The lessons of practice

The availability of international subsidies through the Clean Development Mechanism (CDM) moderates the financial loss to some extent, especially since credits under the CDM have been eligible to trade on the European Emissions Trading System (ETS), but the implicit values of carbon in the policies to support renewable energy in developed countries are far higher than the values of carbon in tradi [...] The second part of this paper addresses the value of indicators in contributing to the measurement, verification and reporting of the policy commitments. [...] The disadvantage of this scheme is that it increases perceptions of risk to the developing country, as there is no guarantee of the future value of the reductions achieved. [...] The wider goal of the work is to feed into the research and consultation program at the International Institute for Sustainable Development (IISD), which is aimed at identifying ways in which trade and investment policy might most effectively serve the goal of addressing climate change, outlining in detail the challenges and possible modalities associated with the various policy options. [...] The model began to change in the late 1960s and early 1970s as the consequences of the Yom Kippur War and oil embargo made clear the need to treat the energy sector as a whole in order to create diverse and robust structures.