Basic materials, such as aluminium, cement and steel, are central to our economies, but their production accounts for around 16% of European and 25% of global greenhouse gas emissions. It is therefore difficult to envisage how Europe can reach the commitments under the Paris Climate Agreement without significant emission reductions from the materials sector.
While some incremental improvements of existing production technologies have been achieved in sectors such as steel and cement, they amount to only modest reductions. The large, and necessary, mitigation potentials linked to break-through process technologies, new materials, more efficient material use and recycling remain largely untapped.
Transformation of the basic materials sectors to carbon neutrality will therefore require a robust policy framework that set sufficient incentives by improving the economics and viability of key “climate friendly” technologies, materials and practices. Decarbonisation along supply and value chains has to be pursued in association with resource efficiency, industrial symbiosis and the circular economy. Also, transformation should be inclusive, enabling all countries to benefit from the capital intensive investments required for this shift.
Achieving this goals require a shared vision of feasible development pathways, which build on the perspectives of all actors required for successful implementation.
Since the end of 2016 the Climate Friendly Materials Platform analyses the transformation of basic material production and use to achieve carbon neutrality by 2050. Convened by Climate Strategies, it brings together leading think tanks and university research groups, including DIW Berlin (Germany), IDDRI (France), IIT-Comillas (Spain), IVL (Sweden), Radboud University Nijmegen (Netherlands), REKK (Hungary), Vrije Universiteit Brussels (Belgium) and WiseEuropa (Poland). Researchers collaborate with policy makers, industry representatives, and practitioners in industrial decarbonisation for the development of a shared understanding of tangible policy options, coherent policy packages and eventually common policy action at the national and EU level to the overall goal of successfully decarbonise the European basic materials sector.
You could also find more information on the website of Climate Strategies here
This project explores options for an effective policy framework to advance innovation and use of low‐carbon technology and material options. To achieve this, the project:
Report from April 2021: Carbon Contracts for Difference. An assessment of selected socio-economic impacts for Germany
This report offers insights to support key German stakeholders on the implementation of an innovative and promising policy instrument for the decarbonization of the basic materials sectors: project-based Carbon Contracts for Difference (CCfDs).
It analyses selected socio-economic impacts of introducing this policy instrument in Germany. The reports accounts for the perspective of all relevant groups of stakeholders who emerged in the two project workshops and in other engagement activities during the project.
The analysis is structured in two parts. First, an assessment of design options and scale of funding for CCfDs based on case studies for specific materials industries in Germany. Second, a discussion on award mechanisms for CCfDs and potential to combine CCfDs with other instruments, such as the Innovation Fund.
Read the report here.
Policy Brief from December 2020 was published:
Last year, the Climate Friendly Materials Platform proposed an innovative policy framework to support the decarbonisation of the basic materials sector in the EU. A new policy brief from the platform focuses on one major component of this package: introducing the climate contribution to compliment the free allocation in the EU Emissions Trading System.
The brief clarifies the concept and explains why it is a viable option to meet the policy objectives of Carbon Border Adjustment Mechanism in a way that has major advantages compared to alternative instruments focusing on border measures. Read the full brief here, and attached, written by Aleksander Sneigocki and Kryzsztof Brzeziñski from Wise Europa.
You can also read a summary on the Climate Contributions Policy brief Climate Contribution: a smart policy solution for decarbonising material production and use in the EU here.
Policy briefs from the Climate Friendly Materials Platform have been published.
The first one, titled "A Climate-Neutral Industry: Status of policy debate in European Member States" and written by Mária Bartek-Lesi, Gábor Horváth and Balázs Felsmann from the Regional Centre for Energy Policy Research (REKK Alapítvány), provides a much-needed overview of the current policy landscape in five EU Member States (Germany, Hungary, the Netherlands, Poland, Spain) by investigating how the path to climate-neutral industrial production is reflected in their key national plans. By highlighting the different policies and measures in place, it provides recommendations on translating carbon-neutral objectives into national policy frameworks. Clear policy strategies are essential to guide corporate decision making and effective policy to achieve decarbonisation of European industry. Read the brief here.
The second brief, titled "Carbon Contracts for Differences: their role in European industrial decarbonisation" and authored by Timo Gerres and Pedro Linares from IIT-Comillas, provides an assessment of Carbon Contracts for Differences (CCFD), one of the elements of the policy package developed by the Climate Friendly Materials Platform in order to help decarbonise European’s industry while preserving its competitiveness. CCfDs are a powerful tool for helping European industry transformation during the first stages of the transition period towards a low emission economy, and the current discussion about a green recovery provides a great opportunity for their quick implementation. Read the policy brief here.
