Tag: Bangkok 2012

It's the Politics, Stupid!

The UNFCCC wouldn’t be the UNFCCC if the United States of America didn’t ruffle some feathers. So, right on cue, Friday’s intervention by US lead negotiator Jonathan Pershing in the ADP ambition roundtable certainly did the trick by labelling, yet again, the UNFCCC as a long and winding road to nowhere. This comes less than a month after Dr. Pershing's boss, Todd Stern, rocked his fellow negotiators with his assertion that negotiating "a treaty with binding emission targets stringent enough to...[hold] the increase in global average temperature to less than 2° centigrade above pre-industrial levels" is "entirely logical" but "ignores the classic lesson that politics – including international politics – is the art of the possible."

After a firestorm of reactions to his speech from both negotiators and NGOs, Stern issued a clarification that the US still supported the 2 degree goal agreed to by President Obama and other world leaders.  But the damage was done.

Don’t get us wrong – ECO, along with most others here in Bangkok, shares the frustration at the glacial (at least there are still glaciers somewhere) speed at which these negotiations proceed. But to paraphrase Bill Clinton: it’s the politics, stupid! The continual swipes and undermining of this process demonstrates the bad faith of the US.

ECO agrees with the US – and virtually everyone else – that other processes must help deliver the much greater ambition required to save civilisation as we know it.  We need all hands on deck. This battle can’t be won in the confines of the UNFCCC alone. But the UNFCCC is an essential element of an effective global response to climate change, and the US vision of a fragmented, bottom-up international process will never deliver enough ambition to keep us well below 2 degrees. Our experience with the agreements reached first in Rio, and more recently in Copenhagen, clearly proves this.

Higher degrees of trust and accountability are required to encourage greater ambition. Isn’t this why the US pushed so hard in Copenhagen and Cancun for more robust MRV from China et al? It claimed that reassurances of other countries' ability to meet their pledges is essential to persuade its Congress and public that the administration's pledge to reduce US emissions 17% below 2005 levels by 2020 (read: -4% based on 1990 levels) is reasonable. But now that the shoe is on the other foot, and it's constructive action that is demanded of the US to encourage others to act, all we get are claims of

“NO WE CAN'T”

The assertion that top-down agreements produce lower-ambition results is nonsensical. It goes without saying that complementary investments to support change in the real economy are critical to change a country’s perception of its national interest. But top-down agreements are essential to incentivise ambition, as only a serious multilateral regime can convince those whose capital allocation decisions shape the economy that a high-carbon business model will expose them to greater risk and hit their returns harder than betting now on a low-carbon future.

The Kyoto Protocol, though far from perfect, gave us a legal framework that culminated in European taxpayers and companies investing at least €40 billion to purchase international carbon credits. The Kyoto Protocol spurred on Europe’s renewable energy investments, which have helped create a global revolution in renewable energy investment now outstripping annual new fossil fuel-powered investments. Thanks to Kyoto, it is Europe’s energy regulations and standards which emerging economies are emulating, and which underpin a global market worth US$3 trillion. Without Kyoto, China would not have decided to implement a Five-Year Economic Plan based on the core assumption of rapidly expanding global markets in clean energy. It's clear that Kyoto, a top-down multi-lateral agreement, has shaped global economic reality. 

The sluggish progress we witness at these negotiations is not due to the intrinsic nature of the UN system, but is truly a reflection of the woeful political leadership of countries like the United States. It's ironic that a decade after the world was compelled to defend the Kyoto Protocol against the vicious and unfounded attacks of the Bush administration, the US is yet again proving a grave threat to the progress needed in these talks.

ECO would suggest the next time Dr. Pershing feels the urge to make yet another comment about the rapidity and effectiveness of agreements here in the UNFCCC, that he stop and take a long, hard look at what the US is doing, compared to its fair share of the much greater global effort needed to address the urgent threat of climate change.

Region: 

Is It the Grave For “Noting With Grave Concern”?

“We believe that the world has had a lot of time to think. What we need is not more thinking. What we need is more action”. Inspiring words indeed in Durban from the EU, LDCs and AOSIS (the artists formerly known as the Durban Alliance). In the whirlwind after COP17, Europe was at pains to stress the importance of its victory on the inclusion of language in the Durban Platform “noting with grave concern” the significant (understatement of the year) gap between aggregate mitigation pledges and pathways consistent with below 2 degrees C. This was the foundation of the alliance with the LDCs and AOSIS. Further, in Bonn, ECO witnessed an epic battle by these groups and others to include pre-2020 ambition on the agenda.

