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The article discusses the state of climate policy in the face of multiple crises and opportunities for system transformations. While global greenhouse gas emissions continue to rise and geopolitical tensions are high, there have been positive developments such as the falling costs of clean energy technologies and the increasing role of various actors in climate finance. Climate policy is increasingly integrating with sustainable development goals and adaptation planning, although more action and international climate finance are needed. The article also highlights the growth and impact of the Climate Policy journal, which has covered a wide range of topics and seen an increase in quality and submissions. The outgoing editors express gratitude to the reviewers, associate editors, and editorial board members, and welcome the incoming editors-in-chief. [Extracted from the article]

It is posited that direct development assistance should replace trade preferences, using as an illustration European Union sugar export price preferences for Pacific, Caribbean, and African nations. A general equilibrium model is applied to Fiji; improvements in economic performance are identified and examined, along with predicted social welfare costs.

A study using a quantitative model of the Kyoto Protocol permit market is conducted to examine the impact on transaction costs and institutional rigidities in adhering to the Clean Development Mechanism (CDM).

Australia is a relative laggard on climate policy, amidst social and political fractures despite rising support for climate policy in opinion polls. In the 2019 Australian federal election, which was dubbed the 'climate election', the opposition campaigned on comparatively ambitious climate action but the government was returned on a status quo policy. We explore the social-political determinants of climate attitudes and how they are positioned in relation to voting behaviour, in the context of the 2019 election. We use a large nationally representative survey of Australian voters (n = 2,033), and employ univariate and multivariate ordinal logistic regression models to uncover correlates. We find that a large majority of voters think it is important for Australia to reduce greenhouse gas emissions. However, the importance given to emissions reductions is sharply divided along lines of political party preference. Holding pro-climate action attitudes consistently correlates with voting for progressive political parties and having higher levels of education. We also find a strong age cohort divide, with younger people holding stronger pro-climate attitudes than older people, raising the question whether we are seeing the emergence of a new generation expressing strong pro-climate action and progressive political attitudes that will persist over time. We conduct population ageing scenarios to project changes to public opinion, by age group, into the future. These indicate that strong support for climate action would increase by about four percentage points over the coming decade as younger voters replace the old, if attitudes within cohorts remained fixed. We conclude that while cleavages in climate attitudes in Australia are set to continue, efforts to promote climate delay are bound to have a limited shelf life as a growing majority of voters accepts the need for climate action. [ABSTRACT FROM AUTHOR]

To date there has been an absence of cross-country empirical studies on the efficacy of carbon pricing. In this paper we present estimates of the contribution of carbon pricing to reducing national carbon dioxide (CO2) emissions from fuel combustion, using several econometric modelling approaches that control for other key policies and for structural factors that are relevant for emissions. We use data for 142 countries over a period of two decades, 43 of which had a carbon price in place at the national level or below by the end of the study period. We find evidence that the average annual growth rate of CO2 emissions from fuel combustion has been around 2 percentage points lower in countries that have had a carbon price compared to countries without. An additional euro per tonne of CO2 in carbon price is associated with a reduction in the subsequent annual emissions growth rate of approximately 0.3 percentage points, all else equal. While it is impossible to fully control for all relevant influences on emissions growth, our estimates suggest that the emissions trajectories of countries with and without carbon prices tend to diverge over time. [ABSTRACT FROM AUTHOR]

This paper identifies critical lessons from the climate change experience to guide how communications and engagement on negative emissions can be conducted to encourage functional public and policy discourse. Negative emissions technologies present a significant opportunity for limiting climate change, and are likely to be necessary to keep warming below 2°C. While the concept of negative emissions is still in its infancy, there is evidence of nascent polarization, and a lack of nuance in discussion of individual technologies. We argue that if negative emissions technologies are to be implemented effectively and sustainably, an effective governance regime is needed; built on functional societal discourse and avoiding the ideological baggage of the broader climate change debate or the controversies concerning geoengineering. At its core, our argument is to avoid the ideological bundling of negative emissions; this can be pursued directly and via careful selection of communication frames and the use of non-partisan, trusted messengers. Whether these lessons are heeded may determine if negative emissions are governed proactively, or are distorted politically, misused and delayed. [ABSTRACT FROM AUTHOR]

