Tag: AAU

CAN Submission - Framework for Various Approaches - March 2012

 

Admitted UNFCCC observer organizations are invited to submit views, including experiences, positive and negative, on matters referred to in paragraphs 79 and 80 of the Durban decision of the AWG-LCA which establishes a work program to consider a Framework for Various Approaches (Framework). CAN welcomes the opportunity to submit views.  

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10 Points of Action

Ministers – thank goodness you are here. Your delegations may have been burning some midnight oil in the last few days – but they have left the hard decisions for you! Here’s what your agenda for the next 4 days looks like:

1.  Don’t just “Mind the Gap” – do something! Ministers, at Durban you must show that you live on the same planet as the rest of us and acknowledge that the current mitigation pathway puts us on track for over 4° C warming. You must explicitly acknowledge the 6 to 11 Gigatonne gap, agree to a 2012 work plan to close the gap by increasing developed country targets to at least 40% by 2020, and provide guidelines and timeframes for NAMAs to be registered and supported where required. The ambition work plan must include clear markers through 2012, including submissions, technical papers and a dedicated intersessional meeting, to ensure we don’t have another year of wishy washy workshops with outcomes.

2. Commit for the long term. Negotiators have made no progress at all in setting a peak year and a long term global goal for emissions. Ministers now should explicitly agree that each country contribute their fair share to the globally needed mitigation effort, leading to a peak by 2015 and a reduction of global emissions of at least 80% below 1990 by 2050.

3. Stop spinning wheels in the Review. Ministers need to ensure that the Review will be effective, and limiting the scope will help it get off the ground as an effective instrument. We must focus on the important things: reviewing the long-term goal and the overall progress towards achieving it. Leave the biannual reports under MRV to cover the inputs like the means of implementation.

4. High Time for legally binding. A 5 year long second commitment period of the Kyoto Protocol is an absolute necessity as it contains important architectural elements which are crucial to ensure that mitigation commitments are legally binding and have environmental integrity. Nobody believes that a temperature rise of 4° C might be OK. So now is the moment to act decisively. An LCA mandate to agree a comprehensive legally binding instrument can build on the KP. Parties need to go beyond their long stated positions and immediately kick off negotiations toward a comprehensive, fair, ambitious and binding agreement to be agreed no later than 2015.

6. KP is essential – but it must have integrity. When added together, loopholes in the KP could wipe out Annex I ambition for the second commitment period.

In LULUCF, hidden and unaccounted emissions could significantly undermine Annex I targets, and cause us to doubt your commitment. Ministers must therefore ensure emissions from forests and land use are accurately accounted and reject the options on the table with the lowest environmental integrity.

All of the parties to this relationship know that the hot air / carried over AAUs is a bad joke that threatens to sour our relationship.  To keep it pure we need you to retire your surplus AAUs, or at least reduce them to 1%. Flexible mechanisms need clear rules and governance structures to avoid double counting of both emissions and finance, strengthen additionality testing and ensuring the standardization frenzy does not leave us with a highway for free-riders. Let’s start by keeping CCS and nuclear out of the CDM and let’s exclude coal power projects. Last but not least, we do indeed need stakeholder involvement in the CDM. Don’t back down, we are counting on you!

PS: CDM’s little brother JI has been up to a bunch of no-good stuff: hot air gussied up in new clothes (ERUs) is still hot air.

7. Fill the Fund. Operationalising the GCF in Durban is essential but not nearly enough – an empty fund is no good to anyone. We need initial capitalization of the GCF from developed country Parties in Durban. Reaching $100 billion per year by 2020 will require a commitment to scaled up finance from 2013 onward and clear progress on innovative approaches to generate finance. In Durban, parties should move forward on the establishment of mechanisms in the shipping and aviation sectors in a way that reduces emissions, generates finance, and ensures no burdens and costs on developing countries. Countries must also agree to a detailed one year work programme under the UNFCCC to consider a full range of innovative sources of public finance and report back to COP 18 with a proposal for action.

8. Gear Up and Deliver Technology. Technology is heading in the right direction, but speed is needed! Don’t be held back by other laggards. The Tech Mechanism could be operational by the end of COP 18.

