The expectations for COP 16 in Cancún are low. It will take years before the main actors are prepared to sign a global, legally binding agreement. This deadlock over a global, legally binding treaty on climate change, has caused uncertainty among investors on the future climate regime and on energy investments.
This energy investment deadlock needs to be broken. Global warming does not wait for all 192 UN member governments to agree. The Stockholm-based think tank, Global Challenge, therefore launches the report “An International Climate Investment Community – breaking the deadlock”, as complementary process to the UNFCCC-negotiations.
Our suggestion in brief:
- focus on investment and business opportunities to let member states benefit from being forerunners,
- a technology neutral CO2-price as a driver of new technology and investments, rather than subsidies,
- a gradual and step-by step approach of building a Community of member states,
- governance based on the open method of coordination
The key element in our initiative is a technology neutral CO2-price - a CO2 price high enough to make all necessary technologies economically viable and making fossil technologies unprofitable. This price will have to be at least 40 euros/ton CO2, compared to the present CO2 price level in ETS at around €15 per ton. The technology neutral C02-price should be reached no later than 2020 and should be established through a combination of a reformed ETS and national CO2 taxes and other measures. The revenues could be used for lowering other taxes within existing taxation systems and fulfilling commitments towards developing countries in the Copenhagen Accord.
Our report “An International Climate Investment Community – breaking the deadlock” can be downloaded from our website.
More information regarding this suggestion:
Per Lagerström, Director of communations, +46 (0)709 56 88 47
Global Challenge is an independent think tank. We are a qualified network of community, business and research organizations that promotes solutions to global challenges relating to the economy, environment and democracy.