FROM RIO TO BALI. Background and current state of climate policy. Gitta HULIK. European Social Dialogue Committee Extractive Industries
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1 FROM RIO TO BALI Background and current state of climate policy European Social Dialogue Committee Extractive Industries Gitta HULIK Brussels, 13 th February 2008
2 The Greenhouse effect
3 Historical Background 1988 Intergovernmental Panel on Climate Change 1992 Conference in Rio de Janeiro United Nations Conference on Environment and Development (known as Rio Conference), opening the UNFCCC for signature 1997 COP 3 in Kyoto Adopting the Kyoto Protocol 2001 COP 7 in Marrakech Finalising the Kyoto Protocol and setting operational rules for Emissions Trading, CDM and JI1997 COP 3 Kyoto 16th February 2005 Kyoto Protocol enters into force 2007 COP 13 in Bali Bali Agreement in view of a Post-Kyoto framework
4 Kyoto basics Protocol adopted 11 th December 1997 In force from 16 th February days after 55 parties ratified with 55% Annex 1 emissions covered Now ratified by 169 countries covering 61.6% of Annex 1 emissions Legally binding emission targets for Annex 1 Parties who have ratified Industrialized countries that were members of the OECD (Organisation for Economic Co-operation operation and Development) in 1992, plus countries with economies in transition (the EIT Parties)
5 Changes in Greenhouse gas emissions by Annex 1 countries
6 Kyoto mechanisms Three mechanisms Clean Development Mechanism Joint Implementation Emissions Trading Principles To enable Annex 1 Parties to access cost- effective opportunities to reduce emissions or to remove carbon from the atmosphere in other countries While the cost of limiting emissions varies considerably from region to region, the benefit for the atmosphere is the same, wherever the action is taken Includes all six greenhouse gases
7 Terminology JI Joint Implementation Project implemented by one Annex 1 party in another one Generates ERUs (Emission Reduction Units) CDM Clean Development Mechanism Project implemented by an Annex 1 party in non-annex 1 party Generates CERs (Certified Emission Reductions) Greenhouse gases Carbon dioxide (CO2); Methane (CH4); Nitrous oxide (N2O); Hydrofluorocarbons (HFCs); Perfluorocarbons (PFCs); Sulphur hexafluoride (SF6) Annex 1 Countries countries with binding emission targets Europe, Australia, New Zeeland, USA, Canada, Japan, Russia etc. Non-Annex 1 Countries developing countries with voluntary participation China, India, Brazil, South Africa etc.
8 Sectoral CDM examples Landfill and wastewater gas recovery Landfill sites in almost every major city Afforestation/Reforestation Much of Africa is under pressure because of unsustainable natural resources management Gas Flaring Nigeria and Algeria An approved methodology is available Fuel Switching and co-generation N 2 O abatement Fertilizer manufacturers Community-based renewable energy and energy efficiency projects
9 CDM project locations
10 Regional Emissions Trading Schemes EU ETS State of Illinois Emissions Reduction Market System (ERMS) Government of Australia Australian Carbon Trading Scheme Government of North South Wales NSW Greenhouse Gas Reduction Scheme (GGAS)
11 The example of Illinois State of Illinois The Emissions Reduction Market System (ERMS) Target: arget: Reduction of Volatile Organic Material (VOM) from stationary sources each year during the Ozone season (May 1 to September 30) Idea: Sources which can lower emissions without high investments will do so in order to obtain trading units which they sell to sources s that cannot lower emissions Mechanism: Each source holds trading units distributed by the State, based on the year 1994, 1995, 1996 (to be chosen by the source). Trading units can be bought and sold according to the needs of each e source. They can also be banked and used for a following trading period
12 The example of Australia Government of Australia - Australian Carbon Trading Scheme Target: The Australian Government is establishing an emissions trading scheme as part of an effective framework for meeting the climate change challenge. Work on developing a national emissions trading scheme starting no later than 2010 will be finalised by the end of 2008 Idea: Develop an Emissions Trading Scheme including all greenhouse gases and all sectors: energy industry including emissions from energy or fuel transmission, all industry sectors using fossil fuels, transport sector, agriculture, emissions from waste, Mechanism: Total emissions are capped,, permits allocated up to the cap and trading allowed to let the market find the cheapest way to meet the necessary emissions reductions
13 The example of North South Wales Government of North South Wales - NSW Greenhouse Gas Reduction Scheme (GGAS) Target: Annual state-wide greenhouse gas reduction targets started on 1 January 2003, requiring individual electricity retailers and certain other parties who buy or sell electricity in NSW to meet mandatory benchmarks based on the size of their share of the electricity market. Mechanism: Project-based emission reduction activities to obtain abatement certificates: Activities to lower emissions from generation of electricity (including cogeneration) Activities that result in reducing consumption of electricity (Demand Side Abatement) Activities carried out by elective participants that reduce on-site emissions not directly related to electricity consumption (Large User Abatement1) Activities to capture carbon from the atmosphere in forests (Carbon Sequestration).
14 G8 Summit 2008 Fighting Climate Change We are committed to taking strong and early action to tackle climate change in order to stabilize greenhouse gas concentrations.. taking into account the scientific knowledge as represented in the recent IPCC reports, global greenhouse gas emissions must stop rising, followed by substantial global emission reductions In setting a global goal for emissions reductions we have agreed today involving all major emitters, we will consider seriously the decisions made by the European Union, Canada and Japan which include at least a halving of global emissions by 2050.
15 The Bali Roadmap Major targets: Emissions reductions by -20% to - 40% by 2020 for developed countries and global reduction by - 50% by 2050 Kyoto Protocol Adaptation Fund for developing countries Reduction of emissions from deforestation Technology transfer
16 Thank you for your attention
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