9. Feel the Love for Transparency and Stakeholders. Your negotiators excised stakeholders’ right to participate from the IAR text and subject to heavy bracketing in ICA. But we know, Ministers, that you recognize the worth of engaging stakeholders to create a better process – rather than having us only campaign from the outside. Current text also falls short on common accounting rules for Annex I countries and clarification of pledges for all countries. Surely we’ve learned from the financial crisis! Robust reporting, such as Biennial Reviews and Biennial Update Report guidelines, including tables for reporting actions, and a common reporting format for finance must be agreed in Durban, so countries can complete their biennial reports in time for the first review. And where would this relationship between us and the planet, be without compliance for our commitments!

10.  An ambitious adaptation package at the African COP. Good agreements on Loss and Damage and the Nairobi Work Programme have already been reached. Wrapping up the package will require agreement on a strong Adaptation Committee including active civil society observers and direct reporting to the COP (as well to the SBs when COP does not meet). Furthermore, guidelines for National Adaptation Plans for Least Developed Countries must be adopted, plus modalities on how other developing countries can take these up. The prioritisation for LDCs must of course not be undermined.

A strong role for local, affected communities and civil society in national planning processes, building on the principles agreed in the Cancun Adaptation Framework, is essential. Finally, Parties must ensure that the Adaptation Fund does not dry up because of decreasing CER prices and lack of new pledges to the Fund from developed countries.

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Time to Get Serious About Loopholes

Here’s a quick reminder: According to the latest UNEP report, the weak pledges from Annex I countries get us only about a third of the estimated emissions reductions that are needed if we want to have a two-in-three chance of avoiding more than 2° C warming. Unfortunately we have even more bad news: loopholes!

Loopholes are weak rules that undermine reduction targets, usually resulting from political bargaining. The largest loopholes are:

  • The carry-over of ‘hot air’ due to the over-allocation of AAUs during the first commitment period.
  • ‘Creative’ accounting rules for forestry and land-use emissions (LULUCF) for Annex I countries.
  • CDM credits from projects that are either over-credited or not additional (would have been built anyway).
  • Double counting – attributing emission reductions to both developed and developing countries.
  • Emissions from aviation and shipping (“bunkers”) currently not accounted for under the Kyoto Protocol.

We took a closer look at the loopholes and compared their total size to the cumulative emission reductions that could be achieved with the current Annex I pledges. We found that the current ‘loopholes’ in the system could negate their pledges.

In the worst case, they could leave Annex I countries with sufficient allowances and credits to revert to a BAU trajectory, and could even enable the carry-over of surplus allowances beyond 2020.

As you can see, a graph says more than 1,000 words. Our findings match those of the UNEP Report, the Stockholm Environment Institute and others.

The size of these current loopholes is staggering. Strong action is required now to effectively and efficiently close these loopholes if we want to preserve the possibility of staying below 2° C warming. 

None of the technical issues around the loopholes are insurmountable.  If developed countries are serious about fulfilling their responsibility to lead the fight against climate change, they need to put ambitious targets on the table that are in line with the science and do away with all these rotten loopholes. 

There is no plan(et) B. Every passing day of inaction closes the door that much further on preventing catastrophic climate change.

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AAUs: Don’t Let ‘Hot Air’ Go Stale

‘Hot air’ (surplus AAUs) must be properly addressed in Durban. This is perhaps one of the most important points on which agreement needs to be reached for the second commitment period of the Kyoto Protocol.  The total amount of AAUs is around 7.5-10 Gt CO2e – in other words, roughly one-third of the current 2020 emissions reduction targets pledged by Annex I countries.  This ‘hot air’ was created not because of effective climate policies but rather the economic crisis of the 1990s.

The biggest holders of surplus AAUs are Ukraine, Russia, Belarus and EU members from Central and Eastern Europe. Insisting that the full AAU surplus carries over to the second commitment period makes already weak pledges from developed countries even weaker.

Parties have several choices how to deal with this, from  full carry-over to full restrictions. Dear delegates – don’t let this hot air go stale! It’s easy: ECO calls on Parties holding surplus AAUs to simply retire their ‘hot air’ by the end of 2012.  If Parties are getting cold merely thinking about their hot-airless future, a very limited carry-over of surplus to the second commitment period may offer a cozier solution.

To make sure these hot gases don’t foul our future, just a few small things are needed.  Any additions to AAUs for the second commitment period have to be limited to 1%. Surplus-holding countries must commit to climate-friendly investment of revenues through transparent and internationally monitored Green Investment Schemes (GIS) which are subject to MRV, and/or to funds supporting climate actions in developing countries. Last but not least, AAUs cannot be used for compliance in domestic cap and trade systems in Annex I countries.

