The Climate Friendly Materials (CFM) Platform, which brings together leading researchers and policy advisors in Spain, France, Netherlands, Belgium, Sweden, Germany, Poland and Hungary convened by the research network Climate Strategies, presents a concrete package of policy instruments that creates economic incentives for private actors to pursue transformative investments aligned with Europe’s climate-neutral objectives for 2050 while keeping them in business. The underlying report offers explanation as to why such a package allows heavy industry to shift to climate-friendly materials while European industrial competitiveness in a global market is supported, through stimulation of global emission reductions and prevention of relocation of carbon-intensive production to less stringent regions.

Oliver Sartor (IDDRI) was one of the 7 country advisors who contributed to this report convened by Climate Strategies with 8 European think tanks

Key Messages

The policy package presented by the CFM Platform combines and strengthens existing policy instruments with additional options and deepens integration across instruments. It combines five elements :

  • A Climate Contribution as part of the EU Emissions Trading System is a charge on carbon-intensive materials sold for final use in Europe without differentiation by production process or location.
  • Project-based Carbon Contracts for Difference (CCfDs) create lead markets for innovative low-carbon production processes and materials at national and European scale.
  • Contracts for Difference for Renewables (CfDs) will hedge renewable energy investors against regulatory risks such as changes in the power market design and address market failures that limit the role of private long-term contracts for mitigating electricity price risks.
  • Green Public Procurement (GPP) allows local, regional and national authorities to use their spending power when investing in infrastructure or buildings to create lead markets for low-carbon practices and design.
  • Product Carbon Requirements effectively ban products comprising materials produced with carbon-intensive processes from being sold in Europe.

Read the report online

  • Oliver Sartor