Category Archives: News

U.S. environmental groups echo aviation industry's call for ICAO to adopt global emissions cap this year

Environmental Defense Fund and Natural Resources Defense Council today echoed the new call by the International Air Transport Association (IATA), a trade body comprising 240 airlines worldwide, for governments to agree this September on a single global cap on emissions of international flights to take effect in 2020.

NGOs today echoed IATA's call for an agreement this year on a global cap on aviation emissions. Photo credit: Flickr user Mike Miley

The NGOs issued their call in response to a resolution, adopted today at IATA’s annual general meeting in Cape Town, that urges its member airlines to “strongly encourage governments” to adopt such a single global measure at this year’s International Civil Aviation Organisation (ICAO) Assembly.

The resolution gives governments a set of principles on how governments could 1) establish procedures for a single market-based measure, and 2) integrate a single market-based measure as part of an overall package of measures to achieve the industry's goal of having "carbon-neutral growth by 2020."

In a statement today, Annie Petsonk, EDF's International Counsel, said:

IATA has opened the door, now it is time for governments to walk through it this September. This is the signal that governments have been seeking.

Not all the elements offered in IATA’s resolution will fully address aviation’s contribution to climate change, the NGOs cautioned. Our colleagues at Transport & Environment and Aviation Environment Federation have issued their own comments on the resolution, as has Carbon Market Watch and NRDC's Jake Schmidt.

In advance of IATA’s general meeting in Cape Town, 11 global NGOs sent a letter to IATA Director General Tony Tyler calling on IATA to act on market-based measures. The environment, development, community and science groups said in the letter:

To be credible, such measures must include targets compatible with climate science, strong provisions to ensure the environmental credibility of the traded units, limited access to offsets and strict provisions to ensure compliance.

Aviation is already the world's seventh largest polluter, and if emissions from the industry are left unregulated, they're expected to double by 2030.

Also posted in Aviation |: | 4 Responses

World's Carbon Markets: EDF, IETA launch online resource on emissions trading programs

While Washington is stuck in gridlock, other jurisdictions around the world are moving forward on climate policy.

Market-based approaches to cutting carbon are in place in jurisdictions accounting for nearly 10% of the world’s population. Above: areas shaded blue have emissions trading programs that are already operating; areas in green have programs that are launching or being considered.

Market-based approaches to cutting carbon are already in place in jurisdictions accounting for nearly 10% of the world’s population and more than a third of its GDP. Many more jurisdictions are either moving ahead with market-based measures, or actively considering them.

As interest grows around the world, policymakers are increasingly seeking information about the range of existing and proposed initiatives.

In response, EDF has partnered with the International Emissions Trading Association (IETA), a trade association that represents businesses involved in carbon trading and climate finance, to launch The World's Carbon Markets: A case study guide to emissions trading.

The online resource provides detailed information about key design elements and unique features of 18 emissions trading programs that are operating or launching around the world.

EDF has also put together a quick reference chart that makes comparing the 18 programs even faster and easier.

Growing interest in emissions trading

Market-based policies are a proven way to limit carbon pollution and channel capital and innovation into clean energy, helping to avert the catastrophic consequences of climate change.

While emissions trading programs around the world, like the ones we have looked at in detail, vary in their features, they all share the key insight that well-designed markets can be a powerful tool in achieving environmental and economic progress.

The countries, states, provinces and cities highlighted in this report, which are moving ahead with strong action on climate change, constitute a vital and dynamic world of “bottom-up” actions that complement multilateral efforts such as the ongoing United Nations climate negotiations.  Jurisdictions considering market-based approaches can use this new resource to learn from their growing number of peers already headed in that direction.

We expect the site will also be of value for policy makers, academics, analysts, journalists, and colleagues in the NGO community and beyond.

If you find the information in The World’s Carbon Markets case studies helpful, please share edf.org/worldscarbonmarkets with your networks.

Also posted in Economics, Emissions trading & markets |: | 3 Responses

EDF releases new blog for all our expert voices

EDF’s Climate Talks blog keeps you updated on major international climate issues. We provide thoughtful analysis on international climate negotiations and important climate policy developments around the world, so you can stay informed. However, we know you may have a broad interest in environmental issues.

That’s why we wanted to share with you Environmental Defense Fund’s new flagship blog, EDF Voices. EDF Voices collects stories, ideas and arguments from all of our EDF expert voices in one place. Our thought leaders use this space to weigh in on all sorts of environmental issues, from stories on how farmers in India are adapting to climate change to ideas on how to save the Amazon and its indigenous peoples.

We hope you like what you read on our new EDF Voices blog and become a subscriber.

Also posted in Deforestation, India, Indigenous peoples, Other |: | Leave a comment

Mind the gap: Airlines can't meet emissions reductions goals without global market-based measure, report finds

Greenhouse gas emissions from airplanes are no small matter: if the aviation industry were a country, it would be the seventh largest emitter of carbon dioxide in the world – and a new report shows us the worst is yet to come.

The report released today out of Manchester Metropolitan University shows international aviation emissions are projected to increase by anywhere from a substantial 50% to a whopping 500%, and that means the aviation industry won’t be able to get anywhere near meeting its own modest commitments to reducing its emissions – unless it adopts a global market-based measure.

The aviation industry has voluntarily committed to achieve no net increase in emissions from 2020 onward and to halve its emissions by 2050 from its 2005 levels through, it says, efficiency improvements including improved air traffic management, on-board technologies and biofuels.

