Mar16

Tuesday's Reads

Morning Reads

 

Reuters: U.S. advocacy groups want to ensure any climate legislation in the U.S. allowing international emissions offsets from the forestry sector provides enough resources for nations to adequately enforce deforestation and forest management policies.

 

GreenWire via NYT: According to a new study, the tailpipe emissions reductions garnered from switching from traditional auto fuels to corn-based ethanol are canceled out by increased emissions from land use changes. Basically, any benefit netted from reduced vehicle emissions is null after corn producers shift their operations to new locations, often requiring them to remove existing forests.

 

LA Times: A White House report expected out today finds some significant gaps in policy planning at all levels of government to respond to the possible problems associated with a changing climate.

 

FT: Fears Hungary was recycling carbon offset credits seem to have had a minimal impact on the overall carbon trading market.

 

And, from ClimateWire via NYT, the world’s largest brewer is doing what it can to address future water scarcity concerns.

 

What caught your eye today? Let us know.

Published: Mar-16-10 | 0 Comments

Mar15

U.S. Climate Policy and the Shape of International Agreements, Part 4

COP-15, International, United States

 

What’s Next for U.S. and International Climate Policy

 

The nations of the world came together in Copenhagen this past December to continue a process begun in 1992 at the Rio Summit to address the causes and consequences of climate change. The ultimate goal of that process is to reach an international agreement that will limit global greenhouse gas (GHG) emissions to “safe” levels while at the same time ensuring the nations most vulnerable to the impacts of climate change are provided the financial and technical means to adapt to a changed climate.


As I mentioned in my previous posts (here, here and here), this series will provide a view of Copenhagen from a distinctly American perspective, blending global economics with domestic U.S. politics. The outcome of Copenhagen and the international process that now follows is shaped largely by the domestic politics of all the major emitting countries with U.S. domestic politics playing a particularly large role.


In this post, I’ll take a look at where international negotiations are likely to go after Copenhagen and what role the U.S. will play on the international stage going forward.


International Negotiations Post Copenhagen


One can argue that Copenhagen marked a substantial shift in the dynamics of global climate policy development. A good deal of that shift is due to the renewed presence of the U.S. in international negotiations. Copenhagen moved the development of global policy further away from a Kyoto-like agreement, not closer. And, Copenhagen perhaps signaled a move further from the UN 190+ nation process and closer to a process taking place at venues like the Major Economies Forum (MEF). Certainly, this is the desire of the U.S.; however, it remains to be seen whether the BASIC countries (Brazil, South Africa, India and China) will agree to this radical shift in negotiating venue. Regardless, it seems almost certain issues like the Clean Development Mechanism (CDM), sectoral offsets, Reducing Emissions from Deforestation and Degradation (REDD), adaptation, and finance will likely remain within the UNFCCC negotiating structure.


Copenhagen made clear the goal of a comprehensive, legally binding agreement setting emission reduction targets for developed countries while requiring no action on the part of major developing economies ala the Kyoto Protocol, is not achievable. What is achievable is a process of bottom-up pledge and review where the major developed and developing countries agree to take domestic actions to limit their emissions, agree to some form of monitoring, reporting and verification (MRV), review these actions after a suitable period of time to see if everyone is abiding by their pledges, then pledge again. Pledge and review is not as elegant as Kyoto, but is a whole lot more practical.

 

While the Copenhagen Accord does include language setting an aspirational goal limiting emissions to 2 degrees C, one doubts whether anyone with a sense of politics finds that fact comforting. The GHG concentration at which we will eventually stabilize—and therefore the temperature rise that will be achieved—will not be predetermined neatly by science, but rather, by the messy business of politics and the reality of economics.


