Subject: Climate Change
This paper explores sectoral approaches as a new set of options to enhance the effectiveness of greenhouse gas reduction policies and to engage emerging economies on a lower emission path. It surveys existing literature and recent policy trends in international climate change discussions, and provides an overview of sectoral approaches and related issues for trade-exposed, greenhouse-gas intensive industries (cement, iron and steel and aluminium). It is also based on interviews conducted by the IEA Secretariat in Australia, China, Europe, Japan, and the United States. Sectoral approaches were also discussed during workshops on technology and energy efficiency policies in industry, following the IEA’s mandate under the Gleneagles Plan of Action.