The emperor's new clothes: redressing the Kyoto Protocol

Abstract

US President Bush repudiated the Kyoto Protocol because, in his view, it is ‘fatally flawed in fundamental ways’. This paper evaluates seven proposals to redress the protocol according to their potential to deal with three key issues that have reinforced US intransigence: hot air, cost uncertainty and developing country participation. It argues that negotiations on intensity targets hold the most promise. Because intensity targets limit hot air, but do not limit economic growth, and a high variance of carbon intensity exists among countries with similar GDP per capita, intensity targets based on best practice levels might be agreeable to developing countries and the US. If a protocol specifying such targets were implemented, less warming would be associated with larger world GDP than would otherwise be the case, and countries' carbon intensity and emissions per capita would tend to converge to best practice levels at every stage of development.     

An evaluation of the level of ambition and implications of the Bush Climate Change Initiative

Abstract

This article summarises the results of an evaluation of the Climate Change Initiative launched by President Bush in February 2002. The policy target to reduce the greenhouse gas intensity of the US economy by 18% between 2002 and 2012 can be considered modest at best. The Initiative is likely to result in a 32% increase in US greenhouse gas emissions in 2012 compared to the 1990 levels. The effort also falls considerably short of efforts of the EU, Japan and Canada under the Kyoto Protocol. The Bush Initiative advocates using intensity targets in the international climate change regime, but overlooks fundamental problems associated with this approach. All the same, the Bush Initiative is of political significance as it recognises the importance of the climate change problem and may improve the longer-term prospects for US participation in a global climate regime.     

Global Triptych: a bottom-up approach for the differentiation of commitments under the Climate Convention

Abstract

In the coming years the international debate on commitments for the second commitment period under the Kyoto Protocol will intensify. In this study, the Global Triptych approach is put forward as an input for international decision-making concerning the differentiation of commitments by 2020. It is a sector- and technology-oriented approach, and we calculated quantitative emission limitation objectives and global emissions starting from bottomup information on long-term reduction opportunities. Central to the calculations were long-term sustainability targets for the year 2050, formulated for (1) energy efficiency in the energy-intensive industry, (2) greenhouse gas intensity of electricity production, and (3) per capita emissions in the domestic sectors. Calculated emission limitation objectives for 13 world regions ranged from about ?30% to more than +200%. The ranking of world regions in the differentiation turned out to be independent of the levels chosen for the long-term sustainability targets. The objectives seem sufficient to maintain the long-term possibility of stabilizing atmospheric greenhouse gas concentrations at about 550 ppm CO₂-eq, but will require severe emission reductions. These may be relaxed to a certain degree if stabilization at 650 ppm CO₂-eq is aimed for. We conclude that the bottom-up character of the approach made it possible to examine important basic principles of the Climate Convention, including equity, the needs and circumstances of developing countries, cost-effectiveness and sustainable development.     

When less is more: limits to international transfers under Article 6 of the Paris Agreement

International carbon markets can be an important tool in achieving countries’ mitigation targets under the Paris Agreement, but they are subject to a number of environmental integrity risks. An important risk is that some countries have mitigation targets that correspond to higher levels of emissions than independent projections of their likely emissions. If such ‘hot air’ can be transferred to other countries, it could increase aggregated emissions and create a perverse incentive for countries not to enhance the ambition of future mitigation targets. Limits to international transfers of mitigation outcomes have been proposed to address this risk. This article proposes a typology for such limits, explores key design options, and tests different types of limits in the context of 15 countries. Our analysis indicates that limits to international transfers could, if designed appropriately, prevent most of the hot air contained in current mitigation targets from being transferred, but also involve trade-offs between different policy objectives. Given the risks from international transfer of hot air and the uncertainty over whether other approaches will be effective in ensuring environmental integrity, we recommend that countries take a cautious approach and pursue a portfolio of approaches to ensure environmental integrity, in which case limits could provide for additional safeguards.

