Climate targets and comprehensive greenhouse gas emissions trading

In June 1992 a Framework on Climate Change Convention was signed in Rio de Janeiro, calling for the control of greenhouse gases, notably in the industrialized countries. Its formulation allows for joint implementation of measures to reach emission targets for greenhouse gases. Such joint implementation covering all greenhouse gases could form the first step towards a system of comprehensive emissions trading. This paper addresses both advantages and disadvantages of comprehensive emissions trading across different gases, sinks and sources. It concludes that in addition to carbon dioxide from fossil fuels, the inclusion of biotic carbon emissions and selected sources of methane is attractive from both the economic and environmental viewpoint. The uncertainties associated with emissions can be overcome by requiring a thorough review of trade proposals by a broad-based international supervisory body, utilizing a consistent methodology such as that being developed by the Intergovernmental Panel on Climate Change (IPCC). Finally, the paper addresses the central objective of the Climate Convention, which implicity sets a limit to greenhouse gases emissions and thus provides a guideline for the total amount of permits that may be made available in a tradeable permit system.     

An Approach for Estimating Soil Carbon Using the National Nutrient Loss Database

Agricultural lands have the potential to contribute to greenhouse gas mitigation by sequestering organic carbon within the soil. Credible and consistent estimates will be necessary to design programs and policies to encourage management practices that increase carbon sequestration. Because a nationwide survey of soil carbon by the wide range of natural resources and management conditions of the United States is prohibitively expensive, a simulation modeling approach must be used. The National Nutrient Loss Database (NNLD) is a modeling and database system designed and built jointly by the USDA– Natural Resources Conservation Service (NRCS) and Texas A&M University to provide science-based inferences on environmental impacts from changes in agricultural management practices and programs at the regional and national level. Currently, the NNLD simulates 16 crops and covers 1.35 × 10⁸ ha. For estimating soil carbon sequestration, the database will be populated with 1.5 × 10⁶ field-level model runs using the EPIC (Environmental Policy Impact Calculator) model, which includes newly incorporated carbon equations consistent with those in the Century model. Each run will represent a unique situation defined by state, crop, climate, soil, irrigation type, conservation practice, tillage system, and nutrient management treatment (nutrient rate, application frequency, application timing, and manure category). Results are to be assigned to specific National Resource Inventory points (NRI) to simulate regional and national baselines. In this article we present the modeling approach and discuss the strengths and limitations. Published online     

The progress of English and Welsh local authorities in addressing climate change

This paper describes the progress that local authorities in England and Wales are making in adapting to the threat of climate change and taking action to reduce greenhouse gas emissions. The responses from surveys of local authorities in England and Wales carried out in 2000 (IDeA, Reducing Greenhouse Gas Emissions: survey of activities and initiatives by local authorities. (Questionnaire and results) Improvement and Development Agency, 2000) and 2002 (Allman et al., Climate Change: a survey of local authorities, Local Government Association, 2002) were compared. Progress in implementing the International Council for Local Environmental Initiatives (ICLEI) five-step methodology (ICLEI, Local Government Implementation of Climate Protection—report to the United Nations, International Council for Local Environmental Initiatives, 1997) was used to identify the 'successful' local authorities. The barriers faced by these authorities were then compared with those faced by the remaining local authorities.

Most local authorities are not making substantial progress. However, a small number have successfully prepared greenhouse gas emissions inventories, developed strategies and implemented adaptation and greenhouse gas reduction measures. These successful authorities have made progress despite the fact that addressing climate change is not a legal requirement.

Their success is due to three key factors. Firstly, they have recognised the secondary benefits of tackling climate change, e.g. potential employment, improved quality of life and reduction in fuel poverty. Secondly, they have the strong political, professional and technical support necessary to champion climate change activities. Finally, they have worked in partnership with utilities, private, public and voluntary groups to raise the finance needed to implement measures both to adapt to climate change and to reduce greenhouse gas emissions.     

The gloomy greenhouse: Should the world phase out fossil fuels?