But what have we here in Bangkok? Has Europe’s jet lag gone to its head? It appears as though the EU has abandoned its most vulnerable country allies, and is instead cosying up with the notorious ship jumpers – the US, Japan, Russia and Canada – on the critical issue of raising developed country targets pre-2020. Indeed, in the KP discussion on numbers, one EU Commission official went as far as to say that raising the EU’s 2020 level of ambition to 25% “is not reality, it is wishful thinking”. Given its urgent call for much greater ambition, ECO calls on the EU to commit to at least 30% domestic emissions reductions, and 40% overall, below 1990 levels by 2020. In addition to where it comes down on its 2020 target, the EU’s decision on how to handle AAUs will very much affect the overall level of ambition, as will its provision, along with other Annex II countries', of finance in a post-FSF world.

But let’s be fair, the EU is by no means the worst culprit here in Bangkok. That dubious distinction goes to the United States, which, despite agreeing to the Durban Platform  language on the urgent need to increase pre-2020 ambition, is now asserting that there should be no expectation of it or the other KP ship-jumpers increasing their pledges. Or – heaven forbid – turning them into QELROs. (Read on – ECO has more to say about the US later in this issue.) Instead, it’s all about everyone else. ECO would like to remind the US that all Parties “noted grave concerns” about the gigatonne gap, and notes the US would be first to say the ADP is “applicable to all Parties”. So yes, USA – this means you! And as for Japan, Canada and Russia, just because you’re cowering behind the US, doesn’t mean ECO will not name and shame you (and you too Australia and New Zealand, if you fail to sign up and ratify a second Kyoto commitment period).

Just last week the planet suffered another severe blow from lack of mitigation ambition. The Arctic – our planet’s canary in the coal mine on climate change – suffered record ice loss, according to scientific reports. Last week’s figure not only smashed all other records, but also came three weeks premature! The canary’s not dead yet, but it is gasping for breath.

And that means that the hundreds of millions of people here in Thailand and South East Asia, as well as around the globe, who are already suffering the impacts of the climate crisis, will suffer far more unless urgent action is taken. The earth is in grave danger. Developed countries must act now by committing to reduce their collective emissions by at least 40% below 1990 levels by 2020. ECO notes (wait for it...with grave concern) that their current pledges are woefully inadequate.

ECO agrees with Colombia, which in the ADP roundtable on ambition yesterday, noted that dealing with climate change is an urgent matter of global security. As Brazil further noted (so much noting!), many analysts think climate change is on par with global thermonuclear war as a threat that we have to do our utmost to avoid.

Mission Not Accomplished!

The 5-year mission of the AWG-LCA is about to end, without going anywhere very boldly, or finding much new life. The frustrated and deeply divided crew of the USS Bali are already packing their bags, and preparing to jump over to the Durban Platform as soon as they dock in Doha in a few months.

The AWG-LCA will leave in its wake some new institutions, actions and achievements on various fronts, which may yet prove their worth. But in one crucial area there remains a gaping hole – sources of financing for the next year and out to 2020. Without adequate scaled up financing, most of what has been achieved by the LCA will be merely an empty shell. Yet with three months to go, there are no firm commitments or assurances of financing after 2012, when the Fast-start Finance period ends.

Having created the Work Programme on Long Term Finance, and mandated it to report directly to the COP in Doha, developed countries in the LCA are now claiming mission accomplished. That is clearly not the case. Right now, there is little confidence that scaling up climate finance will be given the attention it so desperately deserves.

Once the report of the Work Programme is finalised, there will only be a short window in the Doha COP itself to consider its contents and recommendations, decide on the scope of a COP decision and generate and negotiate the actual text. This is a risky strategy, and is unlikely to do justice to the issue or the Work Programme report, especially since some developed countries are keen to shut down any discussion of scaling up finance.

This is why ECO backs the call by developing countries to keep finance on the LCA agenda and work up some draft text here in Bangkok for a decision in Doha. Political decisions are needed that guarantee sources and scaling up of financing. These are a central element of efforts to achieve the objectives of the Convention and ensure it won’t drop off the agenda or be sent to languish in the SBs.

The list of finance issues that need to be addressed in Doha, either by reaching some conclusions or finding a future home, is substantial. The LCA can lay the groundwork now for an adequate outcome at COP18 by getting some clarity on the scope of the issues to be addressed, and creating some draft text. Of course, the final decision will only be decided in Doha, informed in many areas by the report of the Work Programme on LTF. When the COP considers the report of the Work Programme on LTF in Qatar, it can be informed by the deliberations of the LCA, and perhaps then find creative ways to divide up the different issues requiring decisions.

