The parties to the UN Framework Convention on Climate Change are meeting once again in Durban, South Africa, from November 28 to December 9. The period covered by the Kyoto Protocol ends in 2012 and the clock is running out on negotiations for a successor agreement. Progress at Copenhagen two years ago and Cancun one year ago was slow. Negotiations have been blocked by a seemingly insurmountable obstacle. The United States is at loggerheads with the developing world, especially China–now the world’s largest emitter of greenhouse gases (GHG)–and India.
Tag Archives: leakage
Border Measures Could Make Climate Policy Better or — More Likely — Worse
The international press reports, “At Climate Talks, Danger to Free Trade Mounts.”
The Copenhagen negotiations have essentially failed to include, among the many topics covered, one that will be critical in the coming years: the question of import tariffs or other trade penalties that individual countries apply against the products of other countries that they deem too carbon-intensive. Such border measures are already in EU and US legislation (the Waxman-Markey bill, not yet passed by the Senate). Properly designed, they could turn out to be the missing instrument needed to get each country to cut emissions without fear of others taking unfair advantage, via leakage. More likely, national politics will turn them into protectionist barriers.
Anti-Shirking Import Penalties in US Climate Change Bills Could Backfire
(Incidentally, the July Snowmass presentations regarding Integrated Assessment models of the effects of such emission-reduction policy plans, which I plugged in my preceding blog post, are now accessible to the public.)
But issues of competitiveness and how to address it have risen to the top in the climate change policy debate among politicians. The Lieberman-Warner bill – would have required the president to determine what countries have taken comparable action to limit GHG emissions; for imports of covered goods from covered countries, the importer would then have had to buy international reserve allowances – equivalent to a tariff. (The same with some of the bill’s competitors such as the Bingaman-Specter “Low Carbon Economy Act” of 2007.)