The effect of different mitigation strategies on international financing of adaptation

Recent proposals at the UNFCCC meeting in Bali in December 2007 suggest that a 2% levy on the CDM could finance adaptation costs in developing regions. Other proposals include extending the scope of the levy to emissions trading. This study applies an Integrated Assessment Model to gain insight in the interactions between adaptation costs, residual damages and mitigation costs and to analyse the effectiveness of a 2% levy on both the CDM and emissions trading from developing countries. We show that adaptation is especially important in lower income regions where damages are higher. The revenues of a 2% levy strongly depend on both the climate mitigation target and the burden-sharing regime. A more stringent climate mitigation target results in more emissions trade and, in the longer run, less need for adaptation. Both factors increase the share of adaptation costs that can be funded. The burden-sharing regime strongly affects the revenues of a 2% levy as well: relatively more stringent targets for developed countries increase the revenues of a 2% levy. However, in the next two decades the share of adaptation that can be financed remains well below 20% in most cases. Additional funding mechanisms are therefore necessary to substantially finance adaptation costs in developing countries.     

Costs and benefits of differences in the timing of greenhouse gas emission reductions

Most modelling studies that explore long-term greenhouse gas mitigation scenarios focus on cost-efficient emission pathways towards a certain climate target, like the internationally agreed target to keep global temperature increase below 2 °C compared to pre-industrial levels (the 2 °C climate target). However, different timing of reductions lead to different transient temperature increase over the course of the century and subsequently to differences in the time profiles of not only the mitigation costs but also adaptation costs and residual climate change damage. This study adds to the existing literature by focussing on the implication of these differences for the evaluation of a set of three mitigation scenarios (early action, gradual action and delayed action), all three limiting global temperature increase below 2 °C above pre-industrial levels, using different discount rates. The study shows that the gradual mitigation pathway is, for these discount rates, preferred over early or delayed action in terms of total climate costs and net benefits. The relative costs and benefits of the early or delayed mitigation action scenarios, in contrast, do strongly depend on the discount rate applied. For specific discount rates, these pathways might therefore be preferred for other reasons, such as reducing long-term uncertainty in climate costs by early action.     

The Green Climate Fund as an effective compensatory mechanism in global climate negotiations

The Paris Agreement reached during the COP21 in December 2015 represents a timid step towards burden sharing in emission mitigation involving all countries. However, given the heterogeneity of countries and their relative differences in vulnerability to climate change damage and in mitigation costs, compensating schemes are required to reach an effective agreement. This paper investigates the role of the Green Climate Fund (GCF) as a potential compensating measure for both adaptation and mitigation actions under a global climate regime. A dynamic climate-economy computable general equilibrium model (GDynEP) is developed by including both a monetary valuation of climate change damage costs and two alternative methods to determine the allocation of GCF resources among receiving countries and between adaptation and mitigation contributions. Results show that, despite the high costs associated with the implementation of mitigation actions, most developing countries would face even higher costs in case of inaction. Furthermore, the preference of a country for an allocation method is strongly influenced by its characteristics and needs. Consequently, a main policy conclusion is to design country-specific sharing rules for GCF in order to maximize country participation in a global agreement.     

Dynamic equity carbon permit allocation scheme to limit global warming to two degrees

Significant international collaboration is required to limit global temperature increase to below 2 °C above pre-industrial levels. Equity is the foundation of cooperation, and therefore, this study proposed a new dynamic carbon permit allocation scheme based on four principles: equality, historical responsibility, capability, and future development opportunities. Decision makers could have different preferences for allocating carbon permits, therefore, four equity rules or indicators (equality, responsibility, capacity, and sovereignty) were assigned different weights. Based on the global carbon budget of the 2 °C target, emission permits were calculated and relevant economic implications analyzed using the Global Change Assessment Model. Results indicated that developed countries should reduce emissions immediately, while allowances for developing regions could permit an initial increase in emissions until peaking. Applying different weights to the indicators resulted in multifarious regional allowances. Developed regions would benefit from the “preferring sovereignty” scenario and most developing countries would benefit under the “preferring responsibility” and “preferring capacity” scenarios. Compared with the Intended Nationally Determined Contributions submitted to the United Nations Framework Convention on Climate Change, this study found that in the short term, developed countries might insist on sovereignty as the preferred indicator. However, preferring sovereignty would place substantial mitigation pressures on developing countries in the long term. Therefore, in addressing global climate change, a dynamic choice in the weighting distribution for different indicators might be conducive to international agreement. Furthermore, a market-based trading instrument could help all participants both mitigate global climate change by reducing regional and global costs and facilitate mitigation capital flow from developed to less developed regions.     

Nuclear power and post-2012 energy and climate change policies

At present there is no binding agreement (at a global level) to address the risk of anthropogenic climate change after 2012. Disagreements abound with respect to a post-2012 climate change agreement, on issues such as economic development, policy criteria, environmental effectiveness, cost-effectiveness, equity, dynamic flexibility, complementarity, enforceability and so on. One such disagreement is whether or not nuclear power should play a role in a post-2012 climate change agreement. This qualitative analysis explores the conditions under which nuclear power could contribute to addressing climate change in post-2012 architectures. It reveals that – given the right framework conditions – some architectures, like ‘cap and trade’ regimes or ‘policies and measures’ can improve the competitiveness of nuclear power plants, while others are unlikely to provide incentives for nuclear energy development in the short to medium term, such as adaptation and technology cooperation. Overall, the study concludes that post-2012 climate change policy should aim at providing policy flexibility without compromising technology flexibility. For example, the provision of long-term commitment periods has the potential to enable better investments in existing low-carbon technologies but stifle the policy flexibility that political decision makers are often keen to retain so that they can respond more quickly to new scientific evidence or advances in clean technology development.     

