Germanwatch-Blog

In March 2023 the IDB Group published its “Paris Alignment Implementation Approach: Principles, Methodology, and Technical Guidance” (PAIA). The document is based on the joint MDB framework and lays out how the IDB plans to adapt the framework to its own institutional procedures. This blog post provides an overview on what are promising, concerning and unclear elements in the IDB Group’s general Paris alignment methodology.

As part of the European Green Deal, the EU has committed to making European product markets more sustainable, with circularity playing a key role. To achieve this goal, the EU is planning to introduce a Digital Product Passport for a wide range of products. In the future, the Digital Product Pass could foster new market opportunities for business models that strengthen the circular economy. To do so, it must be designed in such a way that it is particularly empowering for actors in the fields of product life cycle extension.

Following the release of their ‘Instrument Methods’ for Paris alignment, the World Bank Group published accompanying sector notes for Energy and Extractives; Agriculture and Food; Transport; Environment, Natural Resources and Blue Economy; Water; as well as Urban, Resilience, Disaster Risk Management, and Land. The notes detail the approach to assess whether different types of projects in these sectors are aligned with the Paris Agreement. The World Bank Group will update the notes, and will publish six more for additional sectors. In this blog we look at whether the approaches in the notes are sufficient to avoid financial flows that conflict with the Paris Agreement.

There are several metrics and possibilities to measure the performance of climate policies and actions, which differ in methodology and indicator choice.
Our Climate Change Performance Index (CCPI) measures the climate performance of 59 countries (and the EU) that are collectively responsible for over 90% of global emissions. All major economies and many emerging economies are included.
The CCPI is based on criteria including the country’s emissions levels, energy use, and use of renewable energy, as well as its climate policies (find more about our methodology here). Other indexes place their focus in different areas and this post will examine those, as well, giving credit where due, because all the indexes serve an important role.
This post examines the importance of scientific climate performance indexes, and how you can understand them.

Year after year, the CCPI finds economically developed countries from the Global North, including many EU countries, contributed disproportionally to global warming. Factors such as high greenhouse gas (GHG) emissions, lagging climate policy, and high energy use are responsible for a low rank in the CCPI. However, which are the worst polluters, and why? The CCPI can identify them in several easy-to-understand ways. It shows their poor climate performance and opportunities for them to improve on it and take effective climate action.

The World Bank Group (WBG) has published the first set of documents beginning to detail how they will align their investments with the Paris Agreement – the so-called “Paris Alignment Methodology”. The publication of these methodologies is a long overdue first step to deliver on the commitment to align the WBG operations with the goals of the Paris Agreement. They will need to be strengthened and clarified to fully align the WBG investments with the Paris Agreement.

On Friday, 10 March 2023, the EU’s Foreign Affairs Council (FAC) adopted its conclusions on climate and energy diplomacy for this year, entitled: ‘Bolstering EU climate and energy diplomacy in a critical decade’. In this blog post, we present the key priorities to which the Council agreed and highlight the areas where the EU needs to provide more clarity and increase its ambition.

Indonesia's Just Energy Transition Partnership (JETP) is one of the outcomes of the G20 Summit that Indonesia hosted in 2022. The partnership is an agreement between Indonesia and the countries of the International Partners Group (IPG). It aims to mobilise finance for Indonesia to decarbonise and phase out the construction and operation of coal-fired power plants. The Indonesia Research Institute for Decarbonisation (IRID) and Germanwatch hosted a focus group discussion with CSOs including relevant research institutions on 18 January 2023 in Jakarta. The discussion was held to obtain feedback and input from CSOs working on topics related to the JETP.

Fossil fuel subsidies have long been a subject of discussion for the G20. As one of the G20 countries, Indonesia needs to prepare for the removal and redirection of fossil fuel subsidies without creating long-term negative impacts, especially in socio-economic terms. The Indonesia Research Institute for Decarbonisation (IRID) and Germanwatch confirm the need for G20 countries to reduce and shift fossil fuel subsidies. As this requires the readiness of G20 developing countries, on 19 January 2023, IRID and Germanwatch hosted a group discussion focused on Indonesia.

In 2022, Indonesia had the opportunity to host the annual G20 Summit, where the energy transition played a major role. The summit produced two key documents on energy, namely the Bali Roadmap and the Bali Compact. Both documents are expected to serve as a reference for G20 countries to achieve a just energy transition, even after Indonesia’s G20 presidency. The Indonesia Research Institute for Decarbonization (IRID) and Germanwatch acknowledge that this is important in order to avoid that dialogues at the G20 Summit start from scratch. For this reason, a focus group discussion took place in Jakarta on 25 January 2023. The discussion was limited to invitees.