Many countries have pledged targets or actions to reduce greenhouse gas
emissions in the Copenhagen Accord. New OECD analysis shows that
these pledges go towards but are not ambitious enough to limit
long-term temperature rise to 2°C.

While not cheap, the costs of these pledges
are limited compared to expected economic growth. Ambitious global
action to mitigate greenhouse gas emissions is not only necessary,
but also economically rational. Using market-based instruments to
implement the pledges also has the potential to generate sizable
fiscal revenues.

Tackling the problem of global climate
change requires a high level of international cooperation. Broad
based participation is needed, involving not only developed, but
also developing countries.

To date, more than 120 countries plus the European Union have
associated themselves with the Accord - ranging from major emitters
such as the United States and China, to smaller countries that are
vulnerable to climate change impacts, such as the Maldives.

The Accord recognises the scientific view that the increase in
average global temperature should be below 2°C. The Accord also
invited all Parties to the UNFCCC to submit pledges for targets or
actions to reduce their greenhouse gas (GHG) emissions.

OECD analysis shows that while the emission targets currently
pledged by a wide range of countries under the Accord are an
important and welcome start to a global solution, the pledges are
not ambitious enough to put us on a pathway to limit average global
temperature rise to 2°C.

The pledges do reverse the trend
of growing emissions by 2020, however there remains a sizable gap
from the trajectory outlined by the IPCC for a 2°C
pathway.

While it is promising that many countries are willing to commit
to ambitious mitigation action, the pledged targets and actions as
submitted to the Copenhagen Accord are insufficient when compared
to the emission reductions suggested by the IPCC to keep global
temperature change limited to 2°C.

This OECD assessment is in line with other model assessments
(UNEP, 2010). While not cheap, the costs of these pledges are
limited compared to expected economic growth, and substantially
less than most estimates of the costs of inaction. Ambitious global
action to mitigate greenhouse gas emissions is thus not only
necessary, but also economically rational.

Climate policies also provide important environmental benefits
and have the potential to generate fiscal revenues that are
sizable, when market instruments are used. This is especially
attractive in current times of financial hardship. Ambitious
climate policies are an essential part of a broader green growth
strategy that aims at a strong, fair and clean global economy.

target=”_blank”>The full analysis is available here

Source: www.oecd.org