Monthly Archive: September 2012

Keep up your end of the bargain, Parties

In Durban, Parties agreed to a package – the adoption of a second commitment period of the Kyoto Protocol, a successful conclusion of the LCA, urgent action to close the pre-2020 mitigation gap between the 2 degrees goal and the collective pledges now on the table, and collective movement toward a fair, ambitious and binding agreement in 2015. Parties must honour this political bargain.

Let’s start with the KP. Those trying to get another bite of the negotiation cherry by dragging out submitting their carbon budgets (QELROs) have to understand that this will be perceived as acting in bad faith. Australia – ECO remembers the brinkmanship with your QELRO last time. So for you, as well as New Zealand, Ukraine and others on the fence on the Kyoto second commitment period, ECO demands to see your QELROs up front. And, of course, just any old KP second commitment period won’t suffice. We must have a robust, ratifiable agreement that respects the original intention of the KP to raise ambition and create real environmental integrity. The AOSIS and Africa Group proposals will facilitate this endeavour. Effectively eliminating surplus AAUs and ensuring the environmental integrity of the CDM is also essential – you can’t have your cake and eat it too.
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Finally, Finance?

ECO is heartened to have heard that a group of developed countries is considering putting concrete numbers on the table for long-term finance in Doha. In the last year of Fast Start Finance, and with few firm commitments for finance from 2013 onwards currently on the table, this is none too soon. Substantial new and additional climate finance commitments could really help to give a boost to the negotiations going into Qatar.

As ECO has long argued, such commitments would give developing countries some needed reassurance that climate finance is not about to fall off a cliff, but rather start the steady climb towards the US$100 billion per year promise made in Copenhagen and Cancun. Rhetorical reassurances during the negotiations are no match for concrete numbers committed on paper.

Let’s hope that more developed countries reach this enlightened conclusion before Doha. There will be nowhere for them to hide if a group of countries makes a pledge, while they turn up empty handed.

But ECO would also hope that developed countries have learned some lessons from the Fast Start Finance experience, and apply them as they consider their pledge. Don´t forget that ECO has a beady eye for creative accounting tricks that may artificially inflate finance pledges that are actually not new and additional.
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Ace the AC

ECO congratulates the Adaptation Committee (AC) members for their selection and welcomes them to Bangkok, where the first AC meeting will take place. The AC has been mandated with the very important task of promoting the implementation of enhanced action on adaptation in a coherent manner, and supporting the COP in taking appropriate decisions on adaptation. ECO would like to encourage all members of the AC, both from developed and developing countries, to work as ONE TEAM and with a true spirit of collaboration and cooperation.

In its first meeting, the AC’s members will focus on developing its three year work plan and its modalities. ECO requests that the Adaptation Committee include the following priority issues. The AC should:

– consider the linkages and stimulate coherence among the various adaptation institutions within the UNFCCC, including the Standing Committee and Green Climate Fund

– develop an overview, identify gaps and establish/strengthen regional centres and networks to address those gaps

– facilitate discussion among Parties to explore ways to effectively address regional, cross-border and common sub-regional adaptation issues through promoting ecosystem- and community-based approaches.

Other issues to  be to reflected upon include the guidelines and modalities for the National Adaptation Planning (NAP) process for non-LDC countries and national institutional arrangements for adaptation.
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Get Technology’s “Boots On the Ground” Grounded

We stand at the precipice of what could be the final stroke of the LCA at COP18 in Doha, and the conversation is turning ever more to the question of how political decisions for various elements of the LCA that have not been fully resolved will be handled post-COP18. ECO sees that the discussion on technology transfer, which cuts across mitigation and adaptation, provides a stark view of what’s at stake if the LCA’s closing is not properly done, in the light of the sometimes yawning gap between the understandings of developed and the developing countries.

If you mark the IPCC Assessment Report 1 (1990) as the starting point, the discussion on technology transfer has been ongoing for more than two decades. That’s a lot of work to sit idle if the Technology Mechanism suddenly faced a lack of support, and a staggering missed opportunity to close the mitigation gap and address the growing need for climate adaptation.

As it now stands, the Technology Mechanism lacks full funding even on a short-term basis, its governance and reporting structure are incomplete, its linkages with other bodies inside the Convention are hampered by the chicken/egg dilemma, its cross-cutting support for NAMAs and NAPAs/NAPs is uncertain and ill-defined, and the conversation on what is likely the most political decision of all – how priorities are to be set within the TEC and CTCN – has barely been broached, if at all.
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Aren’t You Lowering Ambition, Japan?

