The tools of climate adaptation policy: analysing instruments and instrument selection

Governments have a key role to play in the process of climate adaptation, through the development and implementation of public policy. Governments have access to a diverse array of instruments that can be employed to adapt their operations and influence the behaviour of individuals, organizations, and other governments. However, the choice of policy instrument is political, because it affects the distribution of benefits and costs, and entrenches institutional procedures and resources that are difficult to redeploy. This article identifies four key governing resources that governments employ in the service of adaptation and analyses these resources using criteria drawn from the policy studies literature. For each category, specific policy instruments are described, and examples are provided to illustrate how they have been used in particular jurisdictions. The article also discusses instrument selection, focusing on trade-offs among the instrument attributes, processes for setting the stage for instrument choice, jurisdictional constraints on instrument selection, and ways to avoid negative vertical and horizontal policy interplay.

Policy relevance

Adaptation is a nascent field of public policy, and courses of action to reduce vulnerability and build adaptive capacity are in their infancy. This article contributes to policy development and analysis by identifying the range of policy instruments available to governments and analysing concrete ways in which they are employed to implement adaptation policy objectives. Taking stock of these adaptation tools and comparing their behavioural assumptions and attributes helps to illuminate potential policy options, and to evaluate their technical viability, political acceptability, and economic feasibility. Providing examples of how these instruments have been implemented successfully in other jurisdictions offers ideas and lessons for public officials.     

The role of money and the financial sector in energy-economy models used for assessing climate and energy policy

This article outlines a critical gap in the assessment methodology used to estimate the macroeconomic costs and benefits of climate and energy policy, which could lead to misleading information being used for policy-making. We show that the Computable General Equilibrium (CGE) models that are typically used for assessing climate policy use assumptions about the financial system that sit at odds with the observed reality. These assumptions lead to ‘crowding out’ of capital and, because of the way the models are constructed, negative economic impacts (in terms of gross domestic product (GDP) and welfare) from climate policy in virtually all cases.

In contrast, macro-econometric models, which follow non-equilibrium economic theory and adopt a more empirical approach, apply a treatment of the financial system that is more consistent with reality. Although these models also have major limitations, they show that green investment need not crowd out investment in other parts of the economy – and may therefore offer an economic stimulus. Our conclusion is that improvements in both modelling approaches should be sought with some urgency – both to provide a better assessment of potential climate and energy policy and to improve understanding of the dynamics of the global financial system more generally.

POLICY RELEVANCE

This article discusses the treatment of the financial system in the macroeconomic models that are used in assessments of climate and energy policy. It shows major limitations in approach that could result in misleading information being provided to policy-makers.     

Adaptation and poverty reduction in Mozambique: an opportunity for developing countries to lead§

Climate change disproportionately impacts the world’s poorest countries. A recent World Bank report highlighted that over 100 million people are at risk of falling into extreme poverty as a result of climate change. There is currently a lack of information about how to simultaneously address climate change and poverty. Climate change challenges provide an opportunity for those impacted most to come up with new and innovative technologies and solutions. This article uses an example from Mozambique where local and international partners are working side-by-side, to show how developing countries can simultaneously address climate change and poverty reduction using an ecosystem-based adaptation approach. Using ecosystem-based adaptation, a technique that uses the natural environment to help societies adapt to climate change, developing countries can lead the way to improve climate adaptation globally. This paradigm shift would help developing countries become leaders in ecosystem-based adaptation and green infrastructure techniques and has implications for climate policy worldwide.

POLICY RELEVANCE

The Paris Agreement resulting from the United Nations Framework Convention on Climate Change (UNFCCC) 21st Conference of Parties (COP 21) in December 2015 was rightly lauded for its global commitment to cut greenhouse gas emissions. However, COP 21 was also historic because of its call for non-party stakeholders to address climate change, inclusion of a global goal of ‘enhancing adaptive capacity, strengthening resilience and reducing vulnerability’, and the United States’ commitment of $800 million to adaptation funding. The combination of recognizing the need for new stakeholders to commit to climate change adaptation, the large impact climate change will have on the developing world, and providing access to funds for climate change adaptation creates a unique opportunity for developing countries to pave the way in adaptation policies in practices. Currently, developing countries are creating National Adaptation Plans (NAPs) for the UNFCCC. Through including a strong component of ecosystem-based adaptation in NAPs, developing countries can shape their countries’ policies, improve local institutions and governments, and facilitate a new generation of innovative leaders. Lessons learned in places like Mozambique can help lead the way in other regions facing similar climatic risks.     

