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A mid-century net zero target creates a challenge for reducing the emissions of emissions-intensive, trade-exposed sectors with high cost mitigation options. These sectors include aluminium, cement, chemicals, iron and steel, lime, pulp and paper and petroleum refining. Available studies agree that decarbonization of these sectors is possible by mid-century if more ambitious policies are implemented soon. Existing carbon pricing policies have had limited impact on the emissions of these sectors because their marginal abatement costs almost always exceed the tax rate or allowance price. But emissions trading systems with free allowance allocations to emissions-intensive, trade-exposed sectors have minimized the adverse economic impacts and associated leakage. Internationally coordinated policies are unlikely, so implementing more ambitious policies creates a risk of leakage. This paper presents policy packages a country can implement to accelerate emission reduction by these sectors with minimal risk of leakage. To comply with international trade law the policy packages differ for producers whose goods compete with imports in the domestic market and producers whose goods are exported. Carbon pricing is a critical component of each package due its ability to minimize the risk of adverse economic impacts on domestic industry, support innovation and generate revenue. The revenue can be used to assist groups adversely impacted by the domestic price and production changes due to carbon pricing and to build public support for the policies.

This paper presents a collection of datasets holding information on the energy and climate action plans of 6,850 municipalities, taking part in the transnational initiative of the Global Covenant of Mayors (GCoM). This collection includes commitments for reducing net GHG emissions by at least 20% by 2020, 55% by 2030 and becoming climate neutral by 2050. The signatories commit to addressing any of the three pillars of the initiative, namely climate change mitigation, adaptation and energy access. Following two previous releases, the third release of the GCoM collection is introduced, with closing date September 2022. The datasets include information on the action plans and monitoring reports as they are self-reported by signatories, undergoing a quality-harnessing procedure before publication. Additionally, an external comparison is developed with the Emissions Database for Global Atmospheric Research (EDGAR v7), controlling for comparable sources and activity sectors, ensuring the usability of the GCoM datasets for relevant research on local policies and their effects on reducing the impact of climate change. [ABSTRACT FROM AUTHOR]