This study offers insights into the institutional arrangements established to coordinate policies aiming at the mitigation of and adaptation to climate change. Drawing on the literature on policy design, we highlight institutional arrangements as elements of policy design spaces and contend that they fall into four categories that either stress the political or problem orientation of this activity: ...
The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80% of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by helping investors to make informed decisions. However, especially in transition sectors much depends on the stringency ...
The Frankfurt School – UNEP Collaborating Centre, the German Institute for Economic Research, and Justus-Liebig-University Gießen jointly conduct research on scenario analysis as a tool on the path to climate neutrality. The three-year project SATISFY will produce insights into how investors, firms, and regulators can use scenario analysis in the climate transformation of business models in carbon...
Until the Russian war in Ukraine and its strong effects on the re-organisation of energy flows in Europe, it seemed a consensus that fossil assets will become stranded within the coming decades due to ever more stringent climate policy. Therefore, investments in such assets should be avoided as early as possible. With the newly awakened focus on energy security, the insurance aspect of redundant...
The debate about making investments and the financial sector more sustainable often focuses on a narrow distinction between "green" and "brown" assets that does not match the situation in the real economy, writes Franziska Schütze from the German Institute for Economic Research (DIW). The sustainable finance expert says journalists need to read between the lines and make the many colours visible to ...
Designing auctions that favor low resource quality installations allows countries to geographically diversify their renewable energy production, while lowering payments to low-cost producers. In this paper, we develop a stylized model showing that a discriminatory auction design favoring low-wind-yield locations leads to a tradeoff between production costs and producer rent and that the scheme can ...