State of Energy Policy 2026 – Analysis - IEA State of Energy Policy 2026 - Analysis and key findings. A report by the International Energy Agency.

Here are the links to the reports

IEA: www.iea.org/reports/stat...

GCPP: salatainstitute.harvard.edu/building-a-c...

How? By joining forces on carbon pricing, e.g. for heavily traded goods like steel and aluminum, countries can both protect competitiveness and advance climate goals.

A complementary way to drive action is to support decarb investments, as the EU is doing in India through the free trade agreement.

Countries endorse new multilateral coalition on compliance carbon markets at COP30

As you can see from the dotted line on the IEA graph, many of the carbon price levels are not in the “highest stringency” category, meaning the prices are low.

This is the gap that the Open Coalition, launched by Brazil at COP30, is well-positioned to address.

icapcarbonaction.com/en/news/coun...

How Carbon Border Adjustments Might Drive Global Climate Policy Momentum

Credit where it’s due: #CBAM deserves much of the credit for this recent explosion in carbon pricing. Huge kudos to the EU.

www.rff.org/publications...

The 2nd, from Global Climate Policy Project at Harvard and MIT's flagship “Building a Climate Coalition” report from Sept ‘25, shows that when you zero in on the #cbam sectors and add carbon pricing policies enacted but not yet in force (e.g., Brazil and India), over 80% of emissions are covered!!

The share of industrial emissions covered by a carbon price increased dramatically in 2025 to 58%.

A 🧵on two of my all-time favorite charts.

The 1st, just published by the @iea.org in the “State of Energy Policy 2026” report shows that more than half of industrial CO2 emissions are now covered by carbon pricing. Reports linked below.

Russian Oil Revenues Nearly Doubled in March

Ugh.

www.nytimes.com/2026/04/14/w...

Warren, Shaheen, Schumer Release Joint Statement Urging Trump Administration Not to Extend Sanctions Relief for Russian Oil | United States Committee on Banking, Housing, and Urban Affairs The Official website of The United States Committee on Banking, Housing, and Urban Affairs

29 days ago, the Trump Administration removed sanctions on Russian oil for 30 days. Hopefully, they don't extend that relief tonight.

www.banking.senate.gov/newsroom/min...

BREAKING: $4 is back. The national average has just reached $4/gal according to GasBuddy, the highest since August 8, 2022. The rise is now the largest monthly increase GasBuddy has ever recorded: $1.059/gal for gasoline, $1.701/gal for diesel.

To what extent can the EU's carbon border adjustment mechanism spur global climate action?

J posted on @bruegel.org: "We find that countries with greater trade exposure to CBAM are significantly more likely to adopt carbon pricing policies following the European Commission’s announcement of the carbon border measure in 2019."

Can't wait to see the paper!

www.bruegel.org/newsletter/w...

The DROP Act contains a provision along these lines.

www.mccormick.senate.gov/news/press-r...

Opinion | How to Punish Russia, Make Money and End the War

Glenn Hubbard and I proposed one solution to that: charge a "tariff" on Russian oil sales.

www.nytimes.com/2025/03/27/o...

Completely agree re enforcement, but my preference would be to use the ultimate enforcement tool - secondary sanctions - on caps. Even the threat of those in late Oct. '25 led to huge Urals discounts.

This is one of the beauties of the price cap, in my view: sanctioning countries could impose harm on Russia without imposing harm on ourselves.

Also, embargoes are imperfect and could have ended up benefitting Russia if the remaining barrels they managed to sell were much more profitable.

For one, embargoes hurt both the sanctioning countries and the sanctioned, so they end up being games of chicken where each side is waiting for the other to relent. When the sanctioned are ruled by people like Putin or Khamenei, I think there’s no way the West wins.

I am a big fan of most of what @robin-j-brooks.bsky.social says about Russian oil but disagree strongly w this Substack.

As usual, very well said by @crampell.bsky.social.

'Carbon pricing at Europe's borders is a good idea, but it has clear limits' OP-ED. Economists Christian Gollier, Axel Ockenfels and Catherine Wolfram warn of the risk posed to Europeans by the lack of ambitious, reciprocal climate commitments from their economic partners.

