Land restoration in food security programmes: synergies with climate change mitigation

Food-insecure households in many countries depend on international aid to alleviate acute shocks and chronic shortages. Some food security programmes (including Ethiopia’s Productive Safety Net Program–PSNP – which provides a case study for this article) have integrated aid in exchange for labour on public works to reduce long-term dependence by investing in the productive capacity and resilience of communities. Using this approach, Ethiopia has embarked upon an ambitious national programme of land restoration and sustainable land management. Although the intent was to reduce poverty, here we show that an unintended co-benefit is the climate-change mitigation from reduced greenhouse gas (GHG) emissions and increased landscape carbon stocks. The article first shows that the total reduction in net GHG emissions from PSNP’s land management at the national scale is estimated at 3.4 million?Mg?CO₂e?y^?1 – approximately 1.5% of the emissions reductions in Ethiopia’s Nationally Determined Contribution for the Paris Agreement. The article then explores some of the opportunities and constraints to scaling up of this impact.

Key policy insights

• Food security programmes (FSPs) can contribute to climate change mitigation by creating a vehicle for investment in land and ecosystem restoration.

• Maximizing mitigation, while enhancing but not compromising food security, requires that climate projections, and mitigation and adaptation responses should be mainstreamed into planning and implementation of FSPs at all levels.

• Cross-cutting oversight is required to integrate land restoration, climate policy, food security and disaster risk management into a coherent policy framework.

• Institutional barriers to optimal implementation should be addressed, such as incentive mechanisms that reward effort rather than results, and lack of centralized monitoring and evaluation of impacts on the physical environment.

• Project implementation can often be improved by adopting best management practices, such as using productive living livestock barriers where possible, and increasing the integration of agroforestry and non-timber forest products into landscape regeneration.

     

Baseline,leakage and measurement issues: how do forestry and energy projects compare?

Abstract

This paper examines three issues in quantifying project-level emissions reductions (ERs): baseline and additionality determination, leakage assessment, and measurement of net emissions. It finds no systematic differences between land use change and forestry (LUCF) and energy projects in addressing these issues. Rather, the ease of quantification depends on the following:

• ?The level and distribution of direct financial benefits that result from the project, since this is a key determinant of additionality.

• ?The degree to which the project is integrated with a broader physical and economic system, since this determines the amount of leakage.

• ?The internal homogeneity and geographic dispersion of the project components—a key determinant of measurement costs.

These dimensions cut across the energy versus LUCF distinction.     

Resistance to relocation in flood-vulnerable coastal areas: a proposed composite index

The increasing number of coastal floods in recent years in France has resulted in the design of new adaptation principles for the most endangered coastal areas. The aim of the government is to reduce the vulnerability of these areas by relocating property and infrastructure. These measures have, however, come up against considerable opposition from the population concerned. Using a survey of 421 inhabitants of Hyères, a coastal town in the South of France, this article proposes the study of resistance to relocation through the creation of an index for resistance that incorporates attachment to place, residential mobility and risk perception. The results show a correlation for the index and distance from the sea that highlights the existence of conflicting interests with adaptation measures depending upon population categories.

Key policy insights

• In France, although coastal flooding risk is a key issue in numerous populated coastal areas, coastal dwellers show little willingness to relocate.

• Resistance to relocation can be assessed through a composite index integrating place attachment, residential mobility and risk perception.

• Application of such an index shows a correlation between willingness to relocate and distance from the sea.

• Conflicts of interest with adaptation measures also depend on the age of the dwellers, their standard of living and on home ownership.

     

Zero carbon energy system pathways for Ireland consistent with the Paris Agreement

The Paris Agreement is the last hope to keep global temperature rise below 2°C. The consensus agrees to holding the increase in global average temperature to well below 2°C above pre-industrial levels, and to aim for 1.5°C. Each Party’s successive nationally determined contribution (NDC) will represent a progression beyond the party’s then current NDC, and reflect its highest possible ambition. Using Ireland as a test case, we show that increased mitigation ambition is required to meet the Paris Agreement goals in contrast to current EU policy goals of an 80–95% reduction by 2050. For the 1.5°C consistent carbon budgets, the technically feasible scenarios' abatement costs rise to greater than €8,100/tCO₂ by 2050. The greatest economic impact is in the short term. Annual GDP growth rates in the period to 2020 reduce from 4% to 2.2% in the 1.5°C scenario. While aiming for net zero emissions beyond 2050, investment decisions in the next 5–10 years are critical to prevent carbon lock-in.

