By René Castro
Improvements in eco-efficiency—defined as a combination of reducing waste and reducing the use of raw inputs—offer one strategy for reducing greenhouse gas emissions while also lowering production costs. In addition, changes in culture—at the level of individual businesses, countries, or both—can enhance the eco-competitive position of these businesses and countries. This paper describes three examples from Costa Rica and shows how the goal of achieving carbon neutrality can provide incentives for improving eco-efficiency and eco-competitiveness.
By Bard Harstad
Recent research in economics shows how not to design climate treaties—and suggests how to get it right.
By Robert N. Stavins, Albert Pratt Professor of Business and Government; Member of the Board; Director, Harvard Project on Climate Agreements
Robert Stavins argues for an economic approach to solving environmental problems and explains why "environmental economics" is not an oxymoron.
"A Pre-Lima Scorecard for Evaluating which Countries are Doing Their Fair Share in Pledged Carbon Cuts"
The authors explore a novel approach to evaluating the ambition and fairness of countries' voluntary pledges to reduce emissions. This approach could facilitate negotiations at the upcoming UN climate conference in Lima—and the broader process leading to a new 2015 international climate agreement.
By Joseph E. Aldy, Faculty Affiliate, Harvard Project on Climate Agreements
Joseph Aldy's Viewpoint makes a case for how transparency through policy surveillance can facilitate more effective international climate change policy architecture.
By Donna Lee
Forests can play a significant role in helping to avoid dangerous climate change, and a global agreement under the UNFCCC would be uniquely placed to support efforts in this regard. The rising global demand for agricultural and other land-based products means that pressures on land are increasingly cross-border, and there is an accelerating expansion of the deforestation frontier. Smart domestic policies are critical to solving the deforestation challenge, and recent private sector interest in "sustainable agriculture" is encouraging. However, global agreements that value standing forests and provide incentives that positively impact land use change decisions can be an equally important tool.
The United States has considerable tax administration and cap-and-trade expertise that could highlight potentially successful carbon pricing approaches. Although this experience is not climate-related, the United States deploys an efficient and highly compliant excise tax system, and it could assist developing country efforts to build their own capacity to tax carbon. The United States also has long experience with cap-and-trade systems for criteria air pollutants, much of which is transferable to greenhouse-gas emissions trading.
By Bard Harstad
Climate policy is complicated. For a treaty to be beneficial, one must think through carefully how it will work, once it is implemented. Crucial questions include the following: How should an international treaty be designed? Should one negotiate commitments for a five-year period, or for much longer? Assuming that the treaty specifies aggregate or country-specific emission caps, what should these caps be and how should they change over time? How should the agreement be updated once policymakers, scholars, and the public learn more about the severity of the climate-change problem, or about the effects of the policy? Can the treaty be designed to encourage investments in "green" abatement technology or renewable energy sources? Finally, how can one motivate countries to participate and comply with such an agreement?
In December 2011, parties to the United Nations Framework Convention on Climate Change (UNFCCC) adopted the Durban Platform for Enhanced Action, which launched a new round of negotiations aimed at developing "a protocol, another legal instrument or an agreed outcome with legal force" for the post-2020 period. The Durban Platform negotiations got underway this year and are scheduled to conclude in 2015. This Viewpoint analyzes the elements of the Durban Platform and the possible role that a new instrument might play.
The Kyoto Protocol establishes a very complex and ambitious regime, in architecture if not stringency. The problem is that relatively few states, representing only about a quarter of the world's emissions, have been willing to assume emission targets under Kyoto....The future of the Protocol thus seems doubtful at best. Even in the most optimistic scenario, a new round of emissions targets couldn't be agreed in time to prevent a legal gap between the first and second commitment periods. A possible middle ground would be to establish a transitional regime that would be political in nature, but that could evolve over time into a legally-binding regime.