Key policy insights

• Limits to international transfers involve trade-offs between different policy objectives, in particular reducing the risk that countries transfer hot air and enabling participation in carbon markets.

• Under ‘relative’ limits a country may transfer mitigation outcomes to the extent that its actual emissions are below the limit. Relative limits derived from historical emissions data have significant limitations, and none of the tested approaches was found to be effective for all countries. Relative limits based on emission projections could be a more valid approach, although they are also technically and politically challenging.

• Under ‘absolute’ limits a country could only issue, transfer or acquire a certain amount of mitigation outcomes. Absolute limits set at sufficiently low levels could prevent countries from transferring large amounts of hot air, but are bluntly applicable to all countries, whether or not they have hot air.

     

Comparing developing countries under potential carbon allocation schemes

Abstract

To stabilise atmospheric greenhouse gas concentrations, all countries will eventually need to be included in the effort to limit climate change. This article explores what potential future greenhouse gas allocation schemes might mean for key developing countries. The need for development is widely acknowledged, but growth in non-Annex I country emissions means that such development may need to take a different path to business as usual. The national interests of developing countries in negotiating potential future commitments are shaped by basic characteristics, notably emissions (both annual and historical cumulative), economic growth and population. These factors in turn shape the acceptability of allocations based on ability to pay, emissions intensity, or emissions per capita.

Results for six major developing countries (China, India, Brazil, South Africa, Argentina and Nigeria) show that the implications for developing countries differ widely. For example, ability to pay does not favour Argentina; a reduction based on emissions intensity is not appropriate for Brazil; and per capita allocations would be problematic for South Africa. It is difficult to conceive of a single allocation scheme that would be appropriate for all developing countries. This points to the need for differentiation between developing countries in terms of any potential future commitments.     

Action targets: a new approach to international greenhouse gas controls

Abstract

This article introduces and explores a new form of international commitment to limit greenhouse gas (GHG) emissions, called an action target. Action targets differ from other forms of targets, such as the Kyoto Protocol's fixed targets, in that they define a quantity of GHG abatement to be achieved, rather than a future emission level to be reached. This article explains the basic mechanics of how action targets might operate, and analyses the approach across a range of criteria, including uncertainty management and contributions to sustainable development in non-Annex I (developing) countries. The analysis suggests that action targets might improve the prospects of widening and deepening developing country participation in the international climate regime.     

Spain: words that succeed and climate policies that fail

Abstract

The two project-based Kyoto mechanisms, joint implementation (JI) and the clean development mechanism (CDM), require a determination of the “baseline”, the development of greenhouse gas (GHG) emissions in the absence of the project. This paper examines, whether absolute (given in tCO₂ equivalent) or relative baselines (“benchmarks”, given, e.g. in tCO₂ equivalent/MWh) should be applied for JI/CDM projects in the energy sector. Accuracy of the GHG emission reduction and manageability of GHG emission balances are used as evaluation criteria. The results show that relative baselines are a more accurate instrument for the estimation of emission reductions in JI/CDM projects in the energy sector without posing significant additional risks to the management of GHG emission balances for large entities. In comparison to absolute baselines, relative baselines indicate in a more realistic and conservative manner the amount of emission reductions obtained in the energy system and give more appropriate incentives to project sponsors. The additional risks of relative baselines are likely to be small compared to the normal deviation of the domestic/internal GHG emissions. The findings are in line with the Marrakesh Accords, which set restrictions to application of absolute baselines.     

Estimating the CDM market under the Marrakech Accords

Abstract

The agreement on implementation of the Kyoto Protocol achieved at COP7 in Marrakech has important implications for investment in greenhouse gas emission reduction projects in developing countries through the Clean Development Mechanism (CDM). The required actual emission reductions for participating Annex B countries overall will be relatively small, as the United States do not intend to ratify the protocol and significant amounts of carbon sequestered in domestic sinks can be credited. In addition, the potential supply of surplus emission permits (hot air) from Russia and other economies in transition may be as high as total demand in the first commitment period. Thus, even under restraint of hot air sellers, CDM demand will be limited, and a low demand, low price carbon market scenario appears likely.