Key policy insights

• Economic growth can be maintained in Ireland while rapidly decarbonizing the energy system.

• The social cost of carbon needs to be included as standard in valuation of infrastructure investment planning, both by government finance departments and private investors.

• Technological feasibility is not the limiting factor in achieving rapid deep decarbonization.

• Immediate increased decarbonization ambition over the next 3–5 years is critical to achieve the Paris Agreement goals, acknowledging the current 80–95% reduction target is not consistent with temperature goals of ‘well below’ 2°C and pursuing 1.5°C.

• Applying carbon budgets to the energy system results in non-linear CO₂ emissions reductions over time, which contrast with current EU policy targets, and the implied optimal climate policy and mitigation investment strategy.

     

Carbon leakage in aviation policy

ABSTRACT

The inherently global, connected nature of aviation means that carbon leakage from aviation policy does not necessarily behave similarly to leakage from other sectors. We model carbon leakage from a range of aviation policy test cases applied to a specific country (the United Kingdom), motivated by a desire to reduce aviation CO₂ faster than achievable by currently-planned global mitigation efforts in pursuit of a year-2050 net zero CO₂ target. We find that there are two main components to leakage: one related to passenger behaviour, which tends to result in emissions reductions outside the policy area (negative leakage), and one related to airline behaviour, which tends to result in emissions increases outside the policy area (positive leakage). The overall leakage impact of a policy, and whether it is positive or negative, depends on the balance of these two components and the geographic scope used, and varies for different policy types. In our simulations, carbon pricing-type policies were associated with leakage of between +50 and ?150% depending on what is assumed about scope and the values of uncertain parameters. Mandatory biofuel use was associated with positive leakage of around 0–40%, and changes in airport landing costs to promote more fuel-efficient aircraft were associated with positive leakage of 50–150%.

Key policy insights

• Carbon leakage in aviation policy arises from airline responses (typically positive leakage) and passenger responses (typically negative leakage).

• Depending on the geographical scope, policy type and values for uncertain parameters, leakage may be between around ?150 to +150%.

• Of the policies investigated in this study, leakage was typically most negative for carbon pricing and most positive for environmental landing charges.

• Absolute values of leakage are smallest where policies are considered on the basis of all arriving and departing flights.

     

Governance of bioenergy with carbon capture and storage (BECCS): accounting,rewarding, and the Paris agreement

Studies show that the ‘well below 2°C’ target from the Paris Agreement will be hard to meet without large negative emissions from mid-century onwards, which means removing CO₂ from the atmosphere and storing the carbon dioxide in biomass, soil, suitable geological formations, deep ocean sediments, or chemically bound to certain minerals. Biomass energy combined with Carbon Capture and Storage (BECCS) is the negative emission technology (NET) given most attention in a number of integrated assessment model studies and in the latest IPCC reports. However, less attention has been given to governance aspects of NETs. This study aims to identify pragmatic ways forward for BECCS, through synthesizing the literature relevant to accounting and rewarding BECCS, and its relation to the Paris Agreement. BECCS is divided into its two elements: biomass and CCS. Calculating net negative emissions requires accounting for sustainability and resource use related to biomass energy production, processing and use, and interactions with the global carbon cycle. Accounting for the CCS element of BECCS foremost relates to the carbon dioxide capture rate and safe underground storage. Rewarding BECCS as a NET depends on the efficiency of biomass production, transport and processing for energy use, global carbon cycle feedbacks, and safe storage of carbon dioxide, which together determine net carbon dioxide removal from the atmosphere. Sustainable biomass production is essential, especially with regard to trade-offs with competing land use. Negative emissions have an added value compared to avoided emissions, which should be reflected in the price of negative emission ‘credits’, but must be discounted due to global carbon cycle feedbacks. BECCS development will depend on linkages to carbon trading mechanisms and biomass trading.

