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On 12 December 2015, the Parties to the UNFCCC adopted the "Paris Agreement". With this step, the world community has agreed on a collective and cooperative path to fight human-induced climate change: After 25 years of UN climate diplomacy, the world's governments have for the first time in history negotiated a treaty which envisages climate action by all nations. The Agreement sets the world on a path that might lead to a decarbonised economy in the second half of the century. Researchers from the Wuppertal Institute have observed COP 21 and elaborated a detailed analysis of the results. The assessment provides an overview of the most important negotiation outcomes, assesses their results as well as shortfalls and provides an outlook of the next steps needed to implement the Paris Agreement's goals and to set the world firmly on a non-fossil based development path.
The research project seeks to identify the CDM SD tool's possible shortcomings, and to make structured recommendations on how to improve the EB's SD tool. Findings from this project are meant to have a lighthouse effect on the development of provisions on Sustainable Development within other carbon mechanisms of the UNFCCC and beyond. This report represents the consolidated findings of three work packages within this research project. The first chapter provides some background on the subject at hand, and leads into the report. The following chapter covers the assessment and comparison of the SD provisions of selected flexible mechanisms and multilateral standards.
Limiting global warming to below 2 °C or even 1.5 °C requires a fundamental transformation of global socio-economic systems. This need for transformation has been taken up by international climate policy. This article synthesizes criteria of transformational change from transition research and climate finance agencies. On this basis, the article conducts a multi-criteria evaluation of the transformative potential of the European Union Emissions Trading Scheme (EU ETS), currently the world's largest market-based climate policy. From this case it can be inferred that emissions trading can "destabilize" incumbent high-emission practices, but its effectiveness in fostering innovation is limited. Furthermore, the analysis shows that details in the arrangements of the scheme such as allocation rules can have a strong detrimental impact on its outcome. If a global carbon market with a uniform price were introduced, this could lead to developing countries "buying in" with large amounts of freely allocated allowances. This, however, has been shown to thwart transformational effects and instead contribute to further carbon lock-in.
This report is a synthesis of the research and re-evaluates the options previously considered in this project (Vieweg et al (2014)) in the light of the negotiation process up to today. The mitigation-related design elements considered are:
Participation and differentiation of countries; Types of commitments, including also the compulsory character of the commitments and time aspects; Guidance on ambition of the commitments to assure adequacy of global and individual countries' efforts; Transparency of commitments.
Market mechanisms - the Clean Development Mechanism (CDM), Joint Implementation (JI) and Art. 17 emission trading - have been a central feature of the Kyoto Protocol. The Parties to the United Nations Framework Convention on Climate Change (UNFCCC) intend to adopt a new comprehensive climate agreement at this year's Conference of the Parties (COP) in Paris. The shape of the new agreement is emerging only slowly, including the role market mechanisms will play.
To gauge the potential scope of market mechanisms in the forthcoming Paris agreement, this paper surveys the submitted INDCs on the question to what extent they envisage the use of market mechanisms. In detail, the paper looks at five questions for each INDC:
- Does the INDC make any mention of market mechanisms?
- Does the Party plan to use market mechanisms to achieve its contribution to the Paris agreement?
- If a Party intends to use market mechanisms, does the INDC specify which mechanisms or types of units the country intends to use?
- Does the Party quantify the extent to which it intends to use market mechanisms? Under the Kyoto Protocol, use of mechanisms has been supposed to be supplemental to domestic action, though this principle has never been quantified.
- Does the Party specify how the use of mechanisms will ensure environmental integrity and avoid double counting?
Decision-making in sustainable urban mobility planning : common practice and future directions
(2015)
The European Commission aims to foster sustainable local transport systems through the concept of "Sustainable Urban Mobility Plans" (SUMPs). This paper is intended as a think piece highlighting the challenges for cities in selecting sustainable and cost-effective transport and mobility measures. Not only does the paper convey an understanding of the challenges of determining a transport project's viability, but it also presents five case studies of sustainable urban mobility planning and the role of project appraisal in those policy-making processes.
Achieving a truly sustainable energy transition requires progress across multiple dimensions beyond climate change mitigation goals. This article reviews and synthesizes results from disparate strands of literature on the coeffects of mitigation to inform climate policy choices at different governance levels. The literature documents many potential cobenefits of mitigation for nonclimate objectives, such as human health and energy security, but little is known about their overall welfare implications. Integrated model studies highlight that climate policies as part of well-designed policy packages reduce the overall cost of achieving multiple sustainability objectives. The incommensurability and uncertainties around the quantification of coeffects become, however, increasingly pervasive the more the perspective shifts from sectoral and local to economy wide and global, the more objectives are analyzed, and the more the results are expressed in economic rather than nonmonetary terms. Different strings of evidence highlight the role and importance of energy efficiency for realizing synergies across multiple sustainability objectives.
