Financing a green and just transition is one of the greatest challenges in the fight against climate change: decades of inaction and investments into fossil fuels leave us limited time to reach net-zero by 2050.
Solutions are complicated and encompass a range of tools and initiatives.
We seek to identify and push for a sustainable economy that enables and deploys low-carbon and renewable technologies & solutions.
- The flow of capital to projects and initiatives delivering real climate action must be increased.
- To enable, deploy, and scale real climate solutions, support mechanisms need to be identified and an appropriate regulatory framework must be implemented.
- Fair and competitive market conditions are needed for low-carbon and renewable technologies & solutions to thrive.
Economic systems still operate in a way that disproportionately favours fossil-based over renewable and low-carbon activities. Our work on a sustainable economy has its basis in observed failures of markets to deliver on their own in the fight against climate change.
Public funding and support mechanisms are widely needed across a range of topics to help facilitate technological development, innovation and deployment of climate solutions. Private financing has an important role to play. It is also crucial that clear and credible classification mechanisms, and transparent information on economic activities’ contribution to real climate action, are made available. This will foster an increased flow of private and public capital to the right projects in the fight to tackle climate change.
Uncertainties and risks are the main barriers standing in the way of long-term development of low-carbon and renewable markets. Ensuring a predictable and harmonised regulatory framework across Europe has been a building block in our work to foster such developments since our founding. This is particularly important in the context of ensuring fair and competitive markets taking into account the need and value of real climate action.
What is the road ahead for interconnected carbon pricing systems and CBAMS?
December 9, 2023
Bellona Foundation Pavilion, Zone B7/88, Blue Zone, COP28
Classification mechanisms for sustainable economic activities around the world
December 8, 2023
Bellona's Pavilion, Blue Zone COP28
Publications related to focus areaAll publications
Policy Brief: Addressing classification mechanisms for sustainable economic activities around the world
The case for an International COP Forum: Encouraging new initiatives & reducing fragmentation Classification mechanisms for sustainable econo...
Policy Brief: The EU Sustainable Finance Taxonomy’s spillover effects on International classification mechanisms for sustainable economic activities
This brief examines the impact of the European Union’s Sustainable Finance Taxonomy Regulation and its Complementary Delegated Act (CDA) on global su...
The Case for Updating EU Procurement Policy
Procurement is a powerful market force. Big buyers, be they public or private, can stimulate more sustainable practices by driving demand and developing lead markets for greener products and services. There is both significant potential and responsibility to strengthen procurement as a tool in Europe’s the green transition.
Benefits of a Long Term Floor Price for the UKETS
An enhanced auction reserve price in the UKETS could create a range of benefits for stakeholders. There are now an increasing number of examples around the world from which to draw lessons. This briefing reviews the issues.
Sustainable Products Initative Position Paper
The SPI acknowledges and attempts to tackle existing market failures by including externalities and establishing sustainability principles for products. We welcome the frameworks established in the SPI, and the potential they hold for key sectors such as heavy industry. Read more on our take on the SPI in this consultation response.
Making a Difference in European Carbon: fitting in a CBAM to support heavy industry transformation
This report models four scenarios for how a CBAM could be made part of the Fit for 2030 package to be launched in July 2021 as part of the EU Green Deal agenda and concludes that at least 75% coverage for the selected sectors should be pursued. This option has the benefit of generating more income for innovation and deployment earlier on in Phase IV (already in 2026) therefore having the possibility of turning the next decade into one of action and success for the transformation of heavy industry in the EU.
Undefined ‘decarbonised’ gas has no role on path to net-zero by 2050
As efforts to decarbonise our economy and energy systems pick up, we are seeing an increased reliance on decarbonized fuels, gas in particular - often times referred to as “renewable” and “low-carbon” gases. While low carbon intensity gases and fuels can contribute on the path to net-zero by 2050 – the terminology is confusing, with no common definition to determine when in fact a gas or fuel is renewable or low-carbon.
Briefing: Defining Low Carbon and Renewable Gas
As efforts to decarbonise our economy and energy systems pick up, we are seeing an increased reliance on decarbonized fuels, gas in particular – often times referred to as “renewable” and “low-carbon” gases. While low carbon intensity gases and fuels can contribute on the path to net-zero by 2050 – the terminology is confusing, with no common definition to determine when in fact a gas or fuel is renewable or low-carbon.