In 1988 the Toronto World Conference on the Changing Atmosphere called for a reduction of CO₂ emissions of the industrialized countries by approximately 20% by the year 2005 as compared with 1988. A stabilization of CO₂ concentrations would require an eventual emissions reduction of more than 50% of present levels. Model runs were performed with the Dutch Integrated Model for the Assessment of the Greenhouse Effect (IMAGE) to put these figures into perspective. It was found that the suggested emissions reduction levels could indeed be adequate to prevent global temperature change from moving beyond past climate experience. However, this would only be the case when these reduced levels of emissions were achieved at a global scale and maximum emission control for the other greenhouse gases was implemented. A delayed response analysis shows that the policies of the coming decades are crucial for the eventual control of the greenhouse effect.     

Forest Protection and Reforestation in Costa Rica: Evaluation of a Clean Development Mechanism Prototype

/ Costa Rica has recently established a program that provides funds for reforestation and forest protection on private lands, partly through the sale of carbon certificates to industrialized countries. Countries purchasing these carbon offsets hope one day to receive credit against their own commitments to limit emissions of greenhouse gases. Costa Rica has used the proceeds of the sale of carbon offsets to Norway to help finance this forest incentive program, called the Private Forestry Project, which pays thousands of participants to reforest or protect forest on their lands. The Private Forestry Project is accompanied by a monitoring program conducted by Costa Rican forest engineers that seeks to determine net carbon storage accomplished on these lands each year. The Private Forestry Project, which is officially registered as an Activity Implemented Jointly, is a possible model for bundled projects funded by the Clean Development Mechanism (CDM) established by the 1997 Kyoto Protocol to the UN Framework Convention on Climate Change. It also serves as an interesting example for the CDM because it was designed by a developing country host-not by an industrialized country investor. Accordingly, it reflects the particular "sustainable development" objectives of the host country or at least the host planners. Early experience in implementing the Private Forestry Project is evaluated in light of the main objectives of the CDM and its precursor-Activities Implemented Jointly. It is concluded that the project appears to meet the criteria of global cost-effectiveness and financing from non-ODA sources. The sustainable development implications of the project are specific to the region and would not necessarily match the ideals of all investing and developing countries. The project may be seen to achieve additional greenhouse gas abatement when compared against some (although not all) baselines.     

Market System to Curtail Emission Magnitudes Evolved from Electricity Generation

The recent resolution of the seventh Conference of the Parties to the Climate Convention (COP7) indicates that if a country is required to comply with the pollution limit, part of the required reduction in levels of emission will have to be achieved domestically. With this status quo, policy practitioners may opt to design emission level standards along with the provision of allowing access to the international permit market that may facilitate carbon offset crediting to the country. In policy formulation cognate to electricity generation through coal combustion, it is suggested that end-users will pay emission compliance costs in terms of the price of electricity usage and the companies will offer a rebate on reduction to those who curtail the level of usage of electricity. Under the scheme proposed, the generating company(s) will face the consequences if it fails to comply to domestic emission standards. In practice, the proposed method can ensure Pareto efficiency and exhibit Pareto improvement in two-party cases where both parties have joint interest in profit maximization, but they may have dichotomy in their activities. In dealing with domestic greenhouse gas issues, the proposal becomes appealing to parties for reducing the level of emissions. Moreover, it may produce a greater degree of abatement of CO₂ emissions over the levels of abatement resulting from policies of consumer or producer liability assignments.     

Waste Management and Climate Change

Waste management has at least five types of impacts on climate change, attributable to: (1) landfill methane emissions; (2) reduction in industrial energy use and emissions due to recycling and waste reduction; (3) energy recovery from waste; (4) carbon sequestration in forests due to decreased demand for virgin paper; and (5) energy used in long-distance transport of waste: A recent USEPA study provides estimates of overall per-tonne greenhouse gas reductions due to recycling. Plausible calculations using these estimates suggest that countries such as the US or Australia could realise substantial greenhouse gas reductions through increased recycling, particularly of paper.     