So what issues need decisions in Doha?

1.) Commitments of climate finance from 2013 to 2020, or at the very least for the mid-term period from 2013-2015. There must be at least a doubling of Fast-start Financing levels from 2013, with agreed criteria for new and additional finance

2.) Commitments to the initial capitalisation of the Green Climate Fund, of at least US$10-15 billion over the period 2013-2015

3.) MRV of financial support

4.) Outstanding institutional issues

5.) Clarification of where ongoing discussions about the various elements of long-term finance will take place after Doha – whether in the Standing Committee, as a continuation of the Long-term Finance Work Programme or under the ADP.

ECO sees potential benefits and downsides of different options for continuing the finance discussions beyond COP18, and urges an open discussion among Parties on the issue. And let's not forget that adaptation finance needs a suitable home, too...

Topics: 

Ukraine – Transition from Gas to Coal! Are you serious?

ECO was dismayed to hear Ukraine’s presentation of its QELRO in yesterday’s KP session.

 

The presentation did not live up to its billing – not only did Ukraine not have a QELRO to present, but stated that it would not be in a position to do so until it had done more work on its low carbon economy strategy – in 2013.

ECO welcomes the assessment of mitigation potential and actively supports all countries planning for a transition to a low carbon economy. However, Ukraine’s plans to fuel switch from gas, not to renewables, but to coal, make the country’s self-proclaimed recognition of its responsibility to future generations rather difficult to  believe.

 Perhaps ECO should not be surprised – recent amendments to the Energy Strategy were developed by the private foundation owned by one of the richest men in Ukraine, who is also the owner of many energy facilities. The Strategy has been severely criticized by the Ukrainian public. It has ambitious plans to develop coal and nuclear, but contains nothing about greenhouse gas pollution and very weak plans to improve energy efficiency and develop renewables.

 At best, ECO appreciates that Ukraine's actions will probably give ECO some extra material to fill its pages with in the coming year. Seriously, thanks.

“Feeling” Around for Better Decisions in LCA

 

ECO shares G77’s “strong feelings”. In the 1(b)(i) session this afternoon, the Group’s passion for their proposal on what needs to be agreed in Doha was evident. The Group's strong and eloquent intervention clearly set out an understanding of what is needed from developed countries under the LCA track to help achieve fair ambition pre-2020, building on some of the common frameworks that will help to inform the negotiations that will take place in the ADP on a new, global deal.

Helpfully, the G77 proposed decisions for Doha on the following essential elements of developed country mitigation:

-          Increasing pre-2020 ambition for all developed countries – those in the KP and those still refusing to (re)join – in line with the latest available science

-          Conversion of the 1(b)(i) pledges of non-KP developed nations into tonnes of CO2e, AAUs or a carbon budget, rather than point targets for a particular moment in time

-          Common accounting rules for all developed countries

-          Clarification of how the common accounting rules might alter actual levels of ambition

Though we appreciate the EU, Switzerland and Norway's expressed support for common accounting rules and transparency to allow comparability of efforts by developed countries, these countries should form common cause with the G77 proposal and show greater willingness to seize the opportunities for ambitious and comparable efforts under the LCA. After all, developed country modalities have already been negotiated, so there are clear precedents, developed over years of careful negotiations, to guide the work to a speedy conclusion.

As for the Brollie Groupers, who either think that the promise of 1(b)(i) has been exhausted, or that seem to advocate “transparency” through a smoke screen of self-determined rules for reporting and accounting – remember that developed country leadership you signed up to in the Convention? Postponing your duty to increase your ambition until the new deal will kill any chance of staying below 1.5/2°C – and probably a whole lot else as well. Refusing to play by the rules gives an impression of acting like spoiled children who have taken more than their fair share of the sweets and are now trying to hide the wrappers.

And just like any good parent would, we have “strong feelings” about that kind of behaviour.

From the Archives – Looking Back At the LCA

 

ECO was feeling a bit nostalgic, what with all this talk about the LCA and what comes next. So, it dug through the ECO archives and came across this article from Bonn 2008 on what the LCA could deliver. ECO hopes it brings out the same mixed feelings for you as it did for ECO:

Bonn, Poznan and Beyond

Let’s not forget what’s at stake: if current emissions trends continue, global average temperatures will rise by around 3-7°C above preindustrial levels, with catastrophic consequences for all. 

Sometimes these negotiations are like listening to a group of people on a badly-leaking lifeboat arguing over who should actually start bailing as the water rises inexorably, when the obvious answer is that all should be doing what they can to avoid the boat sinking completely. Those with the greatest capacity should be bailing the hardest, sufficiently motivated by their historical responsibility to be doing their best to help keep the others afloat, and making sure everyone has access to the lifejackets.

