EDF Talks Global Climate

California and Mexico: Valuable teammates in the fight against climate change

en español  |  For nearly a decade, California’s landmark climate change law, AB 32, has been widely recognized for its efforts to curb greenhouse gas (GHG) emissions and build a low-carbon future.

Mexico flag and palm tree

Working together, California and Mexico can maximize the mutual benefits of setting high environmental standards to build low-carbon economies for the future. (Photo credit: Flickr user gabofr)

While climate action in Washington, D.C. continues to be stymied, our neighbor to the south is a key player and emerging leader on the global climate stage and is willing and able to join California in the fight.

Mexico has been a leader in advancing UN global climate change talks and recently passed its own historic climate change law.

These actions have garnered much attention from the international community, including Governor Jerry Brown.

In fact, his administration has indicated it is reaching out to Mexico on climate change, and just this week we’ve learned that Mexico’s President, Enrique Peña Nieto, is planning a visit to the Golden State.

The opportunities here can’t be overstated. As Governor Brown pointed out in his 2014 State of the State Address, if we want to move the needle on cutting carbon pollution, California can’t do it alone.

The collaboration between California and Mexico could be a powerful force to move global action on climate change forward, while creating mutual benefits. And, the partnership is both a natural and practical one.  California and Mexico have deep cultural, political, and economic ties that bind their histories, and climate change represents an opportunity for leaders on both sides of the border to work together to shape our collective future.

There are five primary areas where Mexico’s and California’s existing efforts to curb climate change align:

Climate efforts in California and Mexico
 CaliforniaMexico
1. Comprehensive climate change lawsPassed in 2006, AB32, the state’s landmark climate law, sets a declining cap on emissions in sectors producing the most GHG pollution. The law confirmed California's commitment to transition to a sustainable, clean energy economy, helped put climate change front and center on the national agenda and spurred similar action by states and regions across the U.S.In 2012, Mexico passed a broad climate change law with ambitious goals for reducing GHGs. Mexico’s climate change law does not yet mandate its GHG targets, but rather establishes voluntary targets comparable in scale to California’s mandatory limits. It also sets a comprehensive institutional, technical, and legal plan to help achieve those goals. This historic program is being built right now.
2. Climate policy strategiesAB 32 lays out a strategy and a comprehensive set of actions including:

  • Expanding and strengthening energy efficiency programs and building and appliance standards.
  • Achieving a statewide renewable energy mix of 33% by 2020.
  • Developing a California cap-and-trade program that links with other partner programs to create a larger market system.
  • Establishing targets for transportation-related GHG emissions for regions throughout California.
  • Adopting and implementing direct measures to reduce emissions and protect public health, including California's clean car standards, goods movement measures and the Low Carbon Fuel Standard.
Mexico’s climate change strategy focuses on areas that align with California’s vision of a lower carbon future:

  • Accelerating a transition toward clean energy sources
  • Reducing energy intensity through energy efficiency and conservation
  • Building sustainable cities
  • Reducing particulate pollution and short-lived climate pollutants.
  • Improving management of agricultural and forest lands
3. Economic efficiencyCalifornia’s successful carbon market provides a great example of how environmental and economic policy can work hand in hand.  It is also spurring innovation and investment in a clean and efficient economy while benefiting the state’s most disadvantaged communities.Mexico is laying the groundwork for market mechanisms. From the potential for emissions trading to renewable energy markets, the country’s law prioritizes economically efficient means to achieve its climate goals, but more work is needed.
4. Historic energy reformA majority of California’s emissions come from its energy sector, including transportation fuels. The Low Carbon Fuel Standard (LCFS) uses a market-based cap and trade approach to lowering the greenhouse gas emissions from petroleum-based fuels like reformulated gasoline and diesel. The LCFS slowly changes the California fueling system by providing opportunities for all fuel types to improve and grow.Energy reform is creating an unprecedented host of opportunities in Mexico. The majority of Mexico’s emissions come from its energy sector, including electricity generation and the production and burning of transportation fuels. An overhaul of long-standing energy monopolies creates new opportunities for developing renewable energy, cleaning up energy production and producing cleaner transportation fuels.
5. Natural resource protectionCalifornia’s climate law may permit a small number of credits from Reducing Emissions from Deforestation and forest Degradation (REDD) to be used in its carbon market. This would reward indigenous and forest-dwelling communities, potentially including those in Mexico, with incentives for ecosystem protection.Mexico is building models for comprehensive programs to reduce emissions from forest destruction through REDD. The cutting and burning of tropical forests worldwide contributes more GHG emissions each year than the entire global transportation sector. Mexico’s forests are a vital resource for its rural population and home to some of the world’s richest areas of biodiversity. Incentivizing best practices in agricultural production also targets a significant source of emissions from land use.

It’s become abundantly clear that international partnerships are key to effectively reducing GHG emissions, preventing the most disastrous effects of climate change, and building resilient economies that will help protect the planet for future generations.

Ultimately, California can catalyze action outside of its borders with partners like Mexico, amplifying the impact of our efforts to cut carbon pollution. Working together, California and Mexico can maximize the mutual benefits of setting high environmental standards to build low-carbon economies for the future.

(This post originally appeared on EDF's California Dream 2.0 blog on Mar. 4)

Posted in Mexico, United States|: | Leave a comment

How Mexico’s reforms open new doors for reaching clean energy and climate goals

(This post originally appeared on Foreign Policy Blogs on Feb. 24)

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With a new climate change law and President Enrique Peña Nieto's overhaul of federal oil and electricity monopolies, Mexico now has important opportunities to meet renewable energy and emissions reduction goals and grow its economy. Credit: Edgar Alberto Domínguez Cataño

Mexican President Enrique Peña Nieto’s major policy reform proposals, on everything from new taxes on soda pop to amending the 70-year constitutional prohibition on foreign investment in Mexico’s petroleum sector, have swept through that nation’s congress with breathtaking speed.

The reform agenda did not come as a surprise to anyone paying attention. Peña Nieto had campaigned on a platform of increasing economic growth and jobs through major (and controversial) reforms. The energy reform restructures and opens up Mexico’s federal energy monopolies to foreign investment — a major goal being to boost the country’s oil and gas production.

But in all the discussion of shifting the global energy map, a critical potential is being overlooked: The overhaul of Mexico’s federal oil and electricity monopolies also breathes new life into prospects for making the energy sector cleaner and opening the door to green growth in the long run.

Mexico now has important opportunities to meet renewable energy and emissions reduction goals and grow its economy.

Energy and climate goals

Mexico’s new climate change law, which I’ve written about previously, sets voluntary national targets to reduce Mexico’s total emissions to half of 2000 levels by 2050 and requires Mexico to get over a third of its electricity from renewable sources by 2024.

At present, Mexico’s energy sector is responsible for roughly 65 percent of its national greenhouse gas emissions and renewables make up a small fraction of electricity production. Over the last decade, multiple independent analyses have shown certain measures in the energy sector could save or even make Mexico money while keeping millions of tons of carbon out of the atmosphere.

So, if Mexico’s energy sector could make money while modernizing and reducing greenhouse gas emissions (seemingly a win-win), what’s the hold up? Some of the most significant barriers have been a shortage of new capital to invest in modernization, efficiency, and long-term upgrades, as well as old-school inertia and institutional resistance to doing things differently.

But much of that old system, without a doubt, is changing now.

Moving toward a greener future

The latest reforms and the 2012 climate change law lay the groundwork for the country’s transition from relying on an aging infrastructure, old technologies and heavy fossil fuel dependence to a green growth future.

1. Emissions reduction targets

Mexico has committed to reducing its emissions 30 percent below business-as-usual levels by 2020 and 50 percent below 2000 levels by 2050. While voluntary, the targets it set at the U.N. climate negotiations in 2009 and reiterated in its climate law are a serious commitment on an international stage, and Mexico’s high-profile leadership on climate change should not be taken lightly. Experts from Mexico’s environment ministry and National Institute of Ecology and Climate Change based these targets on extensive analysis — and they were put on the table precisely because they can be achieved with the right incentives.

2. National emissions registry and green light on emissions trading

Mexico’s climate change law created the national emissions registry as part of its National Climate Change System; polluting industries’ reporting is mandatory, standardized and public. Addressing emissions across an entire national economy through the integrated measurement, reporting, accounting and transparency required by the national registry helps establish the building blocks for emissions trading. (The law also explicitly authorized, but did not require, the development of a voluntary emissions trading system.)

3. Price on carbon in fossil fuels

Fiscal reforms by the Peña Nieto administration include a tax on carbon in fossil fuel products, which aims to reduce Mexico’s emissions by seven million tons annually, and applies to everything, from diesel, to coal, to propane. The amount of the tax is based on the carbon content and linked to global market prices for carbon tons.

Built in to the tax legislation is eligibility for companies to pay the carbon tax through carbon offsets projects of an equivalent number of tons.

