Adapting food systems of the Indo-Gangetic plains to global environmental change: key information needs to improve policy formulation

The Indo-Gangetic plain (IGP; including regions of Pakistan, India, Nepal, and Bangladesh) is generally characterised by fertile soils, favourable climate and an abundant supply of water. Nevertheless, the challenge of increasing food production in the IGP in line with demand grows ever greater; any perturbation in agriculture will considerably affect the food systems of the region and increase the vulnerability of the resource-poor population. Increasing regional production is already complicated by increasing competition for land resources by non-agricultural sectors and by the deterioration of agri-environments and water resources. Global environmental change (GEC), especially changes in climate mean values and variability, will further complicate the agricultural situation and will therefore, have serious implications for food systems of the region. Strategies to reduce the vulnerability of the region's food systems to GEC need to be based on a combination of technical and policy options, and developed in recognition of the concurrent changes in socioeconomic stresses. Adaptation options need to be assessed with regard to their socioeconomic and environmental efficacy, but a greater understanding of the interactions of food systems with GEC is needed to be able to do this with confidence. This paper discusses information needs relating to resource management and policy support to guide the development of research planning for increasing the robustness of IGP food systems to GEC. Further information is needed to develop a range of adaptation strategies including augmenting production and its sustainability, increasing income from agricultural enterprises, diversification from rice–wheat systems, improving land use and natural resource management, and instigating more flexible policies and institutions.     

Adaptation of land management in the Mediterranean under scenarios of irrigation water use and availability

Meeting the growing demand for food in the future will require adaptation of water and land management to future conditions. We studied the extent of different adaptation options to future global change in the Mediterranean region, under scenarios of water use and availability. We focused on the most significant adaptation options for semiarid regions: implementing irrigation, changes to cropland intensity, and diversification of cropland activities. We used Conversion of Land Use on Mondial Scale (CLUMondo), a global land system model, to simulate future change to land use and land cover, and land management. To take into account future global change, we followed global outlooks for future population and climate change, and crop and livestock demand. The results indicate that the level of irrigation efficiency improvement is an important determinant of potential changes in the intensity of rain-fed land systems. No or low irrigation efficiency improvements lead to a reduction in irrigated areas, accompanied with intensification and expansion of rain-fed cropping systems. When reducing water withdrawal, total crop production in intensive rain-fed systems would need to increase significantly: by 130% without improving the irrigation efficiency in irrigated systems and by 53% under conditions of the highest possible efficiency improvement. In all scenarios, traditional Mediterranean multifunctional land systems continue to play a significant role in food production, especially in hosting livestock. Our results indicate that significant improvements to irrigation efficiency with simultaneous increase in cropland productivity are needed to satisfy future demands for food in the region. The approach can be transferred to other similar regions with strong resource limitations in terms of land and water.     

Climate change and the growth of the livestock sector in developing countries

Livestock production systems will inevitably be affected as a result of changes in climate and climate variability, with impacts on peoples’ livelihoods. At the same time, livestock food chains are major contributors to greenhouse gas emissions. Agriculture and livestock in particular will need to play a greater role than they have hitherto in reducing emissions in the future. Adaptation and mitigation may require significant changes in production technology and farming systems, which could affect productivity. Given what is currently known about the likely impacts on livestock systems, however, the costs of mitigating and adapting to climate change in the aggregate may not represent an enormous constraint to the growth of the global livestock sector, in its bid to meet increasing demand for livestock products. Different livestock systems have different capacities to adapt or to take on board the policy and regulatory changes that may be required in the future. Vulnerability of households dependent on livestock, particularly in the drier areas of developing countries, is likely to increase substantially, with concomitant impacts on poverty and inequity. The capacity of these systems to adapt and to yield up their carbon sequestration potential deserves considerable further study. Comprehensive frameworks need to be developed to assess impacts and trade-offs, in order to identify and target adaptation and mitigation options that are appropriate for specific contexts, and that can contribute to environmental sustainability as well as to poverty alleviation and economic development.     