However, the study, from Professor of Atmospheric Science and Director of Centre for Aviation, Transport, and the Environment (CATE) David Lee, Ph.D., shows emissions from the sector are projected to roughly triple, and make it impossible for airlines to meet their own commitments. Even with speculatively optimistic scenarios for such efficiency improvements, Lee found:

 None of the measures, or their combinations, for any growth scenario managed to meet the 2020 carbon-neutral goal, the 2005 stabilization of emissions goal, or the 2005-10% stabilization of emissions goal at 2050.

The maximum reductions over [business-as-usual] technology and operational improvements were clearly achieved by the extension of the existing [market-based measures] out to 2050. (page 22)

This means the aviation industry is now facing a huge gap between emissions it can reduce through efficiency improvements and its goal of carbon neutral growth from 2020.

Just take a look at this telling figure from Lee's report, which shows that even under the most optimistic technological scenarios for improving the efficiency of international aviation, emissions for the years 2006-2050 are expected to increase dramatically:

As Figure A1 from the report shows, even under the most optimistic technological scenarios for improving the efficiency of international aviation, emissions for the years 2006-2050 are expected to increase dramatically. The most aggressive uptake of operational and other technologies as well as biofuels still yields a yawning gap between projected emissions (lower boundary of green shaded area) and the emissions targets on the table, whether those are the targets proposed by governments (horizontal pink lines) or by the industry itself (horizontal grey ladder). Source

So, how can the aviation industry bridge the gap?

Industry spokespeople assert that from 2021, this gap could be filled through a market-based measure. However, the industry also seems to want to delay developing any serious global market-based approach until the gap is looming to be filled.

Lee sees the handwriting on the wall: there is no other way to fill the emissions gap than market-based measures. Our European colleagues at Transport & Environment agree, saying:

The only remaining means to bridge this emissions gap would be to extend market based measures like emissions trading on a global basis.

This measure already has support from EU Climate Commissioner Connie Hedegaard, as well, who said last week in a trip to the United States, that that "we of course want a global, market-based mechanism" for reducing aviation emissions.

The gap will need to be filled, and the time to construct the gap-filling mechanism is now. Lee’s study makes crystal clear the futility of waiting until 2021 to construct the market-based measure, as the airlines have advocated. If airlines simply delay dealing with the issue until 2021, when demand for gap-fillers takes off, they risk substantially higher prices for filling those gaps. And in an industry famous for its thin profit margins, delay – and its attendant higher costs – really isn’t a welcome option.

Airlines that want the flexibility to determine how best to meet the gap – for example, those that want to begin saving emissions now, in order to draw on those reductions for the future – ought to throw their weight behind the development of a global market-based mechanism in the International Civil Aviation Organization (ICAO).

Airlines, countries — including the United States – and environmental groups have all agreed aviation emissions should be addressed in ICAO, so we’ll be looking to the Administration to reach a global agreement, and to reach it quickly.

Also posted in Aviation |: | 1 Response

EDF, environmental groups call for Secretary of State Kerry to make climate top priority

Environmental Defense Fund joined dozens of organizations today in calling for newly confirmed U.S. Secretary of State John Kerry to “spur bold and immediate action” on climate change.

Dozens of environmental, development and faith-based organizations are urging Secretary of State Kerry to make climate a top priority of his international agenda. Image source

The letter to Secretary Kerry, signed by 60 environmental, development and faith-based organizations, says such leadership “couldn’t be more urgent.”

Climate change threatens our planet, our security, the health of our families, and the fate of communities and nations throughout the world. It is the greatest challenge of our time and our response will leave an historic legacy here in the U.S. and abroad.

With Secretary Kerry’s leadership, the groups said, the United States could

play a critical role in reducing climate change, promoting global stability and human security, creating economic opportunities for U.S. businesses and workers, helping to alleviate global poverty, protecting past U.S. development investments, complementing global health and food security efforts, protecting critical forest areas and biodiversity, ensuring significant cost-savings through disaster preparedness measures, and better enabling the United States to achieve its other diplomatic and national security objectives.

For more information, you can read the full letter to Secretary Kerry and see the statement from EDF President Fred Krupp on Secretary Kerry in advance of his confirmation last week.

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EDF applauds nomination of U.S. Senator Kerry as Secretary of State

EDF President Fred Krupp commented today on the nomination of U.S. Senator John Kerry as Secretary of State:

Senator Kerry is a superbly qualified public servant who will bring to his new post a deep understanding of issues at the confluence of international diplomacy, national security, economic growth and environmental protection, along with a demonstrated willingness to lead on climate change — the signal environmental challenge of our time.

President Obama's decision to put climate change at the heart of his second-term opens the prospect for Secretary Kerry to push for real and measurable progress on climate change in a range of bilateral and multilateral forums. We look forward to the opportunity to work with Secretary Kerry and his team as they redouble America's commitment to diplomatic leadership in confronting the climate challenge.

Posted in News |: | 1 Response

Doha climate talks: review of the major issues at COP 18

This week and next, more than 190 nations are meeting again for the annual United Nations climate conference, this year being held in Doha, the capital city of oil- and gas-rich Qatar.

Jennifer Haverkamp is director of EDF's international climate program

The Doha conference comes at a moment of increased awareness of climate change, after “Superstorm Sandy” pummeled the heavily populated east coast of the United States, and a handful of reports from generally cautious global institutions painted grim pictures of the risks of future climate change. Those gathered in Doha need to take heed of these warnings.

