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.
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.
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.
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.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy (RE) transition in MENA countries has been developed and applied to the country case of Morocco. It is designed to support the strategy development and governance of the energy transition and to serve as a guide for decision makers. Such a phase model could be shared widely as part of Morocco's engagement in international platforms of multilateral collaboration, such as the Energy Transition Council (chaired by the United Kingdom (UK) and managed by the British Embassy - Rabat).
The analysis shows that Morocco has fully embarked on the energy transition. According to the MENA phase model, Morocco can be classified as being in the second phase "System Integration of Renewables". Nevertheless, Morocco plans to considerably increase the use of natural gas in order to back up intermittent solar and wind energy sources. The diversification of energy sources and a diverse portfolio of storage options, including solar thermal power and hydrogen, can foster flexibility options. To this end, a roadmap for power-to-X (PtX) should be considered for a smooth transition of the Moroccan energy supply and demand system.
The expansion of local REs can significantly contribute to reducing Morocco's high fossil fuel imports that are causing a high fiscal burden. With this regard, energy security can be strengthened. Next to large-scale deployment, decentralisation of the energy system must be built to encourage an energy transition on all societal levels. The results of the analysis along the transition phase model towards 100% RE are intended to stimulate and support the discussion on Morocco's future energy system by providing an overarching guiding vision for energy transition and the development of appropriate policies.
The project "Plastic Credits - Financing the Transition to the Global Circular Economy" supports the implementation of a waste management structure in India's rural regions. By that it aims to improve the current waste collection and treatment structures in the pilot regions Goa, Maharashtra, and Kerala. Herein, the project focuses on low value plastics (LVP), and especially multi-layer plastics (MLP), that have no market value. In order to analyze the environmental impacts of the project, an Environmental Impact Assessment (EIA) was conducted. The considered environmental components comprise: greenhouse gas emissions, usage of primary resources, impacts on marine and terrestrial wildlife, standard of living, and economic costs.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy (RE) transition in the Middle East and North Africa (MENA) countries has been developed and applied to the country case of Jordan. It is designed to support the strategy development and to serve as a guide for decision-makers.
The analysis shows that Jordan has taken essential steps towards a RE transition. According to the MENA energy transition phase model, Jordan can be classified as being in a transitional stage between the first phase, "Take-Off Renewables", and the second phase, "System Integration". However, fossil fuels continue to play a dominant role in the Jordanian energy sector, and the fluctuating world market prices for fossil fuels impact the economy.
The expansion of domestically produced RE could significantly contribute to reducing Jordan's high imports of fossil fuels. This simultaneously increases energy security and reduces the trade deficit. To move towards a sustainable energy system, Jordan needs to embrace comprehensive flexibility measures. These include developing storage options, improving load management, upgrading the existing grid infrastructure, enhancing energy efficiency, exploring the electrification of end use sectors, and creating strong cooperation between stakeholders.
The transition to a greener and more circular economy has been a European policy priority for several years. The Circular Economy Action Plan of 2020 underlines the ambition. The following EEA initiatives are meant to support the transition process:
- Bellagio Process on circular economy monitoring principles (EPA network);
- Enhancement of EEA indicators on circular economy (ETC/WMGE);
- Explorative work on novel data streams (FWC);
- Co-creation work - knowledge sharing of monitoring experience (ETC/Eionet).
The scope of the present task was to report on the co-creation process that was undertaken at the end of 2020. The co-creation process was organised to identify:
(i) best practices on monitoring strategies, data sources and target setting; and
(ii) areas of circularity measuring and monitoring that remain challenging and require additional investment.
The co-creation process partially built on the work done during the Bellagio Process/Initiative which was run in parallel. This ETC report presents and documents the evidence gathered throughout the co- creation process as well as providing a retrospective analysis of the links to the Bellagio Principles.
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.
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.
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.
The original objectives for introducing Energy Performance Certificates (EPCs) were 1) to make energy performance transparent in the building market, as a measure of energy costs of using a building that a potential buyer or tenant would be interested in; and 2) to encourage energy efficiency renovation. However, the current implementation of EPC schemes in the Member States still shows significant challenges in achieving these two objectives. The recast of the EU Directive on the Overall Energy Performance of Buildings (EPBD) provides a chance to enhance both the usefulness and quality of EPCs and the EPC schemes overall.
