Post-2012 climate policy dilemmas: a review of proposals

This article assesses a wide range of alternative proposals for post-2012 international climate policy regimes. We believe that these proposals will serve as a basis for debates about how to configure post-2012 climate policy. The article characterizes and assesses the policy proposals along the lines of five key policy dilemmas. We argue that (1) many proposals have ideas on how to reduce emissions, but fewer have a solution on how to stimulate technical innovation; (2) many proposals formulate climate policy in isolation, while there are fewer proposals that try to mainstream climate policies in other policy areas; (3) many proposals advocate market-based solutions, while fewer realize that there are certain drawbacks to this solution especially at the international level; (4) most proposals have a preference for a UN-based regime, while a more fragmented regime, based on regional and sectoral arrangements may be emerging; and (5) most proposals have ideas about mitigation, but not many have creative ideas on how to integrate mitigation with adaptation.     

Greenhouse gas emissions caused by the international climate negotiations

Abstract

One and a half decades of climate negotiations have directly caused greenhouse gas emissions of about 150,000 t CO₂. At prevailing market prices, making the full negotiation process greenhouse-gas-neutral ex post would cost about US$0.5 million, which is a fraction of the cost of the conferences.     

Who picks up the remainder? Mitigation in developed and developing countries

A fair, effective, flexible and inclusive climate regime beyond 2012 will need several political balances. Mitigation and funding will be at the heart of the agreement. The IPCC's Fourth Assessment Report indicates that absolute reductions will be needed in Annex I (AI) countries and substantial deviation from baseline in some non-Annex I (NAI) regions by 2020. Although the latter was not explicitly quantified by the IPCC, the EU subsequently proposed a range for developing countries. Sharing the burden for mitigation is essentially zero-sum: if one does less, the other has to do more. We critically examine the implicit assumption that NAI countries would pick up the remainder of the required global effort minus the AI contribution. We suggest that greater levels of ambition can be achieved by turning the formula around politically, starting from the achievable ‘deviation below baseline’ given NAI's national programmes and appropriate international support. AI countries may have to exceed the IPCC ranges or pay for the remainder. For notional levels of NAI mitigation action, Annex I has to reduce by between ?52% and ?69% below 1990 by 2020, only dropping to a domestic ?35% with commitments to offset payments through the carbon market. Given the large mitigation gap, a political agreement on the question of ‘who pays’ is fundamental. The carbon market will provide some investment, but it mainly serves to reduce costs, particularly in developed countries, rather than adding to the overall effort. Market-linked levies and Annex I public funding will therefore be crucial to bridge the gap.     

Breaking the impasse: towards a new regime for international climate governance

The reality of the current international order makes it imperative that a just and effective climate regime should balance the historical responsibility of developed countries with the increasing absolute emissions from many developing nations. The key pillars are briefly proposed for a new international climate architecture that envisions replacing the current annex system with two new annexes: Annex α, for countries with high current emissions and historically high emissions, and Annex β, for countries with high current emissions and historically low emissions. Countries in both annexes would implement legally binding targets under this framework. Additionally, this proposal includes alterations and revisions to funding and technology transfer mechanisms to correct for weaknesses and inequities under the current Kyoto architecture. The proposed framework stems from a belief that a top-down, international approach to climate policy remains the most effective for ensuring environmental integrity. Given the slow rate of institutional learning, the reform and improvement of the current system is held as a more efficient course of action than abandoning the progress already achieved. It is argued that the proposed framework could effectively accommodate key equity, environmental integrity, and political feasibility concerns.     

Measurable,reportable and verifiable: the keys to mitigation in the Copenhagen deal

The climate negotiations up to Copenhagen will need to elaborate on measurable, reportable and verifiable (MRV) mitigation commitments and actions as part of the future of the climate regime. The conceptual, political, scientific, financial and institutional principles for MRV are explored for (1) mitigation commitments in developed countries, (2) mitigation actions in developing countries, supported by (3) means of implementation. For developed countries, the procedures in Articles 5, 7, 8 and 18 of the Kyoto Protocol will be critical in order to ensure comparability of commitments, both in effort and compliance. Outcomes should be reportable and verifiable through Annex I national communications and in-depth review. Existing procedures could be enhanced and need to apply across Protocol and Convention. MRV mitigation actions by developing countries should result in measurable deviations below baseline. Inventories will be important to measure, and enhanced national communications for reporting. The challenge will be to make mitigation actions verifiable, and options include verification by domestic institutions working to internationally agreed guidelines. A critical distinction is to be made between unilateral mitigation actions and those with international support. MRV applies to the provision of the means of implementation, including technology and finance. Investment in technology can be measured, so that institutional arrangements for technology and finance should be aligned. Verification of funds raised at international level would be simpler than raising funds nationally.     

