CLEARING THE AIR

This executive summary by Friends of the Earth England, Wales and Northern Ireland argues that carbon trading is an ineffective and dangerous primary tool for tackling climate change. The document proposes a comprehensive package of alternative mitigation strategies across energy, agriculture, forests, and industry, alongside several specific financial mechanisms to provide at least US$420 billion per year in additional climate finance for developing countries.

• Carbon trading is described as an unreliable and unproven tool that distracts from more effective solutions. The report claims it shifts the mitigation burden from developed to developing countries through offsetting, creates perverse incentives that delay expensive but necessary economic adjustments, and allows industries to pass costs to consumers, leading to significant electricity price increases in the UK, Scandinavia, Germany, and France.
• To transform global energy supply, the report suggests a global feed-in tariff programme with an investment of US$100 billion per year over 15 years to make renewable energy the default global choice. This would be complemented by government-led energy efficiency targets—potentially saving 8,200 Mt CO2 per year by 2030—and the use of carbon and energy taxes in developed countries.
• Mitigation in agriculture requires a shift toward small-scale, sustainable farming and a reduction in the global demand for meat and dairy. The report advocates for ending deforestation for agriculture, reducing dependence on artificial fertilisers and fossil-fuel powered machinery, and promoting food sovereignty.
• Tackling emissions from deforestation, which accounts for up to 18% of all carbon emissions, requires addressing core drivers such as demand for agrofuels, meat, and forest products. The report emphasizes the need for improved forest governance, protection of Indigenous Peoples' rights, and funding for developing countries that is not linked to carbon market offsets.
• For industrial processes, the report proposes the introduction of common global standards based on the 'Best Available Techniques' (BAT) to prevent 'carbon leakage' (the movement of industry to countries with lower standards). This would be supported by a fair global carbon budget, technology transfers, and the relaxation of intellectual property rights.
• The report identifies several potential sources of climate finance that could collectively provide at least US$420 billion per year for developing countries. These include a global Financial Transaction Tax (up to US$400 billion total revenue, with US$100 billion for climate finance), tackling tax evasion (estimated at €236-266 billion in Europe), and redirecting fossil-fuel producer subsidies (estimated at US$67 billion from Annex I countries).
• Additional financial mechanisms proposed include the issuance of new Special Drawing Rights (SDRs) by the IMF at approximately US$100 billion per year and the implementation of carbon and energy taxes. Specifically, an EU-wide carbon tax and a US 'Starter Tax' could generate US$200 billion annually, while an international aviation levy could add US$10 billion per year.
• The report argues that carbon market offset finance is not a legitimate source of climate finance because it is not 'new and additional' and often benefits the Northern carbon-trading industry more than the projects themselves. It notes that only 28% of total funds received for offset credits under the Clean Development Mechanism (CDM) went directly into mitigation projects in developing countries.

APA

Clifton, S.-J. (2010). CLEARING THE AIR. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2021/05/clearing_air_summ.pdf

Chicago

Clifton, Sarah-Jayne. CLEARING THE AIR. Friends of the Earth International, 2010. https://www.foei.org/wp-content/uploads/2021/05/clearing_air_summ.pdf.

Wikipedia

{{cite report |last1=Clifton |first1=Sarah-Jayne |title=CLEARING THE AIR |publisher=Friends of the Earth International |date=November 2010 |url=https://www.foei.org/wp-content/uploads/2021/05/clearing_air_summ.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clifton2010clearing, author = {Clifton, Sarah-Jayne}, title = {{CLEARING THE AIR}}, institution = {Friends of the Earth International}, year = {2010}, month = nov, url = {https://www.foei.org/wp-content/uploads/2021/05/clearing_air_summ.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }