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The Durban Climate Conference agreed on the creation of a new market-based mechanism under the United Nations Framework Convention on Climate Change (UNFCCC) and to consider the establishment of an overall framework for various mitigation approaches, including opportunities for using markets ("Framework"). The creation of such a Framework is therefore of high political significance, as it should ensure on the one hand that new market-based mechanisms contribute to global climate change mitigation and to achievement of targets, and on the other hand, that different market-based approaches can be integrated in a global carbon market. As yet, there is little clarity as to the roles and design of such a framework. This paper contributes to the debate by discussing and evaluating inter alia several design options, and explores how the various options could be implemented and how they interrelate. It concludes that a strong central oversight at the level of the UNFCCC is probably the only option that could reassure the vast majority of UNFCCC Parties that the environmental integrity of new market-based mechanisms is in fact ensured. This does, however, not exclude that some reasonable balance may be struck between centralization and flexibility.
The European electricity market is linked to a carbon market with a fixed cap that limits greenhouse gas emissions. At the same time, a number of energy efficiency policy instruments in the EU aim at reducing the electricity consumption. This article explores the interactions between the EU's carbon market on the one hand and instruments specifically targeted towards energy end-use efficiency on the other hand. Our theoretical analysis shows how electricity demand reduction triggered by energy efficiency policy instruments affects the emission trading scheme. Without adjustments of the fixed cap, decreasing electricity demand (relative to business-as-usual) reduces the carbon price without reducing total emissions. With lower carbon prices, costly low emission processes will be substituted by cheaper high emitting processes. Possible electricity and carbon price effects of electricity demand reduction scenarios under various carbon caps are quantified with a long-term electricity market simulation model. The results show that electricity efficiency policies allow for a significant reduction of the carbon cap. Compared to the 2005 emission level, 30% emission reductions can be achieved by 2020 within the emission trading scheme with similar or even lower costs for the industrial sector than were expected when the cap was initially set for a 21% emission reduction.
The Durban conference decided to establish a new market-based mechanism that is to cover a broad segment of a country's economy. The implementation details are to be agreed at this year's conference in Qatar. The question is, however, which developing countries would actually be able to implement such a new mechanism. The introduction of the EU emission trading system highlighted the many challenges that even advanced developed countries face when establishing a carbon market. This paper by Wolfgang Sterk and Florian Mersmann therefore aims to explore the essential prerequisites for the implementation of new market mechanisms (NMM). In addition to a theoretical discussion it considers the cases of China and Mexico.
The transport sector is the second largest and one of the fastest growing energy end-use sectors, representing 24% of global energy-related greenhouse gas emissions. The International Energy Agency has developed scenarios for the transport sector within the overall concept of mitigation pathways that would be required to limit global warming to 2 °C. This paper builds on these scenarios and illustrates various passenger travel-related strategies for achieving a 2° transport scenario, in particular looking at how much technology improvement is needed in the light of different changes in travel and modal shares in OECD and non-OECD countries. It finds that an integrated approach using all feasible policy options is likely to deliver the required emission reductions at least cost, and that stronger travel-related measures result in significantly lower technological requirements.
Global climate
(2013)
This report lays out the major developments in Durban and assesses the main outcomes. It is structured along the Bali roadmap for a future climate agreement that was agreed at the Bali climate conference in 2007. The Bali roadmap comprises negotiations under two tracks. First, the Ad Hoc Working Group on Further Commitments by Annex I Countries under the Kyoto Protocol (AWG-KP), established at the conference in Montreal in 2005, has been negotiating future emission targets for developed countries (listed in Annex I of the United Framework Convention on Climate Change (UNFCCC) and hence called Annex I countries). As the Kyoto Protocol's first commitment period expires in 2012, the AWG-KP is to agree on new targets for a second commitment period post-2012 as well as associated rules for accounting emissions. Second, the Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) has also been negotiating commitments for Annex I countries, intending to cover those that have not ratified the Protocol - that is, the USA. In addition, the LCA negotiates "Nationally appropriate mitigation actions" of developing countries, which are to be supported by Annex I countries with technology, financing and capacity-building. Both the actions and the support are to be "measurable, reportable and verifiable". The LCA also negotiates how such support for developing countries' mitigation actions may be delivered as well as how developing countries may be supported in adapting to the impacts of climate change.