Around one‐third of Australia's coal‐fired power stations closed between 2012 and 2017, with most of the remainder expected to close over coming decades. Current investment in generation capacity is primarily in the form of alternative power, especially wind and solar. In this paper, we conduct an event study to assess the local unemployment effects of Australia's coal‐fired power station closures, an issue of considerable interest given the prominence of coal‐fired power stations in local economies. Our analysis uses monthly regional labour force survey data from the Australian Bureau of Statistics. We find that on average there has been an increase in local unemployment of around 0.7 percentage points after closures of coal‐fired power stations, an effect that tends to persist beyond the months immediately after closures. The findings raise questions about appropriate policy responses for dealing with local structural adjustment issues facing coal‐reliant communities. [ABSTRACT FROM AUTHOR]

China plans to launch its nationwide Emissions Trading Scheme (ETS) in 2017. Uncertainty in China’s future economic growth rate and its effect on underlying emissions may need to be addressed to ensure stability of the scheme. This article investigates anex-postcap adjustment mechanism for China’s ETS. An applicable rule for indexation of emissions targets to gross domestic product (GDP) adjustment is presented. Such anex-postoptimal emissions intensity target is estimated in an empirical simulation of the Hubei ETS, a large pilot scheme in a fast-growing Chinese province. And its implications for China’s planned national ETS have been discussed. The article finds that by correcting the emissions cap for the difference between expected and realized GDP, theex-postadjustment can minimize the abatement costs. It can also limit the influence of uncertainties, as it minimizes the standard deviation of realized abatement, abatement cost, and allowance price for a given expected emissions reduction. In addition, with a limited number of parameters requiring estimation, theex-postcap adjustment mechanism is feasible. It is consistent with the anticipated design of China’s planned national ETS and could be used alongside other design options such as price corridors. POLICY RELEVANCE It will be important for the stability of China’s planned national ETS to address uncertainty about future GDP growth which can significantly affect underlying emissions growth. This paper proposes a specific solution, namely anex-postcap adjustment mechanism for the ETS cap. This method provides flexibility with transparent rules, would be consistent with China’s overall ETS policy design, and could be implemented in practice as the required parameters can be readily estimated. [ABSTRACT FROM AUTHOR]

Energy is needed for economic growth, and access to cheap, reliable energy is an essential development objective. Historically most incremental energy demand has been met through fossil fuels; however, in future that energy will have to be low carbon and ultimately zero-carbon. Decarbonization can and needs to happen at varying speeds in all countries, depending on national circumstances. This article reviews the implications of a transition to low-carbon energy on economic growth and development in current low-income countries. It sets out empirical findings about trajectories for energy intensity and emissions intensity of economic growth; explores pathways to accelerate decarbonization; reviews the theoretical and empirical literature on economic costs and co-benefits of energy decarbonization; and assesses analytical approaches. It discusses the opportunities that might arise in terms of a cleaner, more dynamic and more sustainable growth model, and the options for developing countries to implement a less-carbon intensive model of economic development. WIREs Clim Change 2018, 9:e495. doi: 10.1002/wcc.495 This article is categorized under: Climate Economics > Economics and Climate Change, Climate and Development > Decoupling Emissions from Development [ABSTRACT FROM AUTHOR]

Policy uncertainty is dogging emissions-trading schemes. On 1 July, Australia introduced the largest carbon-pricing scheme outside the European Union, with a higher price for carbon permits than in the EU [...]

Any limit on future global warming is associated with a quota on cumulative global CO2 emissions. We translate this global carbon quota to regional and national scales, on a spectrum of sharing principles that extends from continuation of the present distribution of emissions to an equal per-capita distribution of cumulative emissions. A blend of these endpoints emerges as the most viable option. For a carbon quota consistent with a 2 °C warming limit (relative to pre-industrial levels), the necessary long-term mitigation rates are very challenging (typically over 5% per year), both because of strong limits on future emissions from the global carbon quota and also the likely short-term persistence in emissions growth in many regions. [ABSTRACT FROM AUTHOR]

