New report 'points the way' on sectoral climate action[fr][de] 

Global sectoral industry approaches "are no panacea" for addressing climate change, and even if they can be agreed, "it is unclear at this moment whether they will ever become a substitute for legally binding commitments" between states to cut greenhouse gas (GHG) emissions, says the report , published on 16 May. 

Nonetheless, such agreements do have "potential value-added" and are "likely to lead to real GHG emissions reductions," it says.

Sectoral deals between energy intensive industries, notably steel, aluminium, cement and heavy chemicals, are being proposed by a number of industries and countries as an alternative to a legally binding global framework for reducing GHG emissions. The US in particular is a champion of such agreements, usually conceived as being based on voluntary GHG reduction pledges combined with technology and financial transfers to poorer countries with 'dirtier' industries. 

A number of EU energy intensive industries also favour sectoral agreements to binding emissions cuts, particularly if the lack of a global deal to reduce CO2 emissions would subject them to unfair competition from states with less stringent controls on emissions.

The Commission has admitted that solving the 'problematique' of the energy intensive sector is key to EU climate efforts (EurActiv 16/05/08).

But it remains unclear to what extent sectoral deals could be implemented as they are complex and "governments, negotiators and other stakeholders struggle to understand them," the report says.

In addition, many small or developing states are not convinced such deals would be favourable compared with a binding international CO2 reduction framework similar to the Kyoto Protocol. Japan, which is also in favour of such approaches, was criticised during a G20 meeting in March 2008 by a number of states, who say such deals will simply favour richer nations that already have more advanced 'clean' technologies.

The report recommends a number of options for reducing confusion and overcoming current barriers, including government-led pilot projects with select industries, industry-led setting of better performance benchmarks and the harmonisation of existing emissions databases.

Both industry and states should develop a clearer understanding of how to move forward on sectoral approaches before the next major meeting of the parties to the UN Framework Convention on Climate Change (UNFCCC) in Copenhagen in December 2009, the report recommends.