Key policy insights

• A standardized framework for sustainable biomass should be adopted.

• Countries should agree on a standardized framework for accounting and rewarding BECCS and other negative emission technologies.

• Early government support is indispensable to enable BECCS development, scale-up and business engagement.

• BECCS projects should be designed to maximize learning across various applications and across other NETs.

• BECCS development should be aligned with modalities of the Paris Agreement and market mechanisms.

     

Upholding labour productivity under climate change: an assessment of adaptation options

Changes in labour productivity feed through directly to national income. An external shock, like climate change, which may substantially reduce the productivity of workers is therefore a macroeconomic concern. The biophysical impact of higher temperatures on human performance is well documented. Less well understood are the wider effects of higher temperatures on the aggregate productivity of modern, diversified economies, where economic output is produced in contexts ranging from outdoor agriculture to work in air-conditioned buildings. Working conditions are at least to some extent the result of societal choices, which means that the labour productivity effects of heat can be alleviated through careful adaptation. A range of technical, regulatory/infrastructural and behavioural options are available to individuals, businesses and governments. The importance of local contexts prevents a general ranking of the available measures, but many appear cost-effective. Promising options include the optimization of working hours and passive cooling mechanisms. Climate-smart urban planning and adjustments to building design are most suitable to respond to high base temperature, while air conditioning can respond flexibly to short temperature peaks if there is sufficient cheap, reliable and clean electricity.

Key policy insights

• The effect of heat stress on labour productivity is a key economic impact of climate change, which could affect national output and workers’ income.

• Effective adaptation options exist, such as shifting working hours and cool roofs, but they require policy intervention and forward planning.

• Strategic interventions, such as climate-smart municipal design, are as important as reactive or project-level adaptations.

• Adaptation solutions to heat stress are highly context specific and need to be assessed accordingly. For example, shifting working hours could be an effective way of reducing the effect of peak temperatures, but only if there is sufficient flexibility in working patterns.

     

Why does emissions trading under the EU Emissions Trading System (ETS) not affect firms’ competitiveness? Empirical findings from the literature

Environmental policies may have important consequences for firms’ competitiveness or profitability. For the European Union Emissions Trading System (EU ETS) the empirical literature documents that significant emissions reductions have resulted from it. Surprisingly, however, the literature shows that there have been hardly any concurrent negative effects on firms’ competitiveness during the first two phases of the scheme (2005–2012). We show that the main explanations for the absence of negative impacts on competitiveness are a large over-allocation of emissions allowances leading to a price drop and the ability of firms to pass costs onto consumers in some sectors. Cost pass-through combined with free allocation, in turn, partly generated windfall profits. In addition, the relatively low importance of energy costs indicated by their average share in the budgets of most manufacturing industries may have limited the impact of the EU ETS. Finally, small but significant stimulating effects on innovation have been found so far. Several factors suggest that over-allocation is likely to remain substantial in the upcoming periods of the scheme. Therefore, we expect to see no negative competitiveness effects from the EU ETS in Phases III and IV (2013–2030).

Key policy insights

• Empirical literature on the EU ETS shows that there have been hardly any effects on firms’ competitiveness or profitability.

• One main explanation is a large over-allocation of emissions allowances leading to a price drop. This reduced incentives for innovation.

• Moreover, firms were able to pass costs on to consumers in some sectors which partly generated windfall profits.

• Innovation effects have so far been small but positive.

• We expect to see no negative competitiveness effects on regulated firms in the near future suggesting that no further reliefs for regulated firms are required.

