A public policy is a plan specification that is an effort made by a government to alter aspects of its own or social behaviour in order to carry out some end or purpose and is comprised of complex arrangements of policy goals and policy means. Howlett, Michael. "Policy design: What, who, how and why." L’instrumentation de l’action publique: Controverses, résistances, effets (2014): 281-316. https://www.sfu.ca/~howlett/documents/chapter%209.MH%20copy.pdf public policy A policy goal is an objective specification for a public policy wherein a government determines operationalizable policy objectives including specific policy targets. The aim of a policy goal is to guide decision-making. Howlett, Michael. "Policy design: What, who, how and why." L’instrumentation de l’action publique: Controverses, résistances, effets (2014): 281-316. https://www.sfu.ca/~howlett/documents/chapter%209.MH%20copy.pdf policy goal A target is a policy goal that contains statements about a desired future state of a system that an organization/association/municipaliy/region/country commits to in either a legally binding or non-legally binding way. target A binding target is a target that is legally enforceable. Adapted from CPDB: https://climatepolicydatabase.org/ binding target A non-binding target is a target that is not legally enforceable. Adapted from CPDB: https://climatepolicydatabase.org/ non-binding target A sectoral target is a target for a specific sector. sectoral target NDC commitment, net-zero GHG emission, and climate-neutrality targets A climate target is a target for greenhouse gas (GHG) emission reduction within a defined timeframe. Adapted from CPDB: https://climatepolicydatabase.org/ climate target An economy-wide target is a target for a whole economy. Adapted from CPDB: https://climatepolicydatabase.org/ economy-wide target A policy instrument is an action specification by which a government aims to achieve its objectives. Howlett, Michael. "Policy design: What, who, how and why." L’instrumentation de l’action publique: Controverses, résistances, effets (2014): 281-316. https://www.sfu.ca/~howlett/documents/chapter%209.MH%20copy.pdf policy instrument An information instrument is a policy instrument that aims to provide knowledge to persons and/or institutions. equivalent to CPR Information / Hood Nodality; CPDB "Information provision"; in Vedung "A fundamental policy instrument involving measures undertaken to influence addressees through the transfer of knowledge, communication of reasoned argument, persuasion, advice" (Public Policy and Program evaluation, p. 300) information instrument adoption of renewable energy, adoption of nuclear energy, etc. A technology adoption target is a target for the adoption of a specific energy technology within a defined timeframe. technology adoption target An energy efficiency target is a target for efficient energy use within a defined timeframe. Adapted from CPDB: https://climatepolicydatabase.org/ energy efficiency target An economic instrument is a policy instrument that hands out or takes away material resources while the addressees are not obligated to take the measures involved. Vedung economic instrument An education instrument is an information instrument that aims at teaching skills to specific groups of people. education instrument The Irish government published advertisements across media platforms to encourage energy savings and provide advice on energy-saving measures. https://www.iea.org/policies/15459-a-nationwide-campaign-to-encourage-energy-efficiency-and-highlight-available-supports A public information campaign is an information instrument where a government directs and sponsors efforts to communicate information to large numbers of citizens. Bemelmans-Vedec, Rist and Vedung, p. 12 public information campaign experts employed by the German government provide advice on building efficiency ("Energieberatung": https://www.energiewechsel.de/KAENEF/Redaktion/DE/Dossier/energieberatung-uebersicht.html) An implementation aid is an education instrument that provides assistance to actors engaging in desired activities. Adapted from CPDB: https://climatepolicydatabase.org/ implementation aid curricula and learning objectives focused on climate change, see : https://unesdoc.unesco.org/ark:/48223/pf0000379591 A change to public education is an education instrument which changes what is taught in public schooling to focus on promoting desired behavior. change to public education A training program is an education instrument that promotes learning for professionals to obtain, improve or retain skills, knowledge, tols, equipment or other resources to do their work competently. adapted from CPDB, professional training and qualification; part of definition from EEA: https://climate-adapt.eea.europa.eu/en/metadata/adaptation-options/capacity-building-on-climate-change-adaptation training program https://www.iea.org/policies/17844-cooperative-training-at-coal-sites-in-north-rhine-westphalia Vocational training is a training program that