WRI (2007): Slicing the Pie: Sector-based Approaches to International Climate Agreements

WRI (2007): Slicing the Pie: Sector-based Approaches to International Climate Agreements

This study explores the potentials of international sectoral agreements to define emission reduction targets while considering concerns regarding the distortion of international competitiveness, leakages and increasing participation and international cooperation. Five models how sectoral approaches could contribute to international agreements are discussed.Sectoral targets can be defined by sectoral intensity indicators or a single target emissions rate based on a particular high-performing technology or other ambitious benchmark. Sector by sector contributions to global emissions are compared to characteristics of the individual sector and if an international sectoral agreement could fit in.

 

Summary of conclusions

  • Future policy discussion needs to be much more specific in discussing sectoral agreements
  • The challenge of sectoral approaches is to deal with international competitiveness issues while maintaining downward pressure on highly emitting sectors.
  • Sectoral crediting approaches may be challenging in sectors sensitive to international competition
  • Technology approaches have considerable potential, and may be negotiated without direct sector involvement
  • Both the UNFCCC and external processes have a potential role as fora for sectoral approaches, but the greater negotiating burden may prove challenging