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1. Making the best of the new EU Social Climate Fund

Author:
Eva Jüngling, Giovanni Sgaravatti, Simone Tagliapietra, and Georg Zachmann
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The slow pace of decarbonisation of buildings and transportation threatens the European Union’s goal of reducing emissions by 55 percent by 2030 and achieving net zero by 2050. To address this, a new emissions trading system, ETS2, is being introduced to put a carbon price on fuels used in buildings and road transport. However, the resulting cost increases risk a disproportionate impact on vulnerable households and small and medium sized enterprises. The European Union has created the Social Climate Fund (SCF) to address these distributional challenges. This instrument redistributes a portion of auction revenues generated by the ETS2 among EU countries, in order to protect the most vulnerable. A much larger share of ETS2 revenues will flow directly to national governments, offering significant opportunities for social measures and investments in the green transition. The use of those revenues will dictate how successful EU countries are in managing the transition and protecting households, particularly in higher-income member states, which will receive relatively smaller shares of SCF funding. ETS2 is an essential part of the EU climate policy toolkit. Governments should employ good practices, as identified by the European Commission, to tackle emissions from buildings and transport and to gradually phase out income support, in line with the achievement of investment targets and milestones. Higher-income EU countries should develop additional targeted financing levers to protect the vulnerable and to introduce extra enablers to encourage private investment. Proper sequencing, outreach and communication will be essential to ensure the uptake of measures and public support for policy instruments. Cross-country learning should be leveraged, including through the creation of a European policy registry that will help countries compare their approaches and potentially amend their SCF spending plans on the basis of learning from policies that been successful elsewhere.
Topic:
Climate Change, European Union, Welfare, Transportation, Carbon Emissions, Decarbonization, and Protection
Political Geography:
Europe

2. Infrastructures, energy and digitalisation: pillars for the sustainable development of transport in the Western Mediterranean

Author:
Mark Furness, Jordi Selfa, Sassi Hammami, Pier Paolo Raimondi, and Michel Noussan
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
With the Russian aggression on Ukraine and the war in Gaza being prolonged over time the Mediterranean region at large is in total turmoil. The Policy Study entitled “Infrastructures, energy and digitalisation, pillars for the sustainable development of transport in the Western Mediterranean” aims at contributing with shared reflections and formulation of policy proposals to the challenges and strategies that the region faces in the field of promoting sustainable development in the transport sector. To this end, the Policy Study delves into this topic from these three cross-cutting dimensions in the Western Mediterranean: infrastructures, energy and environment, and digitalisation. The European Institute of the Mediterranean (IEMed) and the Centre for Transportation Studies for the Western Mediterranean (CETMO) have taken on this stimulating task by continuing for a third year the preparation of a Policy Study that involves various authors who are experts in the field, while also unveiling some recommendations of public policy addressed to the Presidency of the Group of Transport Ministers for the Western Mediterranean (GTMO 5+5). Indeed, this publication released as a Policy Study comes within the framework of the Med Think 5+5 network of Western Mediterranean think tanks, a multidisciplinary platform of exchange associated with the 5+5 Dialogue, which brings together policymakers, practitioners and academics from the Western Mediterranean area. Considering transport and logistics as one of the most relevant sectors to foster socio-economic development and regional integration in the Western Mediterranean, the Med Think 5+5 network has been committed to promoting debate and knowledge-sharing on the issue, building upon support and expertise of the CETMO as Technical Secretariat of the Group of Transport Ministers for the Western Mediterranean (GTMO 5+5). As a matter of fact, the Med Think 5+5 convened seminars (2018, 2021) dedicated to the analysis of trends in the Western Mediterranean transport and logistics sectors, organised back-to-back with the GTMO 5+5. In this context, this Policy Study, which is part of the work programme of GTMO 5+5 under the Maltese presidency, aims at giving response to the challenges posed by climate change in the region and how the transport sector can counter it and adapt to it through digitalisation, the transformation and connection of transport with infrastructures and energy.
Topic:
Infrastructure, European Union, Transportation, Energy, and Sustainable Development
Political Geography:
China, Europe, North Africa, and Mediterranean