Building bridges to 2020 and beyond: the road from Bali

What would the shape of a realistic, yet ambitious, package for the climate regime after 2012 look like? How do we obtain a package deal starting in Bali but building bridges to a post-2020 climate regime? A fair, effective, flexible and inclusive package deal has to strike a core balance between development and climate imperatives (mitigation, adaptation, dealing with the impacts of response measures, technology transfer, investment and finance) to create bargaining space and establish a conceptual contract zone. Within a continuum of possible packages, two packages in the contract zone are identified: ‘multi-stage’ and ‘ambitious transitional’. The latter is ambitious, combining domestic cap-and-trade for the USA, deeper cuts for Annex B countries, and quantifiable mitigation actions by developing countries. It is transitional as a possible bridge to a more inclusive regime beyond 2020. Multi-stage is defined around mechanisms by which countries move through increasingly stringent levels of participation, and must be based upon agreed triggers. Our assessment of political dynamics is that multi-stage is not yet in the political contract zone. Key to this is the absence of a ‘trigger from the North’, in that the largest historical emitter must act earlier and most decisively. But progress will also depend on continued leadership from Annex B countries, as well as more proactive, incentivized leadership in the South. Agreeing on the transitional stage is the critical next step in the evolution of the climate regime. Negotiating any package will require an institutional space for bargaining, political leadership and trust, and a clear time-frame.     

Shaping climate policy in the housing sector in northern Chinese cities

What are relevant urban development investment strategies for improving building energy efficiency (BEE) and decarbonizing the urban district heating supply in rapidly urbanizing China? Different trajectories of BEE and energy supply technologies are compared in the urban context in a northern Chinese city. Vigorous improvement of BEE will significantly enhance the prospective financial capacity to facilitate deployment of backstop technologies (e.g. carbon capture and storage) in order to decarbonize the energy supply and achieve the long-term targets of low-carbon buildings. Carbon finance instruments should be used to facilitate public policy to accompany the necessary transition in the urban development process. The government-run efficiency procurement scheme will overcome the problem of insufficient incentive and high transaction costs associated with individual Clean Development Mechanism projects. Appropriate investment strategies (allocation of financial resources over the time frame) will allow local governments to harness the large potentials of carbon emissions mitigation while minimizing the risk of long-term technical lock-in in the built environment in Chinese cities.     

Role of renewable energy in climate mitigation: a synthesis of recent scenarios

The role of renewable energy in climate change mitigation is explored through a review of 162 recent medium- to long-term scenarios from 15 large-scale, energy-economic and integrated assessment models. The current state of knowledge from this community is assessed and its implications drawn for the strategic context in which policymakers and other decision-makers might consider renewable energy. The scenario set is distinguished from previous ones in that it contains more detailed information on renewable deployment levels. All the scenarios in this study were published during or after 2006. Within the context of a large-scale assessment, the analysis is guided primarily by four questions. What sorts of future levels of renewable energy deployment are consistent with different CO₂ concentration goals? Which classes of renewable energy will be the most prominent energy producers and how quickly might they expand production? Where might an expansion in renewable energy occur? What is the linkage between the costs of mitigation and an expansion of renewable energy?     

Sector-based approach to the post-2012 climate change policy architecture

A sectoral approach to GHG emissions reductions in developing countries is proposed as a key component of the post-2012 climate change mitigation framework. In this approach, the ten highest-emitting developing countries in the electricity and other major industrial sectors pledge to meet voluntary, ‘no-lose’ GHG emissions targets in these sectors. No penalties are incurred for failing to meet a target, but emissions reductions achieved beyond the target level earn emissions reduction credits (ERCs) that can be sold to industrialized nations. Participating developing countries establish initial ‘no-lose’ emissions targets, based upon their national circumstances, from sector-specific energyintensity benchmarks that have been developed by independent experts. Industrialized nations then offer incentives for the developing countries to adopt more stringent emissions targets through a ‘Technology Finance and Assistance Package’, which helps to overcome financial and other barriers to technology transfer and deployment. These sectorspecific energy-intensity benchmarks could also serve as a means for establishing national economy-wide targets in developed countries in the post-2012 regime. Preliminary modelling of a hybrid scenario, in which Annex I countries adopt economy-wide absolute GHG emissions targets and high-emitting developing countries adopt ‘no-lose’ sectoral targets, indicates that such an approach significantly improves the likelihood that atmospheric concentrations of CO₂ can be stabilized at 450 ppmv by the end of the century.     

