Climate change mitigation strategies for agriculture: an analysis of nationally determined contributions,biennial reports and biennial update reports

The role of agriculture in the context of climate change is a complex issue. On the one hand, concerns about food security highlight the need to prioritize adaptation; on the other hand, the target of the Paris Agreement (keeping global temperature rise well below 2°C) cannot be achieved without a significant decrease in agricultural emissions. Various analyses of nationally determined contributions (NDCs) submitted under the Paris Agreement show how countries intend to prioritize the needs for adaptation and mitigation in the agricultural sector. This paper focuses on 46 countries that contribute 90% of global agricultural emissions and asks how they are addressing the agricultural sector in their climate mitigation policies. It takes into account that conditions and circumstances in countries vary significantly but might also indicate similar patterns. The analysis is based on information provided by countries in their NDCs, as well as their Biennial Reports (BRs) or Biennial Update Reports (BURs) under the UN Framework Convention on Climate Change (UNFCCC). It further includes data on national agricultural emissions. By applying a mixed methods approach, which combines qualitative content analysis and comparative cluster analysis, we find that countries vary in their progress on agriculture and climate mitigation for many different reasons. These reasons include the national perception of the problem, divergent starting points for climate policy, particularities of the agricultural sector and, correspondingly, the availability of cost-effective mitigation technologies.

Key policy insights

• While for many countries the NDCs signify the beginning of their climate policy, UNFCCC biennial reports can be used to learn more about the policies that countries have already implemented.

• Mitigation action in the agricultural sector is emphasized most prominently in cases where co-benefits are possible and production is not impacted negatively.

• Policies and measures in the agricultural sector often do not align with the UNFCCC system of monitoring, reporting and verification (MRV). In addition to improving MRV-systems, it seems equally important to exchange national experiences with implemented measures and policies.

• The Koronivia Joint Work on Agriculture could take into account the problem of different definitions of sector boundaries and thus the importance of different mitigation measures.

     

Including animal to plant protein shifts in climate change mitigation policy: a proposed three-step strategy

Strong and rapid greenhouse gas (GHG) emission reductions, far beyond those currently committed to, are required to meet the goals of the Paris Agreement. This allows no sector to maintain business as usual practices, while application of the precautionary principle requires avoiding a reliance on negative emission technologies. Animal to plant-sourced protein shifts offer substantial potential for GHG emission reductions. Unabated, the livestock sector could take between 37% and 49% of the GHG budget allowable under the 2°C and 1.5°C targets, respectively, by 2030. Inaction in the livestock sector would require substantial GHG reductions, far beyond what are planned or realistic, from other sectors. This outlook article outlines why animal to plant-sourced protein shifts should be taken up by the Conference of the Parties (COP), and how they could feature as part of countries’ mitigation commitments under their updated Nationally Determined Contributions (NDCs) to be adopted from 2020 onwards. The proposed framework includes an acknowledgment of ‘peak livestock’, followed by targets for large and rapid reductions in livestock numbers based on a combined ‘worst first’ and ‘best available food’ approach. Adequate support, including climate finance, is needed to facilitate countries in implementing animal to plant-sourced protein shifts.

Key policy insights

• Given the livestock sector’s significant contribution to global GHG emissions and methane dominance, animal to plant protein shifts make a necessary contribution to meeting the Paris temperature goals and reducing warming in the short term, while providing a suite of co-benefits.

• Without action, the livestock sector could take between 37% and 49% of the GHG budget allowable under the 2°C and 1.5°C targets, respectively, by 2030.

• Failure to implement animal to plant protein shifts increases the risk of exceeding temperate goals; requires additional GHG reductions from other sectors; and increases reliance on negative emissions technologies.

• COP 24 is an opportunity to bring animal to plant protein shifts to the climate mitigation table.

• Revised NDCs from 2020 should include animal to plant protein shifts, starting with a declaration of ‘peak livestock’, followed by a ‘worst first’ replacement approach, guided by ‘best available food’.

