The European Investment Bank (EIB) and the School of Transnational Governance (STG) have established the EIB Chair on Climate Change Policy and International Carbon Markets (“EIB Climate Chair”). In the next 5 years, the EIB Climate Chair has the ambition to develop into a world-class centre of research and teaching on climate change policy. This covers questions related to energy, industry, mobility, trade, finance, agriculture, forestry, and puts particular attention on the role carbon markets can play.
The EIB Climate Chair serves as vector for the transmission of best climate policy practices across the world. Given the Paris Agreement’s voluntarist approach, international collaboration will be at the heart of efforts to maximise effect on the one hand and implement a just transition on the other.
Professor Jos Delbeke, PhD in Economics (KU Leuven, Belgium) and former founding Director-General for Climate Action at the European Commission from 2010 until 2018, who is currently responsible for coordinating teaching, training and research activities on climate policy at the STG, was appointed as the EIB Climate Chair in September 2020.
The mission of the EIB Climate Chair at the STG is to become a European and global hub of excellence in knowledge-exchange, research and education on climate change policies and governance.
The STG is developing a programme focusing on effective climate policy design. It will focus on concrete policies and is built around the following 4 pillars:
- Carbon-pricing policies: economists and most businesses recommend using economic instruments to internalise negative externalities. Many favour market-based approaches to incentivise emissions reductions as part of a policy mix, either through taxation or through emissions trading, or through offsetting emissions.
- Sustainable Finance deals with the question of how to redirect financial flows towards climate change and environmental sustainability objectives, on the one hand, while ensuring the long-term resilience of the financial sector on the other.
- Technological Innovation: technology is needed to significantly reduce emissions from all sectors including from energy intensive industry. Bringing innovative technologies to the market is about much more than R&D activities. It is also about managing political, economic, technological, and financial risk when creating markets for cleaner products and production processes.
- Energy is a key sector: the combination of low-carbon energy sources with increased electrification is one of the backbones of any climate policy. The EU has been at the forefront of energy market reform and has many good, as well as not so good, examples. Carbon pricing requires a functioning energy market to unleash competition between various low-carbon solutions.
- Cost-effectiveness: keeping compliance costs down is important both in view of minimising societal and economic disruption but also with a view to maximising emissions reductions.
- Distributional issues: the low-carbon transition will have important distributive effects either on income or on shifts in the labour market. These may have a pronounced regional character (e.g., in regions dependent on coal, cars or carbon-intensive industrial clusters). Ensuring a “Just Transition” is becoming a major political issue inside the EU and also worldwide