The potential of natural gas as a bridging technology in low-emission road transportation in Germany
(2012)
Greenhouse gas emission reductions are at the centre of national and international efforts to mitigate climate change. In road transportation, many politically incentivised measures focus on increasing the energy efficiency of established technologies, or promoting electric or hybrid vehicles. The abatement potential of the former approach is limited, electric mobility technologies are not yet market-ready. In a case study for Germany, this paper focuses on natural gas powered vehicles as a bridging technology in road transportation. Scenario analyses with a low level of aggregation show that natural gas-based road transportation in Germany can accumulate up to 464 million tonnes of CO2-equivalent emission reductions until 2030 depending on the speed of the diffusion process. If similar policies were adopted EU-wide, the emission reduction potential could reach a maximum of about 2.5 billion tonnes of CO2-equivalent. Efforts to promote natural gas as a bridging technology may therefore contribute to significant emissions reductions.
Global climate
(2011)
The article discusses the process and outcomes along the central "building blocks" of the negotiations. According to the Bali Action Plan, the negotiations are proceeding under two tracks. First, the "Ad Hoc Working Group on Further Commitments by Annex I Countries under the Kyoto Protocol (AWG-KP)", which was established at CMP 1 in Montreal in 2005, is negotiating future emission targets for industrialised countries (listed in Annex I of the UNFCCC). Second, while the "Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA)" also negotiates commitments for Annex I countries, in practice this was originally deemed to relate in particular to those that have not ratified the Protocol - that is, the USA. In addition, the AWG-LCA negotiates "nationally appropriate mitigation actions (NAMAs)" of developing countries, which are to be supported and enabled by industrialised countries through technology, financing and capacity building. Both the NAMAs and the support are to be undertaken in a measurable, reportable and verifiable manner. Finally, the AWG-LCA negotiates ways to enhance adaptation efforts of developing countries, which are also to be financially and technologically supported by industrialised countries.
Global climate
(2010)
The fifteenth Conference of the Parties (COP 15) to the United Nations Framework Convention on Climate Change (UNFCCC) and the fifth Conference of the Parties serving as Meeting of the Parties to the Kyoto Protocol (CMP 5) took place on 7–18 December 2010 in Copenhagen. According to the "Bali Action Plan", the "roadmap" of the negotiations agreed at COP 13/CMP 3 in Bali in 2007, the Copenhagen conference was to deliver a comprehensive agreed outcome on the future climate regime. Meeting this deadline was of urgency not only because of the ever more alarming messages from climate science, but also because the first commitment period of the Kyoto Protocol expires in 2012. As ratification of a new agreement can be expected to take at least two years, a timely agreement on post-2012 emission targets is needed to prevent a "gap" after 2012. Expectations were high as more than 100 Heads of State and Government had announced their attendance and more than 40,000 participants had registered their names.
However, despite a record number of five preparatory meetings over the course of 2009, the fundamental differences between Parties proved to be too difficult to overcome. The main outcome of the conference, the "Copenhagen Accord", is only a political declaration, and even this declaration was not supported by all countries. In addition, Parties agreed to continue negotiations into 2010.
Domestic emission trading systems in Non-Annex I countries : state of play and future prospects
(2011)
Since the adoption of the Kyoto Protocol in 1997, the establishment of a harmonised international carbon market has been seen as one of the main strategies in international climate policy. So far, however, the market is far from being globally harmonised or systematically linked. Instead, a mosaic of national and sub-national markets has been under development, differing in timing, location, relationship to the Protocol and their levels of legal commitment.
Nevertheless, creating a global carbon market is a key goal of EU climate policy. As plans for the establishment of emissions trading systems (ETS) emerge in various non-Annex I countries, prospects for linking them to existing systems seem to finally get in reach. We have analysed the prospects of emission trading in non-Annex I countries in a recent paper on behalf of the German environment ministry. In the following we first give a theoretical overview of what design factors need to be taken into account when establishing national emission trading systems. The following elaborates on the status of emissions trading discussion in various non-Annex I countries.
Japan
(2010)
This article analyses the negotiations on the future of the international climate regime at the United Nations Climate Summit in Copenhagen. It also discusses key issues in the ongoing business of implementing the Climate Convention and the Kyoto Protocol. The article lays out the main issues at stake in the negotiations, contrasts divergences in interests amongst negotiating parties, and summarises the results achieved in Copenhagen. The report discusses these results in detail and concludes with an outlook on how the challenges ahead could be overcome.