The magnitude of the CDM will be influenced by a host of factors both on the demand and the supply-side. We analyse these using a quantitative model of the global carbon market, based on marginal abatement cost curves. Implementation and transaction costs, as well as baseline and additionality rules affect the CDM's share in the carbon market. Demand for the CDM is sensitive to changes in business-as-usual emissions growth in participating Annex B countries, and also to crediting for additional sinks. Permit supply from Russia and other economies in transition is possibly the most crucial factor in the carbon market.     

Common but differentiated convergence (CDC): a new conceptual approach to long-term climate policy

Abstract

This article describes a new concept for an international climate regime for differentiation of future commitments: the ‘common but differentiated convergence’ approach (CDC). Under CDC, Annex-I countries' per-capita emission allowances converge within a convergence period to a low level. Individual non-Annex-I countries' allowances converge to the same level also within the same period (‘common convergence’), but starting when their per-capita emissions are a certain percentage above global average (‘differentiated’). Until then they may voluntarily take on ‘positively binding’ targets. This approach eliminates two concerns often voiced in relation to gradually converging per-capita emissions: (i) advanced developing countries have their commitment to reduce emissions delayed and their targets are not the same as Annex-I countries with equal per-capita emissions; (ii) CDC does not provide excess emission allowances to the least developing countries. Under CDC, stabilizing greenhouse gas concentrations at 550 and 650 ppm CO₂-equivalent can be reached with participation at roughly 0% and 50% above global average and convergence to around 3 and 4.5 tCO₂-eq/cap within 40 years. Even if the CDC approach is not implemented in its entirety, it is possible that the step-by-step decisions on the international climate regime can be guided by the principles provided in the CDC approach.     

Options for differentiation of future commitments in climate policy: how to realise timely participation to meet stringent climate goals?

Abstract

This paper aims at exploring options for differentiation of future commitments in global greenhouse gas emissions control, linked to climate targets. This is done on the basis of theEUtarget of a maximum global temperature increase of 2°C compared to pre-industrial levels. The Framework to Assess International Regimes for the differentiation of commitments (FAIR) is used to explore the implications of two possible climate regimes: (1) increasing participation (i.e. a gradual increase in the number of parties involved and their level of commitment according to participation and differentiation rules) and (2) ‘contraction and convergence’ (C&C) with universal participation and a convergence of per capita emission permits. It is found that in a regime of increasing participation, stabilising the CO₂ concentration at 450 ppmv by 2100 requires participation of major developing countries before 2050 in global emission control, irrespective of the participation and differentiation rules chosen. In the case of stringent climate targets, a convergence regime seems to provide more incentives for a timely participation of developing countries, and opportunities for an effective and efficient regime for controlling global emissions than increasing participation.     

Combining price and quantity instruments: insights from South Africa

A carbon tax will form the central carbon pricing instrument in South Africa. The country, however, is also in the process of setting specific short-term emissions limits at a subnational level. Additional mitigation policy instruments will thus be required to meet these targets. Although it is possible to combine sector-level quantity targets with a broad-based carbon tax, this article finds that this greatly complicates mitigation policy design, increasing both the information requirements and the likelihood of unintended consequences. The trade-offs between economic efficiency (optimized by the use of a broad-based price set by a carbon tax) and environmental effectiveness (optimized by using instruments that ensure emissions reduction targets are met) are ever present. A clear understanding of subnational quantity targets and an appreciation of the characteristics of the instruments to achieve such targets (quantity-based instruments, QBIs), the framework through which the instruments are combined, and their possible interactions, are required for effective policy making. Three possible frameworks for combining instruments are identified in the article, and some specific implications of interaction between particular QBIs and a carbon tax are suggested.

Policy relevance

This article explores the interaction of a carbon tax with mitigation policy instruments to meet subnational emissions targets in the South African context (where both a carbon tax and subnational emissions targets are currently being developed). As international negotiations progress towards countries accepting binding GHG emissions restrictions, quantity-based mitigation policy approaches become more important. In countries where a broad-based emissions trading scheme (ETS) is not feasible in the short to medium term, combining a broad-based carbon tax with subnational emission targets provides an alternative mechanism for achieving the economic efficiency and emissions certainty benefits derived from an ETS. This paper considers the mechanisms through which such a combination of instruments can be achieved. Three possible frameworks for combining instruments are identified, some specific implications of interaction between particular QBIs and a carbon tax are suggested, and guidelines and concept tools are presented to assist policy-makers in designing efficient and coherent mitigation policy.     

Dynamics of energy sector and GHG emissions in Saudi Arabia

The energy sector is the main contributor to GHG emissions in Saudi Arabia. The tremendous growth of GHG emissions poses serious challenges for the Kingdom in terms of their reduction targets, and also the mitigation of the associated climate changes. The rising trend of population and urbanization affects the energy demand, which results in a faster rate of increase in GHG emissions. The major energy sector sources that contribute to GHG emissions include the electricity generation, road transport, desalination plants, petroleum refining, petrochemical, cement, iron and steel, and fertilizer industries. In recent years, the energy sector has become the major source, accounting for more than 90% of national CO₂ emissions. Although a substantial amount of research has been conducted on renewable energy resources, a sustainable shift from petroleum resources is yet to be achieved. Public awareness, access to energy-efficient technology, and the development and implementation of a legislative framework, energy pricing policies, and renewable and alternative energy policies are not mature enough to ensure a significant reduction in GHG emissions from the energy sector. An innovative and integrated solution that best serves the Kingdom's long-term needs and exploits potential indigenous, renewable, and alternative energy resources while maintaining its sustainable development stride is essential.

Policy relevance

The main contributor to GHG emissions in Saudi Arabia is the energy sector that accounts for more than 90% of the national CO₂ emissions. Tremendous growth of GHG emissions poses serious challenges for the Kingdom in their reduction and mitigating the associated climate changes. This study examines the changing patterns of different activities associated with energy sector, the pertinent challenges, and the opportunities that promise reduction of GHG emissions while providing national energy and economic security. The importance of achieving timely, sustained, and increasing reductions in GHG emissions means that a combination of policies may be needed. This study points to the long-term importance of making near- and medium-term policy choices on a well-informed, strategic basis. This analytical paper is expected to provide useful information to the national policy makers and other decision makers. It may also contribute to the GHG emission inventories and the climate change negotiations.     

Competitiveness of terrestrial greenhouse gas offsets: are they a bridge to the future?

Activities to reduce net greenhouse gas emissions by biological soil or forest carbon sequestration predominantly utilize currently known, readily implementable technologies. Many other greenhouse gas emission reduction options require future technological development or must wait for turnover of capital stock. Carbon sequestration options in soils and forests, while ready to go now, generally have a finite life, allowing use until other strategies are developed. This paper reports on an investigation of the competitiveness of biological carbon sequestration from a dynamic and multiple strategy viewpoint. Key factors affecting the competitiveness of terrestrial mitigation options are land availability and cost effectiveness relative to other options including CO₂ capture and storage, energy efficiency improvements, fuel switching, and non-CO₂ greenhouse gas emission reductions. The analysis results show that, at lower CO₂ prices and in the near term, soil carbon and other agricultural/forestry options can be important bridges to the future, initially providing a substantial portion of attainable reductions in net greenhouse gas emissions, but with a limited role in later years. At higher CO₂ prices, afforestation and biofuels are more dominant among terrestrial options to offset greenhouse gas emissions. But in the longer run, allowing for capital stock turnover, options to reduce greenhouse gas emissions from the energy system and biofuels provide an increasing share of potential reductions in total US greenhouse gas emissions.     

Assessment of greenhouse gases emission from civil aviation in Russia

The greenhouse gases emission (CO₂, CH₄, and N₂O) from domestic and international aviation in the Russian Federation is assessed. In 2007, the total emission of CO₂, CH₄, and N₂O amounted to 18.4 million tons of CO₂-equivalent, which is 21% below the 1990 level. Carbon dioxide dominates in the component composition of the emissions, its part in 2007 accounted for 99.1% of the emission. Taking into account the tendency towards increasing fuel consumption due to intense aircraft traffic it can be expected that compared to the present level the greenhouse gases emissions in 2012 and 2020 will increase by 15 and 45%, respectively. Accounting for the increased aircraft emissions as well as plans of foreign countries to include the international aviation into the scheme of greenhouse gases emission allowance (trade credits) it is expedient to make more precise the greenhouse gases emissions from the Russian aviation based on the detailed flight data for all types of the aircraft.     

Carbon dioxide emissions from Russia's electricity sector: future scenarios

Abstract

This article investigates future greenhouse gas emission scenarios for Russia's electricity sector, a topic of importance since Russia's ratification of the Kyoto Protocol in November 2004. Eleven scenarios are constructed to the year 2020 considering economic and technological details in both the demand and supply sides of the sector. The scenarios are based upon a thorough review of the different factors controlling carbon dioxide emissions, including potential economic growth, changes in energy efficiency and technological development, and that Russia may export large amounts of natural gas to European and Asian markets. The most likely scenario is that Russia will double industrial output over the next 10 years, increase energy efficiency in the demand sector, will remain consistent to the goals of the Energy Strategy 2020 and will implement more efficient technology in the electricity supply sector. Consequently, carbon dioxide emissions will still be 102 million tonnes below 1990 levels in 2010, representing a significant source for emission reduction credits available to be sold on international markets or transferred to the next crediting period.     

Domestic actions contributing to the mitigation of GHG emissions from power generation in Brazil

Abstract

Continued growth and the privatisation of Brazil's electricity system, which is largely based upon hydropower, is projected to lead to big expansion mainly of natural gas but also coal power stations with a resulting huge growth in greenhouse gases (GHG) emissions unless steps are taken to avoid this. The Brazilian National Program of Power Conservation and Efficient Use of Electrical Energy in terms of avoided GHG emissions (PROCEL), originally created in 1985, is a multi-stakeholder program coordinated by Eletrobrás aimed to reduce the waste of electrical power on both supply and demand side. Initially crippled by lack of funds, a new finance structure introduced in 1994 has greatly increased PROCEL's impact. Here we develop scenarios that suggest that continued expansion of PROCEL's programme, including resources that might be drawn through clean development mechanism (CDM) projects, to meet projected PROCEL targets over the next two decades could avoid approximately one-third of the GHG emissions from the Brazilian power sector. This contribution demonstrates the significant global environmental benefits of PROCEL in addition to national benefits of this innovative programme.     

The impact of technology availability on the timing and costs of emission reductions for achieving long-term climate targets

While most long-term mitigation scenario studies build on a broad portfolio of mitigation technologies, there is quite some uncertainty about the availability and reduction potential of these technologies. This study explores the impacts of technology limitations on greenhouse gas emission reductions using the integrated model IMAGE. It shows that the required short-term emission reductions to achieve long-term radiative forcing targets strongly depend on assumptions on the availability and potential of mitigation technologies. Limited availability of mitigation technologies which are relatively important in the long run implies that lower short-term emission levels are required. For instance, limited bio-energy availability reduces the optimal 2020 emission level by more than 4 GtCO₂eq in order to compensate the reduced availability of negative emissions from bioenergy and carbon capture and storage (BECCS) in the long run. On the other hand, reduced mitigation potential of options that are used in 2020 can also lead to a higher optimal level for 2020 emissions. The results also show the critical role of BECCS for achieving low radiative forcing targets in IMAGE. Without these technologies achieving these targets become much more expensive or even infeasible.     