Adapting to New Negotiating Framework


As the major economies take the lead in forging agreements, and to the extent the venue for those negotiations moves beyond the UNFCCC to other processes, the interests of poor nations in issues of adaptation can become overlooked. The primary concern of the major economies in international negotiations is their emissions, not adaptation. Interest in adaptation and other issues particularly salient to developing countries are secondary concerns, largely due to the fact that most of the major economies (emitters) are reasonably developed (or well on their way) and will be able to adapt. Once the major economies take their mitigation negotiations out of the UNFCCC, the poor countries who will suffer climate impacts might end up talking to themselves about adaptation.


If the U.S. does not pass comprehensive legislation establishing a domestic cap-and-trade program that admits international offsets, a broad and deep global carbon market may fail to materialize. Absent such a market, the amount of wealth that will be transferred from the north to the south will be small and will get smaller over time. Without private sector money flowing to developing countries to purchase offsets the transfer of wealth will have to come from government tax revenues. In the U.S., and I expect elsewhere, it will be a very difficult political challenge to get these flows up to the levels needed and even more difficult to maintain those flows over time.


Long-term funding for adaptation will be particularly difficult to amass. While mitigation lends itself to a carbon market, there is not a private market analog for adaptation. Many adaptation projects look to the financier as straightforward economic development projects, where the risk tends to be high and rate of return low. Without private capital interest in these projects poor countries are left relying on highly uncertain developed country government funds.


U.S. Negotiating Position Post Copenhagen


If, as I believe, Copenhagen signals a very different process for reaching global climate agreements, the roles of the major economies will grow and the U.S. will have more opportunity to exercise leadership. Understanding the U.S. negotiating position going forward is aided by the simple fact that domestic climate policy and politics will form the proper foundation for foreign policy with respect to climate change. The Clinton administration let the formulation of climate foreign policy precede the development of domestic climate policy. Those actions angered the U.S. Senate and doomed the Kyoto Protocol in the U.S. The Obama administration will not make that mistake.


The U.S. negotiating stance going forward can be summed up with a few short sentences. The U.S. will attempt to establish the MEF as the venue for future mitigation agreement negotiations. The general form of the agreement sought will be pledge and review of Nationally Appropriate Mitigation Actions (NAMAs) by all MEF members with suitably strong MRV requirements. The Kyoto track within the UNFCCC will not be supported. Mitigation NAMAs for the U.S. will be identical to those passed by the U.S. Congress (whatever those actions might be). Since the U.S. NAMAs will be written into domestic law, the U.S. will hold these are legally binding on their own and therefore do not need to be included in a treaty; however, the U.S. would not block such a treaty should one be developed. If the U.S. Congress passes cap-and-trade legislation with international offsets, the U.S. will be able to deliver funds to developing countries for mitigation. REDD+ and sectoral offsets will be supported by the U.S. If domestic cap-and-trade legislation with international offsets is passed, REDD+ will be high on the negotiating priority list.

 

Raymond J. Kopp is a senior fellow and director of Resources for the Future’s Center for Climate and Electricity Policy.

Published: Mar-15-10 | 0 Comments

Mar15

Monday's Reads

Morning Reads

 

NYT: A new report finds health care costs are adding up in California as air pollution is making people sick and costing insurers nearly $200 million a year in hospital costs.

 

FT: The Copenhagen blame game continues as new details emerge about China’s role in the outcome of the conference.

 

NYT: Basic tools to improve the energy efficiency of existing buildings with simple retrofits—like caulk and insulation—are almost entirely manufactured in the USA.

 

ClimateWire via NYT: Stopping payments to the U.S. Strategic Petroleum Reserve in 2008 saved U.S. taxpayers some $600 million.

 

Reuters: According to a new survey, Australia's pension funds industry, the fifth largest in the world, is dragging its feet on climate change risk when making investment decisions.

 

FT: Peak oil: fact or fiction?

 

What caught your eye today? Let us know.

Published: Mar-15-10 | 0 Comments

Mar11

Editor's Note


Weathervane will be off tomorrow, Friday March, 12. We apologize for any inconvenience, but look forward to Monday when we will wrap up Ray Kopp’s series on U.S. climate policy and international negotiations. If you missed any of it you can catch up with parts 1, 2 and 3.

