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Introduction

Main findings

Introduction

Context

As the imperative to address climate change intensifies, understanding the effectiveness of policy interventions becomes paramount. In the context of addressing these urgent challenges and given the inadequacy of current policies to address this issue, this study examines the extent to which Nationally Determined Contributions (NDCs) and Long-Term Targets (LTTs) can contribute to achieving ambitious climate goals.

Methodology

Recognizing the critical need for effective climate action, we employ the advanced modelling tools PROMETHEUS and GCAM to assess the implications of different scenarios–Current Policies (CP), Nationally Determined Contributions (NDC), and combination of NDCs with Long-Term Targets (NDC_LTT)–on the future development of energy system and emission. This study, by employing these well-known models, seeks to provide an improved understanding of the impacts of NDCs on global emission trajectories and whether the integration of NDCs and LTTs can help close the gap towards Paris-compatible pathways. The following scenario assumptions are used:

  • Current Policies (CP): The scenario is based on the current portfolio of actual emissions reduction policies as well as credible policy targets until 2030 in EU and non-EU countries. For the period post-2030 action, the CP scenario assumes that climate policy continues but is not strengthened. The CP scenario assumes that the rate of change of emission intensity of GDP over 2020–2030 remains the same after 2030.The applied policy targets until 2030 (for example, renewable energy mix targets, vehicle fuel standards) are maintained as minimum levels beyond 2030 to avoid backtracking of achieved policies.
  • Nationally Determined Contributions (NDC): The scenario assumes the implementation of stated 2030 emission targets captured in NDCs submitted or announced by June 2022, capturing all mitigation ambition updates during and after COP26. These NDC targets are applied on top of current policies (CP) modelled in the previous scenario; in regions where current policies overachieve on the mitigation targets in NDCs, no additional emission constraints are applied. For the period after 2030, the same method based on constant carbon intensity of GDP reduction rates over 2020–2050 is applied as in the CP scenario.
  • NDCs with Long-Term Targets (NDC_LTT): The scenario is based on the NDC assumptions until 2030 but, for regions that formulated an LTT, such as net-zero commitments or other targets for 2050 or later (either in law, policy documents, or only announced), emission constraints are applied that linearly decline from 2030 NDC emission levels towards the LTT. For regions without LTTs, post-2030 emissions follow an identical path as in the NDC scenario.

Sectoral focus

The study analyzes various sectors including buildings, transportation, electricity generation, and industry to provide insights into the limitations of existing policies and the potential of enhanced commitments to drive transformative changes in a global scale. The effectiveness of these policies varies across different sectors, highlighting the challenges that need to be addressed for achieving the required emission reduction targets in the medium- and long-term.

Sectors that the study focuses on: industry, transport, buildings

Main findings