Climate change will alter the basis of economic activity in Germany. It will therefore also affect public finances. On behalf of the Federal Ministry of Finance, the Ecologic Institute and Infras explored the extent to which the economic impacts of climate change might threaten the sustainability of public budgets in Germany. The results indicate that, in the event of unabated climate change, additional costs and revenue losses could amount to 0.6 to 2.5 percent of GDP. The Final Report is now available on our website.
German industry is reassessing climate policies and its impacts for sectors or individual businesses in the context of economic globalisation and in future internationally coordinated carbon markets. The top indusry associations in Bavaria and the "Business for Climate Protection Initiative" of the German Industries Association (BDI) invited R. Andreas Kraemer to speak on carbon markets and linking at their conference on "Climate Policy in Berlin and Brussels" in Munich on 3 July 2008.Read more
In a briefing paper for the European Parliament's Temporary Committee on Climate Change, Ecologic analysed whether climate-related border adjustments are permissible under WTO law. Restrictions on international trade have been suggested as a means to address “carbon leakage” – the relocation of manufacturing activities (and thus greenhouse gas emissions) to states with less ambitious climate efforts and more relaxed environmental standards. The paper concludes that climate-related border adjustments are not, as a matter of principle, ruled out by international trade law, provided thatRead more