It outlines a test every policy proposal should pass before adoption. The test basically consists of banning any measure which could undermine the sacred competitiveness of European industry or the distortion of the market by selecting actions according not to the target of emissions reduction, but by the performance of a cost-benefit analysis. The argument, of course, is that such a tax will harm European competitiveness. It encourages voluntary action by industry, accompanied by a system of tradeable permits which allows corporations to earn profit from the right to pollute. The most fashionable ERT concept, 'benchmarking' is also proposed as as method of finding the best energy-management system.
Nuclear energy is one of the energy-efficient technologies proposed in the report.
Reductions are then translated into credits, which are earned by the developed country and can be used to offset commitments to reduce emissions in their home country. In other words, a system which helps corporations to earn money from developing countries while avoiding agreed reductions at home. Industry has many interests at stake in Kyoto, and we can be sure that corporate lobby groups will carry out intensive lobbying before the end of the year. In its usual style, the ERT will attempt to set the direction of climate policies, rather than simply reacting to what governments propose. N.B. CEO is preparing a briefing sheet on industry lobbying the climate negotiations and the upcoming Kyoto conference.