Abstract

Greenhouse Effect and Emission Quotas: the Challenges of a New Form of International Trade, by Olivier Godard In spite of all-pervasive differences between States, an international Convention on global climate change was adopted in Rio de Janeiro in June 1992 and followed by the Kyoto Protocol in December 1997. The latter introduced binding quantitative targets for industrial countries and, at the level of basic principles, mechanisms providing flexibility in the choice of national strategies. Such mechanisms are based on the 'emissions trading' concept. What can be learned from the diplomatic process about the ability of international negotiations to introduce cost-effective means of implementation ? What are the critical issues related to emissions trading for France in the post-Kyoto context ? Behind emissions we find issues of huge cost-savings, strategic flexibility and democracy in energy choices, while at the same time legitimate fears concern possible distortions of international competitiveness of industry and non-compatibility with green tax reforms. On paper, possible deviations can be mastered, since solutions do exist. The political will to implement them is more questionable.

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