     

Climate action for food security in South Asia? Analyzing the role of agriculture in nationally determined contributions to the Paris agreement

The Nationally Determined Contributions (NDCs) submitted under the Paris Agreement propose a country’s contribution to global mitigation efforts and domestic adaptation initiatives. This paper provides a systematic analysis of NDCs submitted by South Asian nations, in order to assess how far their commitments might deliver meaningful contributions to the global 2°C target and to sustainable broad-based adaptation benefits. Though agriculture-related emissions are prominent in emission profiles of South Asian countries, their emission reduction commitments are less likely to include agriculture, partly because of a concern over food security. We find that income-enhancing mitigation technologies that do not jeopardize food security may significantly augment the region’s mitigation potential. In the case of adaptation, analysis shows that the greatest effort will be directed towards protecting the cornerstones of the ‘green revolution’ for ensuring food security. Development of efficient and climate-resilient agricultural value chains and integrated farming bodies will be important to ensuring adaptation investment. Potentially useful models of landscape level climate resilience actions and ecosystem-based adaptation are also presented, along with estimates of the aggregate costs of agricultural adaptation. Countries in the region propose different mixes of domestic and foreign, and public and private, adaptation finance to meet the substantial gaps.

Key policy insights

• Though substantial potential for mitigation of agricultural emissions exists in South Asia, governments in the region do not commit to agricultural emissions reductions in their NDCs.

• Large-scale adoption of income-enhancing technologies is the key to realizing agricultural mitigation potential in South Asia, whilst maintaining food security.

• Increasing resilience and profitability through structural changes, value chain interventions, and landscape-level actions may provide strong options to build adaptive capacity and enhance food security.

• Both private finance (autonomous adaptation) and international financial transfers will be required to close the substantial adaptation finance gap

     

Swimming upstream: addressing fossil fuel supply under the UNFCCC

Reducing fossil fuel supply is necessary to meet the Paris Agreement goal to keep warming ‘well below 2°C’, yet the Agreement is silent on the topic of fossil fuels. This article outlines reasons why it is important that Parties to the Agreement find ways to more explicitly address the phasing out of fossil fuel production under the UNFCCC. It describes how countries aiming to keep fossil fuel supply in line with Paris goals could articulate and report their actions within the current architecture of the Agreement. It also outlines specific mechanisms of the Paris Agreement through which issues related to the curtailment of fossil fuel supply can be addressed. Mapping out a transition away from fossil fuels – and facilitating this transition under the auspices of the UNFCCC process – can enhance the ambition and effectiveness of national and international climate mitigation efforts.

Key policy insights

• The international commitment to limit global average temperature increases to ‘well below 2°C’ provides a strong rationale for Parties to the Paris Agreement and the UNFCCC to pursue a phase-down in fossil fuel production, not just consumption.

• Several countries have already made commitments to address fossil fuel supply, by agreeing to phase down coal or oil exploration and production.

• Integrating these commitments into the UNFCCC process would link them to global climate goals, and ensure they form part of a broader global effort to transition away from fossil fuels.

• The Paris Agreement provides a number of new opportunities for Parties to address fossil fuel production.

     

Nationally Determined Contributions under the Paris Agreement and the costs of delayed action

Current country-level commitments under the Paris Agreement fall short of putting the world on a required trajectory to stay below a 2°C temperature increase compared to pre-industrial levels by the end of the century. Therefore, the timing of increased ambition is hugely important and as such this paper analyses the impact of both the short and long-term goals of the Paris Agreement on global emissions and economic growth. Using the hybrid TIAM-UCL-MSA model we consider the achievement of a 2°C target against a baseline of the Nationally Determined Contributions (NDCs) while also considering the timing of increased ambition of the NDCs by 2030 and the impacts of cost reductions of key low-carbon technologies. We find that the rate of emissions reduction ambition required between 2030 and 2050 is almost double when the NDCs are achieved but not ratcheted up until 2030, and leads to lower levels of economic growth throughout the rest of the century. However, if action is taken immediately and is accompanied by increasingly rapid low-carbon technology cost reductions, then there is almost no difference in GDP compared to the path suggested by the current NDC commitments.

Key policy insights

• Delaying the additional action needed to achieve the 2°C target until 2030 is shown to require twice the rate of emissions reductions between 2030 and 2050.

• Total cumulative GDP over the century is lower when additional action is delayed to 2030 and therefore has an overall negative impact on the economy, even without including climate change damages.

• Increased ratcheting of the NDC commitments should therefore be undertaken sooner rather than later, starting in conjunction with the 2023 Global Stocktake.

• Early action combined with cost reductions in key renewable energy technologies can reduce GDP losses to minimal levels (<1%).

