The global carbon market-mechanism landscape: pre and post 2020 perspectives

With market-mechanisms likely to achieve emission reductions at lower cost than alternative approaches, there is a presumption that they will be embraced by those who are serious about achieving ambitious reductions. Two broad messages exist; there is already considerable activity and some ambition in many parts of the world – a fragmented but embryonic ‘global’ trading landscape is emerging – and there are efforts at UN level to provide a unifying framework for these bottom-up developments. The topography of interest and response varies considerably across groups of countries, and there have been delays in making progress on a unifying framework. This article analyses the current carbon market landscape in terms of market dynamics and market-mechanism developments whilst undertaking an examination of how climate change negotiations under the United Nations Framework Convention on Climate Change (UNFCCC) is shaping the future carbon market landscape. This work shows that the combination of existing, emerging, and potential carbon market-mechanisms can be regarded as an emerging pre-2020 fragmented ‘global’ carbon market landscape based on differing bottom-up market based approaches. One outcome of a 2015 Climate Agreement could be a post-2020 global carbon market which would include new domestic and international market initiatives such as the Framework for Various Approaches and New Market Mechanism, together with reformed Kyoto mechanisms.

Policy relevance

With the 2015 Agreement under the United Nations Framework Convention on Climate Change (UNFCCC) expected to see Parties commit to ambitious mitigation commitments, post-2020 could see significant Party (& industry) investment in market-mechanisms and associated emissions units in an effort to achieve some of the abatement cost minimization offered by market approaches. This article is written for those who have an interest in understanding what is happening – and what is not happening – as regards the emergence of market-related approaches to GHG mitigation globally in the run up to the 21st Conference of the Parties (COP) of the UNFCCC which meets in Paris in December 2015, and what could be the shape of things to come post-2020.     

Process matters: building a future climate regime with multi-processes

How do current processes in international climate-related institutions affect the architecture of a future climate regime, particularly various international negotiating processes related to climate change? A plausible image of future climate regime is developed to address this question. Three plausible scenarios are described for the next decade using the scenario-planning approach. Based on this, the scope for an internationally acceptable climate regime beyond 2012 is developed. The current processes under the UNFCCC, the Kyoto Protocol, and those outside the UN arena are encapsulated into three scenarios. Each scenario has a set of relatively preferable types of commitments, which differ from each other. Each process is likely to result in the establishment of one particular institution. Linkages are developed between the three institutions so that the climate regime as a whole will be environmentally effective. The three institutions are likely to converge in the long run, as countries' views on both climate change and a future climate regime converge.     

Locating international REDD+ power relations: Debating forests and trees in international climate negotiations

The Reduction of Deforestation and Forest Degradation initiative (REDD+) was initially hailed widely as a smart and cost-effective way to mitigate climate change and has moved quickly compared to other strands of the United Nations Framework Convention on Climate Change (UNFCCC) negotiations. Much of the initiative’s original appeal – and a good deal of subsequent controversy around it – relates to framing the world’s tropical forests as carbon sinks and compensating developing countries that manage to reverse or avoid deforestation. REDD+ negotiations can thus be seen a site where the standard divisions between Annex 1 and non-Annex 1 (‘developed’ and ‘developing’) were being challenged and interrogated by the negotiating parties and the broader network of actors around the climate regime. This article suggests that such complex and changing global governance policy fields need to be analysed as ‘places’ in their own right, populated by actors engaged in field-specific power relations that may not reflect international hierarchies or power relations manifested in other international settings. Based in a unique set of interviews supplemented by primary data analysis, this article unpacks the power relations of REDD+ negotiations by examining how those involved seek to assume competence, designate and recognize leadership, and shape outcomes. In tracing the dynamics of claiming competence, the ‘competition’ between two disciplinary milieus around forests as an international policy object and also delegates’ shifting between reliance on expert knowledge and political ‘know-how’ in the negotiations themselves are identified. To understand the politics of recognition – that is to have a claim to competence or position acknowledged by others – the perceived qualities and resources of recognized leadership are examined and the absence of global superpowers amongst REDD+ leadership is problematized and discussed. Finally, in terms of wielding influence over outcomes, the fate of two quite similar ideas – one that has become incorporated into REDD+ methodology and another that is failing to be – further illustrate how the field is marked by internal power practices and that not all actors are equally well-positioned to achieve desired outcomes.     

