A Strategy for International Climate Negotiations

For International Climate Negotiations

Carbon Pricing Derailed by Cap-n-Traders

“All countries are relatively sceptical on international market mechanisms,” said Niklas Hoehne, founding partner of research group NewClimate Institute. “They are open to have national trading mechanisms or national pricing, but to have these mechanisms internationally, there is a lot of reluctance.” Reuters

In other words, they would accept a commitment to a global carbon price, as advocated on this website, because it does not ask countries to trade billions of dollars worth of permits with other countries. They price their own carbon and keep their revenues. But they won’t have random market fluctuations determining when and who they have to pay for permits—international cap and trade.

Currently the leading advocates of the road-blocking cap-and-trade proposal are Jean Tirole (2014 Nobel Prize in Econ) and his fellow economist Christian Gollier. —1 June 2015, in the Economist.