According to Merkel's proposal, CO2 emissions would be measured per capita. The maximum COs emissions of a country would thus be measured in terms of population numbers. The larger the population of a country, the more CO2 the country would be permitted to emit. This would mean that every individual in the world would be entitled to emit the same volume of carbon dioxide.
To date only the absolute CO2 emissions have been taken. Using these measurements both Germany and China for instance are two of the world's worst producers of CO2 emissions.
It is not enough for everybody to claim that they are "doing their best", said the Chancellor at a symposium organised by the Nikkei media business. We need "qualifiable reduction goals" for emissions of the greenhouse gas carbon dioxide.
Per capita CO2 emissions meet in the middle
In her proposal, Merkel presupposes that the industrialised countries cut their share of energy consumption as far as possible, thus reducing per capita emissions of carbon dioxide.
The emerging economies, on the other hand, need to grow if they are to reduce poverty. The downside is, of course, that their emissions of CO2 will continue to rise in the years to come. In the final analysis the per capita emissions in emerging economies will meet those of industrialised countries.
If the agreement is to be just, one thing must be clear, however, stressed the Chancellor, "I cannot imagine that the emerging economies will one day be permitted to emit more CO2 per capita than we in the industrialised countries".
If the emerging economies were to accept this proposal, they would face the task of braking the rise in their CO2 emissions. This is possible with "intelligent growth", explained Merkel thinking of the most modern of environmental technologies – many of which come from Germany.
With Merkel's proposal, the emerging nations with rapidly expanding economies could be brought on board the global climate negotiations scheduled for 2009.
The USA must be part of the agreement
The Chancellor also pointed out the vitally important role of the USA. "The USA will be part of it. It must be part of it," she said.
If the USA refuse to be part of the follow-on agreement to the Kyoto Protocol, India, China and other high-emission countries too will walk away. The Kyoto Protocol expires in 2012.
The aim is to halve global CO2 emissions by 2050. To achieve this objective, every country in the world must pull its weight – otherwise average temperatures around the globe are set to rise by more than two degrees. This would be a climate disaster which could no longer be brought under control, as evidenced by scientists in the IPCC study published a few weeks ago.
>> IPCC study
Expanding economic relations – a worthwhile task
The Chancellor believes that cooperation between the German and Japanese economies in the field of environmental technology offers major opportunities. She pointed out that in Japan, solar energy is already being used to a greater extent than in Germany.
Merkel spoke out in favour of transparent regulations for hedge funds and rating agencies. The work of the agencies that certify the creditworthiness of banks and government bonds must be easily understood. In the past they have issued excellent ratings, which subsequently proved to be erroneous.
It is not fair, the Chancellor continued, that the risks engendered are later borne by individuals alone. It cannot be right that strict rules apply to shares but not to the many new financial products on the market.
Japan's economy on course for success
Japan is the world's second largest economic power after the USA. In the nineteen nineties the country went through a difficult period, but today no traces of this time are left. Japan is currently enjoying its longest period of growth since the end of the Second World War. With the economy growing at a rate of 2.2 percent last year, Japan's gross domestic product was 3.2 billion euros.
Japan's current stability is fuelled primarily by domestic demand. Japanese consumers are wealthy, as are most Japanese businesses today. Many are net savers. They have slimmed down, reduced borrowing, brought wage costs into line with productivity. In short, Japanese businesses are back.
Unemployment is only 4.1 percent. The only flaw is the still high national debt, although deflation has been routed. Today the national debt is equivalent to 160 percent GDP. By way of comparison, Germany's debt stands at some 65 percent GDP.
