European climate policies apply a mix of different policy instruments to impose emissions reductions. Main instrument categories include non-market-based and market-based instruments. This knowledge package introduces the workings of market-based instruments currently part of the EU’s climate policy toolbox.Read more

Carbon leakage is defined as an increase of emissions outside the EU because of EU climate policies. As such policies affect the costs of economic activity, especially in energy intensive industries, they might cause companies to move production to countries with laxer greenhouse gas emission policies. Therefore, affected industries receive benefits, such as more free emission allowances in the EU...Read more

An increasing number of countries and regions around the world are developing and implementing emissions trading as a way of putting a price on greenhouse gas emissions. This knowledge package gives an overview of such systems, compares design features and giving an outlook on future developments.Read more

Sustainable biofuels have the potential to foster rural development and to replace fossil fuels. Although there are concerns about food security, impacts on small-scale farmers, more competition for water, local pollution and increased deforestation, this knowledge package concludes that various difficulties make it impossible to quantify the relationship between biofuel production and deforestation and to map it at the global...Read more