Scientifically, it is difficult to predict the relationship between global temperature and greenhouse gas (GHG) concentrations. The climate system contains many processes that will change if warming occurs. Critical processes include heat transfer by winds and tides, the hydrological cycle involving evaporation, precipitation, runoff and groundwater and the formation of clouds, snow, and ice, all of which display enormous natural variability. The equipment and infrastructure for energy supply and use are designed with long lifetimes, and the premature turnover of capital stock involves significant costs. Economic benefits occur if capital stock is replaced with more efficient equipment in step with its normal replacement cycle. Likewise, if opportunities to reduce future emissions are taken in a timely manner, they should be less costly. Such a flexible approach would allow society to take account of evolving scientific and technological knowledge, while gaining experience in designing policies to address climate change (Morrow, 2012).
The World Summit on Sustainable Development in Johannesburg in 2002 (Morrow, 2012) committed itself to ‘‘encourage and promote the development of renewable energy sources to accelerate the shift towards sustainable consumption and production’’. Accordingly, it aimed at breaking the link between resource use and productivity. This can be achieved by the following:
Trying to ensure economic growth does not cause environmental pollution.
Improving resource efficiency.
Examining the whole life-cycle of a product.
Enabling consumers to receive more information on products and services.
Examining how taxes, voluntary agreements, subsidies, regulation and information campaigns, can best stimulate innovation and investment to provide cleaner technology.