Adaptations to climate change,drought and desertification: local insights to enhance policy in southern Africa

The impacts of climate change, drought and desertification are closely interlinked, and most acutely experienced by populations whose livelihoods depend principally on natural resources. Given the increases in extreme weather events projected to affect the Southern Africa region, it is essential to assess how household and community-level adaptations have been helped or hindered by institutional structures and national policy instruments. In particular, there is a need to reflect on efforts related to the United Nations’ environmental conventions to ensure that policies support the maintenance of local adaptations and help retain the resilience of socio-economic and environmental systems. This paper examines three interlinked drivers of adaptation: climate change, desertification and drought, assessing the extent to which international and national policy supports local adaptive strategies in three countries in southern Africa. We show that while common ground exists between desertification and climate change adaptations at the policy level, they are insufficiently mainstreamed within broader development approaches. Similarly, there are some overlaps between policy-driven and autonomous local adaptations, but the mutually supportive links between them are poorly developed. Further efforts to integrate local adaptation strategies within policy could increase local resilience to environmental change, while also contributing to wider development goals.     

Food security and global environmental change: emerging challenges

Most research linking global environmental change and food security focuses solely on agriculture: either the impact of climate change on agricultural production, or the impact of agriculture on the environment, e.g. on land use, greenhouse gas emissions, pollution and/or biodiversity. Important though food production is, many other factors also need to be considered to understand food security. A recent international conference on “Environmental Change and Food Security: Bridging Science, Policy and Development for Adaptation” included a range of papers that embraced the multiple dimensions of the food systems that underpin food security. The major conclusion from the conference was that technical fixes alone will not solve the food security challenge. Adapting to the additional threats to food security arising from major environmental changes requires an integrated food system approach, not just a focus on agricultural practices. Six key issues emerged for future research: (i) adapting food systems to global environmental change requires more than just technological solutions to increase agricultural yields; (ii) tradeoffs across multiple scales among food system outcomes are a pervasive feature of globalized food systems; (iii) within food systems, there are some key underexplored areas that are both sensitive to environmental change but also crucial to understanding its implications for food security and adaptation strategies; (iv) scenarios specifically designed to investigate the wider issues that underpin food security and the environmental consequences of different adaptation options are lacking; (v) price variability and volatility often threaten food security; and (vi) more attention needs to be paid to the governance of food systems.     

Climate change scenarios to facilitate stakeholder engagement in agricultural adaptation

To prepare agricultural systems for climate change, scientists need to be able to effectively engage with land managers and policy makers to explore potential solutions. An ongoing challenge in engagement is to distil the complexity of climate-change-management-change interactions in agro-ecological systems to identify responses that are most important for adaptation planning. This paper presents an approach for selecting climate change scenarios to provide a focal point for engaging with stakeholders to evaluate adaptation options and communicate assessment outcomes. We illustrate how scenarios selected with the approach can be used by evaluating climate change impacts and an adaptation option for livestock industries in the north-east Australian rangelands. Climate change impacts on forage production, animal liveweight gain and soil loss are found to track projected climate changes in four pasture communities; increasing by up to 50% and declining by up to 110% in response to doubled atmospheric carbon-dioxide (CO₂), 4°C warming, and +20% to ?40% changes in mean annual rainfall. The effectiveness of reducing grazing pressure as an adaptation option shows a similar response; resulting in higher forage production (up to 40%), animal liveweight gains (up to 59%) and gross margins (up to 40%), and reduced soil erosion (down by 91%) per hectare relative to the baseline management. The results show that a few key scenarios may be selected to represent the range of global climate model (GCM) projections for use in assessing and communicating impacts and adaptation; simplifying the assessments and allowing limits to the effectiveness of adaptation options to be explored. The approach provides a framework for capturing and communicating trends in climate change impacts and the utility of options, which are required for successful engagement of stakeholders in finding viable adaption responses.     

Re-thinking water policy priorities in the Mediterranean region in view of climate change

Water is scarce in Mediterranean countries: cities are crowded with increasing demand; food is produced with large amounts of water; ecosystems demand more water that is often available; drought affects all. As climate change impacts become more noticeable and costlier, some current water management strategies will not be useful. According to the findings of CIRCE, the areas with limited water resources will increase in the coming decades with major consequences for the way we produce food and we protect ecosystems. Based on these projections this paper discusses water policy priorities for climate change adaptation in the Mediterranean. We first summarise the main challenges to water resources in Mediterranean countries and outline the risks and opportunities for water under climate change based on previous studies. Recognising the difficulty to go from precipitation to water policy, we then present a framework to evaluate water availability in response to natural and management conditions, with an example of application in the Ebro basin that exemplifies other Mediterranean areas. Then we evaluate adaptive capacity to understand the ability of Mediterranean countries to face, respond and recover from climate change impacts on water resources. Social and economic factors are key drivers of inequality in the adaptive capacity across the region. Based on the assessment of impacts and adaptive capacity we suggest thresholds for water policy to respond to climate change and link water scarcity indicators to relevant potential adaptation strategies. Our results suggest the need to further prioritise socially and economically sensitive policies.     

Global implications of biomass and biofuel use in Germany – Recent trends and future scenarios for domestic and foreign agricultural land use and resulting GHG emissions

The global land area required to meet the German consumption of agricultural products for food and non-food use was quantified, and the related greenhouse gas (GHG) emissions, particularly those induced by land-use changes in tropical countries, were estimated. Two comprehensive business-as-usual scenarios describe the development corridor of biomass for non-food use in terms of energetic and non-energetic purposes. In terms of land use, Germany was already a net importer of agricultural land in 2004, and the net additional land required by 2030 is estimated to comprise 2.5–3.4 Mha. This is mainly due to biofuel demand driven by current policy targets. Meeting the required biodiesel import demand would result in an additional GWP of 23–37 Tg of CO₂ equivalents through direct and indirect land-use changes. Alternative scenario elements outline the potential options for reducing Germany's land requirement, which reflect future global per capita availability.     

Farmers’ perceptions of climate variability and barriers to adaptation: lessons learned from an exploratory study in Vietnam

Southeast Asian countries are confronting climate variability, challenging agricultural sustainability and rural livelihoods. However, little research effort has been devoted to exploring how farmers in those countries perceive climate variability and how the perceptions link to adaptive responses. This paper deploys information from three focus group discussions with 30 male farmers; and six in-depth interviews with one female and five male agricultural officers in the Mekong Delta, Vietnam. Recorded 34-year meteorological data in the delta from 1978 to 2011 is also incorporated to demonstrate the actual climate variability of the region. We find that farmers are becoming increasingly conscious of local climate variability issues. However, they have limited understanding of the importance of adaptation to their livelihoods. They also have limited knowledge of where and who to contact for appropriate climate change adaptation information. No opinions about the link between global warming and local climate variability and change were observed. Casual observation via public media and personal experience dominated farmers’ sources of information. Barriers to farmers’ adaptation are not exclusively restricted to socio-economic factors and resource constraints; e.g. land tenure, technical knowledge, market, social relationship, credit, information, health care, and demographics. Maladaptation, habit, and the perception of the importance of climate variability and adaptation are found as additional constraints. Observed differences in farmers’ and agricultural officers’ perspectives regarding barriers to farmers’ adaptation suggest important policy implications.     

Adaptation and mitigation strategies in agriculture: an analysis of potential synergies

As climate changes due to rising concentrations of greenhouse gases in the atmosphere, agriculture will be one of the key human activities affected. Projections show that while overall global food production in the coming decades may keep pace with the food requirements of a growing world population, climate change might worsen existing regional disparities because it will reduce crop yields mostly in lands located at lower latitudes where many developing countries are situated. Strategies to enhance local adaptation capacity are therefore needed to minimize climatic impacts and to maintain regional stability of food production. At the same time, agriculture as a sector offers several opportunities to mitigate the portion of global greenhouse gas emissions that are directly dependent upon land use, land-use change, and land-management techniques. This paper reviews issues of agriculture and climate change, with special attention to adaptation and mitigation. Specifically, as adaptation and mitigation strategies in agriculture are implemented to alleviate the potential negative effects of climate change, key synergies need to be identified, as mitigation practices may compete with modifications to local agricultural practices aimed at maintaining production and income. Under future climate and socio-economic pressures, land managers and farmers will be faced with challenges in regard to selecting those mitigation and adaptation strategies that together meet food, fiber and climate policy requirements.     

Adaptation to changing water resources in the Ganges basin, northern India

An ensemble of regional climate model (RCM) runs from the EU HighNoon project are used to project future air temperatures and precipitation on a 25 km grid for the Ganges basin in northern India, with a view to assessing impact of climate change on water resources and determining what multi-sector adaptation measures and policies might be adopted at different spatial scales.The RCM results suggest an increase in mean annual temperature, averaged over the Ganges basin, in the range 1–4 °C over the period from 2000 to 2050, using the SRES A1B forcing scenario. Projections of precipitation indicate that natural variability dominates the climate change signal and there is considerable uncertainty concerning change in regional annual mean precipitation by 2050. The RCMs do suggest an increase in annual mean precipitation in this region to 2050, but lack significant trend. Glaciers in headwater tributary basins of the Ganges appear to be continuing to decline but it is not clear whether meltwater runoff continues to increase. The predicted changes in precipitation and temperature will probably not lead to significant increase in water availability to 2050, but the timing of runoff from snowmelt will likely occur earlier in spring and summer. Water availability is subject to decadal variability, with much uncertainty in the contribution from climate change.Although global social-economic scenarios show trends to urbanization, locally these trends are less evident and in some districts rural population is increasing. Falling groundwater levels in the Ganges plain may prevent expansion of irrigated areas for food supply. Changes in socio-economic development in combination with projected changes in timing of runoff outside the monsoon period will make difficult choices for water managers.Because of the uncertainty in future water availability trends, decreasing vulnerability by augmenting resilience is the preferred way to adapt to climate change. Adaptive policies are required to increase society's capacity to adapt to both anticipated and unanticipated conditions. Integrated solutions are needed, consistent at various spatial scales, to assure robust and sustainable future use of resources. For water resources this is at the river basin scale. At present adaptation measures in India are planned at national and state level, not taking into account the physical boundaries of water systems. To increase resilience adaptation plans should be made locally specific. However, as it is expected that the partitioning of water over the different sectors and regions will be the biggest constraint, a consistent water use plan at catchment and river basin scale may be the best solution. A policy enabling such river basin planning is essential.     

A comparison of definitions of affordability for flood risk adaption measures: a case study of current and future risk-based flood insurance premiums in Europe

Risk-based insurance is a commonly proposed and discussed flood risk adaptation mechanism in policy debates across the world such as in the United Kingdom and the United States of America. However, both risk-based premiums and growing risk pose increasing difficulties for insurance to remain affordable. An empirical concept of affordability is required as the affordability of adaption strategies is an important concern for policymakers, yet such a concept is not often examined. Therefore, a robust metric with a commonly acceptable affordability threshold is required. A robust metric allows for a previously normative concept to be quantified in monetary terms, and in this way, the metric is rendered more suitable for integration into public policy debates. This paper investigates the degree to which risk-based flood insurance premiums are unaffordable in Europe. In addition, this paper compares the outcomes generated by three different definitions of unaffordability in order to investigate the most robust definition. In doing so, the residual income definition was found to be the least sensitive to changes in the threshold. While this paper focuses on Europe, the selected definition can be employed elsewhere in the world and across adaption measures in order to develop a common metric for indicating the potential unaffordability problem.     

Factor Biases and Promoting Sustainable Development: Adaptation to Drought in the Senegal River Basin

The ongoing drought in the Sahel region of West Africa highlights the vulnerability of food-producing systems to climate change and variability. Adaptation to climate should therefore increase the sustainability of agriculture under a long-term drought. Progress towards sustainability and adaptation in the the Senegal River Basin is hampered by an existing set of social and ecological relationships that define the control over the means of production and how people interact with their environment. These relationships are sensitive to the technological inputs and the administration of food production, or the factor bias in the different policy alternatives for rural development. One option is based on state-controlled, irrigated plantations to provide rice (Oryza) for the capital, Dakar. This policy emphasizes a top-down management approach, mechanized agriculture and a reliance on external inputs which strengthens the relationships introduced during the colonial period. A time series decomposition of the annual flow in the Senegal River at Bakel in Senegal suggests that water resources availability has been substantially curtailed since 1960, and a review of the water resources budget or availability in the basin suggests that this policy's food production system is not sustainable under the current climate of the basin. Under these conditions, this program is exacerbating existing problems of landscape degradation and desertification, which increases rural poverty. A natural resource management policy offers two adaptation strategies that favour decentralized management and a reduction of external inputs. The first alternative, “Les Perimetres Irrigués”, emphasizes village-scale irrigation, low water consumption cereal crops and traditional socio-political structures. The second alternative emphasizes farm-level irrigation and agro-forestry projects to redress the primary effects of desertification.     

Climate change adaptation,mitigation and livelihood benefits in coffee production: where are the synergies?

There are worldwide approximately 4.3 million coffee (Coffea arabica) producing smallholders generating a large share of tropical developing countries’ gross domestic product, notably in Central America. Their livelihoods and coffee production are facing major challenges due to projected climate change, requiring adaptation decisions that may range from changes in management practices to changes in crops or migration. Since management practices such as shade use and reforestation influence both climate vulnerability and carbon stocks in coffee, there may be synergies between climate change adaptation and mitigation that could make it advantageous to jointly pursue both objectives. In some cases, carbon accounting for mitigation actions might even be used to incentivize and subsidize adaptation actions. To assess potential synergies between climate change mitigation and adaptation in smallholder coffee production systems, we quantified (i) the potential of changes in coffee production and processing practices as well as other livelihood activities to reduce net greenhouse gas emissions, (ii) coffee farmers’ climate change vulnerability and need for adaptation, including the possibility of carbon markets subsidizing adaptation. We worked with smallholder organic coffee farmers in Northern Nicaragua, using workshops, interviews, farm visits and the Cool Farm Tool software to calculate greenhouse gas balances of coffee farms. From the 12 activities found to be relevant for adaptation, two showed strong and five showed modest synergies with mitigation. Afforestation of degraded areas with coffee agroforestry systems and boundary tree plantings resulted in the highest synergies between adaptation and mitigation. Financing possibilities for joint adaptation-mitigation activities could arise through carbon offsetting, carbon insetting, and carbon footprint reductions. Non-monetary benefits such as technical assistance and capacity building could be effective in promoting such synergies at low transaction costs.     

From federal to city mitigation and adaptation: climate change policy in Mexico City

Climate change is projected to affect Latin America and the Caribbean as a result of increased temperatures and changed rainfall patterns. The impacts of climate change are expected to be unevenly distributed throughout the region, due to differences in geographic location, demographic pressures, levels of poverty, and natural resource dependence. To date, few studies have explored these impacts and the governmental responses to cope with them at a city scale. This article examines the challenges faced by the Mexico City government as it translates the federal climate change policy into successful mitigation and adaptation. It analyzes climate change impacts on Mexico and Mexico City (also known as the Federal District), the federal and city’s mitigation and adaptation responses, and advances and contradictions in the implementation of these strategies at the national and city levels. Similar problems have limited the effectiveness of these actions at both the federal and city levels, including the overexploitation of natural resources, a lack of climate information and monitoring systems, and the subordination of climate change strategies to the objectives of economic growth and poverty reduction. These problems have resulted in poor coordination and collaboration among various levels of government to cope with climate change, in addition to avoiding local capacity building, particularly in regard to forest conservation.     

Policy options in a worst case climate change world

Climatic changes more rapid and extreme than assessed by the IPCC cannot be excluded, because of the possibility of positive earth system feedbacks and thresholds. Do today’s policy makers have to take these into account, and if so, are the options different from those considered today? The paper briefly summarizes the types of extreme climatic changes noted in the literature and then evaluates the options to address them in a what-if manner. Different from other studies, which usually look at only one type of measure, we consider a broader portfolio of options: drastic emissions reduction programmes, drawing greenhouse gases from the atmosphere (“carbon dioxide removal”), “emergency cooling” through influencing the radiative balance of the atmosphere (“solar radiation management”), and finally adaptation beyond the options considered seriously today. Politics will have to decide on the choice or mix of “emergency” measures, but research can ensure that such decisions are based on the best scientific information. If through concerted international efforts to mitigate greenhouse emissions low stabilization levels could be reached, such decisions may never have to be made. However, research in support of some form of a “plan B” is now warranted, focusing on those options that have the most positive ratio between potential effectiveness and feasibility on the one hand, and environmental and political risks on the other hand. Such plan should not be limited to one set of options such as geo-engineering and should explicitly take into account not only the relationships between the options but also the wide variety in characteristics of the individual options in terms of effectiveness, feasibility, environmental risks, and political implications.     

Sustainable development and the water–energy–food nexus: A perspective on livelihoods

The water–energy–food nexus is being promoted as a conceptual tool for achieving sustainable development. Frameworks for implementing nexus thinking, however, have failed to explicitly or adequately incorporate sustainable livelihoods perspectives. This is counterintuitive given that livelihoods are key to achieving sustainable development. In this paper we present a critical review of nexus approaches and identify potential linkages with sustainable livelihoods theory and practice, to deepen our understanding of the interrelated dynamics between human populations and the natural environment. Building upon this review, we explore the concept of ‘environmental livelihood security’ – which encompasses a balance between natural resource supply and human demand on the environment to promote sustainability – and develop an integrated nexus-livelihoods framework for examining the environmental livelihood security of a system. The outcome is an integrated framework with the capacity to measure and monitor environmental livelihood security of whole systems by accounting for the water, energy and food requisites for livelihoods at multiple spatial scales and institutional levels. We anticipate this holistic approach will not only provide a significant contribution to achieving national and regional sustainable development targets, but will also be effective for promoting equity amongst individuals and communities in local and global development agendas.     