The unusual suspects? Perception of underlying causes of anthropogenic climate change in coastal communities in Cambodia and Tanzania

Public perception of the underlying causes of anthropogenic climate change is a complex and subjective issue that is critical to effective risk communication. This issue is important to scientists and policymakers because of the role of individual perceptions in influencing their protective behaviour towards risk (e.g., the adoption of climate risk reduction and mitigation strategies). This cross-sectional study elucidated people's perceptions of the underlying causes of human-induced climate change in coastal communities in Cambodia and Tanzania. The multinomial logistic regression model was based on a geographically and demographically stratified national sample of 3,706 individuals conducted between March and September 2013. The distribution of the fundamental causes of anthropogenic climate change in the pooled sample was deforestation (29%), overpopulation – births and immigration (18%), greenhouse gas emissions (12%), illegal resource extraction (14%), and God's will and transgressing cultural norms (26%). Few people in both countries believed that, the usual suspect, greenhouse gas emission was the fundamental cause of anthropogenic climate change. The number of poor rural residents who indicated that deforestation was the major underlying cause of climate change was approximately three times more than members of the same sub-group who noted that greenhouse gas emissions were the underlying cause of climate change. People who had tertiary education were less likely to consider God's will and transgressing cultural norms as the underlying cause of anthropogenic climate change rather than attributing it to greenhouse gas emissions. Therefore, it is imperative to mainstream climate change into educational curricula in both countries.     

Waste Management and Climate Change

Waste management has at least five types of impacts on climate change, attributable to: (1) landfill methane emissions; (2) reduction in industrial energy use and emissions due to recycling and waste reduction; (3) energy recovery from waste; (4) carbon sequestration in forests due to decreased demand for virgin paper; and (5) energy used in long-distance transport of waste: A recent USEPA study provides estimates of overall per-tonne greenhouse gas reductions due to recycling. Plausible calculations using these estimates suggest that countries such as the US or Australia could realise substantial greenhouse gas reductions through increased recycling, particularly of paper.     

Greenhouse gas emission reductions in the post-Kyoto period: Emission intensity changes required under the 'contraction and convergence' approach

Various approaches have been proposed for allocating commitments to countries regarding the mitigation of greenhouse gas emissions. One of these methods is the ‘contraction and convergence’ approach, which defines emission permits on the basis of converging per capita emissions under a contracting global emission profile. The approach is unique in its simplicity. Only two major issues need to be negotiated and agreed upon: the target atmospheric concentration of CO₂ and the date when the entitlements are to converge at equal per capita allocations. According to the contraction and convergence approach, developing countries can continue their current emission trends, whereas industrialized countries should reduce their emissions quite dramatically. This regime represents a shift away from the current approach towards defining commitments for all parties and their evolution over the long term. This article analyses how allocation schemes determined by the contraction and convergence approach might affect certain OECD and non‐OECD countries. Results for eleven countries selected for analysis (United States, United Kingdom, Germany, France, Japan, China, Venezuela, Thailand, Brazil, India and Indonesia) reveal that trends observed in the past few decades in most industrialized countries will lead to the contraction and convergence target.     

Adaptation to Climate Change in Developing Countries

Adaptation to climate change is given increasing international attention as the confidence in climate change projections is getting higher. Developing countries have specific needs for adaptation due to high vulnerabilities, and they will in this way carry a great part of the global costs of climate change although the rising atmospheric greenhouse gas concentrations are mainly the responsibility of industrialized countries. This article provides a status of climate change adaptation in developing countries. An overview of observed and projected climate change is given, and recent literature on impacts, vulnerability, and adaptation are reviewed, including the emerging focus on mainstreaming of climate change and adaptation in development plans and programs. The article also serves as an introduction to the seven research articles of this special issue on climate change adaptation in developing countries. It is concluded that although many useful steps have been taken in the direction of ensuring adequate adaptation in developing countries, much work still remains to fully understand the drivers of past adaptation efforts, the need for future adaptation, and how to mainstream climate into general development policies.     