prepares people with specific skills for technical or trades work. vocational training A levy is an economic instrument that consists of a compulsory financial charge imposed on an agent or institution by a governmental organization. levy A carbon tax is a tax on carbon or other greenhouse gas emissions, measured in CO2 equivalent values. GHG emissions tax greenhouse gas emissions tax Adapted from CPDB: https://climatepolicydatabase.org/ carbon tax An energy tax is a tax imposed on the production, sale, or consumption of energy sources, including fuels and electrcity, typically calculated based on the quantity or type of energy used. Adapted from CPDB: https://climatepolicydatabase.org/ energy tax higher vehicle registration fees for high-emissions vehicles An increased charge is a fee imposed by the government on certain undesirable goods or behaviors. Adapted from "user charges" in CPDB: https://climatepolicydatabase.org/ increased charge A feebate is an economic instrument that combines a fee and a rebate system to influence behavior. Actors whose activities exceed a defined threshold pay a surcharge ("malus"), while those who perfomr better than the threshold receive a financial reward ("bonus"). A feebate is typically designed to be revenue-neutral. bonus/malus scheme https://academic.oup.com/ej/article-abstract/124/578/F444/5076980, https://www.tandfonline.com/doi/pdf/10.1080/15568318.2018.1437237 feebate A removal of fossil fuel subsidies is a financial incentive which abolishes or reduces existing subsidies for fossil fuels, either at the production or consumption ends. Adapted from CPDB: https://climatepolicydatabase.org/ removal of fossil fuel subsidies A financial incentive is an economic policy instrument used by the state to encourage targeted products or actiities by provising economic support to selected actors. Beneficiaries typically receive this support through mechanisms such as soft loans, grants, market premiums, and tax reductions. financial incentive the German 9 Euro ticket to promote using public transport A fee decrease is a financial incentive where the government supports targeted activities by reducing existing fees or charges for the targeted activities. Adapted from "user charges" in CPDB: https://climatepolicydatabase.org/ fee decrease A company that is not yet profitable can apply to receive a refund on VAT for renewable energy equipment. A tax rebate is a tax incentive where governments return taxes already paid to correct overpayment. tax refund tax rebate Income from feed-in tariffs is not taxable. NGOs do not pay taxes. A tax exemption is a tax incentive where the government does not count certain income or transactions as taxable, or declares certain entities to be fully tax-exempt. Steuerfreie Einnahmen tax exclusion https://www.congress.gov/crs-product/RL30110 tax exemption A retirement premium is a financial incentive where the government provides support for the early retirement of emissions-intensive or inefficient assets. Adapted from CPDB: https://climatepolicydatabase.org/ retirement premium A market premium is a financial incentive that ensures additional remuneration on top of market prices, or a guaranteed renumeration by paying to the producing agent the difference between a guaranteed return on a product and the monetary price for which the product is traded on the market. market premium An accelerated depreciation rule is a tax deduction where the government allows sustainable projects to depreciate (part of) the investment in the early years of the asset's life, effectively reducing their taxable income during these years. Hafner and Lilliestam, 2019 accelerated depreciation rule fossil fuel vehicle swap or scrappage schemes A product retirement premium is a retirement premium that applies to emissions-intensive products used by consumers. product retirement premium payments for early closure of coal-fired power plants An asset retirement premium is a premium for the early closure of certain assets. asset retirement premium payments for larve-scale battery installations A capacity premium is a market premium that guarantees remuneration for reserving electric capacity to be available for unexpected events. capacity premium FIT A feed-in tariff is a market premium where energy producers are paid fixed prices for every unit of energy fed into the grid for a number of years in the future. feed-in tariff A feed-in premium is a market premium where energy generators are paid a premium on top of the price they achieve in the electricity market, for electricity fed into the grid for a number of years in the future. FIP feed-in premium An auction with market premium is a market premium granted in a bidding competition or auction, wherein tendered capacity includes additional support through a mechanism such as a feed-in tariff, feed-in premium, or contract for difference. auction with market premium A grant is a financial incentive where the government provides non-repayable funding for specific purposes. Adapted from