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UNEP: Bridging the Gap

Many delegates at last year’s COP in Cancun failed to take note of a rather large elephant lurking in the meeting rooms and corridors. And now that elephant has made its way to this COP – and has grown even larger.

Just last week, the UN Environment Programme issued an updated version of its landmark Emissions Gap report. Once again, UNEP concludes that by 2020 global emissions need to be reduced to 44 gigatonnes if the world is to be on a credible pathway to keeping warming below 1.5° C or even 2°.

First the bad news – UNEP finds that the gap between what is needed and what is on the table increased even more over the past year. Even if all countries go to the top end of their pledge ranges to cut emissions, and all loopholes are closed, the gap in 2020 will still be 6 gigatonnes – as much as the annual emissions of the US.

In the real world the gap is more likely to be around 11 gigatonnes. Developed countries are stuck on weaker, conditional pledges and their targets are riddled with loopholes. In fact, with the current weak pledges and lenient accounting rules, UNEP says that developed country emissions will be hardly any different than business as usual.

But there is also some good news in the report. UNEP says that with strong action now, it is possible to do even more than close the gap, without significant technical breakthroughs or prohibitive cost. How? By strongly focusing on energy efficiency and clean, renewable energy. By a major drive to halt deforestation. By improved waste management and agricultural practices. And by taking action on the currently unregulated sectors of international aviation and shipping.

To enable these real, practical solutions to prosper, the ambition of current pledges must be increased. All countries can and must do more. But first, developed countries need to raise their game dramatically. The Cancun Agreements recognised that developed country targets should be in the range of 25-40% below 1990 levels.  In ECO’s view, the ambition must rise above 40% if you are serious about 2° C – let alone the 1.5° C small islands need to keep afloat.

In a rational world, countries at Durban would listen to the trumpeting of the elephant and increase their pledges here and now. So ECO lives in hope.

Land use, land use change and forestry. UNEP says that weak LULUCF rules could contribute 0.6 gigatonnes to the emissions gap. These rules would allow developed countries to increase emissions from forestry activities while still claiming credits. Parties must discard these bad rules, and instead focus on accounting options with environmental integrity.

Surplus AAUs. The use of surplus allowances from the first commitment period could increase global emissions by as much as 2.9 gigatonnes in 2020, UNEP says. Strong rules to prevent or minimise the carryover of this surplus are essential.

Double counting of offsets against both developed country targets and developing country pledges could, along with fake offsets, increase the gap by 2 gigatonnes. Governments can and must rule this out once and for all.

Here in Durban, governments must also agree a robust process to formally recognise, quantify and close the gap. They must also agree to a peak year of 2015 in the Shared Vision. And they must agree a second commitment period to the Kyoto Protocol, alongside a mandate for a comprehensive legally binding agreement to be concluded no later than 2015 and enter into force on 1 January 2018, a timeline that will not rule out the prospects for an early peak in emissions.

Delegates should pay heed to the wise words of African proverbs. “A man who is trampled to death by an elephant is a man who is blind and deaf”. Or, more positively: “When an elephant becomes as small as a monkey, it ceases to be an elephant.”

If you want to find out more about the Bridging the Emissions Gap report, UNEP is holding a side event in the African Pavilion at 18.30 on Thursday 1 December.

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Umbrella Series Part 4: Here Comes the Russian Swan Song!

In Bangkok, Russia presented its different baselines and scenarios of Russian greenhouse gas emissions. These scenarios vary from an unrealistically fast economic growth based on old carbon technologies leading to a 14% emission reduction by 2020, to a more reasonable scenario with greenhouse gas emissions at -28% at 2020. While challenging, this ambitious scenario could be achieved through energy savings and energy efficiency measures, but the real Russian puzzle was not revealed in Bangkok.

 What Russia did not say was that these scenarios exclude any contributions from LULUCF and AAU carry over. That is, Russia already assumes that it will not carry forward its existing hot air (ECO and the atmosphere say thank you Russia!), and accepts that the reduction potential is noticeably bigger through reductions in the LULUCF sector.

In 2009, Russian greenhouse gas emissions without LULUCF were at -35%, but with LULUCF Russia was at -59% from 1990 levels! ECO believes that Russia should raise its emission reduction commitment to a minimum of -25% by 2020 -- without LULUCF and AAU carry-over. Including LULUCF, emission reductions targets for Russia could increase to at least -40% by 2020.