Sea level rise: Some implications for Tuvalu

Summary Much current evidence suggests that global temperatures are slowly increasing. It is believed that this increase will be associated with a sea level rise. Tuvalu, approximately 1000 km north of Fiji in the South Pacific Ocean, is one of six countries, all of them island states, that could face total destruction when sea levels rise. If sea level rises occur anywhere near the extreme projections that have been made, we can write these nations off the map. (Pernetta, 1988). This paper examines possible implications to the people of Tuvalu.James Lewis is a Fellow in Development Studies at the University of Bath, UK. This paper is based on the report of a field mission by the author on behalf of The Commonwealth Expert Group on Climate Change and Sea Level Rise (Lewis, 1988).Since submission of this article, James Lewis has taken part as a resource person at the Small States Conference on Sea Level Rise at Male, capital of the Maldives, 14th to 18th, November, 1989. A report of the Conference will be submitted for a subsequent issue ofThe Environmentalist.     

The Colorado,USA, Joint Review Process: an initial evaluation of its success as a permit reform by key participants

Colorado, USA, developed the Joint Review Process (CJRP) in 1978 to coordinate the application and review of permits required for major development projects. Since then, the state has used the process on over 20 projects. This study examined whether the CJRP has achieved its primary goals—enhanced coordination of agencies, enhanced public participation, and strengthened communication between agencies and project sponsors— and several related secondary goals. The success of the process was measured through a survey of 54 key people who had been directly involved with the process. Those surveyed included federal and state agency staff, local agency managers, corporate officers, private consultants, and environmental leaders. All groups, with one exception, agreed that the process achieved its primary goals and that it should be retained. Environmental leaders were neutral about whether the process enhanced public participation and about retaining the process. The report concludes with a review of recommended improvements to and applications of the CJRP.     

The impact of economic activity in Asturias on greenhouse gas emissions: consequences for environmental policy within the Kyoto Protocol framework

Climate change is one of the major worldwide environmental concerns. It is especially the case in many developed countries, where the greenhouse gas emissions responsible for this change are mainly concentrated. For the first time, the Kyoto Protocol includes an international agreement for the reduction of the net emissions of these gases. To fulfil this agreement measures designed to reduce or limit current emissions have to be brought into force. Consequently, fears have arisen about possible consequences on competitiveness and future development of manufacturing activities and the need for support mechanisms for the affected sectors is obvious. In this paper, we carry out a study of the emissions of gases responsible for climate change in Asturias (Spain), a region with an important economic presence of sectors with intensive emissions of CO(2), the chief greenhouse gas. To be precise, in the first place, the volumes of direct emissions of the said gases in 1995 were calculated, showing that the sectors most affected by the Kyoto Protocol in Asturias are iron and steel and electricity production. Secondly, input-output analysis was applied to determine the direct and indirect emissions and the direct, indirect and induced emissions of the different production sectors, respectively. The results derived from the direct and indirect emissions analysis and their comparison with the results of the former allow us to reach some conclusions and environmental policy implications.     

Effect of crude oil carbon accounting decisions on meeting global climate budgets

The Intergovernmental Panel on Climate Change quantified a cumulative remaining carbon budget beyond which there is a high likelihood global average temperatures will increase more than 2 °C above preindustrial temperature. While there is global participation in mitigation efforts, there is little global collaboration to cooperatively mitigate emissions. Instead, countries have been acting as individual agents with independent emission reduction objectives. However, such asymmetric unilateral climate policies create the opportunity for carbon leakage resulting from the shift in embodied carbon emissions within trade networks. In this analysis, we use an optimization-based model of the global crude trade as a case study to demonstrate the importance of a cooperative, system-level approach to climate policy in order to most effectively, efficiently, and equitably achieve carbon mitigation objectives. To do this, we first characterize the cost and life cycle greenhouse gas emissions associated with the 2014 crude production and consumption system by aggregating multiple data sources and developing a balanced trade matrix. We then optimize this network to demonstrate the potential for carbon mitigation through more efficient use of crude resources. Finally, we implement a global carbon cap on total annual crude emissions. We find that such a cap would require crude consumption to drop from 4.2 gigatons (Gt) to 1.1 Gt. However, if each country had an individual carbon allocation in addition to the global cap consistent with the nationally determined contribution limits resulting from the 2015 United Nations Climate Change Conference, allowable consumption would further decrease to approximately 770 million metric tonnes. Additionally, the carbon accounting method used to assign responsibility for embodied carbon emissions associated with the traded crude further influences allowable production and consumption for each country. The simplified model presented here highlights how global cooperation and a system-level cooperative approach could guide climate policy efforts to be more cost effective and equitable, while reducing the leakage potential resulting from shifting trade patterns of embodied carbon emissions. Additionally, it demonstrates how the spatial distribution of crude consumption and production patterns change under a global carbon cap given various carbon accounting strategies.     

