Headline: Economy

Sustainable Development Goals

Industry 4.0: Uneven Uptake Could Jeopardise Sustainable Development

The ninth United Nations Sustainable Development Goal aims to promote inclusive and sustainable industrialisation. Digitalisation is expected to influence market access and the positioning of companies within sustainable value chains. Individual countries or sectors that are slower to adopt digital technologies risk being left behind in this transformation. A new study offers insights into the uneven uptake of digital technologies and its implications.

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Metals

Broad Participation Needed to Transform Mining for a Sustainable Future

Metals such as cobalt and lithium play a vital role in the energy transition and are used in the manufacturing of solar panels, wind turbines, and electric vehicles. However, the mining of these raw materials is environmentally harmful, working conditions are often hazardous, and local communities are frequently excluded from the planning and operation of mines. In a new article, an international research team led by IASS Scientific Director Ortwin Renn describes how current mining practices could be improved and the sourcing and management of metals better aligned with the goals of sustainable development.

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Digitalisation

High Expectations, Uncertain Benefits: Industry 4.0 and Improving Corporate Sustainability Performance

Company representatives expect that digitalisation will improve the environmental sustainability of their organisations. However, actual experience paints a less positive picture: new technologies have so far largely failed to deliver anticipated improvements in resource efficiency. According to the researchers behind a new study, more political support is needed to harness the potential of Industry 4.0.

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Business Models for CO2 Mineralisation

The cement industry is responsible for about seven per cent of global greenhouse gas emissions. To encourage the decarbonisation of this industry, policymakers and the industry must find ways to incentivise reductions. A study from the Heriot-Watt University and the Institute for Advanced Sustainability Studies (IASS) gives us a first look at how CO2 mineralisation can reduce emissions from cement production by up to 33 per cent at no additional cost – under the right conditions.

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Decarbonisation

CO2 Mineralisation in the Cement Industry: Experts Call for Better Data on Societal Impacts

As a major contributor to climate change, the cement sector must significantly reduce its CO2 emissions. A promising technology to do this is CO2 mineralisation, which binds greenhouse gases (GHG) to minerals. But giving this technology the push it needs will require the support of important stakeholders. IASS researchers have examined the priorities they have in developing CO2 mineralisation.

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IASS Discussion Paper

Monitoring the Global Hydrogen Economy

Green hydrogen is set to make an important contribution to decarbonising industry, aviation and heavy transport. An IASS Discussion Paper presents a monitoring framework to systematically compile the most important trends and developments in the global hydrogen economy. Monitoring based on this framework could help to continuously review measures taken in the context of German and European hydrogen policy.

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IASS Policy Brief

Strategic Policies to Reduce Plastic Waste

Many people would like to reduce their consumption of plastic packaging, but face barriers such as the limited availability of unpackaged goods and scarcity of zero-waste stores. An IASS Policy Brief presents three strategic policy recommendations that could help reduce the consumption of packaging in everyday life.

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IASS Policy Brief

Integrating International Quality Standards in Solar Auctions

Solar power is booming across the globe, and public auctions have become the dominant policy tool for deployment. But a lack of solar-specific experience and capacity in newly adopting countries can result in technical failures and lower solar plant performance. International quality standards used as technical requirements in the design of public auctions could offer a solution. An IASS Policy Brief outlines the potential benefits and challenges.

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IASS Policy Brief

European Funding for Sustainable Structural Transformations in Cross-Border Regions

Profound structural transformations are unfolding in Lusatia and many other regions of Europe as part of a broader shift towards sustainable development. Various European funding programmes,including programmes under the European Green Deal and national support schemes, have been adopted to cushion the impacts of the reduction and phase-out of coal-fired power generation.

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Coal exit

Delivering a Just Transition in Lusatia

The German government has pledged to facilitate a just transition in the former coal region of Lusatia. What exactly does that mean on the ground? A new paper published in the Journal of Environmental Policy & Planning by Konrad Gürtler (IASS) und Jeremias Herberg (Radboud Universität) examines the tensions between distributive justice and recognition in the context of public debate around the structural transformation in Lusatia.

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Fifth Gene Technology Report

Can Gene Technology Contribute to More Sustainability in Agriculture?

Agriculture is a large but controversial area of gene technology. What opportunities and risks for sustainability are associated with applications like resistance breeding and genetic engineering to improve nutritional quality? IASS Director Ortwin Renn examines these issues in the “Fifth Gene Technology Report” of the Berlin-Brandenburg Academy of Sciences and Humanities. He also recommends new forms of dialogue that can promote the responsible use of “green gene technology”.

