Perspectives Summer Newsletter
Perspectives Climate Group
With 25 years' experience in developing climate solutions, we drive climate action,?research and leading?ambitions
In this summer edition of our newsletter, discover Perspectives’ latest highlights, including innovative climate finance tools such as 'debt for climate swaps' and 'loss and damage' after COP28. Keep reading for updates on recent events such as the launch of the New West African Alliance website featuring a knowledge hub for voluntary carbon markets. Gain insight into our latest publications discussing carbon dioxide removal deployment at the national level in Norway as well as carbon market implementation in Africa. Follow our experts as they travel to New Delhi and Vietnam for further discussions on a just energy transition and Article 6.2. Perspectives' experts are dedicated to making an impact across the globe; continue reading to learn more about the latest updates in carbon markets and climate solutions.
Perspectives’ team comes together in the Black Forest?
On June 23-27, our colleagues from around the world met in the beautiful Black Forest for a team retreat. From sunset hikes to work meetings overlooking the misty mountains, our team enjoyed daily home-cooked meals and the evening after-work dips in the nearby Schluchsee.
Climate Finance discussions at the UN Climate Talks in Bonn?
2024?is a crucial year for international climate finance, with a decision on a new collective quantified goal (NCQG) anticipated by the end of the year at COP29 in Baku. Climate finance experts Sherri Ombuya and Laila Darouich from Perspectives attended the climate finance and adaptation deliberations at the UN climate talks in Bonn.?
Sherri?and Laila?spoke at a side event organised by the Nordic Council of Ministers, titled "The Role of Blended Finance and Innovative Instruments in Mobilizing Climate Finance in the Context of the NCQG.” They shared insights on the importance of export finance and innovative climate finance tools, such as debt-for-climate swaps, for the green transition.?This collaboration with the Nordic Council of Ministers stems from one of Perspectives' most recent projects: Assessing the Paris Alignment of Nordic Export Credit Agencies. Three case studies on Denmark, Sweden, and Finland are set to be published ahead of COP29.?
Innovation for loss and damage finance after COP28?
In recent months, Perspectives?has been actively showcasing its work on?"Innovative Instruments for Loss and Damage”.?In early February, Perspectives hosted a webinar on "Digesting the COP28 Outcomes on Loss and Damage" featuring experts from multiple civil society groups and think tanks (recording available on YouTube). In mid-February, Perspectives’ climate finance and adaptation expert, Sherri Ombuya, presented on Loss and Damage finance at the “Workshop on Justice in Finance for Climate Change Adaptation and Loss and Damage” in Berlin. ?The project concluded with an online event on the new climate finance goal, featuring experts from Perspectives and Oxfam, and negotiators from Nepal, Malawi, and Germany (recording available on YouTube.)?
Additionally, Perspectives?published a policy brief on "Debt-for-Climate swaps"?to provide insights into the potential and challenges of this much-debated innovative climate finance tool.??
Perspectives' leading European efforts on solar radiation modification research governance?
Perspectives is leading the European consortium project Co-CREATE to advance the governance of solar radiation modification (SRM) research. Over the next three years, with 12 research and think tank institutions on board, the project will investigate the governance of SRM technologies, which aim to limit global heating by reducing solar radiation reaching the Earth’s surface.??
Co-CREATE aims to empower funding agencies to make informed decisions and pave the way for a governance framework. The project engages stakeholders in science, policy, and society, including marginalised and affected communities in the Arctic and Global South, to ensure an inclusive and collaborative approach to this complex issue.?
The project website provides more information and offers the opportunity to register for the stakeholder forum to participate in the stakeholder process.?
Malte Winkler speaking on CDR at the Klimaplatform der Wirtschaft
On May 21 and 29, Malte Winkler, Head of Climate Policy Research at Perspectives, spoke at two conferences focused on the potential of CO? removal technologies. Both events were hosted by the "Klimaplattform der Wirtschaft," a collaborative network partnered with the City of Bern’s Environmental Protection Office to reduce CO? emissions and promote sustainable development.???
Malte shared his extensive expertise on Carbon Dioxide Removal (CDR) and its critical role in international climate policy. He elucidated the main concept, scopes, and methods of CDR and its significance in reaching net-zero and/or net-negative emissions in line with the Paris Agreement temperature targets. He further pointed out that a diverse portfolio of CDR methods is crucial to meet these goals effectively over time.??
Additionally, Malte discussed how companies can purchase carbon removal credits on voluntary carbon markets to meet their climate objectives, contribute to international mitigation efforts, and provide crucial financial support for scaling up CDR initiatives.?
Watch the recorded livestream in German.
Launch of the New West African Alliance Website featuring a knowledge hub on Article 6, VCM, and climate finance??
On June 3, during the member meeting of the West African Alliance on Carbon Markets and Climate Finance (WAA) in Bonn, the new WAA website was successfully launched. It features a comprehensive information page for each member country, an interactive knowledge hub, and regular updates on Alliance events and activities.??