CPDB: https://climatepolicydatabase.org/ grant A purchase grant is a grant to support the acquisition of specific products. It reduces the upfront cost for buyers, making the targeted product more affordable and attractive. purchase subsidy purchase grant low-interest loan for a company to build charging infrastructure, or for a person to purchase an EV A soft loan is a loan provided by the government at preferential conditions to lower financing costs. Hafner & Lilliestam 2019 soft loan A loan guarantee is a financial incentive where the government guarantees to pay the loan should the project go bankrupt, lowering the default risk and therefore the required returns on debt and/or equity. Hafner & Lilliestam 2019 loan guarantee A direct investment is an economic instrument in which the government supports targeted activities or products by directly purchasing, investing in, or producing them through public agencies, institutions, or utilities. direct investment A direct infrastructure investment is a direct asset investment in infrastructure projects. Adapted from CPDB: https://climatepolicydatabase.org/ direct infrastructure investment Direct research and development funding is a direct investment by the government in public research institutions or projects. direct R&D funding Adapted from CPDB: https://climatepolicydatabase.org/ direct research and development funding power purchase agreements if the offtaker is a state entity; purchase of a fleet of electric buses by a city for public transit Green public procurement is a direct investment where a government purchases a green good or service directly. Adapted from CPDB: https://climatepolicydatabase.org/ green public procurement A trading scheme is an economic instrument in which a standard is set for environmental performance, and then performance certificates or credits can be traded in a marketplace to incentivize or discourage targeted activities. Adapted from CPDB: https://climatepolicydatabase.org/ trading scheme A greenhouse gas emissions trading scheme is a trading scheme wherein governments issue tradable emissions certificates, often combined with a fixed emissions cap (overall or set on specific actors), thereby setting economic incentives to reduce emissions. GHG emissions trading scheme carbon markets Adapted from CPDB: https://climatepolicydatabase.org/ greenhouse gas emissions trading scheme A white certificate trading scheme is a trading scheme where the government has established a quota for the generation of tradeable energy savings certificates produced by energy efficiency activities OR reduced energy consumption measured against a baseline; these can be traded to incentivize emissions reductions. Adapted from CPDB: https://climatepolicydatabase.org/ white certificate trading scheme A green certificate trading scheme is a trading scheme where producers of renewable electricity receive tradeable certificates for each unit of electricity generated. These certificates can then be sold separately from the electricity itself, typically to energy suppliers who are obligated via a quota to source a certain share of their electricity from renewables. This creates a market for certificates, providing a financial incentive for renewable energy investment and production. Adapted from CPDB: https://climatepolicydatabase.org/ green certificate trading scheme Clean Development Mechanism An offsetting scheme is a trading scheme where mitigation activities can calculate their impact against a baseline to obtain credits which can be sold for offsetting purposes such as baseline-and-credit schemes. This differs from an emissions trading scheme in that it does not have a cap, and can avoid emissions rather than reducing them. offsetting scheme A regulatory instrument is a policy instrument that is a measure taken by governments which mandate receivers to act in accordance with what is ordered in formulated rules and directives. Such rules prescribe the abandonment or adoption of desired processes, technologies, products or results. Failure to comply may incur financial penalties and/or legal sanctions. Adapted from Vedung and IPCC. regulatory instrument A zoning and spatial planning regulation is a regulatory instrument that determines where objects can exist in space: either where something can be built/used, or what kinds of things can be built in specific geographic locations. zoning and spatial planning regulation A location regulation is a zoning and spatial planning regulation that determines where objects or related infrastructure can be built or used. location regulation the distances between a wind turbine and a residential building, railroads, transmission line, and bodies of water A setback distance is a location regulation that sets a minimum distance between objects. https://www.nrel.gov/news/program/2022/nrel-releases-comprehensive-databases-of-local-ordinances-for-siting-wind-solar-energy-projects.html setback distance a regulation establishing an exclusion zone where wind turbines may not be built