@article{PickeringSkovgaardKimetal.2015, author = {Pickering, Jonathan and Skovgaard, Jakob and Kim, Soyeun and Roberts, J. Timmons and Rossati, David and Stadelmann, Martin and Reich, Hendrikje}, title = {Acting on Climate Finance Pledges: Inter-Agency Dynamics and Relationships with Aid in Contributor States}, series = {World development}, volume = {68}, journal = {World development}, publisher = {Elsevier}, address = {Oxford}, issn = {0305-750X}, doi = {10.1016/j.worlddev.2014.10.033}, pages = {149 -- 162}, year = {2015}, abstract = {Developed countries have relied heavily on aid budgets to fulfill their pledges to boost funding for addressing climate change in developing countries. However, little is known about how interaction between aid and other ministries has shaped contributors' diverse approaches to climate finance. This paper investigates intra-governmental dynamics in decision-making on climate finance in seven contributor countries (Australia, Denmark, Germany, Japan, Switzerland, the UK, and the US). While aid agencies retained considerable control over implementation, environment and finance ministries have played an influential and often contrasting role on key policy issues, including distribution between mitigation and adaptation and among geographical regions. (C) 2014 Elsevier Ltd. All rights reserved.}, language = {en} } @phdthesis{Mielke2018, author = {Mielke, Jahel}, title = {Coordination on Green Investment}, doi = {10.25932/publishup-42745}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427459}, school = {Universit{\"a}t Potsdam}, pages = {viii, 209}, year = {2018}, abstract = {To reach its climate targets, the European Union has to implement a major sustainability transition in the coming decades. While the socio-technical change required for this transition is well discussed in the academic literature, the economics that go along with it are often reduced to a cost-benefit perspective of climate policy measures. By investigating climate change mitigation as a coordination problem, this thesis offers a novel perspective: It integrates the economic and the socio-technical dimension and thus allows to better understand the opportunities of a sustainability transition in Europe. First, a game theoretic framework is developed to illustrate coordination on green or brown investment from an agent perspective. A model based on the coordination game "stag hunt" is used to discuss the influence of narratives and signals for green investment as a means to coordinate expectations towards green growth. Public and private green investment impulses - triggered by credible climate policy measures and targets - serve as an example for a green growth perspective for Europe in line with a sustainability transition. This perspective also embodies a critical view on classical analyses of climate policy measures. Secondly, this analysis is enriched with empirical results derived from stakeholder involvement. In interviews and with a survey among European insurance companies, coordination mechanisms such as market and policy signals are identified and evaluated by their impact on investment strategies for green infrastructure. The latter, here defined as renewable energy, electricity distribution and transmission as well as energy efficiency improvements, is considered a central element of the transition to a low-carbon society. Thirdly, this thesis identifies and analyzes major criticisms raised towards stakeholder involvement in sustainability science. On a conceptual level, different ways of conducting such qualitative research are classified. This conceptualization is then evaluated by scientists, thereby generating empirical evidence on ideals and practices of stakeholder involvement in sustainability science. Through the combination of theoretical and empirical research on coordination problems, this thesis offers several contributions: On the one hand, it outlines an approach that allows to assess the economic opportunities of sustainability transitions. This is helpful for policy makers in Europe that are striving to implement climate policy measures addressing the targets of the Paris Agreement as well as to encourage a shift of investments towards green infrastructure. On the other hand, this thesis enhances the stabilization of the theoretical foundations in sustainability science. Therefore, it can aid researchers who involve stakeholders when studying sustainability transitions.}, language = {en} } @misc{ThonigDelRioKieferetal.2020, author = {Thonig, Richard and Del Rio, Pablo and Kiefer, Christoph and Lazaro Touza, Lara and Escribano, Gonzalo and Lechon, Yolanda and Spaeth, Leonhard and Wolf, Ingo and Lilliestam, Johan}, title = {Does ideology influence the ambition level of climate and renewable energy policy?}, series = {Zweitver{\"o}ffentlichungen der Universit{\"a}t Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe}, journal = {Zweitver{\"o}ffentlichungen der Universit{\"a}t Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe}, number = {1}, issn = {1867-5808}, doi = {10.25932/publishup-57798}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-577981}, pages = {19}, year = {2020}, abstract = {We investigate whether political ideology has an observable effect on decarbonization ambition, renewable power aims, and preferences for power system balancing technologies in four European countries. Based on the Energy Logics framework, we identify ideologically different transition strategies (state-centered, market-centered, grassroots-centered) contained in government policies and opposition party programs valid in 2019. We compare these policies and programs with citizen poll data. We find that ideology has a small effect: governments and political parties across the spectrum have similar, and relatively ambitious, decarbonization and renewables targets. This mirrors citizens' strong support for ambitious action regardless of their ideological self-description. However, whereas political positions on phasing out fossil fuel power are clear across the policy space, positions on phasing in new flexibility options to balance intermittent renewables are vague or non-existent. As parties and citizens agree on strong climate and renewable power aims, the policy ambition is likely to remain high, even if governments change.