An international team of researchers has launched a detailed global analysis of 1,500 climate policy initiatives from 41 countries spanning six continents. This groundbreaking study, published in the journal Science, examines the impacts of a wide variety of climate policies enacted over the past two decades. The results present a stark truth: many policies have not succeeded in achieving the required emissions reductions. Only 63 examples of effective climate policies were found, each resulting in an average reduction of emissions by 19 percent. A notable feature of these effective policies is the incorporation of tax and price incentives in well-structured policy frameworks.
Much of the ongoing discourse about climate policy revolves around identifying which tools effectively cut emissions and which do not. Previous assessments have mostly concentrated on a narrow range of prominent policies, overlooking countless other measures. This new research, led by experts at the Potsdam Institute for Climate Impact Research (PIK) and the Mercator Research Institute on Global Commons and Climate Change (MCC) with contributions from the University of Oxford, the University of Victoria, and the Organisation for Economic Co-operation and Development (OECD), seeks to bridge this gap. A linked interactive platform, the “Climate Policy Explorer,” offers a thorough overview of the findings, analyses, and methodologies, accessible to everyone.
Lead author Nicolas Koch from PIK and MCC states, “We systematically analyzed policy measures that have not received much attention until now, yielding fresh perspectives on effective combinations of complementary policies. From our study, we derive best practices applicable to the building, electricity, industry, and transport sectors, accounting for both developed and often overlooked developing nations.” He adds, “Our findings reveal that simply increasing policies does not automatically lead to better results. Rather, the correct mix of measures is essential. For instance, subsidies or regulations alone cannot yield significant impacts; they need to be paired with price-based tools like carbon and energy taxes to result in meaningful emissions reductions.”
The research includes specific instances to highlight this insight. For example, the researchers indicate that acts like banning coal-fired power plants or combustion engine vehicles do not lead to significant emissions cuts when applied independently. Successful outcomes only emerge when these measures are paired with tax or price incentives, as illustrated by the UK’s approach to coal-fired electricity generation and Norway’s policies on vehicle emissions.
Detailed Examination of 1,500 Policy Measures and 63 Success Stories
The researchers scrutinized 1,500 policy interventions implemented between 1998 and 2022, encompassing a broad array of climate policy tools, from building energy codes to subsidies for eco-friendly products and carbon taxes. They utilized a new OECD database, the most extensive inventory of climate policies worldwide to date, along with a novel approach that combines machine learning techniques with established statistical analyses to evaluate the impact of these policies and identify those that lead to substantial emissions reductions.
According to lead author Annika Stechemesser from PIK, “Although it remains difficult to clearly separate the effects of individual policies within a combination, our 63 successful cases offer systematic insights into effective policy arrangements and illustrate how well-structured policies vary by sector and the development status of nations. This information is crucial for aiding policymakers and society in the shift toward climate neutrality.”
Climate Policy Explorer: A Comprehensive Resource
The interactive Climate Policy Explorer provides in-depth insights into various countries, sectors, and policy measures. For instance, in the industrial sector, China’s pilot emissions trading systems notably cut down emissions after several years, aided by reductions in fossil fuel subsidies and enhanced financing incentives for energy efficiency. In the electricity sector, the UK achieved significant emissions reductions via a minimum carbon price, renewable energy subsidies, and plans to phase out coal. The US showcases notable decreases in transportation-related emissions through a combination of tax incentives and subsidies for low-emission vehicles, as well as CO2 efficiency standards. Germany’s introduction of eco-tax reforms and truck tolls stands out as another successful strategy in transportation.
These results and much more can be explored interactively on the Climate Policy Explorer website: http://climate-policy-explorer.pik-potsdam.de/
