CONTENTS ixAcknowledgments xiAbbreviations C H A P T E R 1 1 Introduction and Overview 4 Technology Options to Stabilize Greenhouse Gas Emissions 7 The Debate on Trade and the Environment Revisited 8 Focus and Results of This Study 10 Findings and Recommendations 16 Notes CHAPTER 2 18Climate Change Policies and International Trade: Challenges and Opportunities 19 Do Climate Change Measures Affect Competitiveness? 29 In Search of Carbon Leakage: Examining the Relocation of Energy-Intensive Industries to Developing Countries 35 Trade Measures 39 WTO and Kyoto Protocol: Exploring Synergies for Advancing Both Trade and Climate Agendas 41 Key Findings from Chapter 2 41 Notes CHAPTER 3 45 Beyond Kyoto: Striving for a Sustainable Energy Future in Developing Countries 46 Global Emissions Scenarios through 2030 47 Clean Energy for the Future 52 Liberalization of Trade in Clean Energy Technologies 54 Clean Coal Technology 59 Wind Power Technology 62 Solar Photovoltaics (PV) Technology 68 Energy-Efficient Lighting 70 Conclusions 72 Key Findings from Chapter 3 72 Notes CHAPTER 4 73Opportunities for Win-Win-Win: Liberalizing Trade in Environmental Goods and Services 74 Complexity Surrounding Environmental Goods (EG) Discussions 78 Linking of Current EG Discussions to Climate Change Mitigation 80 Options for Negotiating a Climate-Friendly Package within the WTO Framework 82 Lessons from Current EG Discussions for Negotiating a Climate-Friendly Package 87 The Way Forward on a Possible Agreement on Climate Change Mitigation Products 95 Key Findings from Chapter 4 95 Notes CHAPTER 5 97 Conclusions and Recommendations 97 Findings 99 Recommendations Appendixes 105 APPENDIX 1. Kyoto Protocol: Countries Included in Annex B to the Kyoto Protocol and Their Emissions Targets 107 APPENDIX 2. Measures to Combat Climate Change 107 Regulatory Measures 109 Fiscal Measures 111 Market-Based Instruments 113 Voluntary Agreements (VAs) 114 Notes 117 APPENDIX 3. Model Specification and Results 123 APPENDIX 4. Industry-Specific Effects of Carbon Taxes and Energy Efficiency Standards 127 APPENDIX 5. Partial Equilibrium Trade Policy Simulation Model 129 APPENDIX 6. Maximum and Applied Tariff Rates on Select Climate-Friendly Technologies 133 Bibliography 139 Index