News

Science takes centre stage in Davos

01/20/2023 - PIK Director Johan Rockström participated in the annual World Economic Forum (WEF) Meeting 2023 in Davos this week. In a first, science took centre stage in a Davos plenary session with Rockström outlining how climate change impacts economies around the world.
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Climate, Development, Economics - Kati Krähnert is a Professor at RWI and Bochum University

01/20/2023 - From Potsdam's Telegrafenberg to the Ruhr - since January 1, 2023, Kati Krähnert is Professor of Climate Change and Development at the Faculty of Economics at Ruhr University Bochum. There she researches how the lives of people in the Global South are affected by climate change and how policies need to be designed if they are to improve household climate resilience. She was appointed jointly by the Ruhr University and RWI - Leibniz Institute for Economic Research.
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Federal Research Minister visits PIK

01/09/2023 - The Federal Minister of Education and Research Bettina Stark-Watzinger has visited the Potsdam Institute for Climate Impact Research (PIK). She spoke for almost two hours with climate economist and PIK Director Ottmar Edenhofer, as well as with Administrative Director Bettina Hörstrup and Gunnar Luderer from the Copernicus research project ARIADNE on energy transition policy. Topics included the federal government's hydrogen strategy and research into economic models for extracting CO2 from the air and storing it underground, as well as research into energy systems.
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Press Release

Climate risk insurance can effectively mitigate economic losses

01/04/2023 - Global warming is expected to lead to an accumulation of particularly intense hurricanes in the United States. This may substantially increase the economic losses caused by these storms. Better insurance could effectively mitigate the climate change-induced increase in economic losses. This is shown in a new study by the Potsdam Institute for Climate Impact Research examining the effectiveness of climate risk insurance in the US.
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Press Release

Carbon dioxide removal should receive additional financial support

12/20/2022 - Cleaning up greenhouse gases after they have been emitted should be incentivized by subsidies. New evidence from an economic analysis considering international markets suggests an important reason why subsidies should be higher than the price put on carbon emissions to incentivize their reduction. In a first-of-its-kind study, researchers analyze policies for removing carbon dioxide from the atmosphere and storing it underground or in products. The suggested different pricing is not due to technological challenges, but linked to an economic effect called leakage.
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Statement

European Union to adopt emissions trading system for transport and heat

12/19/2022 - The European Union this weekend came to some decisions related to its climate policy, namely the EU Emissions Trading System. On this occasion, Ottmar Edenhofer, Director of the Potsdam Institute for Climate Impact Research (PIK) and the Mercator Research Institute on Global Commons and Climate Change (MCC), issued a PIK Statement.
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News

COP27 world climate summit: “Results are not good enough”

11/22/2022 – A COP failure was avoided, but it was only a very moderate success for the climate. While 1.5 as a global goal is still there on paper, COP27 does not offer a concrete plan on how to achieve that. These are, in a nutshell, the assessments by PIK Directors Ottmar Edenhofer and Johan Rockström just after the 27th edition of the world climate summit COP concluded on Sunday in Sharm el-Sheikh, Egypt. Positive outcomes of the summit include a first-of-its-kind set up of a ‘loss and damage fund’ that shall aim at compensating climate impacts for developing countries.
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Finding equity in climate mitigation finance: new study in 'Science'

11/18/2022- Considerations of equity in directing global financial flows for regional climate mitigation investments are critically important. It is in the leading journal 'Science' that team of researchers led by the International Institute for Applied Systems Analysis (IIASA) and including the Potsdam Institute for Climate Impact Research (PIK) published a new study to help inform climate policy. The researchers explored how global investments could be divided among the countries in the world. The team applied a systematic approach with different equity and fairness considerations and estimated the “fair” financial flows between regions.
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World climate summit COP27: Potsdam researchers highlight need for action

11/11/2022 - Climate policy-makers and experts are gathering in Sharm-el-Sheikh at the world climate summit COP27, amongst them researchers from the Potsdam Institute for Climate Impact Research. The negotiations hosted by the United Nations also make media worldwide reach out to science.
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Fossil fuels threaten health and life: Experts call for massive acceleration of the energy transition

11/03/2022 - The consequences of climate change are one of the greatest health risks of our time. This was stated by the Federal Minister of Health and the President of the German Medical Association together with PIK Director Johan Rockström and the organisation German Climate Change and Health Alliance (KLUG), that had invited to the Federal Press Conference. Together they advocate accelerating the energy transition in Germany and minimising greenhouse gas emissions. The background to this is a recently published report by the leading medical journal The Lancet, which highlights dependence on fossil fuels as a threat to health and life. The experts highlighted the fundamental importance of the report for Germany and what has to follow from it politically and in the German healthcare sector.
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Press Release