due to legal, environmental or safety concerns An exclusion area regulation is a location regulation that excludes a certain area from being eligible for objects to be built or entered. Adapted from Bucha and Ramirez Camargo, “Deliverable D2.10 Data on Regulatory and Socio-Economic Conditions and Impacts (b).” Dec. 2024 exclusion area regulation A low emissions zone is a two-dimensional spatial region where vehicles with higher emissions are prohibited from entering due to an exclusion area regulation. Adapted from EU urban access regulations: https://urbanaccessregulations.eu/low-emission-zones-main low emissions zone A characteristic regulation is a zoning and spatial planning regulation that determines what kinds of objects or related infrastructure can be built or used in specific locations. characteristic regulation a regulation establishing noise limits for wind turbines in residential areas A noise limit is a characteristic regulation that sets the maximum amount of noise output allowable within the area where the regulation applies. adapted from Bucha and Ramirez Camargo, “Deliverable D2.10 Data on Regulatory and Socio-Economic Conditions and Impacts (b).” Dec. 2024. noise limit a regulation establishing a shadow flicker limit for wind turbines A shadow flicker limit is a characteristic regulation that sets the maximum effect of the sun (low on the horizon) shining through the rotating plades of a wind turbine, casting a moving shadow. https://windexchange.energy.gov/projects/shadow-flicker shadow flicker limit height limitation for a wind turbine A height restriction is a characteristic regulation that sets a maximum height for any energy infrastructure objects. height restriction a rotor size limitation on a wind turbine A rotor size restriction is a characteristic regulation that sets a specific limit on the rotor size for any energy infrastructure object. rotor size restriction A standard is a regulatory instrument that defines requirements for products, production processes, services, or test methods. EU, on European standards - https://single-market-economy.ec.europa.eu/single-market/european-standards_en standard A performance standard is a standard that sets required levels of performance (in terms of emissions, efficiency, etc.) but actors are free to choose the technologies and methods for how they will do so. Adapted from IPCC performance standard An industrial air pollution standard is an emissions cap that is mandatory and regulates the emission of polluting substances by industry actors, including but not limited to greenhouse gases. Adapted from CPDB: https://climatepolicydatabase.org/ industrial air pollution standard A sectoral emissions cap is an emissions cap that sets out the maximum amount for how much actors are allowed to emit or pollute. May be a refulatory element of a trading system. https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/emissions-cap-and-allowances_en sectoral emissions cap An emissions cap is a performance standard that sets a cap on emissions or pollution, either total per actor/sector, or per unit of output. emissions standard pollution cap pollution standard https://www.sciencedirect.com/science/article/pii/S0095069612000046?via%3Dihub emissions cap A building emissions standard is an emissions cap that regulates the allowable levels of pollution or CO2 emissions associated with the building, such as heating systems. building emissions standard A vehicle air pollution standard is a product emissions standard for vehicles, for the maximum emissions of substances such as greenhouse gas emissions, hydrocarbons, oxides of nitrogen and particulate matter they can emit. vehicle emissions standard Adapted from CPDB: https://climatepolicydatabase.org/ vehicle air pollution standard A vehicle fuel-economy standard is a product efficiency standard for vehicles that determines a minimum fuel-efficiency threshold. vehicle efficiency standard Adapted from CPDB: https://climatepolicydatabase.org/ vehicle fuel-economy standard minimum shares of zero-emission vehicles or of renewable electricity A quota is a standard wherein a quantified obligation is imposed on some actor to acquire, use, install etc. a certain quota of a clean good or service. These may or may not be tied to trading schemes like green or white certificate schemes. These may be either technology or performance standards. adapted from European Commission, Bertoldi and Rezessy 2006, https://publications.jrc.ec.europa.eu/repository/bitstream/JRC32865/2865-white_cert_report_final.pdf quota A technology standard is a standard that requires a specific technology, process, or product. They typically take one of four forms: requirements for specific pollution abatement technologies; requirements for specific production methods; requirements for specific goods such as energy efficient appliances; or phase-out mandates. IPCC technology standard A smart meter installation requirement is an installation requirement that mandates the installation of smart