#CBAM: 'Carbon pricing at Europe's borders is a good idea, but it has clear limits', by Christian Gollier, Axel Ockenfels & @cwolfram.bsky.social | Le Monde www.lemonde.fr/en/opinion/a...

Statements like this from Trump will make the oil market reaction *worse*

No one who has any idea how the oil market works is buying it—all this does is make it seem like Trump believes it, which means the base case length of this disruption is growing ever-longer.

Tick. Tock.

📊 Chart of the week: EU nitrogen fertiliser prices

Exempting fertilisers from CBAM would achieve little while risking climate progress, argue @kclausing.bsky.social, Ignacio García Bercero, @mpereboom.bsky.social & @cwolfram.bsky.social

🔗Read the First Glance: buff.ly/HdgPdrT
#EconSky

Holding the line on the EU carbon border adjustment mechanism Exempting fertilisers from CBAM would achieve little while risking climate progress

New piece out @bruegel.org with Ignacio García Bercero, @mpereboom.bsky.social, and @cwolfram.bsky.social.

In which we describe why exempting fertilizer from the EU's CBAM will do little to nothing for farmers, while weakening an important climate policy tool.

www.bruegel.org/first-glance...

If courts uphold Trump's attack on the EPA's ability to regulate GHGs, climate progress gets a lot harder in the US, but legislation to pass carbon pricing has a procedural advantage since it could be enacted through budget reconciliation with a simple majority.

Countries are responding by adopting their own carbon prices and now other countries, like Australia and Turkey, are considering their own CBAMs, which is like another spin of the flywheel.

www.dcceew.gov.au/climate-chan...

⚙️ A flywheel takes effort to start. But once it spins, each rotation makes the next one easier. The EU’s #ETS and #CBAM have set that momentum going.

Europe Must Not Abandon Its Climate Ambitions Catherine Wolfram highlights three recent developments that underscore why the bloc should maintain its carbon-pricing system.

I'm pleased to share my recent column in Project Syndicate.

⚙️ I argue that we can think of Europe’s climate leadership as a policy flywheel.

Europe Must Not Abandon Its Climate Ambitions by Catherine Wolfram @projectsyndicate.bsky.social prosyn.org/KliboFD

#18 Kimberly Clausing - The Global Effects of CBAM: Quantifying Benefits, Costs, and Leakage - Climate Economics with Arvid Viaene Climate policy faces a built-in incentive problem: countries bear the costs of domestic regulation, while the benefits of lower CO₂ are shared globally. One proposed solution is a Carbon Border Adjust...

(1/2) Such a pleasure discussing the importance of the EU CBAM for climate policy with Arvid Viaene. Listen to his podcast to hear more about our work on the Global Effects of CBAM, with @allanhsiao.bsky.social @cwolfram.bsky.social and
@jmcolmer.bsky.social.

www.buzzsprout.com/2412056/epis...

McCaul, Colleagues Introduce Bipartisan Legislation to Cripple Russian Oil Revenue WASHINGTON – Today, U.S. Representative Michael McCaul (R-Texas) — chairman emeritus of the House Foreign Affairs Committee — introduced the Decreasing Russian Oil Profits (DROP) Act of 2026.

The DROP Act is introduced in the House with a heavy-hitting set of co-sponsors.

mccaul.house.gov/media-center...

EU-India trade deal leaves bloc's carbon border tariff intact A landmark trade deal struck by India and the European Union on Tuesday will not trigger any changes to the bloc's carbon border tariff, EU officials said, despite India's concerns over the scheme.

Good news re #CBAM in the EU-India trade deal: It's intact, and, even better, the EU committed not to give other countries a break. They also committed to support decarbonization in India to the tune of 500 million euros.

www.reuters.com/sustainabili...

New EU carbon tariff pushes India toward green steel Europe’s pioneering tax on polluting imports presents India’s coal-reliant steelmakers with a choice: Decarbonize or risk losing customers.

Yes, EU CBAM pushing Indian steel producers toward greener production processes.

I only wish people would stop referring to #CBAM as a tariff. Tariffs treat foreign and domestic producers differently, while a CBAM levels the playing field. More like a VAT.

www.canarymedia.com/articles/gre...

Anyone in #Canada selling swag off @mark-carney.bsky.social speech yet? A "Take Down the Sign" hat? Or too American?
@blakeshaffer.bsky.social