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A proposal for the revewal of sectoral approaches building on the Cement Sustainability Initiative

  • Gregory Cook

    (Carbon Counts Ltd - {-])

  • Jean-Pierre Ponssard

    (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)

The prospects for an international agreement within the United Nations Framework on Climate Change (UNFCCC) resulting in a common carbon price ‐ such as a global cap and trade scheme ‐ can for now only be seen as a long term goal. In the meantime, we have to work in a world of unilateral climate policies, eventually loosely coordinated among a limited number of countries. Two key considerations need be addressed in the design of these policies: equity for emerging countries, and competitiveness for carbon intensive internationally traded sectors. This context has generated a renewed interest in sectoral approaches. This paper provides a sound methodological framework to discuss equity and efficiency issues in sectoral approaches, makes a proposal that addresses these national requirements, and discusses some related implementation issues. The proposed approach combines basic components put forward by industry such as absolute caps for industrialized countries and intensity targets for emerging countries, BTA for those countries that do not adopt the sectoral approach, as well as reduced eligibility of these countries to benefit from the financial transfers collected through CO2 revenues in industrialized countries. The proposal is applied to the case of the cement industry.

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Paper provided by HAL in its series Working Papers with number hal-00681313.

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Date of creation: 21 Mar 2012
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Handle: RePEc:hal:wpaper:hal-00681313
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  1. Guy Meunier & Jean-Pierre Ponssard, 2012. "A Sectoral Approach Balancing Global Efficiency and Equity," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 53(4), pages 533-552, December.
  2. Meunier, Guy & Ponssard, Jean-Pierre, 2014. "Capacity decisions with demand fluctuations and carbon leakage," Resource and Energy Economics, Elsevier, vol. 36(2), pages 436-454.
  3. Philippe Quirion, 2007. "Comment faut-il distribuer les quotas échangeables de gaz à effet de serre ?," Post-Print hal-00639723, HAL.
  4. Meriem Hamdi-Cherif & Céline Guivarch & Philippe Quirion, 2010. "Sectoral Targets for Developing Countries: Combining "Common but Differentiated Responsibilities" with "Meaningful participation"," Working Papers 2010.37, Fondazione Eni Enrico Mattei.
  5. Philippe Quirion, 2009. "Historic versus output-based allocation of GHG tradable allowances: a comparison," Climate Policy, Taylor & Francis Journals, vol. 9(6), pages 575-592, November.
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