Climate Friendly Materials Platform

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

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