World Economy Brief KIEP Staff Papers
발간물
KIEP Opinions
Mitigation of Greenhouse Gas Emissions through Market Mechanisms
- 저자 JUNG Jione
- 발간일2016-12-01
In the era of the Paris Agreement, every developing as well as developed country has its own emission reduction target. Cooperation among the countries is essential regardless of the cooperative nature, whether bilateral, regional or global. Areas that require cooperation are ways to share carbon credits, to finance projects and burden sharing in terms of financial resources, and to handle technology transfers from developed to developing regions. The most important point, however, is that the market mechanism should be driven by the private sector. It is the private sector that holds the technology and financial resources. It is especially important for governments to create an environment where the private sector can invest in developing low-carbon technology, so that private business can secure competitiveness overseas. Further, a mid- to long-term perspective is essential in building the climate change industry into a national growth engine. Meanwhile, it is better advised to invest limited government budgets, for example ODA, in the capacity-building of developing countries to help them absorb low-carbon technology and use it to achieve their own mitigation targets, create an enabling environment and develop a degree of readiness to carbon pricing. Financial flows through market mechanisms is the most advisable way to expand global climate finance, which is aiming for a target of USD 100 billion per annum by 2020.
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