In its Summary for Policymakers of the AR4 Synthesis Report, the Intergovernmental Panel on Climate Change proposes "a wide variety of policies and instruments available to governments to create the incentives for mitigation action". With regard to Energy Supply, the Summary mentions:
Improved supply and distribution efficiency; fuel switching from coal to gas; nuclear power; renewable heat and power (hydropower, solar, wind, geothermal and bioenergy); combined heat and power; early applications of Carbon Dioxide Capture and Storage (CCS) (e.g. storage of removed CO2 from natural gas); CCS for gas, biomass and coal-fired electricity generating facilities; advanced nuclear power; advanced renewable energy, including tidal and wave energy, concentrating solar, and solar photovoltaic.
The following policies, measures and instruments show to be environmentally effective:
- Reduction of fossil fuel subsidies; Taxes or carbon charges on fossil Fuels; and
- Feed-in tariffs for renewable energy technologies; Renewable energy obligations; Producer subsidies
The Key Constraints for these policies are:
- Resistance by vested interests may make them difficult to implement; and
- May be appropriate to create markets for low emissions technologies
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