meters. https://www.smart-energy.com/regional-news/europe-uk/germany-mandates-smart-metering-from-2025 smart meter installation requirement A moratorium is a technology standard that forbids an activity, technology or product because of its environmental harms. ban Adapted from CPR moratorium government standard that any vehicles purchased by public actors must meet certain emissions thresholds A public procurement standard is a standard set by a government for public goods. These can be technology-specific or performance-based. public procurement standard all ministry actions must comply with carbon budget ceilings. https://www.lse.ac.uk/granthaminstitute/publication/impacts-of-climate-framework-laws/ A public sector mandate is a standard which requires public bodies decision-making to align with government targets. public sector mandate rules that prohibit using offsetting as part of emissions calculations An offsetting rule is a standard which establishes greenhouse gas emission reductions crediting and offsetting regulations. Adapted from CPDB: https://climatepolicydatabase.org/ offsetting rule A disclosure standard is a standard that requires an actor to publicly disclose and substantiate claims on environmental impacts. disclosure obligation disclosure standard labeling standards for building energy efficiency A comparison label standard is a disclosure standard which requires participation in consumer-oriented labelling schemes. These schemes provide a rating of a certain good or service against a pre-determined scale, allowing for a comparison across products. Adapted from CPDB: https://climatepolicydatabase.org/ comparison label standard EU SFDR A financial disclosure standard is a disclosure standard which requires companies to disclose how the transition risks from shifting to a low-carbon economy and physical climate change impacts may affect their business or asset values. Adapted from IPCC 2022. financial disclosure standard EU CSRD A supply chain disclosure standard is a disclosure standard that requires firms to disclose information on the risks and opportunities arising from environmental issues, and on the impact of their activities on the environment. supply chain disclosure standard EU Green Claims Directive https://environment.ec.europa.eu/topics/circular-economy/green-claims_en A green advertisement standard is a disclosure standard on companies that make claims about their environmental impact to adhere to standards which may include disclosing their assessment methodology, verification by an independent third party, and greenhouse gas offsetting. green advertisement standard French "corporate vigilance" law A due diligence obligation is a standard requiring companies to identify and address potential and actual adverse impacts in a company's operations. due diligence obligation the EU Corporate sustainability due diligence directive (CSDDD), https://www.csr-in-deutschland.de/EN/Business-Human-Rights/Supply-Chain-Act/supply-chain-act.html and https://commission.europa.eu/business-economy-euro/doing-business-eu/sustainability-due-diligence-responsible-business/corporate-sustainability-due-diligence_en A supply chain due diligence obligation is a due diligence obligation for companies to address risks to not only their own operations, but also their subsidiaries and business partners. supply chain due diligence obligation creation of a new government agency or body Institutional creation is a regulatory instrument that creates an institution. Adapted from CPDB: https://climatepolicydatabase.org/ institutional creation Market design regulation is a regulatory instrument that sets out the permitted roles and interaction procedures for market actors, including who can participate and how prices are determined. market design regulation Adapted from CPDB: https://climatepolicydatabase.org/ Grid access and priority for renewables is a market design regulation that gives priority to renewable energy production and guarantees full purchase of their electricity. grid access and priority for renewables Grid operators cannot refuse connection of a heat pump, but they may be allowed to switch off the device if there is an acute threat of overloading their networks. A rule on integrating controllable devices is a market design regulation for the interactions between grid operators and controllable consumer devices. https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/EN/2023/20231127_14a.html rule on integrating controllable devices https://www.ceer.eu/publication/ceer-recommendations-on-dynamic-price-implementation/ A rule on dynamic pricing is a market design regulation which allows for dynamic pricing, setting electricity prices for consumers to reflect the price variation at the spot markets. rule on dynamic pricing An independent power production policy is a market design regulation which allows non-governmental actors to generate electricity. independent power production policy https://www.sciencedirect.com/science/article/pii/S0960148119301004 A net metering