中国控制和管理氢氟碳化物的机遇与挑战

控制温室气体排放、减缓气候变化已成为国际社会关注的热点,中国作为温室气体排放大国,承受着巨大的国际压力。未来一段时间内,如果按照发达国家的技术路线,中国的氢氟碳化物（HFCs）的生产和消费将快速增长,其排放量将迅速增加。采用低全球增温潜势（GWP）技术及采取减排措施,HFCs领域具有很大减排潜力;将HFCs减排纳入中国减排温室气体的整体战略中,对推进国家水平的温室气体减排将作出重要贡献。当前,中国面临着重要机遇,比如针对含氟温室气体相对完备的履约机制可保证一定的减排技术转让和资金支持,履约行动将促进相关行业的节能减排与技术创新等;同时中国也面临着挑战,比如HFCs的巨大消费需求及其排放量的迅速增长,尤其是HFCs替代技术存在局限性等。     

National contributions to climate change mitigation from agriculture: allocating a global target

Globally, agriculture and related land use change contributed about 17% of the world’s anthropogenic GHG emissions in 2010 (8.4 GtCO₂e yr^?1), making GHG mitigation in the agriculture sector critical to meeting the Paris Agreement’s 2°C goal. This article proposes a range of country-level targets for mitigation of agricultural emissions by allocating a global target according to five approaches to effort-sharing for climate change mitigation: responsibility, capability, equality, responsibility-capability-need and equal cumulative per capita emissions. Allocating mitigation targets according to responsibility for total historical emissions or capability to mitigate assigned large targets for agricultural emission reductions to North America, Europe and China. Targets based on responsibility for historical agricultural emissions resulted in a relatively even distribution of targets among countries and regions. Meanwhile, targets based on equal future agricultural emissions per capita or equal per capita cumulative emissions assigned very large mitigation targets to countries with large agricultural economies, while allowing some densely populated countries to increase agricultural emissions. There is no single ‘correct’ framework for allocating a global mitigation goal. Instead, using these approaches as a set provides a transparent, scientific basis for countries to inform and help assess the significance of their commitments to reducing emissions from the agriculture sector.

Key policy insights

• Meeting the Paris Agreement 2°C goal will require global mitigation of agricultural non-CO₂ emissions of approximately 1 GtCO₂e yr^?1 by 2030.

• Allocating this 1 GtCO₂e yr^?1 according to various effort-sharing approaches, it is found that countries will need to mitigate agricultural business-as-usual emissions in 2030 by a median of 10%. Targets vary widely with criteria used for allocation.

• The targets calculated here are in line with the ambition of the few countries (primarily in Africa) that included mitigation targets for the agriculture sector in their (Intended) Nationally Determined Contributions.

• For agriculture to contribute to meeting the 2°C or 1.5°C targets, countries will need to be ambitious in pursuing emission reductions. Technology development and transfer will be particularly important.

     

Emissions of Nitrous Oxide and Methane from Conventional and Alternative Fuel Motor Vehicles

This paper provides estimates of emissions of two important but often not well-characterized greenhouse gas (GHG) emissions related to transportation energy use: methane (CH₄) and nitrous oxide (N₂O). The paper focuses on emissions of CH₄ and N₂O from motor vehicles because unlike emissions of CO₂, which are relatively easy to estimate, emissions of CH₄ and N₂O are a function of many complex aspects of combustion dynamics and of the type of emission control systems used. They therefore cannot be derived easily and instead must be determined through the use of published emission factors for each combination of fuel, end-use technology, combustion conditions, and emission control system. Furthermore, emissions of CH₄ and N₂O may be particularly important with regard to the relative CO₂-equivalent GHG emissions of the use of alternative transportation fuels, in comparison with the use of conventional fuels. By analyzing a database of emission estimates, we develop emission factors for N₂O and CH₄ from conventional vehicles, in order to supplement recent EPA and IPCC estimates, and we estimate relative emissions of N₂O and CH₄ from different alternative fuel passenger cars, light-duty trucks, and heavy-duty vehicles.