European Commission lowers EU Member State CO2 allowances made under the ETS Phase 2 (2008-20012).
The European Commission has imposed stricter targets for 10 European Member State National Allocation Plans than the states had proposed.
The NAPs decided upon were from Germany, Greece, Ireland, Latvia, Lithuania, Luxembourg, Malta, Slovakia, Sweden and the United Kingdom.
These represent 42 per cent of CO2 allowances allocated across Europe in the first phase.
All 10 States except the UK were told by the EC to cut their allocation to firms in the main CO2 emitting sectors (Power, Steel, Mining and Pulp and paper industries).
Five countries were told to make cuts of at least 25 per cent.
ENDS Europe DAILY 2215, 29/11/06
Thursday, November 30, 2006
Wednesday, November 29, 2006
Media: Green business can be profitable
"Green business equals good business"
Article for special advertising supplement appearing in Scientific American Dec 2006 issue written by Björn Stigson, President, World Business Council for Sustainable Development.
Link
Article for special advertising supplement appearing in Scientific American Dec 2006 issue written by Björn Stigson, President, World Business Council for Sustainable Development.
Link
Tuesday, November 28, 2006
Media: BBC Opinion - Regulation required on CC
Dr Matt Prescott, an environmental consultant and web-campaigner for CC solutions, argues that the market can't be relied on to provide solutions to CC, regulation is required.
It will not be easy, but we must learn to accept that consumer choice cannot be expected to solve complex, large-scale problems.
Governments have to step up to the plate and to step in with legislation when it is needed; giving all the responsibility to markets and consumers is not good enough.
We must find the courage to remove the worst products from the market, to build environmental costs into prices, and give the low-carbon alternatives a half-decent chance of getting established.
Consumers will then take care of the rest.
Link
It will not be easy, but we must learn to accept that consumer choice cannot be expected to solve complex, large-scale problems.
Governments have to step up to the plate and to step in with legislation when it is needed; giving all the responsibility to markets and consumers is not good enough.
We must find the courage to remove the worst products from the market, to build environmental costs into prices, and give the low-carbon alternatives a half-decent chance of getting established.
Consumers will then take care of the rest.
Link
Stats: Global Carbon Project - CO2 emissions rising faster since 2000
Global Carbon Project research finds rate of increase in GHG emissions is rising, not falling.
New research from the Global Carbon Project says that emissions are now rising at 2.5% per year, while they were previously rising by less than 1% annually up to the year 2000.
7.9 billion tonnes (gigatonnes, Gt) of carbon passed into the atmosphere in 2005.
In 2000, the figure was 6.8Gt.
"At these rates, it certainly sounds like we'll end up towards the high end of the emission scenarios considered by the IPCC," commented Myles Allen from Oxford University, one of Britain's leading climate modellers. The "high end" of IPCC projections implies a rise in global temperature approaching 5.8C between 1990 and the end of this century.
Corinne Le Quere, of the Global Carbon Project said "Improvements that have been made in the last 30 years appear to be stalling ... We are going to need a real decrease in emissions."
Link
The Global Carbon Project (GCP) was established in 2001. The scientific goal of the project is to develop a complete picture of the global carbon cycle, including both its biophysical and human dimensions together with the interactions and feedbacks between them. The Global Carbon Project is responding to this challenge through a shared partnership between the International Geosphere-Biosphere Programme (IGBP), the International Human Dimensions Programme on Global Environmental Change (IHDP), the World Climate Research Programme (WCRP) and Diversitas. This partnership constitutes the Earth Systems Science Partnership (ESSP).
Link: GCP home
Link: GCP scientific framework document
New research from the Global Carbon Project says that emissions are now rising at 2.5% per year, while they were previously rising by less than 1% annually up to the year 2000.
7.9 billion tonnes (gigatonnes, Gt) of carbon passed into the atmosphere in 2005.
In 2000, the figure was 6.8Gt.
"At these rates, it certainly sounds like we'll end up towards the high end of the emission scenarios considered by the IPCC," commented Myles Allen from Oxford University, one of Britain's leading climate modellers. The "high end" of IPCC projections implies a rise in global temperature approaching 5.8C between 1990 and the end of this century.
Corinne Le Quere, of the Global Carbon Project said "Improvements that have been made in the last 30 years appear to be stalling ... We are going to need a real decrease in emissions."
Link
The Global Carbon Project (GCP) was established in 2001. The scientific goal of the project is to develop a complete picture of the global carbon cycle, including both its biophysical and human dimensions together with the interactions and feedbacks between them. The Global Carbon Project is responding to this challenge through a shared partnership between the International Geosphere-Biosphere Programme (IGBP), the International Human Dimensions Programme on Global Environmental Change (IHDP), the World Climate Research Programme (WCRP) and Diversitas. This partnership constitutes the Earth Systems Science Partnership (ESSP).
Link: GCP home
Link: GCP scientific framework document
Thursday, November 23, 2006
Policy: EU ETS Summary
CN summary of the EU Emissions Trading Scheme, as implemented in the UK
1. EU ETS in the UK - summary
Phase 1 of the ETS commenced in May 2005. It runs until Dec 2007. It caps CO2 emissions in energy intensive industries including:
The EU ETS creates an incentive for companies in the regulated sectors to reduce emissions, so they can trade surplus GHG emission allowances (tonnes of CO2) with other regulated companies whose emissions are rising, and who therefore need to buy extra GHG emission allowances.
Phase 2 of the ETS commences in Jan 2008 to coincide with the Kyoto commitment period (2008 to 2012). The UK government has announced that there will be 3% fewer CO2 allowances available in Phase 2.
The reduction in allowances against business as usual will be borne entirely by the Large Electricity Producers (aka the Electricity Supply Industry). DEFRA estimates that the reduction in allowances from Phase 1 to Phase 2 will result in a one-off rise in industrial energy prices in the region of 1% and approximately 0.5% for domestic users.
The UK’s implementation of the EU ETS is expected to deliver a 16% reduction in UK emissions below 1990 levels by 2010. This is better than the UK’s Kyoto target of 12.5%, but worse than the UK’s domestic goal of a 20% reduction in CO2 emissions by 2010.
While the EU Emissions Trading Directive covers the basket of six greenhouse gases that are included in the Kyoto Protocol (i.e. carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrochlorofluorocarbons (HFCs), and perfluorocarbons (PFCs)), in the UK, the first and second phases of the EU ETS only cover carbon dioxide.
1.1 Link between EU ETS and Kyoto
Under the Kyoto Protocol, the EU is required to make an 8% reduction in emissions compared to 1990 levels by the first Kyoto Protocol commitment period (2008 to 2012). The EU ETS is one of the key policies introduced by the European Union to help meet this target. EU Member States are required to use emissions trading as a means to deliver their Kyoto Protocol commitments for 2008 to 2012.
1.2 What is the EU ETS?
The EU ETS is a cap and trade system. The EU cap is the 8% reduction in emissions required by Kyoto. Within that, each EU country’s cap is different.
The UK’s binding greenhouse gas emission reduction target under the Kyoto Protocol is a 12.5% reduction below 1990 levels by the commitment period (2008–12). The UK cap under the EU ETS is therefore 12.5%.
The main regulator enforcing the EU ETS in England is the Environment Agency.
1.3 National allowances
National allowances are distributed by Member States to the “installations” in the scheme.
Each country divides the emissions it’s allowed to make between the major industrial GHG emitters (i.e. Power, Steel, Mining, Pulp and paper companies). These companies are each given a greenhouse gas emission allowance (equivalent to a number of tonnes of CO2 that they can emit each year).
1.4 Regulated ‘installations’
Installations covered by the EU ETS are those that carry out activities listed in Schedule 1 of the UK Regulations (ETS Regulations 2005). These include:
Power, ie energy activities (e.g. boilers, electricity generations, CHP);
Steel, ie production and processing of ferrous metals;
Mining, ie mineral industries; and
Pulp and paper industries.
The scheme covers the main CO2 intensive industries - power stations, refineries and offshore, iron and steel, cement and lime, paper, food and drink, glass, ceramics, and engineering and vehicles. Overall, these account for around 50% of UK CO2 emissions.
(a) 1. Energy Activities
1.1 Activities of combustion installations* with a rated thermal input exceeding 20 megawatts* (excluding hazardous or municipal waste installations).
*combustion installations = power stations
1.2 Activities of mineral oil refineries*.
* Oil refineries distil crude oil into useful petroleum products, such as gasoline and diesel fuel. The fractionating column is cooler at the top than at the bottom so the vapours can condense more easily while moving up the column. (Diagrammatic Ref: Link)
1.3 Activities of coke ovens*.
* Coke is used in smelting iron ore in blast furnaces. A coke oven bakes coal to distil it. The volatile constituents of the coal, including water, coal-gas and coal-tar, are driven off by baking in an airless oven at temperatures as high as 1,000 degrees C so that the fixed carbon and residual ash are fused together.
(b) 2. Production and processing of ferrous metals
2.1 metal ore roasting* (including sulphide ore) and sintering** installations.
* Metal ores are roasted to extract the metal from the ore.
** Sintering is partial melting. Sintering involves heating powdered metal to below its melting point in order to fuse it.
2.2 Activities of installations for the production of pig iron* or steel (primary or secondary fusion), including continuous casting, with a capacity of more than 2.5 tonnes per hour.
* Pig iron is raw iron, the immediate product of smelting iron ore with coke and limestone in a blast furnace.
(c) 3. Mineral Industries
3.1 Activities of installations for the production of cement clinker in rotary kilns with a production capacity of more than 500 tonnes per day.
3.2 Activities of installations for the production of lime in rotary kilns or other furnaces with a production capacity of more than 50 tonnes per tonnes.
3.3 Activities of installations for the manufacture of glass including glass fibre where the melting capacity of the plant is more than 20 tonnes per day.
3.4 Activities of installations for the manufacture of ceramic products (including roofing tiles, bricks, refractory bricks, tiles, stoneware or porcelain) by firing in kilns where-
(i) the kiln production capacity is more than 75 tonnes per day; or
(ii) the kiln capacity is more than 4m3 and the setting density is more than 300 kg/m3.
(d) 4. Other activities
4.1 Activities of industrial plants for the production of pulp from timber or other fibrous materials.
4.2 Activities of industrial plants for the production of paper and board with a production capacity of more than 20 tonnes per day.
1.5 GHG Emissions Permit
The UK Regulations require all installations carrying out any activity listed in Schedule 1 to hold a greenhouse gas emissions permit.
The permit will specify the number of GHG emissions allowances for each installation (1 allowance = 1 tonne of CO2 equivalent).
(a) Monitoring and reporting
Conditions on the permit require monitoring and reporting of emissions by the installation company.
(b) Annual surrender of quota
At the end of each year installation companies are required to ensure they have enough allowances to account for their installation’s actual emissions.
They can buy additional allowances (beyond their original allocation), or sell any surplus allowances generated from reducing their emissions below their allocation.
The buying and selling of allowances takes place on an EU-wide market. All transfers and surrenders of allowances take place on electronic national registries.
(c) Verification
Each year, emissions data for the previous calendar year must be verified (by a verifier accredited by the UK Accreditation Service (UKAS)).
(d) Penalty
There is a penalty for producing excess emissions (e.g. EUR 40 per tonne of CO2 equivalent (in Phase I) and requirement to make up the surrender shortfall in the following year).
1.6 Phases
(a) Phase 1
The first phase of the EU ETS runs from 2005 – Dec 2007; Phase II runs from Jan 2008 – 2012.
Carbon dioxide is the only greenhouse gas covered by Phase I of the EU ETS.
It has not been agreed between EU member states whether other greenhouse gases or activities will be covered in Phase II (2008 to 2012).
In May 2005, the UK allocated 93.7% of its total national allowance to existing UK installations (for free). The remaining 6.3% were held as a new entrant reserve
Verified emissions for Phase I installations were 242.2 Mt CO2* per year.
*A tonne is a unit of mass equal to 1,000 kilograms. A Megatonne (Mt) (106) is a million tonnes, or 1,000,000,000 kg (1 billion kg). The UK Phase 1 CO2 emissions were therefore 242,200,000,000 kg of carbon dioxide (242 billion kilograms of carbon dioxide per year).
(b) Phase 2
The emissions cap for Phase 2 is 238 Mt CO2 per year.
Phase 2 coincides with the first Kyoto period (2008-12). In the UK, Phase 2 of the EU ETS only covers carbon dioxide.
The UK government will allocate 238 million allowances (tonnes of CO2 equivalent) per year during the second phase, which will run between 2008-2012, compared to 245 million allowances per year under the current phase of the scheme – a 3% reduction in the allowances available.
This represents a reduction of 8 million tonnes of Carbon per year below the business as usual scenario. The reduction in allowances against business as usual will be borne entirely by the Large Electricity Producers (aka the Electricity Supply Industry).
So that emission reductions occur within the EU, the UK Government has set a limit on the use of project credits* at an installation level. The limit is an 8% of an installation’s allowance.
*Project credits are Carbon Credits under the Kyoto Joint Implementation (‘JI’) or Clean Development Mechanism (‘CDM’), that are valid for use under the EU ETS because of the EU linking directive and the UK Regulations Transposing The Linking Directive into UK law.
Recognising the uncertainty as to final emissions in any one year, this limit will apply annually and operators may bank their permitted level of project credit use between years within the period.
It is predicted to put the UK on course to achieve a 16.2% reduction in carbon dioxide emissions by 2010. This is better than the UK’s Kyoto target of 12.5%, but worse than the UK’s domestic goal of a 20% reduction in CO2 emissions by 2010.
DEFRA estimates that the reduction in allowances from Phase 1 to Phase 2 will result in a one-off rise in industrial energy prices in the region of 1% and approximately 0.5% for domestic users.
2. UNFCCC – KYOTO JI and CDM mechanisms
2.1 Joint Implementation
JI allows companies in UNFCCC Annex 1 Parties (the industrialized countries) to undertake emission reduction projects in other Annex 1 Countries.
JI projects generate emission reductions units (ERUs).
2.2 Clean Development Mechanism
CDM allows companies in UNVCCC Annex 1 countries to implement emission reduction projects and contribute to sustainable development in countries without a Kyoto target (non-Annex I Parties, i.e. developing countries).
CDM projects are awarded certified emission reduction units (CERs).
2.3 Kyoto Project credits and the EU ETS
Project credits – which refer to credits generated in developing countries through the Clean Development Mechanism (CERs), or in other developed countries by Joint Implementation projects (ERUs) – may be used to help meet the caps set for operators under the EU ETS.
This was made possible by the EU Linking Directive, which amends the EU ETS Directive and provides for the use of credits from the Kyoto Protocol’s flexible mechanisms in the EU Emissions Trading Scheme. It was transposed into UK law via regulations which came into effect in the UK on 13 November 2005.
The use of these credits provides a driver for sustainable energy projects in the developing world and for technology transfer. However, member states need to ensure a balance between domestic and international effort.
1. EU ETS in the UK - summary
Phase 1 of the ETS commenced in May 2005. It runs until Dec 2007. It caps CO2 emissions in energy intensive industries including:
- energy (power stations, oil refineries, coal coke processing);
- metal works (processing metal ores, such as for making iron and steel);
- mineral industries (including cement, lime and glass production using furnaces, and ceramics, including roofing tiles, bricks, stoneware or porcelain, using kilns); and
- pulp and paper production.
The EU ETS creates an incentive for companies in the regulated sectors to reduce emissions, so they can trade surplus GHG emission allowances (tonnes of CO2) with other regulated companies whose emissions are rising, and who therefore need to buy extra GHG emission allowances.
Phase 2 of the ETS commences in Jan 2008 to coincide with the Kyoto commitment period (2008 to 2012). The UK government has announced that there will be 3% fewer CO2 allowances available in Phase 2.
The reduction in allowances against business as usual will be borne entirely by the Large Electricity Producers (aka the Electricity Supply Industry). DEFRA estimates that the reduction in allowances from Phase 1 to Phase 2 will result in a one-off rise in industrial energy prices in the region of 1% and approximately 0.5% for domestic users.
The UK’s implementation of the EU ETS is expected to deliver a 16% reduction in UK emissions below 1990 levels by 2010. This is better than the UK’s Kyoto target of 12.5%, but worse than the UK’s domestic goal of a 20% reduction in CO2 emissions by 2010.
While the EU Emissions Trading Directive covers the basket of six greenhouse gases that are included in the Kyoto Protocol (i.e. carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrochlorofluorocarbons (HFCs), and perfluorocarbons (PFCs)), in the UK, the first and second phases of the EU ETS only cover carbon dioxide.
1.1 Link between EU ETS and Kyoto
Under the Kyoto Protocol, the EU is required to make an 8% reduction in emissions compared to 1990 levels by the first Kyoto Protocol commitment period (2008 to 2012). The EU ETS is one of the key policies introduced by the European Union to help meet this target. EU Member States are required to use emissions trading as a means to deliver their Kyoto Protocol commitments for 2008 to 2012.
1.2 What is the EU ETS?
The EU ETS is a cap and trade system. The EU cap is the 8% reduction in emissions required by Kyoto. Within that, each EU country’s cap is different.
The UK’s binding greenhouse gas emission reduction target under the Kyoto Protocol is a 12.5% reduction below 1990 levels by the commitment period (2008–12). The UK cap under the EU ETS is therefore 12.5%.
The main regulator enforcing the EU ETS in England is the Environment Agency.
1.3 National allowances
National allowances are distributed by Member States to the “installations” in the scheme.
Each country divides the emissions it’s allowed to make between the major industrial GHG emitters (i.e. Power, Steel, Mining, Pulp and paper companies). These companies are each given a greenhouse gas emission allowance (equivalent to a number of tonnes of CO2 that they can emit each year).
1.4 Regulated ‘installations’
Installations covered by the EU ETS are those that carry out activities listed in Schedule 1 of the UK Regulations (ETS Regulations 2005). These include:
Power, ie energy activities (e.g. boilers, electricity generations, CHP);
Steel, ie production and processing of ferrous metals;
Mining, ie mineral industries; and
Pulp and paper industries.
The scheme covers the main CO2 intensive industries - power stations, refineries and offshore, iron and steel, cement and lime, paper, food and drink, glass, ceramics, and engineering and vehicles. Overall, these account for around 50% of UK CO2 emissions.
