Wednesday, January 23, 2008

EU energy plan aims to stop carbon exporting

The EU has announced its climate change policy. What struck me most is the move to stop the exporting of carbon production to other countries. As I have previously posted this is crucial requirement for carbon trading to actual work in reducing carbon emissions.

Implementing carbon trading without something to address the issue of out-sourcing carbon, the price of goods and services in Europe would have gone up without the beneficial reduction in carbon. As many have pointed out, there is no way of making sure carbon stays on the other side of the planet.

This also changes the dynamics of the up-coming discussions on the next climate change treaty. For one, it does reduce the negotiating strength of the BRIC nations against mandatory caps. It also precedes an alliance of OECD nations which go it alone to implement mandatory emission caps and via the mechanism proposed by the EU in effect force mandatory caps on emissions on the rest of the world as the OECD still make up the bulk of the worlds affluent consumers.

I wonder if this announcement signals the tipping point to worldwide mandatory emissions caps whether BRIC nations want it or not.

Tags: Climate Change