The platform explores options for an effective policy framework to advance innovation and use of low‐carbon technology and material options. To achieve this, the project:

1. Develops a shared vision and framework to think about policy needs for net-carbon neutrality in materials sector.

2. Advances analysis on individual policy instruments and governance framework for their implementation.

3. Supports converging of preference for European based policy instruments in discussions within EU member states and at Brussels level to contribute to common basis for policy implementation.

4. Supports capacity building and developing of common knowledge base on the policy options for delivering material sector decarbonisation.

Partners

Policy framework for basic materials

• Position Paper: Closing the Green Deal for Industry (2021) (earlier 2-page summary available here)
• Policy Brief: Green Deal for industry: a clear policy framework is more important than funding (2021)
• Paper: A green COVID-19 recovery of the EU basic materials sector: identifying potentials, barriers and policy solutions (2020)
• Report: Building Blocks for a Climate-Neutral European Industrial Sector (2020)
• Report: Inclusive Transformation of the European Materials Sectors (2019)
• Report: Filling Gaps in the Policy Package to Decarbonise Production and Use of Materials (2018, and related Policy Brief)
• Graphics package: Unlocking the low-carbon transition of the basic materials sector

Climate Contribution (excise)

• Policy brief (05/2022): Addressing export concerns in the CBAM file
• Policy brief: Climate Contribution and its role in European industrial decarbonisation (12/2020)
• Analysis: Carbon pricing of basic materials: Incentives and risks for the value chain and consumers (2021)
• Analysis: Border Carbon Adjustments and Alternative Measures for the EU ETS: An Evaluation (3/2020)
• Analysis: Climate Neutral Production, Free Allocation of Allowances under Emissions Trading Systems, and the WTO: How to Secure Compatibility with the ASCM (2021)
• A new book: Economic and Legal Considerations of a climate contribution (2021)
• Analysis: Carbon Pricing of Basic Materials: Incentives and Risks for the Value Chain and Consumers (1/2021)
• Summary report:  From our first global research project on Climate Contribution (5/2016)
• Analysis: Legal Design and Practical Administration (2016)
• Analysis: The Legal Basis under European Union Law (2015)
• Report: The pulp and paper sector including considerations on climate contribution  (2016)
• Steel Report: Carbon Control Post 2020 in Energy Intensive Industries (2014)
• The Cement Report: Carbon Control and Competitiveness Post 2020 (2014)

Carbon Contracts for Difference

• Policy brief: Unlocking transition to climate-friendly material sector in Europe with Carbon Contracts for Difference and Climate Contribution (2021)
• Synthesis report: Contracts for Difference and Climate Contribution: A comparison between Germany and Poland  (2021)
• Analysis: Carbon Contracts for Difference. An assessment of selected socio-economic impacts for Germany (2021)
• Analysis: Carbon Contracts for Differences: their role in European industrial decarbonisation (2020)

Regional Perspective

• Policy Brief: Transforming industrial clusters to implement the European Green Deal
• Policy Brief: A Climate-Neutral Industry: Status of policy debate in European Member States

In 2020 the Climate Strategies, WiseEuropa and DIW Berlin successfully delivered the CFM TRACTION project (Climate Friendly Materials Market Creation Through Policy Innovation) to co-design new insights into the socio-economic impacts of implementing an effective policy framework to accelerate a systemic transformation of the basic materials sector to net zero emission by 2050. Funded by EIT Climate-KIC, and working with Polish and German stakeholders, the project co-designed national impact assessments of two key policy instruments to supporting industrial decarbonisation.

1. Climate Contribution (for construction and automotive sector) as part of the EU ETS is a charge on carbon-intensive materials sold for final use in Europe. The Contribution is an alternative to a Border Carbon Tax, delivering the same results with fewer risks.

2. Project-based Carbon Contracts for Difference (CCfDs) are contracts between national governments and companies developing low-carbon projects, which ensure a guaranteed carbon price for the project. CCfDs create lead markets for innovative low-carbon production processes and materials.