This document aims to inform both the debate on the recast of the EPBD and the enhancement of national EPC schemes in EU Member States. It presents the draft policy recommendations of the Horizon 2020 QualDeEPC project for making the EPBD and the national schemes more effective, particularly for deep renovation, and enhance their quality overall. The policy recommendations particularly target the link between EPCs and deep (energy) renovation1, while increasing the levels of ambition and convergence across the EU in terms of building renovation. Deep (energy) renovation is crucial for mitigating climate change and for energy security. The EPBD and all of its articles, as well as national EPC schemes, should aim to make deep (energy) renovation the default. This objective would be embedded and ensured in EPC schemes, if the policy recommendations provided in this document were adopted and implemented.
The QualDeEPC project is aiming to both improve quality and cross-EU convergence of Energy Performance Certificate schemes, and the link between EPCs and deep renovation: High-quality Energy Performance Assessment and Certification in Europe Accelerating Deep Energy Renovation. The objective of the project is to improve the practical implementation of the assessment, issuance, design, and use of EPCs as well as their renovation recommendations, in the participating countries and beyond.
This report serves as a compilation of the project's proposal for an enhanced and converging EPC assessment and certification scheme. It aims to provide a detailed description on the set of practical concepts, policy proposals, and tools for an enhanced EPC scheme towards deep renovation, developed by the QualDeEPC project. The project's substantial proposals both on EU and national level are presented in a comprehensive and rational way, guiding the relevant stakeholders, in particular the policy makers and competed bodies, on which steps need to be followed so as the proposals to be adapted and how the specific values can be determined in MSs. Furthermore, this report includes the project's proposal for defining "Deep Energy Renovation" based on a modified nZEB-based approach.
The project's priorities A) to G) addressed are presented in the following order in this document, reflecting the importance of the enhanced EPC template form and the training of EPC assessors in such schemes:
A) Improving the recommendations for renovation, which are provided on the EPCs, towards deep energy renovation;
E) High user-friendliness of the EPC, by way of an enhanced EPC template form, including an introduction of the proposed "Energy Rating" indicator;
D) Regular mandatory EPC assessor training or examination on assessment and renovation recommendations, required for certification/accreditation and registry;
B) Online tool for comparing EPC recommendations to deep energy renovation recommendations;
C) Creating Deep Renovation Network Platforms (DRNPs);
F) & G) Voluntary/mandatory advertising guidelines for EPCs and Improving compliance with the mandatory use of EPCs in real estate advertisement.
D2.1 report on local EPC situation and cross-country comparison matrix : QualDeEPC H2020 project
(2020)
Considering that 40% of the European Union's energy consumption can be traced back to its buildings, it is essential to improve their energy efficiency in order to achieve the EU's energy efficiency targets. Both the rate of energy renovation and its depth, i.e. the amount of energy savings during a renovation, need to be improved. Energy Performance Certificates (EPC), regulated by the EU's Energy Performance of Buildings Directive (EPBD), are an important instrument to enhance the market uptake of energy-efficient new buildings and the energy-efficient renovation of existing buildings.
Against this background, the Horizon2020 funded project QualDeEPC will work on EU-wide convergence of the building assessment and the issuance, design, and use of quality-enhanced EPCs as well as their recommendations for building renovation. The aim is to make these recommendations coherent with deep energy renovation towards a nearly-zero energy building stock by 2050.
The first part of the QualDeEPC project (work package 2) aims to identify the priorities for elements of EPC schemes that show a need to be improved, and for which the project will investigate further and propose how the elements can be improved. The first step in identifying these priorities is taking stock of the existing EPC schemes. Based on the input from all national consortium partners and other sources, the Wuppertal Institute prepared this detailed overview of the country-specific EPC assessment and certification procedures and their links to other policies and programmes, existing initiatives, and projects. The analysis was based on a list of almost 50 potential options for enhancing the existing EPC schemes.
The aim of this deliverable is to present this stock-taking by a detailed analysis on which of the potential enhanced EPC elements are already implemented in which form in which country, covering all 28 countries that were EU member states until 31 January 2020. All partners conducted bilateral interviews with the major actors in the EPC procedures, including executive bodies on EPC at regional and/or national level. For countries not represented in the Consortium, Wuppertal Institut and EAP conducted specific literature research, e.g. from the Concerted Action EPBD, and aimed to obtain contributions from other member states. The information collected allows a detailed presentation on the elements implemented as well as a cross-country comparison matrix (see Annex I) in this report, which outlines the current EPC practices across the EU regarding the elements of a good practice scheme or innovative improvement options, their comparability, compliance with EU legislation, and to which extent they differ or converge.