4. Pilot trading of carbon credits

The passage of the new carbon tax coincided with the announcement of a new offset trading platform on the Mexican stock exchange where credits for carbon emissions reductions (in tons) can be purchased either for the voluntary market, or in lieu of paying the carbon tax for those tons. This would create, in essence, a mini-compliance market for carbon credits.

It’s unclear what the scale and rules around offsets under the tax law will be, but the platform will mean developing key precursors to a future emissions-trading system — accountability, transparency, tracking of credits and transactions.

While Mexico may be tip-toeing into the emissions-trading-system arena, analysis by Environmental Defense Fund shows developing a full-scale emissions-trading system would be profitable and effective for meeting the country’s greenhouse gas emissions targets. Legally binding targets would be a necessary step in getting there.

5. New opportunities for capital, technology, and transparency

Most of Mexico’s energy infrastructure to meet demand beyond 2020 is yet to be built and it is widely acknowledged that the potential for renewable energy in Mexico vastly outweighs the current development. Opening Mexico’s major energy producing sectors to private investment provides capital, pressure to reduce waste and increase transparency to attract investment, and — particularly in the electricity sector — opens the field to a wide array of clean energy players who previously could not break in to Mexico.

Key pieces of the policy outlined have been driven by different goals and approaches, and of course, spanned a presidential election. But they do provide essential ingredients for a cohesive climate and energy policy and an effective mechanism to get to Mexico’s climate and development goals, and the time is ripe to put them together.

The Peña Nieto administration has already issued its climate change strategy (see my analysis from last June), and a roadmap for implementing climate policy between now and 2018 — just approved by its high-level commission — is due to be released this spring. Legislation to implement the Peña Nieto reforms is being crafted now.

Mexico will face the challenge of balancing the much-hyped economic potential of tapping its fossil fuel reserves with the climate change leadership it has established over the last decade. But as the world aspires to transition toward low-carbon economies that are no longer dependent on the fossil fuel reserves so keenly eyed in Mexico, there is significantly underappreciated opportunity here — to reduce the environmental impact of old, dirty sources of energy, while taking the long view and building a sustainable future economy.

Posted in Mexico, News|: | 4 Responses

California's carbon market could help stop Amazon deforestation

(This post appeared in Point Carbon North America on Feb. 7)

By Juan Carlos Jintiach, Shuar indigenous leader from the Amazon basin, and Derek Walker, Associate Vice President for the US Climate and Energy Program at Environmental Defense Fund

Credit: Dylan Murray

California has a role to play in keeping Amazon deforestation on the decline and giving indigenous and forest communities the recognition and support they need. Credit: Dylan Murray

A recent article in the Journal of Climate predicts that destroying the Amazon rainforest would cause disastrous drought across California and the western United States. Californians are already no strangers to drought – the state is suffering one of its worst on record.

But the research adds an interesting dimension to what we already know from numerous studies about deforestation: that greenhouse gas pollution in California and around the world makes forests, including the Amazon, drier and more susceptible to widespread fires. California may be thousands of miles away from “the Earth’s lungs,” but how we treat our diverse ecosystems directly affects the one atmosphere we all share.

It is good news for everyone that California’s Global Warming Solutions Act (AB 32) – which includes the world’s most comprehensive carbon market – is already helping reduce the state’s greenhouse gas pollution. Amazon states and nations have also greatly reduced their greenhouse gas emissions from deforestation, which collectively accounts for as much greenhouse gas pollution as all the cars, trucks, and buses in the world. California now has a terrific opportunity to show global environmental leadership by helping Amazon states keep deforestation rates headed for zero while helping save money for companies and consumers in the Golden State.

The current world leader in greenhouse gas reductions is Brazil, which has brought Amazon deforestation down about 75% since 2005 and kept almost 3 billion tons of carbon out of the atmosphere. Indigenous peoples and forest communities have played an essential role in this accomplishment. Decades of indigenous peoples’ struggles against corporate miners, loggers, ranchers, and land grabbers and advocacy in defense of their land rights have resulted in the legal protection of 45% of the Amazon basin as indigenous territory and forest reserves – an area more than eight times the size of California.

These dedicated indigenous and forest lands hold about half of the forest carbon of the Amazon, and have proven to be effective barriers against frontier expansion and deforestation. In a real sense, indigenous and forest peoples are providing a huge global environmental service, but that service is almost entirely unrecognized, let alone compensated. And in Brazil, where agribusiness is pushing back hard against law enforcement and reserve creation, deforestation is back on the upswing – increasing nearly 30% last year.

