Transatlantic Transition towards a Low Carbon Economy

An Ecologic Dinner Dialogue featuring Christopher Flavin, President of Worldwatch Institute, was held in Berlin on 27 April 2009. Christopher Flavin provided detailed insights on recent developments in U.S. climate and energy policy. Participant discussion focused primarily on the implications of these U.S. developments for international climate policy. The event was part of the series of launch activities held in honour of the opening of Ecologic Institute’s U.S. office in Washington, D.C.

In his opening remarks, Christopher Flavin expressed his optimism about the ability of expected changes in U.S. policy to significantly accelerate progress toward a low-carbon economy. Though he believes the recent change in federal administration certainly plays an important role, he pointed out that there are deeper reasons for expecting major shifts in U.S. energy and climate policy. Chief among these are the dramatic rise in energy prices in recent years, the maturing of the technologies, industries and markets in the renewables sector, as well as the significant and widespread energy action already taken by states and local governments.

He highlighted recent legislative developments in the House and Senate, focusing primarily on the hearings underway in the House on the Waxman-Markey climate and energy bill, which among other things would establish a CO2 cap-and-trade program. The House of Representatives is on a faster track than the Senate in terms of developing viable climate legislation. Regarding international climate negotiations, Christopher Flavin remarked that it is better to have an achievable emissions target that can be met with real domestic emissions reductions than an overambitious target coupled with an ineffective carbon-offset system.

The subsequent discussion touched upon the following issues and questions:

• To what degree U.S. actions could influence major developing countries to accept a rigorous climate agreement?
• The key elements likely to be debated in the U.S. climate legislation (e.g. the use of auctions, carbon-offset mechanism and border adjustment taxes)
• The role of venture-capital financing in spurring technology development and the potential for the U.S. and other countries to leapfrog Europe in development and deployment of clean energy and energy efficiency technologies.

Further Links:

• Christopher Flavin (biography)
• Worldwatch Institute website
• Ecologic Project: Mechanisms for Linking Emissions Trading Schemes
• Ecologic Project: Inclusion of aviation in EU-emissions trading
• Ecologic Lecture: European and American Approaches to Climate Change: Prospects for a Common Trans-Atlantic Agenda