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wpn 2030

Fit for the Future with a Sustainable Financial Strategy

Finance is becoming increasingly important as a lever for sustainable development in all policy areas. In mid-May 2021, the fourth Advisory Council Dialogue 2021 of the Science Platform Sustainability (wpn) 2030 and Sustainable Development Solutions Network Germany (SDSN) took place. The results and impulses can now be found (in German) in the paper “Finanz. Macht. Zukunft.”

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Automobile industry

Big Data Can Support Corporate Environmental Management

Faced with the challenges of digitalization and the climate crisis, many companies are keen to improve their sustainability. In a new study, researchers examine the potential uses of data analysis to strengthen corporate environmental management in the automotive industry. The study reveals that Big Data could enhance corporate environmental management in a variety of ways and that many of these opportunities are going untapped.

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Study

Creating a global standard for sustainability reporting

For customers, investors and consumers alike, it can make a difference whether a company operates sustainably and adheres to ethical and ecological standards. Standardized and verifiable reports are needed so that companies can provide credible and verifiable evidence of their ability to walk the talk of sustainability. Reporting standards should present corporate contributions to sustainable development in manner that facilitates comparison and be universally applicable to companies of all sizes and types.

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Energy transition

Green Electricity for Europe: Small Scale Solutions Also Affordable

The European Union aims to achieve climate neutrality by 2050 and is relying largely on renewable electricity to reach this goal. The implementation of this energy transition is the subject of heated debate: A continental-scale system that concentrates energy generation infrastructure in the most suitable locations would provide the most afforable solution but many citizens favour smaller, more dispersed supply networks. A new study prepared by researchers in Potsdam and Zurich shows that the implementation of such systems would not incur significant additional costs.

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Green-Win-Project

How ecological Value Chains Can Help Societies Tackle the Coronavirus Crisis

The coronavirus pandemic has cast a spotlight on the vulnerability of global value chains. Sustainable value chains at the regional level could bring more stability to the post-pandemic world. A team of researchers at the Institute for Advanced Sustainability Studies (IASS) has developed a typology of climate win-win strategies that can be used to identify sustainable regional value chains.

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Fact Sheet

Covid-19 Crisis: Renewables Can Help to Unburden Health Care Systems and Restart Economies

Economies around the world have been severely affected by the Covid-19 pandemic. Substantial political efforts will be needed to stabilize employment markets and relieve pressure on health systems. Renewable energy generation can provide important stimuli for efforts to achieve these goals. A team of researchers with the COBENEFITS project at the IASS has analysed the potential benefits of decarbonizing the energy sector.

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How is Covid-19 affecting the global economic order?

Scenarios for the Global Monetary System

Supply chains collapse, companies are facing bankruptcy, and mass unemployment ensues. Covid-19 has triggered a global financial crisis and is forcing states to develop rescue packages on a scale not seen before. In addition, the crisis has called into question the US dollar's hegemony and could redefine the global monetary system. A team of researchers from the Institute for Advanced Sustainability Studies (IASS) has developed four scenarios that show how political decisions will shape the post-Corona world.

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Edited volume

An Unconditional Basic Income for a Sustainable Society

Could an unconditional basic income foster freedom and equal opportunity, curb the excesses of an age of acceleration and help to conserve our finite natural resources? The freelance curator, author, theorist and activist Adrienne Goehler has studied this question as an IASS Fellow. Her recently published book "Nachhaltigkeit braucht Entschleunigung braucht Grundein/auskommen" presents essays, interviews, stories, diagrams and artistic interventions from a range of authors.

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Global Sustainability Strategy Forum

Science and Business: Working Together for Sustainability

How can science and business help build sustainable societies? This question took centre-stage at the second Global Sustainability Strategy Forum, held on 22 – 24 March 2020. The event did not take place in Bangkok as previously planned due to the coronavirus pandemic. Instead, 25 leading experts from business and sustainability science came together online to discuss how the two sectors could work together more effectively.

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Shale gas in Europe

Fracking Likely to Result in High Emissions

Natural gas releases fewer harmful air pollutants and greenhouse gases than other fossil fuels. That’s why it is often seen as a bridge technology to a low-carbon future. A new study by the Institute for Advanced Sustainability Studies (IASS) has estimated emissions from shale gas production through fracking in Germany and the UK. It shows that CO2-eq. emissions would exceed the estimated current emissions from conventional gas production in Germany.