The UN negotiations are not known for their speed. But just as the climate negotiations over the years have been assuredly, if slowly, moving forward, we expect this year’s Conference of Parties 18 (COP 18) to also make some measured progress.

The real headline-grabbers are more likely to be found outside the UN negotiations, where countries and states have been busily launching and benefiting from their own emissions reductions programs.

Just since last year’s negotiations, Australia’s carbon price has gone into effect; Korea and Mexico have passed domestic climate legislation; China is moving forward with emissions trading pilot programs; and Europe’s Emissions Trading System, which has achieved significant emissions reductions at minimal cost, is about to transition to its third phase. In the United States, a new report shows that the U.S. is on track to reduce its emissions by more than 16 percent from 2005 levels by 2020, thanks in part to state and regional initiatives (along with important actions by the Environmental Protection Agency and availability of low-cost natural gas).

Negotiations overview

The countries now meeting in Doha are scheduled to finalize a second round of commitments under the Kyoto Protocol, the international agreement to cut greenhouse gases, and to wrap up the Long-term Cooperative Action (LCA) negotiating track, which was launched in Bali in 2007 and led many countries to make voluntary emission reduction pledges but fell short of a comprehensive binding agreement.

Doha will also set the course for the “Durban Platform for Enhanced Action” (ADP) track, whose goal is a new climate deal for all countries to be agreed by 2015 and to take effect in 2020.

We expect countries can make demonstrable progress in Doha by agreeing to the Kyoto Protocol’s second commitment period, which starts January 1, 2013, and by concluding the Long-term Cooperative Action negotiating track. These results will allow them to turn their full attention to bringing lessons learned and key policy tools from those two agreements – as well as a few unresolved carryover issues – into the new negotiations.

An especially encouraging feature of the new ADP negotiation is its across-the-board buy-in, since all developed and developing countries agreed to its terms last year in the Durban negotiations. To make this agreement as strong as possible, the ADP should create a framework that is both “welcoming” – meaning the legal framework can accommodate nations that may not be able to ratify the 2015 deal (perhaps including the U.S.), and have options for nations to participate, even if they’re not formal signatories to the agreement – and “dynamic,” so it can bring in new issues as needed.

We don’t anticipate a lot of progress on the ADP in Doha, but countries can reasonably be expected to reach consensus on a fairly specific, concrete plan for at least the coming year’s work toward the new agreement.

National, regional, local “bottom-up” measures making real progress

As important as the UN’s “top-down” inclusive approach to a comprehensive agreement is, much of the recent progress on climate has happened outside of the UN process, through national, state and local measures that are cutting emissions and forming a world of “bottom-up” climate actions.

Currently, 25% of the world’s economy is putting in place national emissions limits and implementing cap-and-trade systems. This includes:

  • The EU and New Zealand, which have existing cap and trade systems. Europe’s Emissions Trading System has achieved significant emission reductions at minimal cost. (Read EDF’s full report: The EU Emissions Trading System: Results and Lessons Learned)
  • China, which is moving forward on several pilot carbon trading pilots.
  • South Korea and Australia, which have adopted climate laws under which they will launch carbon markets in 2015. Australia’s official carbon price went into effect in July, which should help dent its emissions – the highest, per capita, of any developed country.
  • Mexico, which adopted legislation that authorizes (though does not require) establishment of a carbon market.
  • California, whose carbon market just held its first allowance auction in mid-November.

U.S. position

The United States has come to Doha less than a month after Superstorm Sandy struck the east coast and President Barack Obama was re-elected, and a month before California’s cap-and-trade system goes fully into effect.

Even without having national climate legislation, the United States is making some progress in reducing emissions. A new report from think tank Resources for the Future found:

currently, the country is on course to achieve reductions of 16.3 percent from 2005 levels in 2020. Three factors contribute to this outcome: greenhouse gas regulations under the Clean Air Act, secular trends including changes in relative fuel prices and energy efficiency, and subnational efforts.

California’s cap-and-trade system, which starts January 1, 2013, sets a declining limit or “cap” on emissions in sectors with the highest amount of greenhouse gas pollution, and will eventually cover 85% of California’s emissions. For the 10 northeastern states in the Regional Greenhouse Gas Initiative (RGGI), a report earlier this year found they cut per capita carbon emissions 20 percent faster than the rest of the nation from 2000-2009 while regional per capital GDP grew 87 percent faster than did that of the rest of the country.

Climate change has reemerged in the speeches of President Obama since his re-election. In his acceptance speech, he said

we want our children to live in an America … that isn't threatened by the destructive power of a warming planet.

Later, when asked in his recent White House press conference what he was going to do about climate change in his second term, he promised to have a “wide-ranging conversation” with experts on “what more we can do to make short-term progress in reducing carbons.”

Beyond the rhetoric, however, the U.S. is in much the same position as last year: with no prospects for national climate legislation, and a tight foreign aid budget, the U.S. has again shown up to the negotiations bazaar with little to trade for its demands of other major emitters.

Policy issues to watch

EDF's experts have been closely tracking policy issues leading up to Doha, and will continue to do so throughout the COP. Below we highlight some background and recommendations for those likely to feature prominently in the negotiations.

