GESolutions 2009 - Establishing a Global Climate Regime

GESolution 1

Establish a new global climate agreement that specifies firm targets and commitments.

A clear commitment by the international community is needed, which sets climate change mitigation as a priority despite the financial crisis. Developed and developing countries must come to an agreement on international emissions reductions before it is too late for mitigation—no member of the international community can be exempt from reducing emissions.

The political agreement should specify clear targets and commitments to cut emissions that provide for planning security and a good climate for business investment. Progress in terms of climate change mitigation is dependent on government intervention and smart regulation, and cannot be left up to the business sector.

To mitigate climate change, we need to rebuild the economic system of the world, and that will need enormous investments, which the private sector will only commit to if there is planning security by means of clear targets in a global climate deal. Furthermore, the perception of “business as usual” must be changed into a perception of a low carbon future.

Global climate negotiations are unlikely to produce a perfect deal, but the perfect should not be allowed to become the enemy of the good. Governments must actively seek compromises that acknowledge the different challenges facing different economies around the world, and must not become bogged down in detail.

GESolution 2

Focus the targets on carbon dioxide, but aim to include other emissions, such as black carbon.

We must include other emissions, such as black carbon, in the climate deal, though the focus should remain on carbon dioxide. Geo-engineering may be necessary at some point in the future, but that prospect should not lead to less effort now in reducing emissions to prevent catastrophic climate change.

GESolution 3

Establish a global carbon price to give businesses a clear investment signal.

Establishing a global carbon price can be done through a carbon tax or through tradable permits, whereby other greenhouse gases are converted into carbon dioxide equivalents.

Companies need to know that they—and their competitors—will be constrained in the amount of carbon they can produce, and can make investments accordingly. If they are not given clear signals on investment as soon as possible, they will not begin to reduce their emissions and will continue to invest in high carbon infrastructure, which will lock the world economy into a continuation of high carbon growth for decades.

GESolution 4

Combine a global cap-and-trade system with an adaptation fund and access to emission-saving technologies for poor countries.

As the nations that have most benefited in the past from being able to produce emissions freely and the nations with the infrastructure best suited to coping with climate change, developed countries must take the lead in cutting emissions and helping poorer nations to cope.

An estimated fund of $50–$160 billion is needed for climate change mitigation and adaption. It must be a reliable source of funding, preferably based on the proceeds of a cap-and-trade system because public funding will not suffice. A cap-and-trade system would have largely similar effects as a tax on carbon but is politically more feasible.

In the medium term (untill 2020), the proceeds of a cap-and-trade system will come from industrialized countries because their markets will take the caps first. The proceeds should be redistributed into helping developing countries with adaptation and mitigation, and into projects such as reforestation.

GESolution 5

Give developing countries’ perspective more credit.

China, India, and other rapidly developing countries are taking actions to curb their emissions, and this effort needs to be acknowledged in the talks. Developing countries should also be prepared to quantify their efforts.

Annex I countries of the Kyoto Protocol should not hold back with their efforts to reduce emissions waiting for higher commitments by developing countries. Instead, industrialized countries should lead the way and show that a low carbon economy is possible—developing countries will follow their example.

GESolution 6

Mitigate climate change by controlling population growth, by promoting access to family planning, and by investing in education and employment for women.

In 2050, the world population could be between eight and 11 billion people. Population growth is a major factor contributing to a rise in emissions andhence family planning and incentives to reduce further population growth are necessary.

We should limit the population increase by providing access to family planning, by education and particularly by investing in opportunities for education and employment of women.

GESolution 7

Forestry will be an essential part of a deal.

Keeping the world’s existing forests intact is vital, as they act as a huge carbon sink. They are currently being cut down at an unsustainable rate, but the developing countries that own these forests must be compensated for conserving them.