Report, June 2020: Investments in Climate Friendly Materials to Strengthen the Recovery Package
Supporting investments in climate friendly production and recycling of materials as part of the European and national Covid-19 recovery packages can both achieve the short term objective of effective recovery spending for boosting the economy and creating jobs as well as deliver climate and long-term economic benefits. In order to realize the full economic and climate benefits of investment support, a rapid implementation of the policy package envisaged in the European Green Deal is required.
More details please find here
Report, October 2019: Building blocks for a climate-neutral European industrial sector
The science is clear: global warming must be limited to 1.5 degrees Celsius to avoid catastrophic impacts. The Paris Agreement recognises the 1.5C-limit as well. The production of basic materials –cement, iron and steel, paper, aluminium, as well as chemicals and petrochemicals – is one of the main contributors to climate change, accounting for approximately 25% of global CO2 emissions, and around 16% of EU GHG emissions.
More details please find here
Jan Stede, Stefan Pauliuk, Gilang Hardadi, Karsten Neuhoff. Carbon pricing of basic materials: Incentives and risks for the value chain and consumers, Ecological Economics, 189, 107168. 2021
Olga Chiappinelli, Timo Gerres, Karsten Neuhoff, Frederik Lettow, Heleen de Coninck, Balázs Felsmann, Eugénie Joltreau, Gauri Khandekar, Pedro Linares, Jörn Richstein, Aleksander Śniegocki, Jan Stede, Tomas Wyns, Cornelis Zandt, Lars Zetterberg. “A Green COVID-19 Recovery of the EU Basic Materials Sector: Identifying Potentials, Barriers and Policy Solutions”, Climate Policy, 2021
K. Neuhoff, O. Chiappinelli, J. Richstein, H. de Coninck, P. Linares, T. Gerres, G. Khandekar, T. Wyns, L. Zetterberg, B. Felsmann. Closing the Green Deal for Industry Position Paper, July 2021 (earlier 2-page summary available here)
EU doesn’t need to choose between ambitious climate action and keeping its industry competitive. Press Release. 19.03.2021
Karsten Neuhoff, Olga Chiappinelli, Mats Kröger, Frederik Lettow, Jörn Richstein, Franziska Schütze, Jan Stede, Xi Sun. Green Deal for industry: a clear policy framework is more important than funding. DIW Weekly Report 10 / 2021, S. 73-82
Karsten Neuhoff, Frederik Lettow, Olga Chiappinelli, Timo Gerres, Eugénie Joltreau, Pedro Linares, Aleksander Sniegocki. Investments in climate friendly materials to strengthen the recovery package. (PDF, 0.77 MB) Climate Strategies Report, June 2020
Olga Chiappinelli, Mária Bartek-Lesi, Małgorzata Błocka, José Pablo Chaves Ávila, Balázs Felsmann, Timo Gerres, Pedro Linares, Karsten Neuhoff, Aleksander Śniegocki, Gabriella Szajkó, Zofia Wetmańska. Inclusive Transformation of the European Materials Sector. Report for the EUKI 2018 Project Climate-Friendly Materials Platform: Supporting the Transition in Central and Southern Europe. May 2019
Karsten Neuhoff, Olga Chiappinelli, Timo Gerres, Manuel Haussner, Roland Ismer, Nils May, Alice Pirlot, Jörn Richstein. Building Blocks for a Climate-Neutral European Industrial Sector. Policies to Create Markets for Climate-Friendly Materials to Boost EU Global Competitiveness and Jobs. (PDF, 1.13 MB) Climate Strategies Report, October 2019
Karsten Neuhoff, Olga Chiappinelli. Klimafreundliche Herstellung und Nutzung von Grundstoffen: Bündel von Politikmaßnahmen notwendig. 2018. DIW Wochenbericht 26/2018. S. 575-583
Karsten Neuhoff, Olga Chiappinelli, Chris Bataille, Manuel Haußner, Roland Ismer, Eugénie Joltreau, Ingmar Jürgens, Carlotta Piantieri, Jörn Richstein, Oliver Sartor, Puja Singhal, Jan Stede. Filling Gaps in the Policy Package to Decarbonise Production and Use of Materials. Climate Strategies Report, June 2018
Karsten Neuhoff, Olga Chiappinelli, Richard Baron, John Barrett, Maciej Bukowski, Vicki Duscha, Tobias Fleiter, Manuel Haussner, Roland Ismer, Robert Kok, Gregory F. Nemet, Hector Pollitt, Jörn Richstein, Tatiana Vakhitova, Tomas Wyns, Lars Zetterberg. Innovation and use policies required to realize investment and emission reductions in the materials sector. Climate Strategies Report. Initial findings. January 2017