The results show, once more, the high diversity in EPC schemes across the EU. They also provide useful information in at least two directions: 1) which improvement options are not yet implemented at all or in sufficient quality in most QualDeEPC partner countries as well as other EU member states, and could therefore be interesting candidates for the further work of the QualDeEPC project in development, testing, discussion, and possibly implementation of elements for enhanced and converging EPC schemes; and 2) which countries, within or beyond the QualDeEPC project, offer good practice examples for the implementation of these options that could serve to guide the development and implementation in other countries. This deliverable will thus serve as a basis for the upcoming tasks to develop priorities and actual proposals for improvement of EPC schemes.
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.
In the coming years, we must set a course that will allow as to protect our climate, reduce resource consumption, and preserve biodiversity. A profound ecological system change is on the horizon in all central areas of action of the economy and society, or transformation arenas.
Digitalisation is a prerequisite for the success in this change and will impact these arenas at multiple levels: Digital technologies and applications will make it possible to improve current procedures, processes, and structures (Improve) and help us take the first steps towards new business models and frameworks (Convert). Despite this, digitalisation itself must be effective enough to facilitate a complete ecological restructuring of our society and lives to achieve more far-reaching economic transformation and value creation (Transform).
The ability to obtain, link, and use data is a basic prerequisite for tapping into the potential of digitisation for sustainability transformation. However, data is not a homogeneous raw material. Data only gains value when we know the context in which it was collected and when we can use it for a specific purpose.
The discussion on what structures and prerequisites are necessary for the system-changing use of data has only just begun. This study was conducted to serve as a starting point for this discussion as it describes the opportunities and prerequisites for a data-based sustainability transformation. This study focuses on environmental data, data from plants, machines, infrastructure, and IoT products. Our task will be to increase the use this data for systemic solutions (system innovation) within transformation arenas where different stakeholders are working together to initiate infrastructure, value chain, and business model transformation.
Digital product passport : the ticket to achieving a climate neutral and circular European economy?
(2022)
The introduction of a Digital Product Passport (DPP) is an opportunity to create a system that can store and share all relevant information throughout a product's life cycle. This would provide industry stakeholders, businesses, public authorities and consumers with a better understanding of the materials used in the product as well as their embodied environmental impact.
With the COVID-19 pandemic, the Russian invasion of Ukraine and the cost-of-living crisis, now is a critical moment to transform our economic and business models, while also addressing the huge scale of material emissions. DPPs can be a pivotal policy instrument in this goal. Furthermore, DPPs can accelerate the twin green and digital transitions as part of EU efforts to deliver positive climate action and sustainable economies.
In 2020, the European Commission (EC) adopted a new Circular Economy Action Plan (CEAP), which emphasised the need for circular economy initiatives to consider the entire life cycle of products, from the production of basic materials to end-of-life disposal. The Circular Economy Package published in March 2022 includes a proposal for an Ecodesign for Sustainable Products Regulation (ESPR), which builds upon the Ecodesign Directive that covers energy-related products.
A DPP will form a key regulatory element of the ESPR by enhancing the traceability of products and their components. This will provide consumers and manufacturers with the information needed to make better informed choices by taking their environmental impact into consideration.
As discussed in the report, there is widespread agreement amongst business leaders that a well-designed DPP could have both short- and longer-term benefits, improving access to reliable and comparable product sustainability information for businesses, consumers and policymakers.
A well-designed DPP can unify information, making it more readily accessible to all actors in the supply chain. This will support businesses to ensure an effective transformation towards a decarbonised industry. It could also create incentives for companies to make their products more sustainable, as improving access to reliable and consistent information across supply chains will make it easier for customers to make comparisons.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy (RE) transition in the Middle East and North Africa (MENA) countries has been developed and applied to ten countries: Algeria, Egypt, Iraq, Israel, Jordan, Lebanon, Morocco, Palestine, Tunisia, and Yemen. This report synthesises the results of these ten studies.
The analysis shows that the state of the energy sector in the MENA region varies from country to country, but some underlying trends are present in all countries. In the majority of countries, energy prices are subsidised, and energy markets are mostly not liberalised. The energy demand in all analysed countries is growing and most grid systems are poorly interconnected across borders. Still, the expansion of RE in the MENA region can benefit from significant global progress and cost reductions in RE technologies.
Reducing greenhouse gas (GHG) emissions is not the only key driver for energy transition. In fact, the main motives for transition are that RE can help to meet growing demand, reduce dependence on imports, increase energy security, and provide opportunities for economic development.
