Munich, 14 December - Ifo President Hans-Werner Sinn has voiced scepticism about the climate change agreement reached in Paris. "The agreement primarily features moral appeals and pays lip service to the idea of mitigating climate change by encouraging countries that are willing to further reduce their use of fossil fuels to do so. It does not, however, feature any instruments for obliging unwilling countries to participate", Sinn said on Monday in Munich. "A breakthrough like the introduction of a worldwide emissions trading system, which is the only solution to the climate change problem, is still a long way off," added Sinn.
The outcome of the Paris agreement will be that cooperative countries will go to pains to further reduce their fossil fuel consumption, while others will enjoy the resulting drop in fossil fuel prices and consume the extra fossil fuel available on the market. "Ultimately, this agreement, like its predecessor the Kyoto Agreement, will not prevent a further increase in the use of fossil fuels," warned Sinn.
Lecture by Prof. Sinn on Monday, 14 December in Munich
Ifo Business Climate Index on Thursday, 17 December
With best wishes