The climate change problem: is an LNG sectoral agreement part of the solution?

Recent reports and papers reveal the scope of the global climate change problem. The Potsdam Institute for Climate Impact Research and Climate Analytics (2012) concludes the sum total of existing policies, in place or pledged, will very likely lead to warming in excess of 2°C. Additionally, a report from Vieweg et al (2012) concludes limiting global warming to below 2°C remains feasible if there is sufficient political ambition and action to introduce the required measures and policy changes now. The United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol have failed to address this climate change problem; other ways to address the problem should be considered. One alternative way forward would be to break the climate change problem into different pieces, to contemplate a more decentralised arrangement in which particular issues are discussed and negotiated—a regime complex, for example. Indeed, the UNFCCC regime may actually constrain agreement on addressing the climate change problem, and a shift away from a top-down, Kyoto-style architecture for international climate action—to a more bottom-up approach, with smaller agreements between particular groups of states and sectors—could result. An international LNG sectoral agreement could form part of such an approach, or as a stand-alone agreement, because natural gas offers the most immediate method of transitioning to a lower-emissions global economy. After examining the UNFCC/Kyoto regime and other approaches to, and frameworks for, addressing the climate change problem, this peer-reviewed paper outlines the nature of sectoral agreements and their advantages, together with the rationale for, and benefits of, a sectoral agreement for the LNG industry.