(a) 1. Energy Activities
1.1 Activities of combustion installations* with a rated thermal input exceeding 20 megawatts* (excluding hazardous or municipal waste installations).
*combustion installations = power stations
1.2 Activities of mineral oil refineries*.
* Oil refineries distil crude oil into useful petroleum products, such as gasoline and diesel fuel. The fractionating column is cooler at the top than at the bottom so the vapours can condense more easily while moving up the column. (Diagrammatic Ref: Link)
1.3 Activities of coke ovens*.
* Coke is used in smelting iron ore in blast furnaces. A coke oven bakes coal to distil it. The volatile constituents of the coal, including water, coal-gas and coal-tar, are driven off by baking in an airless oven at temperatures as high as 1,000 degrees C so that the fixed carbon and residual ash are fused together.
(b) 2. Production and processing of ferrous metals
2.1 metal ore roasting* (including sulphide ore) and sintering** installations.
* Metal ores are roasted to extract the metal from the ore.
** Sintering is partial melting. Sintering involves heating powdered metal to below its melting point in order to fuse it.
2.2 Activities of installations for the production of pig iron* or steel (primary or secondary fusion), including continuous casting, with a capacity of more than 2.5 tonnes per hour.
* Pig iron is raw iron, the immediate product of smelting iron ore with coke and limestone in a blast furnace.
(c) 3. Mineral Industries
3.1 Activities of installations for the production of cement clinker in rotary kilns with a production capacity of more than 500 tonnes per day.
3.2 Activities of installations for the production of lime in rotary kilns or other furnaces with a production capacity of more than 50 tonnes per tonnes.
3.3 Activities of installations for the manufacture of glass including glass fibre where the melting capacity of the plant is more than 20 tonnes per day.
3.4 Activities of installations for the manufacture of ceramic products (including roofing tiles, bricks, refractory bricks, tiles, stoneware or porcelain) by firing in kilns where-
(i) the kiln production capacity is more than 75 tonnes per day; or
(ii) the kiln capacity is more than 4m3 and the setting density is more than 300 kg/m3.
(d) 4. Other activities
4.1 Activities of industrial plants for the production of pulp from timber or other fibrous materials.
4.2 Activities of industrial plants for the production of paper and board with a production capacity of more than 20 tonnes per day.
1.5 GHG Emissions Permit
The UK Regulations require all installations carrying out any activity listed in Schedule 1 to hold a greenhouse gas emissions permit.
The permit will specify the number of GHG emissions allowances for each installation (1 allowance = 1 tonne of CO2 equivalent).
(a) Monitoring and reporting
Conditions on the permit require monitoring and reporting of emissions by the installation company.
(b) Annual surrender of quota
At the end of each year installation companies are required to ensure they have enough allowances to account for their installation’s actual emissions.
They can buy additional allowances (beyond their original allocation), or sell any surplus allowances generated from reducing their emissions below their allocation.
The buying and selling of allowances takes place on an EU-wide market. All transfers and surrenders of allowances take place on electronic national registries.
(c) Verification
Each year, emissions data for the previous calendar year must be verified (by a verifier accredited by the UK Accreditation Service (UKAS)).
(d) Penalty
There is a penalty for producing excess emissions (e.g. EUR 40 per tonne of CO2 equivalent (in Phase I) and requirement to make up the surrender shortfall in the following year).
1.6 Phases
(a) Phase 1
The first phase of the EU ETS runs from 2005 – Dec 2007; Phase II runs from Jan 2008 – 2012.
Carbon dioxide is the only greenhouse gas covered by Phase I of the EU ETS.
It has not been agreed between EU member states whether other greenhouse gases or activities will be covered in Phase II (2008 to 2012).
In May 2005, the UK allocated 93.7% of its total national allowance to existing UK installations (for free). The remaining 6.3% were held as a new entrant reserve
Verified emissions for Phase I installations were 242.2 Mt CO2* per year.
*A tonne is a unit of mass equal to 1,000 kilograms. A Megatonne (Mt) (106) is a million tonnes, or 1,000,000,000 kg (1 billion kg). The UK Phase 1 CO2 emissions were therefore 242,200,000,000 kg of carbon dioxide (242 billion kilograms of carbon dioxide per year).
(b) Phase 2
The emissions cap for Phase 2 is 238 Mt CO2 per year.
Phase 2 coincides with the first Kyoto period (2008-12). In the UK, Phase 2 of the EU ETS only covers carbon dioxide.
The UK government will allocate 238 million allowances (tonnes of CO2 equivalent) per year during the second phase, which will run between 2008-2012, compared to 245 million allowances per year under the current phase of the scheme – a 3% reduction in the allowances available.
This represents a reduction of 8 million tonnes of Carbon per year below the business as usual scenario. The reduction in allowances against business as usual will be borne entirely by the Large Electricity Producers (aka the Electricity Supply Industry).
So that emission reductions occur within the EU, the UK Government has set a limit on the use of project credits* at an installation level. The limit is an 8% of an installation’s allowance.
*Project credits are Carbon Credits under the Kyoto Joint Implementation (‘JI’) or Clean Development Mechanism (‘CDM’), that are valid for use under the EU ETS because of the EU linking directive and the UK Regulations Transposing The Linking Directive into UK law.
Recognising the uncertainty as to final emissions in any one year, this limit will apply annually and operators may bank their permitted level of project credit use between years within the period.
It is predicted to put the UK on course to achieve a 16.2% reduction in carbon dioxide emissions by 2010. This is better than the UK’s Kyoto target of 12.5%, but worse than the UK’s domestic goal of a 20% reduction in CO2 emissions by 2010.
DEFRA estimates that the reduction in allowances from Phase 1 to Phase 2 will result in a one-off rise in industrial energy prices in the region of 1% and approximately 0.5% for domestic users.
2. UNFCCC – KYOTO JI and CDM mechanisms
2.1 Joint Implementation
JI allows companies in UNFCCC Annex 1 Parties (the industrialized countries) to undertake emission reduction projects in other Annex 1 Countries.
JI projects generate emission reductions units (ERUs).
2.2 Clean Development Mechanism
CDM allows companies in UNVCCC Annex 1 countries to implement emission reduction projects and contribute to sustainable development in countries without a Kyoto target (non-Annex I Parties, i.e. developing countries).
CDM projects are awarded certified emission reduction units (CERs).
2.3 Kyoto Project credits and the EU ETS
Project credits – which refer to credits generated in developing countries through the Clean Development Mechanism (CERs), or in other developed countries by Joint Implementation projects (ERUs) – may be used to help meet the caps set for operators under the EU ETS.
This was made possible by the EU Linking Directive, which amends the EU ETS Directive and provides for the use of credits from the Kyoto Protocol’s flexible mechanisms in the EU Emissions Trading Scheme. It was transposed into UK law via regulations which came into effect in the UK on 13 November 2005.
The use of these credits provides a driver for sustainable energy projects in the developing world and for technology transfer. However, member states need to ensure a balance between domestic and international effort.
UNFCCC Backgrounder page
UNFCCC Annex 1 Parties list
Annex 1 of the UNFCCC
Link
1. Australia
2. Austria
3. Belarus*
4. Belgium
5. Bulgaria*
6. Canada
7. Croatia*/**
8. Czech Republic*/**
9. Denmark
10. European Economic Community
11. Estonia*
12. Finland
13. France
14. Germany
15. Greece
16. Hungary*
17. Iceland
18. Ireland
19. Italy
20. Japan
21. Latvia*
22. Liechtenstein**
23. Lithuania*
24. Luxembourg
25. Monaco**
26. Netherlands
27. New Zealand
28. Norway
29. Poland*
30. Portugal
31. Romania*
32. Russian Federation*
33. Slovakia*/**
34. Slovenia*/**
35. Spain
36. Sweden
37. Switzerland
38. Turkey
39. Ukraine*
40. United Kingdom of Great Britain and Northern Ireland
41. United States of America
*Countries that are undergoing the process of transition to a market economy.
** Countries added to Annex I by an amendment that entered into force on 13 August 1998.
Link
1. Australia
2. Austria
3. Belarus*
4. Belgium
5. Bulgaria*
6. Canada
7. Croatia*/**
8. Czech Republic*/**
9. Denmark
10. European Economic Community
11. Estonia*
12. Finland
13. France
14. Germany
15. Greece
16. Hungary*
17. Iceland
18. Ireland
19. Italy
20. Japan
21. Latvia*
22. Liechtenstein**
23. Lithuania*
24. Luxembourg
25. Monaco**
26. Netherlands
27. New Zealand
28. Norway
29. Poland*
30. Portugal
31. Romania*
32. Russian Federation*
33. Slovakia*/**
34. Slovenia*/**
35. Spain
36. Sweden
37. Switzerland
38. Turkey
39. Ukraine*
40. United Kingdom of Great Britain and Northern Ireland
41. United States of America
*Countries that are undergoing the process of transition to a market economy.
