"...[C]limate change is essentially unobservable by the public. On a daily basis, we observe the weather, not the climate. This makes it less likely that public opinion will force action the way it did 50 years ago when black smoke rose from industrial smokestacks, and chemicals and raw sewage were dumped untreated into rivers, famously causing one to catch fire."

The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. This paper addresses an important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases.

The climate change talks in Cancun, Mexico, didn't solve all the world's climate problems. But they were hugely successful. Through the Cancun Agreements, 194 countries reached landmark consensus (even the US and China) to set emissions targets and limit global temperature increases.

The international climate negotiations in Cancun, Mexico, have concluded, and despite the gloom-and-doom predictions that dominated the weeks and months leading up to Cancun, the Sixteenth Conference of the Parties (COP-16) of the United Nations Framework Convention on Climate Change (UNFCCC) must be judged a success.  It represents a set of modest steps forward.  Nothing more should be expected from this process.

"...[T]he U.S. and China have been involved in intense talks about climate policy. If the two nations come together in a bilateral agreement—a real possibility—they would have much more leverage to persuade other major nations to join. From there, developing nations could be brought on board by giving them targets that reduce emissions without stifling growth. Advanced nations might agree to more-severe emissions cuts and allow developing nations to make gradual cuts in the early decades as they rise toward the world's average per-capita emissions. With the right incentives, developing countries can and will move onto less carbon-intensive growth paths."

Robert Stavins, Albert Pratt Professor of Business and Government at Harvard Kennedy School and a member of the Board of Directors at the school's Belfer Center, has been appointed to a new position in the Energy and Environmental Markets Advisory Committee at the U.S. Commodity Futures Trading Commission.

Harvard economist Robert Stavins has a lead role in setting the climate change agenda and he remains optimistic of progress, as long as the pragmatic approach wins the day.

The Kyoto Protocol serves as an initial step to mitigate the threats posed by global climate change but policy-makers, scholars, businessmen, and environmentalists have begun debating the structure of the successor to the Kyoto agreement. Written by a team of leading scholars in economics, law and international relations, this book contributes to this debate by examining the merits of six alternative international architectures for climate policy.