.@EU_Commission proposed a Carbon Border Adjustment Mechanism (#CBAM) as part of #Fitfor55. Aim: carbon leakage protection. Our Impulse shows how to tweak the proposal to create an effective CBAM & how #climateclubs & CBAM can work together to accelerate #industrytransition. 1/9 Our new impulse is out: Getting the Transition to CBAM Right
1️⃣ With higher EU climate targets, free allocation of CO2 allowances in the EU ETS is not a sustainable solution to solve #carbonleakage problem. #CBAM is the most credible alternative to free allocation. 2/9
2️⃣ With right objectives, #climateclubs can complement an EU #CBAM - climate clubs cannot replace EU carbon leakage tools as vast differences in climate ambition and policy are likely to prevail among potential climate club members, not to mention non-club members. 3/9
3️⃣ #climateclubs can involve developed & developing countries equally in process of elaborating guiding principles for #industrialtransition. Process must be open to countries & follow WTO principles (fairness, openness to trade & non-discrimination of trading partners). 4/9
4️⃣ Gradual #CBAM deployment would: 1) accelerate industry decarbonization if accompanied by support 4 climate-neutral technologies 2) promote CO2 cost passthrough along value chain & incentivize transition to low-carbon materials & 3) raise important funds 4 financing #CCfDs. 5/9
5️⃣ Effective #CBAM must also protect exporters. Our proposal: 2 step-approach w/slower phase-in rate for auctioning before 2030 + prioritization of decarbonization support for abatement. Followed by risk review and possible targeted free allocation to exporters thereafter. 6/9
Our position: @EU_Commission proposal on #CBAM strikes an important balance: Up to 5 billion €/year could be raised via expanded innovation fund. The revenue would return to industry to support investment in key climate-neutral technologies. 7/9
#CBAM must be understood as part of a broader policy package for industry decarbonisation. For climate-neutral technologies to become viable in Europe, carbon-intensive industries that do not reduce their emissions must start to pay the full #carbonprice for emissions. 8/9
Want to learn more about #CBAM & #climateclubs in our impulse paper? Download the publication here 👉bit.ly/3Kurj0G 9/9

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Jan 7
Klimabilanz 2021: Deutschlands THG #Emissionen steigen um 4,5% (+33 Mio t CO2) ➡️ #2030Klimaziel droht außer Reichweite zu geraten. Ursachen: deutlich mehr Kohlestrom, mehr Heizbedarf, teilerholte Wirtschaft, niedriger Erneuerbaren-Ausbau & Erzeugung. 1/11 Die Energiewende in Deutschland: Stand der Dinge 2021
Emissionen sinken für 2030-Ziel nicht schnell genug. Deutlich zu wenig #Klimaschutz bei #Gebäude & #Verkehr, mehr Emissionen in der #Energiewirtschaft. #Industrie nur wegen Coronaeffekten auf Zielpfad. Nur Erneuerbare + Energieeffizienz bringen nachhaltige THG-Einsparungen. 2/11
#Erneuerbare erzeugen 2021 236,7 TWh Strom (-5,4% vgl. mit 2020): ungünstigere Wetterlagen schwächen Produktion von regenerativem Strom + fehlender Erneuerbaren-Ausbau kann Minderproduktion nicht kompensieren. Hoher #Gaspreis lässt #Kohleverstromung wieder steigen. 3/11
Read 11 tweets
Dec 15, 2021
Our take on the @EU_Commission’s second part of the #Fitfor55 package aimed at re-designing the EU’s internal #gasmarket rules and governing a future European #hydrogen pipeline network. 1/12
1️⃣ gas market: The proposed revisions to the internal gas market rules do not address that Europe’s #climatetargets imply a rapidly shrinking market for #fossilgas use already this decade. 2/12
The need to scale down #fossilgas and replacement by #electrification and only partially by non-fossil gases must become the underlying narrative of the gas market rules. Here is why! 3/12
Read 12 tweets
Nov 18, 2021
Hydrogen is one lever for #climateneutrality in areas which are challenging to electrify. But where does #H2 research stand currently & what new findings are available? With our new impulse "12 Insights on #Hydrogen" we shed light on the subject. 🧵 👇 1/8 Image
Finding 1: By 2050, carbon-free #H2 provides 1/5 of world's final energy, mainly made from renewable electricity. H2 should first decarbonize industry, shipping, aviation + consolidate a #greenenergy system. H2 infrastructure should meet need of industry, ports & power grids. 2/8 Image
Finding 2: Financing #greenH2 in no-regret applications (industry, power, shipping, aviation) needs additional policy support since #carbonprice will remain insufficient over the next decade. No credible financing strategy for introducing green #H2 in #households. 3/8 Image
Read 8 tweets
Nov 3, 2021
Do you already know our #GlobalSteel Transformation Tracker? Our new online tool provides insights on the status quo of #steelproduction worldwide, to the necessary reinvestments, announcements of #greensteel production before 2030 and more. Ready for some insights? 👇 #COP26 1/7 Global Steel Transformation...
Where are the steel centres located? Are blast furnaces, integrated direct reduced iron or electric arc furnace used for production? Our interactive map with data from @GlobalEnergyMon/@caitlinswalec lets you explore steelmaking around the world. 2/7 Image
Our #GlobalSteel Transformation Tracker visualises the required reinvestments of a country’s #blastfurnace fleet from 2021-2050. That most of the blast furnaces will reach the end of its working life before 2030 is an opportunity to replace them with low-carbon technologies. 3/7 Image
Read 7 tweets
Nov 3, 2021
#COP26 & #GlobalSteel: Steel sector must invest in 2020s into climate-neutral technologies to meet emission reductions target + to get on a 1.5°C pathway. We examined the opportunities + challenges for a green asset transition of the steel sector in various countries. Thread👇1/6 Image
Finding 1: Before 2030, 71% of existing coal-based blast furnaces (1090 Mt) need reinvestment. Together with new investment in emerging markets (170 Mt), it must flow to low-carbon technologies to save jobs and align the sector with 1.5°C pathway. 2/6 Image
Finding 2: #GlobalSteelTransformation must start in 2020s: key low-carbon technologies can be deployed now. Green steelmaking capacity before 2030 ➡️ many projects in pipeline. Operators should switch to secondary steel production + DRI, coal-based may be a dead-end road. 3/6 Image
Read 6 tweets
Oct 5, 2021
With the #SofiaDeclaration, the 6 #WesternBalkans countries have committed to #climateneutrality in 2050. To achieve this, a #lignite phase-out for power production is needed, ideally by 2040. To support the debate, we have developed 6 pathways (THREAD). #EUGreenDeal 1/12 The Future of Lignite in the Western Balkans
Where do we stand today? WB-6 power markets consist almost exclusively of two generation technologies: #lignite and #hydro. The share of either source varies considerably between the countries. 2/12 The Future of Lignite in the Western Balkans
Finding 1: 90 % of #lignite power plants in the #westernbalkans was put into operation 30 or more years ago. 40 % of the capacities are older than 40 years. The power plant park is in urgent need of #modernisation. 3/12
Read 12 tweets

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