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11. Financing Loss and Damage at Scale: Toward a Mosaic Approach

Author:
Michael Franczak
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
The historic decision on loss and damage (L&D) at the 2022 UN Climate Change Conference (COP27) calls for a new fund and funding arrangements focused on addressing L&D. It also tasks a Transitional Committee to prepare recommendations on the new fund and funding arrangements for adoption at the 2023 UN Climate Change Conference (COP28) in Dubai. This decision reflects a recognition that existing funding arrangements are grossly inadequate to address the escalating scale of L&D. Addressing L&D will require both enhancing these existing arrangements and creating a new fund and funding arrangements, forming a mosaic of solutions across countries, institutions, and markets. This paper aims to aid the Transitional Committee and other stakeholders by providing an initial sketch of that mosaic. First, it examines existing arrangements, modalities, and sources of funding for addressing L&D from UN humanitarian agencies, multilateral development banks and international financial institutions, and insurance and bond markets. Second, it proposes reforms to existing arrangements that would address key finance gaps and bottlenecks. Third, it identifies elements of a new L&D fund that would complement existing arrangements and make use of innovative finance (including levies and bond issuances) to operate at scale. With roughly six months left until COP28, the Transitional Committee will need to work efficiently to achieve its mandate, which includes determining the fund’s institutional arrangements, modalities, structure, governance, sources of funding, and coordination and complementarity with existing funding arrangements. To this end, the paper recommends that it should: Begin securing financing before COP28, particularly innovative financing, which takes longer to secure than traditional donor contributions; Consult with the private sector to determine its role, including in the use of insurance mechanisms and risk pools, frontloading, and connections between L&D and jobs; Determine the form and role of triggers, including for slow-onset events; Consider how to address noneconomic losses, including displacement and forced migration; and Identify the actions, mechanisms, and institutions required to operationalize the fund, including an internal or external coordination mechanism.
Topic:
Climate Change, Development, United Nations, and Finance
Political Geography:
Global Focus

12. Enhancing Resilience in a Chaotic World: The Role of Infrastructure

Author:
Carlo Secchi and Alessandro Gili
Publication Date:
06-2023
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Global infrastructure is at a crossroads. Sustainability and climate-resilience imperatives, new geopolitical headwinds, technology and connectivity issues, as well as the ongoing reconfiguration of global value chains, all call for a rethink in how infrastructure is designed, built and maintained. Leading world economic powers are envisaging new infrastructure plans that could fit in new trade and industrial strategies, with the ultimate goal to increase sustainability, economic competitiveness and resilience. Meanwhile, the use of digital technologies entails new risks for the security of critical infrastructure. How are global value chains changing, and how does this affect infrastructure? How could more resilient infrastructure transform economies? How to enhance the quality and sustainability of new and existing infrastructure? And how to safeguard security in critical infrastructure?
Topic:
Climate Change, Infrastructure, Economy, Sustainability, and Resilience
Political Geography:
Global Focus

13. Section 232 reloaded: the false promise of the transatlantic ‘climate club’ for steel and aluminium

Author:
David Kleimann
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In using the removal of Section 232 ‘national security’ tariffs on steel and aluminium imports as a bargaining chip, the United States demands that the European Union engage in negotiations on “global steel and aluminium arrangements to restore market-oriented conditions and address carbon intensity”. The US demand has reportedly been inspired by a blueprint that would establish an international institutional arrangement – labelled a ‘climate club’ – which would externalise market-access restrictions afforded by US Section 232 tariffs to the customs borders of club members. While the declared objective is to incentivise non-members to adopt low-carbon steel (and aluminium) production methods the US blueprint suffers from various design flaws including inefficient incentives, WTO inconsistency and incompatibility with the EU Carbon Border Adjustment Mechanism. The effectiveness of the proposed US scheme is severely compromised by the plethora of policy objectives it pursues, which go far beyond the goal of incentivising industrial decarbonisation in third countries, including secondary (ie protectionism) and tertiary (ie global power competition with China) objectives. The initial negotiation proposal submitted by the United States Trade Representative (USTR) to European Commission trade negotiators incorporates many if not all the problematic elements of this blueprint, setting the US on a collision course with the negotiation proposal put forward by the European Commission. This paper concludes that the adoption of the scheme proposed by USTR would result in a step backwards for international climate and trade cooperation, whereas not adopting the EU proposal would make for a missed opportunity. Given the sharply diverging negotiation positions and associated respective domestic constraints on both sides, however, policymakers should start to engage stakeholders now to manage expectations towards a low-ambition negotiation result, if any.
Topic:
Security, Climate Change, Industrial Policy, Governance, European Union, Economy, Trade Policy, and Transatlantic Relations
Political Geography:
Global Focus