Convergence of per capita carbon dioxide emissions: implications and meta-analysis

There is a rich empirical literature testing whether per capita carbon dioxide emissions tend to converge over time and across countries. This article provides a meta-analysis of the results from this research, and discusses how carbon emissions convergence may be understood in, for instance, the presence of international knowledge spillovers and policy convergence. The results display evidence of either divergence or persistent gaps at the global level, but convergence of per capita carbon dioxide emissions between richer industrialized countries. However, the results appear sensitive to the choice of data sample and choice of convergence concept, e.g. stochastic convergence versus β-convergence. Moreover, peer-reviewed studies have a higher likelihood of reporting convergence in carbon dioxide emissions compared to non-refereed work.

POLICY RELEVANCE

The empirical basis for an egalitarian rule of equal emissions per capita in the design of global climate agreements is not solid; this supports the need to move beyond single allocation rules, and increase knowledge about the impacts of combined scenarios. However, even in the context of the 2015 Paris Agreement with its emphasis on voluntary contributions and ‘national circumstances’, different equity-based principles could serve as useful points of reference for how the remaining carbon budget should be allocated.     

Narrowing gaps between research and policy development in climate change adaptation work in the water resources and agriculture sectors of Cambodia

Narrowing research and policy, while challenging, is especially important in climate change adaptation work (CCA) due to the high uncertainties involved in planning for climate change. This article aims to seek stakeholders’ opinions regarding how research and policy development can be bridged within the Cambodian water resources and agriculture sectors. The study used institutional ethnography methods with informants from government organizations, local academia, and development partners (DPs). This article identifies a number of challenges, and barriers for narrowing research–policy development gaps, including: limited effectiveness of governmental policies and planning; lack of relevant information required to promote evidence-based planning and policy development; and communication barriers. Evidence-based planning is valued by government officials most when there is actual and effective implementation of policies and plans. In practice, this often implies that governmental policies and plans need be scoped and scaled down to meet the available budget, and thus be achievable. In the long term, it also means building the capacity for policy-relevant research on climate change adaptation within Cambodia. Engaging policy stakeholders in research process for co-producing adaptation knowledge, and introducing knowledge intermediaries are suggested by informants as means to narrowing gaps between research and policy development. The presence of the Cambodia's Prime Minister in research–policy dialogues is recommended as important for attracting the attention of high-level policy makers.

Policy relevance

As a least developed and highly climate-vulnerable country, Cambodia has received climate change funding to implement a number of climate adaptation initiatives. Cambodia is likely to receive more climate change finance in the future. This article aims to assist evidence-based planning, in particular, through policy-relevant research on CCA, so that resources for adaptation in Cambodia are used effectively and efficiently. This research also directly benefits the sustainable development of the country.     

Benefit cost analysis,resilience and climate change

Applying a resilience theory framework, land transport funding in New Zealand is used to show how benefit cost analysis can reinforce a preference for maintaining existing economic and social systems when, instead, consideration of more socially disruptive options may be required. In this context, resilience is seen as the ability to maintain transport systems rather than the ability to reduce the probability of climate change. The latter role of resilience attempts to identify thresholds and regime shifts, and so critiques decision-making processes, while the former privileges social stability, thereby reducing the range of potentially useful emission mitigation options to be considered.

Policy relevance

Transitioning to a lower-carbon future requires policy formulation that challenges business-as-usual assumptions. Benefit cost analysis can be applied in ways that create barriers to such transitioning. The New Zealand case study identifies the conditions under which this can be the case. That benefit cost analysis could undermine the potential of resilience theory and application to identify low-carbon emission pathways is of concern to policy makers globally.     

