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Carmen Bunzl - Universidad Pontificia Comillas

Carmen Bunzl - Universidad Pontificia Comillas

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Chapter 2. Options for future climate change architectures 72<br />

prefer to sell cheap emission reductions - so called “low hanging fruits” - in the<br />

CDM; in this case early action is partly discouraged.<br />

The Tryptich approach is a mix of both. Early action in the domestic sectors<br />

is encouraged, as emission allowances will eventually converge. However, for<br />

the industrial and power sectors, assigning allowances based on emission levels<br />

of the point in time the system comes into effect, may be an incentive to increase<br />

emissions until then to have a higher target once participating.<br />

2.1.4.2 Cost-effectiveness<br />

The most cost-effective approach is the one that achieves the desired goal at<br />

the least cost. The optimal approach would also give participants flexibility to<br />

reach their commitments, tailored to their national needs and priorities. It<br />

would also ensure that participants have certainty on the inferred costs of<br />

taking on commitments.<br />

All the approaches selected include emission reduction targets, and therefore<br />

emissions trading can be applied. It is seen as the most cost-effective system as<br />

it should ensure that all marginal abatement costs are comparable in all<br />

participating countries, and that reductions occur where they are the most<br />

economically efficient. Emissions can be reduced across sectors, gases and<br />

borders. Participating countries, however, have low certainty of the total costs<br />

needed to meet their targets.<br />

Under the Tryptich approach emission reductions would be shared<br />

efficiently as it specifically takes into account national circumstances and<br />

existing emission reduction potentials.<br />

The second stage of the Multistage approach, pledge for sustainable<br />

development, is also cost-effective. Efforts for development are joined with<br />

possibly small additional efforts for climate. They have the freedom to<br />

implement any sustainable development policy as long as their emissions stay<br />

below a certain threshold.<br />

Escuela Técnica Superior de Ingeniería ICAI <strong>Carmen</strong> <strong>Bunzl</strong> Boulet Junio 2008

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