Japan will soon make a decision on new energy and climate policy in light of the Fukushima nuclear accident. ECO supports the voices of the majority of Japanese people, who say, “No, thank you” to nuclear. Nuclear is not a solution.

However, we realized with surprise, Japan considered that mitigation is not possible without nuclear. Believe it or not, the projection of GHG pollution in 2020 for Japan is from 0% to -7% from 1990 levels when Japan chooses a nuclear-free future. This is nearly at the level of the first commitment period Kyoto target (-6%)! Is nuclear really a mitigation solution? ECO believes NOT. Japan could surely reduce CO2 while reducing its dependence on nuclear. Rather, it’s better and faster to realise a low-carbon society through shifting the tremendous nuclear investments to renewables and energy efficiency.

ECO is anxious to know whether Japan intends to discuss raising ambition as a matter of urgency. We have no time to delay. No room to lower efforts. In the last session in Bonn, ECO urged Japan to reaffirm its 25% reduction target by 2020 in Bangkok. Your silence is deafening. So, take the ambition discussion back home, identify any possible reduction potentials other than nuclear (here’s a preview – you will find a lot) and come back with an ambitious target.
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Common Sense – Common Accounting

To enable understanding of mitigation efforts by developed country Parties, transparency is critical. The LCA process has already launched a process to clarify Annex I targets. This is a significant step. Developed country Parties should clarify the assumptions that underlie their targets, including:

  • Emission reduction target (in terms of MTCO2e)
  • Expected emissions reductions
  • Base year
  • Emissions level in the base year (in terms of MTCO2e)
  • Methodology used to calculate the national inventory in the base year
  • Target year
  • Methodology that will be used to calculate the national inventory over the target period
  • Sectors covered by the target
  • Gases covered by the target
  • GWP values
  • Role of LULUCF, including methodology used to calculate emissions and removals from LULUCF
  • Use of surplus emissions units, to the extent used in any second commitment period of the Kyoto Protocol and also used to meet targets under the Convention track
  • Role of any domestic offsets, international offsets and other market­based mechanisms:
  • Methodology used to assess emissions reductions
  • The percentage of (in terms of both the goal and the reduction effort), as well as the absolute amount (in tons of CO2e), of emissions reductions generated that will be used in achieving their mitigation goals.
  • Mechanisms used to prevent double counting

Markets On Our Mind

While most developed nations remain unwilling to commit to legally binding targets for CP2, discussions about market mechanisms have been (un)surprisingly vivid. The fact that carbon market prices are at a record low and surplus allowances threaten to bring prices near zero hasn’t added much urge to increase ambition.

ECO wonders why the many carbon market industry lobbyists haven’t made it clear yet that markets can only flourish with vigorous demand, which can only be created by binding reduction commitments. Let’s get that right: allowing emissions trading schemes from countries without enough demand to reach their voluntary targets with international offsets won’t help. The recent announcement of the Australian ETS linking up to the EU ETS has stirred worries that the lack of an international accounting framework will create a fragmented market that will undermine the environmental integrity of carbon markets altogether.

My dear negotiators, would you honestly buy the right to pollute with Japanese Yen from an Indian company if you don’t know whether the emissions reductions are calculated in watts, horsepower or feet? ECO presumes not. However, it’s definitely maths time: do the numbers and calculate the emissions reductions you need for your market to work.

Not only that, we also need a common accounting framework (look to your left) that ensures 1 tonne is 1 tonne.
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CAN Classifieds

Training available: Advanced deception in the 21st Century.  

Canada invites you to a workshop on how creative accounting can enable you to claim greenhouse gas reductions and decieve domestic and international audiences alike.  All inquiries to Harper Consultants Ltd.

For sale: Cooking Your Books: 100 delicious recipes.
Umbrella Publishing Group. Be in quick as supplies are limited, unlike our carbon credits.

Training available: Deficit reductions the easy way.  Is your carbon deficit looking worse than your financial one?  New Zealand and Canada provide you with basic and advanced training in balancing the books while keeping polluters happy.

Cheating 101: Basic introduction to LULUCF rules and effective use of the flexible mechanisms.

LULUCF Accounting 201: Advanced use of LULUCF rules, how to protect your agriculture sector.

Advanced rules 301: Hiding emissions in QELRO rules, target overshoot, advanced deception techniques, strategic use of the flexible mechanisms.