All countries studied have RE targets. While some countries are on track to meet these targets, others need to increase their efforts to expand renewable electricity generation in order to meet their goals. Strong progress has been made in countries with limited fossil energy resources, while in some countries that produce and export large amounts of fossil energy resources, the energy transition is progressing rather slowly.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy (RE) transition in MENA countries has been developed and applied to the country case of Yemen. It is designed to support the strategy development and governance of the energy transition and to serve as a guide for decision makers.
The transition towards REs is still at a quite early stage in Yemen. The military conflict has prevented the implementation of most of the planned large-scale renewable projects. The political instability, the high dependence on fossil fuels, and poor administrative performance are the most pressing concerns for Yemen's electricity sector. At an operational level, Yemen requires a total retrofit of the electricity infrastructure and needs to expand its overall capacity while improving its efficiencies.
Despite these challenges, rebuilding the energy system after the political turmoil and the subsequent violent conflicts could offer Yemen the capability to transition towards renewables. This will provide short-term and long-term opportunities and avoid stranded investments in fossil-fuel capacities.
The priority is to improve the framework conditions for RE in Yemen, starting with the development of a long-term strategy up to 2030 and beyond. Also, an appropriate and transparent legislation must be created. Furthermore, based on the legislation, clear regulations for REs must be introduced, and a realistic timeframe for expansion must be established in order to promote acceptance and market development on a large scale.
The results of the analysis along the transition phase model towards 100% RE are intended to stimulate and support the discussion on Yemen's future energy system by providing an over-arching guiding vision for the energy transition and the development of appropriate policies.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy (RE) transition in the Middle East and North Africa (MENA) countries has been developed and applied to the country case of Lebanon. It is designed to support the strategy development and governance of the energy transition and to serve as a guide for decision makers.
Lebanon's energy transition towards REs stands at a very early stage of the first transformation phase. Although abundant solar and wind energy potential does exist, the pathway towards a 100% renewables energy seems very challenging for Lebanon, as a consequence of highly unstable political conditions. The most pressing concern for Lebanon's electricity sector is combating the country's fiscal imbalance, while providing secure and reliable electricity supply. At the operational level, Lebanon's grid network requires significant investments to rebuild, retrofit, and expand the overall capacity and energy efficiency improvements.
The need to strengthen the energy system after the political turmoil of the civil war is likely to offer several long-term opportunities, such as developing the economy, reducing environmental pollution, and increasing the energy security. In order to move forward into the first phase, Lebanon needs to improve the framework conditions for REs and implement its visions. It needs to support the market development in a realistic timeframe, where structural reforms represent the highest priority.
The results of the analysis along the transition phase model towards 100% renewables energy are intended to stimulate and support the discussion on Lebanon's future energy system by providing an overarching guiding vision for the energy transition and the development of appropriate policies.
This report develops an evaluation framework that policymakers can use to identify whether offsets can add value and uphold environmental integrity of a compliance scheme. It uses a scoring framework on factors to: (1) identify which sectors have hard-to-abate emissions that can justify demanding offsets as cost-containment measures for ambitious climate policies; and (2) identify mitigation activities that are otherwise inaccessible, fosters sustainable development, and the extent to which it enables transformative sectoral action to be eligible to supply offsets. This evaluation framework identifies the optimal conditions that make factors successful in either having sectors demand offsets, or specific mitigation activities supply offsets. Sectoral emissions that are hard-to-abate are those that are technically unavoidable due to a lack and maturity of technologies, and therefore should be allowed to have cost-containment measures - such as offsets - to avoid adverse economic ramifications such as carbon leakage. Mitigation activities that can supply offsets are those that are currently inaccessible to local actor’s due to lack of access to technology, finance or capabilities. Allowing these mitigation activities to be eligible to supply offsets allows to pilot such activities and realize mitigation outcomes outside the original scope of the compliance scheme. This report has chosen selected sectors and mitigation activities to illustrate how this framework can be applied at the global level. It recognizes that country-specific factors can change the assessment of whether the offset approach will add value and uphold environmental integrity to proposed compliance schemes of a country. The report further proposes practical steps policymakers can do to undertake an evaluation at the national level.
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.
