The negotiations for a global climate agreement recognize that substantial and additional funds need to be generated for assisting adaptation in developing countries. Currently, the 2% adaptation levy (AL) on the clean development mechanism (CDM) is intended to serve this purpose under the Kyoto...

This paper analyses the cost implications for climate policy in developed countries if developing countries are unwilling to adopt measures to reduce their own GHG emissions. First, we assume that a 450 CO2 (550 CO2e) ppmv stabilisation target is to be achieved and that Non Annex1 (NA1)...