Climate Finance: Regulatory and Funding Strategies for Climate Change and Global Development

Contents

Climate Finance v Contents Acknowledgments xi Foreword: NYU Abu Dhabi and the Sustainable Environment xiii Mariët Westermann and Philip Kennedy Summary of Key Findings and Recommendations xv About the Contributors xvii part i Climate Change and Mitigation: Overview and Key Themes 1 Climate Finance for Limiting Emissions and Promoting Green Development: Mechanisms, Regulation, and Governance 3 Richard B. Stewart, Benedict Kingsbury, and Bryce Rudyk 2 Understanding the Causes and Implications of Climate Change 35 Michael Oppenheimer 3 The Climate Financing Problem: Funds Needed for Global Climate Change Mitigation Vastly Exceed Funds Currently Available 42 Bert Metz 4 The Future of Climate Governance: Creating a More Flexible Architecture 48 Daniel Bodansky vi Contents part ii Proposals for Climate Finance: Regulatory and Market Mechanisms and Incentives A. Trading or Taxes? 5 Cap-and-Trade Is Preferable to a Carbon Tax 57 Nathaniel O. Keohane B. Reforming the Clean Development Mechanism (CDM) 6 Expectations and Reality of the Clean Development Mechanism: A Climate Finance Instrument between Accusation and Aspirations 67 Charlotte Streck C. Sectoral Programs for Emissions Control and Crediting 7 Why a Successful Climate Change Agreement Needs Sectoral Elements 79 Murray Ward 8 Sectoral Crediting: Getting the Incentives Right for Private Investors 85 Rubén Kraiem 9 Forest and Land Use Programs Must Be Given Financial Credit in Any Climate Change Agreement 90 Eric C. Bettelheim 10 Stock-and-Flow Mechanisms to Reduce Land Use, Land Use Change, and Forestry Emissions: A Proposal from Brazil 96 Israel Klabin D. Leveraging Trading to Maximize Climate Benefits 11 Mitigating Climate Change at Manageable Cost: The Catalyst Proposal 105 Bert Metz 12 Engaging Developing Countries by Incentivizing Early Action 111 Annie Petsonk, with Dan Dudek, Alexander Golub, Nathaniel O. Keohane, James Wang, Gernot Wagner, and Luke Winston Contents vii E. Linking Trading Systems 13 Carbon Market Design: Beyond the EU Emissions Trading Scheme 125 Henry Derwent F. Investor Perspectives 14 Incentivizing Private Investment in Climate Change Mitigation 135 Marcel Brinkman 15 Investment Opportunities and Catalysts: Analysis and Proposals from the Climate Finance Industry on Funding Climate Mitigation 143 Nick Robins and Mark Fulton part iii Bringing Developed and Developing Countries Together in Climate Finance Bargains: Trust, Governance, and Mutual Conditionality A. Meeting Developing Country Climate Finance Priorities 16 Developing Country Concerns about Climate Finance Proposals: Priorities, Trust, and the Credible Donor Problem 157 Arunabha Ghosh and Ngaire Woods 17 Developing Countries and a Proposal for Architecture and Governance of a Reformed UNFCCC Financial Mechanism 165 Luis Gomez-Echeverri 18 Climate Change and Development: A Bottom-Up Approach to Mitigation for Developing Countries? 172 Navroz K. Dubash 19 Operationalizing a Bottom-Up Regime: Registering and Crediting NAMAs 179 Rae Kwon Chung viii Contents B. Conditionality and Its Governance 20 From Coercive Conditionality to Agreed Conditions: The Only Future for Future Climate Finance 189 Jacob Werksman 21 Getting Climate-Related Conditionality Right 197 Kevin E. Davis and Sarah Dadush 22 Making Climate Financing Work: What Might Climate Change Experts Learn from the Experience of Development Assistance? 206 Ngaire Woods part iv National Policies: Implications for the Future Global Climate Finance Regime 23 Climate Legislation in the United States: Potential Framework and Prospects for International Carbon Finance 213 Nathaniel O. Keohane 24 The EU ETS: Experience to Date and Lessons for the Future 221 James Chapman 25 Greenhouse Gas Emissions and Mitigation Measures in China 228 Jie Yu 26 Cities and GHG Emissions Reductions: An Opportunity We Cannot Afford to Miss 234 Partha Mukhopadhyay 27 A Prototype for Strategy Change in Oil-Exporting MENA States? The Masdar Initiative in Abu Dhabi 241 Sam Nader part v Climate Finance and World Trade Organization (WTO) Law and Policy 28 The WTO and Climate Finance: Overview of the Key Issues 247 Gabrielle Marceau Contents ix 29 Carbon Trading and the CDM in WTO Law 254 Robert Howse and Antonia Eliason 30 Countervailing Duties and Subsidies for Climate Mitigation: What Is, and What Is Not, WTO-Compatible? 259 Robert Howse and Antonia Eliason 31 Border Climate Adjustment as Climate Policy 266 Alexandra Khrebtukova 32 Enforcing Climate Rules with Trade Measures: Five Recommendations for Trade Policy Monitoring 272 Arunabha Ghosh 33 Carbon Footprint Labeling in Climate Finance: Governance and Trade Challenges of Calculating Products’ Carbon Content 281 Sandra G. Mayson part vi Taxation of Carbon Markets 34 Fiscal Considerations in Curbing Climate Change 291 Lily Batchelder 35 Tax...