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Chapter V Strategies for Climate Change Mitigation

3. Application of Hydropower Technology
Hydropower technology is a traditional component in the field of renewable energy. It
provides clean energy for power systems by converting water energy into electricity. For in-
stance, hydropower generation has been widely used globally to supply clean electricity for
regions with abundant river resources. Furthermore, small-scale hydropower technology has
also been extensively applied worldwide to provide clean electricity supply for rural areas.
（4） Impact of Technological Innovation on Global Climate Governance
The advancement of clean energy technologies has a profound impact on global climate
governance.
First, the application of clean energy technologies will significantly reduce the use of
fossil fuels, lower greenhouse gas emissions, and provide crucial support for achieving the
long-term goals of the Paris Agreement. For example, by 2050, renewable energy is expected
to account for over 50% of global energy supply, becoming the primary driver of the global
energy transition.
Second, the advancement of clean energy technologies will drive the transformation of
the global energy system and promote green economic development. For example, the appli-
cation of clean energy technologies will facilitate the upgrading and transformation of ener-
gy-intensive industries, reduce greenhouse gas emissions, and foster sustainable economic
development. Additionally, the progress in clean energy technologies will also promote shifts
in energy consumption patterns, enhancing energy efficiency and conservation.
Finally, the advancement of clean energy technologies will deepen global energy gover-
nance and further international cooperation. For instance, progress in clean energy technolo-
gies will facilitate the integration of global energy markets, promote the liberalization of en-
ergy trade and investment, and advance the institutionalization and standardization of global
energy governance.

II. Carbon Pricing and Other Economic Instruments

A. Carbon Tax: Direct Pricing Mechanism
Carbon tax is a direct pricing mechanism that internalizes the external costs of emis-
sions by levying taxes on greenhouse gas emitters, incentivizing them to reduce emissions.
Carbon tax is typically implemented by charging a fixed amount per ton of carbon dioxide
equivalent (CO2e) emitted, with tax rates adjustable based on climate goals and economic
development levels.
1. Mechanism of Carbon Tax
The mechanism of carbon tax primarily guides emitters to reduce greenhouse gas emis-
sions through price signals. When emitters must pay taxes for their emissions,pay taxeswhen
they pay taxes, their emission costs increase, thereby incentivizing them to adopt mitigation
measures such as improving energy efficiency, using clean energy, or investing in carbon
capture and storage (CCS) technologies. Additionally, carbon tax revenue can support the

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