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Abstract:
Efforts by Germany and the European Union to advance climate mitigation internationally are under pressure. Domestic political priorities have shifted, international tensions and conflicts have increased, conventional approaches to international climate cooperation have reached a roadblock. At the same time, renewable energy is more cost-efficient than ever, and Germany’s and the EU’s dependence on fossil fuel imports has underscored the economic and security benefits of decarbonisation. This paper starts out be reviewing the economic case that pursuing ambitious climate mitigation globally is in the material interest of Germany and the EU.
A strategic portfolio of policies is needed respond to the challenges to effective climate cooperation. We discuss selected elements of such a portfolio: There is a need for instruments and policies to support other countries financially to boost their mitigation efforts to enable international flexibility in attaining EU climate goals, shield domestic mitigation efforts against external pressure, and secure the resources required for domestic mitigation. The paper highlights as examples the Just Energy Transition Partnerships, the EU’s Carbon Border Adjustment Mechanism, and the novel proposal for Jurisdictional Reward Funds.
