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Passengers on India’s largest airline can now invest in low-carbon rural development

Airline travelers in India who fly the country’s largest airline now have an opportunity to support low-carbon rural development programs across the country.

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A new partnership will allow passengers on India's largest airline to invest in offsets that promote low-carbon rural development programs, including low-carbon farming. Credit: Richie Ahuja

The landmark partnership was unveiled this weekend between the Fair Climate Network (FCN), a consortium of Indian groups that is committed to improving health and livelihoods in rural communities, promoting climate resilience and reducing climate pollution, and IndiGo, the country’s largest and fastest growing airline.

The company will use the funds collected through this voluntary program to purchase some of the offsets generated by more than 300,000 Indian families from 36 climate mitigation projects. The projects, being developed and implemented by FCN, help families in rural India gain access to clean, reliable energy and improve farm income while cutting carbon emissions.

These climate adaptation and mitigation activities include innovative and sustainable low-carbon farming techniques and cooking with clean methane power instead of highly polluting traditional wood stoves. The families produce the methane fuel by using biogas digesters to process livestock manure.

Why this is a big deal for India – and Indians

It bears repeating that this is an Indian company buying carbon offsets created in India. We’ve seen other projects in India create offsets that have been purchased by, for example, European organizations. But this project is truly an effort of and for the people of the world’s largest democracy.

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300,000 Indian families participate in programs under the Fair Climate Network, a consortium of Indian groups committed to improving health and livelihoods in rural communities. Credit: Tal Lee Anderman

In offering this program, Indigo is providing its customers an opportunity to support its commitment to shared prosperity and “inclusive” growth – growth that benefits not only rural families that are members of the Fair Climate Network, but also IndiGo’s passengers and all Indians, who will benefit from a healthier environment.

Ram Esteves, the Convener of FCN said addressing rural development is a "high priority," adding:

We need programs that support economic development and deliver social, health and environmental co-benefits, including climate adaptation and mitigation. IndiGo has reposed faith and trust in this understanding of inclusive development where a stable and healthy economy is good for business. This partnership is a strong step in this direction.

IndiGo’s President and Executive Director Aditya Ghosh called the move a “momentous opportunity” for the company, saying:

We strive to make a difference each day and find solutions that help manage our carbon footprint. We are delighted to partner with FCN on this initiative which not only helps us and our passengers achieve just that, but goes far beyond by creating a sustainable positive impact and improving many individuals’ livelihoods.

The company is showing leadership by making this commitment to inclusive growth and offsets, along with other green technology investments, an integral component of its future growth. This partnership can serve as a model for Indian business leaders looking to make a difference in their communities.

Learn more at:

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Warsaw talks can lay groundwork for new international climate architecture

For the next two weeks, representatives from more than 190 countries are meeting in Warsaw for the annual international climate negotiations, known as the 19th Conference of the Parties to the United Nations Framework Convention on Climate Change — or “COP-19.”

Countries in Warsaw face the challenge of how to invite broad participation to an international climate agreement, while encouraging ambitious emissions cuts. Above: UNFCCC Executive Secretary Christiana Figueres gives a welcome speech in Warsaw. Source: Flickr (UNFCCC)

But while the delegates are gathering in Poland — and their hearts are with the Philippines — their minds will be 850 miles to the west, in Paris. That’s because in two years’ time, the same set of countries will meet there to conclude a new global agreement to fight climate change, intended to take effect from 2020.

As a result, even as delegates in Warsaw continue to work on individual issues – such as how to support policies that reduce emissions from deforestation, and how to finance work that reduces greenhouse gas emissions — they are also beginning to grapple with how to knit those components together in an overarching agreement.

No major breakthroughs are expected this year, but many nations have expressed the desire to develop a skeletal framework and flesh out a coherent design for the 2015 agreement.

Their challenge: How to invite broad participation, while simultaneously encouraging ambitious emissions cuts?

A middle path between “top-down” and “bottom-up”

The answer may be to seek a middle ground between what are sometimes called the “top-down” and “bottom-up” approaches.

The top-down approach envisions a sweeping agreement that would allocate the allowable “carbon budget” among countries and create a comprehensive system to implement it. Solving the problem in a single go would be great for the climate. But that approach doesn’t mesh with the political realities of tackling the climate issue in an arena with 190+ different nations, each with its own energy mix and development priorities. Those realities came into sharp relief four years ago in Copenhagen, where grand hopes of a “global deal” ran into the reality of a UN process better suited to incremental progress.

At the other extreme, a purely “bottom-up” approach may appear more realistic, but risks achieving little. Without any framework in place to encourage countries to undertake ambitious actions, to verify that they are abiding by commitments they have made, or to provide them with the tools they need to carry them out, it is unlikely that their pledges will add up to anything remotely ambitious enough to solve the problem, or that their pledges will be implemented.

A middle road is needed: a path between “top down” and “bottom up,” and an approach that recognizes that while the UN can’t solve the problem at one blow, it has a key role to play in supporting and promoting effective action by countries. The key to this approach is constructing a legal framework, or “architecture,” that provides a home for a range of different national approaches while ensuring market integrity and encouraging ambition.

In Warsaw, an important portion of the discussion about the architecture of the 2015 agreement will play out in a track known as the “framework for various approaches,” established in Durban in 2011. Created as a forum for exploring both market and non-market approaches for reducing emissions, the “FVA" offers an important opportunity to set guidelines for the design of effective, high-integrity national programs. As a result, it provides an opening to chart the middle path.

Minimum pillars of an effective climate architecture

A sound climate architecture should give countries the confidence to take on and implement ambitious targets. It can do that by ensuring rigorous and transparent monitoring and reporting — so that countries can verify that other nations are following through on their own commitments. An architecture should create incentives for early action, even before a new agreement takes effect from 2020.

An architecture should also establish minimum guidelines or standards for the integrity of domestic programs, enabling countries to evaluate each other’s actions. Such an approach would also have the effect of facilitating environmentally sound linkages between and among those nations with existing and emerging carbon markets.

This kind of architecture could then become a “gift that keeps on giving,” as it would reinforce nations’ willingness to undertake even more ambitious targets in the future, secure in the knowledge that their negotiating partners are also undertaking and implementing their commitments.

Fortunately, establishing these guidelines does not require re-inventing the wheel: existing domestic and international emissions reductions programs have provided lessons that can be applied to both non-market and market approaches to reducing greenhouse gases. (We’ve summarized these in our most recent submission to the UN [PDF].)

One clear lesson from existing programs is that a workable and effective agreement to reduce carbon pollution would contain the following “minimum pillars”:

  1. National emissions budgets, with sectoral or jurisdictional emissions caps which may be internationally or domestically enforceable, supported by rigorous measurement, reporting, and verification (MRV) of emissions following internationally agreed standards, to ensure transparency;
  2. Incentives for early action;
  3. For those nations that choose to use them, high-integrity market mechanisms to meet their emissions caps; and
  4. Flexibility in how nations might participate in a new agreement, recognizing that some nations may not be able to ratify internationally binding elements of any final 2015 deal.

Our policy brief, A Home for All: Architecture of a future global framework for mitigation action [PDF], has more details.

What the Warsaw talks can deliver

Although nations are unlikely to define the content and structure for the 2015 agreement at this level of specificity by the close of the Warsaw meeting, we hope countries can agree on a clear blueprint for the next phase of work that incorporates these “minimum pillars” of transparency and environmental efficacy.

The Warsaw meetings are unlikely to generate much front-page news. But behind the scenes, the talks can play an important role in preparing the ground for Paris. The key task is to lay the foundation for a durable and dynamic legal architecture that accommodates real-world constraints, while refusing to accept a lack of ambition: an architecture that provides a home for all nations to contribute to addressing the shared global challenge of climate change.

As the impacts of warming temperatures and rising seas become ever more apparent around the globe, the need for such an architecture becomes all the more urgent.