• A 2°C future with technological advancements is clearly possible for a similar cost as a 3.3°C world without these advances, but with lower damages and losses from climate change.

     

Assessing transformational change potential: the case of the Tunisian cement Nationally Appropriate Mitigation Action (NAMA)

To effectively address the root causes of carbon lock-in across developing countries, Nationally Appropriate Mitigation Actions (NAMAs) with transformational change characteristics are being supported by donors and finance mechanisms as a means to achieve ambitious nationally determined contributions (NDCs). However, there is still a scarcity of empirical studies on how transformational change policies and actions are designed and supported in practice. This article addresses such a gap in knowledge by combining theoretical insights from the multi-level perspective and transitions management literature to examine a donor-supported cement sector NAMA in Tunisia developed during 2012–2013. A narrative is constructed to analyse the adequacy of the NAMA design to promote structural shifts towards low carbon development in the cement sector. Data collection is based on semi-structured interviews and documentation gathered during field work in Tunisia 2014–2015. The study finds that the NAMA design is not likely to lead to transformational change of the cement sector, since underlying factors accounting for lock-in are not properly tackled. Although the NAMA has enabled new and promising sectoral partnerships across the cement sector, the analysis suggests that the NAMA’s transformational potential is currently limited by a number of factors not being adequately addressed. Measures are proposed to reorient the NAMA towards promoting system innovation, building on further research and experimentation with the policy entrepreneurial role of donors.

Key policy insights

• Underlying factors such as the absence of local finance institutions and the lack of reflexivity features in project design restrict the potential of the Tunisian cement NAMA to spur transformation to low carbon development.

• To tackle underlying causes of carbon lock-in and reorient policies and actions for transformational design, the promotion of feedback loops and self-contemplation needs to be based on a long-term vision, experimentation, social learning and information gathered during implementation.

• Donors need to re-think their existing modalities to better support unpredictable and highly political changes for sustainability transitions in developing countries.

     

The roles of network embeddedness,market incentives,and slack resources in the adoption of clean technologies by firms in developing countries

Worldwide carbon dioxide emissions continue to increase driven by fossil fuel consumption and industrial discharges. Progress on carbon emission reduction requires firms to adopt clean technologies which minimize material and energy consumption. Technological change is particularly required in developing countries, where industrial emissions often lead to chronic urban pollution problems. In this study, we explore the antecedents of clean technology strategy by firms in developing countries. We combine the contingent natural resource-based view with the relational view to examine how network embeddedness, market incentives and slack resources influence adoption of clean technology. The empirical support for our hypotheses comes from data obtained from 342 firms that operated in the carbon-offset market during the years 2007 to 2009. We find that a firm’s relational network structure influences adoption of clean technologies, particularly when market incentives are low. Contrary to one of the hypotheses, the results of our paper suggest a negative relationship between a firm’s slack resources and its clean technology strategy. Our study highlights the benefits of networks in fostering adoption of clean technology in developing countries. Furthermore, we find that high market incentives (carbon price) decrease the probability of clean technology adoption, so adding to the view that firms respond to carbon-offset rules to realize high carbon revenues at the lowest cost.

Key policy insights

• High market incentives (carbon price) decrease the probability that firms in developing countries will adopt clean technology.

• This adds to concerns about the capability of the Clean Development Mechanism to deliver sustainable development.

• Even where market incentives are low, firms in developing countries are more likely to adopt clean technologies when they are embedded in a closed network of connected partners.

• To stimulate adoption of clean technology in developing countries, policy makers should focus on initiatives to facilitate partnerships between organizations operating in the carbon market and create opportunities for knowledge sharing and learning.

• By changing the policy focus to networks of organizations, the carbon market can bring about positive change in terms of shifting the firm behaviour.

