Nicholas Stern urges Howard to embrace Kyoto

Long-term vision is the key: The new global carbon market – which Sir Nicholas believed had “made a good start” – needed an immediate signal from governments that there would be further cuts to carbon emissions after the first Kyoto period expired in 2012. “A lot of the working of carbon markets depends on long-term investments.” Deciding to build a cleaner power station, for example, required a long-term vision.

Taxation and regulation are critical: But while the market was important for drawing private finance into clean power investments, it was not the only way to drive change. Also critical were taxation and government regulation. Many countries taxed gasoline to reduce its use, for example.

The market is important but is not the only way to drive change for clean power investments, such as  taxation and government regulation, reported The Age (18/11/2006, p. 7).

The Age, 18/11/2006, p. 7

Source: Erisk Net  

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