Science, Technology, and Public Policy

Over the past decade, carbon trading has emerged as the industrialized world's primary policy response to global climate change despite considerable controversy. With carbon markets worth $144 billion in 2009, carbon trading represents the largest manifestation of the trend toward market-based environmental governance. In Carbon Coalitions, Jonas Meckling presents the first comprehensive study on the rise of carbon trading and the role business played in making this policy instrument a central pillar of global climate governance.

A "deal" is proposed in this paper, whereby all major-emitting countries, including the United States and China, agree to reduce emissions through implementation of significant, mutually agreeable, domestic emission-reduction policies. To resolve the competitiveness and equity concerns, a proposed Carbon Mitigation Fund would be created. This proposed fund is contrasted with other existing and proposed mitigation funds and finance mechanisms. 

International climate negotiations are at an impasse because the world's two largest greenhouse gas (GHG) emitters, the United States and China, are unwilling to accept binding emission-reduction commitments. At the same time, each blames the other for its inaction. This paper proposes a global "deal" for breaking the deadlock in a way that reconciles both countries' economic concerns with the imperative of reducing emissions. The deal has two core elements: (1) All major emitting countries agree to reduce GHG emissions by implementing significant, mutually agreeable, domestic policies and (2) The largest industrialized-country emitters agree to establish a global Carbon Mitigation Fund that would finance the incremental cost of adopting low-carbon technologies in developing countries.

The Winter 2008-09 issue of the Belfer Center newsletter features recent and upcoming research, activities, and analysis by Center faculty, fellows, and staff on critical global issues. "What should the next president do first?" is a question raised in this issue. Belfer Center experts respond to the question with advice on what they consider priority issues of national security, climate/energy policy, and the economic crisis.

The Winter 2008-09 issue also features take-aways from the Center’s recent “Acting in Time on Energy Policy” conference hosted by the Energy Technology Innovation Policy research group. In addition, it spotlights Belfer Center Faculty Affiliate Richard Clarkeand new Kennedy School Professor Nicholas Burns.