** Countries added to Annex I by an amendment that entered into force on 13 August 1998.
UNFCCC Kyoto Protocol home page
UNFCCC Kyoto Protocol home page
Link
The 1997 Kyoto Protocol shares the UNFCCC’s objective, principles and institutions, but significantly strengthens the Convention by committing Annex I Parties to individual, legally-binding targets to limit or reduce their greenhouse gas emissions. Only Parties to the Convention that have also become Parties to the Protocol (i.e by ratifying, accepting, approving, or acceding to it) will be bound by the Protocol’s commitments. 165 countries have ratified the Protocol to date. Of these, 35 countries and the EEC are required to reduce greenhouse gas emissions below levels specified for each of them in the treaty. The individual targets for Annex I Parties are listed in the Kyoto Protocol’s Annex B. These add up to a total cut in greenhouse-gas emissions of at least 5% from 1990 levels in the commitment period 2008-2012.
Link
The 1997 Kyoto Protocol shares the UNFCCC’s objective, principles and institutions, but significantly strengthens the Convention by committing Annex I Parties to individual, legally-binding targets to limit or reduce their greenhouse gas emissions. Only Parties to the Convention that have also become Parties to the Protocol (i.e by ratifying, accepting, approving, or acceding to it) will be bound by the Protocol’s commitments. 165 countries have ratified the Protocol to date. Of these, 35 countries and the EEC are required to reduce greenhouse gas emissions below levels specified for each of them in the treaty. The individual targets for Annex I Parties are listed in the Kyoto Protocol’s Annex B. These add up to a total cut in greenhouse-gas emissions of at least 5% from 1990 levels in the commitment period 2008-2012.
Stats: UNFCCC powerpoint presentation of 2006 GHG Emissions Inventory Data
The GHG emissions data submitted by Annex I (industrialized) Parties under the United Nations Climate Change Convention are considered accurate and reliable as a basis for assessing progress in emission reductions. The report includes data for all 41 Annex I (industrialized) Parties to the Climate Change Convention.
Every year, developed countries submit their greenhouse gas (GHG) emissions data to the United Nations Climate Change Secretariat, which then publishes an annual report on the latest available data on GHG emissions from these countries. The 2006 GHG data report covers emissions from 1990 to 2004.
Link
Every year, developed countries submit their greenhouse gas (GHG) emissions data to the United Nations Climate Change Secretariat, which then publishes an annual report on the latest available data on GHG emissions from these countries. The 2006 GHG data report covers emissions from 1990 to 2004.
Link
DEFRA's (UK Gov) "An Operator’s Guide to the EU Emissions Trading Scheme - The steps to compliance", May 2006
Link
Link
Wednesday, November 22, 2006
Media: 100+ Megawatt solar power plants planned
Big solar plans: China, Portugal, Israel, Australia.
The largest solar power plant in the world today is
- China
China has announced it will build a 100 megawatt (mw) project to be located in the northwestern province of Gansu. Planners chose the "oasis town" of Dunhuang for the solar plant. Construction is expected to take five years
Link
- Portugal
Portugal announced a 116 megawatt development, to be located site at an abandoned pyrite mine near the town of Beja, in the southern Alentejo region.
A consortium of mainly German companies plans to erect 116 hexagonal clusters of solar panels. A German manufacturer of solar panels has said it also plans to build a factory at the site, bringing 250 permanent jobs to one of the poorest regions of Europe.
Link
- Israel
Israel is reportedly planning a 100 megawatt solar power station for the Negev desert.
- Australia
The Australian government will contribute 75 million Australian dollars (£30.5million) to a 420 million dollar (£171million) project to build a 154 megawatt solar power plant in Victoria, which will use mirrored panels to concentrate the sun's rays, Treasurer Peter Costello said.
Link
- US
A 500 megawatt solar concentrator plant is planned in southern California.
Link 1
Link 2
The largest solar power plant in the world today is
- China
China has announced it will build a 100 megawatt (mw) project to be located in the northwestern province of Gansu. Planners chose the "oasis town" of Dunhuang for the solar plant. Construction is expected to take five years
Link
- Portugal
Portugal announced a 116 megawatt development, to be located site at an abandoned pyrite mine near the town of Beja, in the southern Alentejo region.
A consortium of mainly German companies plans to erect 116 hexagonal clusters of solar panels. A German manufacturer of solar panels has said it also plans to build a factory at the site, bringing 250 permanent jobs to one of the poorest regions of Europe.
Link
- Israel
Israel is reportedly planning a 100 megawatt solar power station for the Negev desert.
- Australia
The Australian government will contribute 75 million Australian dollars (£30.5million) to a 420 million dollar (£171million) project to build a 154 megawatt solar power plant in Victoria, which will use mirrored panels to concentrate the sun's rays, Treasurer Peter Costello said.
Link
- US
A 500 megawatt solar concentrator plant is planned in southern California.
Link 1
Link 2
Tuesday, November 21, 2006
Media: BBC - UK Carbon Trust launches LCA for CO2 emissions
A scheme to help companies measure the total amount of carbon emissions from their goods and services has been launched by the Carbon Trust.
The new scheme's "carbon investigations" will look at the amount of carbon being emitted at each stage of a product's life; from the supply of raw materials and production, through to delivery, consumption and disposal. This approach is also known as a "lifecycle assessment" or "cradle-to-grave" analysis.
Link
The new scheme's "carbon investigations" will look at the amount of carbon being emitted at each stage of a product's life; from the supply of raw materials and production, through to delivery, consumption and disposal. This approach is also known as a "lifecycle assessment" or "cradle-to-grave" analysis.
Link
Monday, November 20, 2006
Media: Nairobi outcomes - Belarus
Media: Belarus allowed to trade ‘hot air’
Kyoto parties agreed to allow Belarus to adopt a binding limit on its emissions of greenhouse gases from 2008-12. But Belarus is well within its new target to cut emissions, meaning it can sell surplus rights using the carbon trading mechanism. The decision was conditional that Belarus would have to reinvest revenues from its emission trading into making emissions cuts.
Link
Kyoto parties agreed to allow Belarus to adopt a binding limit on its emissions of greenhouse gases from 2008-12. But Belarus is well within its new target to cut emissions, meaning it can sell surplus rights using the carbon trading mechanism. The decision was conditional that Belarus would have to reinvest revenues from its emission trading into making emissions cuts.
Link
Media: Nairobi outcomes - post Kyoto plan by 2008
Key Nairobi outcome: review Kyoto by 2008
Ministers at the Nairobi UNFCCC COP have agreed to a review of the Kyoto Protocol. The review is to be concluded by 2008.
This proposed review of the effectiveness of the Kyoto Protocol could open the way to extending and widening it beyond 2012.
Russia has put forward a proposal to allow developing countries to sign up for cuts in greenhouse gas emissions under Kyoto.
German Environment Minister, Sigmar Gabriel, said the talks had achieved too little: "It's not enough, what we've reached in the conference," … "We have heard many things about national interests ... but relatively seldom about climate change".
Barbara Helfferich, spokeswoman for the European Commission said "If we get the ... review done in 2008 we are well on our way for a new climate change regime after 2012."
Kyoto obliges Annex 1 parties to cut emissions to 5 percent below 1990 levels by 2012. Those parties account for 30 percent of all GHG emissions.
Link
Ministers at the Nairobi UNFCCC COP have agreed to a review of the Kyoto Protocol. The review is to be concluded by 2008.
This proposed review of the effectiveness of the Kyoto Protocol could open the way to extending and widening it beyond 2012.
Russia has put forward a proposal to allow developing countries to sign up for cuts in greenhouse gas emissions under Kyoto.
German Environment Minister, Sigmar Gabriel, said the talks had achieved too little: "It's not enough, what we've reached in the conference," … "We have heard many things about national interests ... but relatively seldom about climate change".
Barbara Helfferich, spokeswoman for the European Commission said "If we get the ... review done in 2008 we are well on our way for a new climate change regime after 2012."
Kyoto obliges Annex 1 parties to cut emissions to 5 percent below 1990 levels by 2012. Those parties account for 30 percent of all GHG emissions.
Link
Model: IPPR peak and decline emissions model results
IPPR Policy Paper: “Designing emissions pathways to reduce the risk of dangerous climate change”
Summary:
The report estimates the emissions policies necessary to reduce temperature and impacts risks to any chosen level. It finds that:
● Even if CO2 is reduced to 60% below 1990 levels by 2050 there's still a 16-43 % risk of exceeding the 'dangerous threshhold of 2ºC.
● If CO2 is reduced to 80% below 1990 levels by 2050 there's still a 9-26 % risk of exceeding 2ºC
The most widespread interpretation of ‘dangerous climate change’ has been the definition of the ‘2ºC threshold’. The goal of holding global average temperature increase to less than 2ºC above the pre-industrial level has been a stated objective of the European Union, including the UK government, for a number of years.
Based Baer 2005 and Retallack 2005 the Report suggests that the likely and possible consequences of exceeding the 2ºC threshold warrant seeking a high to very high likelihood of staying below the 2ºC threshold. This is interpreted in this Report, quantitatively, as requiring no more than a 10 to 25 per cent likelihood of exceeding the 2ºC threshold.
Our primary focus in this study, then, is to develop estimates of emissions pathways that lead to a ‘peak and decline’ in both CO2 concentrations and in the net equivalent CO2 concentration (including other GHGs) and that have a high likelihood of keeping the average surface temperature below the 2ºC threshold.