The global impacts of US climate policy: a model simulation using GCAM-TU and MAGICC

To assess the potential impacts of the US withdrawal from the Paris Agreement, this study applied GCAM-TU (an updated version of the Global Change Assessment Model) to simulate global and regional emission pathways of energy-related CO₂, which show that US emissions in 2100 would reduce to ?2.4?Gt, ?0.7?Gt and ?0.2?Gt under scenarios of RCP2.6, RCP3.7 and RCP4.5, respectively. Two unfavourable policy scenarios were designed, assuming a temporary delay and a complete stop for US mitigation actions after 2015. Simulations by the Model for the Assessment of Greenhouse-gas Induced Climate Change (MAGICC) indicate that the temperature increase by 2100 would rise by 0.081°C–0.161°C compared to the three original RCPs (Representative Concentration Pathways) if US emissions were kept at their 2015 levels until 2100. The probability of staying below 2°C would decrease by 6–9% even if the US resumes mitigation efforts for achieving its Nationally Determined Contribution (NDC) target after 2025. It is estimated by GCAM-TU that, without US participation, increased reduction efforts are required for the rest of the world, including developing countries, in order to achieve the 2°C goal, resulting in 18% higher global cumulative mitigation costs from 2015 to 2100.

Key policy insights

• President Trump’s climate policies, including planned withdrawal from the Paris Agreement, cast a shadow on international climate actions, and would lower the likelihood of achieving the 2°C target.

• To meet the 2°C target without the US means increased reduction efforts and mitigation costs for the rest of the world, and considerable economic burdens for major developing areas.

• Active state-, city- and enterprise-level powers should be supported to keep the emission reduction gap from further widening even with reduced mitigation efforts from the US federal government.

     

Sectoral approaches for a post-2012 climate regime: a taxonomy

Sectoral approaches have been gaining currency in the international climate debate as a possible remedy to the shortfalls of the Kyoto Protocol. Proponents argue that a sector-based architecture can more easily invite the participation of developing countries, address competitiveness issues, and enable immediate emissions reductions. However, given the numerous proposals, much confusion remains as to what sectoral approaches actually are. This article provides a simple, yet comprehensive, taxonomy of the various proposals for sectoral approaches. Based on the dual criteria of content and actors, three such types are identified and described: government targets and timetables; industry targets and timetables; and transnational technology cooperation. For each of these types, existing proposals and ongoing initiatives are discussed. In a second step, the article analyses the political landscape in which sectoral approaches are being debated, identifying the interests of their key advocates as well as the concerns of their critics. The Japanese government and energy-intensive manufacturing industries represent the main proponents of sectoral approaches to address the problems of carbon leakage and economic competitiveness. Developing countries, on the other hand, are wary of attempts to impose emissions reduction targets on their economies through sectoral target-setting. They, therefore, interpret sectoral approaches as sector-based forms of technology cooperation and technology transfer.     

黑龙江省1981-2010年气候平均值的变化及对气候评价的影响

利用黑龙江省气候评价业务使用的71个气象台站的气温、降水和日照时数资料,对1981-2010年气候平均值和1971-2000年气候平均值进行比较。结果表明:黑龙江省大部地区年平均气温升高,冬季偏暖突出;年降水量大部地区增多,春季、夏季、冬季降水量增多,秋季减少,7月降水量增幅最大;年日照时数大部地区减少。     

Managing the transition to climate stabilization

It is becoming increasingly clear that economically efficient climate policies are unlikely to be implemented in the near term. Therefore an analysis is warranted that considers the implications of certain suboptimal transition policies. This analysis constructs a transition scenario based on realistic assumptions about the current trends in policy-making. The transition is examined in the context of varying assumptions about the stringency of the target and the availability of low- or no-carbon energy technologies in the future. In addition to evaluating the effects of suboptimal policies, the transitional analysis offers new insights about the intrinsic uncertainty regarding both the appropriate stabilization target and technology.     