policy is a market design regulation which allows consumers who generate their own electricity to also buy and sell electricity from the grid. net billing policy net metering policy A company sells electricity directly to a data center, rather than to a utility. A direct purchasing regulation is a market design regulation that allows independent power producers to sell electricity to other actors. This implies a bilateral contract between an electricity producer (often a renewable energy developer) and a buyer. power purchase agreement direct purchasing regulation A self-consumption policy is a market design regulation which allows individuals to produce and consume their own power. self-consumption policy https://www.researchgate.net/publication/371389707_Prufung_einer_Landesregelung_zur_finanziellen_Be-_teiligung_an_Windenergieanlagen_an_Land_fur_den_Freistaat_Sachsen_Executive_Summary Citizen financial participation is a market design regulation which allows residents and communities to become partial owners of energy assets. citizen financial participation A voluntary instrument is a policy instrument where government acts in a coordinating role, but not as a central designer and implementer of policies; measures may be initiated by governments, but also non-state actors such as firms or NGOs. IPCC 2018, see especially p. 95 voluntary instrument A public-private partnership is a voluntary collaborative relationship between various parties, both state and non-state, in which all parties work together to achieve a common purpose or specific task and share risks, responsibilities, resources, and benefits. PPP Kolati and Raghutla 2023, Hodge and Greve 2011 public-private partnership eco-labels such as the German Blue Angel, Nordic Swan, or US Energy Star A public voluntary scheme is a voluntary instrument where a regulator develops a program or performance criteria with which industries and firms can choose whether or not to comply. public voluntary scheme A negotiated agreement between the public and private sector is a voluntary instrument where governments and the private sector establish a set of targets for environmental issues. The precise terms of the agreement vary in terms of what information must be reported and how this is audited, whether or not the targets are legally binding, etc. In most instances, agreements are negotiated to avoid direct regulation or market-based instruments. Penasco 2021, Bailey 2008 negotiated agreement between the public and private sector the Powering Past Coal Alliance led by the UK and Canada, where joining members commit to accelerating the transition from coal to clean energy https://poweringpastcoal.org/ An international agreement is an agreement between international actors which sets targets for environmental issues, to which other actors can choose to commit. This commitment and targets can be binding or not. international agreement A tax is a levy imposed by the government that is not tied to a specific benefit or service. tax A fee is a levy imposed by the government in exchange for provding a specific good or service. charge fee the removal of vehicle registration fees for electric vehicles A fee exemption is a financial incentive where the government supports targeted activities by exempting them from existing fees or charges. Adapted from "user charges" in CPDB: https://climatepolicydatabase.org/ fee exemption A tax incentive is a financial incentive where the government reduces or exempts selected activities, goods, or actors from taxes. Adapted from CPDB: https://climatepolicydatabase.org/ tax incentive A lower VAT rate for renewable energy equipment A tax reduction is a tax incentive where the government reduces taxes for selected activities, goods or actors. Adapted from CPDB: https://climatepolicydatabase.org/ tax reduction Homeowners can deduct 40% of the cost of renewable energy renovations (e.g. solar, passive house improvements) from their income tax. A tax deduction is a tax incentive where actors can reduce their base taxable amount. tax deduction Companies that make investments in solar or bioenergy can reduce their tax burden by 8% of the investment costs. In this way, the tax burden can be reduced by a maximum of 35%. A tax credit is a tax incentive where the calculated taxes owed to the government are reduced, either as a percentage of taxes owed or as a currency amount. Adapted from https://www.cleanenergyresourceteams.org/what-you-need-know-about-ira-tax-credit-vs-rebate tax credit A fixed feed-in premium is a feed-in premium where producers receive a fixed amount of excess revenue on top of the market price. fixed FIP https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52022DC0638)22DC0638 fixed feed-in premium A floating premium is a feed-in premium with a variable subsidy which complements the market price. sliding premium https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52022DC0638; https://www.sciencedirect.com/science/article/pii/S0140988316302377#fn0030 floating premium A feed-in