     

National climate change mitigation legislation,strategy and targets: a global update

Global climate change governance has changed substantially in the last decade, with a shift in focus from negotiating globally agreed greenhouse gas (GHG) reduction targets to nationally determined contributions, as enshrined in the 2015 Paris Agreement. This paper analyses trends in adoption of national climate legislation and strategies, GHG targets, and renewable and energy efficiency targets in almost all UNFCCC Parties, focusing on the period from 2007 to 2017. The uniqueness and added value of this paper reside in its broad sweep of countries, the more than decade-long coverage and the use of objective metrics rather than normative judgements. Key results show that national climate legislation and strategies witnessed a strong increase in the first half of the assessed decade, likely due to the political lead up to the Copenhagen Climate Conference in 2009, but have somewhat stagnated in recent years, currently covering 70% of global GHG emissions (almost 50% of countries). In comparison, the coverage of GHG targets increased considerably in the run up to adoption of the Paris Agreement and 89% of global GHG emissions are currently covered by such targets. Renewable energy targets saw a steady spread, with 79% of the global GHG emissions covered in 2017 compared to 45% in 2007, with a steep increase in developing countries.

Key policy insights

• The number of countries that have national legislation and strategies in place increased strongly up to 2012, but the increase has levelled off in recent years, now covering 70% of global emissions by 2017 (48% of countries and 76% of global population).

• Economy-wide GHG reduction targets witnessed a strong increase in the build up to 2015 and are adopted by countries covering 89% of global GHG emissions (76% not counting USA) and 90% of global population (86% not counting USA) in 2017.

• Renewable energy targets saw a steady increase throughout the last decade with coverage of countries in 2017 comparable to that of GHG targets.

• Key shifts in national measures coincide with landmark international events – an increase in legislation and strategy in the build-up to the Copenhagen Climate Conference and an increase in targets around the Paris Agreement – emphasizing the importance of the international process to maintaining national momentum.

     

Environmental integrity of international carbon market mechanisms under the Paris Agreement

The Paris Agreement establishes provisions for using international carbon market mechanisms to achieve climate mitigation contributions. Environmental integrity is a key principle for using such mechanisms under the Agreement. This paper systematically identifies and categorizes issues and options to achieve environmental integrity, including how it could be defined, what influences it, and what approaches could mitigate environmental integrity risks. Here, environmental integrity is assumed to be ensured if the engagement in international transfers of carbon market units leads to the same or lower aggregated global emissions. Four factors are identified that influence environmental integrity: the accounting for international transfers; the quality of units generated, i.e. whether the mechanism ensures that the issuance or transfer of units leads to emission reductions in the transferring country; the ambition and scope of the mitigation target of the transferring country; and incentives or disincentives for future mitigation action, such as possible disincentives for transferring countries to define future mitigation targets less ambitiously or more narrowly in order to sell more units. It is recommended that policy-makers combine several approaches to address the significant risks to environmental integrity.

Key policy insights

• Robust accounting is a key prerequisite for ensuring environmental integrity. The diversity of nationally determined contributions is an important challenge, in particular for avoiding double counting and for ensuring that the accounting for international transfers is representative for the mitigation efforts by Parties over time.

• Unit quality can, in theory, be ensured through appropriate design of carbon market mechanisms; in practice, existing mechanisms face considerable challenges in ensuring unit quality. Unit quality could be promoted through guidance under Paris Agreement Article 6, and reporting and review under Article 13.

• The ambition and scope of mitigation targets is key for the incentive for transferring countries to ensure unit quality because countries with ambitious and economy-wide targets would have to compensate for any transfer of units that lack quality. Encouraging countries to adopt ambitious and economy-wide NDC targets would therefore facilitate achieving environmental integrity.

• Restricting transfers in instances of high environmental integrity risk – through eligibility criteria or limits – could complement these approaches.

     

How to operationalize accounting under Article 6 market mechanisms of the Paris Agreement

The role of market mechanisms was far from certain in the lead up to the 2015 Paris Climate Conference. The use of ‘constructive ambiguity’ led to Article 6 of the Paris Agreement, with Article 6.2 specifying a mechanism with limited international oversight, and Article 6.4 establishing a ‘Sustainable Development Mechanism’ (SDM) subject to detailed rules. Clear operationalization of these mechanisms remains a challenge, especially regarding the critical accounting issue that could not be resolved at the 2018 Katowice Climate Conference (COP24) – how to apply corresponding adjustments, especially regarding sectors not covered by targets under nationally-determined contributions (NDCs). By using fictitious examples, we explain two possible approaches to using Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 for achieving NDCs: a ‘target-based’ one where the acquiring Party adds the ITMO amount to the target level of its NDC; and a ‘tally-based’ one where the acquiring Party removes the ITMO amount from the final tally of its NDC. We discuss how these approaches influence the way to make corresponding adjustments and to avoid ‘double counting’. The first one leads to ‘target/budget-based accounting’, the second one to ‘emission-based accounting’. For mitigation outside the scope of the host Party's NDC, we propose using a tally-based interpretation of ITMO use, as opposed to the target-based variety used in the 1997 Kyoto Protocol, and stress the need for additionality testing. This interpretation allows for mandatory corresponding adjustments for all ITMO usage, while the host Party NDC level remains unchanged. A buffer registry is created for corresponding non-NDC adjustments of the selling party.