Economic losses from hurricanes become too big to be offset by the US if warming continues

10/17/2022 - Hurricane damages can increase due to increasing global temperatures, caused by greenhouse gas emissions from fossil fuels. Computer simulations of regional economic sectors and supply chains in the US now show that the resulting economic losses can at some point not be nationally offset under unabated warming. If too many factories and the like are hit by the hurricane and stop working, other countries will have to step in to provide the supply of goods, according to the scientists who did the study. The hurricane impacts under global warming will thus give the US an economic disadvantage, the warmer the more.
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Press Release

Green hydrogen: Short-term scarcity, long-term uncertainty

08/09/2022 - Green hydrogen from renewable electricity and derived e-fuels are uniquely valuable for achieving climate neutrality. They can replace fossil fuels in industry or long-distance transport where direct electrification is infeasible. However, even if production capacities grow as fast as wind and solar power, the growth-rate champions, green hydrogen supply remains scarce in the short-term and uncertain in the long term, a new analysis published in the journal Nature Energy shows.
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News

How global trade can help the climate

06/24/2022 - The climate policy potential of international trade rules agreed by the World Trade Organization (WTO) still has room for improvement. Policymakers should change some rules - and make greater use of others, according to an article now published in the leading scientific journal Science by experts from twelve countries, including researchers from the Potsdam Institute for Climate Impact Research (PIK).
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Press Release

How taxing the rich can help everyone

06/23/22 - Taxing rich peoples’ gains from capital can help reduce inequality while keeping up overall prosperity – yet only on two conditions. First, the revenues from taxation must be invested into public infrastructure such as schools, public transport, or sustainable energy grids. Second, it must be fairly possible to replace machines by labour. This is the outcome of a mathematical modelling study by a team of economists including US Nobel Laureate Joseph Stiglitz and led by the Potsdam Institute for Climate Impact Research.
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News

Emissions Trading for building and transport - new Ariadne analyses

06/22/2022 - The extension of the European Emissions Trading to the buildings and transport sector (ETS2) as a core element of the European Fit for 55 package has been the subject of heated political debate in the EU Parliament. Only recently, a compromise on ETS reform was reached. Two new studies by the Ariadne Project with the participation of PIK examine how fairness and solidarity can be preserved in the ETS 2 design.
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News

New PIK Podcast: Energy security crisis. Cost of living crisis. Climate Crisis. What's the way out?

06/17/2022 - We are in the middle of a global energy crisis. In the latest edition of the "Sustain Ability - The Potsdam Dialogues" podcast, Gunnar Luderer, Lead of the Energy Systems Research Group and Deputy Chair of the Department Transformation Pathways at the Potsdam Institute for Climate Impact Research (PIK), and Laura Cozzi, Chief Energy Modeler at the International Energy Agency (IEA), discuss what is needed to accelerate the clean energy transition away from fossil fuels towards renewables, especially with regard to the war in Ukraine and the resulting tensions between Russia and the West.
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News

Food sector emissions accounting: Sharing responsibility across the value chain

06/09/2022 - A new approach to account for emissions caused in the food sector that considers trade, as technical as it sounds, could help meet greenhouse gas reduction targets. Spreading the responsibility to reduce onto all countries along a product’s value chain could yield substantial effects, according to a study now published in Nature Communications.
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Press Release

Climate Economics: Policies change People

06/09/22 - The makers of climate policy should rethink about how people think: A team of researchers led by the Potsdam Institute for Climate Impact Research (PIK) shows that abiding by climate-friendly policies actually changes the way people think about what they do. People’s preferences are more malleable than textbook economics often assumes. The researchers’ advice to policy makers is to take changing preferences into account when tailoring policies like carbon taxes or building low-carbon infrastructure.
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News

PIK-Scientist Svenja Fluhrer awarded with Early Career Best Paper Award

06/03/2022 - Development economist Svenja Fluhrer was awarded with the prize "Ökonomie des Klimawandels - Early Career Best Paper Award" of the Federal Ministry of Education and Research. She received the award for her paper "Sitting in the same boat: Subjective well-being and social comparison after an extreme weather event", published in Ecological Economics.
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News