     

Piecemeal or combined? Assessing greenhouse gas mitigation spillovers in US forest and agriculture policy portfolios

ABSTRACT

Forest and agricultural sector response to comprehensive climate policy is well represented in the literature. Less analysis has been devoted to piecemeal solutions. We use the Forest and Agriculture Sector Optimization Model with Greenhouse Gases (FASOMGHG) to project the individual and combined effect of three existing U.S. Department of Agriculture programmes with potential to increase greenhouse gas (GHG) mitigation. We find that a combined policy scenario may achieve greater mitigation than individual constituent programmes, suggesting the possibility of complementary spillover effects in some periods. Mitigation varies over time, however, and some periods experience net emissions as markets and management practices respond to initial policy shocks. The regional distribution of GHG mitigation also varies between policy scenario. Differences in the magnitude and imputed cost of mitigation under each scenario, generating negative values for some programmes and time periods, reinforces the need to evaluate portfolio design to cost-effectively achieve near-term GHG mitigation.

Key policy insights

• Increased near-term GHG mitigation in the forest and agriculture sectors in the US may be possible by expanding or refocusing the emphasis of existing programmes.

• Implementing several such forest and agricultural programmes simultaneously may lead to greater GHG mitigation than when implemented separately, indicating the possibility of positive spillover effects.

• Programmes targeted to agricultural management may hold outsized potential to achieve near-term GHG mitigation; Policies aimed at influencing land use conversion appear to be more vulnerable to reversion and subject to larger inter-annual swings.

• The staged implementation of programmes could also be useful, helping to encourage increased mitigation (or the retention of already achieved mitigation) over time as markets re-equilibrate to initial shocks.

• Though the particular scenarios assessed here are unique to the US, our findings may be applicable to other locations outside the US where land management is influenced by individual market actors and there is competition between forest and agricultural land uses.

     

Reducing fugitive methane emissions from the North American oil and gas sector: a proposed science-policy framework

The shale gas boom in the United States spurred a shift in electricity generation from coal to natural gas. Natural gas combined cycle units emit half of the CO₂ to produce the same energy as a coal unit; therefore, the market trend is credited for a reduction in GHG emissions from the US power sector. However, methane that escapes the natural gas supply chain may undercut these relative climate benefits. In 2016, Canada, the United States and Mexico pledged to reduce methane emissions from the oil and natural gas sector 40–45% from 2012 levels by 2025. This article reviews the science-policy landscape of methane measurement and mitigation relevant for meeting this pledge, including changes in US policy following the 2016 presidential election. Considerable policy incoherence exists in all three countries. Reliable inventories remain elusive; despite government and private sector research efforts, the magnitude of methane emissions remains in dispute. Meanwhile, mitigation efforts vary significantly. A framework that integrates science and policy would enable actors to more effectively inform, leverage and pursue advances in methane measurement and mitigation. The framework is applied to North America, but could apply to other geographic contexts.

Key policy insights

• The oil and gas sector’s contribution to atmospheric methane concentrations is becoming an increasingly prominent issue in climate policy.

• Efforts to measure and control fugitive methane emissions do not presently proceed within a coherent framework that integrates science and policy.

• In 2016, the governments of Canada, Mexico and the United States pledged to reduce methane emissions from the oil and natural gas sector 40–45% from 2012 levels by 2025.

• The 2016 presidential election in the United States has halted American progress at the federal level, suggesting a heavier reliance on industry and subnational efforts in that country.

• Collectively or individually, the countries, individual agencies, or private stakeholders could use the proposed North American Methane Reduction framework to direct research, enhance monitoring and evaluate mitigation efforts, and improve the chances that continental methane reduction targets will be achieved.

     

Climate change and the agricultural sector in Ireland: examining farmer awareness and willingness to adopt new advisory mitigation tools

Agriculture is responsible for the bulk of Ireland’s greenhouse gas (GHG) emissions. However, the potential to mitigate some of these emissions through the adoption of more efficient farm management practices may be hampered by farmers’ awareness and attitude towards climate change and agriculture’s role in contributing to GHG emissions. This paper presents results from a survey of 746 Irish farmers in 2014, with a view to understanding farmers’ awareness of, and attitudes to, climate change and GHG emissions. Survey results show that there was a general uncertainty towards a number of questions related to agricultural GHG emissions, e.g. if tilling of land causes GHG emissions, and that farmers were reluctant to take action to reduce GHG emissions on their farm. To further explore farmers’ attitudes towards climate change, a multinomial logit model was used to examine the socio-economic factors that affect farmers’ willingness to adopt an advisory tool that would show the potential reduction in GHG emissions from the adoption of new technologies. Results show that farmers’ awareness of human-induced global climate change was positively related to the tool’s adoption.