Key policy insights

• Under the Paris Agreement, transfers of emissions units between two countries through the Article 6 mechanisms need a corresponding adjustment on both sides to prevent double counting.

• Corresponding adjustments can be applied either to emissions targets under NDCs or measured emissions levels.

• The transfer of emissions reduction credits generated outside an NDC should lead to a corresponding adjustment of a buffer registry of the selling country, but not its emissions level/NDC target. Such credits should only be generated if additionality of the reductions is shown.

     

Health co-benefits and the development of climate change mitigation policies in the European Union

The 2015 Paris Agreement requires increasingly ambitious emissions reduction efforts from its member countries. Accounting for ancillary positive health outcomes (health co-benefits) that result from implementing climate change mitigation policies can provide Parties to the Paris Agreement with a sound rationale for introducing stronger mitigation strategies. Despite this recognition, a knowledge gap exists on the role of health co-benefits in the development of climate change mitigation policies. To address this gap, the case study presented here investigates the role of health co-benefits in the development of European Union (EU) climate change mitigation policies through analysis and consideration of semi-structured interview data, government documents, journal articles and media releases. We find that while health co-benefits are an explicit consideration in the development of EU climate change mitigation policies, their influence on final policy outcomes has been limited. Our analysis suggests that whilst health co-benefits are a key driver of air pollution mitigation policies, climate mitigation policies are primarily driven by other factors, including economic costs and energy implications.

Key policy insights

• Health co-benefits are quantified and monetized as part of the development of EU climate change mitigation policies but their influence on the final policies agreed upon is limited.

• Barriers, such as the immediate economic costs associated with climate action, inhibit the influence of health co-benefits on the development of mitigation policies.

• Health co-benefits primarily drive the development of EU air pollution mitigation policies.

• The separation of responsibility for GHG and non-GHG emissions across Directorate Generals has decoupled climate change and air pollution mitigation policies, with consequences for the integration of health co-benefits in climate policy.

     

Overcoming barriers to climate change information management in small island developing states: lessons from pacific SIDS

We live in a rapidly advancing digital information age where the ability to discover, access and utilize high-quality information in a reliable and timely manner is often assumed to be the norm. However, this is not always the experience of researchers, practitioners and decision makers responding to the challenges of a rapidly changing climate, despite the billions now being made available for investment in climate change adaptation initiatives throughout the world and particularly in developing countries. In recognition of the importance of information in adaptation planning, Article 7.7 of the Paris Agreement sets out clear guidance for parties to develop, share, manage and deliver climate change knowledge, information and data as a means to strengthening cooperation and action on adaptation. This article provides some key lessons and insights on climate change information and knowledge management (IKM) in small island developing States (SIDS) from the perspective of Pacific SIDS. A situation analysis of current climate change IKM practices in Fiji, Tonga and Vanuatu was conducted and key barriers to effective climate change IKM identified. The outcome of this article is a range of pragmatic policy considerations for overcoming common barriers to climate change IKM in the Pacific, which may be of value to SIDS more widely.

Key policy insights

• The partnership approach of co-investigating climate change IKM barriers in collaboration with Pacific SIDS generated considerable trust, a shared purpose and therefore rich IKM lessons and insights.

• Turning climate change IKM aspirations into practice is significantly more complicated than expected, and requires a long-term commitment from both national governments and development partners.

• Pacific SIDS need to establish national guiding climate change IKM Frameworks that leverage rather than duplicate growing national investments in whole-of-government IKM.

• Reframing climate change IKM in the Pacific towards demand and user needs will be critical to ensuring widespread ownership and participation in IKM solutions that lead to greater adaptation and resilience outcomes.

• It is also critical that IKM activities in SIDS support the development of national capacity to scope, develop, deploy and maintain decision support systems.

