossil resources are used not only for energetic purposes but for feedstock as well, in the petrochemical industry in particular. The efforts made in the petrochemical sector thereby not only affects the sectors own emissions, but the chemicals value chain at large, including the management of end-of-life products. The dependency on energetic resources for material use also means that there is a particular connection from the chemical industry to the energy system at large, which also entails special consideration.
The chemical industry also has a particular relevance to the Antwerp-Rotterdam-Rhine-Ruhr-Area (ARRRA) which hosts several large petrochemical clusters in Germany as well as the Netherlands and Belgium, with complexly interlinked production chains. In reaching the climate targets, these regions especially face significant changes and may have the opportunity to position themselves as frontrunners for industrial transformation. That is, if a successful strategy can be found.
In the recent years, numerous scenario analyses and roadmaps have been released drawing out pathways for chemical industries to develop in line with national and international climate targets. This can entail mapping of technological options, important prerequisites, particular challenges as well as important opportunities and timeframes. This meta-analysis summarizes and compares the findings of some of the most recent previous works at the national, European and global level. As the goal is to investigate the various strategic options and development paths for Germany and the ARRRA, it has a particular focus on roadmaps for Germany, the Netherlands and Belgium. It takes a quantitative as well as qualitative approach, looking both at resource and production volumes, different emission reduction strategies relative importance, as well as policy recommendations and other important framework conditions. A particular focus is put on the use of non-fossil feedstocks to reduce emissions.
As the climate crisis is accelerating and the pressure to act is steadily increasing, many companies are claiming themselves or their products carbon neutral. This is usually achieved by offsetting residual emissions with carbon certificates (carbon offsetting). However, recent revelations about the inadequate quality of carbon credits and legal uncertainties surrounding the use of such offset claims are increasingly raising doubts about this approach.
This Wuppertal Report examines how the EU can promote integrity in corporate climate action. Taking into account the new framework of the Paris Agreement, the paper outlines various options for how the EU could push for more integrity and effectively combat greenwashing through the targeted use of Article 6 of the Paris Agreement.
In their recommendations, the authors advocate addressing the most serious consequences of ongoing offset practices through increased regulation of offset claims. If a ban on offset claims cannot be implemented, claims requirements and carbon offset regulations should be further specified, for example, by prohibiting any type of double counting of emissions reductions. In addition to tightening the rules for corporate offset claims within Europe, the EU could help partner countries make informed decisions when approving climate change mitigation measures and respective carbon credits. The report also emphasizes the EU's special role in international climate negotiations, where it should advocate for a strong legal framework for climate action under Article 6.
The production of green hydrogen in Germany is more competitive than expected compared to imports. This is the key finding of a meta-analysis conducted by the Wuppertal Institute on behalf of the North Rhine-Westphalia Association for Renewable Energies (Landesverband Erneuerbare Energien NRW).
The hydrogen study focuses primarily on the year 2030 and beyond - and confirms the advantages of green hydrogen produced in Germany from domestic renewable energies, especially when the evaluation is viewed from a holistic system perspective.
Established in 2016, the German-Japanese Energy Transition Council (GJETC) strives to promote bilateral cooperation between Germany and Japan on energy transition. Among other studies and topical papers, an output paper in 2020 (Rauschen et al., 2020) already compared the energy efficiency in buildings in both countries with a particular focus on heating and cooling. One important finding of this output paper was that further efforts in the building sector are needed to improve the energy efficiency of buildings in Germany and Japan. Following the more ambitious climate protection targets in both countries, this study seeks to analyze the German and Japanese policies put in place to accelerate the decarbonization of the building sector. The decarbonization of the vast number of buildings that both Japan and Germany are facing will be a major contribution to achieving the GHG reduction targets of both countries and should continue to be discussed among experts and developed into a discussion among policy makers.
This report examines and compares the characteristics of the building stock in both countries, as well as existing policies and new strategies and policies that are planned or discussed to achieve energy conservation and decarbonization of buildings. The current shape of buildings, especially houses, is greatly influenced by the land area of the country corresponding to the available space for buildings, the natural environment surrounding the country, the natural resources available, and the lifestyle and cultural ideas that have been passed down and taken root over time. Therefore, it might be difficult to compare them and the corresponding strategies and policies with the same yardstick, so we also discuss common or deviant situations. Through this joint research, we aim to find each other's advantages and challenges and to develop useful and concrete policy recommendations that will contribute to decarbonization policies in both countries.
In order to limit global warming and fulfill their contributions to the Paris agreement, both Germany and Japan have set targets for climate neutrality towards the middle of the century. Reaching these goals will imply transformation of all sectors of society to avoid all fossil greenhouse gas emissions, heavy industry not the least. The focus of this study is the transformation of the petrochemical industry. This sector can become climate neutral but cannot be "decarbonized", as carbon is integral to the chemical structures of the products like polymers and solvents. Reaching climate neutrality thus means that the whole lifecycle of the petrochemical products has to be regarded. Another specific challenge is today's synergetic relation of this industry to fossil transport fuel production, which cannot be maintained in a climate neutral world.
