Carmen Bunzl - Universidad Pontificia Comillas

Chapter 2. Options for future climate change architectures 87
• They lead to real GHG emission reductions. They do not only improve
abatement potentials and costs, but also increase energy efficiency, the
diffusion of new technology and the development of new one.
• They represent a cooperative approach. These are seen to be more
appropriate for a politically difficult and technically complex long-
term issue such as climate change, than the traditional adversary
approach that is now dominant.
“Governments alone will not be able to achieve climate change objectives.
Government efforts need to be combined with efforts by other stakeholder
notably industry and increasingly so financial institutions.” (Egenhofer, 2008)
2.3 Coordinated policies and measures
Instead of setting national emission targets, countries might also agree upon
the joint implementation of policies and measures that reduce the emission of
GHGs. These could include for example agreements on standards on energy
efficiency, carbon efficiency, best available technology (Ninomiya, 2003);
agreements on carbon tax (Cooper, 2001; Nordhaus, 2001); sustainable
development policies and measures (SD PAMs) (Baumert et al. 2005); financial
transfer to developing countries (Schelling, 2002); sector-based approach
(Schmidt et al., 2006). Sectoral policies have been discussed above (see section
2.2), SD PAMs are discussed in section 2.5.
Regarding the proposal for a harmonized tax (Cooper 1998, 2001), all
participating nations – both developed and developing countries – would tax
their domestic carbon usage at a common rate, therefore achieving cost-
effectiveness. There are several problems with this approach: developing
countries could see this common tax as unfair, given the relative welfare and
the relative responsibility; there are little incentives for participation;
governments could change tax codes to neutralize its effects. In addition,
although an equal marginal abatement cost across countries is economically
efficient, it may no be politically feasible: countries that currently apply such
Escuela Técnica Superior de Ingeniería ICAI Carmen Bunzl Boulet Junio 2008