14. Climate versus trade? Reconciling international subsidy rules with industrial decarbonisation

Author:
David Kleimann
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The vast environmental subsidies that may be required for the transition to net-zero greenhouse gas emissions are starting to generate international trade and political frictions between the world’s largest economies. This puts (supra-)national industrial decarbonisation efforts on a collision course with international subsidies rules and national countervailing duty (ie anti-foreign subsidy) laws and regulations. International cooperation will be essential to defuse such tensions before they escalate and impede effective climate policy rollouts, and before they lead to economic countermeasures that create new barriers to trade in environmental goods. This requires agreement on permissible environmental subsidy practices that minimise distortions. Meanwhile, it will be crucial to provide financial transfers to assist poorer economies with industrial decarbonisation at the same time as those poorer economies are suffering from the cross-border negative economic impacts of otherwise net-global-welfare enhancing environmental subsidies paid out by wealthy countries. Various forums can host the technical and political negotiations necessary to set the parameters of net global-welfare enhancing subsidies. These include the G7, the G20, the Organisation for Economic Co-operation and Development, the World Trade Organisation’s Trade and Environment Committee and WTO Trade and Environmental Sustainability Structured Discussions, and the Coalition of Trade Ministers on Climate.
Topic:
Climate Change, Political Economy, Trade, Carbon Emissions, Subsidies, and Decarbonization
Political Geography:
Global Focus

15. Defining the Path to Zero Hunger in an Equitable World

Author:
Catherine Bertini, Peggy Tsai Yih, Roger Thurow, and Gloria Dabek
Publication Date:
03-2023
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
During the 2022 World Food Prize Borlaug Dialogues, the Chicago Council on Global Affairs and The Rockefeller Foundation gathered experts and stakeholders from climate, agriculture, food security, and humanitarian backgrounds to discuss a bold vision for a 21st Century of zero hunger in a healthier and more equitable world. The white paper, “Defining the Path to Zero Hunger in an Equitable World,” reflects a summary of their views and offers a framework to reimagine a hunger-free world. The quickened pace of extreme weather events, disruptions to agricultural markets from the war in Ukraine and other conflicts, and a fragile post-pandemic international economy rattled the global food chain. A culmination of these realities is complicating the dual imperative to both nourish the planet and preserve it from environmental threats. According to the 2022 IPCC report, without immediate changes, extreme weather will likely render large areas of crop and livestock land unsuitable by 2050, potentially pushing millions of people into food insecurity. The newly outlined white paper tackles some of the greatest obstacles facing the nexus of food security, climate, and humanitarian spaces, and ultimately voices hope for a better food future. It amplifies this message by providing an analysis of three major obstacles—silos, myopic priorities, and top-down decision-making—in conjunction with catalyzing ideas that address these challenges.
Topic:
Agriculture, Climate Change, Humanitarian Aid, Food, Food Security, Hunger, Equity, and Russia-Ukraine War
Political Geography:
Global Focus

16. Bridging the Gap: A "Sustainable Food Seal"

Author:
Paul E. III Schickler, Francesca Debiase, Sally Rockey, Jennifer Goldston, Peggy Tsai Yih, and Natalie Burdsall
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Chicago Council on Global Affairs
Abstract:
Climate change is wrecking havoc on the global food supply chain, drawing attention to the benefits of sustainable practices for preserving the food system. As a result, consumers are starting to shift their purchasing behaviors, opting for more sustainable food options that might have a smaller carbon footprint or use fewer resources. To help inform their purchasing decisions, consumers are demanding more information on how and where their food is produced, but they are largely unable to find a labeling system with clear and comprehensive standards; existing "green" and "eco" labels are often private certification schemes that focus on only one aspect of sustainability. A "sustainable food seal" is a potential solution. A label that would standardize a food product’s eco-score to reduce consumer confusion, sustainable food seals take an inclusive approach to food labeling that use comparable metrics that involve all parts of the food value chain—from farm to fork—and offer the opportunity to validate practices and empower stakeholders to support a more sustainable food supply chain. Based on a November 2022 roundtable, the first in a series of regular convenings, the white paper “Bridging the Gap: A ‘Sustainable Food Seal’ Needed to Improve Transparency between Farmers and Consumers about Sustainable Food Production” explores current food labeling practices, identifies challenges to label standardization and voluntary adoption, and proposes potential actions and strategies to provide insight into the role a “sustainable food seal” can play in enhancing sustainability through food.
Topic:
Agriculture, Climate Change, Environment, Food, Food Security, Sustainability, Farming, and Supply Chains
Political Geography:
Global Focus