Legal architecture of a UN climate agreement

The negotiations launched last year have a deadline of 2015 for concluding a new climate agreement, applicable to all countries that are “party” to the United Nations Framework Convention on Climate Change (UNFCCC), to take effect in 2020. Many countries have called for a period of exploratory discussions and brainstorming before any attempt to choose the specific legal form of the 2015 agreement, and those discussions will likely continue in Doha.

The fundamental challenge countries face in the coming years is developing a legal framework that attracts and encourages nations to place effective, durable limits on the greenhouse gas emissions of entities in their jurisdiction, to enforce those limits through legally binding instruments, and to take action quickly.

Three key successful architectural elements of the Kyoto Protocol – and that are now being incorporated into national and state climate laws around the world (including those of Australia, the European Union, and California) – can help countries meet this challenge: binding caps on emissions, flexible market mechanisms to meet these caps, and accountability. In light of the fact that some nations may not, due to their domestic legal systems and political constraints, be able to ratify the final agreement, countries will need to think clearly and creatively about how to design a “welcoming” legal architecture for the 2015 agreement that has options to allow such nations to participate.

The new 2015 ADP agreement, not scheduled to enter into force until 2020, does not prevent countries from agreeing to targets that start earlier than that date, or to improve upon the pledges they have made for reductions between now and 2020. A legal framework for the 2015 deal that recognizes early action by countries may incentivize them to increase their ambition pre-2020, as required by the Durban decision, and, indeed, by climate science. A workable and effective agreement would contain the following “minimum elements:” an emissions budget approach; fungibility of trading mechanisms; and flexibility for non-Kyoto parties who have domestic carbon markets to link to the new ADP agreement. We hope countries can reach an outcome that meets such minimum elements and incentivizes early action, ensures transparency and environmental integrity, and provides predictability to carbon markets.

Kyoto Protocol

The Kyoto Protocol played a prominent role in last year’s negotiations, when its future looked to be hanging by a thread and developing countries vowed that it would not “die on African soil.” When the EU effectively kept it alive in Durban by agreeing to take on a second commitment period, EDF said that countries would be tested on whether they could coax into flame that spark of hope, or whether they would go back into their respective corners of stalling and delay.

The intervening year has seen its share of stalling and posturing, but the test comes now in Doha, when countries need to – and likely will – agree to the set of Kyoto Protocol amendments needed to launch a second commitment period. The group of developed countries signing up this time will be much smaller than in the first go-round. Major emitting countries including Japan, Russia and Canada have walked away from the table, but the European Union, Australia, Norway, Switzerland, Belarus and Kazakhstan will make a second round of commitments. It would be welcome, though surprising, if those countries upped their “ambition” by making more stringent commitments than the pledges they already made in Copenhagen or Cancun, or what’s already enshrined in their domestic legislation.

Climate finance

One of the most dynamic issues in the international climate talks now is finance for climate change mitigation and adaptation activities. Since the negotiations last year, countries have appointed a board for the Green Climate Fund (GCF), which was created in 2010 to help finance the efforts of some developing countries to adapt to the impact of climate change and curb their greenhouse gas emissions. That board has begun meeting and actively considering how best to structure its operations. The GCF has also found a home in Songdo, South Korea. However, in Doha countries still face a huge challenge: where to find public and private money to finance the Fund, which could eventually grow as big as $100 billion a year.

No money has actually started flowing into the GCF yet, but countries in Doha will be looking to find funding for the gap between now and when sources and consistent flows of funds to the GCF are clearly defined. That means pressure will be on for countries to pledge more funds, which will be a challenge. Since 2009, when countries last pledged money to “fast-start financing” in Copenhagen, expectations have changed, timelines have slipped and new structures in the UN – like the new ADP global agreement – are evolving. Countries will likely be averse to putting forward large sums until they have more clarity on commitments and rules governing the flow of funds. A tense discussion around these shorter term finance commitments is likely, but pressure will be on for all parties to demonstrate their commitment to mitigation, adaptation and finance. Doha cannot afford to fall back on already small ambitions.

For public funds for longer term financing, countries are unlikely to commit to anything in Doha. That’s because the appetite of the global community for providing such funds is linked to whether countries agree on strong mitigation commitments, and many countries don’t yet feel assured of others’ commitment to address climate change or that GCF funds will be “effectively” utilized. What countries need is to have a concrete conversation about effectively using the funds that are available. A clear set of rules will deliver the confidence needed for companies and investors to commit more resources to address climate change, both through the UNFCCC and outside the process.

Even in this current economic crisis, there is a lot of money for low-carbon development, and there are lots of hopeful signs on the ground. However, there’s still plenty more money for business-as-usual: most private investment right now goes exactly in the wrong direction. Private sector finance is the only way to achieve the clean energy transition, but turning it around first requires strong policy signals. Critical potential climate finance funds are sitting right now in the stock and bond markets and in countries’ national public expenditures; to unlock them, countries in Doha and the GCF first and foremost must deliver clear signals of their serious commitment to address climate change.

Measurement, Reporting and Verification (MRV)

Robust and transparent measuring, reporting, and verification (MRV) of emission reductions is essential for building the trust necessary for countries to take action and accurately compare efforts in reducing emissions, and for creating a structure that encourages investment, innovation, and finance for low-carbon development.

In Durban last year, nations agreed on new MRV rules for both developed and developing countries, as well as mechanisms for analyzing the results and providing support to improve future efforts. The agreements in Durban on transparency and accountability usefully built upon the 2010 Cancun decisions, but more specific reporting requirements and more robust review and compliance procedures will have to be added over time to ensure environmental integrity and improve the quality of carbon markets. In Durban the COP also agreed that developing countries' domestically supported mitigation actions will be measured, reported and verified domestically in accordance with "general guidelines" to be developed.