 

You can also catch up on the big stories you might have missed this week here. Let us know if we missed something and what we can keep an eye on in the future.

Published: Mar-11-10 | 0 Comments

Mar11

Picking Policies to Promote Green Power

Subsidies, Renewables

 

A variety of market-based policies have been adopted around the globe to reduce greenhouse gas emissions for the power sector and promote clean fuel technologies. To what extent is there a case for preferring one policy instrument over another, and are combinations of policies more efficient than one policy alone?

 

In a new Weekly Policy Commentary, RFF Senior Fellow Carolyn Fischer says while there is a clear policy winner when it comes to efficiently cutting emissions—a price on carbon—the best course of action to stimulate clean technology while reducing power-sector emissions may involve using a little bit of everything:

 

The optimal policy combines an emissions price with policies to capture spillovers in the market for knowledge—namely, a proportional R&D subsidy and a small subsidy for renewable production associated with learning-by-doing. These corrective policies provide positive benefits and allow the emissions price to fall by one-third to meet the same target. Together, they can achieve emissions reductions at significantly lower cost than any single policy alone.

 

Read Fischer’s Reducing Emissions While Promoting Green Power: A Look at the Options here.

Published: Mar-11-10 | 0 Comments

Mar11

Thursday's Reads

Morning Reads

 

Grist: Dave Roberts explains the Rural Energy Savings Program and why it may lead to lower energy bills, new jobs and broader support for comprehensive climate and energy legislation.

 

FT: Is it time to start taking stock of water’s role in energy production?

 

Reuters: French President Nicolas Sarkozy plans to push the G20 to impose a tax on financial transactions to raise billions of dollars to help developing nations fight climate change.

 

NYT: An international group of scientists will review the practices and procedures behind the IPCC’s report on global climate change to assess where improvements can be made in the future. Andrew Revkin has his take on the measure here.

 

WSJ: Editorial takes Obama administration to task for not acting broadly enough, quickly enough to expand domestic oil exploration and nuclear power generation.

 

And Nathan Richardson reminds us that (contrary to the opinion of Gar Lipow) a price on carbon is the best way to make any emissions reduction progress, at the Progressive Fix.

 

What caught your eye today? Let us know.

Published: Mar-11-10 | 0 Comments

Mar10

U.S. Climate Policy and the Shape of International Agreements, Part 3

COP-15, International, United States

 

How the U.S. Approached Copenhagen and What Came of it

 

The nations of the world came together in Copenhagen this past December to continue a process begun in 1992 at the Rio Summit to address the causes and consequences of climate change. The ultimate goal of that process is to reach an international agreement that will limit global greenhouse gas (GHG) emissions to “safe” levels while at the same time ensuring the nations most vulnerable to the impacts of climate change are provided the financial and technical means to adapt to a changed climate.

 

As I mentioned in my previous posts (here and here), this series will provide a view of Copenhagen from a distinctly American perspective, blending global economics with domestic U.S. politics. The outcome of Copenhagen and the international process that now follows is shaped largely by the domestic politics of all the major emitting countries with U.S. domestic politics playing a particularly large role.

 

In this post, I’ll take a closer look at where the U.S. stood in the run up to Copenhagen and how that led to some positive and negative outcomes from the conference.

 

Copenhagen Accord: The U.S Position going into Copenhagen

 

The U.S. negotiating position at Copenhagen reflected domestic political concerns. The foundation for the position was the constraint imposed by the White House that under no circumstances could the negotiating team appear to be pre-empting the U.S. Congress in setting emission reduction goals. The negotiators were free to utilize the reduction goals in Waxman-Markey (17 percent below 2005 levels in 2020, and 83 percent below 2005 levels in 2050), but they could not enter into negotiations over more stringent the goals. Thus, the U.S. team did not go to Copenhagen prepared to negotiate targets nor was it authorized to do so.