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IASS Discussion Paper

Who is to Pay the Follow-Up Costs of Lignite-Mining? IASS Researcher Makes Policy Recommendations

The days of Germany’s lignite-mining industry are numbered, that much is clear. The Coal Commission appointed by the Federal Government now has the job of planning how exactly the phaseout will proceed. One issue that is often overlooked in this context is the question of how the rehabilitation of former coal-mining sites is to be financed. A new IASS Discussion Paper examines the risks inherent in the existing financing practice and makes concrete proposals for changes.

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Blog Posts

Decarbonizing Industry

How Decarbonization Will Transform the Geography of Industrial Production: New Evidence on the “Renewables Pull” Hypothesis

The availability of renewable energy is an important factor for future investment decisions in the chemical and steel industry. This is a key finding of our survey of 300 decision-makers from the chemical and steel industry. 92 per cent of the respondents anticipate that their company will relocate facilities as it seeks to decarbonize production. In addition to low-cost renewable energies, the respondents identify political support as a key factor in investment location decisions.

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Three Challenges for the CBAM's Transitional Phase

On 1 October 2023, the EU’s Carbon Border Adjustment Mechanism (CBAM) entered into effect, beginning with a transitional phase that will run through to 2026. This provides a two-year learning phase during which stakeholders, including the European Commission, can gradually adjust to the new terms of trading established by the CBAM, a cross-border carbon pricing mechanism targeting imports of carbon-intensive products.

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Hydrogen vs. Carbon Capture: Why Europe Needs Both for Net Zero

In their decarbonisation journey, European countries have so far focused on policies to dramatically increase the share of renewables and improve energy efficiency across diverse sectors, including industry, construction and housing. However, it has become clear that renewables alone will not enable the industrial sector to achieve its decarbonisation goals, as a large share of the carbon dioxide emissions from industry are emitted during manufacturing processes. Emerging technologies for carbon capture and storage (CCS) and carbon capture and utilisation (CCU) as well as hydrogen (H2) are currently being explored as the most promising solutions.

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US and EU must overcome protectionist tendencies to cooperate on battery supply chains

As governments across the world decarbonize their economies, the shift toward clean energy is highlighting new geopolitical tensions, supply chain vulnerabilities, and sustainability challenges associated with raw material extraction. With electrification as the main pathway to achieving decarbonization, one key technology—the battery—plays an outsize role in this shift. As the lithium-ion battery is currently the dominant technology for electric vehicles and stationary energy storage, exponential growth in critical mineral mining is required to meet demand. The International Energy Agency projects that the metals industry would need to build 50 new lithium mines, 60 nickel mines, and 17 cobalt mines by 2030 to meet global demand in line with national emissions-reduction pledges.

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A digitalized economy for a more sustainable future

To take stock of industry’s real-world experience with digitalization to date and the expectations that exist with regard to sustainability impacts, the research group “Digitalisation and Sustainability Transformations” conducted an international study in China, Brazil, and Germany. Their results clearly show that the moderate gains made thanks to digitalization lag far behind the high hopes that many hold for it.

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Deforestation-free commodity chains: How an EU legislative proposal reverberates in Brazil

On November 17, the European Commission proposed a regulation on deforestation-free products. This initiative is groundbreaking in that it tackles legal deforestation next to illegal. What does this legislative proposal mean for commodity-producing countries? In the case of Brazil, effective regulations will depend on a combination of trade, financial, technological, and cooperative measures.

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Amendment to Packaging Act

Putting the brakes on plastic packaging waste

"The Packaging Act of 2019 is already having an effect here [on recycling]. But there is still far too much packaging waste in Germany. More than half of all plastic waste is disposable packaging, and that really bothers many citizens, and it really bothers me personally", remarked Minister of the Environment Svenja Schulze on the latest amendment to Germany’s Packaging Act (the Verpackungsgesetz).

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A Green New Deal for the Amazon: Reconciling Conservation and Development

Brazilian geographer Bertha Becker referred to the Amazon region as the oldest periphery of the capitalist world system. Its colonial occupation, or 'frontier economy', is based on the continuous incorporation of available land and the exploitation of their resources – both of which are regarded as infinite. This perspective on the Amazon has existed for centuries and continues to loom large in Brazil today. To meet its growing demand for raw materials, the outside world assumed the rainforest to be of little value, discounting the services that it provides to humankind. This view encourages the rainforest’s destruction and is not sustainable. A model for the sustainable development of the Amazon region is feasible however and could play an important role in Brazil's post-pandemic economic recovery efforts.

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Pandemic

Israel: Green innovation could power economic recovery

Countries have responded differently to the large societal and economic impacts of the Covid-19 pandemic. While some view the crisis as a window of opportunity for new technologies and approaches to achieve climate neutrality, others will be tempted to reinforce their dependence on old technologies, leading to a carbon lock-in. Israel’s response as a start-up nation is promising, but further measures are needed to support a green transition.

