Climate club
The Climate Club is an international initiative aimed at promoting global cooperation in reducing greenhouse gas emissions and accelerating decarbonization, particularly in high-emitting industries and developing economies. Launched in 2022 by the G7, the Climate Club focuses on facilitating collaboration between countries, industries, and other stakeholders to achieve the goals outlined in the Paris Agreement and limit global temperature rise to 1.5°C.
History
[edit]A climate club is a coalition of the willing among countries that wish to adopt more stringent climate mitigation policies. Sometimes the term is used loosely to refer to any such international climate alliance. However, the concept of a climate club has most famously been promoted in a stricter sense by William Nordhaus, winner of the 2018 Nobel Memorial Prize in Economics.[1][2] In his conceptualization, the climate club introduces carbon pricing among the club's member states and levies a fee on all imports of goods from countries that are outside the club and have not introduced similar carbon pricing. This is expected to encourage more countries to join the club and introduce carbon pricing.[3]
The G7's version of the Climate Club differs slightly, focusing on partnerships and cooperative approaches rather than punitive measures. The idea of a Climate Club originated from efforts to bridge the gap between developed and developing nations in climate action. Spearheaded by the G7, particularly under the leadership of Germany's Chancellor Olaf Scholz, the initiative was announced in December 2022 during the G7 summit.[4][5] It is designed to foster international cooperation in decarbonization while avoiding protectionist trade policies and carbon leakage (the relocation of carbon-intensive industries to countries with looser regulations).[6] Furthermore, it is invisigaged that trading partners support each other in the transformation of the industrial sector, in the production of hydrogen, ammonia, crude petrol, methanol and synthetic fuels.[7]
Structure and Membership
[edit]The Climate Club is a voluntary coalition of countries and partners committed to advancing industrial decarbonization and strengthening climate cooperation. In 2022, the founding members were: Germany, France, Italy, Japan, Canada, United Kingdom, the United States and the European Union.[8] The climate club is open to other countries, and an invitation has been sent to the China, as well as other emerging economies and developing countries.[9]
As of October 2024, there are 42 member states. Germany and Chile are co-chairs.[7] The interim secretariat is hosted by the Organisation for Economic Cooperation and Development, in tandem with the International Energy Agency.
| Countries |
|---|
 Chile (co-chair)
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 Germany (co-chair)
|
 Argentina
|
 Australia
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 Austria
|
 Bangladesh
|
 Belgium
|
 Canada
|
 Colombia
|
 Costa Rica
|
 Denmark
|
 Egypt
|
 European Union
|
 Finland
|
 France
|
 Indonesia
|
 Italy
|
 Ireland
|
 Japan
|
 Kazakhstan
|
 Kenya
|
 Korea
|
 Luxembourg
|
 Mozambique
|
 Morocco
|
 Netherlands
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 New Zealand
|
 Norway
|
 Peru
|
 Poland
|
 Singapore
|
 Slovakia
|
 Spain
|
 Sweden
|
 Switzerland
|
 Thailand
|
 Turkey
|
 Ukraine
|
 United Kingdom
|
 United States
|
 Uruguay
|
 Vanuatu
|
Participating countries commit to enhancing climate action through domestic policies and working with international partners to meet shared decarbonization goals. The Club also engages key stakeholders from private industry, non-governmental organizations (NGOs), and multilateral institutions such as the International Energy Agency (IEA) and the United Nations Framework Convention on Climate Change (UNFCCC) and United Nations Industrial Development Organization (UNIDO).
Global Matchmaking Platform
[edit]The Global Matchmaking Platform is expected to be launched by the United Nations Industrial Development Organization in collaboration with the Climate Club at COP29 in Baku. This unique initiative is dedicated to accelerating the decarbonization of heavy-emitting industrial sectors in emerging and developing economies. As the first platform specifically focused on connecting countries with global technical and financial assistance, it provides support to enable industrial sectors to transition to low-emission and zero-emission practices. By addressing country-specific needs, the platform matches countries with a network of delivery partners, facilitating the transfer of innovative technologies, investment opportunities, and policy guidance to drive the decarbonization of energy-intensive industries like steel and cement.
Criticism
[edit]Concept
[edit]The idea of a climate club has been criticized by countries that fear the imposition of fees on their exports as well as by researchers who are skeptical of carbon pricing in general.[10] Others have argued that some of the supposed losers, such as China and India, will actually gain from a climate club and the resulting introduction of carbon pricing.