The objective of this report is to use historical analysis to identify conditions that determine when offsets add value to compliance schemes while upholding environmental integrity. The indicators of success include: increased acceptance of introducing compliance schemes; raising ambition in subsequent compliance periods; the possibility to drive emission reductions outside the compliance sectors; promoting investments in sustainable development; and avoiding perverse incentives that undermine the stringency of the compliance scheme or compliance actors’ efforts in reducing their own emissions. Through undertaking in-depth case study analyzes on the effects of offsets in the European Union, Alberta, Australia, Colombia and Japan, the report identifies common conditions that explain why offsets were successful (or not) in achieving individual indicators. The report further identifies two common conditions that can help explain when offsets achieve all five indicators of success. The first is that policymakers need to be willing to design the compliance scheme to set and maintain a strong compliance price signal that justifies the need for incorporating cost containment measures, such as offsets, to avert negative political and economic ramifications. Relatedly, the second condition requires institutions, processes and infrastructure that govern both the compliance scheme and offsets to be well developed so that they can ensure offsets uphold the principles of environmental integrity, achieve sustainable development benefits, and act as a reliable cost containment measure to high compliance prices. The findings also highlight how difficult it is to achieve both conditions, as both domestic and international political economy factors determine whether policymakers and voters are willing to introduce and maintain compliance schemes that deliver effective action on climate.
As the worldwide remaining carbon budget decreases rapidly, countries across the globe are searching for solutions to limit greenhouse gas emissions. As the production and use of coal is among the most carbon-intensive processes, it is foreseeable that coal regions will be particularly affected by the consequences of a transformation towards a climate-neutral economy and energy system.
Challenges arise in the area of energy production, environmental protection, but also for economic and social aspects in the transforming regions - often coined with the term "Just Transition". For the decision makers in coal regions, there is an urgent need for support tools that help to kick off measures to diversify the local economies while at the same time supporting the local workers and communities.
The Wuppertal Institute aims to support coal regions worldwide by developing a Just Transition Toolbox, which illustrates the challenges and opportunities of a sustainable transition for a global audience. It comprises information about strategy development, sets recommendations for governance structures, fostering sustainable employment, highlights technology options and sheds light on the environmental rehabilitation and repurposing of coal-related sites and infrastructure. The toolbox builds on the work of the Wuppertal Institute for the EU Initiative for Coal Regions in Transition and takes into account country-specific findings from the SPIPA-partner countries India, Indonesia, South Africa, Japan, South Korea, Canada and the USA. The acronym SPIPA is short for "Strategic Partnerships for the Implementation of the Paris Agreement" an EU-BMU programme co-financed by the GIZ.
A main goal of this study - which also functions as deliverable 210078-D07 of the Circular Economy Beacons (CEB) project - is to evaluate currently available frameworks that measure and operationalise Circular Economy (CE), with a particular focus on the urban context. The regional focus lies on the Western Balkan region, which is at the centre of the project. Such "Urban Circularity Hotspot Frameworks" (UCHF) aim at providing decision support for policy makers, companies, citizens etc. regarding the transition to CE within cities. Based on the analysis of different frameworks, suggestions are derived regarding UCHF suitable for the specific characteristics of Western Balkan municipalities, i.e. a Circular Economy Beacons Urban Circularity Hotspot Framework (CEB-UCHF) ready for short-term implementation.
This report provides an overview of the main findings from the different research tasks in the CIRCTER project and delivers selected policy messages with European coverage. The report provides: (Sec. 2) a territorial definition of the circular economy; (Sec. 3) insights into the available statistics on material and waste patterns and flows and their interpretation, alongside new territorial evidence on both aspects; (Sec. 4) a sectoral characterisation of the circular economy at regional level (NUTS-2), including data on turnover and jobs; (Sec. 5) key findings from the CIRCTER case studies; (Sec. 6) a systemic interpretation of the circular economy that works as a knowledge-integration mechanism for the entire report; (Sec. 7 and 8) an analysis of the most relevant circular economy policies and strategies at various territorial levels; (Sec. 8) a subset of policy recommendations focusing in particular on territorial and cohesion policies, and; (Sec. 9) suggestions for further research.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy (RE) transition in the Middle East and North Africa (MENA) countries has been developed and applied to the country case of Tunisia. It is designed to support the strategy development and governance of the energy transition and to serve as a guide for decision makers.
The analysis shows that Tunisia has already taken important steps towards a RE transition. According to the MENA phase model, Tunisia can be classified as being in the "Take-Off Renewables" phase. Nevertheless, natural gas still plays the dominant role in Tunisia's highly subsidised electricity generation. In addition to the elevated political uncertainty, there are numerous structural, political, social, and economic challenges within the energy sector that hinder progress in the transition to REs.
Strong support at all levels is needed to promote the breakthrough of RE. This includes more detailed long-term planning and improving the regulatory framework, as well as reducing offtaker risks to improve the bankability of RE projects in order to attract private investment. Furthermore, institutional buy-in needs to be increased and the engagement of key non-state stakeholders must be strengthened.
