Policy Analysis

Policy Analysis

The climate change market is essentially politically driven. It is a global effort to curb what Sir Nicolas Stern has labelled "the biggest market failure the world has ever seen". It is an attempt to internalize the emissions externality of mainly industrial production by putting a price on carbon emissions. As such it fully depends on the political determination to stay focused on the objective to bring emissions down to a level that, as stated in the United Nations Framework Convention for Climate Change (UNFCCC), will prevent dangerous anthropogenic interference with the climate system. Thus, being able to assess the trends and relations in policy development is the key to understanding where this market is moving.

CVDTC is situated in one of the few locations in the world where the key building blocks for the future climate regime are being carved out: In the capital of China. It is beyond discussion that the Chinese administrators and negotiators determine both the direction of the present market as well as the shape and modalities of the market to come. CVDTC’s close relations to the Chinese administrative set-up as well as key institutions that support Chinese decision making provides a unique platform for second-guessing where the agenda is moving. Where China is moving, there is a substantial possibility that the world is eventually also going.

Adding to this CVDTC’s European basis, being originally a Dutch company now with staff from a number of European countries, and also with a US subsidiary, ensures that we are present in the most important centres of decision making. The set-up facilitates thorough, comprehensive and in-depth analysis of the policies as they take shape – and as they will ultimately shape the future carbon markets as well as the markets that are related to emissions reduction, particularly renewable energy and energy efficiency project activities.