• Federated IKM systems are ideal for encouraging greater IKM collaboration.

     

Challenges to addressing non-CO2 greenhouse gases in China’s long-term climate strategy

Under the Paris Agreement, countries are encouraged to submit long-term low greenhouse gas emissions development strategies. Such strategies will merge emissions goals with socio-economic objectives and enable countries to increase their ambition over time, thus offering an opportunity to close the gap between the current emissions trajectory and the Agreement’s ‘well below 2°C’ target. China is in the process of preparing its own long-term strategy. We argue in this article that non-CO₂ greenhouse gases (NCGGs) should be an essential component of China’s long-term low-emissions strategy. To incorporate NCGGs into China’s long-term low-emissions development strategy, key scientific and institutional challenges should be addressed, such as uncertainty about the accuracy of NCGG emissions inventories; uncertainty about future projections of NCGG emissions; and institutional coordination deficits and imbalanced policy approaches. Overcoming these barriers will have significant implications for climate change mitigation and can open a path for the development of concrete follow-up actions.

Key policy insights

• Non-CO₂ greenhouse gases (NCGGs) make up around 17% of China’s GHG emissions, but China has no quantified target to limit or reduce these gases.

• NCGG emissions mitigation should be an essential component of China's long-term low-emissions strategy, which is currently under development.

• Considerable uncertainty exists over both historical NCGG emissions data and forecasts. This poses challenges to developing a comprehensive multi-gas strategy.

• Institutional challenges must also be addressed, such as fragmentation of responsibility for NCGGs.

     

Mapping and clustering the adoption of carbon pricing policies: what polities price carbon and why?

Carbon pricing, including carbon taxes and emissions trading, has been adopted by different kinds of polities worldwide. Yet, beyond the increasing adoption over time, little is known about what polities – countries as well as sub- and supranational entities – adopt carbon pricing and why. This paper explores patterns of adoption (both implemented policies and those scheduled to be) through cluster analysis, with the purpose of investigating factors that could explain polities’ decisions to adopt carbon pricing. The study contributes empirically by studying carbon taxes and emissions trading together and by ordering the polities adopting carbon pricing into clusters. It also contributes theoretically, by exploring constellations of variables that drive the adoption of carbon pricing within individual clusters. We investigated 66 adopted policies of carbon pricing, which were divided into five clusters: early adopters, North-American subnational entities, Chinese pilot provinces, second-wave developed polities, and second-wave developing polities. The analysis indicates that the reasons for adopting carbon pricing have shifted over time. While international factors (climate commitments or influences from polities within the same region) are increasingly salient, domestic factors (including crises and income levels) were more important for the early adopters.

Key policy insights

• Carbon pricing has become a global mainstream policy instrument.

• Economic and fiscal crises provide windows of opportunity for promoting carbon pricing.

• The international climate regime can support the adoption of carbon pricing through mitigation commitments and international financial and technical assistance.

• Learning between polities from the same region is a useful tool for promoting carbon pricing.

• Carbon intensive economies tend to prefer emissions trading over carbon taxes.

     

Developing Africa’s energy mix

Africa is growing rapidly both in terms of population size and economically. It is also becoming increasingly clear that fossil fuels impose a high price on society through local environmental pollution and Africa’s particular vulnerability to climate change. At the same time, Africa has an excellent renewable energy potential and prices for renewable energy are reaching the price range of fossil fuels. Comparing results from state-of-the-art Integrated Assessment Models we find different options for achieving a sustainable energy supply in Africa. They have in common, however, that strong economic development is considered compatible with the 2°C climate target. Taking both challenges and appropriate solutions into account, some models find that a complete switch to renewable energy in electricity production is possible in the medium term. The continental analysis identifies important synergy effects, in particular the exchange of electricity between neighbouring countries. The optimal energy mix varies considerably between African countries, but there is sufficient renewable energy for each country. The intermittency and higher capital intensity of renewable energy are important challenges, but proven solutions are available for them. In addition, we analyse the political economy of a sustainable energy transition in Africa.

Key policy insights

• An almost complete shift towards renewable energy (RE) is considered feasible and affordable in Africa.

• By 2050, electricity generation could be sourced largely from solar, wind and hydro power.

• Prices for RE in Africa are now within the price range of fossil fuels, partly due to the excellent RE potential.

