Reports & Papers

Since the Paris Agreement's adoption in 2015, a majority of the world's largest investors have begun to take action on climate change. According to a new report, the 2016–2017 year showed an average improvement in decarbonization within all major investor categories except pension funds.

Authors Christoph Böhringer and Thomas Rutherford evaluate the efficacy of imposing carbon tariffs on U.S. imports as an alternative to U.S. participation in the Paris Agreement. The authors warn that carbon tariffs on the United States could lead to a tariff war that ultimately hurts China, in particular, and the European Union more than the United States.

On 24 and 25 November 2016 experts from politics and academia, including FDP Executive director Cathryn Clüver, discussed the impact of Brexit on several policy areas in a series of workshops at the Hertie School of Governance in Berlin. All events took place under Chatham House rules.

This discussion paper explores the potential adverse impacts of unilateral climate policies on domestic energy-intensive and trade-exposed industries.

In pursuit of a workable successor to the Kyoto Protocol, this study offers a framework of formulas that produces precise numerical targets for emissions of carbon dioxide (CO2) and other greenhouse gases, in all regions of the world in all decades of this century....Firms, consumers, and researchers base their current decisions to invest in plant and equipment, consumer durables, or new technological possibilities on the expected future price of carbon: If government commitments are not credible from the start, then they will not raise the expected future carbon price.

This paper proposes a new architecture for international climate policy that might usefully be considered by delegates at COP 17 in Durban. It highlights a top-down approach that is designed to produce a fair distribution of burdens across countries, while achieving objectives of: (a) economic development; (b) decreasing wealth inequality; and (c) emission reductions consistent with holding the expected increase in global average temperature to 2 degrees Celsius. In addition, this discussion paper discusses several key design elements that will be important, especially from the perspective of developing countries, to the success of COP 17 and subsequent international climate negotiations. These design elements include agreements on burden sharing, choice of policy instruments, financial mechanisms and technology transfer, penalties for noncompliance, and linkages between trade and climate change.

This paper describes and evaluates the system for trading CO2 emission permits introduced by the European Union to encourage the reduction of greenhouse gas emissions to help abate climate change. This system represents a live example of a functioning trading system under the so-called cap-and-trade approach to limiting greenhouse gas emissions.

This article examines the legal and political impediments to the Kurdish Regional Government's (KRG) exploration and production contracts, which the central government in Baghdad has refused to recognize. The newly established Iraqi national constitution significantly opened as many petroleum-control questions as it resolved. Negotiated in 2005, the constitution not only separated branches of government, but established Federalism as its lodestar. When faced with unresolved issues over regional and national control over petroleum resources, however, International Oil Companies (IOCs) function in an ambiguous legal environment that fails to clearly distinguish between federal and regional powers.