Time to ditch Kyoto

11/7/2007

Gwyn Prins and Steve Rayner in Nature.com:

The Kyoto Protocol is a symbolically important expression of governments' concern about climate change. But as an instrument for achieving emissions reductions, it has failed1. It has produced no demonstrable reductions in emissions or even in anticipated emissions growth. And it pays no more than token attention to the needs of societies to adapt to existing climate change. The impending United Nations Climate Change Conference being held in Bali in December — to decide international policy after 2012 — needs to radically rethink climate policy.

Kyoto's supporters often blame non-signatory governments, especially the United States and Australia, for its woes. But the Kyoto Protocol was always the wrong tool for the nature of the job. Kyoto was constructed by quickly borrowing from past treaty regimes dealing with stratospheric ozone depletion, acid rain from sulphur emissions and nuclear weapons. Drawing on these plausible but partial analogies, Kyoto's architects assumed that climate change would be best attacked directly through global emissions controls, treating tonnes of carbon dioxide like stockpiles of nuclear weapons to be reduced via mutually verifiable targets and timetables. Unfortunately, this borrowing simply failed to accommodate the complexity of the climate-change issue2.

Kyoto has failed in several ways, not just in its lack of success in slowing global warming, but also because it has stifled discussion of alternative policy approaches that could both combat climate change and adapt to its unavoidable consequences. As Kyoto became a litmus test of political correctness, those who were concerned about climate change, but sceptical of the top-down approach adopted by the protocol were sternly admonished that "Kyoto is the only game in town". We are anxious that the same mistake is not repeated in the current round of negotiations.

Already, in the post-Kyoto discussions, we are witnessing that well-documented human response to failure, especially where political or emotional capital is involved, which is to insist on more of what is not working: in this case more stringent targets and timetables, involving more countries. The next round of negotiations needs to open up new approaches, not to close them down as Kyoto did.

Economic theory recognizes the futility of throwing good money after bad. In politics, however, sunk costs are often seen as political capital or as an investment of reputation and status. So we acknowledge that those advocating the Kyoto regime will be reluctant to embrace alternatives because it means admitting that their chosen climate policy has and will continue to fail. But the rational thing to do in the face of a bad investment is to cut your losses and try something different.

Influenced by three major policy initiatives of the 1980s, the Kyoto strategy is elegant but misguided. Ozone depletion, acid rain and nuclear arms control are difficult problems, but compared to climate change they are relatively simple. Ozone depletion could be prevented by controlling a small suite of artificial gases, for which technical substitutes could be found. Acid rain was mainly caused by a single activity in a single industrial sector (power generation) and nuclear arms reductions were achieved by governments agreeing to a timetable for mutually verifiable reductions in warheads. None of this applies to global warming.

In practice, Kyoto depends on the top-down creation of a global market in carbon dioxide by allowing countries to buy and sell their agreed allowances of emissions. But there is little sign of a stable global carbon price emerging in the next 5–10 years. Even if such a price were to be established, it is likely to be modest — sufficient only to stimulate efficiency gains3. Without a significant increase in publicly funded research and development (R&D) for clean energy technology and changes to innovation policies, there will be considerable delay before innovation catches up with this modest price signal.

On present trends, for another 20 years, the world will continue installing carbon-intensive infrastructure, such as coal power plants, with a 50-year lifetime. If climate change is as serious a threat to planetary well-being as we have long believed it to be, it is time to interrupt this cycle.

Climate change is not amenable to an elegant solution because it is not a discrete problem. It is better understood as a symptom of a particular development path and its globally interlaced supply-system of fossil energy. Together they form a complex nexus of mutually reinforcing, intertwined patterns of human behaviour, physical materials and the resulting technology. It is impossible to change such complex systems in desired ways by focusing on just one thing.

Social scientists understand how path-dependent systems arise4; but no one has yet determined how to deliberately unlock them. When change does occur it is usually initiated by quite unexpected factors. When single-shot solutions such as Kyoto are attempted, they often produce quite unintended, often negative consequences. The many loopholes that have enabled profiteers to make money from the Clean Development Mechanism, without materially affecting emissions, are examples5. Therefore, there can be no silver bullet — in this case the top-down creation of a global carbon market — to bring about the desired end...

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