Key policy insights

• Irish farmers are generally not sufficiently aware of the impact of their activities on climate change.

• A quarter of farmers believed that climate change will only impact on their business in the long-term; such an attitude may lead to a reluctance amongst these farmers to adopt management practices that reduce GHG emissions.

• Awareness of climate change affects positively the adoption of new tools to reduce GHG emissions on farmers’ farms.

• IT literacy affects willingness to adopt new tools to address GHG emissions.

• Reception of agri-environmental advice can have a positive influence on farmers’ willingness to adopt new GHG emission abatement tools.

• Farmers in receipt of environmental subsidies are more likely to adopt new abatement tools, either because they are more environmentally conscious or because the subsidy raised their environmentally consciousness.

• Willingness to adopt differs between different farm enterprises; operating dairy enterprise increases the willingness to adopt new advisory mitigation tools.

     

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.

     

The Arctic surface energy budget as simulated with the IPCC AR4 AOGCMs

Ensembles of simulations of the twentieth- and twentyfirst-century climate, performed with 20 coupled models for the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment, provide the basis for an evaluation of the Arctic (70°–90°N) surface energy budget. While the various observational sources used for validation contain differences among themselves, some model biases and across-model differences emerge. For all energy budget components in the twentieth-century simulations (the 20C3M simulation), the across-model variance and the differences from observational estimates are largest in the marginal ice zone (Barents, Kara, Chukchi Seas). Both downward and upward longwave radiation at the surface are underestimated in winter by many models, and the ensenmble mean annual net surface energy loss by longwave radiation is 35 W/m², which is less than for the NCEP and ERA40 reanalyses but in line with some of the satellite estimates. Incoming solar radiation is overestimated by the models in spring and underestimated in summer and autumn. The ensemble mean annual net surface energy gain by shortwave radiation is 39 W/m², which is slightly less than for the observational based estimates, In the twentyfirst-century simulations driven by the SRES A2 scenario, increased concentrations of greenhouse gasses increase (average for 2080–2100 minus average for 1980–2000 averages) the annual average ensemble mean downward longwave radiation by 30.1 W/m². This was partly counteracted by a 10.7 W/m² reduction in downward shortwave radiation. Enhanced sea ice melt and increased surface temperatures increase the annual surface upward longwave radiation by 27.1 W/m² and reduce the upward shortwave radiation by 13.2 W/m², giving an annual net (shortwave plus longwave) surface radiation increase of 5.8 W/m² , with the maximum changes in summer. The increase in net surface radiation is largely offset by an increased energy loss of 4.4 W/m² by the turbulent fluxes.     

Combining low-carbon economic development and oil exploration in Brazil? An energy–economy assessment

Brazil's nationally determined contribution (NDC) pledged under the Paris Agreement has marked a new stage in its climate policy towards strengthening low-carbon economic development beyond the recent drastic cuts in emissions from deforestation. Brazil especially means to limit oil consumption driven by future economic growth and to increase energy efficiency and biofuel use in the transport sector. On the other hand, Brazil still aspires to become a major petroleum province given its huge reserves of ‘pre-salt’ oil. This article aims to clarify under what conditions low-carbon economic development and oil exploration can possibly be combined in Brazil and what would be the energy system, environmental and macroeconomic implications of enabling policies for doing so. To address these questions, an energy–economy computable general equilibrium (CGE) model of the Brazilian economy is used to simulate alternative scenarios up to 2030. The results first show that implementing the most recent energy plans, which take into account the new economic reality in Brazil, should lead to over 20% lower domestic CO₂ emissions in 2030 than the indicative NDC target, and to the export of the bulk of newfound crude oil. Second, with the same level of oil production, deeper domestic decarbonization, triggered by additional carbon pricing and sustainable efficiency measures, appears achievable with very small gross domestic product (GDP) loss and maximum oil exports, while being aligned with a 2°C emission pathway. However, (i) extra oil exports may induce net additional emissions outside Brazil and be seen as a perverse incentive and (ii) the economic growth strategy based on high oil exports may hinder the necessary diversification of the Brazilian economy.

