Eco Digital Blog

Their Share and a Bit More

 

In the midst of agenda controversies and lack of ambition, ECO would like to acknowledge that some countries are taking proactive actions, by bringing new ideas and commitments to the UNFCCC processes. ECO welcomes some of the contributions and actions by the Independent Alliance of Latin American Countries (AILAC) to develop a process to achieve a good climate deal in 2015.

They're not among the wealthiest nations, nor the poorest; they are middle income countries and, in contrast to many developed countries, they have committed their nations to reduce emissions within their capacities.

In yesterday's ADP plenary, they proposed to lead by example. They also welcomed the AOSIS proposal as a good starting point for action in the energy sector, which they see as being key to begin closing the gigatonne gap. The idea of scaling up and doing the same for other sectors such as transport, industry, waste and forestry is also appealing.

ECO looks forward to seeing more progress on positive actions. But remember, you committed to it, and ECO will be watching...

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Fossil of the Day

“Today's Fossil is awarded to Russia for blocking the start of the SBI through trying to alter the agenda. In Doha, Parties made progress on improving the environmental integrity of the Kyoto Protocol by getting rid of some of the hot air in the system. Yet, now Russia – who is not even a Party to the second commitment period of the Protocol – is all bent out of shape about how the decision was taken. Of course, having matters being formally adopted and adhering to the rules of procedure are very important elements in this process, however blocking the work of the SBI for two days is not the way to have this matter is resolved. There has been an item on the COP agenda dealing with proposals regarding the rules of procedure for the past two years. The SBI agenda is full of pressing issues that could also yield real emission reductions – like reforming JI and the CDM to ensure additionality or reviewing the adequacy of the long-term goal. So Russia why don't you use that super power of yours to get the SBI back on track?!"

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Go Deeper for Cheaper

 

CAN hopes Australia's independent Climate Change Authority (CCA) had a useful time in Bonn gathering perspectives from Parties, in particular on how Australia's actions may help or hinder the road to a 2015 global deal.

With carbon pollution blasting through 400ppm and many nations preparing to ramp up their efforts, we guess you heard some stern views on the (lack of) adequacy and fairness of Australia's unconditional 5% target for 2020.

The good news? WWF earlier this week revealed Australia could bump up its target from 5% by 2020 to 25% at virtually no extra cost to its economy. A lucky country indeed! You'd be mad not to, wouldn't you? And while the cost to your GDP would be negligible, the kudos would be priceless.

In honour of your visit, ECO revisited Australia's conditions for moving to 15% and maintains these were comfortably satisfied by the Cancun Agreements and Durban Platform, along with new reporting requirements for developing countries and land sector rules under the Kyoto Protocol. But it's no secret that 15% falls well short of what a country with economic capability and clean energy resources like yours should be putting in. Wouldn't you agree? And as your own Professor Garnaut has made clear, with a coastal population, rising costs from extreme weather and shifting rainfall threatening to wreak havoc for your farmers, no developed country has a stronger national interest in keeping the global temperature rise as far below 2°C as possible.

Needless to say, the best way for Australia to protect its national interest and at the same time protect the environment is to set targets and budgets that accord with the science (remember the 40% below 1990 levels?) and represent a fair and defensible share for Australia. To ECO, setting your 2020 target to at least 25% below 2000 levels and setting an ambitious long-term national carbon budget looks like a no brainer. Smart for the planet, smart for the economy, and smart for Australia's world standing.  ECO hopes the CCA got that message loud and clear.

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The Solution is Plane to See

 

A question to delegates: How will you ensure that the two fastest growing sectors in terms of emissions – international aviation and maritime transport – contribute their fair share to global efforts to reduce emissions?

In Monday’s reports to SBSTA by the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO), the news was not good. The IMO has suspended discussions of market based measures (MBMs) to some undefined date in the future, and with it the chance to set emissions targets for the shipping sector, which accounts for around 3% of global emissions.

On the aviation front the news isn’t quite as bad, at least not yet. The ICAO Council will discuss MBMs for aviation later this month, and MBMs are still on the table. There is some encouraging news from the aviation industry itself this week – the International Air Transport Association (IATA), which represents most airlines globally, has called on ICAO to adopt a global MBM this year. Although the specifics of their proposal leave a lot to be desired – only offsetting growth in the sector after the year 2020 – IATA’s decision puts the spotlight on ICAO.

Measures for these sectors, which would internalise the environmental externalities by putting a price on emissions and generating finance that could be used to respond to the climate crisis, are facing fierce resistance in both the IMO and ICAO. These bodies need to get serious and adopt adequate measures to control their pollution – in September (ICAO) and by 2015 (IMO). They still have a chance to prove that they can take the necessary steps, but the clock is ticking on these organisations to deliver.

