Energy

In the first of two articles on post-COP28 carbon financing, Research Fellow Ely Sandler shares insights on the legacy of COP28.

In the second of two articles on COP28 outcomes, Ely Sandler shares insights on the some of the changes needed to scale carbon finance.

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.  

What was accomplished? COP26 created pressure for some countries to produce revised  Nationally Determined Contributions, helped catalyze new pledges to reduce emissions (including from India), led to the approval of the rules to govern international cooperation and carbon markets (the Paris Rulebook) addressing the issue of double counting, and served as the Launchpad for some novel initiatives that could play a useful role. Among the announcements that were made, was one that recognizes the importance of strategic investment and government action to lower the cost of technologies to reach carbon neutrality.

Kelly Sims Gallagher asserts that politicians' pledges of dramatic long-term reductions should not let them off the hook for their failure to achieve more modest progress in the short term.

Joel Clement describes the influence of U.S. Senators Lisa Murkowski and Joe Manchin over the Department of the Interior and advises that a forward-looking legislator in a fossil-fuel state would be wise to fight aggressively for financial commitments to make the people in their state part of the vanguard of the new clean energy economy, rather than set back the U.S. economy by fighting the inevitable energy transition itself.

Joel Clement outlines why he is vexed by global negligence with regards to investments in the fossil fuel industry.

Joel Clement describes some immediate opportunities—and emphasize specific recommendations—to establish the Interior Department as a purposeful catalyst for a fair and just transition to clean energy, healthy ecosystems, and thriving communities.

Daniel Schrag argues that in order to reestablish the United States as a serious partner in addressing global climate change, the president must make good on the original standards of the Paris Agreement.

John P. Holdren, science advisor to the Obama administration, lists 6 things he thinks Joe Biden would do on climate change.