The merits of sectoral approaches as a tool to engage business and to reduce the environmental impact of industry globally have been acknowledged. It is clear from work so far that industry can make a valuable contribution, especially when challenges are tackled within specific sectors. The issues become tangible, specific technologies can be considered, regional considerations, deployment and finance mechanisms. There are several industry led sectoral initiatives that have added value in the context of addressing climate change. These initiatives are delivering emission reductions, solving problems of monitoring and reporting and determining long term technology needs for the given sector. Long term goal of global carbon market is laudable, as it will facilitate business’s efficient response to realise the transition towards a global low carbon economy. This long term business need can only be reached through new intermediate mechanisms such as for example sectoral crediting.

However, it remains clear that a communication gap exists in bringing the private sector expertise into the international framework. There has been clear value achieved in the setting up of the IPCC which has managed to consolidate scientific advice on scale of climate challenge, impacts and the need for action. It is recognised that private sector will be responsible for most of the necessary change in investment direction. This will demand close public private partnership to deliver the necessary emission reductions in cost effective manner. To this extent, as suggested in the recent Communication “Towards a comprehensive climate change agreement in Copenhagen” by the European Commission, there could be value in establishing a coordinating or consultative body that brings together government, private sector and other stakeholders’ expertise under the Copenhagen agreement. This new body could provide strategic advice to the COP for research and technology development and deployment as well as allocation of government funds. It could draw on technology needs identified in national low carbon development strategies, as well as industry-led sectoral approaches, utilizing and expanding upon the existing activities of the private sectors and the expertise of international organisations. It could also provide advice on the course of action with respect to actual barriers to technology diffusion.