MAGNET model’s Post

Iam pleased to let you know that the final open access version of our article European Green Bonds, carbon tax and crowding-out: the economic, social and environmental impacts of the EU’s green investments under different financing scenarios is now available online. Highlights are: • Green energy investments lead to emission reduction at low economic costs or even with economic benefits. • The most positive GDP impact is achieved with European Green Bonds as a main financing mechanism. • Green energy investments provide positive social spillovers and have a positive impact on the bioeconomy as a whole. • Technology learnings are crucial for the emission saving effect of green investments and enhance positive economic effects. • The CO2 taxation is an effective instrument to speed up the energy transition, however at the cost of higher energy prices. #MAGNETeer https://lnkd.in/euUEr5bB

A new report estimates the EU's green transition could cost €1.3 trillion annually until 2030 and €1.54 trillion annually until 2050. The high cost of the transition may require higher taxes, subsidies, and potentially national green investment strategies. Concerns exist about public support for the transition due to rising living costs and potential harm to businesses' competitiveness.

"A new report estimates the EU's green transition could cost €1.3 trillion annually until 2030 and €1.54 trillion annually until 2050. The high cost of the transition may require higher taxes, subsidies, and potentially national green investment strategies. Concerns exist about public support for the transition due to rising living costs and potential harm to businesses' competitiveness."

Just out: our new UCL Institute for Sustainable Resources report sets out policies for delivering a decarbonised electricity system. Led by Michael Grubb, with Claudia Brown and Yaroslav Melekh, PhD. We argue that electricity decarbonisation offers multiple long-term benefits, and requires smart policy design to reduce financial and political risks. The report puts forward seven proposals for the new government:  1. The Contracts for Difference policy is very successful, as today's results demonstrate. But it needs reform to meet new challenges, particularly the need for more flexibility and storage.  2. A plan to transition away from gas power generation to cleaner forms of flexibility is urgently required. 3. There is still a clear opportunity to reform the electricity market so that consumers can access the benefits of cheap renewables. We propose a regional pilot of a Green Power Pool. 4. The UK should work with EU member states to integrate electricity trading and investment regimes, particularly for offshore wind in the North Sea 5. There is a need to rebalance policy costs between gas and electricity bills, and a strong case for introducing a social tariff for low income households 6. We need to develop better methods to communicate the economics of the energy transition that includes the costs and benefits. We propose a new National Energy Cost Share metric 7. Whilst carbon pricing is not the main driver of change, reforms are required. This includes aligning UK and EU emissions trading scheme, and border adjustment mechanisms. Read it here: https://lnkd.in/ed2GQaca

"The UK’s green economy has remained resilient despite a challenging context and will be a crucial engine of future growth. Research demonstrates that the low-carbon sector grew 9% in 2023 in contrast with the wider economy, which saw only 0.1% growth during that period, and businesses involved in the sector currently provide gross value added (GVA) of £74 billion to the UK economy." Recommendations in the publication include amending the planning system to accelerate the delivery of renewables, setting out a clear long-term industrial strategy with decarbonisation at its heart, completing the implementation of the 2023 Green Finance Strategy and delivering a UK Green Taxonomy. This is alongside vital measures to boost energy efficiency, decarbonise transport, restore nature, and develop the skills required for a low-carbon future." https://lnkd.in/e_5P4uBb #GreenGrowth #GreenInvestment

📝 The CBI (Confederation of British Industry) has released its Tax & Green Investment Report, outlining strategies for the UK to lead in green innovation and combat climate change. 🔎 As the UK strives to reach net zero by 2050, it's imperative to leverage tax incentives to drive investment in high-growth green sectors. The report underscores the need to prioritise green technologies and processes, offering a roadmap to unlock private sector innovation and drive economic growth. Key recommendations include: 🔹 Introduction of a Green Innovation Credit to incentivise R&D in CCUS, hydrogen, biofuels, and other green technologies. 🔹 Lowering the corporation tax rate for profits derived from green technologies, including CCUS and hydrogen, to stimulate commercialisation. 🔹 Implementing an enhanced green super-deduction rate to support capital investment in various green initiatives, including CCUS adopting by heavy industry, and hydrogen infrastructure. 💰 The potential economic benefits are substantial, with projections suggesting a GDP boost of up to £57 billion annually by 2030. However, to seize these opportunities, strategic and decisive action is needed now. The CBI (Confederation of British Industry)'s report serves as a vital blueprint for policymakers and businesses alike, signalling the UK's commitment to green growth and innovation. You can read the full report here: https://lnkd.in/g73VDBc5 #CCUS | #CarbonCapture | #Hydrogen | #NetZero

The #NetZeroEconomyAuthority has been enshrined in law, with the #legislation passing through #parliament on 9 September 2024. Climateworks Centre CEO and Net Zero Economy Agency Advisory Board Member, Anna Skarbek, welcomed the addition to Australia’s institutional arrangements.  “The #authority, now enshrined in #law, sends a clear signal to Australia and to the rest of the world that the nation is committed to making the most of the #netzeroopportunity. “The Net Zero Economy Authority will be pivotal in accelerating action #reducingemissions at scale and ensuring Australia’s regions, industries, communities and workers are supported in the shift to a #lowcarboneconomy.” 

Thrilled to share my latest article co-authored with Tom McCaffery MBA, PMP for Inside Policy. We explore whether the recently finalized Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit will truly kickstart Canada's carbon capture initiatives—or if we're still missing key pieces of the puzzle. Carbon capture is critical for meeting our climate goals, but getting "shovels in the ground" requires more than just policy. It demands collaboration, regulatory certainty, and the right economic conditions. Dive into our analysis to see where Canada stands and what it will take for us to lead in clean technology. Your thoughts and feedback are always welcome! #CarbonCapture #CleanTech #Sustainability #EnergyTransition #Canada

OECD Environment Working Papers No. 245 "Bridging the Clean Investment Energy Gap: Cost of Capital in the Transition to Net-Zero Emissions" highlights the need for increased clean energy investments to meet global climate goals and the need of transition to a low-carbon economy, that requires a significant acceleration in clean energy investment across all regions in the globe, particularly in developing countries. Achieving net-zero greenhouse gas emissions in the energy sector by mid-century will require total global clean energy investment of USD 4.5 trillion by the early 2030s.This currently stands at an estimated USD 1.8 trillion globally. ✅Efforts to decarbonize the energy sector hinge on closing this major investment gap over the next six years. ✅Policymakers should recognize the high cost of capital as a critical obstacle and to implement policies that can mitigate this issue. ✅Hydrogen deployment is identified as a key component in global mitigation efforts, particularly in developing countries. ✅Business entities and governments must strive to utilize the hydrogen resources efficiently. ✅For the transition, there are several challenges faced by the developing countries, that includes institutional capacity issues and underdeveloped financial sectors. ✅These challenges are aggravated by energy subsidies that create uncertainty for investors regarding the long-term viability of clean energy projects. ✅Also, the disparity in funding capabilities between developed and developing countries could widen the energy gap. ✅Effective governance structures are crucial to reduce political and regulatory risks in clean energy sectors. ✅To tackle the high cost of capital, the policymakers should create enabling conditions for clean energy investment. ✅This will require tackling the barriers specific to developing countries and emerging technologies, ensuring that incentives are well-designed, targeted, and time-bound. 

Reposting Money Minutes episode 141 on Green Bonds:- Green bonds are financial instruments used to fund projects with clear environmental benefits, such as renewable energy, energy efficiency, and conservation projects. These bonds provide a means for investors to support sustainable initiatives while earning returns.