Tagged: Europe

5 Sep, 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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5 Sep, 2012

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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4 Sep, 2012

The Ugly, the Not So Bad and the Good

ECO listened with great interest to Parties’ expectations of COP18 in Qatar this year. The greatest surprise came from those bottom-up loving Brollies, who mentioned the need to have a significant amount of technical preparation to give Ministers “options” on the Kyoto Protocol. Yes, you heard it, optionSSSSSS. Why do we need plural options? Surely one will suffice? Provisional Application – period.

But it wasn’t all bad, we liked the EU’s call for more creative thinking that shouldn’t just be exclusive to parties. ECO was jumping for joy. We will definitely let our creative juices run wild and are always happy to share these with our European colleagues, as well as others.

But the real music to our ears came from the UAE, which characterized itself, like Qatar, as a small but ambitious country, claiming that many countries in the region have renewable energy initiatives and targets, and hope that Doha can be a chance for these initiatives to get the “international recognition” they deserve. ECO is often wishful, but could this be the onset of support for the Arab countries to submit NAMAs? We hope so.

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4 Sep, 2012

Clarifying Clarifications

The two panels on quantified economy-wide emission reduction targets by developed country Parties left ECO feeling that there was something missing since Bali – like four years perhaps? – or a bit of ambition?

Surely Parties can cite 1(b)(i) from the Bali Action Plan in their sleep (“comparable” – remember)? Yet, as St Lucia pointed out, we still have different base years and metrics. That’s not going to help spotting the loopholes and freeloaders – oh sorry…everyone’s acting in good faith so no need to worry about transparency.

All in all, there are some surprisingly unsophisticated approaches on the table from some rather sophisticated economies – putting forward point targets rather than carbon budgets. And yes, ECO’s talking about those north of Latin America. This includes no clear idea how international credits used by states and provinces are going to affect the national level. ECO was intrigued at issues for California being considered “within the noise” of measurement. Yes, who could possibly be concerned about accounting problems within an economy the size of Australia?

And talking of the latter – ECO believes the EU’s urgings were heard loud and clear. Australia and New Zealand, you’re wanted in the KP. As they say in those parts, “Come on Australia.”
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4 Sep, 2012

AAU Elephants

Negotiators are truly having a tough time putting the pieces for a second commitment period together. But soon they will face the enormous elephant in the room. A recent UNEP report estimates that up to 13 billion tonnes CO₂ of surplus AAUs could be carried over to the next commitment period. This is almost three times the annual emissions of the EU. With the supply of hot air AAUs much higher than current reduction commitments (that are well under the 25-40% below 1990 levels by 2020 actually needed), carry-over would lead to no emission reductions compared to business-as-usual emission projections by 2020. As a matter of fact, CP2 commitments as they stand would likely lead to another surplus. This would be the case even if the large quantity of Russian surplus is excluded. Additionally, carbon credits from the CDM and JI that can be carried over would further lower actual emission reduction levels by 2020 by roughly 6%.

But there is hope! A proposal by the G77, which is technically sound and politically feasible in addressing this enormous loophole, could do the trick. Europe showed in Durban that it can pull its weight internationally by being the driving force behind the agreement for a new climate accord by 2015.
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