The 2006 CO2 concentration is 380ppm.
The report discusses the risk associated with a non peak and decline scenario - the familiar stabilisation scenario in which CO2 concentrations reach 450 ppm and are held at that level indefinitely. In this example the Report finds that the likely risk of exceeding temperature thresholds in the next 200 years are as follows:
● Risk of exceeding 2ºC: between 46 and 85 per cent
● Risk of exceeding 2.5ºC: between 21 and 55 per cent
● Risk of exceeding 3ºC: between 11 and 24 per cent
● Risk of exceeding 3.5ºC: between 4 and 11 per cent
Scenarios in which CO2 concentrations reach 500 or 550 ppm have a correspondingly greater risk of exceeding 2°C: 70-95 per cent and 78-99 per cent respectively.
In the six peak and decline scenarios modelled in th Report, global emissions peak between 2010 and 2014, and the maximum annual rate of emissions reductions – between three and five per cent (depending on the scenario) – are reached between 2015 and 2020. (We discuss the modelling of non-CO2 GHGs and aerosols in the text.) Here we show the results for the highest and lowest of the scenarios and one in between. The results for global CO2 emissions are sobering:
● Peak in 2014, three per cent maximum annual rate of decline, 48 per cent reduction below 1990 levels by 2050: 20-49 per cent risk of exceeding 2ºC.
● Peak in 2010, three per cent maximum annual rate of decline, 57 per cent reduction below 1990 levels by 2050: 16-43 per cent risk of exceeding 2ºC.
● Peak in 2010, five per cent maximum annual rate of decline, 81 per cent reduction below 1990 levels by 2050: 9-26 per cent risk of exceeding 2ºC.
The message should already be clear: while very rapid reductions can greatly reduce the level of risk, it nevertheless remains the case that, even with the strictest measures we model, the risk of exceeding the 2ºC threshold is in the order of 10 to 25 per cent.
What these calculations show is that, if the 2ºC threshold is taken seriously, our situation is indeed very urgent.
In addition to our modelling of global emissions scenarios, we also make estimates of the allowable emissions for the UK under our peak-and-decline scenarios. Assuming that global per capita emissions of CO2 converge no later than 2050, we calculate that the UK’s fair global allocation in 2050 would be in the order of 88 to 94 per cent below 1990 levels, compared with the 60 per cent cuts that have been proposed by the UK government.
Link
Summary:
The report estimates the emissions policies necessary to reduce temperature and impacts risks to any chosen level. It finds that:
● Even if CO2 is reduced to 60% below 1990 levels by 2050 there's still a 16-43 % risk of exceeding the 'dangerous threshhold of 2ºC.
● If CO2 is reduced to 80% below 1990 levels by 2050 there's still a 9-26 % risk of exceeding 2ºC
The most widespread interpretation of ‘dangerous climate change’ has been the definition of the ‘2ºC threshold’. The goal of holding global average temperature increase to less than 2ºC above the pre-industrial level has been a stated objective of the European Union, including the UK government, for a number of years.
Based Baer 2005 and Retallack 2005 the Report suggests that the likely and possible consequences of exceeding the 2ºC threshold warrant seeking a high to very high likelihood of staying below the 2ºC threshold. This is interpreted in this Report, quantitatively, as requiring no more than a 10 to 25 per cent likelihood of exceeding the 2ºC threshold.
Our primary focus in this study, then, is to develop estimates of emissions pathways that lead to a ‘peak and decline’ in both CO2 concentrations and in the net equivalent CO2 concentration (including other GHGs) and that have a high likelihood of keeping the average surface temperature below the 2ºC threshold.
The 2006 CO2 concentration is 380ppm.
The report discusses the risk associated with a non peak and decline scenario - the familiar stabilisation scenario in which CO2 concentrations reach 450 ppm and are held at that level indefinitely. In this example the Report finds that the likely risk of exceeding temperature thresholds in the next 200 years are as follows:
● Risk of exceeding 2ºC: between 46 and 85 per cent
● Risk of exceeding 2.5ºC: between 21 and 55 per cent
● Risk of exceeding 3ºC: between 11 and 24 per cent
● Risk of exceeding 3.5ºC: between 4 and 11 per cent
Scenarios in which CO2 concentrations reach 500 or 550 ppm have a correspondingly greater risk of exceeding 2°C: 70-95 per cent and 78-99 per cent respectively.
In the six peak and decline scenarios modelled in th Report, global emissions peak between 2010 and 2014, and the maximum annual rate of emissions reductions – between three and five per cent (depending on the scenario) – are reached between 2015 and 2020. (We discuss the modelling of non-CO2 GHGs and aerosols in the text.) Here we show the results for the highest and lowest of the scenarios and one in between. The results for global CO2 emissions are sobering:
● Peak in 2014, three per cent maximum annual rate of decline, 48 per cent reduction below 1990 levels by 2050: 20-49 per cent risk of exceeding 2ºC.
● Peak in 2010, three per cent maximum annual rate of decline, 57 per cent reduction below 1990 levels by 2050: 16-43 per cent risk of exceeding 2ºC.
● Peak in 2010, five per cent maximum annual rate of decline, 81 per cent reduction below 1990 levels by 2050: 9-26 per cent risk of exceeding 2ºC.
The message should already be clear: while very rapid reductions can greatly reduce the level of risk, it nevertheless remains the case that, even with the strictest measures we model, the risk of exceeding the 2ºC threshold is in the order of 10 to 25 per cent.
What these calculations show is that, if the 2ºC threshold is taken seriously, our situation is indeed very urgent.
In addition to our modelling of global emissions scenarios, we also make estimates of the allowable emissions for the UK under our peak-and-decline scenarios. Assuming that global per capita emissions of CO2 converge no later than 2050, we calculate that the UK’s fair global allocation in 2050 would be in the order of 88 to 94 per cent below 1990 levels, compared with the 60 per cent cuts that have been proposed by the UK government.
Link
Policy: IPPR Zero Waste vision report
Institute for Public Policy Research (IPPR) report: "A Zero Waste UK"
A Zero Waste UK offers an alternative vision of a shared responsibility between government, product manufacturers, retailers and consumers to increase recycling and waste prevention.
Nick Pearce, the IPPR director, said: "Business needs to take greater responsibility for the whole life of products by paying a product tax that goes towards payment for disposal."
"Taxing disposable products to encourage consumers to switch to more durable alternatives, or taxing products to pay for their recycling, will give manufacturers no choice but to ultimately design out waste," said Julie Hill of the Green Alliance.
Link
A Zero Waste UK offers an alternative vision of a shared responsibility between government, product manufacturers, retailers and consumers to increase recycling and waste prevention.
Nick Pearce, the IPPR director, said: "Business needs to take greater responsibility for the whole life of products by paying a product tax that goes towards payment for disposal."
"Taxing disposable products to encourage consumers to switch to more durable alternatives, or taxing products to pay for their recycling, will give manufacturers no choice but to ultimately design out waste," said Julie Hill of the Green Alliance.
Link
Media: continued CC trading growth requires post 2012 agreement soon
Risk for carbon trading growth: gap between Kyoto 2012 sunset and a new emissions capping agreement.
A post Kyoto deal for beyond 2012 is expected to be reached in 2009 or 2010. This would further boost demand for renewable energy and rights to emit greenhouse gases - carbon credits.
Britain set up its own carbon trading scheme in 2002 .
Kyoto came into force on 16 Feb 2005
The European Union's Emissions Trading Scheme was launched in 2005.
Trading in carbon credits is expected to be worth 20 billion euros (US$25.62 billion) this year, double the level in 2005 when Kyoto came into force and the EU's trading scheme started.
"In 2012 the carbon market will be worth US$40 billion," said Sultan Ahmed Al Jaber, chief executive officer of Masdar, oil-rich Abu Dhabi's Future Energy Company, which established the fund with Credit Suisse and the Consensus Business Group.
One possible problem looms -- while a deal to extend Kyoto beyond 2012 is expected, investors are worried about a possible gap before the new regime starts, if talks go to the wire. "The big risk is you will not get post 2012 certainty early enough. All those big investments could shudder to a halt," Climate Change Capital's Hobley said.
Link
A post Kyoto deal for beyond 2012 is expected to be reached in 2009 or 2010. This would further boost demand for renewable energy and rights to emit greenhouse gases - carbon credits.
Britain set up its own carbon trading scheme in 2002 .
Kyoto came into force on 16 Feb 2005
The European Union's Emissions Trading Scheme was launched in 2005.
Trading in carbon credits is expected to be worth 20 billion euros (US$25.62 billion) this year, double the level in 2005 when Kyoto came into force and the EU's trading scheme started.
"In 2012 the carbon market will be worth US$40 billion," said Sultan Ahmed Al Jaber, chief executive officer of Masdar, oil-rich Abu Dhabi's Future Energy Company, which established the fund with Credit Suisse and the Consensus Business Group.
One possible problem looms -- while a deal to extend Kyoto beyond 2012 is expected, investors are worried about a possible gap before the new regime starts, if talks go to the wire. "The big risk is you will not get post 2012 certainty early enough. All those big investments could shudder to a halt," Climate Change Capital's Hobley said.