Urban vulnerability and adaptation to heatwaves: a case study of Graz (Austria)

The increasing frequency of heatwaves, particularly in urban contexts, is one of the perceptible consequences of climate change. A city’s vulnerability to these heatwaves must be determined to develop proper adaptation measures. This article addresses the vulnerability of a medium-sized city in Central Europe, Graz, to heatwaves. Based on secondary data and primary data gathered from expert interviews, we identified certain determinants of vulnerability for the city: temperature, proportion of open and green spaces to developed areas, construction period of buildings, distribution of age and poverty risk, adaptation strategies used, and risk perception levels assessed for decision makers in the city administration. Certain city districts can be classified as particularly vulnerable. A high level of risk perception was detected among all decision makers and some adaptation measures have already been enacted. In particular, inter-organizational collaboration in adaptation networks works effectively. A deficit in efficient communication between researchers, policy makers, and members of the public was perceived to be the main barrier. This case study exemplifies the assessment of a city’s vulnerability to heatwaves on the basis of particular determinants and can be applied to many other cities.

Policy relevance

The method applied revealed potential improvements and opportunities on the policy level. Strong networks for climate change adaptation are most effective if regular meetings take place, allowing trust and friendship to grow between decision makers. More target-group-oriented information is needed. Emergency organizations, in particular, need more information, because the perception of heatwave risks has only been based thus far on personal experiences. By establishing a central authority, more information could be provided on heatwaves in cities. The need to raise the perception of members of the population and motivate them to take personal responsibility during disasters was emphasized by interviewed decision makers. This can be supported by providing advice during heatwaves through newspapers, TV, and radio. People in risk groups and their relatives could be trained in workshops. City areas that are at high risk should be marked on maps to make relevant information more tangible for decision makers.     

Assessing the EU ETS with a bottom-up,multi-sector model

The European Emissions Trading System (EU ETS) is the central pillar of the EU response against climate change. This trading mechanism is considered, from the theoretical point of view, as the most cost-effective method to reduce GHG. However, previous studies show that the agents who participate in these markets may behave in a way that may lead to inefficient CO₂ prices, creating doubts about the static and dynamic efficiency of the system. This article analyses these possible anomalies by first trying to model the ETS in a more realistic way, addressing some of the limitations of previous models, and second, by comparing the results with real market transactions. For this, a bottom-up, multi-sector model has been built, which represents the EU ETS in an integrated, cross-sectoral way, paying particular attention to the interactions among the most emissions intensive industries. The results show the benefits of this modelling approach and how it better reflects real market conditions. Some preliminary conclusions regarding the behaviour of the agents in the ETS market are also presented.

POLICY RELEVANCE

Low allowance prices in the EU ETS have put into question the dynamic efficiency of the EU ETS system, prompting various ideas for structural reform. However, determining the right reform also requires estimating correctly how agents will respond to it. This article proposes a tool to realistically simulate the EU ETS under the assumption of rational agents, and compare it to real market outcomes, in order to understand better the behaviour of agents in this carbon market, and therefore how to design better policies.     

Change and transition: the climate of Ukraine's agri-food sector

The agri-food sector has contributed significantly to climate change, but has an important role to play in climate change mitigation and adaptation. The agri-food sector has many potential win–win–win strategies that benefit mitigation and adaptation, and also deliver gains in rural income and land management. Post-Soviet transition economies provide a good model for understanding some of the barriers to adaptation and mitigation in the agri-food sector, due to their significant unmet agricultural potential combined with inefficient energy use. Ukraine is used as a case study to explore the barriers and bridges to addressing climate change in a post-Soviet state. A variety of stakeholders and farmers were interviewed about mitigation and adaptation and the current response capacity. Grounded theory analysis revealed themes that are perceived to function as barriers including: pandering, oligarchs and market interventions; corruption and transparency; and survival, freedom and law enforcement. Foreign involvement and investment emerged as a bridge to overcoming these barriers. The results indicate that significant progress in climate mitigation and adaptation in the agri-food sector in Ukraine will only be achieved if some of the wider political and social issues facing the country can be addressed.

