South Asia

The authors explore several approaches to an ambitious climate agreement in Paris in late 2015—including through carbon pricing.

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.

In pursuit of a workable successor to the Kyoto Protocol, this study offers a framework of formulas that produces precise numerical targets for emissions of carbon dioxide (CO2) and other greenhouse gases, in all regions of the world in all decades of this century....Firms, consumers, and researchers base their current decisions to invest in plant and equipment, consumer durables, or new technological possibilities on the expected future price of carbon: If government commitments are not credible from the start, then they will not raise the expected future carbon price.

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.

This paper proposes a new architecture for international climate policy that might usefully be considered by delegates at COP 17 in Durban. It highlights a top-down approach that is designed to produce a fair distribution of burdens across countries, while achieving objectives of: (a) economic development; (b) decreasing wealth inequality; and (c) emission reductions consistent with holding the expected increase in global average temperature to 2 degrees Celsius. In addition, this discussion paper discusses several key design elements that will be important, especially from the perspective of developing countries, to the success of COP 17 and subsequent international climate negotiations. These design elements include agreements on burden sharing, choice of policy instruments, financial mechanisms and technology transfer, penalties for noncompliance, and linkages between trade and climate change.

The purpose of this volume is to present possible scenarios for the biofuels industry. Each chapter describes how the sector could evolve depending on the policy and strategies that individual countries may select. However, the assumption is that individual choices may have global impacts. Each scenario therefore tries to provide insights on the global economic, energetic, environmental and trade repercussions of specific policy developments.

The finance of climate mitigation and adaptation in developing countries represents a key challenge in the negotiations on a post-2012 international climate agreement. Finance mechanisms are important because stabilizing the climate will require significant emissions reductions in both the developed and the developing worlds, and therefore large-scale investments in energy infrastructure. The current state of climate finance has been criticized for its insufficient scale, relatively low share of private-sector investment, and insufficient institutional framework. This policy brief presents options for improving and expanding climate finance.

The domestic and international steps outlined in this paper could greatly advance the development and implementation of a GHG-mitigation strategy in the Indian coal-power sector, while allowing the sector to contribute suitably to the country’s energy needs. The key to success will be adopting a deliberate approach, with short- and long-term perspectives in mind, that allows for the development of an integrated energy and climate policy.