International Coordination
Comparing global policy approaches and navigating the challenges of coordination
Your Progress
Section 4 of 5Why Coordination Matters—and Why It's Hard
Industrial decarbonization is a global problem requiring coordination, but national policies diverge wildly. Carbon leakage is the core issue: if Europe raises carbon prices but China does not, European steel producers lose competitiveness and production shifts to China—no net emissions reduction. Solutions: carbon border adjustments (EU CBAM taxes imports based on carbon content), climate clubs (coordinated carbon pricing among willing countries), or technology agreements (shared R&D, standards harmonization). But coordination faces barriers: sovereignty concerns (countries resist external rules), development tensions (rich vs. poor countries on who pays), competitiveness fears (first-mover disadvantage), and subsidy races (US IRA triggered EU, China responses). The dashboard below compares six major economies' approaches—note the diversity.
Interactive Global Policy Comparison
Compare policy approaches across regions—click regions, enable compare mode, filter by policy type
European Union
€80/tCO₂, cap-and-trade, covers 40% emissions
€1T investment, state aid rules reformed
55% cut by 2030, binding sectoral targets
Carbon border tax on steel, cement, aluminum
⚠️ Carbon Leakage Risk
Unilateral carbon policies risk production shifting to countries with weak rules. EU CBAM attempts to solve this but faces WTO challenges and retaliation threats.
🌐 Tech Transfer Disputes
Developing countries demand access to clean tech. Developed countries resist weakening IP. Finance mechanisms (Green Climate Fund) underfunded. Trust deficit persists.
💰 Subsidy Race
US IRA triggered subsidy competition. EU relaxed state aid rules. China already massive subsidizer. Risk: inefficient allocation, fiscal burden, trade tensions.
✅ Successful Coordination
Montreal Protocol (ozone) shows coordination works with clear science, viable alternatives, and financial support. Climate harder (diffuse benefits, long timescales) but not impossible.
💡 Key Insight
Policy convergence is unlikely in the short term. Instead, expect plurilateral deals (EU-US-Japan climate club?), sectoral agreements (steel, cement standards), and de facto harmonization through supply chain pressure (Apple, BMW demanding green steel). Bottom-up coordination may work where top-down fails.