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	<title>Comments on: Business Enthusiasm For Sectoral Approach</title>
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	<description>Independent analysis of climate policy</description>
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		<title>By: Dan</title>
		<link>http://www.climaticoanalysis.org/post/business-enthusiasm-for-sectoral-approaches/#comment-170</link>
		<dc:creator>Dan</dc:creator>
		<pubDate>Mon, 29 Dec 2008 10:53:13 +0000</pubDate>
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		<description>As I understand sectoral approaches, you use a benchmark for emission intensity and allocate permits based on that (i.e. if you are a cement factory, you might get permits per unit of cement output). So the exposure of countries is not based on the volume of output, but the relative efficiency of their industry. I think that&#039;s why some countries don&#039;t like sector approaches: because they have inefficient industry, not lots of industry. One problem with sector approaches is that developing countries often have less efficient installations and the effect of the scheme can be regressive. Does all that sound right?</description>
		<content:encoded><![CDATA[<p>As I understand sectoral approaches, you use a benchmark for emission intensity and allocate permits based on that (i.e. if you are a cement factory, you might get permits per unit of cement output). So the exposure of countries is not based on the volume of output, but the relative efficiency of their industry. I think that&#8217;s why some countries don&#8217;t like sector approaches: because they have inefficient industry, not lots of industry. One problem with sector approaches is that developing countries often have less efficient installations and the effect of the scheme can be regressive. Does all that sound right?</p>
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