Reports & Papers

The Africa in Focus series is a forum for the intellectual and critical analysis of processes and policies from the continent and its engagement with the international community. Through thoughtful and dynamic programming, Africa in Focus brings greater African perspectives into broader policy conversations at HKS.

Ely Sandler and Daniel Schrag propose a new approach to Article 6 of the Paris agreement, arguing that states must use cross-border investment to finance the energy transition. By linking additionality to an investment’s impact on cost of capital, Sandler and Schrag demonstrate how Article 6 can leverage blended finance to de-risk private investment, creating a new model of public private partnership. The paper uses case studies from the Middle East and North Africa region to demonstrate the potential economic, environmental and political benefits of cooperation on Article 6.  

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

Platforms can bring challenging and divisive policy issues to a new kind of democratic process, enabling a ‘people’s mandate’ for their policies and helping mitigate corporate and partisan power.

This discussion paper explores key areas of disagreement on Article 6 and explores possible outcomes from the upcoming Conference of the Parties to the United Nations Framework Convention on Climate Change (COP-26) in November 2021 in Glasgow.

There are potential roles for sub-national climate policies in addressing climate change. Theory and experience of nesting sub-national climate policies within a broader, national climate policy indicate that the interactions between the two levels of governance can be problematic, benign, or positive, depending upon the nature, design, and stringency of the policies. When the national system is a tradable performance standard, as with China’s national system, the consequences are similar to those with cap-and-trade, but more complex.

This report is derived from a half-day conference in April 2021 co-sponsored by the Intelligence Project and the Environment and Natural Resources Program at Harvard Kennedy School’s Belfer Center for Science and International Affairs, along with the Center for Climate and Security and The Cipher Brief. It explores the requirements of the U.S. Intelligence Community (IC) to fulfill the mission prescribed by President Biden, DNI Haines, and Secretary Kerry. The IC must rise to challenge, unshackled from the past, to re-imagine its role in combatting climate change. The IC has talked the talk about climate change, and now it needs to walk the walk. The stakes are too high not to do so.

Donald Trump’s 2016 election and his nomination of climate skeptic Scott Pruitt to head the Environmental Protection Agency drastically downshifted expectations on U.S. policy toward climate change. Joseph Biden’s 2020 election shifted them dramatically upward. The authors study firms’ stock-price movements in reaction. As expected, the 2016 election boosted carbon-intensive firms. Surprisingly, firms with climate-responsible strategies also gained, especially those firms held by long-run investors. Such investors appear to have bet on a ‘‘boomerang’’ in climate policy. Harbingers of a boomerang already appeared during Trump’s term. The 2020 election marked its arrival.

This paper explores the dynamics of media chatter about economic reforms using text analysis from about a billion newspaper articles in 28 languages. The paper shows that the intensity of reform chatter increases during economic downturns. This increase is more significant in democracies. Using instrumental variable techniques, the analysis finds the relationship to be causal. The paper also documents that reform chatter is followed by actual reforms, suggesting that democracies benefit from a “self-correcting” mechanism stemming from changing popular attitudes toward reform. 

The Arctic of today does not resemble the Arctic of fifty years ago, and the Arctic of 2070 will be different still, based on everything we know now. Warmer temperatures on land and in the ocean, retreating sea ice and glaciers, thawing permafrost, rapidly changing ecosystems, range expansion of novel species and stress in native species, changing ocean chemistry, and altered seasons all contribute to significant alteration of a region in an extremely compressed timescale. At the same time, globalization and the increasing international interest in the region add new pressures for access, development and geopolitical positioning in the Arctic. Concerns about the implications and impacts of that intensified engagement generate even more anxiety about the transformation to a brand-new Arctic in the 21st Century.