Abstract

At the very time when EC negotiators were pressing for the strongest possible language on stabilizing CO 2 emissions in the Climate Change Convention, the implementation of EC climate policy was running into serious difficulty. Widespread opposition and the political repercussions of the Danish referendum have undermined the Commission's proposals for a harmonized CO 2/energy tax and other Community-wide measures. A revised strategy incorporating clear incentives on individual member states to limit emissions is needed if the EC is to avoid continuing conflict, uncertainty and political embarrassment on the issue. Tradable emission permits provide the best means of matching the collective goal to the need for national-level responses.

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