17. Encouraging Farmer Adoption of Regenerative Agriculture Practices in the United States

Author:
Kelly Wilson, Stephanie Mercier, and Rob Myers
Publication Date:
08-2023
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
Regenerative agriculture can help our food and agricultural systems become more resilient. Farmers and ranchers are facing escalating challenges from climate change as they confront the consistent need to maintain high levels of productivity. Modern farming practices have enabled farmers to increase per acre production substantially over the last several decades, but these practices can also contribute to the depletion of the quantity and quality of natural resources (such as soil and water). There is a potential solution: regenerative agriculture. Regenerative agriculture is an emerging approach to farming that aims to increase farm resiliency by improving soil health, restoring natural resources, and increasing biodiversity through integrated farming practices. It can play a key role in helping farmers develop more resilient production systems and mitigate the challenges they face, all while contributing to the goals of companies supporting these practices, including goals of achieving carbon neutrality and sustainable supply chains. Regenerative agriculture does, however, face barriers that impede its adoption, namely financial concerns, access to necessary materials, equipment, and infrastructure, knowledge and education, time, and land tenure. Through public and private programs aimed at supporting farmers' adoption of regenerative agricultural practices, it is possible to reduce barriers to implementation and build farmer capacities, ultimately championing a regenerative future for agriculture.
Topic:
Agriculture, Climate Change, Environment, Food, Sustainability, Resilience, and Farming
Political Geography:
North America, Global Focus, and United States of America

18. Global Terrorism Index 2023

Author:
Institute for Economics and Peace (IEP)
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Institute for Economics & Peace (IEP)
Abstract:
The GTI report is produced by the Institute for Economics & Peace (IEP) using data from TerrorismTracker and other sources. TerrorismTracker provides event records on terrorist attacks since 1 January 2007. The dataset contains almost 66,000 terrorist incidents for the period 2007 to 2022. In 2022, deaths from terrorism fell by nine per cent to 6,701 deaths and is now 38 per cent lower than at its peak in 2015. The fall in deaths was mirrored by a reduction in the number of incidents, with attacks declining by almost 28 per cent from 5,463 in 2021 to 3,955 in 2022. However, if Afghanistan was removed from the index, terrorism deaths would have increased by four per cent. Afghanistan remained the country most impacted by terrorism for the fourth consecutive year, despite attacks and deaths falling by 75 per cent and 58 per cent respectively. The GTI does not include acts of state repression and violence by state actors and, as such, acts committed by the Taliban are no longer included in the scope of the report since they took control of the government.
Topic:
Climate Change, Economics, Science and Technology, Terrorism, Finance, and Peace
Political Geography:
Middle East, North Africa, and Global Focus

19. It’s not a Sprint, it’s a Marathon: Reviewing Governmental R&D Support for Environmental Innovation

Author:
Leonie Meißner, Sonja Peterson, and Finn Ole Semrau
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In a race against excessive global warming, the world must accelerate the development and adoption of environmental innovations (EIs). EIs are crucial in decarbonizing the economy and meeting the net-zero targets. In this literature review, we delve into the role of governments in promoting EIs across stages of maturity and the likeliness of such support to reduce emissions and mitigation costs. Various theoretical justifications, such as knowledge externalities, dynamic increasing returns, path dependency and incomplete information, highlight the necessity to promote EI through governmental Research and Development (R&D) support. While emission pricing remains the most cost-efficient climate policy, it fails as a stand-alone instrument to sufficiently encourage EI. Accordingly, the optimal approach is a policy mix complementing emission pricing with governmental R&D support. The theoretical finding is backed by empirical studies on the development and deployment of renewable energies, which also show that investment in R&D can effectively reduce emissions and mitigation costs. By combining theoretical and empirical research, the review concludes by examining two pivotal policy actions aimed at accelerating the take-off of EIs: The US Inflation Reduction Act and the European Green New Deal Industrial Plan. We evaluate their specific aspects and limitations to effectively and efficiently contribute to decarbonization.
Topic:
Climate Change, Environment, Innovation, and Research and Development
Political Geography:
Global Focus

20. Climate change and security: Preparing for different impacts

Author:
Emma Hakala
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
As the disastrous impacts of climate change are already visible, the need to respond to them becomes increasingly urgent. Yet there is still a lack of understanding about the comprehensive security impacts of climate change. Climate security impacts tend to be complex as they often take shape through chains of compounded effects. This makes them difficult to fully comprehend, and in the absence of adequate situational awareness, policy responses are likely to fall short. The paper aims to contribute to a better understanding of climate security by providing concrete illustrations of potential direct, cascading and transition impacts. Impacts like forest fires, a heatwave in Europe and increased wind energy production all challenge Finland’s security in various ways, such as threatening human health and livelihoods, fuelling political polarisation and creating new supply chain risks. Strategic foresight, international cooperation and well-planned climate policy can help to counteract climate risks.
Topic:
Security, Defense Policy, Climate Change, and Governance
Political Geography:
Global Focus