Low Carbon Economy

Climate change is having a profound impact on people’s lives across the world. Mitigating and adapting to climate change will require major economic investment and coordinated action to transition to a sustainable, low-carbon economy. The 2022 World Trade Report explores the complex interlinkages between climate change and international trade and how international trade and trade rules can contribute to addressing climate change.

The energy sector is the source of around three‐quarters of greenhouse gas emissions today and holds the key to averting the worst effects of climate change, perhaps the greatest challenge humankind has faced. Reducing global carbon dioxide (CO2) emissions to net zero by 2050 is consistent with efforts to limit the long‐term increase in average global temperatures to 1.5 °C. This calls for nothing less than a complete transformation of how we produce, transport and consume energy. The growing political consensus on reaching net zero is cause for considerable optimism about the progress the world can make, but the changes required to reach net‐zero emissions globally by 2050 are poorly understood. A huge amount of work is needed to turn today’s impressive ambitions into reality, especially given the range of different situations among countries and their differing capacities to make the necessary changes. This special IEA report sets out a pathway for achieving this goal, resulting in a clean and resilient energy system that would bring major benefits for human prosperity and well‐being.

Global progress towards tackling climate change is lagging. This paper puts forward a framework to design comprehensive decarbonisation strategies while promoting growth and social inclusion. It first highlights the need of evaluating a country’s national climate targets and current policy mix, in conjunction with facilitating monitoring tools to assess current and future progress, as a key step to design effective decarbonisation strategies. It then provides a detailed comparison of several policy instruments across different assessment criteria, which indicates that no single instrument is clearly superior to all others. This highlights the need for developing decarbonisation strategies based on a wide policy mix consisting of three main components: 1) emission pricing policy instruments; 2) standards and regulations; 3) complementary policies to facilitate the reallocation of capital, labour and innovation towards low-carbon activities and to offset the adverse distributional effects of reducing emissions. However, there is no one-size-fits-all policy mix, as feasible policy choices depend on countries’ industrial structure, social preferences and political constraints. A robust and independent institutional framework, stakeholders engagement and credible communication campaigns are key to managing these constraints and ultimately enhancing public acceptance of climate mitigation policies.

This paper assesses the role of carbon pricing in a sustainable recovery from COVID-19. It tracks the policy changes in carbon pricing within OECD and G20 countries between January 2020 and August 2021 of the COVID-19 pandemic. Carbon pricing as defined here includes emissions trading schemes, fossil fuel support and carbon, fuel excise or aviation taxes. The paper also highlights the need for the recovery to be sustainable and discusses the advantages, limitations and uses of carbon pricing therein. In addition, it describes additional challenges to as well as increased rationale for carbon pricing in the pandemic. It provides evidence on the effects of carbon pricing on the challenges and discusses carbon pricing design elements to help overcome those challenges. The paper concludes that there were more policy changes with an expected negative impact on climate. However, it is likely that the impact of the climate-positive changes – which are broader in coverage and scope - will outweigh the climate-negative changes.

This report explores the circular economy from a product perspective, applying a systemic approach and transition theory. Drivers of product design and usage are discussed in the context of emerging consumption trends and business models. For governance to be effective, it has to address the product life-cycle and the societal context determining it. Indicators and assessment tools are proposed that can help fill the current data and knowledge gaps.

London is not on pace to meet its current emissions target, a 60 per cent reduction by 2025. We call on the next mayor of London to pick up the pace – and provide a plan for how they could pursue an ambitious new target, for London to be a zero-carbon city by 2050.

This presentation-style report sets out nine 'Essentials' and 12 'Desirables' for the next mayor to deliver, if the 2050 emissions target is to be achieved. As well as providing benefits in terms of reducing greenhouse gas emissions, many of these policies and investments will benefit Londoners by promoting economic growth, creating jobs, improving health and life expectancy, saving residents and businesses money and energy, and making London a nicer city to live in.

At the same time, London has a great opportunity to take a global leadership role in city-led climate change action, sharing with and learning from major towns and cities across the UK and internationally.

Human societies have always been climate dependent, but we are only now coming to grips with the fact that our climate also depends on us. As the second decade of the 21st century gets underway, we now recognize that we are faced with two challenges created by our ever-increasing emissions of greenhouse gases. First, the atmosphere is warming, setting the stage for a host of problems from droughts, extreme weather events, coastal erosion and inundation, to which we have to adapt. And second, we must begin implementing strategies to slow down our greenhouse gas emissions to mitigate the scale of these impacts while putting in place corresponding adaptation measures.

These challenges are particularly problematic for countries and economies in the Asia Pacific. On the one hand, the region is slated to face some of the greatest climate related impacts relative to other regions of the world. On the other, developing economies in the region will see substantial expansions of their middle classes and the greenhouse gas emissions their lifestyles generate.

The future scenario(s) aimed to illustrate how social, economical and political demand could be harnessed to move the Asia Pacific along a path toward putting far less carbon into the atmosphere by 2050. Science and technology development, including technology transfer, that respond to such demand was seen a key driver of this transition and thus was a major focus of the project. The future scenarios and policy recommendations developed from this project were meant to reflect the economic and social conditions among APEC economies and be consistent with their common but differentiated responsibilities and capabilities. While the project’s main focus was on longer-term perspectives, recommendations were to be developed for APEC and member economies that spell out short-term actions that could be taken to more quickly reduce the region’s carbon
footprint.

The low-carbon cities in the APEC region differentiate from each other in terms ways and focuses of development due to their distinctive natural conditions, economic development, industrial structure and cultural tradition. Drawing from the experiences from all the member economies, this report offers suggestions for the development models and toolkit of low-carbon cities.
The concept of Low Carbon City originates in Low Carbon Economy, which was put forward in the context of coping with the global climate change and advocating less greenhouse gases emission during human production and living activities. In 2003, the government of United Kingdom published its "Energy White Paper" entitled "Our Energy Future: Creating a Low Carbon Economy", in which the concept of Low Carbon Economy was first put forward. The White Paper pointed out that Low Carbon Economy means to achieve more economic output by less natural resources consumption and environmental pollution, in order to create approaches and opportunities for a higher living standard and better living conditions, and to provide new business opportunities and more job opportunities for the development, application and output of advanced technologies. Low Carbon Economy gives consideration to both "Low Carbon" and "Economy", of which Low Carbon is a model that humans respond to the climate change to realize sustainable economic and social development. Low Carbon means we must reduce or even stop depending on carbon-based fuel to the greatest extent and realize energy utilization transition and economic transition in the pursuit of economic development; Economy, means we need to maintain a stable and sustainable economic development on the basis and in the course of energy utilization transition, however this concept should not exclude the maximum of development, output, and long-term economic growth.