Energy and climate change: what should the policy makers in Asia do?

The developing economies of the Asia and the Pacific region have an important role to play in responding to the global challenges of energy and climate change. At the most general level, any development initiative should be sustainable over the long-term; and based on an understanding of its global implications, particularly with respect to energy and climate change. But what are more specific actions that developing economies of the region can take to address the challenges of energy and climate change? Very broadly, the hope of keeping the atmospheric concentration of carbon dioxide at least within current levels (430 ppm) critically hinges on two key factors: (i) energy efficiency, promoted by national governments; and (ii) new policies that put a price on carbon – whether it is in the form of a tax on emissions or in a cap-and-trade system as provided under the Kyoto protocol. Before considering more specific options for the Asia and the Pacific countries, it is useful to put the basic issue in context.