A key component of a prospective climate deal coming into Copenhagen has been the targets for cuts in greenhouse gas emissions.
Targets would help put a “price” on carbon emissions that could then be bought and sold under a cap and trade scheme. (Click here for a related article.)
Proponents of the potentially lucrative market say it provides clear incentives to reach targets or even overshoot them, while opponents say the system would give big polluters a way around any targets.
That leads to our question of the day: What role should carbon trading play in a new U.N. climate deal?
****************
Knut Alfsen, Head Research Director, CICERO
At one level the climate problem is really easy. All it requires is the development and implementation of “clean” or “climate friendly” technologies on a massive scale.
Now, the implementation bit is again “easy”. Just make the right (i.e. climate friendly) choice the cheapest.
This will happen if we put a high enough price on greenhouse gas emissions, either by directly taxing the emissions, or by giving emission rights a price by introducing a cap and trade system.
So far the choice under the U.N. climate convention and the Kyoto protocol has been a cap and trade system.
Thus, carbon (or greenhouse gas) trading is essential for implementing the climate friendly solutions, and hence should play a large role in any climate treaty.
However, implementing existing climate-friendly solutions is not enough. We also need to develop through research and demonstration projects, new climate-friendly options.
Unfortunately, a cap and trade system alone is unlikely to deliver the necessary technological development. Thus, we need something in addition to the cap and trade mechanism.
This could be the introduction of standards or other regulations, or it could be direct public support (money!) for research and development activities.
As mentioned, the main focus of the climate negotiations has so far been on emission regulations via a cap and trade system.
It is high time that the other half of the solution is being addressed.
My belief is that this will also mitigate the confrontational stance we have seen between developed and developing countries so far, and foster a more cooperative spirit around the task of developing new technologies.
In conclusion, carbon trade is an important bit of any climate treaty, but should not be as dominating as it has been till now.
(Photo: People watch an illuminated so-called CO2 cube in the water of St Jorgens Lake in front of Tycho Brahe Planetarium in Copenhagen, December 7, 2009. The cube visually shows the amount of carbon dioxide produced by an average person in one month. REUTERS/Pawel Kopczynski)
***********
Similar Posts:
- EU Comission agrees with us on IT industry and climate change
- Enviro-boxer Britain needs to spend more on climate cure
- Biomass energy ‘could be harmful’
- Climate costs up front worth gains later, EBA chief says
- JohnsonDiversey exec sees CO2 reductions good for businesses
Recent Comments