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This background paper by IESR and Germanwatch examines the climate financing landscape in Germany and Indonesia, focusing on climate mitigation in the energy sector. For Germany, this paper provides a comprehensive summary of its climate financing flows, structure, and global trends. With respect to Indonesia, it examines its climate mitigation targets and achievements, energy transition financing trends, and potential avenues for international climate finance support.

Climate change is increasingly evident through devastating impacts on lives and livelihoods, such as the destructive floods in Pakistan and Indonesia. The likelihood of global warming exceeding 1.5°C is over 50%, amplifying the severity of climate change effects and associated losses. This background paper discusses Loss and Damage in Indonesia, explaining the concept, its history within the UNFCCC, and providing an overview of financing options.

The EU Carbon Border Adjustment Mechanism (CBAM) is designed to ensure that European industrial companies remain competitive despite rising carbon prices. The CBAM thus enables ambitious European climate policy. However, it only covers imports into the EU: The question of whether and how the EU should take action to secure the competitiveness of exporting companies is still unresolved. This study offers answers to precisely this question.

The current international scenario is characterised by a complex web of global crises. This situation is having a particularly negative impact on the countries of the Global South, which are facing considerable financial constraints that are hindering the implementation of the 2030 Agenda. In this context, the French Government is organising the Summit for a New Global Financing Pact on 22-23 June 2023, which aims to forge a new pact between Global North and Global South countries.

The Digital Product Passport (DPP) is comparable to a comprehensive digital index card or a “digital CV” that the EU seeks to introduce for a wide range of products. It is intended to provide information needed, for example, for more efficient repair and recycling of products. We believe that the DPP has a significant potential to pave the way towards a more circular economy as it can address the information deficit along a circular value chain that often impeded circularity.

While Senegal has had major success in expanding renewable energy – the variable nature of wind and solar energy and the existing electricity system means that further grid integration is starting to become a growing challenge. Moving forward, policy decisions to be taken will have a large influence over the role of fossil fuels in Senegal for the foreseeable future. This paper aims to provide an overview of the opportunities to support Senegal in its transition to a decarbonised, renewable energy system, including a discussion of the challenges associated with this transition and the role that Germany can play in overcoming them.

To take advantage of the Just Energy Transition Partnership (JETP) and other financing opportunities, Indonesia must identify key requirements to create the right environment for cooperation without violating existing principles. Our background paper provides a brief overview of the state of the energy transition plan and financing in Indonesia.

In a series of dialogues with Indonesian civil society organisations (CSOs), Germanwatch and the Habibie Center explored how to integrate social justice aspects into the energy transition debate in Indonesia. This policy brief provides the context for how Indonesian CSOs view the JETP and how they relate to other key socio-economic issues.

Steering the steel industry towards a climate-neutral future is a major challenge. However, it is also a great opportunity: steel sector is responsible for approximately 30% of industrial greenhouse gas emissions in Germany – and, by extension, for 7% of national emissions. This means that a climate-neutral steel industry will allow us to take a major step closer to meeting the German and international climate targets. This policy paper highlights how we can get there and which technologies will play a key role.

This report provides an overview of the human rights protection system in Europe, focusing on climate change, before exploring the relationship between climate change impacts and human rights violations. It analyses
human rights-based climate litigation in Europe to date and focuses on specific cases brought or supported by European NGOs to illustrate the many ways in which human rights can be mobilised in court to advance climate action.