}, language = {en} } @article{ThonigDelRioKieferetal.2020, author = {Thonig, Richard and Del Rio, Pablo and Kiefer, Christoph and Lazaro Touza, Lara and Escribano, Gonzalo and Lechon, Yolanda and Spaeth, Leonhard and Wolf, Ingo and Lilliestam, Johan}, title = {Does ideology influence the ambition level of climate and renewable energy policy?}, series = {Energy sources, part B: economics, planning, and policy}, volume = {16}, journal = {Energy sources, part B: economics, planning, and policy}, number = {1}, publisher = {Taylor \& Francis Group}, address = {Philadelphia}, issn = {1556-7249}, doi = {10.1080/15567249.2020.1811806}, pages = {4 -- 22}, year = {2020}, abstract = {We investigate whether political ideology has an observable effect on decarbonization ambition, renewable power aims, and preferences for power system balancing technologies in four European countries. Based on the Energy Logics framework, we identify ideologically different transition strategies (state-centered, market-centered, grassroots-centered) contained in government policies and opposition party programs valid in 2019. We compare these policies and programs with citizen poll data. We find that ideology has a small effect: governments and political parties across the spectrum have similar, and relatively ambitious, decarbonization and renewables targets. This mirrors citizens' strong support for ambitious action regardless of their ideological self-description. However, whereas political positions on phasing out fossil fuel power are clear across the policy space, positions on phasing in new flexibility options to balance intermittent renewables are vague or non-existent. As parties and citizens agree on strong climate and renewable power aims, the policy ambition is likely to remain high, even if governments change.}, language = {en} } @article{BersalliTroendleHeckmannetal.2024, author = {Bersalli, Germ{\´a}n and Tr{\"o}ndle, Tim and Heckmann, Leon and Lilliestam, Johan}, title = {Economic crises as critical junctures for policy and structural changes towards decarbonization}, series = {Climate policy}, volume = {24}, journal = {Climate policy}, number = {3}, publisher = {Taylor \& Francis}, address = {London}, issn = {1469-3062}, doi = {10.1080/14693062.2024.2301750}, pages = {410 -- 427}, year = {2024}, abstract = {Crises may act as tipping points for decarbonization pathways by triggering structural economic change or offering windows of opportunity for policy change. We investigate both types of effects of the global financial and COVID-19 crises on decarbonization in Spain and Germany through a quantitative Kaya-decomposition analysis of CO2 emissions and through a qualitative review of climate and energy policy changes. We show that the global financial crisis resulted in a critical juncture for Spanish CO2 emissions due to the combined effects of the deep economic recession and crisis-induced structural change, resulting in reductions in carbon and energy intensities and shifts in the economic structure. However, the crisis also resulted in a rollback of renewable energy policy, halting progress in the transition to green electricity. The impacts were less pronounced in Germany, where pre-existing decarbonization and policy trends continued after the crisis. Recovery packages had modest effects, primarily due to their temporary nature and the limited share of climate-related spending. The direct short-term impacts of the COVID-19 crisis on CO2 emissions were more substantial in Spain than in Germany. The policy responses in both countries sought to align short-term economic recovery with the long-term climate change goals of decarbonization, but it is too soon to observe their lasting effects. Our findings show that crises can affect structural change and support decarbonization but suggest that such effects depend on pre-existing trends, the severity of the crisis and political manoeuvring during the crisis.}, language = {en} } @article{BertramRiahiHilaireetal.2021, author = {Bertram, Christoph and Riahi, Keywan and Hilaire, J{\´e}r{\^o}me and Bosetti, Valentina and Drouet, Laurent and Fricko, Oliver and Malik, Aman and Nogueira, Larissa Pupo and van der Zwaan, Bob and van Ruijven, Bas and van Vuuren, Detlef P. and Weitzel, Matthias and Longa, Francesco Dalla and de Boer, Harmen-Sytze and Emmerling, Johannes and Fosse, Florian and Fragkiadakis, Kostas and Harmsen, Mathijs and Keramidas, Kimon and Kishimoto, Paul Natsuo and Kriegler, Elmar and Krey, Volker and Paroussos, Leonidas and Saygin, Deger and Vrontisi, Zoi and Luderer, Gunnar}, title = {Energy system developments and investments in the decisive decade for the Paris Agreement goals}, series = {Environmental research letters}, volume = {16}, journal = {Environmental research letters}, number = {7}, publisher = {IOP Publishing}, address = {Bristol}, issn = {1748-9326}, doi = {10.1088/1748-9326/ac09ae}, pages = {12}, year = {2021}, abstract = {The Paris Agreement does not only stipulate to limit the global average temperature increase to well below 2 °C, it also calls for 'making finance flows consistent with a pathway towards low greenhouse gas emissions'. Consequently, there is an urgent need to understand the implications of climate targets for energy systems and quantify the associated investment requirements in the coming decade. A meaningful analysis must however consider the near-term mitigation requirements to avoid the overshoot of a temperature goal. It must also include the recently observed fast technological progress in key mitigation options. Here, we use a new and unique scenario ensemble that limit peak warming by construction and that stems from seven up-to-date integrated assessment models. This allows us to study the near-term implications of different limits to peak temperature increase under a consistent and up-to-date set of assumptions. We find that ambitious immediate action allows for limiting median warming outcomes to well below 2 °C in all models. By contrast, current nationally determined contributions for 2030 would add around 0.2 °C of peak warming, leading to an unavoidable transgression of 1.5 °C in all models, and 2 °C in some. In contrast to the incremental changes as foreseen by current plans, ambitious peak warming targets require decisive emission cuts until 2030, with the most substantial contribution to decarbonization coming from the power sector. Therefore, investments into low-carbon power generation need to increase beyond current levels to meet the Paris goals, especially for solar and wind technologies and related system enhancements for electricity transmission, distribution and storage. Estimates on absolute investment levels, up-scaling of other low-carbon power generation technologies and investment shares in less ambitious scenarios vary considerably across models. In scenarios limiting peak warming to below 2 °C, while coal is phased out quickly, oil and gas are still being used significantly until 2030, albeit at lower than current levels. This requires continued investments into existing oil and gas infrastructure, but investments into new fields in such scenarios might not be needed. The results show that credible and effective policy action is essential for ensuring efficient allocation of investments aligned with medium-term climate targets.}, language = {en} } @phdthesis{Schuetze2020, author = {Sch{\"u}tze, Franziska}, title = {Finance for a sustainable economy}, doi = {10.25932/publishup-48441}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-484415}, school = {Universit{\"a}t Potsdam}, pages = {xi, 128}, year = {2020}, abstract = {With his September 2015 speech "Breaking the tragedy of the horizon", the President of the Central Bank of England, Mark Carney, put climate change on the agenda of financial market regulators. Until then, climate change had been framed mainly as a problem of negative externalities leading to long-term economic costs, which resulted in countries trying to keep the short-term costs of climate action to a minimum. Carney argued that climate change, as well as climate policy, can also lead to short-term financial risks, potentially causing strong adjustments in asset prices. Analysing the effect of a sustainability transition on the financial sector challenges traditional economic and financial analysis and requires a much deeper understanding of the interrelations between climate policy and financial markets. This dissertation thus investigates the implications of climate policy for financial markets as well as the role of financial markets in a transition to a sustainable economy. The approach combines insights from macroeconomic and financial risk analysis. Following an introduction and classification in Chapter 1, Chapter 2 shows a macroeconomic analysis that combines ambitious climate targets (negative externality) with technological innovation (positive externality), adaptive expectations and an investment program, resulting in overall positive macroeconomic outcomes. The analysis also reveals the limitations of climate economic models in their representation of financial markets. Therefore, the subsequent part of this dissertation is concerned with the link between climate policies and financial markets. In Chapter 3, an empirical analysis of stock-market responses to the announcement of climate policy targets is performed to investigate impacts of climate policy on financial markets. Results show that 1) international climate negotiations have an effect on asset prices and 2) investors increasingly recognize transition risks in carbon-intensive investments. In Chapter 4, an analysis of equity markets and the interbank market shows that transition risks can potentially affect a large part of the equity market and that financial interconnections can amplify negative shocks. In Chapter 5, an analysis of mortgage loans shows how information on climate policy and the energy performance of buildings can be integrated into risk management and reflected in interest rates. While costs of climate action have been explored at great depth, this dissertation offers two main contributions. First, it highlights the importance of a green investment program to strengthen the macroeconomic benefits of climate action. Second, it shows different approaches on how to integrate transition risks and opportunities into financial market analysis. Anticipating potential losses and gains in the value of financial assets as early as possible can make the financial system more resilient to transition risks and can stimulate investments into the decarbonization of the economy.