Date: July 2020

Clubs, R&D, and Climate Finance: Incentives for Ambitious GHG Emission Reductions


Carlo Carraro (University of Venice, Fondazione Eni Enrico Mattei)

Editor: Carlo Carraro


Climate clubs, namely subgroups of countries implementing more ambitious  and effective climate policies than others, may be the only practical approach  to address the lack of incentives to reduce GHG emissions on the part of  most, if not all, countries. In  climate  clubs,  incentives  to  undertake  ambitious  GHG  emission   reduction efforts may come from adopting R&D and financial policies that  provide benefits exclusively to club members. R&D and financial policies are beneficial because they provide innovation  to  reduce  the  costs  of  a  unit  of  abated  carbon  and  financial  or  insurance   schemes to reduce the costs of investing in mitigation. These cost reductions can be designed to favor club members only. Unlike  trade-related  policies  intended  to  favor  club  members,  R&D  and   climate-finance  policies  do  not  have  negative  “side  effects”  for  member   countries. Indeed, they have positive co-benefits in addition to the primary  environmental  benefits—a  “double  dividend”  for  club  members,  and  a  single dividend (GHG emission reduction) for the world.

Download file
Download PDF file
Clubs, R&D, and Climate Finance: Incentives for Ambitious GHG Emission Reductions

FEEM Newsletter & Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter & Update. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree