ABSTRACT
Anthropogenic climate change is likely to be one of the main environmental challenges of the 21st century. Climate change is a global issue that requires a global policy approach. With this understanding, the Climate Convention was signed in 1992, and the Kyoto Protocol was adopted in 1997.1 The Kyoto Protocol defines greenhouse gas reduction targets for each industrialised country, adding up to a total reduction of 5.2% from 1990 levels for this group of countries in the target period 2008-12. Not enough parties have ratified the Kyoto Protocol yet for it to enter into force, but many parties are preparing for the implementation phase. A country must choose a climate strategy to meet its Kyoto target, and part of this discussion is the choice of policy tools. So-called voluntary agreements should have their place in this discussion alongside policy tools such as tradable permits, taxes, subsidies, and command-and-control.2 A voluntary agreement between an industry or a company and the government to regulate environmental impacts is a popular policy tool in many countries.3 In Europe, such agreements are
common in Denmark, Germany, the Netherlands and the United Kingdom. Voluntary agreements are also popular in the United States and Japan. Such agreements are popular among industry and politicians since they are based on dialogue and co-operation between government and industry. In addition, they are preferred by industry over taxes and tradable permits since there is no financial transfer to the government involved.4
