Tag: Fossil Fuel Subsidies

CAN Annual Policy Document: "Warsaw on the Road to Paris"

Executive Summary

Through a series of decisions adopted at COP 17 in Durban, South Africa, countries reaffirmed their resolve to tackle climate change. They further built on those decisions at COP 18 in Doha, Qatar. This resolve is yet to be put into action as global emissions continue to push the world towards warming of 4 degree Celsius above pre-industrial levels by the end of this century.

However, the Earth's planetary limits and thus tipping points of its ecosystem have almost been reached. There have been devastating impacts of climate change across the world in the form of super storms, floods, droughts and enhanced extreme weather events. Climate change impacts are costing countries scarce financial resources while the global economy continues facing a major downturn. Impacts are addressed temporarily as the root cause remains unaddressed.

Lack of political will continues to be the key impediment crippling progress in the UNFCCC. Inadequacy of financial resources has hampered ambitious mitigation actions. It has also slowed down effective operationalization of mechanisms meant to help the world cope with impacts of climate change. Key issues such as equity as well as loss and damage wait to be addressed adequately.

It is time that countries catch up with the reality of climate change. Displaying leadership and courage to take difficult decisions is the need of the hour. Lack of political will should not continue to impede ambitious action to tackle climate change.

CAN wishes to remind parties that a climate safe pathway for 2/1.5°C is still feasible and nations must strive for it at COP 19 in Warsaw. They only have the luxury of two more COPs to commit to a climate agreement in 2015. Time is of essence and there are still many unresolved issues - lack of trust between countries being the prominent one.

COP 19 should be used to start working towards a fair, ambitious and legally binding climate plan for the world. CAN suggests that COP 19, as a priority, should address short-term mitigation ambition and the financial gap. This will help build trust amongst parties and create a positive momentum towards a post 2015 climate regime.

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Organization: 

ECO’S “COMPROMISE” DECISION FOR WARSAW*

 

*By compromise, ECO mean somewhere in between what is scientifically needed and what YOU tell us is currently feasible.

The Conference of the Parties,

Recalling Article 4, paragraphs 1, 3, 4 and 5 and 7 of the Convention,

Reaffirming the unwavering commitment of parties to keep global average temperature increase well below 2 degrees C above pre-industrial levels and the continuum approach between mitigation, adaptation, loss & damage and finance that is required to ensure equity before 2020.

Reaffirming the urgency to address the current imbalance in mitigation and adaptation finance – in light of recent studies showing the adaptation and loss and damage costs in developing countries will very likely be well in excess of US$100 billion per year by 2020.

Reaffirming the need to raise mitigation ambition levels between now and 2020, and achieving emission reductions on the order of 8-13 Gigatonnes of emissions in the pre-2020 period, beyond existing commitments and actions registered under the UNFCCC.

Supporting the authoritative assessments demonstrating that staying well below 2°C will require several hundred billion of incremental finance per year and the shifting of trillions of dollars of existing private sector investments into low carbon technologies and solutions.

Emphasising that the commitment by developing countries to provide $100 billion for developing countries will be delivered in the form of new and additional public finance, through budgetary allocations from developed countries, supplemented by revenues from alternative sources of public finance

Emphasising the shortcomings of the main revenue stream for the Adaptation Fund in relation to the expected low price of CERs under the Clean Development Mechanism and the need for new and additional commitments by developed countries.

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Decides:

1. That developed country Parties shall provide jointly new and additional public finance amounting to an average of US$20 billion annually for the period 2013-2015, for mitigation and adaptation actions, including for REDD, technology and capacity building.

2. That for the periods of 2016-2018 and 2018-2020, developed country parties shall scale up financing in a linear manner from the current levels to reach $100 billion annually in public finance by 2020.

3. That developed countries shall allocate at least 50% of overall public finance to meeting developing country adaptation needs.

4. To establish a formal process to capitalise the GCF with an initial collective pledge of (…)** by COP19.

5. To call on the relevant bodies to design and implement global measures to raise new streams of public climate finance, particularly through:

i) Redirection of at least 100% of Annex 2 fossil fuel subsidies

ii) Carbon pricing mechanisms applied to the international aviation and maritime transport - in accordance with the principal of CBDRRC and existing commitments under the UNFCCC.

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Welcomes

1. The pledges to the Adaptation Fund of (…)** collectively made by Annex 2 Parties for 2013/2014, as contained in Annex C of this decision, and those made by other Parties.

2. The initial pledges to the Green Climate Fund of (…)** collectively made by Annex 2 Parties as contained in Annex D of this decision.

3. The recent declaration by 11 EU Finance Ministers to earmark at least 100% of the revenue raised through their Financial Transaction Tax to the Green Climate Fund.

Disclaimer

** "there is not enough space on this page to specify the number of billions ECO is expecting"

For official CAN positions, please refer to www.climatenetwork.org

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You Can’t Feed Your Addiction and Break It, Too

While delegates will be discussing low emission development opportunities in today’s workshop, many of your countries are still feeding their tragic addiction to fossil fuels. You say you want to keep global warming below 2°C and to keep the door open for 1.5°C, but in fact you are consuming fossil fuels as if 4 degrees was the new 2 degrees.

The International Monetary Fund tells us thzat this addiction is costing your taxpayers USD 1.9 trillion each year in subsidies for the fossil fuel industry (FYI, for comparison, 1.9 trillion seconds is about 60,000 years!). As shown recently by the International Energy Agency, the result of this is a continuous rise of global carbon emissions each year, while we know that emissions should in fact peak well before 2015. 
 
