Climate governance

Meeting the temperature objectives under the Paris Agreement will require disruptive system innovations in all sectors of the global economy. To make the required transition a success, we will need strong governance frameworks that combine long-term strategic planning complemented with compatible short- and mid-term policy development. This will allow countries to achieve their climate neutrality objectives in a smart and cost-effective way, and to reap the many opportunities of a transition to a climate-neutral society.

The EU is not only a major current and historical emitter of greenhouse gases, but is also in a unique position to shape climate action beyond its own borders. Acting together, EU Member States have the financial resources, market presence and diplomatic sway to bring other global players along with them in pursuing greater climate ambition. We believe that recent climate neutrality commitments from Japan, China and South Korea were strongly influenced by the EU’s efforts.

To continue to lead by example, the EU and Member States must do more to strengthen their governance frameworks to ensure the level of ambition and policy framework to deliver emissions reductions remains in line with keeping temperature increases in line with the goals of the Paris Agreement. With the launch of the European Green Deal and the EU’s 2050 climate neutrality target, the EU is revising the main corpus of its climate regulations. The new intermediary 2030 target of at least 55% means that EU and national targets for energy efficiency, renewable energy and emission reductions need to be ramped up and achieve transformative change during the next decade.

While the targets and regulations may be set at EU level, a lot of the heavy lifting of the European Green Deal will have to be done at nationally. Behind the 2030 and 2050 targets are very diverse Member States facing different challenges to decarbonise and provide a just transition for their citizens. Our work on national climate policies focuses on the need for strategic national investment plans for climate action. These plans should prioritise cost-effective, long-term solutions and avoid stranded assets or lock-in effects.

At the same time, we study the interactions between EU policies and climate policies outside the EU. Policies such as the Carbon Border Adjustment Mechanism can incentivise global climate action and spark international debate, but if these policies are not well presented and understood nationally, there is a risk of opposition and retaliation. Established EU policies such as the EU ETS can provide a basis for the development of climate policies elsewhere, but repetitions of the EU’s mistakes in these areas should be avoided.

Past successes