Energy & Climate - A contribution to the dialogue on long term cooperative action

Nov 2006

The World Business Council for Sustainable Development (WBCSD) Focus Area Energy and Climate offers the following thought piece as a contribution to the dialogue on long-term cooperative action on climate change.
This document offers some initial thinking on possible options for action within a revised international framework after 2012.
Energy is the fuel for growth, an essential requirement for economic and social development. By 2050, energy demand could double or even triple as population rises and developing countries expand their economies.
The focus must be on improving energy efficiency within the global economy and managing emissions from the energy we use.
The solution must encompass both developed and developing economies and give business the confidence to invest in low carbon energy projects. For many low- and zero-carbon technologies to take their firm place in the market, a long-term value for GHG reductions is needed. In certain cases, such as CCS, there is no genuine business case without it.
Before business invests, it evaluates the future. It gauges long term supply and demand for its products, assesses the prevailing economic conditions including tax structures and policy frameworks and decides on an investment strategy. The investments required for managing GHG emissions challenge this model. The absence of clear long-term policy may mean no future demand for a given product or could leave a higher cost, early technology project without the needed incentives. Business needs to articulate its requirements, and in response government needs to provide clear signals as to where we are headed. Under the right conditions, and given the right tools, technologies can develop and be deployed quickly – leading ultimately to a fall in emissions.

By: World Business Council for Sustainable Development (WBCSD)

 
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