The Institute is a participant in the European Commission supported research project LIMITS: Low climate IMpact scenarios and the Implications of required Tight emission control Strategies
The Institute is focusing on two parts of the project:
- Institutions for supporting major developing countries in adapting to a low carbon world
This task will analyse the institutions and potential governance of the financial and knowledge transfers from developed to developing countries to assist in building a low carbon energy infrastructure and to adapt to the residual climate change. The possible institutional frameworks for managing and allocating the finance to the major developing economies will be identified and discussed. The possibility of using the instrument of carbon permits trading as a way either to raise funding or directly transfer resources will be evaluated vis-à-vis other policy options. The institutional management of these funds, for example through multilateral development banks, national development institutions, etc. will be evaluated. The example of the high-level Advisory Group on Climate Change Financing will be used to infer insights about the longer-term needs for climate finance.
- Implications of climate mitigation for economic development
This task will analyse the links between climate change policies and economic growth, especially in developing countries. The macro-economic consequences of a comprehensive commitment to achieve 2°C will be evaluated, especially with respect to the impacts of radically new energy infrastructure. The role of innovation promoted by a climate policy will also be assessed with regards to its ability to foster growth and at the same time allow the climate goal to be met in an economically sound way. The link between adaptation to climate change and economic growth will also be investigated.
Bowen, A., Campiglio, E., Tavoni, M., 2014. A macroeconomic perspective on climate change mitigation: meeting the financing challenge. Climate Change Economics, 5 (1), [online] Available at: http://www.worldscientific.com/doi/pdf/10.1142/S2010007814400053
Find out more about the LIMITs project.