Changing Climates: Interdependencies on Energy and Climate

1,36

MB

Security for China and Europe

101

stron

5694

ID

Royal Institute of International Affairs

2007

rok

Contents

Acknowledgments v

Executive Summary vii

1 From Interdependencies to Action 1

1.1 Business as Usual is not an option 2

1.1.1 Energy security 2

1.1.2 Climate change and the avoidable cost of inaction 4

1.2 Understanding China–EU interdependencies 7

1.2.1 Integrated political economy 7

1.2.2 Common energy and climate security 10

1.2.3 Choices made in China matter 13

1.2.4 Harnessing EU global leadership 15

1.3 Building a joint vision towards a low-carbon future 18

1.3.1 Changing attitudes 18

1.3.2 Avoiding lock-in of carbon-intensive investments 19

1.3.3 Leading the race for radical technological solutions 19

1.3.4 Capturing gains through trade and investment 20

2 Avoiding Carbon Lock-In 21

2.1 Avoiding carbon lock-in 22

2.1.1 Power sector 23

2.1.2 Building sector 24

2.1.3 Transport sector 27

2.2 Measures to avoid lock-in 28

2.2.1 Energy efficiency 28

2.2.2 Generation options 30

2.2.3 Heating and cooling 35

2.2.4 Transport sector 36

2.3 Looking forward 38

3 Leading the Technology Race 40

3.1 Target areas for low-carbon technological innovation 41

3.2 Focusing domestic innovation systems towards a low-carbon future 43

3.2.1 National efforts to support research and development 45

3.2.2 Challenges to existing efforts to stimulate low-carbon innovation 46

3.3 Creating the enabling conditions for innovation and diffusion of key technologies 47

3.3.1 Sending a strong signal to the market 47

3.3.2 Harnessing EU–China links 48

3.3.3 Making better use of integrated production chains 50

3.3.4 Getting intellectual property right for innovation and diffusion 52

4 Capturing Gains through Trade and Investment 55

4.1 Towards smarter trade and investment 55

4.2 A snapshot of the current state of play 56

4.2.1 Tariff and non-tariff barriers 56

4.2.2 Mechanisms to discourage trade in carbon-intensive sectors 57

4.2.3 Thinking through embedded carbon 58

4.3 Forging closer links 59

4.3.1 Smarter trade 59

4.3.2 Standards 61

4.3.3 Services liberalization 63

4.3.4 Investment 63

4.3.5 Low-carbon economic zones (LCZs) 65

4.4 Looking forward 68

5 Mapping the Pathways: Strengthening EU–China Cooperation on Energy and Climate Security 69

Annex 1: Chinese Energy Policy 74

Annex 2: EU Energy Policy 76

Bibliography 79