The formula: Targets based on the ratio of national carbon emissions to GDP. Countries might be asked to reduce the 鈥渃arbon intensity鈥� of their economies by some percentage. In 2002, the Bush administration set a target for the US of improving its 鈥渃arbon intensity鈥� by 18 per cent in the coming decade. This sounds impressive, except that most of the industrialised world, including the US, has been on a similar trajectory of declining carbon intensity for decades.
Advantages: A clear incentive for moving to clean technologies while not penalising countries that are efficient at using carbon emissions to create wealth.
Disadvantages: Total carbon emissions may continue to rise.
Advertisement
Winners: Technologically advanced nations with room to reduce their carbon intensity, such as US and Australia.
Losers: Countries in the early stages of industrialisation, such as India. They typically reach a peak of carbon intensity before declining as environmental concerns grow and cleaner technologies are adopted.
Proponents in Bonn: US.
