CARBON EMISSIONS REDUCTION PROJECT (Sep/2024)
Instruments for Carbon Emissions reduction: a focus on Green Certificates and the Carbon Border Adjustment Mechanism
Mitigating
climate change is one of the most pressing global challenges of our time. The
increase in greenhouse gas (GHG) emissions, primarily from human activities
such as burning fossil fuels, deforestation, and industrial processes, has led
to significant warming of the Earth's atmosphere. This warming is already
resulting in more frequent and severe weather events, rising sea levels, and
disruptions to ecosystems and biodiversity. To prevent the worst impacts of
climate change, there is the need to drastically reduce emissions and
transition to a low-carbon economy.
Green certificates and the Carbon Border Adjustment Mechanism (CBAM) contribute to climate change mitigation in a dual way. Green certificates aim to encourage renewable energy production, while the CBAM aims to limit the leakage of GHG emissions from the European Union by imposing a cost.
The
objective of this work is to analyse these tools and its relation with
Guarantees of Origin and the European Emission Trading System. The combined
analysis highlights strategic insights, potential benefits and challenges in aligning with the CBAM,
as well as it enables to draw a future outlook on the implementation of policies
towards carbon neutrality Europe.