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Malte Küper / Thilo Schaefer / Lukas Hermwille / Dagmar Kiyar Gutachten 3. April 2024 Executive Summary: Climate Clubs as a Lightning Rod for Tensions in Trade and Industrial Competitiveness

The Paris Agreement has established a transformative paradigm. The climate-neutral transformation of industries will create winners and losers.

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Climate Clubs as a Lightning Rod for Tensions in Trade and Industrial Competitiveness
Malte Küper / Thilo Schaefer / Lukas Hermwille / Dagmar Kiyar Gutachten 3. April 2024

Executive Summary: Climate Clubs as a Lightning Rod for Tensions in Trade and Industrial Competitiveness

Gutachten beauftragt durch das Ministerium für Wirtschaft, Industrie, Klimaschutz und Energie des Landes NRW im Rahmen des Forschungsprojektes SCI4climate.NRW

Institut der deutschen Wirtschaft (IW) Institut der deutschen Wirtschaft (IW)

The Paris Agreement has established a transformative paradigm. The climate-neutral transformation of industries will create winners and losers.

Overall, however, there are tremendous opportunities. With the Inflation Reduction Act in the US, a race seems to have begun between major industrial powerhouses, the United States, the European Union, China and increasingly India, to seize these opportunities through ambitious industrial policies. At the same time, the COVID-induced supply chain crisis of 2021/22 and the Russian assault on Ukraine have contributed to a push to secure and relocate key strategic supply chains under the banner of industrial policy. Consequently, concerns have been raised that these two developments are leading to the introduction of protectionist measures that may ultimately harm global decarbonization.

While it is clear that we will need an innovation race to build green industries to support the global transformation, we need to ensure that this race takes place under fair conditions and in a spirit of international cooperation rather than cut-throat competition. In this transatlantic online workshop, we explored options for facilitating a fair distribution of opportunities. In particular, we looked at the role of climate clubs.

PDF herunterladen
Gutachten
Climate Clubs as a Lightning Rod for Tensions in Trade and Industrial Competitiveness
Malte Küper / Thilo Schaefer / Lukas Hermwille / Dagmar Kiyar Gutachten 3. April 2024

Executive Summary: Climate Clubs as a Lightning Rod for Tensions in Trade and Industrial Competitiveness

Gutachten beauftragt durch das Ministerium für Wirtschaft, Industrie, Klimaschutz und Energie des Landes NRW im Rahmen des Forschungsprojektes SCI4climate.NRW

Institut der deutschen Wirtschaft (IW) Institut der deutschen Wirtschaft (IW)

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