Procedural leadership in climate policy: a European task

Abstract

In the process which has led to the UN Framework Convention on Climate Change, the European Union played an active role. In those years, the long-run perspective of European climate policy was geared to the idea of a carbon tax, while the US and OPEC formed a blocking coalition. Meanwhile, the US has adopted a more open attitude to climate policy, but it is highly unlikely that a substantial carbon tax will be implemented in the US in the foreseeable future. Forming a political consensus around this instrument has proved very difficult in Europe as well. Clearly, a fresh approach to climate policy is warranted. We argue that this approach should consist of putting into place a process of sequential decision making which is flexible, innovative and participatory. Such a process would lead beyond existing alternatives of taxation and regulation as defined by a seemingly omniscient political authority. Its rationale lies in the recognition of a ‘cost barrier’ which can be surmounted by the combination of patient multilateral negotiation, innovative business initiatives, and resonance with public opinion. The European Union is in an excellent position to take on a leading role in establishing such a process. Europe's special opportunity lies in the fact that her citizenry is supportive of ambitious climate policy as nowhere else in the world. Furthermore, the current situation of the European economies invites, and even demands, fresh thinking about the economic opportunities offered by a transition to sustainability.