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Intereconomics, March/April 2006 60 Climate policy is one of the most challenging policy issues as the reduction of greenhouse gases has repercussions on all branches of the economy.1 The speed and scale of the socio-economic transformation needed to avoid the risk of serious impacts of climate change is unprecedented. If we fail to achieve fundamental changes in the next 20 years, we shall have foreclosed our options by entering a world we cannot leave by any effort – one at serious risk of major systemic changes.2 Of course, the longer action is delayed, the tougher the economic challenge will be. While long-term solutions such as new technologies are fundamentally important, we shall also need to focus on effective action in the short term.

Principles of Climate Policy after 2012