Also posted in REDD, UN negotiations, Warsaw (COP-19)|: | Leave a comment

In Warsaw climate talks, potential to make real progress on key issues

Countries meeting in Warsaw for the annual United Nations climate conference won't  finalize the structure of an international agreement to address climate change, but they should make progress on some important topics that will serve as the foundation for such an agreement.

Countries meeting in Warsaw for the UN climate negotiations can make real progress on key issues that will serve as the foundation of an international climate agreement. Above: Election of the negotiations' President His Excellency Mr. Marcin Korolec. Source: Flickr (UNFCCC)

Over the next two weeks, more than 190 countries will be working on topics that constitute the nuts and bolts of an international climate agreement, such as how to support policies that reduce emissions from deforestation (REDD+), and how to finance work that reduces greenhouse gas emissions.

Countries at the 19th Conference of the Parties to the United Nations Framework Convention on Climate Change — or “COP 19” — also face the broader issue of how to knit these topics together in an overarching agreement, set to be finalized at the 2015 negotiations in Paris. The 2015 agreement's structure, or framework, will be an important area for discussion in Poland.

Nathaniel Keohane, EDF’s vice president for international climate and a former economic adviser in the Obama administration, said:

Negotiators in Warsaw need to clear out the brush so they can see a path to resolving major issues on the road to Paris.

Warsaw is unlikely to generate front-page headlines – but below the surface, there is considerable potential to make real progress on key foundational issues.

This is the year for negotiators to get their hands dirty and prepare the ground for an effective framework in 2015 – one that encourages countries to take ambitious emissions cuts and invites all countries to participate.

Read the full news release: In Warsaw UN climate meeting, focus is on 2015 Paris talks as countries take on foundational issues

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Aviation emissions deal: ICAO takes one step forward, half step back

ICAO's decision today on aviation emissions offers the prospect of the world's first carbon cap on an entire global sector.

The United Nations agency for aviation today launched a three-year effort to achieve a global market-based measure to cap the climate pollution of international aviation.

After nights of lavish receptions – a testament to the financial robustness of international aviation – delegates finally got down to the hard work of negotiating a resolution on how ICAO will tackle the climate change issue.

The decision by the 191 countries in the International Civil Aviation Organization (ICAO) to develop a measure to limit the emissions of international civil aviation offers the prospect of the world's first carbon cap on an entire global sector.

Last night, we said the proposal – which was adopted around noon today – amounted to “one step forward, half a step back."  Here’s what we meant.

 One step forward, half a step back

The decision by the 38th General Assembly to develop, by 2016, a global market-based measure capping international aviation’s carbon pollution at 2020 levels is a step forward on the path to averting dangerous climate change. If it were a country, aviation would rank in the world’s top ten largest emitters, and it is one of the fastest growing sources of global warming pollution.

With this decision, ICAO has opened a door to the possibility of a future global cap on these emissions and an array of programs – including a market-based measure sought by both the industry and the environmental community – to ensure that the cap is met.

However, a bedrock principle of international law is that nations have the sovereign right to limit pollution emitted in their borders. So, ICAO’s attempt to narrow the ambit for countries to implement their own market-based measures to cap and cut the burgeoning global warming pollution from international aviation pushed it half a step back.

Differences erupt in waning hours

Deep differences between and among countries erupted in the waning hours at the just-concluded Assembly, including disagreements about how and even whether to complete this task.  At several points the meeting seemed destined to disintegrate.

An acrimonious vote on whether countries could bring aviation emissions under their national emissions trading system nearly caused the meeting to disintegrate.

In the end delegates agreed 1) nations should seek the agreement of other nations before imposing their market-based measures on flights from those other nations; and 2) such national market-based measures should exempt flights to and from nations whose flag carriers hold less than 1% share of the global market, measured in “revenue-ton-kilometers.”

Next steps

Remember – this decision is only a first step, but it is an important one because it provides a path forward for a cap on the aviation sector.

Now it’s time to shift to the hard work of designing the global market-based mechanism and getting 191 countries to agree to it.

Intensive efforts will be needed to make ICAO’s promise a reality. It’s not the time to let up, and ICAO can’t be let off the hook.