Link
Media: Currency market analysis of CC impacts
Clinically bleak appraisal of CC impacts by money market investors
"Droughts, flooding and food shortages are consequences that can impact economies, and thus currency prices," said Michael Woolfolk, currency strategist with Bank of New York
At a U.N climate conference in Nairobi this month, Washington reiterated its stance by rejecting pleas from U.N Secretary-General Kofi Annan to cut emissions of greenhouse gases.
Australia is the world's third largest wheat exporter but the drought has seen this year's wheat crop size fall by more than 60 percent to its smallest in 12 years, contributing to wheat prices rising to ten years highs on the Chicago Board of Trade.
The longer term outlook for Australian farming is starting to look bleaker, with a farmer committing suicide every four days, according to beyondblue, an Australian national mental health organization.
Australia's cities are starting to run out of water and every major metropolitan area has imposed restrictions on water use.
The Australian dollar is up 4.6 percent this year against the greenback but largely on the back of rising interest rates, and an economy bolstered by demand from China for it's mineral wealth.
The Canadian dollar may be a better bet longer term, as Canada may be able to supply water to the south western United States which is also starting to suffer from water supply problems.
Link
"Droughts, flooding and food shortages are consequences that can impact economies, and thus currency prices," said Michael Woolfolk, currency strategist with Bank of New York
At a U.N climate conference in Nairobi this month, Washington reiterated its stance by rejecting pleas from U.N Secretary-General Kofi Annan to cut emissions of greenhouse gases.
Australia is the world's third largest wheat exporter but the drought has seen this year's wheat crop size fall by more than 60 percent to its smallest in 12 years, contributing to wheat prices rising to ten years highs on the Chicago Board of Trade.
The longer term outlook for Australian farming is starting to look bleaker, with a farmer committing suicide every four days, according to beyondblue, an Australian national mental health organization.
Australia's cities are starting to run out of water and every major metropolitan area has imposed restrictions on water use.
The Australian dollar is up 4.6 percent this year against the greenback but largely on the back of rising interest rates, and an economy bolstered by demand from China for it's mineral wealth.
The Canadian dollar may be a better bet longer term, as Canada may be able to supply water to the south western United States which is also starting to suffer from water supply problems.
Link
Media: APEC Hanoi Outcomes
APEC forum debates CC response
The 21-nation Asia Pacific Economic Cooperation meeting will pledge to accelerate the development of new technologies and alternative energy sources.
New Zealand Prime Minister Helen Clark, said on Friday that climate change should be a top priority for the trade-focused group: "The dire economic effects of unchecked climate change should be addressed by APEC because of the organisation's primary concern for growth and development"... "Without a commitment to sustainability, we will likely get neither in future" Clark said.
Australia pushed for a six-nation alliance of the world's biggest polluters -- China, India, the United States, Australia, South Korea and Japan -- to promote new technologies to tackle climate change.
Link
The 21-nation Asia Pacific Economic Cooperation meeting will pledge to accelerate the development of new technologies and alternative energy sources.
New Zealand Prime Minister Helen Clark, said on Friday that climate change should be a top priority for the trade-focused group: "The dire economic effects of unchecked climate change should be addressed by APEC because of the organisation's primary concern for growth and development"... "Without a commitment to sustainability, we will likely get neither in future" Clark said.
Australia pushed for a six-nation alliance of the world's biggest polluters -- China, India, the United States, Australia, South Korea and Japan -- to promote new technologies to tackle climate change.
Link
Sunday, November 19, 2006
Media: BBC reports agreement at Nairobi
The UN climate talks in Nairobi have ended with agreement reached on all outstanding matters.
However, there is no deal on another round of mandatory cuts in emissions to follow the Kyoto Protocol, and no firm timetable for negotiating cuts.
Link
However, there is no deal on another round of mandatory cuts in emissions to follow the Kyoto Protocol, and no firm timetable for negotiating cuts.
Link
Media: BBC reports UK Environment Secretary comments
Commentary: UK Environment Secretary David Milliband on Nairobi COP outcomes.
UK Environment Secretary David Milliband was upbeat about the conclusions, citing decisions to allocate more resources to Africa for clean technology and for adaptation to the impacts of climate change. However, he acknowledged there was a large gap between the emissions cuts which science suggests are necessary, and the level of political commitment to making those cuts.
"I come away from this conference with two senses: one, the world community can make progress when it puts its mind to it, but two, my goodness we really need to up the momentum, we need to increase the acceleration," he told BBC News.
"And for that, you don't just need environment ministers - you need prime ministers, finance ministers, and foreign secretaries to put themselves behind this global drive."
Mr Milliband acknowledged that even alongside the welter of other international initiatives on climate, the UN process is especially important because it is the only one which can demand binding cuts in emissions.
The next round of talks will be in Bali next December.
Link
UK Environment Secretary David Milliband was upbeat about the conclusions, citing decisions to allocate more resources to Africa for clean technology and for adaptation to the impacts of climate change. However, he acknowledged there was a large gap between the emissions cuts which science suggests are necessary, and the level of political commitment to making those cuts.
"I come away from this conference with two senses: one, the world community can make progress when it puts its mind to it, but two, my goodness we really need to up the momentum, we need to increase the acceleration," he told BBC News.
"And for that, you don't just need environment ministers - you need prime ministers, finance ministers, and foreign secretaries to put themselves behind this global drive."
Mr Milliband acknowledged that even alongside the welter of other international initiatives on climate, the UN process is especially important because it is the only one which can demand binding cuts in emissions.
The next round of talks will be in Bali next December.
Link
Media: BBC critical commentary on Nairobi outcomes
Critique: all talk, no strong action.
"Clearly there is no appetite in any government for doing things the straightforward way - mandating clean energy, banning coal-fired electricity generation, clearing city centres of cars, forcing builders to adopt stringent energy efficiency standards."
Yvo de Boer, the new executive secretary of the United Nations Framework Convention on Climate Change, summed it up thus: "From looking at climate change policies as a cost factor for development, countries are starting to see them as opportunities to enhance economic growth in a sustainable way. "The further development of carbon markets can help mobilise the necessary financial resources needed for a global response to climate change, and give us a future agreement that is focused on incentives to act. Read these words in a positive way, and you visualise a mobilisation of business might to cool the Earth while making a profit - but turn the thought around, and what you have is the acknowledgment that making money, not reducing emissions, is the priority for governments and their advisers."
The headline outcomes include:
"Clearly there is no appetite in any government for doing things the straightforward way - mandating clean energy, banning coal-fired electricity generation, clearing city centres of cars, forcing builders to adopt stringent energy efficiency standards."
Yvo de Boer, the new executive secretary of the United Nations Framework Convention on Climate Change, summed it up thus: "From looking at climate change policies as a cost factor for development, countries are starting to see them as opportunities to enhance economic growth in a sustainable way. "The further development of carbon markets can help mobilise the necessary financial resources needed for a global response to climate change, and give us a future agreement that is focused on incentives to act. Read these words in a positive way, and you visualise a mobilisation of business might to cool the Earth while making a profit - but turn the thought around, and what you have is the acknowledgment that making money, not reducing emissions, is the priority for governments and their advisers."
The headline outcomes include:
- a less than firm commitment to begin negotiations on further Kyoto Protocol emissions cuts in 2008, and no target date for concluding them - despite an acknowledgement that emissions need to fall by about 50% in the near future
- a decision that the protocol has been reviewed at this meeting, as its original wording demanded - many of us must have missed the review when we blinked
- a commitment to have a full review in two years' time
- an extension of work on technology transfer to the developing world, but only for a single year, which brought condemnation from the Chinese delegation
- agreement that Belarus can enter the Kyoto Protocol's trading mechanisms in a way which could allow it to make money without reducing emissions; this decision will have to be ratified
- a decision that carbon capture and storage (CCS) projects should not yet be eligible for money from the Protocol's Clean Development Mechanism
- agreement that the Adaptation Fund, a pot of money to help developing countries adapt to the impacts of climate change, should be primarily under the control of developing nations
Away from the main negotiations, a number of other initiatives were announced, the most striking being a UN fund to build capacity among African governments, enabling them better to bid for clean technology projects and protect against climate impacts.
LinkFriday, November 17, 2006
Policy: Nairobi outcomes
Agreements reached so far at the UN FCCC COP 12 in Nairobi (6-17 Nov)
- reaffirmed goal of agreeing an extension of Kyoto "as early as possible" to ensure a smooth transition to a new set of rules starting in 2013
- help poor nations, especially in Africa, win new funds from the CDM
- agreed principles for running an Adaptation Fund financed by a levy on CDM projects that is meant to help poor nations, especially in Africa, to adapt to climate changes.
- five-year programme to look at the impact of climate change, the vulnerability of the world and ways to adapt to changes such as floods, heatwaves, or droughts. Experts will make recommendations by end-2008.
- further study of proposals to help nations slow deforestation, which accounts for about 20 per cent of emissions of greenhouse gases
Link
Thursday, November 16, 2006
Policy: UK Gov - Office of Climate Change starts work
UK Government creates Office of Climate Change
The UK Government has created a new Office of Climate Change (OCC) that will work across Government to provide a shared resource for analysis and development of climate change policy and strategy, Environment Secretary David Miliband said today.