The archaic, continued support for fossil fuels means that they remain artificially profitable and that low carbon alternatives such as renewable energy sources and energy efficiency are emerging much slower than they could. Let’s be honest here: you are not aiming for a 2°C world. No, in fact you are undermining the development of these low carbon opportunities, which could create local jobs and steer innovation. Instead you line the pockets of the fossil fuel dealers and encourage them to invest further in a 4+°C future. 
 
Just last year, the energy industry invested 674 billion dollars for more fossil fuels! However, the Carbon Tracker Initiative has shown that national governments and global markets have created a carbon bubble that will make the real estate bubble look like a blip. If Parties are really serious about avoiding dangerous climate change, nearly 70 percent of known reserves of oil, gas and coal must remain in the ground. Further investments in fossil fuels are locking us in to a carbon-intensive development pathway and making climate action more costly, while diverting investments from existing low cost low carbon solutions.
 
In ECO’s opinion, any new fossil fuel infrastructure puts our planet at risk. ECO therefore suggests that you stop being bipolar and start having a serious conversation here in Bonn about how to phase out fossil fuels subsidies. ECO has pointed out that this phasing out should not increase the vulnerability of people in developing countries and therefore must happen in developed countries first.
 
The ADP could develop ambitious pathways for phasing out fossil fuel subsidies in developed countries and identify options to shift those subsidies to additional mitigation activities (allowing higher pledges by developed countries). Imagine all that you can do with these savings from phasing out subsidies! You could use this money to support climate actions in developing countries! Or, at the very least, buy ECO some very nice birthday presents (green's our favourite colour).
 
For developing countries, the ADP could support work to carefully switch fossil fuel subsidies into supporting clean energy access and fostering sustainable development. The ADP could also identify and discuss ways for some developing countries to pursue fossil fuel subsidy phase-out as supported NAMAs.
 
Being conflicted over such a serious issue can’t be good for your mental health over the long term. Best resolve it now.
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Putting the “2 (degrees)” back in Workstream 2

It is well-trodden ground that there is a huge gap between what Parties say they want (staying below 2°C and keeping the door open to 1.5°C) and what Parties have pledged to contribute between now and 2020 to achieve that planetary necessity.  

In theory, Workstream 2 has already identified how to bridge the gap through: 1) improving developed countries’ woefully inadequate 2020 emission reduction targets; 2) identifying ways to enable and support developing countries in upping their own pre-2020 ambition; and 3) joint complementary action in addition to the first two areas on everything from phasing out HFCs to fossil fuel subsidies.  The task now is to JUST DO IT.  
 
ECO thought “doing it” would require no explanation, but some recent happenings in many developed countries are getting their positions all wrong.  
 
First and foremost – and we really thought this was obvious – the thing that needs to go up is the target, not the temperature.  For the EU this means moving to 30% - a move which really shouldn’t be that difficult considering that it has already achieved its 20% target almost 8 years ahead of schedule and will actually achieve more than that (around 25-27%) by 2020.  How can the EU host 2 COPs over the next 3 years and ask the rest of the world to do more while it decides to take a break? In addition, the EU’s incompetence at repairing its own emissions trading scheme is pretty mournful. A modest measure to temporarily limit the surplus of allowances in the EU carbon market was recently rejected by some within the European Parliament. 
 
The rest of the developed world is no better, and many are far, far worse.  There are rumours that Japan is planning to lower its ambition from its current 2020 pledge. Australia is not likely to do anything about its tiny 5% pledge and, depending of the outcome of the upcoming national elections, things could hit rock bottom, even though the Australian public is strongly in favour of climate action. The US pledge could be labelled ambitious, if the ambition was to overshoot 4°C, while the country is barely on the path to achieve its very weak 2020 target. And Canada – well, their only ambition is to withdraw from as many international treaties as possible (if you hadn’t heard, they’ve also withdrawn from the UN Convention to Combat Desertification). 
 
This drooping ambition level needs to stop. By 2014 ALL Parties (Kyoto Parties and free-riders alike) will have to increase the ambition of their 2020 pledges. Without this, you won’t get a global agreement in 2015, and – worse – you will not prevent dangerous climate change from destroying entire civilisations and threatening the future of your children.
 
There is also a role for developing countries in increasing near-term ambition. It is worth assessing what additional ambition more advanced developing countries can muster as well as what precise support will enable all to do even more. Jointly, developing and developed countries should use Workstream 2 to create an upward spiral of increasing support (finance, technology and capacity building) and ambition triggered and enabled by such support. This could also help avoid that, due to, for example low levels of climate finance, developing countries may find themselves in situations where they lock-in low ambition because of inadequately supported actions.
 
Finally, there are the complementary actions. The COP in Warsaw would ideally invite other bodies (Montreal Protocol, ICAO and IMO, G20 and so forth) to foster actions in their spheres of expertise and influence to result in additional emission reductions. Those actions would need to come in addition to what Parties have committed to do based on their 2020 targets, pledges and NAMAs, rather than as means to achieve them. This is why ECO and some Parties have used the expression “complementary”, a word whose proximity to the somewhat less ambitious “complimentary” should not create the false impression that avoiding catastrophic climate change is an issue of voluntary action – it is not. It is an obligation Parties have towards the millions of people suffering climate change already today, and towards the hundreds of millions if not billions who will be suffering tomorrow, whose lives and livelihoods are threatened by inaction, complacency and pretension currently at display at these negotiations.
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