premium with floor price is a floating premium where, if market price is below the targeted subsidy, producers receive support that covers the gap, and if market price is higher, they can keep the excess revenue. FIP with floor price one-sided sliding FIP https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52022DC0638 feed-in premium with floor price 2-sided premium two-sided premium A symmetrical premium is a floating premium which has both a floor and ceiling price whereby positive and negative deviations are paid out to the contractual partner. This means that a minimum compensation is guaranteed, but revenues are capped. https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52022DC0638 symmetrical premium the UK CfDs between electricity providers and a government-owned company https://www.gov.uk/government/collections/contracts-for-difference A contract for difference is a feed-in premium wherein a public entity concludes a contract to encourage investment. It tops up the market price paid for goods if the price is below a certain level, but if the market price is above a certain level the provider must pay back the excess. https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1593 contract for difference symmetrical CfD two-sided CfD two-sided contract for difference A symmetrical contract for difference is a feed-in premium wherein a public entity (typically the state) concludes a contract with a provider, which sets an agreed-upon "strike price." The provider sells their goods in the market but then settles the difference between the market price and the strike price with the public entity. In a symmetrical contract for difference, if the market price is below the strike price, the provider receives the difference; if the market price is above the strike price, the provider pays back the difference. https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1593 symmetrical contract for difference A research and development grant is a grant to support research and development. R&D grant research & development grant research and development grant A loan is a financial incentive where the government provides repayable funding to reduce risk and facilitate access to financing for specific purposes. loan purchasing stakes in a firm, purchasing a power plant, constructing and operating infrastructures A direct asset investment is a direct investment by the government in assets. direct asset investment A direct power generation investment is a direct asset investment in power generation capacity. direct power generation investment roof area limitation for installing rooftop PV An area limitation is an exclusion area regulation that limits the area in which objects can be built. area limitation a regulation establishing an installed capacity limitation for rooftop PV An installed capacity limitation is a characteristic regulation that sets limits on the maximum installed capacity of a particular object or renewable generation site. installed capacity limitation A product emissions standard is an emissions cap for specific products to limit their emissions/pollution. Adapted from CPDB: https://climatepolicydatabase.org/ product emissions standard A fuel air pollution standard is a product emissions standard that sets out emissions and pollution requirements for fuel. fuel emissions standard https://climate.ec.europa.eu/eu-action/transport/fuel-quality_en NOTE: some policy instruments called "fuel standard" are a combination of a performance standard and an emissions trading system (like Canada's LCFS - see https://www.sciencedirect.com/science/article/pii/S0301421523005049). fuel air pollution standard An energy use cap is a performance standard that sets a cap on energy use, either total per actor/sector, or per unit of output. efficiency standard energy use cap A product efficiency standard is an energy use cap for specific products to limit their energy intensity. Adapted from CPDB: https://climatepolicydatabase.org/ product efficiency standard A sectoral energy use cap is an energy use cap that sets the maximum amount for how much energy actors in a certain sector are allowed to consume. This can be (but is not always) a regulatory element of efficiency-related trading systems. https://www.sciencedirect.com/science/article/pii/S0360544221022192 sectoral energy use cap An energy efficiency quota is an energy use cap that sets out quotas for energy efficiency improvements. Adapted from CPDB: https://climatepolicydatabase.org/ energy efficiency quota An industrial efficiency standard is an energy use cap that is mandatory and regulates the energy efficiency of industry actors. Adapted from CPDB: https://climatepolicydatabase.org/ industrial efficiency standard standards for insulation A building efficiency standard is an energy use cap which requires buildings to comply with requirements for energy demand and the heat that can escape. building efficiency standard a minimum share of zero-emission vehicles or of renewable energy A purchasing requirement