Policy Sessions

EAERE 2022 will include three high-level policy sessions, also streamed online. 

Policy Session 1 - Wednesday 29 June 2022 (14.00-15.45)

Border Carbon Adjustments: drivers or impediments for climate ambition?

Organised by the RFF-CMCC European Institute on Economics and the Environment (EIEE) and supported by the H2020-MSCA-RISE project GEMCLIME-2020

Countries are increasingly pursuing climate plans consistent with reaching climate neutrality but with different levels of carbon pricing and regulatory effort. Against this backdrop of heterogeneous mitigation incentives, Border Carbon Adjustments have been proposed to address competitiveness concerns, to deter emission leakage, and to encourage ambition, by ensuring that imports face the same explicit or implicit carbon price faced by domestic producers in countries with more ambitious climate policies. However, BCAs are institutionally complex, the evidence of carbon leakage is limited, and the implications for international cooperation and climate justice are not clear. The aim of this policy session is to assess the environmental and economic impact of border carbon adjustments. Panelists will discuss the potential role of BCAs to promote or deter climate ambition, and to encourage emission reductions effectively and fairly.

Panelists:

• Keigo Akimoto (Research Institute of Innovative Technology for the Earth)
• Francesco Bosello (Ca’ Foscari University of Venice; EIEE)
• Jos Delbeke (European University Institute)
• Carolyn Fischer (World Bank)
• Suzi Kerr (Environmental Defense Fund)
• Moderation: Massimo Tavoni (Politecnico di Milano; EIEE)

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Policy Session 2 - Thursday 30 June 2022 (14.00-15.45)

How to integrate environmental risks into central banks’ macroeconomic analysis and operations?

Organised by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS)

This session will focus on the rapidly growing interest that central banks have paid to climate change over the past few years. Such interest has raised many questions, including: which role can and should these institutions play with regard to climate change? Are the models developed in environmental and climate economics adapted to central banks’ priorities and operations? Are there specific methodologies (e.g. climate stress tests) and other environmental topics (e.g. biodiversity loss) that central bankers should also focus on? This session will provide insights into such questions from the perspective of a leading scholar and several central bankers.

Panelists:

• Ivan Faiella (Banca d’Italia)
• Lars Peter Hansen (University of Chicago)
• Laura Parisi (European Central Bank) 
• Mathilde Salin (Banque de France)
• Moderation: Emanuele Campiglio (University of Bologna)

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Policy Session 3 - Friday 1 July 2022 (14.00-15.45)

The proposed ETS for buildings and road transport in the EC’s Fit-for-55 package: getting prices right and ensuring equity 

Organised by the Potsdam Institute for Climate Impact Research (PIK) and the EAERE Policy Outreach Committee (POC)

As part of its Fit-for-55 package, the European Commission proposed the strengthening of emission trading and the creation of a separate ETS for buildings and road transport (BRT ETS), combined with a new Social Climate Fund to address its social impacts. While extending carbon pricing to sectors not yet covered is an obvious choice from an economic point of view, it is very contentious politically. Particularly important open questions are (a) how high and volatile the price in the new system will be, and related (b) what the distributional implications between households and Member States will be. The aim of this session is to shed light on these issues drawing on new economic analysis, and based on this to discuss the mechanisms proposed by the EC to stabilize prices and balance distributional impacts. To that end, the session will bring together (national and EU) policy makers and academics, including members of EAERE's Policy Outreach Committee (POC). More broadly, the session will also reflect on insights for policy outreach.