In light of the growing domestic energy demand and with the on-going global decarbonisation efforts in favour of sustainable fuels, Tunisia would be well advised to embark on a sustainable energy path sooner rather than later to seize economic opportunities that can arise from RE development.
By applying a phase model for the renewables-based energy transition in the MENA countries to Israel, the study provides a guiding vision to support the strategy development and steering of the energy transition process.
The transition towards a renewable-based energy system can reduce import dependencies and increase the energy security in Israel.
Key issues that need to be tackled in order to advance the energy transition in Israel are the expansion of flexibility options, discussion on the long-term role of natural gas, increasing participation and awareness, and exploring the future role of power-to-X in the energy system.
Analysis of the historical structural change in the German hard coal mining Ruhr area (case study)
(2022)
This case study examined the structural change in the Ruhr area caused by the low international competitiveness of German hard coal mining over the period from the late 1950s to 2015. It analysed the structural change process and the structural policies implemented as a reaction to this process with the objective to make this knowledge available for future structural change processes in other (coal) regions by deploying various qualitative and quantitative methods of empirical social and economic research. A discourse analysis helped to recognise who supported which structural policy approaches and why - and thus gives indications of the possible relevance of experiences for other regions.
This case study examined the structural change in Lusatia caused by the system change from a centrally planned economy to a market economy in the period 1990-2015. It analysed the structural change process and the structural policies implemented as a reaction to this process with the objective to make this knowledge available for future structural change processes in other (coal) regions by deploying various qualitative and quantitative methods of empirical social and economic research. A discourse analysis helped to recognise who supported which structural policy approaches and why - and thus gives indications of the possible relevance of experiences for other regions.
Effective policies to mitigate climate change need to be accompanied by a socially just transition. Based on experiences of past and ongoing transition policies in coal regions in Europe and with indications to the specificity of framework conditions and challenges and to the potential effectiveness and transferability of approaches, this paper presents lessons learnt which can be inspirational for similar transitions in other coal regions and for transitions in other sectors.
The transport sector accounts for 20 per cent of the greenhouse gas emissions in Germany and it is therefore key to success for German climate policy. At present, however, there is no other sector with a wider gap in missing the trajectory to climate neutrality. The present study, conducted on behalf of Huawei within the project "Shaping the Digital Transformation - Digital Solution Systems for the Sustainability Transition", points out new pathways towards a sustainable and climate friendly transition of the transport sector. The report specifies concrete options to follow up on the ambitious goals of the new coalition agreement to foster clean and digital mobility solutions.
The authors refined eight theses on how digitalisation can foster sustainable mobility solutions and how to shape a supporting policy framework, which is aligning the financial and regulatory guardrails for ramping up a sustainable mobility system while gradually phasing down the usage of private cars.
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".
By use of macro-economic model EXIOMOD, the expected impacts of actions described in the Strategic Research and Innovation Agenda (SRIA) have been analyzed. The results of this analysis show that the R&I actions described in the SRIA contribute to decoupling economic growth from resource use. The actions are expected to cause an increasing gross domestic product and a decreasing raw material demand. This results in an increasing extracted resource productivity, a measure used to show the decoupling of economic growth and resource use. It can however be questioned whether the actions in the SRIA - or the measures implemented in the model - assume a strong enough pace for decoupling economic growth and material use. The actions contribute to the climate goals of the European Commission, by showing a pathway through which the emissions of greenhouse gas can be reduced.
This study presents in detail: the use of plastic products and the opportunities for recyclate use in the construction sector, quantities of plastic used, take-back systems, recycling techniques, current recyclate use and plastic construction product packaging.Potentials for increasing high-quality recyclate use were identified. Existing hurdles and options for action for industry and politics are presented. Current recyclate use as well as its potential use are strongly dependent on the application area of plastics. The biggest hurdles for the use of recycled materials are product life time, dismantling and technical requirements.
CICERONE aims to bring national, regional and local governments together to jointly tackle the circular economy transition needed to reach net-zero carbon emissions and meet the targets set in the Paris Agreement and EU Green Deal. This document represents one of the key outcomes of the project: a Strategic Research & Innovation Agenda (SRIA) for Europe, to support owners and funders of circular economy programmes in aligning priorities and approaching the circular economy transition in a systemic way.