Also posted in Aviation|: | 1 Response

Bloomberg-EDF analysis: Mandates plus markets could make airlines' emissions goals readily affordable

The aviation industry can affordably meet and beat its goal of halting carbon emissions growth from 2020 if it uses high-quality, low-cost carbon offsets, according to a new analysis from Environmental Defense Fund (EDF) and Bloomberg New Energy Finance (BNEF).

Airlines’ goal of “carbon-neutral growth from 2020” could be so readily affordable that governments justifiably could hold airlines to a much tighter emissions target. Image source

Our analysis comes on the heels of a consolidated industry call for the governments of the International Civil Aviation Organization (ICAO) to commit, at their next triennial September meeting, to adopt a mandatory global program to limit aviation’s carbon pollution by 2016 at the latest.

While forecasts are inherently uncertain, best estimates indicate that while new technologies, operations and infrastructure can help industry dampen emissions growth, substantial increases in aviation emissions are likely after 2020. Consequently, to meet their proposed mandatory goal of "carbon-neutral growth from 2020," it is very likely that airlines will need some kind of carbon offsetting mechanism.

An offset mechanism that limits credit supply to high-quality carbon units currently available and expected to come on-line in the future, could let airlines meet their emissions target at very modest cost. If governments adopt tough criteria ensuring that offsets represent real reductions in net carbon emissions, and if industry moves swiftly to capture those carbon units, the costs to airlines could be quite low – e.g., less than 0.5% of projected total international airline revenue in 2015, and less than a third of the fees airlines collected last year for checked bags, legroom and snacks.

In the current round of talks, the aviation industry is asking governments to mandate caps on airlines’ emissions at 2020 levels. Our analysis finds that a well-designed, high-integrity carbon offset program would make carbon-neutral growth from 2020 so affordable, that governments justifiably could hold airlines to a much tighter emissions target. That could mean putting back on the table a target the industry had proposed several years ago, namely cutting emissions 50% by 2050.

As my report co-author, Bloomberg New Energy Finance chief economist Guy Turner, said:

These findings show that the international aviation sector can control its CO2 emissions easily and cheaply by using market based mechanisms. The relatively small cost and ability to pass any costs through into ticket prices, should encourage the international aviation sector to accelerate and deepen its emission reduction pledges. More ambitious emission reductions now look much more doable, than mere stabilization from 2020.

Our analysis offers context to the costs of such a global market-based mechanism using offsets with strong environmental integrity, which the aviation industry called on ICAO last month to adopt to keep the industry’s net emissions stable from 2020 on. Such an offset program would allow the airlines to meet their emissions targets by both making emissions cuts within the aviation sector, and drawing on offsets that represent real emission cuts in other sectors.

Blog-exclusive addendum: effect on ticket prices

A well-designed global offset program, using high-quality offsets that represent real reductions in emissions, could add only a few dollars to a typical international fare:

  • From Paris (CDG) to Beijing (PEK): $1.90 – $3.00
  • From Paris (CDG) to Delhi (DEL): $1.50-$2.30
  • From Paris (CDG) to Cape Town (CPT): $2.40-$3.70
  • From Paris (CDG) to Buenos Aires (EZE): $2.70-$4.30
  • From New York (JFK) to Buenos Aires (EZE): $2.10-$3.20

Read more in our press release and the full BNEF-EDF analysis, Carbon-Neutral Growth for Aviation: At What Price?

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

What President Obama's Climate Action Plan means for international efforts on climate change

In a powerful speech earlier today, President Obama announced a comprehensive, common-sense set of steps that the Administration is taking to address climate change by cutting carbon pollution, preparing the United States for the impacts of climate change, and leading international efforts to address global climate change. It’s worth taking a look at what the President’s speech, and the Climate Action Plan he unveiled today, might mean in the international arena.

President Obama's new Climate Action Plan emphasizes the U.S. role in global efforts to stop climate change.