The OCC will support Ministers as they decide future UK strategy and policy on domestic and international climate change by:
- High level management and reporting of progress on existing commitments
Consolidating existing analysis to develop a cross-government consensus on current progress and outstanding issues - Identifying short and medium term goals for particular sectors/ areas and consequent priorities for action
- Carrying out time-limited policy-focussed projects where Ministers agree that this adds value
- Promoting understanding of climate change across government and supporting departments to adapt their policies
Link
Policy: practical steps for CFOs toward sustainability
Nearly 70 per cent of chief executives of mid-sized to large companies believe that sustainability is vital to their profitability, and more than two-thirds say it will remain a high priority, according to recent global surveys by PwC of its clients.
3 practical steps for CFOs toward sustainability:
3 practical steps for CFOs toward sustainability:
- Substantiate the business case for sustainability
- Measure the results from sustainability initiatives in financial terms
- Communicate the value of sustainability to shareholders
Econ: Model to estimate value of ecosystem services
World Wildlife Fund, the Nature Conservancy and scientists from Stanford University in California and the University of British Columbia announced a new model to estimate the dollar value to people of "ecosystem services" such as mangroves and wetlands. The new model is part of a trend for scientists and economists to measure the natural world in economic terms.
Link
Link
Action: India to raise wind power stake in energy mix
India is the fourth largest user of wind power in the world, after Germany, Spain and the United States. India's President says 16 percent of its power could come from wind by 2030.
India has clinched a historic civilian nuclear energy deal with the United States which will help the power-starved nation establish energy security, and is also increasing looking at renewable sources of power.
Science: Australian drought permanent
CSIRO report predicts Australian drought will continue
A report by Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) finds that Australia's climate is now permanently hotter and drier, and the country faces major temperature rises and significantly less rainfall by 2070. It predicts that rainfall in parts of eastern Australia will drop 40 percent by 2070, with a seven degree Celsius rise in temperature. By 2030 the risk of bushfires will be higher, droughts more severe and rainfall and stream run-off lower.
Report: Link
Media: Link
A report by Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) finds that Australia's climate is now permanently hotter and drier, and the country faces major temperature rises and significantly less rainfall by 2070. It predicts that rainfall in parts of eastern Australia will drop 40 percent by 2070, with a seven degree Celsius rise in temperature. By 2030 the risk of bushfires will be higher, droughts more severe and rainfall and stream run-off lower.
Report: Link
Media: Link
Media: CC action required on Peatlands
Peatlands — rich densely packed soils made up of dead organic matter, mainly plants — are known as 'carbon sinks' for their ability to store more carbon per unit area than any other ecosystem. Although they occupy only 3-5 per cent of the earth's land and fresh water surface, they absorb 25-30 per cent of the world's carbon dioxide.
"Drainage starts a rapid process of decomposition, made worse by annual peat fires that last for months... Together these contribute large amounts of carbon dioxide to the atmosphere."
On a global level, it is essential that the Kyoto Protocol, which is limited to emissions caused by industry, housing, traffic and agriculture, includes emissions from soil and degraded vegetation.
http://www.scidev.net/content/news/eng/climate-change-action-must-include-peatlands.cfm
"Drainage starts a rapid process of decomposition, made worse by annual peat fires that last for months... Together these contribute large amounts of carbon dioxide to the atmosphere."
On a global level, it is essential that the Kyoto Protocol, which is limited to emissions caused by industry, housing, traffic and agriculture, includes emissions from soil and degraded vegetation.
http://www.scidev.net/content/news/eng/climate-change-action-must-include-peatlands.cfm
Media: drought in Australia worst in 1000 years
"What we're seeing with this drought is a frightening glimpse of the future with global warming," the leader of the South Australian state government Mike Rann told reporters.
Link
Link
Media: IEA backs nuclear for CC mitigation
The International Energy Agency urges governments to build more nuclear plants to slow climate change and increase energy security in in its annual World Energy Outlook. The IEA said more spending was needed to lift nuclear capacity by more than 40 percent to 519 gigawatts by 2030.
Media: Link
IEA report: Link
Media: Link
IEA report: Link
Media: German Chancellor to use EU presidency for CC work
Chancellor Angela Merkel said "International climate protection will be a central theme of the German EU presidency".
Link
Link
Media: Times CC action portal
Times newspaper 'Carbon Champions' page - in association with UK Carbon TrustLink
Media: UK individual CC impacts survey
A Times report finds there is a large gap between what people say they are doing to help the environment, and the reality of the changes actually being made.
Impacts: CC impact on European farmers
EC funded study on agricultural and biodiversity impacts of CC in Europe
A study by Berry P.M. et al (2006), "Assessing the vulnerability of agricultural land use and species to climate change and the role of policy in facilitating adaptation" in Environmental Science and Policy 9: 189-204, supported by the EC Directorate General of Research 5th Framework Programme, contributing to key action "Global change, climate and biodiversity" within the "Energy, Environment and Sustainable Development" programme finds:
A study by Berry P.M. et al (2006), "Assessing the vulnerability of agricultural land use and species to climate change and the role of policy in facilitating adaptation" in Environmental Science and Policy 9: 189-204, supported by the EC Directorate General of Research 5th Framework Programme, contributing to key action "Global change, climate and biodiversity" within the "Energy, Environment and Sustainable Development" programme finds:
- farmers in northern Europe are less vulnerable to future climate change as crop yields are expected to increase.
- farmers in southern Europe are expected to be more vulnerable to future climate change.
- vulnerability of species in Europe will increase in the future.
Stats: EEA report on EU-15 CC target progress
European Environment Agency report: "Greenhouse gas emission trends and projections in Europe 2006"
A recent study by the European Environment Agency has assessed the actual historic and projected progress in Europe towards achieving the emission targets set out under the Kyoto Protocol. The report highlights that progress towards the Kyoto Protocol targets is very uneven around Europe.
The EU-15 is committed to delivering the collective 8% cut in emissions by 2008-2012 to which it signed up under the Kyoto Protocol.
Regarding the effectiveness of current policies, the EU emissions trading scheme is considered to be one of the measures that will contribute the most to achieving the targets. Other key policies and measures include promotion of electricity from renewable energy, promotion of combined heat and power, improvements in energy performance of buildings and energy efficiency in large industrial installations, and promotion of the use of energy-efficient appliances. However, current trends suggest that the EU-25 renewable electricity target (21% of gross electricity consumption by 2010) is unlikely to be met.Science: sea level rise greatest CC threat for people
German Science body describes CC impacts on oceans
The German Advisory Council on Global Change (set up by the German federal government in 1992 in the run-up to the Rio Earth Summit as an independent, scientific advisory body) has released a report “The Future Oceans – Warming Up, Rising High, Turning Sour” discussing the impact of GHG emissions on the world’s oceans. This WBGU Special Report was presented at the 12th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in November 2006, at a side event named "Climate Impacts on the Ocean".
Report: Link
“To keep the adverse effects on human society and ecosystems within manageable limits, it will be essential to adopt new coastal protection approaches, designate marine protected areas and agree on ways to deal with refugees from endangered coastal areas. All such measures, however, can only succeed if global warming and ocean acidification are combated vigorously. Ambitious climate protection is therefore a key precondition to successful marine conservation and coastal protection.”
The German Advisory Council on Global Change (set up by the German federal government in 1992 in the run-up to the Rio Earth Summit as an independent, scientific advisory body) has released a report “The Future Oceans – Warming Up, Rising High, Turning Sour” discussing the impact of GHG emissions on the world’s oceans. This WBGU Special Report was presented at the 12th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in November 2006, at a side event named "Climate Impacts on the Ocean".
Report: Link
“To keep the adverse effects on human society and ecosystems within manageable limits, it will be essential to adopt new coastal protection approaches, designate marine protected areas and agree on ways to deal with refugees from endangered coastal areas. All such measures, however, can only succeed if global warming and ocean acidification are combated vigorously. Ambitious climate protection is therefore a key precondition to successful marine conservation and coastal protection.”
Media: UK to introduce long term binding CC target
The UK Government has stated it will legislate to require a 60% reduction in GHG emissions by 2050.
The Queen’s Speech, which is a statement read by the Queen on behalf of the Government that sets out its legislative agenda for the Parliamentary year ahead, included a proposal for legislation introducing a long term target addressing Climate Change: “My government will publish a bill on climate change as part of its policy to protect the environment, consistent with the need to secure long-term energy supplies.”
The details are expected to be published in an Energy White Paper in March 2007 setting out the Government’s policy proposal in full. However, the BBC reports (Link) that the climate change bill will introduce a binding target of a 60% reduction in carbon dioxide emissions by 2050; establish an independent "Carbon Committee" to work with ministers to deliver reductions "over time and across the economy"; create new powers to reach the 2050 target; and improve the way CO2 reductions are monitored and reported, including to Parliament.
Wednesday, November 15, 2006
Policy: UK Gov - Environmental Risk Assessment
UK Government Guidelines for Environmental Risk Assessment and Management
Link
Link
Science: IPCC TAR
Key: Equator Principles
The Equator Principles - investor project assessment criteria
A financial industry benchmark for determining, assessing and managing social & environmental risk inproject financing
Link
Summary:
Principle 1: Review and Categorisation
A financial industry benchmark for determining, assessing and managing social & environmental risk inproject financing
Link
Summary:
Principle 1: Review and Categorisation
- social and environmental review and due diligence
- categorisation of project based on magnitude of potential impacts and risks
Principle 2: Social and Environmental Assessment
- Assessment to address relevant social and environmental impacts and risks of the proposed project, including mitigation and management measures.