Feedback Response – Competition Policy supporting the Green Deal
The goal of EU competition rules is to promote and protect effective competition in markets, delivering efficient outcomes to the benefit of consumers. Bellona Europa has responded to the call for contributions to gather ideas on how EU competition policy can best support the Green Deal. As Executive Vice President Vestager has underlined: “To succeed, everyone in Europe will have to play their part – every individual, every public authority. And that includes competition enforcers.”. Our overarching point is that it is necessary to amend the state aid rulebook and the interpretation of legislation to safeguard the climate impact credibility of the funds under state aid.
Consultation Response – Carbon Border Adjustment Mechanism
The Carbon Border Adjustment Mechanism (CBAM) as part of the EU Green Deal policy portfolio. This new mechanism is aiming at counteract this risk of limited ambitions by international partners by putting a carbon price on imports of certain goods from outside the EU. As an environmental policy tool, with a trade and competitiveness dimension, the CBAM will enable the EU to take fuller responsibility for the carbon footprint of its imports.
Consultation Response – Sustainable Taxonomy – April 2020
On the 27th April, Bellona Europa submitted the Consultation Response on the Commission Delegated Regulation on a climate change mitigation and adaptation taxonomy.
Consultation Response 01/04 – Carbon Border Adjustment Mechanism
Bellona Europa commends the European Commission’s ongoing efforts to ensure that climate neutrality is met by 2050 and efforts to price Greenhouse Gas (GHG) emissions.
Understanding our Future
Climate change is happening. Human activity has caused and continues to contribute to towards it; the current and projected severity of its impacts ha...
BellonaBrief: Brexit Implications on Climate, Energy and Environment
On 24 June 2016 the United Kingdom voted 52% to 48% in a referendum to leave the European Union. Many resources are now likely to be diverted from running the EU and progressing important policies toward instead managing and negotiating the referendum implications. While many uncertainties and questions remain to be addressed, one thing remains certain: Bellona has championed environmental and climate protection in Europe from outside EU membership for over 20 years and will continue to do so. While domestic implications for the UK remain unclear, NGOs’ voices in Europe will continue to be heard.
Bellona Europa response to the consultation on a sustainable bioenergy policy for the period after 2020
On the back of the EU’s need and stated goal of improving its bioenergy policy and sustainability, Bellona has submitted a response to the European Commission’s consultation on the matter.
Bellona Response to the Consultation on Revision of the EU Emission Trading System Directive
In October 2014 the European Council reached an agreement on a 2030 Climate and Energy Framework, featuring a binding domestic target for reducing greenhouse gas emissions of at least 40% in 2030 as compared to 1990. To meet this target, the European Council agreed that the emissions in the EU Emission Trading System (ETS) should be reduced, compared to 2005, by 43%. The purpose of this EC-conducted consultation was to gather stakeholders' views on key elements, including free allocation to industry, the establishment of a modernisation and an innovation fund, and optional free allocation of allowances to modernise electricity generation in some Member States. Here are Bellona's recommendations, with a particular focus on the modalities governing the envisaged innovation fund.
Comprehensive ETS Reform
During the first two trading periods of the European Union Emission Trading Scheme (EU ETS) we have observed a low and volatile Emission Unit Allowance (EUA) price, which has failed to incentivise sufficient abatement efforts and investments in clean technologies. Bellona's views on the European Commission-proposed Market Stability Reserve and on the way forward are outlined in the brief on 'Comprehensive ETS Reform'.
News related to focus areaAll news
Bellona’s agenda for COP28
Bellona’s events Sunday, 3 December 12:00 – 12:45: Bursting Barriers for Solution Stories: How Industry is Growing Support for Clim...
Press Release: Bellona’s presence at COP28 – Storytelling for Action Pavilion
We’re excited to share that we will be present at COP28! The Bellona Foundation will be hosting the Storytelling for Action Pavilion in the Blue Zone alongside BAFTA albert, Futerra and Think-Film Impact Production.
Spanish Presidency of the Council of the EU: What this means for climate action
The Spanish Presidency says it is committed to push for a reindustrialisation of Europe in the name of ‘ecological transition’. Many policy files related to energy and climate are regarded a priority, but the snap general elections in Spain mid-July and the campaign for the 2024 EU elections will likely affect the Presidency.
Lead Markets 101
The fundamental step of creating green lead markets is to generate a comprehensive CO2-footprint of a good or service in order to identify what is ‘green’ and which products should be pulled to the market. To ensure alignment with carbon neutrality goals, such a system needs to account for the whole lifecycle carbon of a product and include both the ‘operational carbon’, so the CO2 emitted during the use of a product, and the ‘embodied carbon’. The latter refers to the CO2 from input materials and processes going into a product, as well as the emissions resulting from products’ refurbishment and end-of-life treatment.
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