This study analyzes the usefulness of an attitude-based target group approach in predicting the ecological impact of mobility behavior. Based on a survey of 1,991 inhabitants of three large German cities, constructs derived from an expanded version of the Theory of Planned Behavior were used to identify distinct attitude-based target groups. Five groups were identified, each representing a unique combination of attitudes, norms, and values. The groups differed significantly from each other with regard to travel-mode choice, distances traveled, and ecological impact. In comparison with segmentations based on sociodemographic and geographic factors, the predictive power of the attitude-based approach was higher, especially with regard to the use of private motorized modes of transportation. The opportunities and limits of reducing the ecological impact of mobility behavior on the basis of an attitude-based target group approach are discussed.
Pit stop Poznan : an analysis of negotiations on the Bali action plan at the stopover to Copenhagen
(2009)
This paper analyzes the international climate negotiations that took place at the 14th Conference of the Parties to the UNFCCC (COP) and the 4th Meeting of the Parties to the Kyoto Protocol (CMP) held in Poznan, December 1–12, 2008. It works out the main issues at stake in the negotiations, contrasts divergences in interests amongst negotiating Parties, and summarizes the main results achieved in Poznan. Furthermore, it contextualizes the Poznan negotiations within the broader political and economic context, which has shaped climate policy making throughout 2008. The paper ends with an outlook on the tasks ahead in 2009, until the next COP/CMP in December 2009 in Copenhagen.
Achieving sustainable mobility in developing countries : suggestions for a post-2012 agreement
(2009)
In December 2009, countries meet in Copenhagen to establish a new global climate agreement. This article links the need for reducing transport-related greenhouse gas emissions in developing countries with the current international climate negotiations. Arguing that a sustainable transport approach requires comprehensive policy packages, it assesses the suitability of current climate negotiation proposals in promoting sustainable transport. The project-based approach under the current climate regime incentivises neither comprehensive sustainable transport and mobility policies, nor sufficient numbers of local projects. Current proposals to increase efforts by developing countries, to reform the Clean Development Mechanism, and to create new emission trading mechanisms are promising but still have to overcome several obstacles. One obstacle involves how to properly assess the impact of actions while maintaining streamlined procedures. The authors conclude from their analysis that the best way forward would be to establish an international mitigation fund with a dedicated transport window financed by industrialised countries. This fund would enable developing countries to implement national policies and local projects. Developing countries would outline low-carbon development strategies, including a sectoral strategy for low-carbon transport.
More and more countries are incorporating the instrument of emissions trading into their national climate policies. This emerging mosaic of emissions trading schemes (ETS) raises the question of whether they should be linked with each other. From an economic point of view, linking of domestic schemes is supposed to increase the economic efficiency of carbon markets. In addition, linking is also expected by some to yield substantial political benefits in terms of the evolution of the UNFCCC/Kyoto regime. However, these optimistic prospects are based on a best-case scenario where all major countries establish environmentally effective emissions trading systems and then link them with each other. Real-life politics might develop rather differently. This paper therefore examines to what extent the current status of emissions trading in industrialised countries provides a basis for reinforcing and moving forward the international climate regime through linking domestic ETS. After comparing emerging emissions trading schemes from an institutional perspective, it emerges that not only emissions trading is at a very early stage in most countries, in addition the emerging systems are probably going to be designed very differently from the EU ETS. While for some design features such as the coverage design differences do not matter, there are some areas where the plans in many non-EU countries look crucially different from the EU system. The outlook for a linked international ETS is therefore currently still very uncertain. Given this state of affairs, the EU should pro-actively engage with the non-EU countries to try to harmonise their developing national emissions trading schemes with the EU ETS, widely disseminate the lessons it has learned from the EU ETS, strongly make the case for environmental integrity and at the same time make clear that systems that want to link to the EU ETS will need to meet certain quality criteria.
The barriers to linking greenhouse gas cap-and-trade schemes are assessed, based on an analysis of existing and emerging trading schemes, including those in the USA, Japan, Australia, New Zealand and the EU. The feasibility of different forms of linking and the time frames for their implementation are examined. In particular, the barriers to direct bilateral linking are considered. It was found that only a few direct bilateral links will be viable in the short term, due to the divergent policy priorities of different nations and regions, reflected in critical design features, such as costcontainment measures. However, in the short term, cap-and-trade markets will very likely be indirectly linked via unilateral links to the CDM or new crediting mechanisms, which may be adopted within a successor treaty to the Kyoto Protocol. In order to ensure a harmonization of critical design elements in the mid to long term, early institutional cooperation may become necessary. Necessary policy steps and the appropriate institutional framework for such harmonization and, overtime, further integration of trading schemes are briefly delineated.