Classification of hydrological regimes of northern floodplain basins (Peace–Athabasca Delta,Canada) from analysis of stable isotopes (δ18O, δ2H) and water chemistry

We used stable isotopes (δ¹⁸O and δ²H) and water chemistry to characterize the water balance and hydrolimnological relationships of 57 shallow aquatic basins in the Peace‐Athabasca Delta (PAD), northern Alberta, Canada, based on sampling at the end of the 2000 thaw season. Evaporation‐to‐inflow ratios (E/I) were estimated using an isotope mass‐balance model tailored to accommodate basin‐specific input water compositions, which provided an effective, first‐order, quantitative framework for identifying water balances and associated limnological characteristics spanning three main, previously identified drainage types. Open‐drainage basins (E/I < 0·4; n = 5), characterized by low alkalinity, low concentrations of nitrogen, dissolved organic carbon (DOC) and ions, and high minerogenic turbidity, include large, shallow basins that dominate the interior of the PAD and experience frequent or continuous river channel connection. Closed‐drainage basins (E/I ≥ 1·0; n = 16), in contrast, possess high alkalinity and high concentrations of nitrogen, DOC, and ions, and low minerogenic turbidity, and are located primarily in the relict and infrequently flooded landscape of the northern Peace sector of the delta. Several basins fall into the restricted‐drainage category (0·4 # E/I < 1·0; n = 26) with intermediate water chemistries and are predominant in the southern Athabasca sector, which is subject to active fluviodeltaic processes, including intermittent flooding from riverbank overflow. Integration of isotopic and limnological data also revealed evidence for a new fourth drainage type, mainly located near the large open‐drainage lakes that occupy the central portion of the delta but within the Athabasca sector (n = 10). These basins were very shallow (<50 cm deep) at the time of sampling and isotopically depleted, corresponding to E/I characteristic of restricted‐ and open‐drainage conditions. However, they are limnologically similar to closed‐drainage basins except for higher conductivity and higher concentrations of Ca²⁺ and Na⁺, and lower concentrations of SiO₂ and chlorophyll c. These distinct features are due to the overriding influence of recent summer rainfall on the basin water balance and chemistry. The close relationships evident between water balances and limnological conditions suggest that past and future changes in hydrology are likely to be coupled with marked alterations in water chemistry and, hence, the ecology of aquatic environments in the PAD. Copyright © 2006 John Wiley & Sons, Ltd.     

A new look at climate equity in the UNFCCC

Equity has been at the core of the global climate debate since its inception over two decades ago, yet the current negotiations toward an international climate agreement in 2015 provide a new and critical opportunity to make forward progress on the difficult web of equity issues. These negotiations and the discussions about equity are taking place in a context that has shifted: all countries will be covered under a new agreement; growing climate impacts are being felt, especially by the most vulnerable; and there is an emergence of new institutions and increasing complexity in the international climate regime. Innovative thinking on equity, including which countries should take action and how, is therefore essential to finalizing an agreement by 2015. A broader, deeper, and more holistic view of equity is necessary, one that sees equity as a multi-dimensional challenge to be solved across all the facets of the international climate process.

Policy relevance

This article is relevant to policy makers following the development of the United Nations Framework Convention on Climate Change (UNFCCC) Ad Hoc Working Group on the Durban Platform as it prepares the way for a new agreement in 2015. The article focuses specifically on the issues most relevant to the debate around equity in the negotiations and how that debate is evolving with the expansion of the UNFCCC. It explains the current state of the negotiations and what issues are on the negotiating table, including the fact that negotiations on equity are now much broader than the mitigation commitments, to include the possible ‘equity reference framework’, concerns relating to adaptation and loss and damage, and the need for ambition in terms of mitigation and finance support.     

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.

     

Searching for Added Value in Simulating Climate Extremes with a High-Resolution Regional Climate Model over Western Canada. II: Basin-Scale Results

We evaluate the capacity of a regional climate model to simulate the statistics of extreme events, and also examine the effect of differing horizontal resolution, at the scale of individual hydrological basins in the topographically complex province of British Columbia, Canada. Two climate simulations of western Canada (WCan) were conducted with the Canadian Regional Climate Model (version 4) at 15 (CRCM15) and 45?km (CRCM45) horizontal resolution driven at the lateral boundaries by global reanalysis over the period 1973–1995. The simulations were evaluated with ANUSPLIN, a daily observational gridded surface temperature and precipitation product and with meteorological data recorded at 28 stations within the upper Peace, Nechako, and upper Columbia River basins. In this work, we focus largely on a comparison of the skill of each model configuration in simulating the 90th percentile of daily precipitation (PR90). The companion paper describes the results for a wider range of temperature and precipitation extremes over the entire WCan domain.

