Copenhagen & Beyond: Market Mechanisms
Jim Efstathiou asks the panelist their views on the market mechanisms that are being employed to marshal the money that is needed to address the climate change. He asks specifically about the Clean Development Mechanism (CDM), an agreement from the Kyoto Protocol which allows countries committed to reducing and limiting greenhouse gas emissions to invest in emission-reduction projects in developing countries. Zhenmin Liu, Ambassador Extraordinary and Deputy Permanent Representative of China to the United Nations, responds that we should not rely entirely on market mechanisms and perhaps some other government mechanisms should be developed. He proposes that there are 4 topics which need to be addressed in the climate change negotiations: a global cap on emissions, the long term goal, historical stability, and level of industrialization. Elliot Diringer, Vice President of International Strategies, Pew Center on Global Climate Change, adds that he believes the United States has not put adequate incentives in place to encourage clear energy, whereas China is positioning itself well in the new global clean energy economy. Debate over this topic relates to a larger theme of current climate change negotiations and the role of developed/industrialized versus developing nations. The Kyoto Protocol is an agreement amongst exclusively industrialized nations. One of the key areas of contention relates to whether or not any future binding agreements must also include non-industrialized and industrializing nations.
Questions for students:
1. Ask students to list the pros and cons of the Clean Development Mechanism. How does it affect industrialized countries versus developing countries? How do issues of nation's rights versus the good for the planet, economics and fairness fit in to this mechanism?
2. Ambassador Liu suggests that perhaps other government mechanisms should be developed. What are some examples of other possible mechanisms and what is the likelihood of success?
3. Elliot Diriger contends that a commitment to reducing greenhouse gas emissions can be beneficial to countries' economies in the long term by positioning them as leaders of clean energy. Weigh the short and long term risks and benefits of adhering to a cap on emissions. If you were the president or prime minister of a country, what would you do?
Related Debate Videos:
Copenhagen & Beyond: Enforcement Mechanisms
Copenhagen & Beyond: Goals
Click here for an overview of the debate.
Education Programs are made possible by generous funding from The Freeman Foundation.
Generous support for Education Programs is provided by Continental Airlines.
Additional support is provided by The Norinchukin Foundation, Inc., Chris A. Wachenheim, Joshua N. Solomon, Jon T. Hutcheson, Lesley Nan Haberman, Joshua S. Levine and Nozomi Terao.
Student and Family Programs are supported by the New York City
Department of Cultural Affairs, in partnership with the City Council.