Low-carbon societies: a challenging transition for an attractive future

The Low-Carbon Society (LCS) research project (Strachan et al., 2008a) is examined for its insights about the scale, nature and timing of the deployment of low-carbon technologies. In addition to ‘carbon price only’ policies, other incentives and demand-side efforts are needed in order to embed climate policies into broader development approaches. The question of what constitutes transition pathways is considered. Fundamental institutional, individual and social changes are needed to accompany economic and technological change as energy is embedded in overall development patterns. The cost assessment of decarbonization policies may be too optimistic if it is only considered as the final outcome of a LCS, and if the inevitable hindrances and setbacks along the transition pathway are disregarded. The significance of transition costs is highlighted, together with their causes: social and short- and medium-term economic costs and adjustments in macroeconomic dynamics. Although the overall welfare costs of LCS are likely to be smaller than the benefits (including the co-benefits), a clear and realistic understanding of potential transition difficulties is necessary in order to define the robust policy mix needed to underpin it.     

Creating incentives for avoiding further deforestation: the nested approach

Since 2005, Parties to the UNFCCC have been negotiating policy options for incentivizing reductions of (greenhouse gas) emissions from deforestation and degradation (REDD) in a future climate regime. Proposals on how to operationalize REDD range from market-based to pure fund-based approaches. Most of the current proposals suggest accounting for REDD at the national level. Accounting for emission reductions and implementing policy reform for curbing deforestation will take time and imply high levels of technical and institutional capacity. Therefore it is essential that developing countries receive sufficient support to implement national REDD programmes. To save time and ensure prompt action in reducing deforestation, a REDD approach is proposed that integrates project-level and subnational REDD schemes into national-level accounting. This ‘nested approach’ can achieve meaningful reductions in GHG emissions from improved forest governance and management, while allowing for an immediate and broad participation by developing countries, civil society and the private sector.     

Global impact of a climate treaty if the Human Development Index replaces GDP as a welfare proxy

This study explores the implications of shifting the narrative of climate policy evaluation from one of costs/benefits or economic growth to a message of improving social welfare. Focusing on the costs of mitigation and the associated impacts on gross domestic product (GDP) may translate into a widespread concern that a climate agreement will be very costly. This article considers the well-known Human Development Index (HDI) as an alternative criterion for judging the welfare effects of climate policy. We estimate what the maximum possible annual average increase in HDI welfare per tons of CO₂ would be within the carbon budget associated with limiting warming to 2°C over the period 2015–2050. Emission pathways are determined by a policy that allows the HDI of poor countries and their emissions to increase under a business-as-usual development path, while countries with a high HDI value (>0.8) have to restrain their emissions to ensure that the global temperature rise does not exceed 2°C. For comparison, the well-known multi-regional RICE model is used to assess GDP growth under the same climate change policy goals.

Policy relevance

This is the first study that shifts the narrative of climate policy evaluation from one of GDP growth to a message of improving social welfare, as captured by the HDI. This could make it easier for political leaders and climate negotiators to publicly commit themselves to ambitious carbon emission reduction goals, such as limiting global warming to 2°C, as in the (non-binding) agreement made at COP 21 in Paris in 2015. We find that if impacts are framed in terms of growth in HDI per t CO₂ emission per capita instead of in GDP, the HDI of poor countries and their emissions are allowed to increase under a business-as-usual development path, whereas countries with a high HDI (>0.8) must control emissions so that global temperature rise remains within 2°C. Importantly, a climate agreement is more attractive for rich countries under the HDI than the GDP frame. This is good news, as these countries have to make the major contribution to emissions reductions.     

An introduction to the South China Sea throughflow: Its dynamics, variability, and application for climate

The South China Sea throughflow (SCSTF) involves the inflow through the Luzon strait and the outflow through the Karimata, Mindoro, and Taiwan straits. Recent studies have suggested that the SCSTF act as a heat and freshwater conveyor, playing a potentially important role in regulating the sea surface temperature pattern in the South China Sea and its adjoining tropical Indian and Pacific Oceans. In this introductory paper, we attempt to convey the progress that has recently been made in understanding the SCSTF. We first provide an overview of existing observations, theories, and simulations of the SCSTF. Then, we discuss its interaction with the Pacific western boundary current and Indonesian throughflow. Finally, we summarize issues and questions that remain to be addressed, with special reference to the SCSTF's dynamics, variability, and implication for climate.