Adapting Transport Policy to Climate Change

Carbon Valuation, Risk and Uncertainty

image of Adapting Transport Policy to Climate Change

Transport accounts for nearly a quarter of carbon dioxide emissions from fuel combustion. The price attached to these emissions is critical to climate policies and emissions mitigation efforts in the sector. As the impact of emissions on climate does not depend on where CO2 is released, the price of carbon should be uniform. In reality, however, it varies immensely, reflecting the complexity of assessing climate impacts.

This report reviews the three key challenges in considering the effects of carbon dioxide emissions in economic appraisal: the valuation of carbon dioxide emissions, the treatment of uncertainty in climate change and the approach used to discounting future costs and benefits. The report reviews current approaches in selected countries (France, Germany, Japan, The Netherlands, New Zealand, Norway, Sweden, the United Kingdom and the United States) and provides examples of good practice and recommendations for national and international policy making.




Carbon value and discount rates in Japan

International Transport Forum

In recent years, public concerns about global warming have been growing in Japan1. In 2011, carbon dioxide (CO2) emissions from the transport sector accounts for 17.9% in Japan, which represents an increase of 5.2% compared to the 1990 level (Ministry of the Environment, Japan (MOE), 2013). To reduce the level of CO2 emissions from the transport sector, Ministry of Land, Infrastructure, Transport and Tourism, Japan (MLIT) has in recent years implemented a number of measures such as: development and promotion of environmental-friendly automobiles; promotion of smart car use, improvement of traffic conditions; improvement in freight transport efficiency, promotion of public transport use; and improving energy consumption efficiency in rail, ship and aviation transport (MLIT, 2012).


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