Key policy insights

• Low-carbon development goals will strongly interact with oil policy in Brazil.

• The 2030 NDC target should be easy to achieve considering the new economic reality in Brazil.

• Deeper domestic decarbonization is achievable with very limited GDP loss and significant oil exports, while being aligned with a 2°C emission pathway.

• A broad strategic vision is needed to reconcile climate policy, energy policy and other economic development objectives.

     

Measuring the adaptation goal in the global stocktake of the Paris Agreement

The Paris Agreement establishes a global goal on adaptation which will be assessed through the global stocktake, the first attempt by the international climate change regime to measure collective progress on adaptation. This policy analysis identifies four main challenges to designing a meaningful assessment. These are: designing a system that can aggregate results; managing the dual mandate of reviewing collective progress and informing the enhancement of national level actions; methodological challenges in adaptation; and political challenges around measurement. We propose a mixed-methods approach to addressing these challenges, combining short-term needs for reporting with longer-term aims of enhancing national adaptation actions.

Key policy insights

• Broad domains of adaptation activity could be identified within each of the objectives of the adaptation goal and progress could be measured and aggregated through simple scorecards.

• The goal should have both process and outcome indicators as well as some narrative linking activities to outcomes over time.

• Reporting could be a compilation of national data using qualitative and quantitative sources, aligning with the global stocktake’s aim of enhancing national actions over time and reducing immediate reporting burdens.

• There would be a complementary role at least in the short term for an expert assessment of priority areas.

     

‘This was different’: transferring climate mitigation knowledge practices south to south with the MAPS programme

This article is a case study of the Mitigation Action Plans and Scenarios programme (MAPS) which worked in climate change mitigation and development policy-making spaces in Brazil, Chile, Colombia, Peru and South Africa from 2010–2015. The MAPS programme was focused on achieving change in the commitment of southern decision makers to mitigate against climate change through government-mandated, stakeholder processes which generated evidence making a case for a low carbon transition. The article draws on reflective materials generated in the last year of the project. The value of MAPS was found in the well-tested data and evidence-driven scenario building; locally specific and country-driven processes; a culture of knowledge sharing through facilitated communities of practice; the role of professional facilitation in process design and in conducting stakeholder processes; shared experiences of working in the south, and particularly with cultural differences and conflict; and new ways of working south–south with each other, and with donors. These MAPS programme experiences stood in contrast to previous north–south knowledge sharing involvements. Theoretically, the article asks whether MAPS represents southern theory-making (after Connell, 2007). It concludes that through the action-oriented, facilitated co-production way of working on climate change in the south, MAPS represents an understanding of southern theory that challenges the orthodoxy of global knowledge production. MAPS emphasizes the need for theorizing in, and of, the south, and connecting policy and practices.

Key policy insights

• Climate change mitigation work in the south faces poorly resourced, fragmented, under-capacitated governance structures, often in conflicted settings.

• Given conflicted settings, skilled facilitation is an integral part of knowledge-making processes.

• Strong local communities of practice, who undertake learning-by-doing and are connected to ‘stubborn’ development realities, are also key to knowledge-making.

• Intentional co-production of data and evidence enable peer-to-peer learning and the trust-building which is vital to strong communities of practice.