In Doha, MRV issues are likely to arise in discussions to implement the new market mechanism agreed in Durban last year. The efficacy of this new mechanism depends on instituting a rigorous Kyoto-like MRV template for accounting, accountability, and market integrity. Robust MRV is particularly critical for major emitters in both the developed and developing world that are likely to play a significant role in carbon markets. EDF thus supports proposals that allow large-emitting developing countries to access carbon markets if they step up to a higher level of MRV. Countries should delegate additional technical MRV issues that are not resolved this year to relevant subsidiary bodies, to carry forward into the negotiations for the new agreement to be concluded by 2015.

Avoiding deforestation (REDD+) & indigenous peoples

Reducing Emissions from Deforestation and forest Degradation (REDD+) is one of the policy areas in the UNFCCC negotiations that has made the most progress in recent years. Countries have made major decisions on the building blocks needed for REDD+, including agreement that REDD+: 1) is intended to “slow, halt and reverse deforestation;” 2) is a voluntary mitigation mechanism; 3) has to be a part of the overall mitigation efforts in the UNFCCC; and 4) needs strong environmental and social safeguards.

With such priming, REDD+ is almost at the finish line in the LCA negotiations and in a promising position to be included in the new ADP negotiations. Here are three major issues that may see progress in Doha:

  1. Technical Issues (Week 1): The technical and scientific body that provides recommendations to the COP, SBSTA, is meeting the first week of Doha to negotiate further guidance on important technical issues. For reference levels, (a snapshot of a country’s emissions for deforestation in a given year) countries should work on what they committed to last year regarding technical assessment – enabling the technical assessment of proposed reference levels once they have been submitted, and initiating work (ideally by the next conference) on developing methodological guidance for the technical assessment of proposed REDD+ reference levels. For measurement, reporting and verification (MRV) of emissions, countries are close to agreeing on REDD+ MRV guidance. However, to minimize complications between these discussions and the simultaneous discussions taking place in the LCA negotiations, countries should make the overall REDD+ guidance general, which will provide the necessary flexibility in constructing their reference level, MRV and monitoring systems. For indigenous peoples: Indigenous peoples are advocating in SBSTA for a REDD+ decision to include more guidance and details on Safeguard Information Systems – systems for providing information on how social and environmental safeguards are addressed and respected.
  2. Finance and REDD+ in LCA (Week 2): In the LCA REDD+ track, which starts the second week of Doha, countries have an opportunity to reach consensus on procedures and modalities on REDD+ financing for results-based actions – meaning countries will try to agree on how to pay for REDD+ reductions and what sources of finance can be used. A good outcome would allow countries to use the market to pay for REDD+, and countries with caps on their emissions after 2015 to use a portion of REDD+ credits to meet their commitments.
  3. REDD+ as part of the ADP negotiations: Not every REDD+ issue will be finalized in Doha, but with the LCA ending, it remains unclear what exactly will happen to any remaining REDD+ issues. A smart solution would be to include REDD+ in the new ADP negotiations, which would thereby formally recognize it as a mitigation component.

A good decision in Doha will provide more direction about how REDD+ will be financed, and carbon markets must play a role. And REDD+ should be part of the negotiations toward a new agreement so that when the deal is finalized in 2015, countries will be able to use REDD+ credits to meet a portion of their national emission reductions commitments.

Emissions from land management in developed countries (LULUCF)

Emissions from countries’ “managing” forests, croplands, grasslands, and wetlands, or from converting land from one use to another (such as through cutting down trees or planting new forests) make up a substantial component of the greenhouse gas profile for many countries. When countries take action to reduce these emissions, they can use some of the reductions to help meet their emission reduction commitments. For countries that are Parties to the Kyoto Protocol, the rules for accounting for these reductions in the second commitment period were revised in 2011 and will come into effect in 2013; these rules fall under the UNFCCC’s issue called Land Use, Land-Use Change and Forestry (LULUCF).

Doha’s scientific and technical discussions are covering several sub-topics related to LULUCF:

  1. New “activities” for the Clean Development Mechanism: Countries considering adding new kinds of activities to the current list of land-management practices that can register projects under the Clean Development Mechanism (CDM), whose projects are intended to reduce emissions in developing countries and are supported by developed countries. This would allow developed countries to contribute to more emission reductions in developing countries for improved land-management practices.
  2. “Permanence” of LULUCF emission reductions: Parties are discussing ways to deal with the possibility that these kinds of emission reductions in the CDM may not be permanent. For example, if reductions occur from a reforestation project that removes carbon dioxide from the atmosphere, those reductions could be reversed if the forest is cut or burned down. In such cases, the carbon in the forest should be treated like other kinds of capital assets by protecting it with insurance mechanisms and by assigning liabilities in case these assets are damaged or destroyed (this view is shared by many countries).
  3. Comprehensiveness of land-management emissions: This issue is more long-term, and relates to expanding the array of land management emissions that are covered by countries’ commitments. The current rules give countries a choice regarding some of the activities to be covered, but most countries agree that all land-management activities should eventually be counted in their commitments. From a technical perspective this will be a challenging task, but countries in Doha are discussing how to expand the comprehensiveness of their accounting. EDF made a submission to the UNFCCC explaining our views on how they should proceed.
  4. “Additionality”: Countries are also debating how to identify the “additionality” of emissions reductions from LULUCF activities – that is, the amount of reductions that would not have happened without some kind of policy intervention. Identifying the additionality of activities is important for measuring the real contribution of policies and actions to reduce emissions, but the technical challenges associated with quantifying the “additional” reductions are tricky, and are not likely to be resolved anytime soon. However, it is worthwhile to begin this discussion in Doha, because it will create a space to address some lingering problems that could undermine the environmental integrity of the LULUCF accounting rules.