Decoupling resource consumption and economic growth : insights into an unsolved global challenge
(2015)
Small-scale residential biomass combustion for space heating and warm water production already holds a considerable share on overall energy production from biomass in Europe. In the existing regulative framework of EU air quality and climate protection targets, an extended usage of renewable biomass heating without an increase of harmful emissions is urgently needed. In this context, the FP7 project "EU-UltraLowDust" (ULD) aimed at the demonstration of highly efficient and ultra-low emission small-scale biomass combustion technologies and the development of supporting policy recommendations.
New combustion technology operating at almost zero particulate matter (PM) emissions has been demonstrated, rivalling even the performance of state-of-the-art natural gas fuelled systems. In this context, the authors analysed EU policy options for a faster diffusion of these new innovative technologies. The analysis presented in this paper is based on results from an original impact assessment with special focus on energy efficiency and emission scenarios, including the potential effects of a broad deployment of the new ULD technologies as well as the early replacement of poor performing existing installations.
As the derived results show that major shares of energy consumption and emissions from residential biomass combustion in the EU are caused by old heating systems, specific policy measures for new and existing installations have been analysed. Following this, a recommended and harmonized policy package for new Small Combustion Installations (SCI) to be put on the market as well as for existing SCI in the stock has been developed, which will be presented in this paper. The basic policy package addresses new installations and consists of a two-step approach, aiming at enhancing the current and forthcoming policies addressing the SCI market in Europe. A complementary second policy package for existing installations aims specifically at the early replacement of SCI already installed in the stock, which are characterized by low efficiency and high emissions.
Investments in urban transport should deliver the maximum economic, social and environmental benefits; in times of constrained budgets, projects' economic viability is often the deciding factor. This paper discusses the current practices and challenges facing cities in assessing urban transport interventions. On this basis, it develops options for decision-makers to appraise small-scale, sustainable urban transport policy measures.
The analysis of current appraisal practice shows that data requirements and complexity are cities’ main obstacles appraising projects and comparing potential alternatives. Additionally, there is often a risk that project appraisal enters the planning process too late to play any meaningful role. Conducting a Cost-benefit
analysis (CBA) ex-ante is often only approved if the implementation of the measure in question is already likely. Often, a CBA is a means to access funds rather than a basis for decision-making. Project appraisal of small-scale and non-infrastructure-based measures is often simply too expensive.
On the basis of these findings, the paper discusses the following alternatives to comprehensive CBAs: 1) learn from others, 2) use a simplified assessment method, 3) rely on norms and values. All of these options aim to cope with the trade-off between effort and certitude. In practice, some policy-makers may already apply one or more of these options, but this has not been documented in a systematic manner. A systematic documentation of such practices could be a major step forward for implementation of sustainable and integrated urban transport projects, as it would shed some light on the reasoning behind decisions, from which conclusions could be drawn on the likely follow-on effects thereof and also possible improvements to the process.
German electricity giants have recently taken high-level decisions to remove selected fossil fuel operations from their company portfolio. This new corporate strategy could be seen as a direct response to the growing global influence of the fossil fuel divestment campaign. In this paper we ask whether the divestment movement currently exerts significant influence on decision-making at the top four German energy giants - E.On, RWE, Vattenfall and EnBW. We find that this is not yet the case. After describing the trajectory of the global fossil fuel divestment campaign, we outline four alternative influences on corporate strategy that, currently, are having a greater impact than the divestment movement on Germany's power sector. In time, however, clear political decisions and strong civil support may increase the significance of climate change concerns in the strategic management of the German electricity giants.
Energy efficiency has multiple benefits. It usually is a win-win option for all aspects of sustainability - environment, social objectives, and economy. We need to evaluate and communicate these multiple benefits - to citizens, companies, and policy-makers. Due to strong market barriers, effective governance and policy packages for energy efficiency are needed. Evaluation shows effective policy can achieve around 2% per year of additional energy savings.
At COP 17 Durban, parties decided to establish a centralised new market-based mechanism (NMM) and to consider establishing a "framework for various approaches" to govern decentralised initiatives. Parties have also discussed possible use and up-scaling of non market based approaches (NMA) in this context. This Policy Brief summarises the state-of-play regarding the submissions by parties and observers as of Jan 2015. It is an update on previous JIKO policy papers and therefore focuses on comparable aspects of the discussion.
Many have hoped that the CDM's Additionality, if applied to the wider climate finance domain, can contribute to standardizing the funding criteria. This JIKO Policy Brief therefore explore options of applying the CDM's to do just that. The authors highlight issues of environmental system integrity and efficient allocation of funding, and discuss potential limits of the CDM's Additionality concept in its current form, if applied to climate finance.
The prospects are limited, because a clear attribution of emission reductions is almost impossible in a system that does not have as well-defined borders as the zero-sum-game of tradable emission reductions under a capped environment.The authors propose some inroutes to adapting the current approach to Additionality in this context, and pose a number of questions that can help to further discuss and refine the CDM's Additionality concept to make it better applicable for a future, globally inclusive climate regime.