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CO2 carbonation: cleaning-up the cement industry?

In the European Commission’s “Coronavirus response”, President von der Leyen recently announced the aim of building “a modern, clean and healthy economy, which secures the livelihoods of the next generation”. But what does that mean for high emitting industrial sectors such as cement production? Are they part of “yesterday’s economy”, or will they successfully transition to more sustainable modes of production? Over half of all the materials that humans use on Earth are “cementitious” – including concrete, cement and other building materials – and it is difficult to imagine a life without cement.

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Waste management

Germany Bans Disposable Plastic Products: An Important Step on a Long Road

According to a recent report, German households are producing 15% more waste compared to before the pandemic as concerns around hygiene and safety overshadow the public's interest in sustainability. Additionally, with people enjoying outdoor spaces in the summer, plastic packaging waste is even more starkly noticeable in the environment. With common plastic items, and particularly to-go food packaging, constituting 10-20% of the waste found in parks, public places and streets in Germany, the urgent need to regulate these products cannot be understated. Long-term measures to avoid the excessive production and consumption of plastic in its various forms are clearly needed.

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Rainforest

Market Pressures and the Amazon – First Steps towards a Brazilian Green New Deal?

Socio-environmental governance is not an area of exclusive government action. Corporations, investors, civil and consumer organizations are reinventing themselves as political players in an increasing number of self-regulatory arrangements. Private environmental governance covers a wide-range of schemes such as Corporate Social Responsibility (CSR), Environmental, Social and Governance (ESG) criteria; Voluntary Sustainability Standards (VSSs) and certifications. Private initiatives have been praised for their potential to contribute to the goals of the Paris Agreement. Nonetheless, the current situation in Brazil shows that the private sector has a role to play not only in making its own environmental commitments, but in demanding that governments respond.

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Facing Down the Plastic Flood – Recycling, a Plastic Tax, and the Barriers to Behaviour Change

In May 2020 I was a guest on an episode of the TV show “Planet Wissen” dedicated to “Pathways out of the Plastic Flood”. It was an opportunity for me to talk about the preliminary results of our work in the ENSURE project on “Plastic: Social Perception and Behaviour Patterns”. The journalist Andrea Wojtkowiak had sent me a few questions in advance, but – as is so often the case – there wasn’t enough time to discuss everything in detail during the programme itself. So for all those interested in the issue of plastic, here are the more in-depth answers.

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Coronavirus

New forms of cooperation between science and business

Crises create the space and time for us to question long-held beliefs and to debate new possibilities. The current crisis shows more clearly than ever before the need for new and previously unimagined – or seemingly impossible – solutions to advance the transformation of our societies towards sustainability. And it needs people with the ability to make these new ideas reality. Little has been made of the potential benefits of cooperation between science and business in such vital areas as mobility and energy transitions. Pooling expertise from science and business, and involving political decision-makers, non-governmental organizations, and the public in relevant debates, could unlock previously untapped potentials for sustainability transformations.

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Coronavirus

How to rebuild back better: Planetary health as a compass for shaping the future international global order

Worldwide over one billion people are on coronavirus lockdown. Overnight, the frantic economies of the twenty-first century ground to a halt. All of the sudden, an invisible organism became our number one enemy, demonstrating the fragility of an über-connected planet. The coronavirus pandemic is an unprecedented event and will leave a much changed world in its wake. The question of global cooperation looms large in thinking about the post-pandemic world. Are we entering a world that is less free and open? A world of more authoritarian states? Or is this pandemic an opportunity to “unlearn” mistakes and build our societies based on trust, knowledge and cooperation?

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Sustainability requires economic deceleration, which requires a universal basic income

The German naturalist, writer, and statesman Alexander von Humboldt taught that all things are truly connected to everything else; that our entire world is an interwoven tapestry. The only way to ensure a dignified life for all, without poverty and hardship, is to make climate change and the limits of global resources central criteria in all political and economic decisions. One proposed solution to the growing problem of poverty is unconditional basic income (UBI).

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Environmental Sustainability: A Bhutanese Expression

As a child, I lived near the forests and walked everywhere on foot because we did not have motorable roads, nor could my parents afford to buy a family car. If I were to narrate this story to sociologists or media reporters, then I would feel that I was exposing my limited wealth compared with people in developed countries. But when I shared my story with scientists at the IASS, I narrated it confidently, because they think that we are on the right path towards achieving the Sustainable Development Goals (SDGs).