     

The cost of achieving South Africa’s ‘fair share’ of global climate change mitigation

Global climate change mitigation action is hampered by systematic under-assessment of national ‘fair shares’, largely on the basis of perceived national interests. This paper aims to inform discussions centred on South Africa’s nationally determined contribution (NDC) by estimating (1) emissions reduction pathways for the country using the Climate Equity Reference Calculator (CERC) assuming a maximum 2°C aggregate warming target and (2) the likely economy-wide net mitigation costs or savings associated with reaching these pathways if known lower-cost mitigation measures, identified through the national mitigation potential analysis, are prioritised. The cumulative net savings associated with achieving the CERC ‘fair share’ emissions pathway, assuming the moderate use of low carbon power generation measures, would reach $5.3 billion by 2030. Net savings could be substantially greater reaching $46.8 billion by 2030 assuming power generation focuses on moving towards full decarbonisation. An unconditional commitment to the mitigation action implied by the ‘fair share’ emissions pathway therefore seems reasonable and prudent purely from the point of view of net country-wide savings. Only if power generation moves towards full decarbonisation would there be a reasonable chance of achieving the more ambitious CERC domestic emissions pathway. However, the significant additional cost associated with achieving the domestic emissions pathway should be conditional on international assistance.

Key policy insights

• South Africa can only achieve its ‘fair share’ of the global mitigation effort if greater use is made of renewable energy options, and can realise significant net savings if it does so.

• Further emissions reductions would incur costs and require significant upscaling of the share of renewable energy and full implementation of all non-power generation mitigation measures available.

• Committing to this further mitigation action contingent on international finance would both strengthen the nation’s position in climate negotiations and support the provision of finance for those vulnerable developing nations that bear little or no responsibility for climate change.

     

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 impact of compensatory measures on public support for carbon taxation: an experimental study in Sweden

This study aims at better understanding how, and to what extent, perceptions of a policy instrument’s distributional effects impact on policy support, focusing on the case of CO₂ taxes on petrol in Sweden. Through a large-scale (N?=?5000) randomized survey experiment with a 2?×?3 factorial design, the extent to which perceptions of fairness determine attitudes to a suggested increase of the Swedish CO₂ tax is explored. Furthermore, the study considers whether these effects change with the level of the suggested tax increase, as well as whether negative sentiments can be alleviated by combining it with a compensatory measure in the shape of a simultaneous income tax cut financed by the revenues from the tax increase. The results show that a higher tax increase is both viewed as more unfair and enjoys weaker support. Furthermore, compensatory measures can be a powerful policy design tool to increase perceptions of the policy as fair, but the effect of compensation on policy support is conditioned by the individual’s left–right ideological position. Whereas people self-identifying to the right react favourably to compensatory measures, people self-identifying to the left become less supportive of a tax increase when combined with a simultaneous cut in income taxes.

Key policy insights

• Perceptions of fairness are highly important for explaining public support for climate policy tools, specifically CO₂ taxes.

• Compensatory measures can be a powerful policy design tool to increase perceptions of the policy as less unfair.

• However, the effect of compensatory measures on policy support is conditioned by ideological position, and only successful among people to the ideological right.

• In contexts dominated by right-wing ideals, a combination of a tax and a compensatory scheme may be a successful route forward towards increased climate policy support.

• In left-oriented contexts the results imply that a CO₂ tax without compensation seems more likely to increase support.

     

Challenges in financing public sector low-carbon initiatives: lessons from private finance for a school district in British Columbia,Canada

Governments are major investors in climate change mitigation, but aversion to public indebtedness has led to reliance on private finance to deliver public assets. Compounding this challenge, financing through Energy Service Contracts is ruled out by accounting rules. With public and traditional private funding avenues closed, government departments have sought contracts that do not disclose the full cost of borrowing, such as the Public–Private Partnership (PPP) described in this case study. We unpack the utility contract filed with the provincial regulator to show that circumventing budgetary constraints cost the Delta School Board (DSB) 8.75% per annum on borrowed private funds while public finance would have cost 4%pa. All levels of the public sector are keen to play their role in climate mitigation. Climate policy is about not passing our burden of unbridled fossil fuel use and greenhouse gas emissions to future generations. If we do not exempt public sector capital investments for decarbonization from deficit regulations, we risk passing an unnecessary economic burden to future generations.

Key policy insights

• Transition to a low-carbon economy requires public sector investments that exceed budget deficit regulations and political aversion in many jurisdictions;

• Private–Public Partnerships are currently viewed as the solution to this self-imposed fiscal constraint;

• PPPs without clear performance targets or contractual templates will expose less experienced public sector investors to high costs and emissions above expectations.