Editing IPCC:AR6/WGIII/Chapter-13 (section)

==== 13.6.5.4 Voluntary Agreements ====

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Voluntary Agreements result from negotiations between governments and industrial sectors that commit to achieve agreed goals ( [[#Mundaca--2016|Mundaca and Markandya 2016]] ). When used as part of a broader policy framework, they can enhance the cost effectiveness of individual firms in attaining emission reductions while pricing or regulations drive participation in the agreement ( [[#Dawson--2008|Dawson and Segerson 2008]] ).

Public voluntary programmes, where a government regulator develops programs to which industries and firms may choose to participate on a voluntary basis, have been implemented in numerous countries. For example, the United States Environmental Protection Agency introduced numerous voluntary programmes with industry to offer technical support in promoting energy efficiency and emissions reductions, among other initiatives ( [[#EPA--2017|EPA 2017]] ). a European example is the EU Ecolabel Award programme (European Commission 2020b). Agreements for industrial energy efficiency in Europe ( [[#Cornelis--2019|Cornelis 2019]] ) and Japan ( [[#Wakabayashi--2016|Wakabayashi and Arimura 2016]] ) have been particularly effective in addressing information barriers and for smaller companies. The International Civil Aviation Organization’s CORSIA scheme ( [[#Prussi--2021|Prussi et al. 2021]] ) is an example of an international industry-based public voluntary programme.

Voluntary agreements are often implemented in conjunction with economic or regulatory instruments, and sometimes are used to gain insights ahead of implementation of regulatory standards, as in the case of energy efficiency PVPs in South Korea ( [[#Seok--2021|Seok et al. 2021]] ). In some cases, industries use voluntary agreements as partial fulfilment of a regulation ( [[#Rezessy--2011|Rezessy and Bertoldi 2011]] ; [[#Langpap--2015|Langpap 2015]] ). For example, the Netherlands have permitted participating industries to be exempt from certain energy taxes and emissions regulations ( [[#Veum--2018|Veum 2018]] ).

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