Climate change mitigation now focus on production, where upward drivers of GHG emissions come from consumption. Demand side oriented policies hence can complement domestic GHG reduction efforts. The core aim of this project is to
1. Stimulate innovative demand side oriented climate policies by improved shared insight in consumption emissions.
2. Realize a more effective policy mix for achieving the objectives of the EU policy packages (e.g. Low carbon economy roadmap)
There are significant questions about consumption based carbon accounting (CBCA) systems (Gap 1: CBCA reliability) and demand side policies (effectiveness (Gap 2) and societal impacts (Gap 3)). Stakeholders hence can easily question their added value (Gap 4). Our project will overcome this problem via the following responses
1. (WP4). Comparing the major CBCA databases (EXIOBASE, WIOD, GTAP, EORA), identifying key factors causing uncertainty, assessing upward drivers, resulting in CBCA that can be implemented by formal players in the climate community (UNFCCC, IEA, others)
2. (WP5 and WP6). Providing an in-depth analysis of the feasibilities of consumption based and trade related policies, assessing their effectiveness, and compatibility with e.g. WTO rules (WP5). Specific case studies will zoom in on practical improvement options and implications for specific sectors (WP6)
3. (WP7). Improving some of the most ambitious global economic models, E3ME/E3MG, EXIOMOD and IPTS’s FIDELIO relation to point 1 so that they capture side-effects and rebound effects, impacts on trade, investment etc. of consumption based policies
4. (WP8 and WP2). Creating an implementation roadmap for consumption based accounts and policies (WP8) endorsed by a critical mass of stakeholders via policy-science brokerage activities (WP2)
The project is complemented by Management (WP1) and an inception phase (WP3) and executed by a group of the most renowned institutes in CBCA, economic modeling and climate policy.
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