 So what should you be doing? What can Bonn deliver to keep us from sinking? 

Parties need to reach a common understanding of what their shared vision is – how far up towards the rim of the boat they will allow the water to rise, as it were.

 The LCA needs to break out into contact groups on developed country mitigation, developing country mitigation, REDD, adaptation, technology and finance. What Parties want to see reflected in the Copenhagen agreement should be brought to the table here and now as concrete proposals, to allow sufficient time for their exploration and analysis by other Parties and Civil Society.

 ECO recognizes that the negotiations are complicated, with issues spread throughout the agenda and similar items appearing under both AWG and LCA. Parties need to trust each other and consolidate these building blocks. Remember, there will be a reevaluation exercise in Poznan. The most important thing is not where an issue is discussed, but that it is discussed, in a coherent and constructive way. 

ECO expects outcomes from the LCA far beyond Chair’s draft conclusions: but for contact groups to begin to produce actual draft negotiating texts that will define the real negotiating issues to be ready for negotiation in Poznan, to allow the work done in the Dialogue and in more recent discussions to be realized.

 The AWG should also be producing negotiating texts and beginning their refinement, so that there are bracketed texts on the table by Poznan.

 Delegates, to stop the boat sinking ever lower, don’t bail out of your (common but differentiated) responsibilities.

Cooking up New Mystery Mechanisms (NMM)

Since the decision to establish a new market mechanism (NMM) and an international framework for new bilateral or regional market mechanisms at COP17 in Durban, ECO hasn’t noticed much progress. None of the details have been worked out and even insiders are unclear about what new mechanisms could look like and what the role of the so-called “common framework” should be. Many issues remain in mystery, such as whether there should be centralised governance or prevailing national rules, how to address double counting and how these new mechanisms will actually fit into the wider climate negotiations when there is insufficient political will for ambitious emission reduction commitments.

For a potion from the indigestion of many divergent views, the AWG-LCA chair needs to get his wand out at today’s workshop on new market-based mechanisms. ECO restates several essential ingredients for an infatuating recipe:

safeguards against double counting of efforts

as many as you can

real, measurable, verifiable and additional emissions reductions

“tonnes” of it

centralized governance

one piece

net atmospheric and sustainable development benefits

all you can get

However, even if the Bangkok talks can cook up something, there is no feast without getting ourselves hungry with sufficient political will for ambitious emissions reduction commitments.

Topics: 

A Tenuous Linkage

ECO cautiously welcomes the announcement made this week by Australia and the EU that they have entered into negotiations to link their carbon trading schemes by 2018. If implemented with ambition, this could be a positive step toward greater international cooperation in carbon pollution reductions.

However, ECO wants to respectfully remind delegates that if two dogs play together they will catch each other’s fleas. In the case of linking carbon markets together, weak ambition may be contagious. If neither emissions cap meets the targets that science suggests, then linking is only a gimmick.

Europe is already and will continue to face deficiencies in the EU ETS. Unless policymakers move to restore scarcity to the oversupplied European carbon market, they risk weakening incentives for zero-carbon development not only in Europe but also in the countries to which they link. Australia’s economy is the size of Spain’s, and could be overwhelmed by a flood of cheap European emission allowances, undermining climate action there. We note that this linkage is marginally better than allowing a flood of even cheaper CDM credits into the Australian scheme, which was a distinct possibility before changes were made in order to link with Europe, but, as feared, is likely to undermine climate action on both sides.

Full linking with the Australian scheme after 2018 also presents potential dangers for the EU. Since Australia’s 2020 climate targets remain considerably weaker than Europe’s, an insufficiently robust Australian cap could see a reverse flow of cheap Australian credits into the European market exacerbating the existing oversupply. Also, there is a danger that Australian land-based credits could enter the European scheme by the backdoor.

ECO urges the EU to act quickly and decisively to make structural adjustments to the EU ETS by permanently removing surplus emission allowances to fix the glaring problem of oversupply.

Australia regrettably had to do away with its intention to install a carbon floor price, which provided an important safety net to ensure a minimum level of investment in domestic pollution-saving activities. Removing this safety net means that other policies become even more important. ECO urges Australia to commit to extend and increase the Renewable Energy Target to at least 40 per cent.

Finally, ECO can’t help wondering…surely the EU did not forget to make joining the second commitment period of the Kyoto Protocol a pre-condition for bilateral negotiations between the EU and Australia to proceed?

Pages

Subscribe to Tag: Bangkok 2012