California has a role to play in keeping Amazon deforestation on the decline and giving indigenous and forest communities the recognition and support they need. A program called Reducing Emissions from Deforestation and Forest Degradation (REDD+) gives countries or states that commit to reducing deforestation below historic levels “credits” they can sell in carbon cap-and-trade markets. Getting these programs recognized by California’s carbon market would send a powerful signal that forests in the Amazon and around the world are worth more alive than dead, and would also provide real incentives for further reductions.

Forest community and indigenous leaders from Latin America visited California to engage state leaders and policymakers on the issues of deforestation, indigenous and local peoples’ rights, and potential partnership with the state's carbon market. From left: Juan Carlos Jintiach (Shuar indigenous leader), Megaron Txucarramae (Kayapo indigenous leader) and Lubenay (of a Chiapas forest community).

A few weeks ago, indigenous leaders from Brazil, Ecuador, and Mexico were in California engaging state leaders and policymakers on the issues of deforestation, indigenous and local peoples’ rights, and potential partnership with California’s carbon market. California should insist that only jurisdictions that respect indigenous and local peoples’ rights, territory and knowledge, and ensure that they benefit from REDD+ programs get access to its market.

The successful adoption and implementation of AB 32 is proof that California is leading the nation on effective, market-based climate change policies. But it’s time to take that another step forward. By allowing credits from REDD+ to play a role in the AB 32 program, the Golden State can be a world leader on one of the most significant causes of climate change and take action to protect the health and prosperity of a threatened land and its people.

 

Learn more about REDD+ and California:

Posted in Brazil, Deforestation, Indigenous peoples, REDD|: | 1 Response

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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Does the future of the Amazon rainforest lie in California?

Derek and CA delegation Jan 2014

From left to right: Lubenay, Juan Carlos Jintiach, Derek Walker and Megaron Txucarramae (a leader of Brazil’s indigenous Kayapo tribe).

This post was co-authored by Steve Schwartzman, EDF's director of tropical forest policy, and originally appeared on EDF Voices.

Over the past year, California’s new carbon market has held five auctions, generating $530 million for projects that reduce climate pollution in the state. This is just the start, however, as we believe the program has potential to achieve substantial environmental benefits half a world away in the Amazon rainforest.

We are working with community partners, scientific and business leaders, and California policy makers to craft a rule that permits credits from REDD (Reducing Emissions from Deforestation and forest Degradation) to be used in California’s carbon market, rewarding indigenous and forest-dwelling communities with incentives for ecosystem protection.

California is leading the way

Using California’s new carbon market to reward rainforest protection would be a powerful signal to Brazil, Mexico, and other tropical countries—and to the world—that leaving forests standing is more profitable than cutting them down.

With the right rules in place, California could create an international gold standard for REDD credits that could be adopted by emerging carbon markets in China, Mexico and beyond.

The right technology

There’s a misperception about how hard it is to measure whether forests are being destroyed or protected. Current technology makes it possible, right now. Satellite and airplane-based sensors are already capable of recording what’s going on with high accuracy. This technology enables us to measure emissions reductions across whole states or countries, the best way to ensure that the reductions are real.

The right partners

We need to help pull together the best policy experts, scientists, and environmental organizations to help California government officials write model rules for REDD that can create a race-to-the-top for forest protection around the world. We need to show that trailblazing states – like Acre in Brazil and Chiapas in Mexico – are ready to be partners with California and can deliver the rigorous level of enforcement and program implementation that California requires.

The right time

There’s real urgency to linking California’s carbon market with REDD. Even though Brazil, home to the world’s largest tracts of tropical forests, has cut deforestation by about 75% from its 1996-2005 levels and consequently become the world leader in reducing greenhouse gas emissions, that progress is fragile. Over the past year, agribusiness has been pushing back hard against law enforcement and the creation of protected reserves, and deforestation increased nearly 30%. If we want Brazil to continue reducing its deforestation towards zero, we must provide economic incentives to protect the Amazon, and California can be an important catalyst in doing that.

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Posted in Deforestation, Indigenous peoples, REDD, United States|: , | Leave a comment

25 years after assassination, activist Chico Mendes' vision for change lives on

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Chico Mendes and Steve Schwartzman in the late 1980s at the Nazare rubber estate (in Xapuri, Acre), where they were accompanying American journalists doing a story on the Amazon. (Photo credit: J. B. Forbes)

On December 22nd, it will be 25 years since rubber tapper and environmental leader Chico Mendes was assassinated in his home in Xapuri, Acre in the Brazilian Amazon.