Policy relevance

Ukraine has considerable potential for both agricultural production and climate change mitigation; however, this potential can only be met by identifying and addressing barriers currently impeding progress. This article found that barriers to effective climate change are perceived to stem from wider post-Soviet transition issues. These wider issues need to be addressed during the implementation of climate policy since they are viewed to be important by a wide variety of stakeholders. International negotiations have provided little incentive for Ukraine to achieve effective mitigation, and corrupt practices further impair mitigation projects. In addition, export quotas currently function as a maladaptive climate policy and reduce both farmers' capacity in Ukraine and international food security. Meanwhile, foreign involvement, not just financial investment, but also the investment of ideas can provide a bridge to effective climate policy. The international community needs to provide a legal framework and assist Ukraine in adopting transparent processes in order to successfully execute climate policy.     

Place-based or sector-based adaptation? A case study of municipal and fishery policy integration

Place-based adaptation planning is an approach to address cross-sectoral and multi-level governance concerns as well as to build local adaptive capacity in vulnerable resource-dependent communities facing the adverse impacts of climate change. In contrast, sector-based adaptation planning focuses on addressing climate change impacts on individual economic sectors (e.g. fisheries or forestry) or sub-sectors (such as lobsters or timber). Yet, linking sectoral approaches with local adaptation policies is challenging. More effort is needed to identify opportunities for complementary adaptation strategies and policy integration to foster multiple benefits. In this article, we use a case study of fishery sector resources and municipal adaptation planning in Nova Scotia to demonstrate how meaningful entry points could catalyse policy integration and lead to co-benefits across multiple levels and stakeholder groups. Drawing on a fisheries systems and fish chain framework, we identify and assess several entry points for policy integration across sector- and place-based adaptation domains within coastal habitats, as well as harvesting, processing, and marketing sectors. The analysis highlights the multiple benefits of integrating local municipal adaptation plans with multi-scale resource sectors especially towards monitoring ecosystem changes, protecting essential infrastructure, and securing local livelihoods.

POLICY RELEVANCE

Climate change is having a growing impact on coastal communities around the world, with consequences for sea-level rise, critical habitats, essential infrastructure, and multiple economic sectors and industries. This Canadian case study demonstrates how municipal adaptation initiatives can be complementary to sector-based adaptation at both local and regional levels through various entry points across commodity production chains. Policy integration across place-based and sector-based adaptation processes should lead to multiple benefits such as conserving marine biodiversity, protecting essential infrastructure, and securing livelihoods. Our analysis, which focuses specifically on the fishery sector and coastal communities, shows that these co-benefits may arise particularly in such coastal-marine systems and provide policy lessons to terrestrial systems and other sectors.     

Indigenous community benefits from a de-centralized approach to REDD+ in Brazil

Successful efforts of indigenous groups to reduce emissions from deforestation and forest degradation in developing countries (REDD+) will likely vary with how the initiatives are designed and implemented. Whether REDD+ initiatives are carried out by national governments or decentralized to sub-national or project-level institutions with a nested approach could be of great consequence. I describe the Suruí Forest Carbon Project in Amazonian Brazil, one of the first REDD+ pilot projects implemented with indigenous people in the world. I emphasize (1) how enfranchisement of community members in the policy-planning process, fund management, and carbon baseline establishment increased project reliability and equity, and (2) how the project's quality would have likely been diminished if implemented under a centralized REDD+ scheme.

Policy relevance

This article explores a decentralized REDD+ intervention established in an indigenous land in Brazil. It expands the theoretical discussions on REDD+ governance and highlights how centralized REDD+ programmes are likely to be less effective than project-level interventions assisted by NGOs in terms of social benefits and community engagement. Additionally, the case study described can serve as reference for the design of critical social and technical components of REDD+.     

