The Copenhagen Accord has disappointed many observers of the negotiations. Still, the Accord addresses many crucial elements of a framework for tackling climate change. The greatest near-term risk stemming from the Accord concerns the future of carbon markets. In order to reduce uncertainties it is necessary to make quick progress on both carbon market reform and financing of international mitigation projects. Many countries have embarked upon their own climate policies. The Copenhagen Accord does not end these policies or slow down the momentum that was gained in the run-up to Copenhagen. The weeks ahead will of course reveal countries’ willingness to register ambitious policies and thus keep up the momentum. [more]

At mid-year the German economy put the worst recession since World War II behind it and returned to slight growth. Nonetheless, the dimension of our growth forecast for manufacturing industry for 2010 (+5%) should not be overrated. The level of capacity utilisation in the industry is very low at around 70%. Such growth in production, though strong, will only take a little of the strain off companies that have been hit particularly hard. In so far, the upswing is deceiving. [more]

The global automotive industry endured a year of turmoil in 2009. Many governments launched subsidy schemes in response to the deep recession afflicting the sector. These schemes triggered widely varying market developments last year. Although the global automotive sector has in recent months emerged from its trough, the expiry of support measures together with the overcapacities in the sector suggest that further difficulties will materialise in 2010 and beyond... [more]