Overall, the discussions on LULUCF issues may indicate a new willingness of countries to grapple with the technical challenges that they must overcome to expand and improve the participation of more countries – a contrast with past negotiations, in which political expediency has sometimes trumped technical rigor and environmental integrity.

Agriculture

Agriculture is important to every country, but in many nations climate change is threatening the food security and rural livelihoods that agriculture provides. Moreover, the agricultural sector itself contributes a substantial share of the emissions that cause climate change, often in the form of powerful greenhouse gases like methane and nitrous oxide. There is currently no coherent work program within the UNFCCC where countries can discuss how climate change relates to the many aspects of agriculture in all of the national contexts where it occurs.

In Doha, the question is whether to set up a new work program to consider the scientific and technical aspects of agriculture and climate change. Countries have already formally submitted their views to the UNFCCC about establishing such a work program – like one that exists for finance or REDD+ – with many in favor of creating one during the Doha meeting. A scientific and technical discussion would certainly be useful now; an EDF submission on agriculture outlines why it is important and what could be achieved.

Collectively, countries need to take action to help farmers adapt to climate change. It is also clear that emissions from agriculture can be reduced in many locations, and countries should formally consider how these substantial reductions could be achieved in a way that protects food security and rural livelihoods.

Closing observations

The major emitters’ paucity of vision, ambition and urgency has brought us to the brink of catastrophe. It’s these factors, not the forum, that explain why the best we can hope for at Doha is modest incremental progress on the road to 2015.

And if that sounds a bit surreal in the wake of Superstorm Sandy, well, that's unfortunately today’s reality. “Aside from that, Mrs. Lincoln, how was the play?”

*EDF’s international climate experts contributing to this blog post include Alex HanafiGus Silva-ChávezChris MeyerRichie AhujaGernot WagnerJason Funk and Karen Florini.

Also posted in Deforestation, Doha (COP-18), Indigenous peoples, REDD, UN negotiations |: | 5 Responses

Doha climate talks could see measured progress toward new global agreement

International climate negotiations have begun in Doha, Qatar, where countries can make progress toward a new global agreement, climate finance and reducing deforestation emissions, among other technical issues. Photo credit: Flickr user UNclimatechange

The largest international climate negotiations of the year kicked off Monday in Doha, Qatar, drawing delegates from more than 190 countries in a grand effort to create a global treaty to reduce greenhouse gas emissions and halt climate change.

Worldwide attention is particularly focused on climate after a number of respected and typically conservative global institutions — including The World Bank, United Nations Environment Program, International Energy AgencyPwC – in reports released in the weeks leading up to Doha painted grim pictures of the risks of extreme climate change.

These talks in Doha could see measured progress toward a new global agreement in some areas — or, as The New York Times put it, "the agenda for the two-week Doha convention includes an array of highly technical matters but nothing that is likely to bring the process to a screaming halt."

Environmental Defense Fund anticipates three issue areas could see important progress in Doha:

1) Negotiating tracks

The countries now meeting in Doha are scheduled to finalize a second round of commitments under the Kyoto Protocol, the international agreement to cut greenhouse gases, and wrap up the Long-term Cooperative Action (LCA) negotiating track, which was launched in Bali in 2007 and led many countries to make voluntary emission reduction pledges but fell short of a comprehensive binding agreement.

Doha will also set the course for the “Durban Platform for Enhanced Action” track, whose goal is a new climate deal for all countries to be agreed to by 2015 and to take effect from 2020.

International Climate Program Director Jennifer Haverkamp said in EDF's opening statement:

Countries can make real progress in Doha by agreeing to the Kyoto Protocol’s second commitment period with minimal fuss and delay, and concluding the Long-term Cooperative Action track, so they can turn their full attention to bringing lessons learned and key policy tools from those agreements forward into the new negotiations.

Even the U.S. founding fathers didn’t get the Constitution right the first time – remember the Articles of Confederation? Countries, in constructing this new agreement, have a chance to incorporate the key elements of these tracks: Kyoto’s binding structure and accountability, and the LCA’s broadened participation among countries and new tools to fight climate change.

2) Climate finance

Countries in Doha should deliver clear signals of ambitious commitment to address climate change, a much-needed policy signal that will help unlock and target critical climate finance funds that exist right now in the stock and bond markets and in countries’ national public expenditures.

3) Deforestation emissions

For policies for Reducing Emissions from Deforestation and forest Degradation (REDD+), countries have the opportunity to agree that multiple sources of finance can be used to pay for REDD+ reductions, and thereby send another positive signal to tropical forest nations.

Climate & Forests Specialist Gustavo Silva-Chávez said last week in a blog post previewing the Doha REDD+ negotiations:

REDD+ is almost at the finish line. We need a decision with more direction about how it will be financed, and carbon markets must play a role.

