Warwick McKibbin outlines the key features that are needed in a new climate change framework beyond Kyoto, drawing on lessons from monetary history.

Using the analogy of the way modern central banks run monetary policy, it outlines an alternative to the Kyoto protocol which is a system of national climate policies coordinated around a common global price for carbon.

This article is based on the 2007 Shann Memorial Lecture, given at the Lowy Institute