The greenhouse gas balance of the Province of Siena

There is a profound debate over how to assign greenhouse gas (GHG) responsibilities; therefore, we have decided to follow IPCC guidelines, as they offer the only standardized method. We have identified each type of greenhouse emission and its level of absorption. We have studied the province and its districts and municipalities. We have determined that the energy sector is that with the highest level of emissions, even if the per capita emissions of the Province of Siena are very low. This is caused by a very low level of industrialization and the presence of a local geothermal production of energy. In order to highlight this aspect, we have considered scenarios both with and without geothermal production. Our research was then focused on single districts (groups of homogenous municipalities) and municipalities, where we found great differences among the greenhouse emissions of the areas. We have constructed a map of the greenhouse emissions of the whole province. It has been interesting to note that there are 14 municipalities with net negative emissions, seven with low positive emissions, 12 with medium positive emissions and three with elevated positive emissions. These latter correspond to the main city and to two of the most industrialized municipalities.     

Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption

In line with the global target of reducing climate change and its impact, this study explored the causal relationship between CO₂ emissions, modernized agriculture, trade openness, aggregate and disaggregate energy consumption in 14 African countries from 1990–2013 using a panel quantile estimation procedure. The empirical results showed that value addition to agricultural commodities declines CO₂ emissions in countries with high pollution levels. The study revealed a positive nexus between CO₂ emissions and energy consumption homogeneously distributed across quantiles. Trade openness was found to lower CO₂ emissions in countries with lower and higher levels of environmental pollution. While fossil fuel energy consumption was found to exacerbate CO₂ emissions, renewable energy consumption confirmed its mitigating effect on environmental pollution. The institution of climate‐smart agricultural options will sustainably increase productivity and income while adapting to climate change by reducing greenhouse gas emissions. Diversification of energy technologies with clean and modern energy sources like renewables avoid the over‐dependence on fossil fuels for agricultural purposes. Trade policies can stimulate flows of technology and investment opportunities for specialization in production and economies of scale. Hence, the consideration of policies that boost agricultural sector productivity and create an efficient market for international trade in Africa will help in improving livelihoods.     

