from Climate Alert Volume 10, No. 6 December 1997

Climate Stabilization Strategies: The Kyoto Basket

Signatories shall adopt strategies appropriate to their circumstances designed to contribute to the eventual stabilization of atmospheric greenhouse gas concentrations, in accordance with Article 2 of the Framework Convention on Climate Change. They shall seek to apply such strategies both at national level and through international cooperation, and to develop them further over time in the light of evolving national capabilities and scientific understanding of climate change and its consequences. They shall make particular efforts to adopt steps chosen from the following basket of options, recognizing that while few of the strategies listed will be appropriate to all parties at present, each one is or could be made available to at least some parties on a “no-regrets” or low marginal cost basis:

A) Renewable Energy

• further liberalization of national and international energy markets. In particular, phasing out of direct and indirect subsidies to fossil fuel industries, and their replacement where appropriate by market benign forms of support for renewable energy;

• redirection of public investment in energy research and development away from fossil fuel energy technologies and the transmission and other infrastructure appropriate to them, towards renewable energy and related infrastructure;

• encouragement of synergies and partnerships - both between participating States and between industry and public bodies - to design, install and service renewable energy systems particularly in off-grid locations;

• facilitation of investment by the insurance industry and other financial institutions in renewable energy projects, particularly in developing countries;

• provision to utilities consumers of a choice between power derived from renewable and non-renewable sources, if appropriate, accompanied by redeployment for renewables research and development of any “green energy premium” which consumers may be willing to pay;

• active dissemination among parties and industrial sectors of technology and expertise relating to renewable energy.
  

B) Energy Efficiency

• provision to energy consumers of information on the energy efficiency implications of products, services, and practices, with the aim of enhancing consumer choice in energy-related purchasing decisions;
  

• in particular, promotion both at industry and household level of energy efficiency standards and labeling for energy consuming products including industrial installations, buildings, electrical machinery and electronic goods;
  

• where useful as an intermediate step towards renewable energy strategies, promotion of energy efficient and low emission forms of electricity generation from existing technologies including combined heat and generation systems and combined cycle gas turbines;
  

• implementation and publicization of exemplary energy efficiency requirements in public procurement and in the management of public facilities and equipment, and encouragement for industry to adopt similar standards;
  

• encouragement for the emergence of energy service companies to invest in energy services, to provide advice to customers on energy efficiency best practice, and to deliver other energy services to the public, both at national level and internationally;
  

• dissemination among parties of energy efficiency software and analytical techniques, especially towards those experiencing rapid growth in energy demand;
  

• application to existing industrial plant of techniques and equipment conducive to greater energy efficiency and lower greenhouse gas emissions, as well as research designed further to support this objective.
  

C) Transport

• encouragement for the accelerated development and mass application by industry of climate-friendly automotive technologies, including fuel cells, gasoline-electric hybrids, solar and hydrogen power systems, flywheel systems, and the combustion of low emission fuels such as methanol, ethanol and natural gas;
  

• where necessary, removal of legal obstacles to cooperation on such technologies between competing companies;
  

• development of integrated transport policies capable of delivering multiple benefits, including reduced congestion and vehicle pollution as well as lower, or less rapid growth in, vehicle-related greenhouse gas emissions;
  

• provision to consumers of the option to buy vehicles on climate-benign terms, for example by means of a price premium which could be earmarked to support climate-related aims such as the sequestation of carbon
  

• where appropriate, promulgation of legislation and regulations to encourage the development of climate-friendly vehicles;
  

• fostering of top-down cooperation between governments and automotive companies on climate-related aspects of transport, and facilitation of public-private partnerships in this field;
  

• retrofitting of existing vehicles with technology conducive to greater fuel efficiency and lower emissions, as well as research into technologies which might further support this objective;
  

• adoption of government procurement policies favoring climate-friendly vehicle technologies.
  

D) Fiscal Mechanisms

• without undermining the fiscal sovereignty of individual parties, and for those suited to the application of direct fiscal incentives and disincentives, development of fiscal frameworks designed to encourage abatement of greenhouse gas emissions. In particular, removal of fiscal obstacles to the development of climate-benign technologies and infrastructures and, where appropriate, application of fiscal incentives in their favor.
  

E) Diplomatic, Trade and Development Policies

• realignment of bilateral and multilateral development finance to further more vigorously the aims of the Framework Convention on Climate Change, through the Global Environment Facility and other channels;
  

• in particular, encouragement through development finance of national energy strategies based on renewables, with special emphasis on the legitimate energy needs of the 2 billion people who currently have no access to electricity and who would benefit from off-grid power supplies;
  

• continued and action-oriented discussion of the urgent requirement to stabilize the climate system, at all appropriate international occasions, and in all appropriate international organizations and groups, including those not specifically focused on climate change but whose responsibilities and decisions have implications for the climate system. Bodies which provide opportunities for meetings between government leaders-such as the G-8, EU, OECD, Asia Pacific Economic Cooperation (APEC) forum, Commonwealth, (others)-should be encouraged to give high priority to climate related issues, and to ensure that all future decisions take full account of implications for climate.
  

F) Direct Action on Emissions

• continuous monitoring of national greenhouse gas sources and sinks, with the aim of reducing current uncertainties as far as possible;
  

• continuous review of national options, through the above strategies and other means, for reducing anthropogenic emissions of greenhouse gases, and for enhancing natural sinks to the extent possible without risking damaging side effects;

• in particular, without diverting resources away from carbon dioxide abatement, further emphasis on steps which might be taken to reduce emissions of methane.

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