On Tuesday 1 July, think tank Bruegel published a position paper calling on the European Union to take the lead in a new international architecture for action on climate and nature, in collaboration with emerging economies.
The ‘Paris Report 2025’ study, carried out in partnership with the Centre for Economic Policy Research (CEPR), supports an approach that would enable the economic interests of Global North and Global South countries to converge.
With two-thirds of global greenhouse gas emissions now coming from developing countries, including China, the authors believe that the success of the climate transition and the restoration of biodiversity will also depend to a large extent on the commitments made by these countries.
To achieve this, they propose to move away from voluntary commitments and incorporate climate and nature protection objectives into the mechanisms of trade, finance and industrial policy.
Bruegel is therefore calling for an international coalition around a common carbon border adjustment mechanism (CBAM) linked to a differentiated carbon pricing system.
In addition, climate financing should be increasingly available, provided that verifiable decarbonisation obligations are put in place, especially in the electricity sector.
The think-tank is also calling for the development of industrial partnerships between the EU and countries with high renewable energy potential, in order to relocate the most energy-intensive stages of production.
Finally, carbon markets should be reimagined and a new type of asset created – ‘nature shares’ to finance the restoration of ecosystems on a large scale.
Given the geopolitical divisions coupled with the United States’ disengagement from climate action, which are “slowing the transition to a more sustainable economic model in line with the landmark Paris Climate Agreement of 2015”, the authors argue that coalitions of the willing remain a good solution, but one that will depend on the European Union adopting a strong position.
According to Bruegel, the EU benefits from a certain internal consensus, but also from its emissions trading system and its stated climate ambitions.
To read the report, go to https://aeur.eu/f/hqt (Original version in French by Nithya Paquiry)