}, language = {en} } @article{OllierMelligerLilliestam2020, author = {Ollier, Lana and Melliger, Marc Andr{\´e} and Lilliestam, Johan}, title = {Friends or foes?}, series = {Energies : open-access journal of related scientific research, technology development and studies in policy and management}, volume = {13}, journal = {Energies : open-access journal of related scientific research, technology development and studies in policy and management}, number = {23}, publisher = {MDPI}, address = {Basel}, issn = {1996-1073}, doi = {10.3390/en13236339}, pages = {23}, year = {2020}, abstract = {Energy efficiency measures and the deployment of renewable energy are commonly presented as two sides of the same coin-as necessary and synergistic measures to decarbonize energy systems and reach the temperature goals of the Paris Agreement. Here, we quantitatively investigate the policies and performances of the EU Member States to see whether renewables and energy efficiency policies are politically synergistic or if they rather compete for political attention and resources. We find that Member States, especially the ones perceived as climate leaders, tend to prioritize renewables over energy efficiency in target setting. Further, almost every country performs well in either renewable energy or energy efficiency, but rarely performs well in both. We find no support for the assertion that the policies are synergistic, but some evidence that they compete. However, multi-linear regression models for performance show that performance, especially in energy efficiency, is also strongly associated with general economic growth cycles, and not only efficiency policy as such. We conclude that renewable energy and energy efficiency are not synergistic policies, and that there is some competition between them.}, language = {en} } @phdthesis{CamposdeAndrade2023, author = {Campos de Andrade, Andr{\´e} Luiz}, title = {Governing climate change in Brazil}, doi = {10.25932/publishup-58733}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-587336}, school = {Universit{\"a}t Potsdam}, pages = {xxvii, 272}, year = {2023}, abstract = {Enacted in 2009, the National Policy on Climate Change (PNMC) is a milestone in the institutionalisation of climate action in Brazil. It sets greenhouse gas (GHG) emission reduction targets and a set of principles and directives that are intended to lay the foundations for a cross-sectoral and multilevel climate policy in the country. However, after more than a decade since its establishment, the PNMC has experienced several obstacles related to its governance, such as coordination, planning and implementation issues. All of these issues pose threats to the effectiveness of GHG mitigation actions in the country. By looking at the intragovernmental and intergovernmental relationships that have taken place during the lifetime of the PNMC and its sectoral plans on agriculture (the Sectoral Plan for Mitigation and Adaptation to Climate Change for the Consolidation of a Low-Carbon Economy in Agriculture [ABC Plan]), transport and urban mobility (the Sectoral Plan for Transportation and Urban Mobility for Mitigation and Adaption of Climate Change [PSTM]), this exploratory qualitative research investigates the Brazilian climate change governance guided by the following relevant questions: how are climate policy arrangements organised and coordinated among governmental actors to mitigate GHG emissions in Brazil? What might be the reasons behind how such arrangements are established? What are the predominant governance gaps of the different GHG mitigation actions examined? Why do these governance gaps occur? Theoretically grounded in the literature on multilevel governance and coordination of public policies, this study employs a novel analytical framework that aims to identify and discuss the occurrence of four types of governance gaps (i.e. politics, institutions and processes, resources and information) in the three GHG mitigation actions (cases) examined (i.e. the PNMC, ABC Plan and PSTM). The research results are twofold. First, they reveal that Brazil has struggled to organise and coordinate governmental actors from different policy constituencies and different levels of government in the implementation of the GHG mitigation actions examined. Moreover, climate policymaking has mostly been influenced by the Ministry of Environment (MMA) overlooking the multilevel and cross-sectoral approaches required for a country's climate policy to mitigate and adapt to climate change, especially if it is considered an economy-wide Nationally Determined Contribution (NDC), as the Brazilian one is. Second, the study identifies a greater manifestation of gaps in politics (e.g. lack of political will in supporting climate action), institutions and processes (e.g. failures in the design of institutions and policy instruments, coordination and monitoring flaws, and difficulties in building climate federalism) in all cases studied. It also identifies that there have been important advances in the production of data and information for decision-making and, to a lesser extent, in the allocation of technical and financial resources in the cases studied; however, it is necessary to highlight the limitation of these improvements due to turf wars, a low willingness to share information among federal government players, a reduced volume of financial resources and an unequal distribution of capacities among the federal ministries and among the three