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Putting the Start Back in SBI

 

ECO is dismayed to have to write another article on the fact that the SBI has yet to begin its work. Boo! ECO would much rather fill its pages with all the ideas it has for the 2015 agreement or on closing the gigatonne gap (or at least some funny cartoons, fake recipes, or mock classified ads). Instead it feels compelled to ruminate on the lack of progress…

Ironically, it seems that this lack of progress has its origins in something that actually did make progress: Doha eliminated more than 3.6 billion tons of the hot air in the Kyoto system. Without this decision Ukraine and Belarus would have accumulated over 2 billion and 400 million tons of hot air in the course of the second commitment period due to their weak targets. There is no point giving the number for Russia as it has comfortably decided not to participate in KP CP2. 

The issue, of course, is how that decision was taken. While ECO fully supports resolving the long-standing matter of the rules of procedure, it is suspicious of the motives behind Russia, Ukraine and Belarus for insisting on it right now. For Russia, this just seems like sour grapes as they are not even a party to the second commitment period, and last time a proposal on the rules of procedure was discussed, seemed much more intent on pushing its own proposal to regularly review the Annexes of the Convention (which – oh, ECO doesn’t know – may explain some of the G77 and China’s positioning now on including new items in the agenda). As for Ukraine and Belarus, they would be much better placed to seek financial and technical support to genuine efforts to reduce their emissions rather than blocking the SBI. Blocking gives you nothing.

Doha, unfortunately, did not eliminate all hot air. Some still remains in the system and is currently caught up behind an EU bubble – here’s looking at you Poland (ECO would love to write about your new found ambition when you host the COP, but has a few articles in mind should you choose to pour cold “coaly” water on the whole thing…). Moreover, while the economies in transition had their “ambition” pushed up by new provisions, all developed countries’ ambition is still inadequately low, with no opportunities for a similar increase given all the loopholes they have deftly crafted.    

ECO urges all Parties, economies in transition, the G77 and the like, to work constructively towards resolving this issue immediately and starting the SBI today.

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In Hot Pursuit of the SBI

FCCC/CP/1996/2...*sigh*...is a document close to ECO’s heart! While there is no denying that clear rules of procedure – finally formally adopted and adhered to – would be an important development, ECO should be forgiven for doubting the sincerity of the sudden, but independent, interest of Russia, Belarus and the Ukraine in the matter. 

ECO has been around since 1972 (if you forgot to send us a birthday present this year, see yesterday's issue for some suggestions). However, one’s institutional memory need not stretch that far back. In fact, one only needed to be in Doha, to understand where our scepticism comes from. 

Russia, Belarus and Ukraine opposed the overwhelming consensus on a COP decision in Doha. But their reasons were completely different from those of Bolivia's similar objections in Cancun. Bolivia objected a COP decision on the grounds that the deal on the table was not ambitious enough. ECO notes a clear difference here. In Doha, Parties made progress on improving the environmental integrity of the Kyoto Protocol by getting rid of some of the hot air in the system. ECO was delighted with this development as – after all – important things in this process (emissions, hot air, the gap in financing commitments) are supposed to go down and not up. But Russia, Belarus and Ukraine did not agree. In fact, a number of targets that were on the table in Doha from the economies in transition would have increased the total amount of hot air in the system.

There have been ample opportunities to discuss ways forward on the rules of procedure – the Mexico and PNG proposal being a prime example – and ECO does not remember strenuous and vocal support from the current proponents back then (in fact, Russia seemed more interested in its other proposal to amend Art. 4.2(f) of the Convention). So why raise concern now?    

Improving decision making procedures in the UNFCCC is appreciated. And if Russia, Belarus and Ukraine want to help, ECO encourages them to team up with Mexico, PNG and others to make real progress on this issue at COP19.  Even better, there is already a place holder on the provisional agenda for the COP to discuss it! A fast-start step towards improving procedures would be to get on with the SBI work now. Though the negotiations and their rules may seem surreal to some, climate change is very real to millions across the planet, and there is strong consensus that we need urgent action.

 

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Less Talk, More Money, More Action

“A little less conversation, a little more action” needs to be the soundtrack of this year’s Long Term Finance (LTF) Work Programme. The Fast Start period is behind us, and we are already starting the period that we used to call “Long Term Finance”, which makes little sense when it refers to yesterday, today and tomorrow. We’ve had processes under the UN Secretary General, the G20, and the UNFCCC. But to date these processes have failed to result in any decisions for, or commitments to, a given level of funding from now to 2020. So this year’s work programme must be different from last year’s in one fundamental respect: concrete outcomes on scaling up.