On the basis of a literature research, this subtask develops a conceptional framework for a common understanding of CE within the project team and for the following work packages and tasks. After a brief introduction into the objectives and the context of a circular economy, a more elaborated look into the necessity of an explicit understanding of CE, the objectives, the spatial perspective of CE and the specific challenges within the CICERONE context will be done, in order to develop a basis for a common understanding within the project context. Circular economy can and has to be understood as an (eco-)innovation agenda. Therefore, the paper investigates the role policy has to play to support innovation for a CE transition, for creating the framework conditions and why CE has also to be build from the ground up. Finally, the paper looks from two perspectives at emerging trends and business models in a CE to sketch next steps towards the transition in a selection of central sectors. Conclusions are drawn on the basis of the insights gained by the preceding chapters.
The key objective of this deliverable is to gain insights on and assess how CE is being implemented and R&I is being funded at regional level, e.g., via the RIS3 strategy and Structural Funds. As such it sets the scope for the project and provides the background against which programmes and measures can be understood, assessed, developed and recommended in succinct tasks and work packages. The objective of this report is to provide a concise overview of the current R&I priorities, as expressed in running and newly introduced funding and legislative measures with respect to Circular Economy in European countries and regions.
The challenges and also potentials of the energy transition are tremendous in Germany, as well as in Japan. Sometimes, structures of the old energy world need "creative destruction" to clear the way for innovations for a decarbonized, low-risk energy system. In these times of disruptive changes, a constructive and sometimes controversial dialog within leading industrial nation as Japan and Germany over the energy transition is even more important. The German-Japanese Energy Transition Council (GJETC) released a summarizing report for the first project phase 2016-2018. It includes jointly formulated recommendations for politics as well as a controversial dialogue part.
The Council jointly states and recommends that:
Ambitious long-term targets and strategies for a low-carbon energy system must be defined and ambitiously implemented; Germany and Japan as high technology countries need to take the leadership.
Both countries will have to restructure their energy systems substantially until 2050 while maintaining their competitiveness and securing energy supply.
Highest priority is given to the forced implementation of efficiency technologies and renewable energies, despite different views on nuclear energy.
In both countries all relevant stakeholders - but above all the decision-makers on all levels of energy policy - need to increase their efforts for a successful implementation of the energy transition.
Design of the electricity market needs more incentives for flexibility options and for the extensive expansion of variable power generation, alongside with strategies for cost reduction for electricity from photovoltaic and wind energy.
The implementation gap of the energy efficiency needs to be closed by an innovative energy policy package to promote the principle of "Energy Efficiency First".
Synergies and co-benefits of an enhanced energy and resource efficiency policy need to be realized.
Co-existence of central infrastructure and the growing diversity of the activities for decentralization (citizens funding, energy cooperatives, establishment of public utility companies) should be supported.
Scientific cooperation can be intensified by a joint working group for scenarios and by the establishment of an academic exchange program.
The German-Japanese Energy Transition Council (GJETC) was established in 2016 by experts from research institutions, energy policy think tanks, and practitioners in Germany and Japan.
The objectives and main activities of the Council and the supporting secretariats are to identify and analyze current and future issues regarding policy frameworks, markets, infrastructure, and technological developments in the energy transition, and to hold Council meetings to exchange ideas and propose better policies and strategies. In its second project phase (2018-2020), the GJETC had six members from academia on the Japanese side, and eight members on the German side, with one Co-Chair from each country.
From October 2018 to March 2020, the GJETC worked on and debated six topics:
1) Digitalization and the energy transition. 2) Hydrogen society. 3) Review of German and Japanese long-term energy scenarios and their evaluation mechanism. 4) Buildings, energy efficiency, heating/cooling. 5) Integration costs of renewable energies. 6) Transport and sector coupling.
The outputs and the recommendations of the second phase of the GJETC are summarized in this report.
Within the Shaping Digitalisation project, we aim to highlight and discuss the opportunities that digitalisation can bring to Germany. In particular, we are discussing three stand-out areas where action is most needed to achieve ecological transformation: mobility, the circular economy, and agriculture and food.
This report addresses the second area in need of action. Up until now, discussions on the circular economy have been limited to recycling and the re-use of materials. We must expand the scope of these discussions to include new, resource-efficient business models and the comprehensive transformation of value chains and industrial structures. Our analysis has found that digitalisation is indispensable for this transformation if used properly.
We hope this report will provide the impetus needed to kick-start a climate- and resource-friendly industrial transformation in Germany. Here, we have incorporated the findings of our interdisciplinary workshop on "Shaping the Digital-Ecological Industrial Transformation - Business Models and Political Framework Conditions for Climate and Resource Protection" that was attended by experts from international research institutes, civil organizations, public authorities, and private companies.
