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Global Climate Change and Its Impacts

sified and integrated characteristics.
From the perspective of policy instruments, market mechanisms have been more widely
adopted. Carbon pricing mechanisms continue to evolve and improve. The European Union
implemented the Emissions Trading System (EU ETS) as early as 2005. This system sets
a cap on total carbon emissions, allocates emission allowances to enterprises, and permits
inter-company trading of these allowances. Companies that reduce their carbon emissions
through energy-saving measures can sell surplus allowances for profit in the market.
Conversely, companies exceeding their allocated quotas must purchase additional allowances
or face substantial penalties. This mechanism leverages market price signals to incentivize
proactive corporate emission reduction efforts. Subsequently, an increasing number of
developed nations have adopted carbon pricing schemes, encompassing carbon taxes,carbon
emission allowancestrading, and other market-based approaches to guide enterprises in
voluntarily reducing carbon emissions. Some countries impose carbon taxes on fossil fuel
production and consumption, levying fees proportional to carbon content. This raises the
cost of fossil energy use, encouraging businesses and consumers to transition to low-carbon
energy and products.
Meanwhile, support policies for renewable energy continue to be strengthened, with
many developed countries setting more ambitious renewable energy development targets.
Some nations have proposed grand goals to achieve 100% renewable energy-powered elec-
tricity supply within the coming decades. To realize these objectives, they have intensified
financial subsidies for renewable energy projects through dedicated subsidy funds, providing
per-kilowatt-hour subsidies for renewable power generation projects such as solar, wind,
and hydropower. This helps reduce renewable energy generation costs and enhances their
market competitiveness. Tax incentive policies have been implemented, offering corporate
income tax and value-added tax reductions for renewable energy enterprises to alleviate their
financial burdens. Increased investment in technological research and development supports
collaborative efforts between universities, research institutions, and enterprises to tackle key
technical challenges in renewable energy generation, such as energy storage and grid integra-
tion. Germany has achieved remarkable success in renewable energy development through
its Renewable Energy Act (EEG), establishing a comprehensive renewable energy subsidy
mechanism. By formulating differentiated subsidy standards based on the costs and develop-
ment stages of various renewable energy generation technologies, it has effectively promoted
the increasing share of solar, wind, biomass energy, and other new energy sources in the en-
ergy mix.The proportion continuesto rise, with Germany maintaining a world-leading posi-
tion in both solar photovoltaic power generation and wind power generation technologies as
well as industrial scale.
Regarding industrial policies, developed countries actively promote green industrial
transition, encouraging enterprises to develop energy-saving and emission-reductiontechnol-
ogiesinnovations. They upgrade high-energy-consuming and high-emission industries while

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