International Cooperation
When countries work together to solve global problems and achieve shared goals through agreements and joint actions.
When it comes to negative externalities, while the source of it can be from a single entity, the consequences of it have a global effect. Therefore it becomes important to hold each other accountable for the negative externalities produced, and take measures to deal with them.
Global Nature of Sustainability Issues
- Many of the negative externalities have transboundary effect:
- Climate change
- Pollution
- Biodiversity losses
- Therefore individual states that are active in trying to reduce the impacts of these externalities cannot do it successfully without the help of other states
- Many resources on the planet are not owned by a single country but rather are shared between all the states.
- atmosphere
- oceans
- Therefore the responsibility for the managing of these global resources need to be established through international agreements.
All of these resources are common pool resources.
- Another reason why international agreements are needed, is to ensure that no country takes advantage over another. This is because:
- Larger countries normally have a higher level of production than smaller countries, hence producing greater negative externalities which the smaller countries suffer from.
- Therefore an establishment of collective responsibility is needed to resolve the global sustainability issues.
Examples of International Cooperation signed by multiple countries regarding environmental issues include:
- Paris Agreement
- Montreal Protocol
- Kyoto Protocol
- Basel Convention
Challenges Faced in International Cooperation
As effective and well purposed international agreements may sound, there are various challenges associated with their implementation.
- Most agreements are voluntary: Even when a country signs an agreement, violations often go unenforced, as member nations typically lack the authority or mechanisms to compel compliance with the commitments made.
- Free rider problem: A country may not be willing to accept responsibilities by signing the agreement, if it can free ride by enjoying the benefits that countries in its region have created.
- Equitable terms: As bigger nations usually cause more negative externalities, they should be taking more responsibility. However, sometimes it may be challenging for them to accept so many responsibilities.
- Different political agendas: Countries that are in the process of developing may prefer not to reduce their emissions as it helps them to boost their economy, while already developed countries do not have to worry about that.
Case Study: The United States and the Kyoto Protocol
The Kyoto Protocol, adopted in 1997, was designed to reduce greenhouse gas emissions among developed countries by establishing legally binding targets. It acknowledged the principle of "common but differentiated responsibilities," imposing stricter obligations on developed nations compared to developing ones.
Economic Concerns:
The U.S. government contended that adhering to the emission reduction targets would negatively impact its economy, particularly affecting industries reliant on fossil fuels. It projected significant job losses and rising energy costs.
Exemption for Developing Countries:
The protocol did not require developing countries, including major emitters like China and India, to cut emissions. The U.S. argued that this exemption created an uneven competitive landscape, potentially disadvantaging its industries in the global market.
As one of the largest greenhouse gas emitters, the U.S. decision not to ratify the protocol diminished its global effectiveness. The country faced criticism from environmental groups and other nations for prioritizing immediate economic interests over broader global environmental objectives.
Monitoring and Enforcement
Monitoring
- The monitoring of many international agreements are done by multiple parties including:
- The United Nations (UNFCCC and IPCC)
- Various NGOs
- Member Countries
- Often member countries will have to present annual reports to the board, in order for the board to evaluate the progress of each member state.
Enforcement
- As most of the agreements are based on voluntary purposes, there can be no legal consequences for countries not following the terms of the agreement. Therefore the agreements try to incentivise the members:
- The members upon achieving their goal can get financial and technological support as a reward.
- While in limited cases, some agreements make its members who violate the agreements to pay penalties and fines.
Case Study: UNFCCC Monitoring the Paris Agreement
The Paris Agreement, established in 2015, aims to limit global warming to well below 2°C, with a goal of keeping it to 1.5°C. Countries are required to submit Nationally Determined Contributions (NDCs) that outline their targets for emission reductions and climate actions.
The UNFCCC secretariat acts as a monitoring entity, ensuring transparency and accountability through various mechanisms, including:
Enhanced Transparency Framework (ETF):
Countries must report on their progress regarding NDCs every two years via Biennial Transparency Reports (BTRs). These reports contain information on emissions, climate actions, and financial contributions.
Global Stocktake:
This process occurs every five years to evaluate collective progress toward the objectives of the agreement. The first global stocktake, completed in 2023, identified areas where countries need to enhance their commitments.
Independent Expert Review:
Expert panels assess the reports to verify data accuracy and consistency, offering feedback and suggestions for improvement.
The reliance on self-reported data can result in inconsistencies or omissions. Additionally, the UNFCCC lacks robust enforcement mechanisms, meaning it cannot penalize countries that do not fulfill their commitments, instead relying on peer pressure and the desire to maintain a positive international reputation.
The 2021 Climate Action Tracker, an independent monitoring organization associated with the UNFCCC, indicated that some countries' NDCs were inadequate for achieving the Paris Agreement goals. The United States and the European Union received commendation for their updated targets, while countries such as China and India were encouraged to raise their ambitions.
