To help inform thinking about UK policy options for our Rethinking Decarbonisation Incentives project, we commissioned 11 international case studies to explore the policy approaches to decarbonisation (or related objectives).
The case studies, delivered by Ricardo Energy and Environment, include examples of standards, subsidies, tradeable certificates and interacting suites of policies, as well as the carbon pricing instruments ‘carbon tax’ and ‘cap and trade’.
Download all of the case studies in a single report
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Focuses on the policy development and governance processes involved in implementing California’s Global Warming Act of 2006, and the central role that California’s Air Resources Board’s (CARB) played. It also covers the role that the cap and trade policy alongside complementary measures in achieving California’s climate change goals.
Examines the key design factors and governance and practical administration of the Fuel Standards programme. The case study also explores the revisions that were made following lawsuits filed against the fuel standard.
Investigates how manufacturers have performed against the standards and the limitations of this approach from the point of view of an incentive for decarbonisation. It also examines how the standards function alongside other EU policy initiatives, such as vehicle and fuel taxation.
Examines the main issues in determining the robustness of the EU Emission Trading Scheme (ETS) price signal. The EU ETS policy development experience provides insights into the key challenges in establishing a multi-sector decarbonisation incentive.
Examines the white certificate system in Italy, known as the Titoli di Efficienza Energetic (TEE) to draw lessons on whether and how decarbonisation signals can be established with energy efficiency policies sitting alongside carbon pricing.
Focus on how decisions around policy targets have led to different levels of economic incentives for renewables. It also examines the interaction between measures to support renewable energy and incentives for decarbonisation and how any negative consequences can be mitigated.
Outlines the rationale for some of the unique features of the New Zealand Emission Trading System (ETS). These include policy decisions around excluding the agriculture sector from the ETS, the choice for upstream regulation, the rationale and impacts of linking to other ETS(s), and mechanisms to protect the competitiveness of industries.
Reviews the federal carbon pricing ‘backstop’ approach proposed under the Pan-Canadian Framework on Clean Growth and Climate Change (PCF) for those jurisdictions which elect to adopt it or whose proposed approaches fail to meet the minimum stringency standards. In addition, the steps taken to mitigate risks to business competitiveness under the PCF are also highlighted.
Provides findings on the extent to which such a broad-based policy can deliver a carbon price signal throughout an economy, and the technical and political challenges faced. It explores the design of the tax, including its point of regulation, the exemptions or allowances granted to specific sectors, and rationale behind these. In addition, it examines measures to deal with issues of international competitiveness, such as the use of offsets.
Explore the evolution of the tax policy and key drivers behind this. In addition, it explores the government’s measures to maintain political, commercial and public acceptance of the policy. Finally, the issue of the tax policy’s interaction with complementary policies is examined, including attempts to harmonise in areas of overlap.
Discusses the political context around designing the scheme, key design elements, and the associated economic benefits. It also reviews the challenges associated with the attempts to reduce the cap.
Synthesis of Key Findings from Case Studies
To download this file, we would be grateful if you could tell us a little about yourself.
We use this information for internal research purposes to help us better understand which energy sector stakeholders are interested in which areas of our work. We do not share your details with any third parties.
If you do not wish to complete the form, please email communications@es.catapult.org.uk to request a digital copy.
Using the case studies and key findings, Ricardo Energy and Environment are developing and characterising a set of reform options, which will undergo in-depth analysis in subsequent stages of the project.
Synthesis of Key Findings from Case Studies relevant to UK decarbonisation policy have been drawn from the international case studies listed above and brought together into a report.
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