I had met Chico three years before, and on repeated trips to Acre and Xapuri learned from him about the lives of the rubber tappers – workers who collect latex from cuts they make in the trunks of rubber trees – and their struggle to save the forest and their livelihoods from ranchers’ hired guns and chainsaws. It totally changed how I thought about environmentalism and tropical forests.

I organized his two trips to the United States, in 1987 and 1988, set up meetings and interviews, translated for him and generally did whatever I could think of to get the media, policy makers, environmentalists and the public to understand that Chico Mendes’ story and ideas held the key to the future of the biggest remaining rainforest in the world.

No one at the time imagined how profound and far-reaching the consequences of Chico’s life and death would prove to be – but we were friends and I still miss him.

Chico’s life

Chico led rubber tappers in stopping ranchers from cutting down the forest from which local communities lived, as well as resisting and denouncing hired gunmen who threatened leaders of the rubber tappers’ union and drove families from their homes.

After I met Chico in 1985, he worked with EDF and other environmental groups and researchers to hold up and reformulate an internationally financed road-paving project that he feared would exacerbate deforestation and conflicts, and to develop the concept of “extractive reserves” – protected forest areas where government would secure local communities’ land rights, provide health care, education, and invest in sustainable alternatives for generating income.

He was killed by a rancher after stopping him from clearing forest where he and the local community wanted government to create one of the first extractive reserves.

Chico at times sounded hyper-idealistic, but he was politically brilliant.

On learning what scientists and environmental organizations were saying about tropical forests – that they were central to creating the rain that agriculture depends on, stabilized the global climate, and that their destruction was causing the extinction of more plants and animals than at any time in the last 60 million years – he was immediately able to see the global implications of the rubber tappers’ local struggle, and the potential for the local struggle of the global environmental movement. He formulated a vision that brought together unlikely allies for transformative change.

Social activists and environmentalists have both claimed Chico, and sometimes have acted as if he could only have been one of those things. They are wrong.

He clearly understood the political advantages of environmentalism in the rubber tappers’ fight to the death for the forest, but also the importance of the rubber tappers’ fight for environmentalism and the future of the forest as a global good, as environmental historian Jose Augusto Padua has recently noted.

Chico told an interviewer shortly before he was killed:

Our biggest assets are the international environmental lobby and the international press… It was only after international recognition and pressure that we started to get support from the rest of Brazil. (p.51)

He told the same interviewer:

We realized that to guarantee the future of the Amazon, we had to find a way to preserve the forest while at the same time developing the region’s economy… we knew it was important to stop the deforestation that is threatening the Amazon and all human life on the planet… So we came up with the idea of the extractive reserve. (p.41)

Chico’s legacy

The extractive reserve was an idea that Chico launched and is now flourishing. The idea of the extractive reserve comes down to making the forest worth more alive than dead, in the first instance for the people who live in it, and this idea is very much alive.

Chico died, but his vision for transformative change won anyway.

Before Chico, people in Brazil, if they thought about it at all, thought that slashing and burning the Amazon forest was the price of progress. Today, not even the head of the agribusiness caucus of the Brazilian Congress – who fought very hard to relax legal restrictions on forest clearing – will say that Brazil needs to cut down more forest to grow, and the overwhelming majority thinks that deforestation has to stop.

Chico would be heartened by the good news about Amazonian deforestation. It is down, about 75% below the 1996–2005 average, in large part because of the policies designed and put into practice by Chico’s close friend and colleague, former Environment Minister Marina Silva. Agricultural production is up over the same period.

Because of this, Brazil is the world leader in reducing greenhouse gas emissions, at over three billion tons of carbon. Creating more extractive reserves and other protected areas, and recognizing indigenous territories was central to the plan.

In Acre, Chico’s colleagues, politically marginal during his lifetime, came to power ten years after his death. They have stayed in power ever since, and made the state a sustainable development leader in the Amazon and the world, reducing deforestation, increasing GDP, agricultural production and greatly improving healthcare and education for the population.

Just last month, the United Nations Framework Convention on Climate Change approved rules for countries and states that reduce their deforestation below historical levels to sell those emissions reductions in carbon markets or to public sector donors.

The fight for the forest in the Amazon, and elsewhere, is far from over, and there has been huge pushback against environmental law enforcement, forest protection and indigenous land rights.

Chico believed that out of conflict and struggle could come transformative change, and so it has, even if not just as he thought. We should believe it too, and keep Chico’s vision and ideas alive.

 

For more information:

Posted in Brazil, Deforestation|: | 1 Response
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