Countries, states making major climate progress

Outside the UN negotiations, countries and states have been busy launching and benefiting from emissions reductions programs. Just since last year’s negotiations:

Here in the United States, California begins its state-wide cap-and-trade system on January 1, and the northeastern states’ regional cap-and-trade system (RGGI) is already cutting emissions while the regional per capita GDP is growing faster than that of the nation as a whole. And a new report shows that the U.S. is on track to reduce its emissions by more than 16 percent from 2005 levels by 2020, thanks in part to these states’ initiatives.

Haverkamp said these moves are all significant:

“A full quarter of the world’s economy – from California to China, Mexico to South Korea – has or is putting in place programs to reduce emission. The top-down UN process is still critical to stopping dangerous climate change, but more and more countries are deciding not to wait around for it to tell them what to do. We’re already in a bottom-up world.”

 

See related post: REDD+ almost at the finish line: Doha preview

Also posted in Deforestation, Doha (COP-18), Europe, Forestry, Indigenous peoples, Mexico, REDD, UN negotiations |: | 1 Response

U.S. House passes superfluous bill, EDF calls on airlines to help find global approach to reduce aviation emissions

The U.S. House of Representatives tonight passed a bill that authorizes the Secretary of Transportation to prohibit airlines from participating in the European Union's anti-pollution law. EDF called the bill superfluous — the EU yesterday paused its carbon pollution law that was the target of the U.S. bill — and warned it sets a bad precedent for U.S. foreign relations.

The European Union Emissions Trading Scheme Prohibition Act of 2011 at best is superfluous, and at worst undermines respect nations need to have for each other's laws, EDF's Annie Petsonk said after the House passed the bill. Photo credit

The EU paused its law following the International Civil Aviation Organization's (ICAO) setting in motion a high-level political process aimed at agreeing on a global program for cutting aviation carbon pollution by October 2013.

EDF’s International Counsel Annie Petsonk said in EDF's statement in the House:

Now that ICAO has moved into high gear its effort to get a global system for limiting aviation’s carbon pollution, and the EU has stopped its clock pending the ICAO outcome, at best this bill is simply superfluous. At worst, it undermines the respect that nations need to have for each other’s laws in a globalizing world.

President Obama signaled in his reelection acceptance speech that there is an opportunity for revitalized executive branch leadership on the challenge of climate change.

The aviation question, one of the first climate issues after the elections, puts the spotlight on the White House, which will need to put significant political muscle into helping ICAO reach agreement on a worldwide approach to address aircraft emissions.

The airlines who lobbied so hard for enactment of this bill should join with environmentalists in agreeing on that global approach.

The European Union Emissions Trading Scheme Prohibition Act of 2011 gives the Secretary of Transportation authority to prohibit U.S. airlines from complying with a European law requiring airplanes that land or take off from European airports to account for and limit their flights’ global warming pollution through an emissions trading system.

The bill also requires the Secretary of Transportation to hold the airlines "harmless" of any costs, including both the costs of complying with the European law, estimated to be trivial, and the costs of not complying. The “hold harmless” provisions could launch a wholly unnecessary trade war and stick U.S. taxpayers with up to $22 billion in non-compliance costs.

Before the bill came to the House floor tonight, Petsonk talked to POLITICO, which reported:

Petsonk has long been predicting ICAO would be confronted with the decision, likening the process to past global environmental law cases that began with bilateral bickering but eventually spawned a global dialogue. That means the U.S. should not yet be patting itself on the back about forcing the EU’s hand.

“The EU didn’t say, ‘We’re ending the system.’ They said, ‘We’re giving the ICAO process time’” to work on the issue, Petsonk said.

That means congressional action on a bill that has been in a recess-induced lull for weeks is likely to pass Congress just days after the real progress was made internationally. “It’s like a Fifth of July firecracker,” Petsonk said of the bill.

Aviation is already the world's seventh largest polluter, and if emissions from the industry are left unregulated, they're expected to quadruple by 2050.

Also posted in Aviation, Europe |: | 2 Responses

The EU Emissions Trading System is reducing emissions, sparking low-carbon innovation, and growing up. Really.

With 2012 shaping up to be the hottest La Niña year on record and global greenhouse gas emissions continuing to rise, initiatives to reduce global warming pollution are ever more critical. A new EDF report presents important lessons from the experience of the world’s first multinational carbon emissions trading system: the European Union Emissions Trading System (EU ETS).

Jurisdictions as diverse as California, China, the Republic of Korea, Kazakhstan, and Australia are implementing, or are in the process of adopting, cap-and-trade policies to reduce greenhouse gas emissions, and all stand to learn important lessons from Europe.

Why the EU Emissions Trading System matters

The EU’s program is the first and largest cap-and-trade system with enforceable limits on carbon pollution, which gives it a unique position on the world stage. The EU ETS:

Results from the first two trading periods of Europe's Emissions Trading System offer lessons for other jurisdictions on the road to a low-carbon economy. (Photo source: iStockphoto)

  • Began its pilot phase (Phase I) in 2005; the pilot phase transitioned in 2008 into the fully operational Phase II, which will end this year; Phase III will begin in 2013, and last through 2020 (though EU law already provides that emissions will continue to decline beyond 2020).
  • Places strict caps on carbon dioxide emissions from power stations and industrial plants.
  • Applies to about 40% of the EU’s total greenhouse gas emissions, rising to 43% as the ETS expands its coverage to include other industrial sectors and global warming pollutants.
  • Aims to lower the total carbon emissions of covered sectors in the EU to 21% below 2005 emissions by 2020.
  • Includes 30 participating countries, which account for 20% of global gross domestic product (GDP) and 17% of world energy-related CO2 emissions.

