Developing green: A case for the Brazilian manufacturing industry

The recent IPCC Special Report on global warming of 1.5 °C emphasizes that rapid action to reduce greenhouse gas (GHG) emissions is vital to achieving the climate mitigation goals of the Paris Agreement. The most-needed substantial upscaling of investments in GHG mitigation options in all sectors, and particularly in manufacturing sectors, can be an opportunity for a green economic development leap in developing countries. Here, we use the Brazilian manufacturing sectors as an example to explore a transformation of its economy while contributing to the Paris targets. Projections of Brazil's economic futures with and without a portfolio of fiscal policies to induce low carbon investments are produced up to 2030 (end year of Brazil's Nationally Determined Contribution-NDC), by employing the large-scale macro econometric Energy-Environment-Economy Model, E3ME. Our findings highlight that the correct mix of green stimulus can help modernize and decarbonize the Brazilian manufacturing sectors and allow the country's economy to grow faster (by up to 0.42% compared to baseline) while its carbon dioxide (CO2) emissions decline (by up to 14.5% in relation to baseline). Investment levels increase, thereby strengthening exports' competitiveness and alleviating external constraints to long-term economic growth in net terms

Social impacts of climate change mitigation policies and their implications for inequality

The Paris Agreement and the Sustainable Development Goals (SDGs) set ambitious targets for environmental, economic and social progress. Climate change mitigation policies play a central role in this process. To maximize the benefits and minimize the negative effects of climate change mitigation policies, policymakers need to be aware of the indirect and often complex social and inequality impacts that these policies may have and the pathways through which these impacts emerge. Better understanding of the distributional and inequality impacts is important to avoid negative social and distributional outcomes as countries ratchet up their climate policy ambition in the post-Paris context. This paper synthesizes evidence from the existing literature on social co-impacts of climate change mitigation policy and their implications for inequality. The analysis shows that most policies are linked to both co-benefits and adverse side-effects, and can compound or lessen inequalities depending on contextual factors, policy design and policy implementation. The risk of negative outcomes is greater in contexts characterized by high levels of poverty, corruption and economic and social inequalities, and where limited action is taken to identify and mitigate potentially adverse side-effects

Trends in natural capital, ecosystem services and economic development in Dorset

A Valuing Nature Research Project Report. How does environmental degradation affect economic development and employment? This report presents the results of research that addressed this question. The research was conducted by the project Tipping Points in Lowland Agricultural Landscapes (TPAL), which forms part of the Valuing Nature Programme. The research focused on the county of Dorset, situated on the south coast of England. Land use in Dorset is dominated by agriculture, yet the county is also of high value for wildlife, and has a burgeoning green economy. It therefore provides a valuable example of the potential synergies and conflicts between wildlife conservation, economic growth and development

Global carbon dioxide emissions scenarios for aviation derived from IPCC storylines: A meta-analysis

This research summarises the aviation CO2 emissions studies that use the Intergovernmental Panel on Climate Change IS92 and Special Report on Emissions Scenarios storylines as GDP growth assumptions to estimate future global carbon dioxide emissions from the aviation sector. The inter-quartile mean and the first and third quartiles are calculated to enable researches studying climate change policies for aviation to use an average global baseline scenario with lower and upper boundaries. We also perform a simple meta-analysis to analyse the assumptions used to derive the baseline scenario and conclude, as expected, that change in revenue-tonne-kilometres and fuel-efficiency are the main drivers behind the baseline scenarios

Closing the green finance gap – a systems perspective

Meeting its climate policy objectives requires the UK to rapidly decarbonise its energy sector. This demands high levels of investments into low carbon energy infrastructure, which are currently not undertaken at required scale, leading to a green finance gap. We explore (1) key investment barriers, (2) a theoretical framework for investigation and (3) possible solutions, drawing on a review of academic literature and policy reports, and interviews conducted with financial investors and experts. Our study confirms that policy uncertainty and short-termism in the financial system are the two main investment barriers. Our results show that identified barriers form a complex system characterised by path-dependency, lock-in and non-linearity. We recommend the adoption of systems theory as an analytical framework to inform the related policy debate and propose the expansion or development of sustainable investment vehicles as a useful near-term solution while preparing a long-term policy intervention based on a systems perspective

Emergence of New Economics Energy Transition Models: A Review

Well-known academic and non-academic institutions call for a new approach in economics able to capture features of modern economies including, but not limited to, complexity, non-equilibrium and uncertainty. In this paper, we provide a systematic review of ecological macroeconomic models that are suitable for the investigation of low-carbon energy transitions and assess them based on the features considered desirable for a new approach in economics. We draw two main conclusions: firstly, the knowledge base and structure of these existing ecological macroeconomic models are relevant, alongside other types of models, for the creation of a new approach in economics. Secondly, the reviewed models are policy relevant, especially in the context of the complexity and urgency of rapid energy transitions, where increasingly policymakers require economic models able to capture real-world characteristics. However, further improvements are needed to these models and future research should focus on i) assuring comparability of models' results and their policy insights, ii) incorporation of the relationships between macroeconomics, finance and sustainability and iii) the institutionalization of a new approach in economics

Ozone and PM related health co-benefits of climate change policies in Mexico

This paper reports the results of extending a previous analysis of reductions in ozone exposures resulting from greenhouse gas reduction policies in Mexico, to the case of estimating reductions in premature death and risks of non-fatal diseases following reductions in both ozone and particulate matter exposures. The results show that a policy of greenhouse gas reduction in the Mexican economy by 77% relative to a baseline growth scenario results in reduced mortality loss of almost 3000 lives per year. The benefit in terms of non-fatal disease is 417,000 cases reduced per year, at a savings of $0.6B per year in cost of illness. These reductions in human health risk, stemming from co-benefits of climate change policies, are significant in light of targets of risk reduction typically used in environmental regulatory decisions, and would be considered important drivers of policy choice if climate policy were harmonised with other areas of risk-based environmental policy