ABSTRACT
This chapter introduces the theoretical framework that provides the foundation of this analysis. It contains an explanation of the importance of cumulative carbon emissions and carbon budgets for climate change. The chapter analyzes some recent empirical findings from the power generation sector in the context of the decarbonisation identity. It discusses the framework and its implications in a wider context of policy choices, policy instruments and a broader research agenda. The chapter describes the connection between carbon budgets, climate goals, short-lived climate pollutants emissions, committed emissions and negative- emission technologies. It summarises the concept of a carbon budget and also describes the concept of committed emissions and what influences these commitments. A growing body of literature has been analysing the carbon lock-in and the potential for stranded assets in the power generation sector. Power generation plays an important role in climate change.
