Summary and Conclusions

The protection of the earth’s atmosphere requires substantial efforts to reduce CO₂ emissions – especially in countries with very high per capita emissions. To meet the climate target of stabilising the concentration of greenhouse gases in the atmosphere existing climate policies will have to be expanded and new policies will have to be implemented. Climate policies such as energy or emission taxes, greenhouse gas emission trading systems, subsidies, standards or information-related instruments change the incentives structure of economic agents towards more climate-friendly processes and products. They also alter the profitability of new climate-friendly technologies, leading to additional research and development efforts towards such technologies, eventually resulting in a less carbon-intensive production and consumption structure of the entire economy.