PIK Director Edenhofer speaks at G7 summit

06/02/2022 - The G7 finance ministers met last week in Bonn and Königswinter to agree on common positions in areas such as climate action, ensuring economic stability and other pressing issues, and also sought exchanges with the scientific community. PIK director and climate economist Ottmar Edenhofer spoke at the summit on carbon neutrality and climate clubs.
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News

PIK experts appointed to Berlin's "Klimaschutzrat"

05/13/22 - Two PIK researchers, Cornelia Auer and Julia Epp, have been appointed to the "Klimaschutzrat" of the city of Berlin. The 18-member body with experts from science, business and representatives of civil society will advise the Berlin Senate and the House of Representatives on issues of climate mitigation and energy policy.
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German Prize for Economics of the Joachim Herz Foundation for Linus Mattauch

09/05/2022 - Every other year, the Joachim Herz Foundation honours scientists in interdisciplinary research in economics for their significant contribution to the further development of economic research. This year, the award aimed to honour scientists in the field of 'environmental economics'. Prof. Dr. Linus Mattauch together with his colleague Jiaxin Zhao was awarded third place with their paper 'When Standards have better Distributional Consequences than Carbon Taxes'.
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News

Sustaining Peace Amidst the Climate Crisis: PIK Scientists at the Federal Foreign Office

04/05/2022 - How can data and innovative technologies be used for climate protection and crisis prevention?
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Why a new Emissions Trading System is needed in Europe to make road transport “Fit for 55”

04/28/2022 - The new Emissions Trading System proposed by the European Commission, the ETS2 – covering road transport and heating for buildings – is currently one of the most controversial topics in the European Parliament. To discuss it, stakeholders from science, business, civil society and policy gathered at a webinar organised by the Potsdam Institute for Climate Impact Research (PIK), the Mercator Research Institute on Global Commons and Climate Change (MCC), and the European Automobile Manufacturers' Association (ACEA) this week. Around 150 participants joined the event.
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News

Citizen participation for energy transition in Hesse and Berlin

04/25/2022 - Citizen participation is an important element of modern policy for the energy transition. Sociologist Fritz Reusswig from the Potsdam Institute for Climate Impact Research is involved in corresponding approaches in the two federal states of Hesse and Berlin and will be participating in events there this week. His research group works, among other things, on energy conflicts.
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Press Release

European Union appoints Edenhofer to Scientific Advisory Board on Climate Change

03/24/2022 - The European Climate Law adopted in 2021 provides for the establishment of a European Scientific Advisory Board on Climate Change to support achieving climate neutrality in the European Union by 2050. The European Environment Agency now appointed economist Ottmar Edenhofer to this unique new board which will meet for the first time this Friday. Edenhofer is Director of the Potsdam Institute for Climate Impact Research and the Mercator Research Institute on Global Commons and Climate Change as well as Professor at Technische Universität Berlin. The Advisory Board will give independent scientific advice and produce reports on EU policies and their coherence with the Climate Law and the EU's commitments under the Paris Agreement.
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Press Release

Science Platform for Climate Protection submits report to German government

02/18/2022 - Today, the Science Platform on Climate Protection' delivered its first annual report to the German government. Sabine Schlacke, Director of the Institute for Energy, Environmental and Maritime Law at the University of Greifswald, and economist Ottmar Edenhofer, Director of the Potsdam Institute for Climate Impact Research, presented the group's insights at the Federal Press Conference. Their recommendations were well received by Federal Research Minister Bettina Stark-Watzinger and the State Secretary at the Federal Ministry of Economics and Climate, Patrick Graichen.
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Press Release

Rainy days harm the economy

12/01/2022 - Economic growth goes down when the number of wet days and days with extreme rainfall go up, a team of Potsdam scientists finds. Rich countries are most severely affected and herein the manufacturing and service sectors, according to their study now published as cover story in the renowned science journal Nature. The data analysis of more than 1.500 regions over the past 40 years shows a clear connection and suggests that intensified daily rainfall driven by climate-change from burning oil and coal will harm the global economy.
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Press Release

Climate policy: How to protect emissions trading from excessive financial speculation

12/15/2021 - CO2 emissions trading – a key element of EU climate policy – can be protected from distortions driven by financial speculators, a new report shows. The price for CO2 emissions allowances in the EU cap-and-trade scheme has almost tripled in the course of this year, and is now subject to unprecedented volatility levels. Financial speculation is increasingly blamed for this price rally, but evidence is lacking whether this can actually endanger the functioning of the trading system for the most relevant greenhouse gas. The researchers propose tools to detect speculation, evidence a substantial risk from a new breed of investors, and suggest improvements for market oversight.
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