The two countries interestingly share a similar industrial structure overall, and the chemical and petrochemical industry is one of the major industries in both countries. The countries' respective chemical industries are the third and fourth largest in the world in terms of sales, but at the same time, these industries represent just over 5% of the respective countries' greenhouse gas emissions. However, these scope 1 emissions of the chemical industry itself are far less relevant than the end-of-life emissions of their products, which belong to scope 3 and are thus not counted under the chemical industry in the country greenhouse gas balances. To mediate these emissions, there is a need to set the direction, draw out paths and investigate possible alternatives for how the petrochemical industry can be become climate neutral. In this report, the existing scenario analyses, energy strategies and roadmaps dealing with this issue in the two countries are compared, as well as the current state of their petrochemical industries. We highlight similarities, differences and identify possible areas of cooperation and exchange in order to find robust paths forward for the transformation of the petrochemical industries.
While digital technologies hold significant transformational potential, anecdotal evidence suggests that the digital transformation might not be directed towards sustainable development sufficiently. Drawing on a modified and extended version of the framework proposed by Wanzenböck et al. (2020), we explore the cases of the circular economy and the transition towards a sustainable energy system in the twin transition. Making use of insights from 20 expert interviews and two in-depth interviews, we aim to gain a first careful indication of the convergence/divergence in societal views on key problems and solutions across different dimensions (technological, economic, socio-cultural, regulatory) and derive insights for integrated policy-making. Thereby the study contributes to bridging the existing gap between mission-oriented policies and the twin transition. Overall, our first insights indicate that while showing high similarities in the structure of problems and solutions across cases, the variety in wickedness (contestation, complexity, uncertainty) calls for differentiated policy-making: Significant parts of the relatively young twin transition might be in a state of disorientation where societal views on problems and solutions diverge. This would require policy-makers to follow a "discovery-mode" (basic research, experiments and monitoring) with only selected diffusion-focused strategies. Further, we show that missions in the twin transition require highly flexible policy-making as different approaches need to be applied simultaneously. Finally, there are several options for exploiting synergies in policy-making due to some overlapping characteristics as well as learning opportunities between cases. We believe that particularly our holistic perspective on the twin transition can yield substantial guidance for researchers and policy-makers in the field.
The idea for the Green Recovery Tracker was born in spring 2020 when governments started making announcements on economic Corona recovery measures. From a climate and resilience perspective it is key that those recovery packages, investments and subsidies are in line with long-term climate and sustainability targets. Thus, recovery packages should not only boost the economy in the short-term, but also strike the path to a just transition towards climate neutrality.
Against this background, Wuppertal Institute and E3G have launched the Green Recovery Tracker project in late summer 2020 to shed light on the following questions: What can be considered an effective green recovery? What are good examples, which can be used as an inspiration for recovery programs aiming to support sustainable development? Where do the individual Member States stand with respect to aligning their recovery activities with the climate policy agenda?
In this report, you will find our Methodology as well our Policy Briefing highlighting our key takeaways of our country and sectoral analyses. It further includes a section on "What can we learn from our experience with the Green Recovery Tracker?". The briefing concludes with a "Guidance for future funding programs and achieving climate targets overall".
The food system faces a multitude of challenges, including high greenhouse gas emissions, threats to biodiversity, increased diet-related diseases due to unbalanced diets, and socially problematic complex supply chains. This requires not only a transformation of the agricultural economy but also a change in the diet and lifestyles of all consumers. Developing and using digital and technological innovations can help to solve these challenges. In this context, the study provides impulses on how digitalisation can contribute to transforming production and consumption and which prerequisites have to be given to achieve this.
The study describes the approaches for digitalisation along the value chain. These include optimising the use of resources in agriculture - for example with the help of smart farming - and supporting consumers with digital tools and assistance systems - such as apps designed to support grocery shopping. In addition, new business models and a better connection between production and consumption processes are also possible. This includes, for example, new digital sales channels or tracking and communicating sustainability indicators such as CO2 emissions across all steps of the value chain in order to enable all stakeholders to take reliable action.
Offsetting enables countries and companies to meet part of their climate change mitigation obligations by using mitigation outcomes generated elsewhere - in lieu of own emission reductions. This report explores the future role of offset approaches and how they could be successfully integrated into a post-2020 climate regime by focusing both the supply and demand side. For this purpose, the report develops a conceptual approach that derives a normative vision of what should be considered a successful offset use in a top-down manner to then link this vision to specific factors on the ground in sectors and jurisdictions where offsets will be generated and used. It explores how these factors influence the successful operationalisation of the offset approach and how they can inform its design. In addition, the report also explores six conceptual design aspects to providing recommendations on how to take these factors into account during the design of the offset approach. Based on these findings, the authors derive overarching policy recommendations on the integration of offsets into carbon pricing schemes.