Much of the plan concerns what the U.S. – the world’s second-largest emitter – can do to reduce emissions at home. A major component is the President’s decision to direct the U.S. Environmental Protection Agency to move ahead with carbon pollution standards for existing power plants, which account for about 40% of carbon dioxide emissions in the United States. Putting in place such standards – using authority the Administration already has under the Clean Air Act – is the single most important step the U.S. can take to reduce carbon emissions.

More broadly, the President laid out a whole-of-government approach that includes actions from the Departments of Agriculture, Energy, Interior, Transportation, and other agencies across the federal government. (EDF President Fred Krupp provides an overview of the plan and his reactions to it on our EDF Voices blog.)

But there is also a welcome emphasis on the U.S. role in global efforts to address climate change, through measures that include reducing emissions from deforestation and forest degradation (REDD+), expanding clean energy use, mobilizing climate finance and leading efforts to address climate change through international negotiations.

The President’s plan highlights the recent agreement between the U.S. and China to work together in phasing down the consumption and production of HFCs – industrial gases used in applications such as refrigeration and cooling that are thousands of times more potent warmers than carbon dioxide on a pound-for-pound basis. And the plan points to the critical importance of helping vulnerable countries adapt to a changing climate, pledging to strengthen resilience to climate change around the world.

Comprehensive climate action plan includes efforts on international aviation emissions and coal-fired power plants around the world

Among the many international issues covered by the plan – many describing work that is already underway – two specific commitments stand out as worth focusing on in the coming months.

1) First, the Climate Action Plan recognizes the importance of addressing global warming pollution from international air travel, highlighting that the Administration is “working towards agreement to develop a comprehensive global approach” in the International Civil Aviation Organization, or ICAO. Progress on aviation is important not only because of the emissions involved (if global aviation were a country, it would rank in the world’s top ten largest emitters) but also because it represents an area where the international community could make headway in the near term. An agreement in ICAO at its upcoming meeting in September would give a valuable boost to international efforts more broadly, simply by demonstrating that agreement in multilateral forums is possible.

Of course, “working toward agreement” is pretty broad. But it seems reasonable to expect the Administration to be at least as ambitious as the airline industry itself. Earlier this month, the International Air Transport Association called for ICAO to agree on a global market-based measure to cap emissions from international aviation, and put forward principles to help governments reach that agreement.

ICAO should commit, this year, to develop such a detailed approach over the next three years and formally adopt it at the next ICAO Assembly in 2016. Such an ICAO agreement won’t happen without visible and assertive U.S. backing, however. That’s why it was so welcome to see international aviation mentioned in the action plan – and why we (and the rest of the environmental community) will be watching the Administration’s actions with interest over the next few months, and holding the Administration to its commitment to lead.

2) Second, the plan announces a new and stronger commitment to end financing for new coal-fired power plants around the world. The President “calls for an end to U.S. government support for public financing of new coal plants overseas,” with narrow exceptions for the world’s poorest countries (in cases where no other economically feasible alternative exists) or coal plants that capture and store their carbon emissions. This pledge appears to go considerably beyond the guidelines for coal-plant financing by multilateral development banks that the U.S. Treasury released in 2009, both by setting a higher bar for what coal plants would still be allowed and by covering all U.S. government support (including financing from the Overseas Private Investment Corporation, Ex-Im Bank, the Millennium Challenge Corporation, and USAID).

As importantly, the plan commits the Administration to “work actively to secure the agreement of other countries and multilateral development banks to adopt similar policies as soon as possible.” That sort of leadership will be critical, since past attempts to limit financing of new coal plants by multilateral development banks have run into significant opposition. A bright-line position from the U.S. government could be crucial in providing clarity on the issue and helping to push the world away from coal.

Ultimately, the international impact of the President’s speech and Climate Action Plan will depend on the emissions reductions that result. Carried out ambitiously, the steps announced yesterday could help put the United States on the path to cut greenhouse gas emissions 17% below 2005 levels by 2020 – meeting the target that the U.S. inscribed in the Copenhagen Accord in 2009.

Making good on that pledge, even in the face of intransigence by the U.S. Congress, would provide a welcome sign of renewed U.S. leadership. Today’s climate plan is an important step in the right direction.

Also posted in United States|: | 2 Responses
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