Does ASEM work? CEPS Policy Brief No. 321, 14 October 2014

This CEPS Policy Brief is based on a larger study for the EEAS and European Commission, written by the same authors in the run-up of the Milan ASEM summit of 16-17 October 2014. The main idea of the study is to assess whether ASEM works and how, by verifying the factual evidence in detail. After all, ASEM has no institutions, no budget and no treaty, whilst dialogues and a loose improvement over time in Asia-Europe relations refer to process much more than genuine ‘results’. The stocktaking covers all ASEM activities since the 2006 Helsinki summit. Summit and foreign ministers’ declarations and ASEM calendar of activities (and interviews) are used to trace ASEM activities in the three ASEM pillars (political, economic, and peoples-to-peoples/cultural). All the ‘regular’ ASEM meetings at ministerial and other levels (many of which are only known to relatively few) have been mapped. Also the ASEM working methods, based on the 2000 AECF framework and many subsequent initiatives, have been scrutinised, including whether they are actually implemented or not or partially. Such methods refer to how to work together in areas of cooperation (beyond the typical ASEM dialogue), organisation, coordination and ASEM visibility. The main conclusion is that ASEM works reasonably well, once one accepts the ASEM of today, although some inefficiencies still characterise the ‘system’. There is a host of secondary conclusions on the three pillars, the foreign ministers, the strong government-to-government nature of ASEM and the working methods. We recommend that today’s ASEM needs no reform and that not having ASEM would entail political and diplomatic costs. We emphasise that ASEM is well placed to stimulate exchange of information between the mega-FTAs such as TPP, RCEP and TTIP. However, the ASEM of tomorrow might be different, given the great changes in geo-political and economic conditions since ASEM began in the mid-1990s. Moreover, the size of ASEM has become such that classical ways of operating with (after Milano) 53 countries (including the EU and ASEAN) cannot possibly be effective all the time. We suggest that, in the run-up to the 20th ASEM birthday (2016), EU and Asian independent think-tanks get together to write an ‘options report’ reconsidering options for a new ASEM, as the basis for a profound and wide debate how to get more value-added out of ASEM.

Scanning the Options for a Structural Reform of the EU Emissions Trading System. CEPS Special Report 107, 19 May 2015

This paper provides a comprehensive overview and analysis of different options to reform the EU Emissions Trading System (ETS). The options discussed include changes to address the rigidity of supply on the auctioning side, as well as reforms to add flexibility to free allocation. Additionally, other options that may enhance the functionality of the EU ETS are covered, drawing on examples and practices in other carbon-pricing mechanisms around the world. It is crucial to note that any reform of the EU ETS must consist of a package of options. Taken separately, the options may very well have beneficial effects, but they would also leave intact clear imperfections in the current design. Specifically where the auctioning supply mechanism and the flexibility in free allocation are concerned, we assess multiple options in each category, and present evidence for each option. Where appropriate, we suggest complementing these reform options with additional elements (presented in section 3.3). The aim of any structural reform should be to arrive at a set of options that forms a consistent and credible package. With this paper, we provide an evidence-based assessment of the various building blocks of such a reform.

EU Climate and Energy Governance: There’s more to it than meets the eye. CEPS Commentary, 14 July 2015

In this new CEPS Commentary, a team of climate and energy specialists argue that a reliable system of climate and energy governance in the EU would certainly need to go beyond the issues that are identified in the 2030 framework for climate and energy and the Energy Union. In their view, such a system would consist of no less than seven complex areas, which they proceed to outline and discuss their interrelationships. To ensure that these areas are dealt with in an integrated manner, they recommend that the European Commission creates a roadmap – possibly in the form of a Communication – that would indicate the direction, interactions and a timeline for their adoption.

Modi's Reform Agenda: Change You Can Believe In? Asia Policy Brief 2015/04, November 2015

Indian Prime Minister Narendra Modi entered office with a historic political mandate. For the first time in thirty years, a single party won a majority of seats in the lower house of Parliament (Lok Sabha). However, Modi faces skyhigh expectations to fulfill his campaign promises of getting India’s economy back on track. Eighteen months into his government’s term and in the wake of electoral defeats in the states of Delhi and Bihar, questions are being raised about its economic performance. While the Modi government has stabilized India’s macroeconomy and announced a series of incremental economic reforms, more sweeping changes have fallen victim to India’s nettlesome domestic politics, including roadblocks within the ruling alliance.

Towards an Effective EU Framework for Road Transport and GHG Emissions. CEPS Special Report No. 141 / July 2016

The adoption of the Paris Agreement at the end of 2015 and the EU’s intended nationally determined contribution (INDC) have confirmed the EU’s commitment to achieve decarbonisation by 2050. Transport accounts for about a quarter of EU greenhouse gas (GHG) emissions, representing the second-largest source of GHG emissions in Europe after the energy sector. The transport sector will play a significant role in the EU’s efforts to decarbonise its economy in line with its international commitments. The purpose of this report is to examine different EU policy options to address transport emissions, with a special emphasis on passenger cars. It ‘thinks through’ the options that are currently assessed in the EU and considers how they could be put together in a comprehensive framework. The report concludes with a number of measures to lead EU transport decarbonisation policy. A distinction is made between i) no-regret options and ii) measures for consideration.

Brexit and climate policy: Political choices will determine the future of EU-UK cooperation. CEPS Commentary, 15 July 2016

Ever since the electorate of the United Kingdom voted to leave the European Union on June 23rd, there has been much discussion and speculation over what the decision implies for climate policy in the EU. This commentary looks at what may happen and the possible implications at various levels: globally at the level of the United Nations, the EU level and the implications for the UK.