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Climate Friendly Materials Platform

Current Project


Climate Policy

Project Management

Karsten Neuhoff

Project Period

September 1, 2016


Basic materials, such as aluminium, cement and steel, are central to our economies, but their production accounts for around 16 percent of European and 25 percent 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:

  1. Develops a shared vision and framework to think about policy needs for net-carbon neutrality in materials sector
  2. Advances analysis on individual policy instruments and governance framework for their implementation
  3. Supports converging of preference for European based policy instruments in discussions within EU member states and at Brussels level to contribute to common basis for policy implementation
  4. Supports capacity building and developing of common knowledge base on the policy options for delivering material sector decarbonisation 

Policy framework for basic materials

Karsten Neuhoff, Olga Chiappinelli, Timo Gerres, Roland Ismer, Till Köveker, Pedro Linares, Jörn Richstein. "Addressing export concerns in the CBAM File (PDF, 457.68 KB)", Policy Brief, Climate Friendly Materials Platform, 2022

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

Climate Contribution (excise)

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

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

Manuel Haussner. Including Consumption in Emissions Trading.Economic and Legal Considerations. In: Elgar Studies in Climate Law. 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

Carbon Contracts for Difference

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

Regional Perspective

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.

Climate Friendly Materials Market Creation Through Policy Innovation CFM TRACTION

Climate-Friendly Materials Platform: Supporting the Transition in Central and Southern Europe

Inclusion of Consumption in Emissions Trading

Carbon Control Post 2020 in Energy Intensive Industries

  • December 16, 2022

    Climate Friendly Materials Platform

    Towards High-Quality Material Recycling

    Speaker: Jessica Richter (The International Institute for Industrial Environmental Economics (IIIEE), Lund University), Timo Gerres (Universidad Pontificia Comillas), Svenja Grummt (Umweltbundesamt (UBA)), Peter Stemmerman (Karlsruhe Institute of Technology (KIT)), Klaus Jacob (Freie Universität Berlin), Aleksander Sniegocki (Reform Institute), Elise Bernhard (Berlin Recycling GmbH), Boris Jankowiak (Climate Action Network (CAN) Europe), Karsten Neuhoff, Xi Sun, Merve Küçük, Sophie Behr
    Time: 09:00 - 16:00

    The cost of recycling raw materials remains high despite the technological advancements in the field. End-of-life waste recycling is less cost-effective compared to landfill or incineration and its economic feasibility shows large variation according to material type rending secondary recycled materials uncompetitive to primary materials. Eliminating these barriers in the way of circularity and ...

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  • January 26, 2022

    Climate Friendly Materials Platform

    Webinar: A robust CBAM design to unlock climate-friendly industry investments at EU scale

    Speaker: Bas Eickhout (Member of European Parliament), Erika Mink (Head Government & Regulatory Affairs, Thyssenkrupp), Marco Mensink (Director, European Chemical Industry Council, Cefic), Heleen De Coninck (Professor at Eindhoven University of Technology and Radboud University), Karsten Neuhoff, Olga Chiappinelli
    Time: 16:00 - 17:30

    This webinar  brought together experts, industry representatives, and policymakers to discuss how the carbon border adjustment mechanism (CBAM) can play its part in the Fit for 55 (F55) package and unlock climate-friendly investments at EU scale. In particular, it offered a space to discuss an alternative design option for the CBAM, often referred to as the excise option (option 6 in the ...

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  • January 11, 2021

    Climate Friendly Materials Platform

    CFM-Traction European Dialogue:The Policy Toolkit for Net-Zero Industrial Innovation

    Speaker: Aleksander Śniegocki (WiseEuropa), Olga Dzilińska-Pietrzak (Grupa Azoty), André Horstkötter (ThyssenKrupp), Peter Menck (German Federal Ministry for Economic Affairs and Energy), Oskar Kulik (WWF Poland), Rob van der Meer (HeidelbergCement), Udo Sieverding (Verbraucherzentrale NRW), Frank Sibert (BNP Paribas), Julie-Anne Hogbin (Climate Strategies), Karsten Neuhoff, Olga Chiappinelli
    Time: 13:00 - 14:45

    This event, organized as part of  the CFM-TRACTION  project, is designed as a stakeholder dialogue to accelerate progress towards an effective policy framework to support net-zero industrial innovation. At the event we aim to: ·    Exchange knowledge on policy instrument design, synergies in the policy mixes, the structure of an effective policy packages and its ...

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  • December 14, 2020

    Climate Friendly Materials Platform

    CFM-Traction joint Germany-Poland online workshop

    Speaker: Andrzej Błachowicz (Climate Strategies), Aleksander Sniegocki (WiSeEurope), Karsten Neuhoff
    Time: 12:00 - 14:00

    This event, organized in the context of the CFM-TRACTION  project, is a small-scale joint workshop with key stakeholders in industrial decarbonisation across German and Poland. We are bringing together key voices to discuss the results from our series of national workshops, to discuss and compare perspectives on the national level between the two countries.

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  • December 4, 2020

    Climate Friendly Materials Platform

    Carbon Contracts for Differences and effective CO2 pricing along the value chain in industry
    2nd Online-Workshop

    Speaker: André Horstkötter (Thyssenkrupp), Brigitta Huckestein (BASF), Ellen von Zitzewitz (BMWi), Olga Chiappinelli, Karsten Neuhoff, Jörn C. Richstein
    Time: 15:00 - 16:30

    In the first CFM-Traction Workshop, preliminary results on the scale of savings that CCfDs could achieve and a first estimate of the amount of public funding required for CCfDs in Germany were discussed, in addition to design options for CCfDs. Furthermore, estimated distributional effects of CO2 pricing along the value chain were discussed. In this second workshop, follow-up analysis on these ...

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