Research-based
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Perspectives Climate Research

Perspectives is an independent group of highly qualified consultants and researchers providing the private sector, governments and non-governmental organisations (NGO) with practical solutions for domestic and international climate policies, climate finance, and international greenhouse gas markets.

Perspectives is internationally recognized for its outstanding contribution to establishing and advancing the Clean Development Mechanism (CDM), including the successful design of UNFCCC-approved baseline and monitoring methodologies and the management of complex Programmes of Activities (PoAs). In addition, Perspectives has been leading the development of pioneering approaches for Nationally Appropriate Mitigation Actions (NAMAs) and Low Emission Development Strategies (LEDS) in many countries and sectors around the world – both on the conceptual as well as on the practical level. We strive for environmental integrity and effectiveness of climate policy interventions.

Building on  experiences accumulated over decades, Perspectives’ team is applying its technical and political expertise to support governments in the update and implementation of their Nationally Determined Contributions (NDC) under the Paris Agreement. Our deep knowledge of numerous economic sectors at various stages of development and their potential mitigation contributions as well as our analytical work on national mitigation targets lends itself perfectly to develop the mitigation strategies underpinning NDCs. We support the development of Monitoring, Reporting and Verification (MRV) procedures for mitigation and adaptation, including assessment of sustainable development co-benefits.

We strive for environmental integrity and effectiveness of any climate policy, climate finance and adaptation, and are contributing to the evolution of the Green Climate Fund (GCF) and other international climate finance providers through policy advice and funding proposal development. Throughout the eventful history of international climate policy, Perspectives has provided first-rate advice on the latest policy innovations – and we are at your disposal for designing the innovations of the future.

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Towards an Inclusive Climate Alliance With a Balance of Carrots and Sticks

As G7 countries generate 25% of world greenhouse gas emissions, an open and cooperative G7 climate alliance can accelerate international climate policy in a transformative and inclusive manner. Building upon a proposal of the German Government (2021), we propose the following design elements for such an alliance:

  1. Membership conditions that benefit all members and are sufficiently ambitious to enable a pathway to genuine ‘net zero’

Reaching ‘net zero’ emissions globally by mid-century is key to enable limiting global warming to 1.5°C – the core objective of the Paris Agreement. The alliance must adopt membership conditions that keep the aim of 1.5°C alive. These include:

  • a differentiated carbon price with a common floor, e., an effective price set in accordance with criteria that reflect different economic capacities, with a floor at 50 € in 2025 and 100 € in 2030.
  • common energy sector policies consistent with a pathway to genuine net zero, including a 2024 removal of fossil fuel subsidies, a 2030 phase-out date for coal-fired electricity generation for OECD members that join the alliance and a commitment to immediately end the new development of upstream coal, oil and gas supply infrastructure;
  • a joint effort sharing mechanism to achieve emission reductions based on Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).

 

  1. Apply a ‘carrot and stick’ approach based on Article 6 and a differentiated CBAM to encourage alliance participation

‘Carrots’ should be designed as an open means to incentivize decarbonization outside of the alliance and encourage participation in the alliance. We recommend using international carbon markets under Article 6 of the Paris Agreement as a carrot, providing an additional financial incentive to non-members of the alliance for low carbon development. A differentiated carbon-border adjustment mechanism (CBAM) is the crucial ‘stick’ to avoid carbon leakage, with differentiation based on development status and clear exemptions for Least Developed Countries (LDCs). Additional carrots should include differentiated carbon border levy refunds as well as targeted industry and energy partnerships.

  1. Use a ratcheting mechanism to raise ambition

A roadmap to ratchet-up the ambition of measures within and beyond the alliance is essential. Such roadmap should align with five-year NDC update cycles under the Paris Agreement, adjustable to align with national and global net zero targets and set clear milestones for expansion regarding sectors (from heavy industry and energy to land use) as well as countries (from G7 to G20 and beyond). Ensuring institutional continuity of the alliance requires a legally binding agreement that is independent from annually changing G7 presidencies and governed by a secretariat hosted by one or more volunteering member states, with a slim administration and explicit inclusion of a wide range of civil society representatives.

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