Energy and Environment

The EU Emissions Trading System is failing at incentivizing low-carbon innovation needed to reach decarbonization by mid-century. Current research suggests that regulatory uncertainty of the EU ETS keeps its market participants from considering the long-term goals behind the emissions trading system. Different reform options are at hand to enhance long-term regulatory credibility and revive the world’s largest climate policy instrument.

Ghana is losing revenue from its oil resources due to ineffective taxation, bad contracts and institutional weakness. It requires contract renegotiation and implementation of a wind-fall profit tax in order to maximize revenue from the country’s oil.

At first glance, climate change seems an intractable problem. Cap-and-trade could provide the solution. But first, it needs reforms and better communication.

China is taking a leading role in the clean energy transition and improving its position in renewable energy innovation. The EU must engage with China in renewable energy research and development if it wants to accelerate the clean energy transition and drive global climate change action.

Fossil fuel subsidies are bad. Bad for government budgets. Bad for the economy. And bad for the climate. While reform efforts have focused on cutting consumer subsidies, those for production remain prevalent. To realize global climate ambitions, the G20 has to get serious and end producer subsidies.

Current urbanization rates will lead to an increased concentration of people and economic activities in megacities, offering both opportunities and dangers for sustainability. Future development strategies should focus on achieving low-carbon urban growth. At the same time, cities need to take a more active role in seeking inter-urban cooperation.