Mitigating Climate Change in US Cities: Opportunities and obstacles

This study examines opportunities for and obstacles to the mitigation of climate change in US cities using the example of the Cities for Climate Protection (CCP) campaign sponsored by the International Council for Local Environmental Initiatives. The CCP experience suggests a number of ways in which municipal governments can control greenhouse gas (GHG) emissions but also highlights several obstacles that make it difficult for local officials to do so. First, climate change is generally framed as a global issue. The CCP experience suggests that climate change is most likely to be reframed as a local issue when the preferred policy response (controlling GHG emissions) can be linked to issues (e.g. air quality) already on the local agenda. Secondly, even when local governments recognise that they should do something to control GHG emissions, institutional barriers make it difficult for municipalities to move from political rhetoric to policy action. Finally, it is questionable whether local initiatives can make meaningful contributions to climate change mitigation in the absence of policy changes at the state and national levels. Este estudio examina oportunidades y obstaculos para la mitigación del cambio climático en las ciudades de Los Estados Unidos usando el ejemplo de "Ciudades para la Protección del Clima" (CCP), campaña patrocinada por el Consejo Intenacional para Iniciativas Ambientales Locales (ICLEI). La experiencia del CCP sugiere un numero de formas en que los gobiernos municipales pueden controlar las emisiones de gas efecto invernadero (GEI) pero tambien resalta varios obstaculos que hacen esto difícil para los funcionarios locales. Primero, el cambio climático es generalmente enmarcado como un asunto global. La experiencia del CCP sugiere que el cambio climático es mas probable que sea renmarcado como un asunto local cuando la respuesta de politica preferida (controlar emisiones de GEI) puede ser relacionada con asuntos que ya estan en la agenda local (ej. calidad del aire). Segundo, aún cuando los gobiernos locales reconozcan que ellos deben hacer algo para controlar las emisiones de GEI, las barreras institucionales hacen difícil que las municipalidades se muevan de retórica politíca a una acción política. Finalmene, es cuestionable si las iniciativas locales puedan hacer contribuciones significativas a la mitigación del cambio climático en ausencia de cambios de política en el estado y a nivel nacional.     

Early action to reduce greenhouse gas emissions before the commitment period of the Kyoto protocol: advantages and disadvantages

Current “business as usual” projections suggest greenhouse gas emissions from industrialized nations will grow substantially over the next decade. However, if it comes into force, the Kyoto Protocol will require industrialized nations to reduce emissions to an average of 5% below 1990 levels in the 2008–2012 period. Taking early action to close this gap has a number of advantages. It reduces the risks of passing thresholds that trigger climate change “surprises.” Early action also increases future generations' ability to choose greater levels of climate protection, and it leads to faster reductions of other pollutants. From an economic sense, early action is important because it allows shifts to less carbon-intensive technologies during the course of normal capital stock turnover. Moreover, many options for emission reduction have negative costs, and thus are economically worthwhile, because of paybacks in energy costs, healthcare costs, and other benefits. Finally, early emission reductions enhance the probability of successful ratification and lower the risk of noncompliance with the protocol. We discuss policy approaches for the period prior to 2008. Disadvantages of the current proposals for Credit for Early Action are the possibility of adverse selection due to problematic baseline calculation methods as well as the distributionary impacts of allocating a part of the emissions budget already before 2008. One simple policy without drawbacks is the so-called baseline protection, which removes the disincentive to early action due to the expectation that businesses may, in the future, receive emission rights in proportion to past emissions. It is particularly important to adopt policies that shift investment in long-lived capital stock towards less carbon-intensive technologies and to encourage innovation and technology development that will reduce future compliance costs.     

Trade-Based Carbon Sequestration Accounting

This article describes and illustrates an accounting method to assess and compare early carbon sequestration investments and trades on the basis of the number of standardized CO₂ emission offset credits they will provide. The gold standard for such credits is assumed to be a relatively riskless credit based on a CO₂ emission reduction that provides offsets against CO₂ emissions on a one-for-one basis. The number of credits associated with carbon sequestration needs to account for time, risk, durability, permanence, additionality, and other factors that future trade regulators will most certainly use to assign official credits to sequestration projects. The method that is presented here uses established principles of natural resource accounting and conventional rules of asset valuation to score projects. A review of 20 early voluntary United States based CO₂ offset trades that involve carbon sequestration reveals that the assumptions that buyers, sellers, brokers, and traders are using to characterize the economic potential of their investments and trades vary enormously. The article develops a universal carbon sequestration credit scoring equation and uses two of these trades to illustrate the sensitivity of trade outcomes to various assumptions about how future trade auditors are likely to score carbon sequestration projects in terms of their equivalency with CO₂ emission reductions. The article emphasizes the importance of using a standard credit scoring method that accounts for time and risk to assess and compare even unofficial prototype carbon sequestration trades. The scoring method illustrated in this article is a tool that can protect the integrity of carbon sequestration credit trading and can assist buyers and sellers in evaluating the real economic potential of prospective trades. Published online