If this does not happen, we will see Russia, together with Ukraine and Belarus, undermining the environmental integrity of global action on climate change.

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Umbrella Series Part 3: Ukraine Needs Realistic Goal Posts Urgently!

As an economy in transition, Ukraine, a member of the Umbrella Group, is a country with a special status in the UNFCCC framework. Nevertheless, this special treatment cannot extend to the setting of 2020 targets. Experts from the International Institute of Applied Systems Analysis (IIASA) analyzed and compared the pledged emissions reduction targets of all Annex I countries. IIASA concluded that Ukraine’s emissions reduction pledge of 20% below 1990 levels by 2020 was highly inadequate, since Ukraine’s business as usual scenario for 2020 will be as much as 54% below 1990 levels. Moreover, such a target means that Ukraine expects a huge amount of new hot air for trading. One should characterize Ukraine’s proposal not as an actual emissions reduction target, but a “no emission reduction measures necessary” target.

Experts have estimated that Ukraine could easily take a target of at least 57% below 1990 levels by 2020, with the added benefit of actually making money! With its National Climate Mitigation Strategy not yet in place, Ukraine should perhaps use this opportunity to develop a mitigation strategy that is not only realistic and economically viable but also delivers for the climate. ECO would be very interested to hear a presentation from Ukraine about its national climate change policies and assumptions and conditions related to a 2020 target. Such a presentation was notably missing in the workshops in Bangkok and Bonn.

While it is obviously one of the Ukraine’s priorities to see a continuation of its current special status, it should understand that it cannot also have its other demands met, like full carry-over of AAUs or continuing with a way-above business as usual scenario target.

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Get the Slides Out – But Don’t Tell Us Something We Already Know

As Parties prepare their slides for the two upcoming mitigation workshops, ECO invites Parties to leave out those slides that do not contain new information but focus instead on what will help closing the gigatonne gap.

We would like to see on the first slide of each presenting developed country Party, the true emissions in that country in 2020 – after taking into account assumptions on LULUCF accounting, AAU carry-over and carbon offset use. Countries should further be explicit about what efforts they intend to make domestically.

 Developed countries, with pledges below the 25-40% IPCC range, should show on their second slide which developed countries are going to compensate for their gap by making higher cuts instead, and how that goes along with a fair share of the globally needed mitigation effort. ECO believes that would guarantee some interesting discussions.

The third slide could include information on specific national circumstances. For instance, ECO is already sharpening its pencil awaiting anxiously a slide by Canada, that explains  how  a  pledge  that  is  even  lower than Canada’s Kyoto 1 target constitutes progress. Or take Ukraine’s (or, say, Russia’s) third slide, that, ECO suggests, should show how a target designed to bring in millions of tonness of hot air into the system will help close the gigatonne gap. Or, have the EU explain its continued refusal to move to a 30% emissions reduction target (or, better, the 40% that ECO understands gets the EU closer to its fair share of international action in line with the cold hard facts of science), despite growing consensus underpinned by economic studies that doing so would create net economic benefits for the EU even in the absence of increased action by others.

Generally, ECO encourages all developed countries that have pledged reduction ranges to show, on a fourth slide, under which conditions they will move to the high end of their pledges, and in particular what part of these conditions has already been met and what would it take to get away with the rest. ECO would be very interested to hear from countries like Australia on preliminary assessments of the fulfillment of such conditions.

ECO has some ideas for slides from developing countries, too. They should clarify their assumptions on baseline projections until 2020, for both emissions and underlying key factors such as energy use or population growth, and principally any additional information that allows experts to assess what the emissions will be in those countries. ECO believes that a slide illustrating the expected impact and listing costs of all envisaged measures would help other Parties understanding the offers and needs of each country, i.e. what countries can do on their own and what support they need for doing the rest. And ECO is looking forward to see presentations from countries like Turkey, DRC and Thailand to name a few, that, as ECO has been assured, have their own domestic targets and measures but have yet to insert them into the famous INF documents.

Following the workshops, Parties should fully incorporate their findings into the formal negotiations. After all, the purpose of these workshops is to better understand each others’ pledges, to identify the size of the gigatonne gap, to get developed countries move to the high end of their pledged ranges (as a first step), and launch, in Durban, a process that would actually mandate further talks to agree on further action to close the gap to 1.5°C.

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