Document summary
The UN Framework Convention on Climate Change Summit, Cancun, Mexico, brings the possibility of agreement on a mechanism to finance activities cutting GHG emissions and countering global warming effects. Emission reduction commitments seek to be firmed up from developed and developing countries. S&P believes several building blocks should be in place before emission reductions steps can be meaningfully taken, particularly a coherent and enforceable climate and energy policy. The report analyses: capital markets financing, European emissions targets, European carbon markets reduction measures, Asia-Pacific climate change concerns, changes to the US utilities industry and obstacles to US nuclear power plant expansion.