• The optimal energy mix varies strongly between countries, but RE is sufficiently available everywhere.

• Addressing intermittency is possible, but requires investments and cooperation on the grid.

     

The role of climate finance beyond renewables: demand-side management and carbon capture,usage and storage

Mobilizing climate finance for climate change mitigation is a crucial part of meeting the ‘well-below’ 2°C goal of the Paris Agreement. Climate finance refers to investments specifically in climate change mitigation and adaptation activities, which involve public finance and the leveraging of private finance. A large proportion of climate finance is Official Development Assistance (ODA) from OECD countries to ODA-eligible countries. The evidence shows that the largest proportion of climate finance for climate change mitigation has been channelled to the development of renewable energy, with a much smaller proportion flowing to other crucial forms of clean energy-related measures, such as demand-side management (DSM) (particularly sustainable cooling) and carbon capture, usage and storage (CCUS). This forms the rationale and aim of this synthesis paper: to review the role of climate finance to develop clean energy beyond renewables. In doing so, the paper draws on practical policy and programme experiences of some donor countries, such as the UK, and Development Finance Institutions (DFIs). This paper argues that a greater amount of climate finance from OECD countries to ODA-eligible fossil fuel-intensive emerging economies and developing countries is required for sustainable cooling and CCUS, particularly in the form of technical assistance and clean energy innovation.

Key policy insights

• Demand-side management (DSM) and carbon capture, usage and storage (CCUS) are underfunded in climate finance compared with the promotion of renewables.

• Climate finance for sustainable cooling, in particular, represents just 0.04% of total ODA, despite cooling projected to represent 13% of global emissions by 2030.

• Public investment in CCUS is limited at US $28 billion since 2007, despite the costs of meeting the Paris Agreement estimated to be 40-128% more expensive without CCUS.

• Additional climate finance for these sectors should not come at the expense of funding for renewables but should be complementary to it.

     

Securing the climate benefits of stable forests

Stable forests – those not already significantly disturbed nor facing predictable near-future risks of anthropogenic disturbance – may play a large role in the climate solution, due to their carbon sequestration and storage capabilities. Their importance is recognized by the Paris Agreement, but stable forests have received comparatively little attention through existing forest protection mechanisms and finance. Instead, emphasis has been placed on targeting locations where deforestation and forest degradation are happening actively. Yet stopping deforestation and forest degradation does not guarantee durable success, especially outside the geographic scope of targeted efforts. As a result, today’s stable forests may be at risk without additional efforts to secure their long-term conservation.

We synthesize the gaps in existing policy efforts that could address the climate-related benefits derived from stable forests, noting several barriers to action, such as uncertainty around the level of climate services that stable forests provide and difficulties describing the real level of threat posed. We argue that resource and finance allocation for stable forests should be incorporated into countries’ and donors’ comprehensive portfolios aimed at tackling deforestation and forest degradation as well as resulting emissions. A holistic and forward-looking approach will be particularly important, given that success in tackling deforestation and forest degradation where it is currently happening will need to be sustained in the long term.

Key policy insights

• Climate policies, finance, and implementation have tended to focus on areas of recent forest loss and near-term threats of anthropogenic disturbance, resulting in an imbalance of effort that fails to adequately address stable forests.

• In some contexts, policy measuresintended to secure the climate-related benefits of stable forests have competed poorly against more urgent threats. Policymakers and finance mechanisms should view stable forests as a complementary element within a holistic, long-term approach to resource management.

• International mechanisms and national frameworks should be adjusted and resourced to promote the long-term sustainability and permanence of stable forests.

• Beyond additional resources, the climate benefits of stable forests may be best secured by pro-actively designing implementing policies that recognize the rights and interests of stakeholders who are affected by land management decisions.