With the LCA finance negotiations behind us, and ADP negotiations on pre-2020 ambition focused on mitigation, this year’s LTF Work Programme is the main space for making progress on finance. If not here, where? If not now, when?

So unlike last year’s work programme, this year’s needs to be firmly geared towards options for decisions in Warsaw. These options then need to be discussed and agreed at the “in-session high-level ministerial dialogue” that the Doha outcome mandated for COP19. Failure to provide concrete options for ministers to consider would likely result in a missed opportunity that developing countries cannot afford. 

Today's Long Term Finance Work Programme event will focus on pathways for mobilisation of climate finance to USD 100 billion per year by 2020. ECO urges Parties to consider that by COP19, we need ALL developed countries to set out what PUBLIC climate finance they will provide over the period 2013-2015, and commit to a roadmap for scaling-up global PUBLIC climate finance, and reaching $100bn per year by 2020. ECO would like Parties to note that COP19 is already very, very late to make decisions on finance that should have been available from the start of 2013.

This year, we need new initiatives and increased ambition to close the mitigation gap and get on a pathway to staying below 2 degrees C of warming. This will be only be possible if there is an assurance that finance will be available for renewed mitigation efforts in developing countries. We also need agreement that a minimum of 50% of all public climate finance between now and 2020 will be spent on adaptation. And the Green Climate Fund must not be left an empty shell for a 4th COP in a row – that's one broken record we're tired of listening to.

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Equity for All

ECO hopes that the ADP discussions will focus on solving the equity puzzle. The world needs an effective, science-based, fair and ambitious climate agreement. Here is an attempt by ECO to demystify the climate puzzle we are facing. The fact that atmospheric CO2 concentrations recently reached the 400 ppm mark was an ominous reminder about the urgency of substantial actions to keep temperature rise well below 2 degree C, and the ultimate goal to return it to 1.5 degree C above pre-industrial levels. To resolve this challenge, developed countries must increase their pre-2020 pollution reductions and ramp up support for developing country actions through finance, technology and capacity building. Adaptation and loss and damage should also be given the necessary levels of support. These are the preconditions to rebuild the trust among Parties and for a successful outcome from Paris in 2015.

ECO believes that negotiations will never succeed unless Parties confront the equity challenge. More precisely, Parties need to deal with their differentiated responsibilities and respective capabilities, while protecting developing countries’ need to provide their citizens with sustainable living standards, as is available to citizens of any other country.

At the minimum, this means Parties need to develop a shared “Equity Reference Framework” that embodies the Convention’s core equity principles. ECO identified these as: a precautionary approach to adequacy, CBDRRC and the right to sustainable development. Along with the latest science, these core principles, taken from the Convention itself, including of course the call for developed countries to take the lead in climate mitigation – can be used as a benchmark when framing, setting and reviewing Parties’ pledges and financial commitments. Increasing ambition of pollution reduction should be based on a fair share approach.

To achieve this task in a time bound manner, ECO suggest that Parties need to take a systematic approach to make best use of the time and resources available. First, we need to hear Parties' focused ideas about core equity principles and respective indicators. We also need to hear Parties' ideas for a process by which relevant articulations of the core Convention principles and proposed indicators can be quickly distilled into a concise list. This list can then be used to establish the fair share commitments of Parties in what ECO calls the Equity Reference Framework. Over the next two weeks, the ADP should begin the discussions required for the 2015 agreement, in the context of standardised equity indicators and taking steps to realise this framework. ECO seeks an Equity Reference Framework that institutes a process to scale up Parties' commitments and pledges for the post-2020 agreement, by inviting Party submissions and a process that includes review of commitments by international experts.  

Parties must go beyond just the principles to develop standardised indicators. The present session should be sufficient to crystallise the indicator discussion, which will lead us to the development of the framework.

At the end of the day, of course, all of this will depend on Parties taking the equity challenge seriously and stepping forward to make the difference required for a successful ADP outcome in Paris. ECO will be closely watching, and that’s really not a surprise, as we are friends of equity and the ADP

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How Much Climate Finance Will Developed Countries Provide in 2013 and Beyond?

 

Based on pledges/statements made in UNFCCC…

Finland, France, Germany, Denmark, Norway, Sweden and the UK were first off the blocks in making financial pledges in Doha.  This was welcome. But the adequacy and the clarity of these pledges vary significantly and need to be pinned down.

And then there’s the rest…

No developed country Party should be coming back to this process empty handed! ALL developed countries need to urgently commit to what climate finance they will provide in 2013 and beyond, in a way that is transparent, comparable and makes clear how finance is new and additional.

