Policymakers must tackle emissions in basic commodity production – researchers

A whole range of different policies is needed to bring down the emissions arising from basic commodity production in Germany, the German Institute for Economic Research (DIW) says in its weekly report. The production and use of basic commodities like concrete, steel, or paper are responsible for about a quarter of worldwide CO₂ emissions – “but they’re not in the focus of climate politicians,” researchers Karsten Neuhoff and Olga Chiappinelli say. Neuhoff says that the emissions reduction potential in the sector has been largely neglected in the past, and “often concerns over competitiveness or the relocation of production facilities are used as arguments.” The DIW researchers say an EU legal framework that regulates the use of substitute materials, better production design, recycling schemes, as well as a long-term carbon pricing system are needed to bring down emissions in the basic commodity sector.

Read the DIW’s report in German here.

See the CLEW dossier The energy transition’s effect on the economy for background.