levels of government. A relevant finding is that these gaps tend to be explained by a combination of general and sectoral set aspects. Regarding the general aspects, which are common to all cases examined, the following can be mentioned: i) unbalanced policy capabilities existing among the different levels of government, ii) a limited (bureaucratic) practice to produce a positive coordination mode within cross-sectoral policies, iii) the socioeconomic inequalities that affect the way different governments and economic sectors perceive the climate issue (selective perception) and iv) the reduced dialogue between national and subnational governments on the climate agenda (poor climate federalism). The following sectoral aspects can be mentioned: i) the presence of path dependencies that make the adoption of transformative actions harder and ii) the absence of perceived co-benefits that the climate agenda can bring to each economic sector (e.g. reputational gains, climate protection and access to climate financial markets). By addressing the theoretical and practical implications of the results, this research provides key insights to tackle the governance gaps identified and to help Brazil pave the way to achieving its NDCs and net-zero targets. At the theoretical level, this research and the current country's GHG emissions profile suggest that the Brazilian climate policy is embedded in a cross-sectoral and multilevel arena, which requires the effective involvement of different levels of political and bureaucratic powers and the consideration of the country's socioeconomic differences. Thus, the research argues that future improvements of the Brazilian climate policy and its governance setting must frame climate policy as an economic development agenda, the ramifications of which go beyond the environmental sector. An initial consequence of this new perspective may be a shift in the political and technical leadership from the MMA to the institutions of the centre of government (Executive Office of the President of Brazil) and those in charge of the country's economic policy (Ministry of Economy). This change could provide greater capacity for coordination, integration and enforcement as well as for addressing certain expected gaps (e.g. financial and technical resources). It could also lead to greater political prioritisation of the agenda at the highest levels of government. Moreover, this shift of the institutional locus could contribute to greater harmonisation between domestic development priorities and international climate politics. Finally, the research also suggests that this approach would reduce bureaucratic elitism currently in place due to climate policy being managed by Brazilian governmental institutions, which is still a theme of a few ministries and a reason for the occurrence of turf wars.}, language = {en} } @article{HarmsenKrieglervanVuurenetal.2021, author = {Harmsen, Mathijs and Kriegler, Elmar and van Vuuren, Detlef P. and van der Wijst, Kaj-Ivar and Luderer, Gunnar and Cui, Ryna and Dessens, Olivier and Drouet, Laurent and Emmerling, Johannes and Morris, Jennifer Faye and Fosse, Florian and Fragkiadakis, Dimitris and Fragkiadakis, Kostas and Fragkos, Panagiotis and Fricko, Oliver and Fujimori, Shinichiro and Gernaat, David and Guivarch, C{\´e}line and Iyer, Gokul and Karkatsoulis, Panagiotis and Keppo, Ilkka and Keramidas, Kimon and K{\"o}berle, Alexandre and Kolp, Peter and Krey, Volker and Kr{\"u}ger, Christoph and Leblanc, Florian and Mittal, Shivika and Paltsev, Sergey and Rochedo, Pedro and van Ruijven, Bas J. and Sands, Ronald D. and Sano, Fuminori and Strefler, Jessica and Arroyo, Eveline Vasquez and Wada, Kenichi and Zakeri, Behnam}, title = {Integrated assessment model diagnostics}, series = {Environmental research letters}, volume = {16}, journal = {Environmental research letters}, number = {5}, publisher = {IOP Publishing}, address = {Bristol}, issn = {1748-9326}, doi = {10.1088/1748-9326/abf964}, pages = {13}, year = {2021}, abstract = {Integrated assessment models (IAMs) form a prime tool in informing about climate mitigation strategies. Diagnostic indicators that allow comparison across these models can help describe and explain differences in model projections. This increases transparency and comparability. Earlier, the IAM community has developed an approach to diagnose models (Kriegler (2015 Technol. Forecast. Soc. Change 90 45-61)). Here we build on this, by proposing a selected set of well-defined indicators as a community standard, to systematically and routinely assess IAM behaviour, similar to metrics used for other modeling communities such as climate models. These indicators are the relative abatement index, emission reduction type index, inertia timescale, fossil fuel reduction, transformation index and cost per abatement value. We apply the approach to 17 IAMs, assessing both older as well as their latest versions, as applied in the IPCC 6th Assessment Report. The study shows that the approach can be easily applied and used to indentify key differences between models and model versions. Moreover, we demonstrate that this comparison helps to link model behavior to model characteristics and assumptions. We show that together, the set of six indicators can provide useful indication of the main traits of the model and can roughly indicate the general model behavior. The results also show that there is often a considerable spread across the models. Interestingly, the diagnostic values often change for different model versions, but there does not seem to be a distinct trend.}, language = {en} }