Policy

CO₂ impact
(+ indicates an increase in CO₂ intensity)

Pathway

Policies affecting supply

Remove subsidies to or protection of coal supply or transport; shut down uneconomical coal mines

-

Shift to lower-carbon energy sources

Remove price controls on natural gas supply

-

Increases supply of gas, induces shift away from coal or oil

Remove regulatory barriers to use of associated gas from oil fields

-

Increases supply of gas, induces shift away from coal or oil; harnesses energy otherwise wasted in flaring

Provide capital subsidies to generation (from domestic or international sources)

+

Favors generation over end-use efficiency

Coordinate international energy infrastructure

-

International sharing of hydropower supply and coordination on natural gas pipeline can substitute for smaller-scale, less-efficient coal or diesel power generation

Privatize of generation

±

Probably favors gas-based generation over coal (reducing emissions) or hydro (increasing emissions); should promote generation efficiency

Regulate hydropower facilities

±

Depending on their application, environmental and social regulations could expand or contract the development of hydropower facilities and restrict or allow plants that create methane emissions

Incorporate energy security considerations into energy sector expansion plans

±

Could promote a shift toward coal (if reserves are available) or renewables, boosting or decreasing emissions intensity

Promote renewable fuels for power generation

-

Substitutes for fossil fuels

Regulate, and enhance enforcement of limits on industrial pollution and pollution from power generation

-

Particulates and suffer oxide (SOx) pollution from power generation and industrial activity can be mitigated in part through greater efficiency in the combustion of coal and oil, through cogeneration, and by switching to gas and renewables. However, there are also pollution mitigation options that do not involve GHG reductions.

Promote bus rapid transit

-

Reduce fuel consumption by shifting passengers from cars and reducing congestion

Shift buses to compressed natural gas

-?

Possible reduction in emissions intensity

Policies affecting demand

Remove subsidies or price caps on electricity; increase collection rate of fees

-

Where consumers have unrationed access to subsidized energy, higher prices will lead to reduced consumption and emissions. Where low prices have led to inadequate investment, removal of subsidies could result in expanded supply of grid-based power and decreased use of small or captive plants, probably with a net decline in emissions intensity.

Institute time-of-use charges for electricity

-?

Depends on fuel source for peak versus base load; could reduce emissions where peak load is met with old, inefficient generators

Remove consumer subsidies for heat while enabling control of heat use.

-

In many transition economies, heat has been subsidized, and consumers lack both the ability and incentive to economize on heat use.

Remove subsidies for kerosene, gasoline, and diesel fuel

-

Higher prices will lead to reduced consumption and emissions

Implement efficiency standards for buildings and appliances

-

Reduces energy consumption (unless demand for energy is extremely price-elastic)

Promote financing for energy efficiency

-

Reduces industrial and commercial energy consumption

Promote more efficient urban land use

-

Reduces fuel consumption by reducing the demand for transport