 

If the U.S. is to be a signatory to a new treaty serving as the successor to the Kyoto Protocol the new treaty would have to be ratified by the U.S. Senate. Ratification of international treaties requires 67 senators to vote in favor. As I said in my previous post, it is politically challenging to amass 60 votes to pass domestic climate legislation; clearly, it’s more difficult to amass 67 votes. Therefore, the negotiating team was prepared to make it clear that U.S. ratification of a Kyoto successor was highly unlikely. The U.S. negotiating position, developed over the past several years, sought the abandonment of the Berlin Mandate (the Mandate serves to exempt non-Annex 1 countries from any responsibility to reduce GHG emissions) and an agreement requiring all countries, and particularly countries participating in the Major Economies Forum (MEF), to agree to undertake a series of domestic mitigation actions and bind themselves legally to execute those actions. These actions, termed “Nationally Appropriate Mitigation Actions” (NAMAs) are of the countries’ own choosing. The binding international commitment would be reflected in the domestic enforcement of these actions under a country’s own laws. In addition, some sort of agreed to monitoring, reporting and verification (MRV) of the NAMAs would be required as part of the agreement.

 

Given the U.S. interest and focus on an agreement built around NAMAs, combined with the fact the U.S. is not a party to the Kyoto Protocol, progress along the Kyoto track (Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP)) was not a part of the U.S. negotiating objectives. The U.S. was and is placing all its effort on the Ad Hoc Working Group on Long-Term Cooperative Action (AWG-LCA).

 

Since a handful of nations can block a UNFCCC agreement—as we saw at the end of COP-15 negotiations—the U.S. sees the process as severely dysfunctional with respect to global agreements to limit GHG emissions. The U.S. much prefers the MEF as the venue for collaboration and cooperation on international climate policy. Indeed, a “MEF Plus” that includes an additional half dozen or so representative developing countries giving the MEF a bit more international credibility would likely be welcomed by the U.S.

 

U.S. negotiators were supportive of policies to incentivize the conservation of forests to reduce emissions, known as REDD+, the establishment of a credible and efficient sectoral offset policy to accompany the Clean Development Mechanism (CDM), funds for developing countries to finance GHG mitigation and adaptation, and a robust global carbon market. Indeed, the carbon market is the primary mechanism by which U.S. funds (private sector dollars) would flow to developing countries for mitigation efforts. The U.S. was also supportive of the flow of government funds to aid mitigation and adaptation efforts; however, it is unlikely the U.S. would agree to the distribution of these funds via a process solely administered by the UN.

 

The Copenhagen Accord: What Went Well

 

From the U.S. perspective the Copenhagen Accord produced many good results. Perhaps the most important outcome was the agreement hammered out by the U.S. and the BASIC countries (Brazil, South Africa, India and China) to put forward NAMAs, enter those into an agreed upon registry, and the inclusion of some MRV language in the final agreement. While the actions contained in the registry at the current time are not enough to solve the climate problem, they are a step forward.

 

A 2 degree C maximum mean global temperature increase goal was agreed upon, providing an important long-term objective. Importantly, significant pledges of near and longer-term finance for mitigation and adaptation were made, even approaching the lower end of what is generally believed to be necessary. Pledged near-term finance (2010-2012) amounted to $30 billion while longer term pledges (2012-2020) were $100 billion.

 

What Went Poorly

 

On the negative side of the ledger six countries (out of the 190+ participating in the negotiations)—Sudan, Venezuela, Bolivia, Nicaragua, Cuba and Tuvalu—rejected the Accord and prevented it from being adopted as an official decision of the Conference of the Parties (COP). Parties agreeing to the Accord could only officially “take note.” This leaves a great deal of ambiguity with respect to the manner in which progress toward further development of the Accord can take place with the context of the UNFCCC.