     

Challenges for hydropower-based nationally determined contributions: a case study for Ecuador

Hydropower is the dominant renewable energy source to date, providing over two-thirds of all renewable electricity globally. For countries with significant hydropower potential, the technology is expected to play a major role in the energy transition needed to meet nationally determined contributions (NDCs) for greenhouse gas (GHG) emission reductions as laid out in the Paris Agreement. For the Republic of Ecuador, large hydropower is currently considered as the main means for attaining energy security, reducing electricity prices and mitigating GHG emissions in the long-term. However, uncertainty around the impacts of climate change, investment cost overruns and restrictions to untapped resources may challenge the future deployment of hydropower and consequently impact decarbonization efforts for Ecuador’s power sector. To address these questions, a partial equilibrium energy system optimization model for Ecuador (TIMES-EC) is used to simulate alternative electricity capacity expansion scenarios up to 2050. Results show that the share of total electricity supplied by hydropower in Ecuador might vary significantly between 53% to 81% by 2050. Restricting large hydropower due to social-environmental constraints can cause a fourfold increase in cumulative emissions compared to NDC implied levels, while a 25% reduction of hydropower availability due to climate change would cause cumulative emissions to double. In comparison, a more diversified power system (although more expensive) which limits the share of large hydropower and natural gas in favour of other renewables could achieve the expected NDC emission levels. These insights underscore the critical importance of undertaking detailed whole energy system analyses to assess the long-term challenges for hydropower deployment and the trade-offs among power system configuration, system costs and expected GHG emissions in hydropower-dependent countries, states and territories.

Key policy insights

• Ecuador’s hydropower-based NDC is highly vulnerable to the occurrence of a dry climate scenario and restrictions to deployment of large hydropower in the Amazon region.

• Given Ecuador’s seasonal runoff pattern, fossil-fuel or renewable thermoelectric backup will always be required, whatever the amount of hydropower installed.

• Ecuador’s NDC target for the power sector is achievable without the deployment of large hydropower infrastructure, through a more diversified portfolio with non-hydro renewables.

     

Is India pulling its weight? India’s nationally determined contribution and future energy plans in global climate policy

Ahead of the Conference of Parties (COP) 24 where countries will first take stock of climate action post Paris, this paper assesses India’s progress on its nationally determined contribution (NDC) targets and future energy plans. We find that, although India is well on track to meet its NDC pledges, these targets were extremely modest given previous context. Furthermore, there is considerable uncertainty around India’s energy policy post 2030 and if current plans for energy futures materialise, the Paris Agreement’s 2 degrees goal will be almost certainly unachievable. India’s role in international climate politics has shifted from obstructionism to leadership particularly following the announcement of withdrawal by the United States from the Paris Agreement, but analysis reveals that India’s ‘hard’ actions on the domestic front are inconsistent with its ‘soft’ actions in the international climate policy arena. Going forward, India is likely to face increasing calls for stronger mitigation action and we suggest that this gap can be bridged by strengthening the links between India’s foreign policy ambitions, international climate commitments, and domestic energy realities.

Key policy insights

• India’s NDC pledges on carbon intensity and share of non-fossil fuel capacity are relatively modest given domestic context and offer plenty of room to increase ambition of action.

• India’s ‘soft’ leadership in global climate policy can be matched by ‘hard’ commitments by bringing NDC pledges in line with domestic policy realities.

• There is significant uncertainty around future plans for coal power in India which have the potential to exceed the remaining global carbon budget for 2 degrees.

     

An initial scoping of transitional justice for global climate governance

Geopolitical changes combined with the increasing urgency of ambitious climate action have re-opened debates about justice and international climate policy. Tensions about historical responsibility have been particularly difficult and could intensify with increased climate impacts and as developing countries face mounting pressure to take mitigation action. Climate change is not the only time humans have faced historically rooted, collective action challenges involving justice disputes. Practices and tools from transitional justice have been used in over 30 countries across a range of conflicts at the interface of historical responsibility and imperatives for collective futures. Central to this body of theory and experience is the need to reflect both backwards- and forwards-oriented elements in efforts to build social solidarity. Lessons from transitional justice theory and practice have not been systematically explored in the climate context. This article conceptually examines the potential of transitional justice practices to inform global climate governance by looking at the structural similarities and differences between the global climate regime and traditional transitional justice contexts. It then identifies a suite of common transitional justice practices and assesses their potential applicability in the climate context.

POLICY RELEVANCE

• Justice disputes, including about historical responsibility and future climate actions, are long-standing in the climate context and could intensify with increased climate impacts and broadened mitigation pressures.

• Lessons from efforts to use transitional justice mechanisms could provide insight into strategies for balancing recognition of harms rooted in the past, while creating stronger future-oriented collective action.

• Several areas of transitional justice practice including: the combination of amnesties and litigation, truth commissions, reparations and institutional change could provide useful insights for the climate context.