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No More Perks for Diesel

To improve air quality in the long term diesel vehicles must be subject to the same emissions standards as other vehicles and the tax advantages that diesel enjoys must be abolished.

At the recent ‘Diesel Summit’ in Berlin, politicians, car manufacturers and others met to discuss possible ways out of the current diesel mess. The measures on the table include banning diesel vehicles from cities, introducing a ‘blaue Plakette’, and retrofitting older models. But none of these will suffice.

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Renewable Energy in Africa: China is Indispensable

Without China, little can change in Africa. This is why Germany should work closely with Beijing on the issue of investments in climate-friendly infrastructure in Africa.

Following the USA’s announcement of its withdrawal from the Paris climate agreement, the international community is facing the first serious crisis of global climate policy since the breakthrough in 2015. Initially, this may not have much impact on reducing emissions in the USA itself.

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Climate Policy under Donald Trump: What is to Become of America’s Energy Transition?

Clean energy was a key climate policy instrument during the Obama presidency. Obama also understood the promotion of renewable energy, energy efficiency, and comparatively low-emission natural gas as a driver of economic growth (Obama, 2017). Donald Trump has set out his energy policy in the America First Energy Plan – a strategy paper that stretches to about half an A4 page. It focuses on the promotion of fossil fuels with the aim of promoting economic growth and making the country energy independent (The White House, 2017a) .

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Donald Trump and the Future of Climate Protection

On 20 January 2017, Donald Trump will be inaugurated as the forty-fifth president of the United States. His previous announcements on energy policy mark a clear departure from the climate policy ambitions of his predecessor, Barack Obama. But what exactly should we expect from Trump’s climate and energy policies? Will he really be able to overturn the climate policies adopted by the US under the Obama Administration?

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How awesome are renewable energy auctions?

The IASS has produced what is probably the most comprehensive overview on the results of recent renewable energy auctions yet. The study, which is soon to be published in English (it’s available here in German), thus fills a crucial gap. Policymakers will want to know the findings so they can improve policy design – and the study sheds light on some surprising gaps.

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Focus on Fulfilling the Climate Agreement instead of Lowering Power Prices: a Comment on the Debate about the “EEG Fund”

Once again, the political discussion is focusing on a state fund to finance renewables in Germany instead of using a surcharge on power consumption. This time, Bavarian state premier Horst Seehofer is calling for it. At first glance, it seems to be a good idea." For a long time, Germany’s Renewable Energy Act (EEG) provided renewable technologies with support similar to that given to other technologies, such as nuclear power, by means of taxes.

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Should We Print Money to Make the World More Sustainable?

Over a leisurely Sunday family dinner, when the conversation turns to putting the world to rights, your niece or second cousin may have asked you the following question: Why not simply create money and give it to poor people in order to make a better world?

You may have smiled at the ingenuity of this question and told them that this is simply not possible. Otherwise, money would just lose its value and inflation would rise.

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A Science Perspective on the Volkswagen Emissions Scandal

When I initially heard about the VW scandal, it was secondhand and I hadn’t read any of the news yet, I didn’t have any of the facts. But I remember thinking (and saying), I don’t know what the big deal is about, everyone knows those chassis dynamometer tests they use for estimating emissions don’t get anywhere close to the real-world emission values. Then I read about it and saw what all the fuss was about – 35 times higher than the US limit value?! And cheating software to pass the test?!

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A Black Future for Coal

King Coal – as the most widespread and cheapest fossil energy source is often called – is entering a crucial, maybe definitive, phase. Indeed, worldwide coal consumption has decreased significantly in recent years due to a growing hostility to the generation of electricity using unsustainable coal.

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Reforming the International Monetary System to Save the Climate

What does reforming the international monetary system have to do with saving the climate? As it happens quite a bit, says Robert Wade, Professor for Political Economy and Development at the London School of Economics. At a guest lecture at the IASS on 15 June, he described a number of proposals for reducing macroeconomic imbalances and strengthening the resilience of the international financial system.

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A Heady Cocktail for Growth that Lacks Tonic

Growth, too, isn’t what it used to be. Nowadays, it has to be ‘qualitative’, ‘pro-poor’, ‘inclusive’, ‘sustainable’, ‘green’, or even ‘smart’. And if one attribute doesn’t suffice, a mix of all of them will do: “smart, sustainable and inclusive growth” (EU Commission), “sustained, inclusive and sustainable growth” (UN) or “inclusive, pro-poor, green growth” (World Bank). This wonder-working growth cocktail, which is supposed to cure all of the twenty-first century’s ills, is nothing more than hot air.

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