International climate policy

© BDI/Fotolia

The BDI wants effective and cost-efficient climate protection throughout the world. A sensible Post-2012 Climate Regime with clear objectives should therefore be concluded at international level.

The results of the UN Climate Conference in Copenhagen have not met German business' expectations as the conference made no progress towards an internationally binding agreement. In the interest of worldwide climate protection and the creation of uniform international competitive conditions, German industry adheres to the goal of a binding international agreement.

It is unclear whether a Post-Kyoto Agreement will be concluded at the next UN Climate Conferences to be held in Mexiko and South Africa.

At the same time the US EIA (Energy Information Administration) has declared that under current conditions global CO2 emissions will rise by 40 percent (2006 – 2030). Scientists (www.ipcc.ch ) say it is crucial emissions in industrial countries be cut by 25 to 40 percent (1990 – 2020).

The USA is at best willing to cut emissions by 2020 by 17 percent compared to 2005.The EU on the other hand has decided on a unilateral cut of 20 percent (1990 – 2020). The BDI study compiled by McKinsey (2007; updated 2009) showed that a cut of 30 percent (1990 – 2020) would be ambitious for Germany but altogether possible. To date Germany has cut emissions by more than 23 percent (as compared to 1990). Germany industry played a major role in achieving this reduction.

USA and China are responsible for 40 percent of CO2 emissions worldwide. Developing countries and emerging market economies such as China and India, which according to the Kyoto Protocol do not have to cut their greenhouse gases, are responsible for more than half the world's CO2 emissions. At the end of 2008 China was in first place, ahead of the USA, as regards CO2 emissions due to its enormous economic growth. India is about to replace Russia in third place.

German industry's main concern is to create a "level playing field". All major emitters should be included in a new climate agreement laying down comparable binding absolute targets for cutting emissions for all industrial countries. Emerging market economies should have to make appropriate contributions to limit their emissions increases.

German industry calls for clear regulations and incentives to develop as well as distribute and implement "low carbon" technologies on a wider basis, as well as consistent further development and strengthening of the Clean Development Mechanism (CDM).