3. Contribution of Finance and Transport Indicators on Carbon Emissions: Evidence from Eurasian Countries

Author:
Kenan Ilarslan and Tuğrul Bayat
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Carbon emission is one of the most significant causes of environmental degradation, global warming, and extraordinary meteorological events. It has reached a level that threatens the future of countries and human beings. To combat carbon emission, it is necessary to know the causes for developing policies. Environmental quality is a fundamental aspect of sustainable development in economies worldwide. In this context, Eurasian geography has always been an important region in the history of the world with its location, underground, and surface resources. Today, the region makes its strategic importance even more evident. The communist USSR ruled Eurasian countries, which served as a buffer between the Western world and China for many years. These countries, which gained their independence in the 1990s, have not yet fully captured the values of the modern world, such as democracy and a free market economy. This study focuses on Eurasian countries. This study aimed to determine the factors affecting carbon emissions. Foreign direct investment and transportation contribute significantly to carbon emission, which reduces environmental quality. Therefore, in this study, we investigated whether rail and road passenger transport and foreign direct investment affect carbon emission in Eurasian countries. The concurrent panel quantile regression method was used to estimate this relationship between 1992 and 2020. The results revealed that rail and road passenger transport and foreign direct investment increase emissions. Additionally, no clear result could be obtained regarding the effect of the GDP per capita variable. To support these findings, analyses were performed using the robust quantile regression method, and strong empirical evidence was obtained, particularly for the impacts of foreign direct investment and rail passenger transport on emissions.
Topic:
Economics, Foreign Direct Investment, Transportation, Carbon Emissions, and Quantile Regression
Political Geography:
Eurasia

4. Determinants of Air Transport in the BRICS-T Countries: Findings from Panel Data Analysis

Author:
Şevket Pazarcı, Emre Kılıç, Asım Kar, and Sıla Kale
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
This paper examines the factors that determine air transport in the BRICS countries, which account for approximately 42% of the world’s population and occupy an important position among developing countries in terms of economic size. In more detail, in this study, air transport examines two different models, passenger and freight transport. The research is carried out for the period 1996-2020. Panel data methods were used as analysis methods. According to the results of the analysis, both air passenger transport and air freight transport act together with their macroeconomic and socioeconomic determinants in the long term. Income is positive and significant in the air passenger transportation model, while income is insignificant in the freight transportation model. In addition, inflation, exchange rate, industrialisation and urbanisation on a country basis are important determinants of both air passenger transport and air freight transport for BRICS-T.
Topic:
Economics, Transportation, Data, and BRICS
Political Geography:
Global Focus

5. Italy’s National Energy and Climate Plan and Road Transport: An Appraisal

Author:
Pier Paolo Raimondi and Michel Noussan
Publication Date:
07-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The Italian government has recently submitted the final version of its National Energy and Climate Plan (NECP),[1] which outlines Italian measures to achieve its national climate targets by 2030 in line with the objectives set by the European Union. To do so, Italy has put forward targets, strategies and measures also for the decarbonisation of transport, which remains among the hardest to decarbonise. While Italy’s greenhouse gas emissions due to energy consumption have decreased by 21 per cent from 1990 to 2022, those related to transport have increased by 8 per cent in the same period. Moreover, the transport sector accounted for 27 per cent of national emissions in 2022, with road transport alone accounting for 92 per cent of those emissions.[2] Against this backdrop, it is important to assess the main targets and political implications of Italy’s NECP related to both private cars and heavy-duty road transport (buses and trucks) in order to identify potential gaps and opportunities to reach Italy’s climate targets.
Topic:
Climate Change, Transportation, and Energy
Political Geography:
Europe and Italy

6. Prospects for the Normalisation of Turkish-Armenian Relations Improving

Author:
Aleksandra Maria Spancerska and Wojciech Wojtasiewicz
Publication Date:
08-2024
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
The fifth round of negotiations between Türkiye and Armenia, held on 30 July, offers hope for an acceleration of the normalisation of their relations, including the opening of borders between the countries. However, the success of the negotiations depends on the settlement of Armenia’s relations with Azerbaijan. Such an agreement would unblock transport routes in the South Caucasus region, as well as increase the presence of the EU and Poland in the region.
Topic:
Bilateral Relations, Borders, Negotiation, Transportation, Normalization, and Nagorno-Karabakh Conflict
Political Geography:
Europe, Turkey, Poland, Armenia, Azerbaijan, and South Caucasus