Perspectives led the development of the content for the Knowledge Hub’s that provides valuable resources on Article 6, voluntary carbon markets and climate finance. Kaja Weldner presented its key components during the event, emphasizing the significance of this tool in enhancing understanding of complex topics related to carbon market engagement.
Funded by the Department of Business Energy & Industrial Strategy (BEIS) of the United Kingdom, the project kicked off in September 2023. Perspectives supported the website rollout in close consultation with the Alliance’s technical partners and relevant stakeholders to ensure it meets the needs of member countries and the wider community. This launch marks a significant step forward in our mission to foster collaboration and knowledge sharing within the West African Alliance and enhance the visibility of the WAA internationally.????
We invite you to explore the new website and discover the wealth of information available as we continue to build and expand this platform. Access the knowledge hub section here.?
Carbon Credits Quarterly Highlights
Understanding carbon credit markets and their ever-evolving role in business and policy may seem?daunting, but our experts can help?you?stay informed!??
We are pleased to announce the release of the fourth issue of our Carbon Credits Quarterly Highlights. In each issue, we cover international negotiations on Article 6 of the Paris Agreement, key initiatives, policies, and partnerships around the world. ?
We also take a deeper dive into two topics chosen by our Editor-in-Chief, Hanna-Mari Ahonen.??
Additionally, we are happy to share a sneak peek of the new issue in an introductory call and explain how you can gain access to this new product by Perspectives Climate Group. For more information and an overview of the previous editions, please see our website,or contact Lena Gründel at [email protected]?
Aligning the US export credit agency with the Paris Climate Agreement?
Following last year’s in-depth engagement with US EXIM that was covered repeatedly in Global Trade Review, Perspectives’ study?on?US EXIM’s alignment with climate and development policy objectives has been cited in major?media outlets such as The New York Times, Politico and E&E News. In Climate Home News, Perspectives’ lead author Sherri Ombuya highlighted “the lack of clear guidelines from the US government to EXIM and other US agencies to explicitly prohibit new public fossil fuel support.”?
Ahead of US EXIM’s (controversial) decision on financing a USD 500 million loan for oil and gas development in Bahrain, Perspectives’ Head of Climate Finance, Igor Shishlov argued in an op-ed with Oxfam America’s Tawanda Mutasah that EXIM bucks the green finance agenda – to its own detriment.??
How can SACE progress towards alignment with the Paris Climate Agreement?
Ahead of the Italy-Africa-Summit in January, Perspectives’ climate finance experts, led by Max Schmidt, published a policy brief on how Italy’s export credit agency (ECA) SACE can progress towards alignment with the Paris Agreement. Drawing on Perspectives’ original study on SACE in 2023, the brief shows that the ECA continues to be grossly unaligned with Italian, European, and global climate targets and aims for a fossil, not green energy partnership with Africa.?Similar findings were?published in June for the international energy investments and policies of Italy’s CDP, marking?the first time Perspectives assessed the Paris alignment of a development bank.?
In early June – ahead of OECD-ECA negotiations –, Perspectives’ experts also published a blog post on “Why all Export Credit Agencies need to be on board to phase out fossil fuels,”?in cooperation with the SUS-POL research programme of the University of Sussex.??
Developing CDR at scale and speed in Norway
Perspectives’ Carbon Dioxide Removal (CDR) team contributed to an in-depth report on developing CDR strategies in Norway, which was published in June. This publication, commissioned by Carbon Gap and produced in collaboration with Carbon Limits AS, provides a comprehensive analysis of CDR deployment at the national level, aiming to fill critical knowledge gaps and support strategic mitigation policy planning.?
Despite numerous governments committing to net-zero targets, there remains a significant shortfall in the development and implementation of CDR at the scale necessary to address residual emissions and eventually deliver negative emissions.
The Intergovernmental Panel on Climate Change (IPCC) projects the need for the removal of hundreds of billions of tonnes of CO? to maintain global temperature increases within the limits set by the Paris Agreement. However, country-specific potential and practical pathways for achieving this remain largely unexplored.?
Norway's distinct physical geography, design of national and international climate policies, and social landscape significantly influence the potential for CDR deployment. The report assesses the feasibility of both technological and nature-based CDR pathways within the country, examining various geographical, social, and political factors that impact their implementation.?
This rigorous analysis, co-authored by Perspectives’ Olivia Wallis, Matthias Honegger, Malte Winkler, Matthias Poralla, and Paulien Veen, aims to equip policymakers, industry leaders, and other stakeholders with the data needed to make informed decisions about CDR implementation in Norway.?Read the full publication.
COP28 Digest: Relevance of key outcomes for carbon market implementation in Africa
As part of the Climate Finance Innovators project coordinated by Perspectives Climate Group, in close collaboration with Climate Focus, and supported by Germany’s International Climate Initiative, the "COP28 Digest" was launched in June 2024. The policy brief summarises key COP28 developments and analyses what key COP outcomes mean for the practical implementation of carbon markets, with a special focus on the relevance for African host countries. This includes a summary of the regulatory progress within the United Nations Framework Convention on Climate Change (UNFCCC) negotiations as well as the Article 6.4 Supervisory Body (A6.4SB), but also progress on the action agenda and implementation activities.
These aspects will not be analysed from the perspective of a negotiator, but to what extent they are relevant for the practical implementation of carbon markets and provide an outlook on the way forward for the implementation of Article 6 in Africa. The policy brief was co-authored by Stephan Hoch, Peris Waweru, Aayushi Singh, Cinthya Vega, Bruk Tekie, Elhadji Mbaye Diagne, Maria Eitel, Ximena Samaniego Figueroa.
Furthering the just energy transition in Vietnam through international markets?
During a mission in Hanoi on April 9-12, Axel Michaelowa discussed overcoming barriers to Vietnam's just energy transition, presenting preliminary study results on using international carbon credit revenues to finance renewable electricity generation and grid strengthening. This was undertaken as part of an EU Commission-backed project implemented by GIZ.
On May 30, at a UNDP technical meeting on Article 6 in Hanoi, Axel expanded on this by highlighting the potential of Articles 6.2 and 6.4 to generate revenues for Vietnam's private and public sectors from the sale of carbon credits. Cautioning against heavy reliance on avoided deforestation projects, due to Vietnam’s prior REDD+ credit sales, Axel emphasized that CDM experiences would be a good basis for the country's participation in Article 6, and noted that ITMO sales may help harness the just energy transition.
Discussing international climate policy at ministerial level?
On April 25 and 26, Axel Michaelowa participated in the Petersberg Dialogue in Berlin. The dialogue, hosted by the German Ministry of Foreign Affairs, is a high-level affair aiming at developing compromise solutions for key topics of the international climate negotiations. Axel represented the constituency of Research and Independent NGOs (RINGOs) and intervened in a small ministerial roundtable regarding research results on international carbon markets.???
Policy crediting - panacea or Pandora's box??
On 29 April, Axel Michaelowa spoke on policy crediting in international carbon markets at an event organised by the Zurich Carbon Market Association. The event featured a discussion with representatives of the World Bank's Transformative Carbon Asset Facility and the Gold Standard. Axel stressed that carbon pricing as well as regulation are principally appropriate for crediting. Regarding the former, the higher the carbon price, the higher the likelihood of the policy being additional. Deciding whether additionality is tested solely on the level of the policy instrument or also on the level of specific activities is critical for the credibility of policy crediting approaches.??
Article 6.2 Collaboration Discussions between India and Germany?
On May 27 and 28, Axel Michaelowa was a member of the German government delegation exploring Article 6.2 collaboration options with the Indian Ministry of New and Renewable Energy in New Delhi. Axel showcased the pros and cons of collaboration options suggested by the Indian side and served as an expert on international carbon market matters. Besides the official discussions, Axel participated in an exchange with over 50 representatives of Indian green hydrogen private sector companies as well as a discussion on challenges for voluntary carbon markets with 30 carbon market service providers. Axel stressed the importance of additionality and conservative baselines to enable attractive sales prices for Indian carbon credits.?
Framing an initiative to reduce SF6 emissions from electric switchgear?
On June 3, Axel Michaelowa provided input on policy instruments for SF6 mitigation in a workshop convened by GIZ and the German Ministry of Economy and Climate Action (BMWK) in Bonn. The workshop brought together representatives of multilateral development banks who might want to contribute to an international initiative for SF6 reduction from electric switchgear?contemplated by BMWK. Perspectives' methodology specialist Sven Feige and subcontractor Karsten Burgess provided perspectives on the technical mitigation potential for SF6 and relevant actors in the field.?
Perspectives at the NETs Conference
On June 18-21, Axel Michaelowa, Matthias Poralla, Matthias Honegger, Soyoung Oh and Malte Winkler attended the 3rd International Conference on Negative CO2 Emissions in Oxford. The NETs conference series, bringing together scientists and experts across a wide range of disciplines and research topics, was designed to address the rapidly increasing importance of Greenhouse Gas Removals in climate research and in meeting climate targets.
The team of experts primarily contributed to research from the BMBF-funded project CDR PoEt, which is part of the CDR terra research programme. The team presented a poster on that project, and Malte Winkler delivered a presentation on “Exploring Key Dimensions of Policy Instruments for Carbon Dioxide Removal”. The presentation was based on a paper to be published in the peer-reviewed journal Climate Policy in a Special Issue co-organised by Perspectives and the CDR PoEt consortium. Additionally, Axel Michaelowa chaired the NETs Conference session on Global Policy.???
Join our team at Perspectives Climate Group - exciting opportunities await!
We are thrilled to announce that Perspectives Climate Group is expanding its team and looking for exceptional individuals to join us in making a positive impact on the climate sector. We currently have multiple positions available, and invite you to be part of our passionate and dedicated team.
If you or someone you know is eager to make a difference in the climate sector, we invite you to explore the job postings below and share them within your communities:
Join us at Perspectives and be part of an inspiring team committed to creating a sustainable future.
Thank you for your continuous support and engagement. Together, we can make a meaningful impact on our planet.
We wish you a wonderful summer!
Warmest regards,
The Perspectives Climate Group Team