As the EU ETS’s first full trading period (Phase II) comes to a close at the end of 2012, our report examines the results thus far of the world’s first carbon cap-and-trade experiment, and looks ahead to its future.

The report, The EU Emissions Trading System: Results and Lessons Learned, reviews the performance of the EU ETS from 2005 until present, and addresses three central points: the EU ETS’s efficacy, efficiency, and market security. (Note: This report focuses on the overall structure and performance of the EU ETS since its inception in 2005, and thus does not discuss the 2012 expansion of the system to include aviation emissions.)

Results and recommendations

Based on our analysis of the EU Emissions Trading System, EDF has identified six major results from the EU ETS's experience, and developed corresponding policy recommendations. The report’s Executive Summary includes additional details on each of the following lessons learned.

1) The EU ETS has achieved significant emission reductions at minimal cost.

As shown below and on page 8 of the full report, the data suggest that the ETS has succeeded in reducing emissions beyond what would be expected from the recession alone, even assuming an emissions growth rate 1% less than the growth in GDP (represented by the dotted business-as-usual line).  ETS sector emissions declined a further 1.8% in 2011, according to recent estimates, while GDP increased approximately 1.4%. However, verified 2011 emissions data will not be available until mid-2013, and thus the graph does not depict the likely drop in 2011 emissions. The EU has achieved this emissions-cutting success at much lower-than-expected cost: according to some estimates, just 0.01% of Europe’s GDP, and that’s without considering the economic benefits of emissions reductions.

EU ETS sector emissions (million metric tons CO2), emissions caps, and EU gross domestic product (GDP), 1990–2015.

 

Recommendation: Emulate the successful design of – and improvements to – the EU ETS, including its focus on the environmental integrity and enforceability of the emissions cap, to unleash the proven effectiveness of cap-and-trade in stimulating low-carbon innovation.

Recommendation: Stimulate long-term emission reduction investments by maintaining a predictably declining, enforceable, science-based cap on carbon.

2) Although over-allocation of allowances and a sharp drop in their prices occurred during the program’s pilot phase in 2005-2007, the policy stability created by longer-term targets subsequently led to durable investments in reducing emissions and deploying low carbon strategies.

Recommendation: Base emissions caps and resulting allowance allocations on measured and verified historical emissions, rather than on estimated or projected emissions.

Recommendation: Provide a predictable long-term policy environment that allows banking of allowances between trading periods.

3) Windfall profits occurred in some member states but can be avoided using a variety of policy tools.

Recommendation: Establish appropriate regulatory oversight of public utilities, and auction some or all allowances.

4) Reforms have improved the elements of the EU ETS that allow emitters to tender credits earned from projects reducing emissions in developing countries (“offsets”), but further reforms would be useful.

Recommendation: Ensure offset programs have rigorous monitoring and accounting methodologies to clarify that emission reductions are “additional” (i.e., below a credible baseline)

Recommendation: Adopt reforms that allow international offset credits only from jurisdictions that have capped some portion of their emissions, or only from least-developed countries.

Recommendation: If linking to other nations’ emissions trading programs, do so preferentially with nations that adopt caps or limits on major emitting sectors.

5) The EU ETS has made significant progress in preventing any recurrence of the tax fraud and theft of allowances that occurred during the program's earlier years.

Recommendation: Establish effective governance and regulatory bodies, as well as preventive electronic security systems, to adapt to evolving cyber attacks and other market security threats.

6) Companies and entrepreneurs have responded to the ETS and its complementary policies with a diverse range of profitable investments in low-carbon solutions.

Recommendation: Institute an ambitious cap-and-trade system to encourage business to think creatively about reducing greenhouse gas emissions.

What’s next for the EU ETS, and why the world should care

The EU will further expand the coverage of the EU ETS in 2013 to include additional greenhouse gases and additional industrial sectors, including the aluminum and chemical industries.

Regions, nations, states and local jurisdictions that are considering capping carbon pollution can learn from the experience and build on the success of the EU ETS, the world’s first large-scale CO2 cap-and-trade system. (Photo courtesy of German Wind Energy Association/© BWE / Thorsten Paulsen)

Additionally, even though the EU ETS’s Phase III ends in 2020, the cap on emissions will continue to decline after that – by 1.74% per year – which provides the critical longer-term certainty needed to spur investment in emissions reductions now.

Nonetheless, a suitable set of complementary policies and measures is essential if the EU is to achieve its aspirational emission reduction target of 80% below 2005 levels by 2050. A more ambitious EU ETS target for 2020 or 2030 would help achieve the EU’s long-term reduction goal. Current discussions in Europe include proposals to tighten the EU ETS cap further, not only to strengthen emission reductions, but also to stimulate economic growth.

Perhaps the most important lesson the EU ETS experience provides is that regions, countries and states can benefit from a learning-by-doing approach to cap-and-trade. Any design flaws and weaknesses of various policy tools are often difficult to anticipate, but can be corrected over time as experience warrants.

With its success and durability now attracting the attention of other nations and jurisdictions that seek to link their carbon trading systems to the EU’s, the EU ETS offers a unique opportunity for other regions, nations, states, and even local jurisdictions that are considering such systems to learn from its experience and continue to build on its success.

Also posted in Europe |: | 1 Response