is a quota which requires an actor to acquire a certain share of a clean good or service. demand-side quota portfolio standard purchase obligation purchasing quota adapted from European Commission, Bertoldi and Rezessy 2006, https://publications.jrc.ec.europa.eu/repository/bitstream/JRC32865/2865-white_cert_report_final.pdf purchasing requirement China's supply-side renewables portfolio standards, see https://www.sciencedirect.com/science/article/pii/S030142152300383X?via%3Dihub#abs0010 A production requirement is a quota which requires an actor to provide a certain share of a clean good or service. production quota supply-side quota production requirement parking lot owner must install at least 1 EV charger per 10 parking spaces; 100% of new rented buildings must have solar panels An installation requirement is a quota which requires an actor to install a certain share of a clean good or service. installation quota installation requirement PV panels must be installed on new buildings, renovated roofs, or parking garages A photovoltaic installation requirement is an installation requirement that sets requirements for installing solar PV systems. PV installation requirement photovoltaic installation requirement 1 in 10 parking spaces must include EV charging stations An electric vehicle charging installation requirement is an installation requirement that sets requirements for installing EV charging stations. EV charging installation requirement electric vehicle charging installation requirement a person who installs a solar PV system must also install a battery storage unit A storage installation requirement is an installation requirement that sets requirements for actors to install energy storage capacities. storage installation requirement a solar PV auction, or an auction for low-emissions hydrogen A tendering scheme standard is a standard set for bidding competition for potential providers of a required good or service aimed at reducing provision costs, e.g. through auctions. This can be tied to economic policy instruments sich as FITs. The standard may be technology-specific or performance-based. auction standard Adapted from CPDB: https://climatepolicydatabase.org/ tendering scheme standard An auditing institution is an institution created to enforce compliances with established governmental rules and standards. Adapted from CPDB: https://climatepolicydatabase.org/ auditing institution A monitoring institution is an institution created to continuously and systematically collect data to supervise specific activities for evaluation and enforcement purposes. Adapted from CPDB: https://climatepolicydatabase.org/ monitoring institution A coordinating body for climate strategy is an institution created to regulate and monitor climate change responses and strategies. Adapted from CPDB: https://climatepolicydatabase.org/ coordinating body for climate strategy UK Climate Change Committee: https://www.lse.ac.uk/granthaminstitute/news/why-the-uks-climate-change-committee-is-crucial-to-advancing-evidence-based-climate-policymaking/ An independent advisory body is an institution created to provide evidence and analysis from which government actors can build strategies and plans. independent advisory body citizen climate assemblies, see https://www.knoca.eu/climate-assemblies A participation scheme is an institution created to promote the involvement of subnational entities or citizens in sustainability governance. Adapted from CPR. participation scheme independent domestic agencies for climate finance, https://www.iea.org/policies/14055-government-investment-in-decarbonising-industry-fund-gidi. A climate fund is an institution created to provide the establishment of specific funding agencies or mechanisms for climate issues. climate fund A measurement, reporting and verification monitoring institution establishes systems for the measurement, reporting and verification (MRV) of emissions data to ensure its veracity, consistency and compliance with reporting requirements. MRV monitoring institution based on paraphrase of https://unece.org/monitoring-reporting-and-verification-mrv measurement, reporting and verification monitoring institution A strategic planning process is a process that institutionalizes processes to set strategic direction and roadmaps for specific sectors or for the economy as a whole. Adapted from CPDB: https://climatepolicydatabase.org/ strategic planning process Insurance is a financial incentive where the government offers insurance schemes to reduce risk for projects. CPR insurance a regulation establishing a priority zone for wind energy due to the high wind potential or less conflict with neighborhoods A priority area regulation is a zoning and spatial planning regulation that prioritizes a certain area to be built or entered, and within this zone, the other activities are mainly not allowed. adapted from Bucha and Ramirez Camargo, “Deliverable D2.10 Data on Regulatory and Socio-Economic Conditions and Impacts (b).” Dec. 2024. priority area regulation