While our work has helped to kick-start and developed these ideas, no single organization can entirely lay claim to these achievements, which are the result of an ecosystem of actors working to progress this agenda. However, following country partners engagement with relevant ministries the following tangible policy measures have been agreed:

• The Polish government has published its draft hydrogen strategy which includes plans to introduce CCfD by 2025. These will likely focus on chemical and perhaps also steel industry.
• In Germany the cabinet just approved in December a 500 million budget for initial CCfDs, as the concept of CCfDs had been introduced in the steel strategy end of summer last year.

We organized engagement activities using co-production events to create an interface between stakeholders, and support effective translation of knowledge. ‘Co-production’ is the practice for bridging the climate research-policy interface, which supports the development of mutual understanding amongst stakeholders and decision-makers, to determine the research questions and program that will ultimately inform and support policy action.

CFM Traction applied a co-production approach to facilitate iterative and interactive engagement between national policy actors, researchers, industrial and finance leaders, and civil society stakeholders (including consumer groups) in Germany and Poland, supporting peer to peer learning and enhanced stakeholder buy-in for the policy solutions explored.

Details on events can be found on the project website of partner DIW Berlin

• Webinar: A robust CBAM design to unlock climate-friendly industry investments at EU scale (online, 26 January 2022)
• European Dialogue: Policy Toolkit for Net-Zero Industrial Innovation, 11 January 2021 (EU wide, online)
• Climate Friendly Materials (CFM) TRACTION: Joint Germany / Poland Workshop, 14th December (WiseEuropa/ DIW Berlin, online)
• Carbon Contracts for Differences und effektive CO2-Bepreisung entlang der Wertschöpfungskette in der Industrie (Carbon Contracts for Differences and effective CO2 pricing along the value chain in industry), 4. December 2020 (DIW Berlin, online)
• Climate Friendly Materials (CFM) Traction: Climate contribution from the consumption of emission materials – an effective form of CBAM?, Thursday, November 19, 2020 (WiseEuropa, online)
• Climate Friendly Materials (CFM) Traction: How to effectively implement Carbon Contracts for Difference in Poland?, Tuesday, November 10, 2020 (WiseEuropa, online)
• Carbon Contracts for Differences und effektive CO2-Bepreisung entlang der Wertschöpfungskette in der Industrie (Carbon Contracts for Differences and effective CO2 pricing along the value chain in industry), 4. November 2020 (DIW Berlin, online)
• Complementing free allocation with climate contribution – a robust solution to support decarbonisation of the materials sector, 5th November 2020 (Wise Europa, online)
• The Belgian-Dutch-North Rhine Westphalia Industrial Clusters and Climate Neutrality, 2nd July 2020 (Radboud University, VUB, online)
• Carbon Contracts for Differences, 25th June 2020 (Comillas, online)
• A climate-neutral industry: State of policy debate in European Member States, 17th June 2020 (REKK, online)
• “Policy Design for Greening Construction Supply Chains” – Stockholm, May 2019
• “Inclusive transformation of the European Materials Sector” – Berlin, March 2019
• “Trade and Climate Policy in 2018 and beyond. How to get the incentives right” – Berlin, November 2018
• Policy Packages for Low Carbon Roadmaps in the Materials Sector” – Berlin, March 2018.
• UNFCCC SB’s Side Event “Policy Solutions for a Climate-Friendly Materials Sector – Bonn, November 2017
• “Policies to stimulate climate-friendly innovation in the materials sector”- Berlin, October 2017.
• “2^nd Workshop on Policy Design for a Climate-Friendly Materials Sectors” – Berlin, January 2017
• “1^st Workshop on Policy Design for a Climate-Friendly Materials Sectors” – Brussels, September 2016

The Climate Friendly Materials Platform builds on continuously work since 2013 to develop an effective policy framework to decarbonise the basic materials sector.
Activities under the Platform (outlined below) have received funding support from the governments of the Netherlands, Germany, France and the United Kingdom, from Heidelberg Cement, Tata Steel Europe, ArcelorMittal, Formas Commons, the Mistra Indigo programme, Germany’s European Climate Initiative (EUKI) and the European Climate Foundation.

• • Climate-Friendly Materials Platform: Supporting the Transition in Central and Southern Europe
  • Policy Design for a Climate‐Friendly Materials Sector
  • Inclusion of Consumption in Emissions Trading
  • Carbon Control Post 2020 in Energy Intensive Industries