This report was prepared by the Wuppertal Institute in cooperation with the German Economic Institute as part of the SCI4climate.NRW project. The report aims to shed light on the possible phenomenon that the availability and costs of "green" energy sources may become a relevant location factor for basic materials produced in a climate-neutral manner in the future.
For this purpose, we introduce the term "Renewables Pull". We define Renewables Pull as the initially hypothetical phenomenon of a shift of industrial production from one region to another as a result of different marginal costs of renewable energies (or of secondary energy sources or feedstocks based on renewable energies).
Shifts in industrial production in the sense of Renewables Pull can in principle be caused by differences in the stringency of climate policies in different countries, as in the case of Carbon Leakage. Unlike Carbon Leakage, however, Renewables Pull can also occur if similarly ambitious climate policies are implemented in different countries. This is because Renewables Pull is primarily determined by differences in the costs and availability of renewable energies. In addition, Renewables Pull can also be triggered by cost reductions of renewable energies and by changing preferences on the demand side towards climate-friendly products. Another important difference to Carbon Leakage is that the Renewables Pull effect does not necessarily counteract climate policy.
Similar to Carbon Leakage, it is to be expected that Renewables Pull could become relevant primarily for very energy-intensive products in basic materials industries. In these sectors (e.g. in the steel or chemical industry), there is also the possibility that relocations of specific energy-intensive parts of the production process could trigger domino effects. As a result, large parts of the value chains previously existing in a country or region could also be subjected to an (indirect) Renewables Pull effect.
For the federal state of NRW, in which the basic materials industry plays an important role, the possible emergence of Renewables Pull is associated with significant challenges as climate policy in Germany, the EU and also worldwide is expected to become more ambitious in the future.
This report aims to enable and initiate a deeper analysis of the potential future developments and challenges associated with the Renewables Pull effect. Thus, in the final chapter of the report, several research questions are formulated that can be answered in the further course of the SCI4climate.NRW project as well as in other research projects.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy transition in MENA countries has been developed and applied to the country case of Egypt. It is designed to support the strategy development and governance of the energy transition and to serve as a guide for decision makers.
Egypt, with its abundant solar and wind energy potential, has excellent preconditions to embark on the pathway towards a 100% renewable energy system. The country has successfully taken its first steps in this direction by attracting international finance and implementing several large-scale solar and wind projects. Yet, while Egypt has made significant progress, increased efforts are still required if the country aims to proceed towards a fully renewables-based system. The stronger system integration of renewable energies requires, for example, an alignment of regulations for the electricity, mobility and heat sectors. In this context, Egypt would be well advised to develop and implement an overall strategy for the energy transition that includes not only electricity generation but all sectors.
By placing a stronger focus on renewable energy, also to decarbonise the industrial sector, Egypt, as Africa's second most industrialised country, could seize the opportunity for economic development within a decarbonising global economy. The results of the analysis along the transition phase model towards 100% renewable energy are intended to stimulate and support the discussion on Egypt's future energy system by providing an overarching guiding vision for the energy transition and the development of appropriate policies.
A clear understanding of socio-technical interdependencies and a structured vision are prerequisites for fostering and steering a transition to a fully renewables-based energy system. To facilitate such understanding, a phase model for the renewable energy transition in MENA countries has been developed and applied to the country case of Iraq. It is designed to support the strategy development and governance of the energy transition and to serve as a guide for decision makers.
The transition towards renewable energies is still at a very early stage in Iraq. Despite the drop in renewable technology costs over the last decade and the increasing deployment of renewables in the MENA region, the pathway towards renewable energies seems to be challenging for Iraq. This is attributable to the country's political instability and the dominant economic role played by the fossil fuel sector. The most pressing concern for Iraq's electricity sector is the need to secure a constant electricity supply. At operational level, Iraq's electricity infrastructure requires significant investment to rebuilt, retro-fit and expand its overall capacity and to improve efficiencies.
Yet, the need to rebuild the energy system after the war and the subsequent violent conflicts could offer an opportunity for a transition towards renewables that would benefit Iraq in the short term and also provide a long-term economic development perspective. To take advantage of this opportunity, Iraq needs to improve the framework conditions for renewable energies and raise awareness about the benefits it offers. Renewable energy regulations need to be introduced, market development supported, a realistic timeframe for the transition process established and an appropriate and reliable legal framework developed. The results of the analysis along the transition phase model towards 100% renewables are intended to stimulate and support the discussion about Iraq's future energy system by providing an overarching guiding vision for the energy transition and the development of appropriate policy strategies.