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

Author

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  • Gregory Cook

    (Carbon Counts Ltd)

  • Jean-Pierre Ponssard

    (Department of Economics, Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Gregory Cook & Jean-Pierre Ponssard, 2012. "A proposal for the revewal of sectoral approaches building on the Cement Sustainability Initiative," Working Papers hal-00681313, HAL.
  • Handle: RePEc:hal:wpaper:hal-00681313
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00681313
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    References listed on IDEAS

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    1. 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.
    2. Ellerman,A. Denny & Convery,Frank J. & de Perthuis,Christian, 2010. "Pricing Carbon," Cambridge Books, Cambridge University Press, number 9780521196475, April.
    3. Philippe Quirion, 2007. "Comment faut-il distribuer les quotas échangeables de gaz à effet de serre ?," Revue Française d'Économie, Programme National Persée, vol. 22(2), pages 129-164.
    4. Meriem Hamdi-Cherif & Céline Guivarch & Philippe Quirion, 2011. "Sectoral targets for developing countries: combining 'common but differentiated re-sponsibilities' with 'meaningful participation'," Climate Policy, Taylor & Francis Journals, vol. 11(1), pages 731-751, January.
    5. 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.
    6. Guy Meunier & Jean-Pierre Ponssard, 2012. "A Sectoral Approach Balancing Global Efficiency and Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 533-552, December.
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    Cited by:

    1. Guy Meunier & Jean-Pierre Ponssard, 2012. "A Sectoral Approach Balancing Global Efficiency and Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 533-552, December.

    More about this item

    Keywords

    carbon leakage; cement industry emissions; climate policy frameworks; leakage;

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