- a) assessment of the baseline social and environmental conditions
- b) consideration of feasible environmentally and socially preferable alternatives
- c) requirements under host country laws and regulations, applicable international treaties and agreements
- d) protection of human rights and community health, safety and security (including risks, impacts and management of project’s use of security personnel)
- e) protection of cultural property and heritage
- f) protection and conservation of biodiversity, including endangered species and sensitive ecosystems in modified, natural and critical habitats, and identification of legally protected areas
- g) sustainable management and use of renewable natural resources (including sustainable resource management through appropriate independent certification systems)
- h) use and management of dangerous substances
- i) major hazards assessment and management
- j) labour issues (including the four core labour standards), and occupational health and safety
- k) fire prevention and life safety
- l) socio-economic impacts
- m) land acquisition and involuntary resettlement
- n) impacts on affected communities, and disadvantaged or vulnerable groups
- o) impacts on indigenous peoples, and their unique cultural systems and values
- p) cumulative impacts of existing projects, the proposed project, and anticipated future projects
- q) consultation and participation of affected parties in the design, review and implementation of the project
- r) efficient production, delivery and use of energy
- s) pollution prevention and waste minimisation, pollution controls (liquid effluents and air emissions) and solid and chemical waste management
Principle 3: Applicable Social and Environmental Standards
- International Finance Corporation (IFC) Performance Standards;
- 1: Social & Environmental Assessment & Management System
- 2: Labor and Working Conditions
- 3: Pollution Prevention and Abatement
- 4: Community Health, Safety and Security
- 5: Land Acquisition and Involuntary Resettlement
- 6: Biodiversity Conservation and Sustainable Natural Resource Management
- 7: Indigenous Peoples
- 8: Cultural Heritage
2. EHS Guidelines
- REF Exhibit IV: Industry-Specific Environmental, Health and Safety (EHS) Guidelines (Link)
Principle 4: Action Plan and Management System
- Action Plan
Prepare an Action Plan addressing the Assessment (Principle 2), describing and prioritising actions needed to implement mitigation measures, corrective actions and monitoring measures necessary to manage the impacts and risks identified in the Assessment. - EMS
Implement a Social and Environmental Management System that addresses the management of these impacts, risks, and corrective actions required to comply with applicable host country social and environmental laws and regulations, and requirements of the applicable Performance Standards and EHS Guidelines.
Principle 5: Consultation and Disclosure
- Consultation
Ensure that free, prior and informed consultation and informed participation with affected communities has been conduced in a structured and culturally appropriate manner to adequately incorporate affected communities’ concerns. - Disclosure
Assessment (Principle 2) documents and Action Plan (Principle 4) to be made available to the public for a reasonable minimum period in the relevant local language and in a culturally appropriate manner. Document the process and results of the consultation, including any actions agreed resulting from the consultation.
Principle 6: Grievance Mechanism
- Establish a grievance mechanism
Establish a grievance mechanism as part of the management system to ensure that consultation, disclosure and community engagement continues throughout construction and operation of the project and to receive and facilitate resolution of concerns and grievances about the project’s social and environmental performance raised by individuals or groups from among project-affected communities. - Publicise grievance mechanism
The borrower will inform the affected communities about the mechanism in the course of its community engagement process and ensure that the mechanism addresses concerns promptly and transparently, in a culturally appropriate manner, and is readily accessible to all segments of the affected communities.
Principle 7: Independent Review
- Third Party Review
Review of the Assessment, AP and consultation process documentation by independent social or environmental expert not directly associated with the project to ensure consistency with Equator Principles.
Principle 8: Covenants
- Finance conditional upon compliance with covenants.
Agree to Covenants in financing documentation:
- a) to comply with all relevant host country social and environmental laws, regulations and permits in all material respects;
- b) to comply with the AP during the construction and operation of the project in all material respects;
- c) to provide periodic reports in a format agreed with EPFIs (with the frequency of these reports proportionate to the severity of impacts, or as required by law, but not less than annually), prepared by in-house staff or third party experts, that
i) document compliance with the AP (where applicable), and
ii) provide representation of compliance with relevant local, state and host country social and environmental laws, regulations and permits; and - d) to decommission the facilities in accordance with an agreed decommissioning plan.
Principle 9: Independent Monitoring and Reporting
- Appoint an independent expert to verify monitoring information to ensure ongoing monitoring and reporting over the life of the loan.
Principle 10: EPFI Reporting
- Report publicly (annually) about Equator Principles implementation processes and experience
Policy: WBCSD CC Policy Paper
WBCSD Energy & Climate team paper on CC policy responses
This paper was presented at the UN FCCC COP12 in Nairobi.
The paper makes the following recommendations for international public policy frameworks on climate change after 2012, when the Kyoto Protocol expires:
This paper was presented at the UN FCCC COP12 in Nairobi.
The paper makes the following recommendations for international public policy frameworks on climate change after 2012, when the Kyoto Protocol expires:
- Establishing by 2010 a quantifiable, long-term (50-year) goal for the management of global greenhouse gas (GHG) emissions.
- Encouraging the development and deployment of leading-edge technologies through partnerships and incentives and an approach to mitigate long-term market risk and deliver secure benefits for large-scale, low-carbon, new technology projects.
- Including ideas and lessons learned from current approaches and in particular building on existing GHG reduction markets.
- Modifying the existing international framework so that it builds progressively (bottom up) from local, national, sector or regional programs that contribute to the quantifiable long-term international goal and catalyzing the implementation of such programs.
- The progressive inclusion of all countries - both developing and developed.
Stats: GHG Emissions - Developing countries
IPCC Report on NON Annex 1 Countries GHG Emissions from 1990 to 2004
Tuesday, November 14, 2006
Key: Millennium Development Goals
UN Millennium Development Goals
7. Ensure Environmental Sustainability:- Integrate the principles of sustainable development into country policies and programmes; reverse loss of environmental resources
- Reduce by half the proportion of people without sustainable access to safe drinking water
- Achieve significant improvement in lives of at least 100 million slum dwellers, by 2020
Econ: Stern Review
Stern Review on the Economics of Climate Change
Or in CC jargon: mitigation is preferable to adaptation.
A summary of the impacts considered by the Stern Review for different CC induced temperature increases:
- Stabilisation at safe levels will cost 1% of GDP p.a. if we act now;
- Failure to act will cost 5%-20% of GDP p.a. in perpetuity.
Or in CC jargon: mitigation is preferable to adaptation.
A summary of the impacts considered by the Stern Review for different CC induced temperature increases:
The Review found that if we do nothing about climate change (‘business as usual’), the damage bill will be between 5% and 20% of global GDP p.a.
In contrast, taking action to fix the problem costs much less than doing nothing. Action taken to reduce greenhouse gas emissions to safe levels will only cost 1% of GDP p.a.
Stats: GHG Emissions - Annex 1 Countries (1990-2004)
UNFCCC National greenhouse gas inventory data for the period 1990–2004.
The UNFCCC reporting guidelines on annual inventories require that Annex I Parties annually submit a national inventory report (NIR) and common reporting format (CRF) data tables covering data from the base year up to two years before the year of submission,4 i.e., from 1990 up to 2004 in the 2006 submission. Figure 4, below, summarizes the 2006 submissions. It shows the inventories of all 41 Annex I Parties.
The UNFCCC reporting guidelines on annual inventories require that Annex I Parties annually submit a national inventory report (NIR) and common reporting format (CRF) data tables covering data from the base year up to two years before the year of submission,4 i.e., from 1990 up to 2004 in the 2006 submission. Figure 4, below, summarizes the 2006 submissions. It shows the inventories of all 41 Annex I Parties.
.gif)
Media: BBC survey
BBC study of individual GHG emission reduction opportunities
400 British companies took part in the BBC "100 Days of Carbon Clean-up challenge". Companies looked at ways to reduce their greenhouse gas emissions. One of the small businesses involved, Fulcrum Consulting, kept a diary of its progress for the BBC News website: Link
Fulcrum's staff average emissions source profile:
400 British companies took part in the BBC "100 Days of Carbon Clean-up challenge". Companies looked at ways to reduce their greenhouse gas emissions. One of the small businesses involved, Fulcrum Consulting, kept a diary of its progress for the BBC News website: Link
Fulcrum's staff average emissions source profile:
Stats: GHG Emissions - GHGs by type - contribution to CC
The contribution of different greenhouse gases to the additional man made greenhouse effect: Data from IPCC TAR (2001), diagram by Elmar Uherek.
Media: Spain mandates solar
Solar panels are now compulsory on all new and renovated buildings in Spain.
November 14, 2006, Reuters Daily World Environment News service extract.
http://www.planetark.com/dailynewsstory.cfm/newsid/38965/story.htm
November 14, 2006, Reuters Daily World Environment News service extract.
http://www.planetark.com/dailynewsstory.cfm/newsid/38965/story.htm
Subscribe to:
Posts (Atom)