Germanwatch welcomes the launch of the pilot phase of the EU Carbon Border Adjustment Mechanism (CBAM) this Sunday as a major milestone in European climate policy. Christoph Bals, Policy Director of Germanwatch, says: "With the introduction of the Carbon Border Adjustment Mechanism, the EU has achieved a coup: By levelling the international playing field for industrial companies, it enables high carbon prices in the EU Emissions Trading Scheme ETS and thus sends an important signal that it is serious about its industry’s transition to climate-neutrality. The CBAM also creates an incentive for EU's trading partner economies worldwide to speed up their transformation."

Lithium mining poses numerous environmental and human rights risks. As part of the Sector Dialogue Automotive Industry, Germanwatch therefore collaborated with stakeholders from industry and politics in the development of “cross-country recommendations for responsible lithium mining and recommended actions” in the “Lithium Project Group”. The paper identifies four risk areas and makes recommendations on how they can be addressed by the companies in the supply chain that mine and purchase lithium. Germanwatch supports the recommendations. However, we do see some key gaps in achieving a globally sustainable and equitable economy within planetary boundaries.

Hydrogen has caught significant attention from a wide range of stakeholders in EU Member States. Its potential remains largely untapped as, to date, European national hydrogen strategies typically do not feature sound sectoral targets for the use of hydrogen. The EUKI project 'Greening H2' commissioned a study from Bruegel, a Brussels-based think tank, which investigates the potential for and implications of renewable hydrogen deployment in Germany, Portugal, and Poland. It explores their respective national strategies, summarises core elements, and critically evaluates and places them in the broader EU hydrogen plans.

Climate change-related loss and damage (L&D) is already a lived reality for people around the world, threatening their fundamental human rights and trapping them in poverty. Comprehensive mechanisms are urgently needed to help them recover from extreme events, build new livelihoods, and proactively respond to slow-onset processes. Bangladesh is planning to establish such a comprehensive National Mechanism on Loss and Damage through a two-year pilot project. From 2023 to 2026, ADAMS, ICCCAD and Germanwatch are jointly implementing a multi-actor partnership project to "Support the establishment of the National Mechanism on Loss & Damage in Bangladesh". In this project flyer, you will find information on the project background, objectives, activities, and project partners.

Design plays a crucial role in determining the circularity of a product, including factors such as repairability, recyclability, or the potential for refurbishment and remanufacturing. The Ecodesign for Sustainable Product Regulation (ESPR) establishes a new framework for setting ecodesign requirements for products and is therefore crucial to enable a circular economy. At present, the EU Commission, the Council and the European Parliament are negotiating the ESPR in the so-called trilogue. In this policy brief, we highlight five key issues that need to be considered to make the final version of the Regulation as effective as possible and to promote more durable and circular products.

Fatal accidents, environmental disasters, and serious human rights abuses have occurred repeatedly in the global value chains of many companies. It is therefore imperative to ensure that those affected have the means to seek redress, thereby mitigating the risks associated with human rights violations and environmental degradation. One potential avenue for remedy is through non-state-based operational grievance mechanisms, which can exist either at the corporate level or as independent entities. This policy brief examines the role of operational grievance mechanisms in the ongoing negotiations of the EU Corporate Sustainability Due Diligence Directive (CSDDD).

Transitioning to and establishing electricity systems based on 100% renewable energy sources is a crucial step towards limiting global emissions. Co-authored with the Pan-African Climate Justice Alliance, our fact sheet provides an overview of the components needed to build such a system.

In our new policy brief, we analyse along with Climate & Company and Rechtsanwälte Günther why sustainability due diligence obligations for financial institutions are key to achieving the EU's climate goals. As an example for this tool, we draw on due diligence obligations for financial institutions to avoid financing projects that cause deforestation. In addition, the policy brief presents specific recommendations for regulating financial actors through the EU Corporate Sustainability Due Diligence Directive (CSDDD).

As of July, Spain holds the Presidency of the Council of the European Union. The Spanish Presidency has identified four priorities to focus on during its term. In our policy brief, we highlight specific areas of action within these priorities for the Spanish Presidency to make progress on climate and energy diplomacy.

The 27th UN Climate Conference (COP27) concluded with the groundbreaking agreement to establish a new loss and damage (L&D) fund. This significant development aims to enable vulnerable countries to respond to and recover from climate impacts. The report emphasises that the design and operation of the L&D fund will be significantly influenced by its intended scope. With diverse opinions among stakeholders on the fund's optimal design, the selection process for these recommendations is of paramount importance.