Roland Ismer, Harro van Asselt, Jennifer Haverkamp, Michael Mehling, Karsten Neuhoff, Alice Pirlot. Climate Neutral Production, Free Allocation of Allowances under Emissions Trading Systems, and the WTO: How to Secure Compatibility with the ASCM. Discussion Papers 1948, 18 S. 2021
Kryzsztof Brzeziñski, Aleksander Sneigocki. Climate Contribution and its role in European industrial decarbonisation (PDF, 0.93 MB). Policy Brief, December 2020
Roland Ismer, Karsten Neuhoff, Alice Pirlot. Border Carbon Adjustments and Alternative Measures for the EU ETS: An Evaluation. Discussion Papers 1855, 21 S. 2020
Susanne Dröge, Karsten Neuhoff, Christian Egenhofer, Milan Elkerbout. How EU Trade Policy Can Enhance Climate Action: Options to Boost Low-Carbon Investment and Address Carbon Leakage. CEPS Report, September 2019
Karsten Neuhoff, Roland Ismer, William Acworth, Andrzej Ancygier, Carolyn Fischer, Manuel Haussner, Hanna-Liisa Kangas, Yong-Gun Kim, Clayton Munnings, Anne Owen, Stephan Pauliuk,Oliver Sartor, Misato Sato, Jan Stede, Thomas Sterner, Michael Tervooren, Ruud Tusveld, Richard Wood, Zhang Xiliang, Lars Zetterberg, Vera Zipperer. Inclusion of Consumption of Carbon Intensive Materials in Emissions Trading, An Option for Carbon Pricing Post-2020. Climate Strategies Report, May 2016
Roland Ismer, Manuel Haussner, Karsten Neuhoff, William Acworth. Inclusion of Consumption into Emissions Trading Systems: Legal Design and Practical Administration. Discussion Papers 1579, 23 S. 2016
Roland Ismer, Manuel Haussner. Inclusion of Consumption into the EU ETS: The Legal Basis under European Union Law. Reciel, Volume 25, Issue 1, S. 69 - 80. 2016
Susanna Roth, Lars Zetterberg, William AcWorth, Hannah-Liisa Kangas, Karsten Neuhoff, Vera Zipperer. The pulp and paper overview paper. Sector analysis for the Climate Strategies Project on Inclusion of Consumption in Carbon Pricing. Climate Strategies Report, May 2016
K.Neuhoff, W.Acworth, A. Ancygier, F.Branger, I. Christmas, M. Haussner, R. Ismer, A. van Rooij, O. Sartor, M. Sato and A. Schopp. Steel Report: Carbon Control Post 2020 in Energy Intensive Industries. Climate Strategies Report, October 2014
K.Neuhoff; B. Vanderborght; A. Ancygier; A.T. Atasoy; M. Haussner; R. Ismer; B. Mack; JP. Ponssard; P. Quirion; A. van Rooij; N. Sabio; O. Sartor; M. Sato and A. Schopp. The Cement Report: Carbon Control and Competitiveness Post 2020 Climate Strategies Report, February 2014
Jörn C. Richstein, Mats Kröger, Karsten Neuhoff, Olga Chiappinelli, Frederik Lettow. Carbon Contracts for Difference. An assessment of selected socio-economic impacts for Germany (PDF, 0.89 MB). CFM TRACTION Project Report, April 2021
O. Chiappinelli, A. Śniegocki, J. C. Richstein, M. Kröger, F. Lettow, K. Neuhoff, J. Stede, K. Brzeziński. Unlocking transition to climate-friendly material sector in Europe with Carbon Contracts for Difference and Climate Contribution Policy Brief for the CFM TRACTION Project, 2020
O. Chiappinelli, A. Śniegocki, J. C. Richstein, M. Kröger, F. Lettow, K. Neuhoff, J. Stede, K. Brzeziński. Contracts for Difference and Climate Contribution: A comparison between Germany and Poland Synthesis Report for the CFM TRACTION Project. 2020
Timo Gerres, Pedro Linares. Carbon Contracts for Differences: their role in European industrial decarbonisation (PDF, 1.61 MB). Policy Brief, November 2020
Roos van der Reijden, Heleen de Coninck, Gauri Khandekar, Tomas Wyns. Transforming industrial clusters to implement the European Green Deal. (PDF, 1.29 MB) Policy Brief, January 2021
Mária Bartek-Lesi, Gábor Horváth, Balázs Felsmann. A Climate-Neutral Industry: Status of policy debate in European Member States. (PDF, 1.65 MB)Policy Brief, November 2020
The Climate Friendly Materials Platform builds on continuously work since 2013 to develop an effective policy framework to decarbonise the basic materials sector.
Activities under the Platform (outlined below) have received funding support from the governments of the Netherlands, Germany, France and the United Kingdom, from Heidelberg Cement, Tata Steel Europe, ArcelorMittal, Formas Commons, the Mistra Indigo Programme, Mistra Carbon Exit Programme, Leeds University, Germany’s European Climate Initiative (EUKI) and the European Climate Foundation.
Round-table workshops take place at DIW Berlin or at various international institutions to which Platform's research members are affiliated depending on specific collaborations, funding sources and focus on specific relevant topics.