Over all three watersheds, both simulations exhibit cold biases compared with observations, with the bias exacerbated at higher resolution. Although both simulations generally display wet biases in median precipitation, CRCM15 features a reduced bias in PR90 in all three basins in summer and throughout the year in the upper Columbia River basin. However, the higher resolution model is inferior to CRCM45 with respect to rarer heavy precipitation events and also displays high spatial variability and lower spatial correlations with ANUSPLIN compared with the coarser resolution model. A reduction in the range of PR90 biases over the upper Columbia basin is noted when the 15?km results are averaged to the 45?km grid. This improvement is partly attributable to the averaging of errors between different elevation data used in the gridded observations and CRCM, but the sensitivity of CRCM15 to resolved topography is also clear from spatial maps of seasonal extremes. At the station scale, modest but systematic reductions in the bias of PR90 relative to ANUSPLIN are again found when the CRCM15 results are averaged to the 45?km grid. Furthermore, the annual cycle of inter-station spatial variance in the upper Columbia River basin is well reproduced by CRCM15 but not by ANUSPLIN or CRCM45. The former result highlights the beneficial effect of spatial averaging of small-scale climate variability, whereas the latter is evidently a demonstration of the added value at high resolution vis-à-vis the improved simulation of precipitation at the resolution limit of the model.     

Proposal for a poverty-adaptation-mitigation window within the Green Climate Fund

The stakes for alleviating poverty and avoiding unbridled climate change are inextricably linked. Climate change impacts will slow down and may even reverse trends in poverty reduction. The pathways consistent with global warming of no more than 2?°C require strategies for poverty alleviation to make allowance for the constraint of low-carbon development. Existing climate funds have failed to target poverty alleviation as a high-priority strategy for adaptation or as a component of low-carbon development. This article proposes a funding window as part of the Green Climate Fund in order to foster synergies targeting greater satisfaction of basic needs, while making allowance for adaptation and mitigation. This financial mechanism is based on indicators of the satisfaction of basic needs and could respond to the claims of the developing countries, which see alleviating poverty as the first priority in climate negotiations. It defines a country continuum, given that there are poor people everywhere; all developing countries are therefore eligible with a mechanism of this sort.

Policy relevance

The Intergovernmental Panel on Climate Change (IPCC) calls for substantial emissions reductions and adaptation strategies over the next decades to reduce the high risks of severe impacts of climate change over the 21st century. Industrialized countries and developing countries alike recognize the need to mitigate climate change and to adapt to it. But they face many challenges that lead to an ‘emissions gap’ between an emissions level consistent with the 2?°C increase limit and the voluntary pledges that they have made thus far in the climate negotiations (United Nations Environment Programme. (2014). The Emissions Gap Report 2014. A UNEP synthesis report). In this arena, many developing countries underline that their first domestic priority is the satisfaction of basic needs. In the run-up to the next climate negotiations at the 21st Conference of the Parties (COP 21) in Paris, the proposed poverty-adaptation-mitigation funding window could contribute to alleviate the conflict between development and climate goals in developing countries. In this sense, it could spur developing countries to integrate more ambitious emissions limitations pledges into their Intended Nationally Determined Contributions. This could in turn entice industrialized countries to act similarly. In the end, it could pave the way to an ambitious climate agreement in Paris at COP 21.     

The role of NGOs in negotiating the use of biodiversity in marine areas beyond national jurisdiction

In 2004, the UN General Assembly resolved to establish a working group to consider issues pertaining to the conservation and sustainable use of marine biodiversity in areas beyond national jurisdiction (BBNJ). The group met nine times between 2006 and 2015 before concluding its mandate by recommending the development of an international legally binding instrument on BBNJ under the United Nations Convention on the Law of the Sea. Based on in-depth interviews with working group participants, this research examines how NGOs contributed to the working group process. Respondents from government delegations highlighted the usefulness of workshops and side events convened by NGOs, and the role of NGOs in bringing experts on technical issues – particularly marine genetic resources and the sharing of benefits – into the BBNJ negotiations. Respondents from both NGOs and government delegations emphasized the importance of fostering personal relationships in order to ensure a steady and constructive information flow. Social media efforts by NGOs were considered by some government representatives to have occasionally hampered open discussion, although they noted that conditions have improved. The lengthy working group process was marked by substantial fluctuation in participation, particularly within government delegations from developing states. Of 1523 individuals who participated in at least one of the working group meetings, only 45 attended more than half of the meetings, and 80% of these were representing NGOs or highly industrialized countries. Respondents felt that this comparatively small number of individuals provided a source of continuity that was crucial for moving the discussions forward.