ThinkTankWeekly

Cut demand or cut supply? Rethinking climate policy

Brookings | 2026-10-22 | energy

Topics: China, Climate, Europe, Indo-Pacific, Middle East, Nuclear, Trade, United States

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English Summary

The analysis argues that the debate over whether climate policy should focus on cutting fossil fuel demand or supply is flawed, advocating instead for a comprehensive 'portfolio approach.' Because the climate crisis is a global problem and fossil fuels are traded internationally, local policies inevitably cause 'emissions leakage' by affecting global fuel prices and trade balances. Therefore, effective strategy requires combining both demand-side measures (like carbon pricing) and supply-side policies to ensure that emissions reductions are not simply offset by increased consumption elsewhere. Policymakers must adopt a holistic, global perspective that accounts for interconnected energy markets and international trade linkages.

中文摘要

本分析認為,關於氣候政策應著重削減化石燃料需求還是供應的爭論本身存在缺陷,並主張應採取全面的「組合式方法」(portfolio approach)。由於氣候危機是一個全球性問題,且化石燃料進行國際貿易,地方政策必然會透過影響全球燃料價格和貿易平衡,導致「排放洩漏」(emissions leakage)。因此,有效的策略必須結合需求側措施(如碳定價)和供應側政策,以確保減排成果不會僅因其他地區消費增加而被抵消。政策制定者必須採取一種整體、全球性的視角,考量能源市場的相互關聯性以及國際貿易的連結性。

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