China needs to reduce its carbon emissions if global climate change mitigation is to succeed. Conventional economic analysis views cutting emissions as a cost, creating a collective action problem. However, decarbonization can improve productivity and provide co‐benefits that accord with multiple national policy objectives. We track China's progress in reducing the emissions intensity of the economy, and construct a macro scenario with China's carbon emissions peaking in the 2020s. Investment in greater energy productivity and economic restructuring away from heavy industries can bring productivity gains, and decarbonization of energy supply has important co‐benefits for air pollution and energy security. Combined with lower climate change risks and the likelihood that China's actions will influence other countries, this suggests that cutting carbon emissions is not only in China's self‐interest but also in the global interest. To properly identify the true costs and benefits of climate change action requires new thinking in economic analysis. [ABSTRACT FROM AUTHOR]

A review of the article "The changing fortunes of a policy entrepreneur: The case of Ross Garnaut," by Mark Beeson and Diane Stone, which appeared within this journal during 2013, volume 48, is presented.

The authors discuss the need for policymakers to charge carbon tax on the difference between emissions and fixed threshold to achieve full potential to induce large emission reductions. They stress that carbon taxing has the advantage over carbon trading in creating a stable price, while not undermining other carbon control efforts that have a role in ineffective carbon pricing. They emphasize the strong motive of large, carbon-intensive companies to lobby politically for more free carbon.

Australia's carbon-pricing policy remains in doubt due to a lack of bipartisan political support. A survey of Australian-based carbon-pricing experts demonstrates profound policy uncertainty: 40 per cent of respondents expect the current carbon-pricing mechanism to be repealed, but 80 per cent expect that there will be a carbon price in 2020. The forward price curve is U-shaped and has great variance, with the 60 per cent confidence interval spanning from zero to A$25/t in 2020. Carbon policy uncertainty causes large excess costs in Australia's energy sector and may result in delay and diversion of investment. [ABSTRACT FROM AUTHOR]

We analyse the long-term efficiency of the emissions target and of the provisions to reduce carbon leakage in the Australian Government’s Carbon Pollution Reduction Scheme, as proposed in March 2009, and the nature and likely cause of changes to these features in the previous year. The target range of 5–15 per cent cuts in national emission entitlements during 2000–2020 was weak, in that on balance it is too low to minimise Australia’s long-term mitigation costs. The free allocation of output-linked, tradable emissions permits to emissions-intensive, trade-exposed (EITE) sectors was much higher than proposed earlier, or shown to be needed to deal with carbon leakage. It plausibly means that EITE emissions can rise by 13 per cent during 2010–2020, while non-EITE sectors must cut emissions by 34–51 per cent (or make equivalent permit imports) to meet the national targets proposed, far from a cost-effective outcome. The weak targets and excessive EITE assistance illustrate the efficiency-damaging power of collective action by the ‘carbon lobby’. Resisting this requires new national or international institutions to assess lobby claims impartially, and more government publicity about the true economic importance of carbon-intensive sectors. [ABSTRACT FROM AUTHOR]

Australia is establishing an economy-wide emissions trading scheme, with a detailed proposal tabled by government in December 2008 and a scheme start planned for 2011. The proposal is for unilateral linking through the Clean Development Mechanism and Joint Implementation, but no initial bilateral linkages. Concerns about permit prices rising too high are prominent, and are reflected in a ban on permit sales and a price cap provision. This article evaluates the proposed Australian scheme with regard to international emissions trading and linkages. Different scenarios for the Australian permit price under unilateral linking are considered. Options for bilateral linking with the European Union and New Zealand schemes are evaluated. We argue that Australia should dismantle the obstacles to linking, including the proposed price cap, and move towards bilateral linking with suitable schemes. [ABSTRACT FROM AUTHOR]

This paper examines the implications of international efforts to mitigate the impacts of human activity on climate for countries in the Asian Pacific region. The Asian Pacific region is the major source of global growth in greenhouse gas emissions. To reduce global emissions requires strong action in Asian countries, particularly China and India. Domestic policies to limit the growth in greenhouse gas emissions are already in place in some Asian countries, in part driven by the desire to limit energy consumption. But much more ambitious policies are needed to turn emission trends around. [ABSTRACT FROM AUTHOR]