Assessing the ambition of post-2020 climate targets: a comprehensive framework

One of the most fundamental questions surrounding the new Paris Agreement is whether countries’ proposals to reduce GHG emissions after 2020 are equally ambitious, considering differences in circumstances between countries. We review a variety of approaches to assess the ambition of the GHG emission reduction proposals by countries. The approaches are applied illustratively to the mitigation part of the post-2020 climate proposals (nationally determined contributions, or NDCs) by China, the EU, and the US. The analysis reveals several clear trends, even though the results differ per individual assessment approach. We recommend that such a comprehensive ambition assessment framework, employing a large variety of approaches, is used in the future to capture a wide spectrum of perspectives on ambition.

POLICY RELEVANCE

Assessing the ambition of the national climate proposals is particularly important as the Paris Agreement asks for regular reviews of national contributions, keeping in mind that countries raise their ambition over time. Such an assessment will be an important part of the regular global stocktake that will take place every five years, starting with a ‘light’ version in 2018. However, comprehensive methods to assess the proposals are lacking. This article provides such a comprehensive assessment framework.     

Temperature Extremes from Canadian Regional Climate Model (CRCM) Climate Change Projections

Future climate projections of extreme events can help forewarn society of high-impact events and allow the development of better adaptation strategies. In this study a non-stationary model for Generalized Extreme Value (GEV) distributions is used to analyze the trend in extreme temperatures in the context of a changing climate and compare it with the trend in average temperatures.

The analysis is performed using the climate projections of the Canadian Regional Climate Model (CRCM), under an IPCC SRES A2 greenhouse gas emissions scenario, over North America. Annual extremes in daily minimum and maximum temperatures are analyzed. Significant positive trends for the location parameter of the GEV distribution are found, indicating an expected increase in extreme temperature values. The scale parameter of the GEV distribution, on the other hand, reveals a decrease in the variability of temperature extremes in some continental regions. Trends in the annual minimum and maximum temperatures are compared with trends in average winter and summer temperatures, respectively. In some regions, extreme temperatures exhibit a significantly larger increase than the seasonal average temperatures.

The CRCM projections are compared with those of its driving model and framed in the context of the Coupled Model Intercomparison Project, phase 3 (CMIP3) Global Climate Model projections. This enables us to establish the CRCM position within the CMIP3 climate projection uncertainty range. The CRCM is validated against the HadEX2 dataset in order to assess the CRCM representation of temperature extremes in the present climate. The validation is also framed in the context of CMIP3 validation results. The CRCM cold extremes validate better and are closer to the driving model and CMIP3 projections than the hot extremes.     

Learning from CDM SD tool experience for Article 6.4 of the Paris Agreement

The Paris Agreement (PA) emphasizes the intrinsic relationship between climate change and sustainable development (SD) and welcomes the 2030 agenda for the global Sustainable Development Goals (SDGs). Yet, there is a lack of assessment approaches to ensure that climate and development goals are achieved in an integrated fashion and trade-offs avoided. Article 6.4 of the PA introduces a new Sustainable Mitigation Mechanism (SMM) with the dual aim to contribute to the mitigation of greenhouse gas emissions and foster SD. The Kyoto Protocol’s Clean Development Mechanism (CDM) has a similar objective and in 2014, the CDM SD tool was launched by the Executive Board of the CDM to highlight the SD benefits of CDM activities. This article analyses the usefulness of the CDM SD tool for stakeholders and compares the SD tool’s SD reporting requirements against other flexible mechanisms and multilateral standards to provide recommendations for improvement. A key conclusion is that the Paris Agreement’s SMM has a stronger political mandate than the CDM to measure that SD impacts are ‘real, measurable and long-term’. Recommendations for an improved CDM SD tool are a relevant starting point to develop rules, modalities, and procedures for SD assessment in Article 6.4 as well as for other cooperative mitigation approaches.

POLICY RELEVANCE

Research findings are relevant for developing the rulebook of modalities and procedures for Article 6.4 of the Paris Agreement, which introduces a new mechanism for mitigation of greenhouse gas emissions and sustainable development. Lessons learnt from the CDM SD tool and recommendations for enhanced SD assessment are discussed in context of Article 6 cooperative approaches, and make a timely contribution to inform negotiations on the rulebook agreed by the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement.     

