Carbon pricing is gaining traction around the world, as more and more jurisdictions implement emissions trading systems or tax carbon emissions to achieve their climate objectives. The annual "State and Trends of Carbon Pricing" is the flagship report of the World Bank to provide a concise, up-to-date overview of what is happening in this field. With over 70,000 annual downloads, it is one of the most prominent publications on this matter.

What does EU climate policy need to look like to achieve the transformation to a net-zero emissions economy by 2050? Tune into our podcast and learn about the four essential cross-cutting challenges on this path.

The COP27 in Sharm El-Sheikh was intended by the Egyptian presidency to be an implementation summit. The key outcome agreed was a financing mechanism with a fund specifically for damage and loss. Apart from that, the substantive outcomes of COP27 were mostly disappointing. This article by Dr. Ralph Bodle, Arne Riedel and Dr. Camilla Bausch provides an overview of selected outcomes, as well as insights into the process and the assessment by German civil society.

To achieve the EU climate targets, a lot of money will have to be invested – according to estimates by the EU Commission, an additional 350 billion euros per year by 2030. In order to avoid greenwashing and ensure that these funds actually flow into sustainable economic activities, the EU taxonomy has been in place since 2020. What are the weaknesses of the taxonomy, and how could it be further developed in the future?

Funding the implementation of the law is a key aspect and a point of tension in the negotiations. This policy brief addresses three questions: 1.) How much will implementing the NRL cost and how much funding is available? 2.) How can Member States mobilise funding for nature restoration? 3.) How do the economic benefits brought by nature restoration compare to its costs?

How do we classify which investments are the right ones to power the transition to a climate and nature-friendly economy? This is a pretty big question, and one that is crucial to a successful implementation of the European Green Deal. The EU taxonomy – the subject of our latest episode – specifies the various criteria that investments will need to fulfil to be considered sustainable. In practice, the taxonomy is a long list of economic activities with benchmark performance standards.

In the light of the financial and economic crisis, the EU has further developed and tightened its regulation of the financial market in Europe. This process has also had an impact on the actors in the European carbon market and their trading strategies. This final report brings together the results of three analyses.

The EU has raised its climate target for 2030 to at least -55 %. Agora Energiewende and Ecologic Institute sketch a "Fit for 55" package that can ensure both environmental integrity and solidarity. It investigates four options how to regulate heating and transport emissions, focusing in particular on the pros and cons of expanding emissions trading to these sectors. The paper makes the case for a smart mix of EU-level carbon pricing and companion polices.

Governments around the world are seeking to improve the way they organize their climate policy-making. Many countries are adopting national framework laws to do so. Choosing the right design is key for making these laws effective. This paper provides an update on the core elements of ten European climate laws and identifies several best practice lessons that could inform future climate law design.

The EU recovery and resilience facility marks progress but has some shortcomings in climate policy, argues Nils Meyer-Ohlendorf in his OpEd for the Tagesspiegel. A bigger role for the European Parliament in the distribution of recovery funds is important – for climate protection and democracy in the EU. The facility's spending rules must be clarified.

This short study gives a broad overview of the Commission’s proposal for the new Multiannual Financial Framework and the Next Generation EU program and their proposed climate investment shares.

Nils Meyer-Ohlendorf comments on the EU corona aid package in Tagesspiegel Background. He calls for the EU Parliament to have a greater say in the matter and criticises that the aid programme is not sufficiently linked to the goal of climate neutrality by 2050.

The Corona crisis offers three important lessons for climate policies and Europe's economic recovery. First, systemic shocks – like the Corona pandemic or climate change – affect the foundations of modern societies. Second, resiliency, preparedness and time are existential factors in addressing systemic crises. Third, the world’s economic recovery must help build efficient, innovative and climate neutral economies. In turn, calls to delay climate policies draw the wrong lessons from the current crisis and undermine Europe's economic recovery. All countries, including the EU, must accelerate their emission reductions drastically.

What do environmentally friendly economic stimulus programs look like? In the Tagesspiegel, Nils Meyer-Ohlendorf takes stock of the stimulus packages adopted during the 2009 financial crisis. Stimulus packages should clearly exclude measures that harm the environment.

The enormously innovative German industry is in a position to develop many of the technical solutions required to achieve climate neutrality and bring them onto the market. However, this is not a fast-selling item, but also requires a long-term commitment from the public sector. In this article, Jan-Erik Thie and Benjamin Görlach of Ecologic Institute discuss how German industry can become climate neutral and why the public sector plays an important role. The article is available online.

The third episode of the environment-focused podcast "Knowledge for Future" looks at concepts for sustainable financing.

In a study for DG FISMA, Ecologic Institute and its partners supported the Technical Expert Group on Sustainable Finance in the development of screening criteria for agriculture activities. The criteria are presented in the Technical Report on EU Sustainable Finance Taxonomy. The report is available for download and the call for feedback is open until 13 September 2019. Following this consultation, the TEG will issue recommendations to support the development of future legislation on EU Sustainable Finance Taxonomy.

Bangladesh needs to turn its pledges into effective policy instrument to realize the promises about greenhouse gas (GHG) mitigation made in the Nationally Determined Contributions (NDC). In that regard, analyzing the energy and climate policies of Bangladesh and consulting with the stakeholders from Bangladesh and other countries, Shafiqul Alam provides insights on the possible policy instrument for Bangladesh to achieve the target of NDC and raises some fundamental policy issues. His study is available for download.