7. Decarbonization alternatives for the maritime transport sector in Brazil: 2024

Author:
CEBRI
Publication Date:
12-2024
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
In the current context, where mitigating greenhouse gas emissions is a global priority, the maritime sector faces a significant challenge: meeting the growing demand for energy due to the increase in the transport of goods and people while working to reduce its carbon emissions. The central question is how to address these challenges in a way that is both technically feasible and economically efficient. This report, available in Portuguese, provides an update on the document “Decarbonization Alternatives for the Maritime Transport Sector in Brazil,” published in 2023. The main objective is to analyze possible actions for the decarbonization of the Brazilian maritime sector. The study examines the current state of maritime transport in Brazil and explores various options for emission reductions. Furthermore, the report identifies opportunities for collaboration between the maritime sectors of Brazil and Norway through a comparative analysis of initiatives implemented for decarbonization. This analysis is essential for understanding how Brazil can advance in adopting more sustainable practices and effectively contribute to the fight against climate change.
Topic:
Maritime, Transportation, Sustainability, Carbon Emissions, and Decarbonization
Political Geography:
Brazil and South America

8. The Emissions Reduction Potential for Freight Transport on a High-speed Rail Line Along the ‘European Silk Road’

Author:
Erica Angers, Aleksandr Arsenev, and Mario Holzner
Publication Date:
09-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This report estimates the CO2 emissions of freight transport on a hypothetical high-speed rail (HSR) line along the northern route, from Lyon to Warsaw, of a ‘European Silk Road’ (ESR). Using a methodology consisting of predictions regarding the freight-carrying capacity of the future HSR, and the commodity-level switchover, our results indicate that a best-case scenario, at a project lifecycle of 60 years, in which all trains run with 257 tonnes of load, provides for a reduction of 176.2 Mt of net CO2 emissions compared with current levels. These lifespan savings are comparable to a reduction of net emissions by close to 24% of the overall EU transport sector emissions (excluding air transport) of one year (as measured by the net emissions in 2018). The net negative emissions in the optimistic full-capacity scenario will compensate for the construction costs in 13 years. Thus, the potential for emission reduction along the northern route of the ESR is quite substantial, given that this is just one line, with limited capacity. This hints at the importance that bold missions, such as the construction of a pan-European HSR network, could have for the definition of a European Green Industrial Policy that is capable of supporting the fulfilment of the goals of the Paris Agreement on climate change.
Topic:
Climate Change, Infrastructure, European Union, Economic Growth, Transportation, Logistics, Ecology, and Green Economy
Political Geography:
Europe

9. China's Green Transition Policies and Its Implications for Korea

Author:
Won Seok Choi
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In China, carbon emissions from the energy and heat producing sector account for 53.4% of total emissions, with industry (28.6%) and transportation (8.9%) being the main carbon emission sectors. Therefore, various green transition policies in energy, industry and transportation are being pursued in Chinese cities. In Chinese cities, the promotion of rooftop-distributed photovoltaic power generation, among renewable energy sources, is evaluated to be capable of intensive development, reducing power peak load, and inducing residents to consume green energy. Policies are being implemented in urban industries to reduce pollution and carbon emissions, increase energy use efficiency, improve resource use levels, and improve green manufacturing systems. In the transportation sector, China's policies to reduce emissions, expand the supply of new energy vehicles, and strengthen green transportation technology are representative. Consequently, this study summarizes the policy implications, areas of Korea-China cooperation, and risk factors of China's green transition promotion plan for its Chinese cities.
Topic:
Transportation, Industry, Carbon Emissions, Energy, and Green Transition
Political Geography:
China, Asia, and South Korea

10. Assessing the importance of new corridors in the South Caucasus in the context of the RussianUkrainian war

Author:
Murad Agayev
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
This article analyzes the possibilities of a new corridor in the South Caucasus region in the context of the Russian-Ukrainian war. The research is important because after the 44-day war, fertile conditions for new opportunities have emerged in the South Caucasus region. The RussianUkrainian war and the resulting damage to the transport sector, like other sectors, necessitated the creation and use of alternative routes. The questioning of the security of the Black Sea due to the war and the closing of the European space for Russia created a problem for the countries that used Russia and the Black Sea to reach Europe. These countries are already evaluating alternative opportunities to the corridors. One of these possibilities is the Middle Corridor project, which has seen an increase in the volume of transported cargo since its inception, except during the pandemic period. During the war, the shortest possible transport corridor from China to Europe will be provided after the financial investment in the infrastructure and the integration of the Zangezur Corridor into the Middle Corridor, and work on this process is currently being continued. The North-South Corridor, which has been discussed for a long time however has not gained much popularity, gained even more importance during the war, and the works related to the construction of the infrastructure of the corridor were accelerated.
Topic:
Security, Infrastructure, Transportation, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, Azerbaijan, and South Caucasus