Inclusive approaches to urban climate adaptation planning and implementation in the Global South

As cities increasingly engage in climate adaptation planning, many are seeking to promote public participation and facilitate the engagement of different civil society actors. Still, the variations that exist among participatory approaches and the merits and tradeoffs associated with each are not well understood. This article examines the experiences of Quito (Ecuador) and Surat (India) to assess how civil society actors contribute to adaptation planning and implementation. The results showcase two distinct approaches to public engagement. The first emphasizes participation of experts, affected communities, and a wide array of citizens to sustain broadly inclusive programmes that incorporate local needs and concerns into adaptation processes and outcomes. The second approach focuses on building targeted partnerships between key government, private, and civil society actors to institutionalize robust decision-making structures, enhance abilities to raise funds, and increase means to directly engage with local community and international actors. A critical analysis of these approaches suggests more inclusive planning processes correspond to higher climate equity and justice outcomes in the short term, but the results also indicate that an emphasis on building dedicated multi-sector governance institutions may enhance long-term programme stability, while ensuring that diverse civil society actors have an ongoing voice in climate adaptation planning and implementation.

Policy relevance

Many local governments in the Global South experience severe capacity and resource constraints. Cities are often required to devolve large-scale planning and decision-making responsibilities, such as those critical to climate adaptation, to different civil society actors. As a result, there needs to be more rigorous assessments of how civil society participation contributes to the adaptation policy and planning process and what local social, political, and economic factors dictate the way cities select different approaches to public engagement. Also, since social equity and justice are key indicators for determining the effectiveness and sustainability of adaptation interventions, urban adaptation plans and policies must also be designed according to local institutional strengths and civic capacities in order to account for the needs of the poor and most vulnerable. Inclusivity, therefore, is critical for ensuring equitable planning processes and just adaptation outcomes.     

The complex decision-making of climate-induced relocation: adaptation and loss and damage

Climate change is increasingly challenging the ability of millions of people to sustain livelihoods as the places where they live become uninhabitable. The relocation of populations as individuals, households, and communities within countries and across international borders demonstrates the complexity of climate change impacts. Looking at the literature, some researchers argue that relocation caused by climate change can be an effective strategy to adapt to localized changes, whereas others argue that the movement away from ones' homeland is more neatly captured in the climate change lexicon as ‘loss and damage’. We argue here that the relocation of people as a result of the impacts of climate change can be both adaptation and loss and damage. Drawing on examples from Alaska and Kiribati, we show that dividing this issue between the two concepts is unhelpful in resolving key issues around the types of appropriate support for these transitions to sustain and protect livelihoods and to open up possibilities for self-determined futures.

Policy Relevance

Climate-induced relocation poses a significant challenge for the populations affected as well as the government agencies tasked with providing technical assistance and funding. At present, policies and institutional frameworks have not yet been developed to accommodate these challenges, despite the urgent need to do so. When the relocation of populations can be planned, participatory, and people centred, then it can be an adaptation strategy that will protect people from the permanent loss of land and livelihoods. If these movements are decided, driven, managed, and undertaken by those affected, then there is the potential for the relocation to also be a transformative opportunity for people to respond to the impacts of climate change, and sustain their livelihoods and possibly even improve certain livelihood outcomes. However, these relocations also cause significant loss and damage. The extent of the loss and damage will partly depend on the ability to have these relocations planned and ensure that human rights protections are embedded in institutional frameworks. The article shares a series of lessons and learnings that are of policy relevance at a variety of scales.     

Mainstreaming climate change adaptation into inland aquaculture policies in Thailand

While there have been many pilot projects on adaptation undertaken in the fisheries and aquaculture sector, state policies are only just beginning to address let alone refer to climate change. This study explores the climate-related content, climate sensitivities, and opportunities to incorporate climate change concerns in a set of aquaculture policies by the government of Thailand. The analysis is based on content analysis of policy documents and in-depth interviews with 14 officials that had roles in the design or implementation of 8 Department of Fisheries policies. The Aquaculture Master Plan 2011–2016 and the now abandoned Tilapia Strategy refer directly to climate variability or change. The Master Plan also suggests measures or strategies, such as investment in research, and the transfer of technologies, which would be helpful to sustainability and adaptation. Other policies suggest, or at the very least include, practices which could contribute to strengthening management of climate-related risks, for example: a registration policy included provisions for compensation; extension programme policy recognizes the importance of extreme events; and a standards policy gives guidance on site selection and water management. Most existing aquaculture policies appear to be sensitive to the impacts of climate change; for instance, the zoning policy is sensitive to spatial shifts in climate. Stakeholders had ideas on how policies could be made more robust; in the case of zoning, by periodically reviewing boundaries and adjusting them as necessary.

POLICY RELEVANCE

This study is one of the first evaluations of the coverage and sensitivity of aquaculture policies to climate change. It shows that while existing policies in Thailand are beginning to refer explicitly to climate change, they do not yet include much in the way of adaptation responses, underlining the need for identifying entry points as has been done in this analysis. Further mainstreaming is one option; another possibility is to adopt a more segregated approach, at least initially, and to collect various policy ideas under a new strategic policy for the aquaculture sector as a whole.     

Options to overcome the barriers to pricing European agricultural emissions

Although agriculture could contribute substantially to European emission reductions, its mitigation potential lies untapped and dormant. Market-based instruments could be pivotal in incentivizing cost-effective abatement. However, sector specificities in transaction costs, leakage risks and distributional impacts impede its implementation. The significance of such barriers critically hinges on the dimensions of policy design. This article synthesizes the work on emissions pricing in agriculture together with the literature on the design of market-based instruments. To structure the discussion, an options space is suggested to map policy options, focusing on three key dimensions of policy design. More specifically, it examines the role of policy coverage, instruments and transfers to farmers in overcoming the barriers. First, the results show that a significant proportion of agricultural emissions and mitigation potential could be covered by a policy targeting large farms and few emission sources, thereby reducing transaction costs. Second, whether an instrument is voluntary or mandatory influences distributional outcomes and leakage. Voluntary instruments can mitigate distributional concerns and leakage risks but can lead to subsidy lock-in and carbon price distortion. Third, the impact on transfers resulting from the interaction of the Common Agricultural Policy (CAP) with emissions pricing will play a key role in shaping political feasibility and has so far been underappreciated.

POLICY RELEVANCE

Following the 2015 Paris Agreement, European climate policy is at a crossroads. Achieving cost-effectively the 2030 and 2050 European targets requires all sectors to reduce their emissions. Yet, the cornerstone of European climate policy, the European Union Emissions Trading System (EU ETS), covers only about half of European emissions. Major sectors have been so far largely exempted from carbon pricing, in particular transport and agriculture. While transport has been increasingly under the spotlight as a possible candidate for an EU ETS sectoral expansion, policy discussions on pricing agricultural emissions have been virtually absent. This article attempts to fill this gap by investigating options for market-based instruments to reduce agricultural emissions while taking barriers to implementation into account.     

Could Cohesion Policy push EU climate efforts?

The main purpose of this article is to evaluate the extent to which the Cohesion Policy of the EU contributes to its climate change mitigation effort. While climate change mitigation and the EU Cohesion Policy have been both thoroughly studied theoretically, the novelty of the present article lies in an analysis of their mutual relationship. Also, a unique feature of this research is an analysis of the contribution of the Cohesion Policy to climate change mitigation over a period of 20 years, including a comparison of the three last programming periods (2000–2006, 2007–2013 and 2014–2020). The results of this research suggest that, while the beginning of the new millennium saw the Cohesion Policy neglecting the issue of climate change mitigation, the current programming period (2014–2020) placed it among its key priorities. This conclusion is supported by a comprehensive set of data on five selected indicators. This article also displays the results against the perspective of the overall climate change mitigation objectives of the EU.

POLICY RELEVANCE

The present article shows how a policy, which used to be considered rather distant from climate change, progressively adopted climate change mitigation as one of its principal objectives. As such, it provides a practical guidance on the integration of climate change mitigation in other policy areas, which may be applied not only in a supranational organisation but also on a national, regional or local level.