 

Perhaps more worrisome, the negotiations almost certainly would have failed without direct intervention from heads of state. The severe dysfunctionality of the UNFCCC/COP process was clear, as ministers and countries’ representatives failed to make any progress in advance of the COP and the arrival of heads of state.

 

From a U.S. perspective key elements were missing from the text, specifically, 80 percent reduction target by developed countries by 2050, 50 percent global reduction by 2050, due primarily to developing country resistance, specifically China. Moreover, developing countries were unwilling to make the outcomes (NAMAs) legally binding and it is unclear whether they would ever do so.

 

Lots of discussions moved forward without having text adopted, including forestry, technology, adaptation and finance. These tracts needed more time and high-level engagement to be completed. Forestry seemed to move the furthest along; technology and intellectual property issues still need more development and thought, and the Copenhagen Green Climate Fund needs a good deal more elaboration prior to COP-16 in Mexico.

 

Raymond J. Kopp is a senior fellow and director of Resources for the Future’s Center for Climate and Electricity Policy.

Published: Mar-10-10 | 0 Comments

Mar10

Wednesday's Reads

Morning Reads

 

NYT: China and India have officially agreed to “associate” themselves with the international climate deal reached last December in Copenhagen. The two developing nations are among the largest emitters of greenhouse gases on the planet.

 

ClimateWire via NYT: With unknown effects on overall human health and well being, climate change could soon reach further into the insurance industry.

 

Reuters: Senators are hoping a rebranding of cap and trade can get the legislation renewed support in Congress and among the American people. Meanwhile, the president continues to push for the climate control action.

 

Reuters: Action in the voluntary carbon market is leaving something to be desired.

 

Grist: So getting the price of carbon right is important in achieving emissions reductions at an affordable price, but is it the only thing to worry about?

 

What caught your eye today? Let us know.

Published: Mar-10-10 | 0 Comments

Mar09

International Climate Progress May Require Modified Focus

International

 

It will take strong leadership from all corners of the globe to pull together political will to move forward on an international climate treaty. According to a new German Marshall Fund report from RFF’s Nigel Purvis and Andrew Stevenson, ignoring the negotiating lessons learned in Copenhagen and falling back on the status quo could be the most dangerous course of action for the United States and Europe:

 

To protect the climate, a fundamental shift in thinking is essential. The most effective strategy would begin focusing, country-by-country, on advancing concrete mitigation actions that further broader sustainable development objectives. The keys to success for Europe and the United States in this new approach will be offering financial support on a pay-for-performance basis and aligning international trade policy with climate objectives.

 

Negotiating formal climate commitments via global talks must turn into an important but lesser priority, informed by realistic expectations about the extent and pace of likely progress. Moving from climate commitments to climate action is not without risk. Developing nations have opened the door, but this approach is untested.

 

Read Purvis and Stevenson’s Rethinking Climate Diplomacy: New Ideas for Transatlantic Cooperation post-Copenhagen here.

Published: Mar-09-10 | 0 Comments

Mar09

Tuesday's Reads

Morning Reads

 

NYT: New research from Stanford University is attempting to quantify the greenhouse gas emissions that go into imports and exports to help policymakers decide which countries should bear the responsibility for the pollution.

 

Reuters: South Korea is taking a new approach to public transit, debuting wire-free transportation technology that borrows from electric toothbrushes and razors to power buses and cars.

 

NYT: What can the rest of the world learn from Spain’s failed solar energy boom?

 

Bloomberg: The same day the EPA released its final consideration of the Bush-era Johnson memo, Administrator Lisa Jackson said the agency has no plans to set up its own cap-and-trade system to regulate greenhouse gases.

 

ClimateWire via NYT: A look at what issues may pull fence-sitting senators on board as whips work to wrangle every last vote for comprehensive climate and energy legislation in the Senate.

 

Grist: Are policies that incentivize behavioral changes a silver bullet for energy policy?

 

What caught your eye today? Let us know.

Published: Mar-09-10 | 0 Comments

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