the particular economic circumstances in two emerging economies and their initiatives to tackle increasing GHG emissions.

#### 4.3.1 The untapped potential in emerging economies

Experience suggests that primary energy use in developing countries can be cut by 30-50% because the cost of energy savings is negligible compared with the cost of increasing energy supply (Fujiwara and Egenhofer 2008). While energy intensity started declining mostly as a result of structural changes in emerging economies (and to an extent in economies in transition), much of the technical potential across the supply, transmission and use of energy is still to be tapped. Even so, major challenges remain. Without changes in policy frameworks and appropriate instruments to facilitate investment in new technologies, emerging economies are likely to follow a carbon-intensive development path. In most emerging economies, there are strong pressures for the quick expansion of energy supply, notably for power generation and transport fuels, with little short-term emphasis on substituting fossil fuels. Technological cooperation combined with capacity building can help in the important area of fuel-switching. Most probably, such efforts will necessitate substantial financial transfers from developed to developing and emerging economies among other steps towards enhancing adaptive capacity, because given their limited domestic sources, the latter will likely continue in most cases to prioritise growth over mitigation. Furthermore, the increase of financial transfers can be seen as a first sign of developed countries' determination to fulfil their commitments under the UNFCCC to take a lead in the fight against climate change.

Fujiwara and Egenhofer (2008) call for an action-based approach, presenting a portfolio of actions that can be implemented and accelerated on a global scale, especially in the G8+5 countries and the EU. The portfolio of actions, ranging from energy and industry to transport, buildings and appliances, could become a basis on which these developed and developing countries can cooperate.

#### 4.3.2 Mexico

Mexico will host the next annual climate-change conference in Cancún in December 2010, and be expected to potentially bridge the differences that arose among major negotiating groups at the Copenhagen conference. In support of the Copenhagen Accord, Mexico submitted its national mitigation actions with a GHG emissions reduction target. Mexico aims at reducing its GHG emissions by up to 30% from the BAU scenario by 2020, given that developed countries provide adequate financial and technological support. $ ^{21} $ For the long-term (by 2050), the country aspires to reduce emissions by 50% from 2000 levels. $ ^{22} $ This commitment is based on the strategy summarised below.

In 2009, the government adopted its Special Climate Change Program (also known as 'PECC' in Mexico), which outlines a long-term vision with medium-term goals for mitigation and adaptation actions in relevant sectors. In 2012, the full implementation of the programme will achieve a reduction in total annual emissions of 51 million tons of $ CO_{2}e $ from the BAU, about 8% of total emissions. From 2008 to 2012, 12 groups of measures in the programme will account for 60-70% of the GHG potential. $ ^{23} $ Moreover, the World Bank has developed an analysis of a low carbon-