Effective climate policy requires global emissions of greenhouse gases to be cut substantially, which can be achieved by energy supply technologies with lower emissions, greater energy use efficiency and substitution in demand. For policy to be efficient requires at least fairly uniform, fairly pervasive emission pricing from taxes, permit trading or combinations of the two; and significant government support for low-emission technologies. We compare the technology-focused climate policies adopted by Australia and the ‘Asia–Pacific Partnership on Clean Development and Climate’ (AP6), against this policy yardstick. We find that such policies omit the need for emission pricing to achieve abatement effectively and efficiently; they over-prescribe which abatement actions should be used most; they make unrealistic assumptions about how much progress can be achieved by voluntarism and cooperation, in the absence of either adequate funding or mandatory policies; and they unjustifiably contrast technology-focused policy and the Kyoto Protocol approach as the only two policies worth considering, and thus ignore important policy combinations. [ABSTRACT FROM AUTHOR]

Political and economic stability prevailed in Indonesia to early June 2007. President Yudhoyono made some badly needed changes to his cabinet, but left the core economic team unchanged. This inspired further confidence in the government's economic policies, yet it still fails to satisfy public expectations. The Lapindo mudflow disaster continues to weigh on the government, with no clear strategy apparent. The economy shows stable macroeconomic fundamentals. Growth remained at around 6% p.a., driven mainly by investment and exports. The exchange rate strengthened and the stock market continued its rise. The central bank lowered the policy interest rate further, but this is likely to have little effect on growth, and brings some macroeconomic risks. Increasing or even maintaining current growth rates could be a challenge, given that export growth depends strongly on the global commodity boom, and improvements in the investment climate remain uncertain. The parliament passed the long-awaited new investment law, which promises a more open and friendly investment regime. Doubts surround the implementation of the law, however. There are concerns that the new negative list could be overly protective and that the continued role of the Investment Coordinating Board may cause coordination problems among agencies and with sub-national governments. Boosting growth in manufacturing could be the key to higher overall growth. Structural change in the manufacturing sector over recent years has seen labour-intensive industry decline in terms of both output and exports, mainly because of rigid labour policies. Efforts to boost private sector investment in infrastructure still show limited success. Implementation of regulatory and bureaucratic reforms is ineffective, and domestic financing remains in short supply. Public provision of infrastructure needs to increase, but suffers from shortcomings in fiscal management and a mismatch between the often cross-district nature of infrastructure projects and the now strongly district-based budgetary authority. Electricity supply exemplifies how the lack of well-designed investment strategies limits Indonesia's growth potential. Power sector investment has stagnated despite strong growth in electricity demand, and current plans for coal-based capacity expansion lack thorough planning. An emerging long-term challenge for policy makers is climate change. Ahead of the December UN climate change conference in Bali, recent reports have highlighted Indonesia's vulnerability to climate change and its contribution to global greenhouse gas emissions, predominantly from deforestation. Slowing or halting of deforestation is unlikely to occur without large-scale international financial flows. [ABSTRACT FROM AUTHOR]

A process for reducing emissions from deforestation in developing countries has been initiated under the UNFCCC. Efforts to agree on a legally binding instrument to halt deforestation have previously failed in other international fora. The magnitude of the social, economic, technical and political complexities underlying deforestation have led to negotiations being challenging. What policy instruments could provide incentives to reduce deforestation, and how could these instruments be framed, under the UNFCCC? This article analyses the advantages and disadvantages of the available alternatives within and outside of the Kyoto Protocol. Staying within the Kyoto framework means low institutional development costs, established but limited incentives for action, and low flexibility. Alternatives outside the Protocol provide higher institutional development costs, uncertainties with regard to the incentives, but greater flexibility. We argue that a separate protocol may be the most viable option, as it could offer the necessary flexibility and avoid some technical and political pitfalls that would be likely to beset new efforts under the Kyoto Protocol. The article also presents the concept of 'committed forests' as a means of defining geographically where the reduction of emissions from deforestation can take place. [ABSTRACT FROM AUTHOR]

Focuses on the influence of developing countries on the outcome and future implementation of the Kyoto Protocol on climate change. Recognition of the fundamental dilemmas of the issue; Significance of the participation of developing countries in establishing global climate change policy; Forces and interests against a second commitment period of the Kyoto Protocol.