Ways and Means for Mitigation
17. The successful implementation of greenhouse
gas mitigation options needs to overcome many technical, economic, political,
cultural, social, behavioural and/or institutional barriers which prevent the
full exploitation of the technological, economic and social opportunities of these
mitigation options. The potential mitigation opportunities and types of barriers
vary by region and sector, and over time. This is caused by the wide variation
in mitigation capacity. The poor in any country are faced with limited opportunities
to adopt technologies or change their social behaviour, particularly if they are
not part of a cash economy, and most countries could benefit from innovative financing
and institutional reform and removing barriers to trade. In the industrialized
countries, future opportunities lie primarily in removing social and behavioural
barriers; in countries with economies in transition, in price rationalization;
and in developing countries, in price rationalization, increased access to data
and information, availability of advanced technologies, financial resources, and
training and capacity building. Opportunities for any given country, however,
might be found in the removal of any combination of barriers (Sections 1.5,
5.3, 5.4).
18. National responses to climate change can
be more effective if deployed as a portfolio of policy instruments to limit or
reduce greenhouse gas emissions. The portfolio of national climate policy
instruments may include - according to national circumstances - emissions/carbon/energy
taxes, tradable or non-tradable permits, provision and/or removal of subsidies,
deposit/refund systems, technology or performance standards, energy mix requirements,
product bans, voluntary agreements, government spending and investment, and support
for research and development. Each government may apply different evaluation criteria,
which may lead to different portfolios of instruments. The literature in general
gives no preference for any particular policy instrument. Market based instruments
may be cost-effective in many cases, especially where capacity to administer them
is developed. Energy efficiency standards and performance regulations are widely
used, and may be effective in many countries, and sometimes precede market based
instruments. Voluntary agreements have recently been used more frequently, sometimes
preceding the introduction of more stringent measures. Information campaigns,
environmental labelling, and green marketing, alone or in combination with incentive
subsidies, are increasingly emphasized to inform and shape consumer or producer
behaviour. Government and/or privately supported research and development is important
in advancing the long-term application and transfer of mitigation technologies
beyond the current market or economic potential (Section
6.2).
19. The effectiveness of climate change mitigation can
be enhanced when climate policies are integrated with the non-climate objectives
of national and sectorial policy development and be turned into broad transition
strategies to achieve the long-term social and technological changes required
by both sustainable development and climate change mitigation. Just as climate
policies can yield ancillary benefits that improve wellbeing, non-climate policies
may produce climate benefits. It may be possible to significantly reduce greenhouse
gas emissions by pursuing climate objectives through general socio-economic
policies. In many countries, the carbon intensity of energy systems may vary
depending on broader programmmes for energy infrastructure development, pricing,
and tax policies. Adopting state-of-the-art environmentally sound technologies
may offer particular opportunity for environmentally sound development while
avoiding greenhouse gas intensive activities. Specific attention can foster
the transfer of those technologies to small and medium size enterprises. Moreover,
taking ancillary benefits into account in comprehensive national development
strategies can lower political and institutional barriers for climate-specific
actions (Sections 2.2.3,
2.4.4,
2.4.5, 2.5.1,
2.5.2,
10.3.2, 10.3.4).
20. Co-ordinated actions among countries and sectors may
help to reduce mitigation cost, address competitiveness concerns, potential
conflicts with international trade rules, and carbon leakage. A group of countries
that wants to limit its collective greenhouse gas emissions could agree to implement
well-designed international instruments. Instruments assessed in this report
and being developed in the Kyoto Protocol are emissions trading; Joint Implementation
(JI); the Clean Development Mechanism (CDM); other international instruments
also assessed in this report include co-ordinated or harmonized emission/carbon/energy
taxes; an emission/carbon/ energy tax; technology and product standards; voluntary
agreements with industries; direct transfers of financial resources and technology;
and co-ordinated creation of enabling environments such as reduction of fossil
fuel subsidies. Some of these have been considered only in some regions to date
(Sections 6.3, 6.4.2,
10.2.7, 10.2.8).
21. Climate change decision-making is essentially a sequential
process under general uncertainty. The literature suggests that a prudent
risk management strategy requires a careful consideration of the consequences
(both environmental and economic), their likelihood and society's attitude
toward risk. The latter is likely to vary from country to country and perhaps
even from generation to generation. This report therefore confirms the SAR finding
that the value of better information about climate change processes and impacts
and society's responses to them is likely to be great. Decisions about
near-term climate policies are in the process of being made while the concentration
stabilization target is still being debated. The literature suggests a step-by-step
resolution aimed at stabilizing greenhouse gas concentrations. This will also
involve balancing the risks of either insufficient or excessive action. The
relevant question is not "what is the best course for the next 100 years",
but rather "what is the best course for the near term given the expected
long-term climate change and accompanying uncertainties" (Section
10.4.3).
22. This report confirms the finding in the SAR that earlier
actions, including a portfolio of emissions mitigation, technology development
and reduction of scientific uncertainty, increase flexibility in moving towards
stabilization of atmospheric concentrations of greenhouse gases. The desired
mix of options varies with time and place. Economic modelling studies completed
since the SAR indicate that a gradual near-term transition from the world's
present energy system towards a less carbon-emitting economy minimizes costs
associated with premature retirement of existing capital stock. It also provides
time for technology development, and avoids premature lock-in to early versions
of rapidly developing low-emission technology. On the other hand, more rapid
near-term action would decrease environmental and human risks associated with
rapid climatic changes.
It would also stimulate more rapid deployment of existing low-emission technologies,
provide strong near-term incentives to future technological changes that may
help to avoid lock-in to carbon-intensive technologies, and allow for later
tightening of targets should that be deemed desirable in light of evolving scientific
understanding (Sections 2.3.2,
2.5.2,
8.4.1,
10.4.2, 10.4.3).
23. There is an inter-relationship between the environmental
effectiveness of an international regime, the cost-effectiveness of climate
policies and the equity of the agreement. Any international regime can be
designed in a way that enhances both its efficiency and its equity. The literature
assessed in this report on coalition formation in international regimes presents
different strategies that support these objectives, including how to make it
more attractive to join a regime through appropriate distribution of efforts
and provision of incentives. While analysis and negotiation often focus on reducing
system costs, the literature also recognizes that the development of an effective
regime on climate change must give attention to sustainable development and
non-economic issues (Sections 1.3,
10.2).
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