This newsletter edition has been split from its original format into two parts. The other can be found here: "Navigating the ESG Mandate Maze: A Global Guide to Emissions Disclosure".
A lot of countries have promised to reduce their greenhouse gas emissions to stop climate change. But promises are one thing and actions are another. Nearly ten years after the 2015 Paris Agreement, where are we? What's really moving the needle and what's coming next? (If you want to do a deep dive, there's a study that analyzed and ranked 1,500 global climate policies here). Overall, the Team concluded:
- Climate policies are more effective as part of a mix:?In most cases, effect sizes of climate policies are larger if a policy instrument is part of a policy mix rather than implemented alone –for example combining carbon pricing with a subsidy.
- Developed and developing countries have different climate policy needs:?In developed countries, carbon pricing stands out as an effective policy, whereas in developing countries, regulation is the most powerful policy.
- The Paris emissions gap can be closed:?Focusing on the 63 cases of effective climate policies would close the current emissions gap to meet the Paris Targets by 26% -41%, a significant contribution.
The bulk (and original intent) of this article discusses policies related to Emissions and ESG disclosure mandates (scroll down to the next section is that's your focus), but plenty of other countries, and states have what could be called 'climate policies' in effect (plenty more detail available from this World Bank Report "Reality Check: Lessons from 25 Policies Advancing a Low-Carbon Future", a summary of which is shown below.
State Climate Policy Maps (24 U.S. states plus the District of Columbia have adopted specific GHG reduction targets to address climate change) and a State Climate Policy Dashboard are also available.
Planning for a Future with Zero Net Emissions
- Costa Rica (Economy-wide): Long-Term Strategy and National Decarbonization Plan (2018). Policy development process strongly engaged technical and nontechnical stakeholders, including for climate justice and just transition considerations.
- Indonesia (Agriculture): Moratorium on New Forest Concessions (2011) and Forest and Peatland Restoration Program (2016) as part of REDD+ strategy to reduce deforestation, improve Biodiversity conservation; climate change mitigation; water conservation. Includes a feedback and grievance redress mechanism.
- United Kingdom (Economy-wide): UK Climate Change Act (2008) drives decarbonization and resilience with governance supported by strong civil society engagement and ongoing public accountability measures.
Getting the Prices Right: Economy-wide Policies to Promote Structural Change
Facilitating, Enabling, and Triggering Sectoral Transitions (technology support policies)
- Japan (Industry): Act on the Rational Use of Energy (1979) improves energy efficiency and economic competitiveness by integrating energy-efficient technologies in industries. The law is the pillar of Japanese energy conservation policy.
- Mexico (Municipal solid waste): The Monterrey waste-to-energy project captures landfill gas to produce clean energy, delivering cost savings, community benefits, and reduced methane emissions.
- Brazil (Agriculture): Action Plan for Prevention and Control of Deforestation in the Amazon (PPCDAm) Amazon deforestation control initiatives include real-time satellite monitoring, protected area creation, and sustainable production promotion.
- Sahel Region (Agriculture): Climate-smart agriculture initiatives improve food security and sequester carbon, supported by training and cash transfers for local communities.
- Egypt, Arab Rep. (Transport): Egypt Vehicle Scrapping and Recycling Program (2008) incentivizes owners to replace old vehicles, reducing air pollution and creating jobs.
- Peru (Transport): Infrastructure policies promote cycling for urban planning and social health benefits, supported by knowledge exchange programs and civil society engagement.
- South Africa (Transport): Launched a Bus Rapid Transport strategy in 2007 with recent updates and the Integrated Public Transport Network Strategy in 13 cities to decarbonize transport, improve public transportation safety and efficiency, and reduce air pollution.
- Türkiye (Buildings): Energy Performance of Buildings Regulation or “Binalarda Enerji Performans? Y?netmeli” promotes energy efficiency in public and private sectors through training and knowledge-sharing programs.
Facilitating, Enabling, and Triggering Sectional Transitions (Demand Support Policies)
- India (Power): The National Solar Mission (2010), accelerates solar adoption with fiscal incentives, fostering job creation and improved energy access.
- Colombia (Gas flaring): Ecopetrol Company’s Climate Change Strategy to Reduce Gas Flaring (linked to NDC); Global Gas Flaring Reduction Partnership (2021) reduces gas flaring while improving energy supply and reducing black carbon pollution.
- India (Transport): Faster Adoption and Manufacturing of Electric (and Hybrid) Vehicles in India (FAME-II) scheme (2019–2021). Decarbonize transport, Improved mobility access; reduced air pollution; job creation by boosting domestic electric vehicle manufacturing.
- Colombia (Buildings): Green Building Code and appropriate tax incentives to bolster the interest of the private sector to build green.
- China (Agriculture): Introduced the Guangdong Agricultural Pollution Control Project (2013) and developed standards and regulations for safe, green agricultural products.
Getting the Finance Flowing
- Chile (Transport): In addition to the National Electromobility Strategy, the government used public-private partnership to overcome financial, operational, and infrastructure challenges to e-bus development.
- Colombia (Economy-wide): Climate risk stress test, regulatory reforms, and a green taxonomy to classify green investments.
- Kenya (Power): Revising the Energy Act (2006) attracts private investment in renewables, boosting jobs, economic growth, and energy access.
- South Africa (Coal): Created a Presidential Climate Commission (2021) that leads just energy transition strategies with inclusive dialogues involving government, labor, and civil society.
- United Kingdom, Germany, and the Netherlands (Coal): UK Coal Phase-Out Policy (2015); Netherlands Coal Phase-Out Act (2019); Germany’s Coal Exit Law (2020), Coal phase-out policies reduce emissions and air pollution through stakeholder consensus and strengthened social safety nets.
In conclusion...
The evidence is clear: no single policy can address the complexity of climate change, but well-designed policy mixes, tailored to the unique needs of developed and developing nations, can drive meaningful impact.
The success stories from Costa Rica, Canada, and China show that when governments, industries, and civil societies collaborate, they can create scalable solutions that not only reduce emissions but also foster economic growth, equity, and resilience.
As we approach the critical years ahead, translating promises into actionable, accountable measures remains the key to closing the emissions gap and ensuring a sustainable, low-carbon future for all.