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ECO's (Che)easy Guide to Success in Bonn

The year is not even halfway through and we have already seen devastating floods in Argentina and the melting of Arctic sea ice being linked to not only Australia's harshest ever summer, where they needed new colours to define “hot” on the map, but also a frozen spring in Europe. Climate impacts like these were hitting all corners of the planet, as carbon pollution in the atmosphere pushed through the landmark of 400 parts per million - levels the world has not seen for millions of years.

And here we are in Bonn again to work out how to get those levels down, not up. With as few as five sessions left before we need to agree to a comprehensive climate plan in 2015, it is high time to roll up our sleeves, put on hold short term interests and work together to refocus the planet away from burning destructive fossil fuels and onto a path to a safe future.

Delegates – you are going to have to earn your Maritim cheese sandwiches! As much remains to be done before COP19 in Warsaw. You need to continue the good work started last month by mapping out the structural and technical elements of the 2015 climate plan to be captured in a draft decision at Warsaw, whilst committing to concrete steps to increase ambition before 2020.

Equity

At the Bonn meeting in April, equity took centre stage. Parties seem to recognize at last that there won't be any ambitious 2015 deal without equity (and no equity without an ambitious 2015 deal). ECO is pleased that the ADP co-chairs, in the informal note on the last Bonn session that contained their reflections of the perceived common ground on Workstream 1, have confirmed the “the principles of the Convention will apply and need no reinterpretation in the 2015 agreement.” This is, for ECO, of course a very important common ground that ADP 2 needs to build on.

It should not be forgotten in the myriad of issues that the Parties need to push in this session to agree to an international mechanism to deal with communities and cultures that will suffer from irretrievable loss as a result of climate change.

Short Term Ambition

Current mitigation commitments have us on a catastrophic 4 degree pathway. Clearly, raising ambition before 2020 must be a priority. And International Cooperative Initiatives are no replacement for increased mitigation and finance pledges. And 2014 is the year for your increased ambition to shine – the KP Ministerial Roundtable next year should be an opportunity for all developed Parties – not just KP Parties – to increase their current, embarrassingly low levels of ambition. And Ban Ki-moon’s Summit likewise offers a good opportunity for developed countries to increase commitments, and developing countries to increase pledges.  Of course this will require facilitation by additional means of implementation for developing countries, which is meagre at this time.

The first volume of the IPCC 5th Assessment Report in September will provide the perfect backdrop for such an increase in ambition, as well, of course, for quality input into the First Periodical Review.  

The AOSIS proposal on energy efficiency and renewable energy deserves significant attention at this Bonn session. It calls for technical level workshops on implementing renewable energy and energy efficiency-based mitigation options here in Bonn, followed by a submission process and a ministerial meeting at Warsaw, offering plenty of opportunity for countries to consider how clean technology can drive an increase in their pledges. There are, indeed, no shortage of ideas on how countries could increase their ambition. (The UNFCCC technical paper on short term ambition reductions offers a whole range of ideas on how short term pollution reductions could be achieved.) All in all, the conditions look promising for 2014 to be the year of short term ambition increase for all. 

Market mechanisms

Carbon markets will be an important topic: Both the CDM and JI are scheduled to undergo reform. The CDM needs to phase out project types that are clearly not additional (large power, for example) and ban project types that are clearly harmful, such as coal power. Human rights need to be respected by all projects. JI, the troubled brother of the CDM, needs much stricter rules, period. The over 95% of JI credits that have been issued under track 1 lack transparency and integrity, to put it politely.

Why we would want to increase the supply of market units by creating new mechanisms is still a bit curious, given that current prices for CDM and JI credits are at 20 Euro cent. Nevertheless, Parties will discuss new market mechanisms (NMM) and a FVA (Framework for Various Approaches). Ensuring quality through clear and conservative rules, international oversight and comprehensive tracking and accounting rules are key.

Never will so many delegates pay so much for Maritim cheese sandwiches. And we don’t mean in Euros (though we all pay quite a bit for them as it is) – we are talking about the sweat on your iPads. ECO expects you to draft decision text for the Warsaw Finance Ministerial, outlining a pathway, including mid term targets, to get to the US$100 billion by 2020. And delegates, the time has come, as the walrus said, to speak of many things.  Including where, how and when finance fits under Workstream 1. In order to ensure that sufficient means of implementation are assured to support the level of mitigation and adaptation ambition necessary for the 2015 agreement, these discussions must begin soon.

Much more is needed, of course; expect a few more recipes for success over the next 2 weeks. But for now, all this typing is making ECO hungry...

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