Energy

In a new Harvard Project Discussion Paper, Fondazione Eni Enrico Mattei's Valentina Bosetti and Enrica De Cian model the behavior of countries not participating in a cooperative climate regime. The regime imposes counterbalancing influences upon these countries, but under some conditions they may act to both reduce emissions and increase clean-energy R&D

The effort to address climate change stumbled with the failure to pass cap-and-trade. What should happen now? Five experts, including the Harvard Project's Joe Aldy, discuss the future of U.S. climate and energy policy.

The Spring 2011 issue of the Belfer Center newsletter features recent and upcoming activities, research, and analysis by members of the Center community on critical global issues. This issue highlights the Belfer Center’s continuing efforts to build bridges between the United States and Russia to prevent nuclear catastrophe – an effort that began in the 1950s. This issue also features three new books by Center faculty that sharpen global debate on critical issues: God’s Century, by Monica Duffy Toft, The New Harvest by Calestous Juma, and The Future of Power, by Joseph S. Nye.

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. 

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.

Our proposal for a post-2012 international global climate policy agreement contains three essential elements: meaningful involvement by key industrialized and developing nations; an emphasis on an extended time path of targets; and inclusion of market-based policy instruments. This architecture is consistent with fundamental aspects of the science, economics, and politics of global climate change.

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.