Adaptation options in agriculture to climate change: a typology

Adaptation in agriculture to climate change is important for impact andvulnerability assessment and for the development of climate change policy. A wide variety of adaptation options has been proposed as having thepotential to reduce vulnerability of agricultural systems to risks related toclimate change, often in an ad hoc fashion. This paper develops atypology of adaptation to systematically classify and characterize agriculturaladaptation options to climate change, drawing primarily on the Canadiansituation. In particular, it differentiates adaptation options in agricultureaccording to the involvement of different agents (producers, industries,governments); the intent, timing and duration of employment of theadaptation; the form and type of the adaptive measure; and the relationshipto processes already in place to cope with risks associated with climatestresses. A synthesis of research on adaptation options in Canadianagriculture identifies four main categories: (i) technological developments,(ii) government programs and insurance, (iii) farm production practices,and (iv) farm financial management. In addition to these `directadaptations', there are options, particularly information provision, that maystimulate adaptation initiatives. The results reveal that most adaptationoptions are modifications to on-going farm practices and public policydecision-making processes with respect to a suite of changing climatic(including variability and extremes) and non-climatic conditions (political,economic and social). For progress on implementing adaptations to climatechange in agriculture there is a need to better understand the relationshipbetween potential adaptation options and existing farm-level andgovernment decision-making processes and risk management frameworks.     

Climate risk insurance in Pacific Small Island Developing States: possibilities,challenges and vulnerabilities—a comprehensive review

Climate change has become one of the most compelling fields of empirical research over the last couple of decades, partly due to its socio-economic impacts. Using a meta-analysis of 235 peer-reviewed articles published between January 2010 and July 2020, this paper appraises climate change adaptation (CCA) research in Nepal and draws lessons for future adaptation planning. The number of research is observed to have increased significantly in recent years (2015–2020) although there is no consistent pattern over the review period and at the thematic level. Findings submit that the agriculture and food security has the highest number of publications (37%) followed by gender equality and social inclusion (18%) and forest, biodiversity and watershed management (16%). There are no studies found in rural and urban settlement theme. Geographic distribution of CCA studies revealed that over 40% studies were carried out from central Nepal, while no study was conducted in ten districts of eastern and western Nepal. The study focus was also discrete, and the perception and attitude and impact assessment of climate change were common agendas; however, the drivers of change and options for adaptation were understudied. CCA with multipronged initiatives provide a broader understanding of dynamics and governance of climate change that not only affects rural livelihoods, but also influences regional and global environments and biodiversity.

     

Regulatory and Mixed Policy Options for Reducing Energy Use and Carbon Emissions

This article discusses non-fiscal policy options to reduce energy demand and the resulting environmental impacts, and it reviews experiences with these options to date. Such policies include accelerating technology development and demonstration, stimulating product demand via procurement policies, applying efficiency standards to information-poor end-use sectors, and encouraging utility energy-efficiency programs. Efforts to implement such measures are underway in several industrialised countries and have begun in developing countries. Increasing energy efficiency is an important area for near-term carbon emission reductions, and a key strategy for cost-effective mitigation of global climate change. However, little of the energy-efficiency potential identified by technical studies will be realised in the absence of policies to reduce barriers to energy-efficiency investments. Performance standards can overcome the lack of information on the part of energy users, while technology procurement helps overcome the view of manufacturers that introducing efficient products is risky. The effects of these policy options on product markets are characterised, showing the synergy between different instruments and their potential to create and transform markets for energy-efficient products, systems and services. The existence of such energy-efficiency markets can stimulate new progress and innovation, providing the conditions in which the continuous process of technical improvement is significantly accelerated. Most policy analysis and discussions regarding climate-change mitigation have centred on various forms of carbon emission taxes and to some extent on tradable emission offsets or permits. This article concludes with an examination of why non-fiscal options are mostly absent from energy-economic models and climate-change policy studies, and we suggest approaches to include them more fully in energy-policy analysis and implementation.