The EU's Carbon Border Adjustment Mechanism (CBAM) has been labeled as the possible beginning of a climate club.[11][12][13] Others see CBAM as too narrow to function as a climate club.[14]
Climate Club
[edit]When presenting the proposal, Scholz's proposal has been criticized as vague.[15] The journalist Petra Pinzler criticized the Climate Club as an expression of the "Janus-faced behavior" of the Scholz cabinet, because Germany is simultaneously hindering ambitious progress and, as a result of the Russian war of aggression against Ukraine, is interested in developing new gas sources worldwide. In addition, the Climate Club lacks member states (as of May 2023), which is why it is more like an 'association for the promotion of green industrial transformation'.[16]
References
[edit]- ^ Nordhaus, William (2015-04-01). "Climate Clubs: Overcoming Free-riding in International Climate Policy". American Economic Review. 105 (4): 1339–1370. doi:10.1257/aer.15000001. ISSN 0002-8282.
- ^ Chen, Cuicui; Zeckhauser, Richard (2018-02-01). "Collective action in an asymmetric world". Journal of Public Economics. 158: 103–112. doi:10.1016/j.jpubeco.2017.12.009. ISSN 0047-2727.
- ^ Hagen, Achim; Eisenack, Klaus (August 2019). "Climate Clubs Versus Single Coalitions: The Ambition of International Environmental Agreements". Climate Change Economics. 10 (3): 1950011. doi:10.1142/S2010007819500118. ISSN 2010-0078. S2CID 191735215.
- ^ "Bundesregierung will internationalen Klimaclub gründen". FinanzNachrichten.de (in German). Retrieved 2024-10-24.
- ^ "G7 to set up Climate Club | G7 Germany 2022". G7 Germany 2022: Germany takes over G7 Presidency. 2022-06-28. Retrieved 2024-10-24.
- ^ "Scholz wants G7 'climate club' for energy crisis – DW – 06/25/2022". dw.com. Retrieved 2024-10-24.
- ^ a b "28th Climate Change Conference in Dubai | Federal Government". Website of the Federal Government | Bundesregierung. 2023-12-13. Retrieved 2024-10-24.
- ^ G7. "Communiqué of the Heads of State and Government of the G7, 2022" (PDF).
{{cite web}}: CS1 maint: numeric names: authors list (link) - ^ European Parliament. "G7 climate club - at a glance" (PDF).
- ^ Buylova, Alexandra; Fridahl, Mathias; Nasiritousi, Naghmeh; Overland, Indra; Reischl, Gunilla (2022-07-19). "Climate action in the making: business and civil society views on the world's first carbon border levy". Climate Action. 1 (1): 17. Bibcode:2022CliAc...1...17B. doi:10.1007/s44168-022-00015-4. ISSN 2731-3263. S2CID 256392760.
- ^ Overland, Indra; Huda, Mirza Sadaqat (September 2022). "Climate clubs and carbon border adjustments: a review". Environmental Research Letters. 17 (9): 093005. Bibcode:2022ERL....17i3005O. doi:10.1088/1748-9326/ac8da8. hdl:11250/3056333. ISSN 1748-9326. S2CID 252179609.
- ^ Szulecki, Kacper; Overland, Indra; Smith, Ida Dokk (2022). "The European Union's CBAM as a de facto Climate Club: The Governance Challenges". Frontiers in Climate. 4. doi:10.3389/fclim.2022.942583. hdl:11250/3024350. ISSN 2624-9553.
- ^ Al Khourdajie, Alaa; Finus, Michael (2020-05-01). "Measures to enhance the effectiveness of international climate agreements: The case of border carbon adjustments". European Economic Review. 124: 103405. doi:10.1016/j.euroecorev.2020.103405. hdl:10044/1/77958. ISSN 0014-2921. S2CID 169259972.
- ^ Tarr, David G.; Kuznetsov, Dmitrii E.; Overland, Indra; Vakulchuk, Roman (2023-06-01). "Why carbon border adjustment mechanisms will not save the planet but a climate club and subsidies for transformative green technologies may". Energy Economics. 122: 106695. doi:10.1016/j.eneco.2023.106695. ISSN 0140-9883.
- ^ Kurmayer, Nikolaus J. (2022-12-13). "Green industry: G7 sets out terms for global 'climate club'". www.euractiv.com. Retrieved 2023-12-10.
- ^ deutschlandfunk.de (2023-05-06). "Deutsche Klimapolitik: bigott und janusköpfig". Deutschlandfunk (in German). Retrieved 2024-10-24.