Adaptation and mitigation: trade-offs in substance and methods

Adaptation to climate change and mitigation of climate change are policy substitutes, as both reduce the impacts of climate change. Adaptation and mitigation should therefore be analysed together, as they indeed are, albeit in a rudimentary way, in cost-benefit analyses of emission abatement. However, adaptation and mitigation are done by different people operating at different spatial and temporal scales. This hampers analysis of the trade-offs between adaptation and mitigation. An exception is facilitative adaptation (enhancing adaptive capacity), which, like mitigation, requires long-term policies at macro level. Facilitative adaptation and mitigation not only both reduce impacts, but they also compete for resources.     

Carbon emission efficiency of thermal power in different regions of China and spatial correlations

In China, the power industry contributes significantly to carbon emissions, reducing carbon emissions in this industry is conducive to China's adaptation and mitigation of climate change. Researches on green and low-carbon power have attracted increasing attention. In this paper, we analyze and compare the carbon emissions from thermal power sector in 30 Chinese provinces, divided into three main regions. Based on the panel data over the period 2002–2016, we use a slacks-based measurement (SBM) model to measure the carbon emission efficiency of China’s power sector. The results show that the carbon emission efficiency of the system is relatively low, with marked differences among regions. Based on the Moran’s I, we further found spatial heterogeneity in carbon emission efficiency of provincial power sector. Policies for adaptation and mitigation of climate change should have regional differences. Interregional collaboration also plays a key role in adapting to and mitigating climate change. For China, it is an important issue to develop clean coal-fired power generation and vigorously develop renewable energy. From a global perspective, energy transformation needs to be continuously promoted. Promoting low-carbon transformation of global energy system requires deep technical cooperation and synergy. Global mitigation strategy should focus on the orientation of structural reform and constantly optimize the energy structure.

     

Mitigation and adaptation synergy in forest sector

Mitigation and adaptation are the two main strategies to address climate change. Mitigation and adaptation have been considered separately in the global negotiations as well as literature. There is a realization on the need to explore and promote synergy between mitigation and adaptation while addressing climate change. In this paper, an attempt is made to explore the synergy between mitigation and adaptation by considering forest sector, which on the one hand is projected to be adversely impacted under the projected climate change scenarios and on the other provide opportunities to mitigate climate change. Thus, the potential and need for incorporating adaptation strategies and practices in mitigation projects is presented with a few examples. Firstly, there is a need to ensure that mitigation programs or projects do not increase the vulnerability of forest ecosystems and plantations. Secondly, several adaptation practices could be incorporated into mitigation projects to reduce vulnerability. Further, many of the mitigation projects indeed reduce vulnerability and promote adaptation, for example; forest and biodiversity conservation, protected area management and sustainable forestry. Also, many adaptation options such as urban forestry, soil and water conservation and drought resistant varieties also contribute to mitigation of climate change. Thus, there is need for research and field demonstration of synergy between mitigation and adaptation, so that the cost of addressing climate change impacts can be reduced and co-benefits increased.     

Long-term reductions in costs of controlling regional air pollution in Europe due to climate policy

This paper examines to what extent climate change policies will alter the effectiveness of agreed-upon or future policies to reduce regional air pollution in Europe and vice versa. And when is it cost-effective to combat regional air pollution with clean technology instead of add-on technology?For this exercise, several extensions were made to the energy model TIMER, to introduce add-on abatement technologies, specified in terms of costs and reduction potentials, in order to be able to calculate cost-effective emission reduction strategies for different scenarios and regions.The results show that add-on technologies to reduce regional air pollution remain necessary throughout the century. The costs to reach the NO_x emission reduction targets in Europe are about three times as high as for SO₂. Mitigation costs averaged over the century by add-on technologies can be reduced by climate measures by 50–70% for SO₂ and around 50% for NO_x. The costs of SO₂ and NO_x mitigation by add-on technology in a world without climate policy are comparable or in some periods even higher than the costs of an integrated mitigation of SO₂, NO_x and CO₂ emissions if a reduction of specific costs by learning is, in contrast with energy technologies, not assumed for abatement technologies. So, the costs of SO₂ and NO_x add-on measures avoided by climate policies can outweigh the costs of these climate measures. The total annual costs are in the order of 1 or 2% of the present GDP, depending on the scenario.     

A Framework for Benefit-Cost Analysis of Adaptation to Climate Change and Climate Variability

The potential damages of climate change and climate variability are dependent upon the responses or adaptations that people make to their changing environment. By adapting the management of resources, the mix and methods of producing goods and services, choices of leisure activities, and other behavior, people can lessen the damages that would otherwise result. A framework for assessing the benefits and costs of adaptation to both climate change and climate variability is described in the paper. The framework is also suitable for evaluating the economic welfare effects of climate change, allowing for autonomous adaptation by private agents. The paper also briefly addresses complications introduced by uncertainty regarding the benefits of adaptation and irreversibility of investments in adaptation. When investment costs are irreversible and there is uncertainty about benefits, the usual net present value criterion for evaluating the investment gives the wrong decision. If delaying an adaptation project is possible, and if delay will permit learning about future benefits of adaptation, it may be preferable to delay the project even if the expected net present value is positive. Implications of this result for adaptation policy are discussed in the paper.     

美国温室气体减排努力现状及近期动向

美国作为全球温室气体排放大国之一,在国际气候谈判中的立场至关重要。本文从州政府和地方政府角度总结了美国已采取的减排努力措施,分析了德班会议前后其应对气候变化动向,探讨了对我国采取温室气体减排行动和措施的借鉴意义和启示。美国由于受到持续低迷的经济环境,缓慢的国际气候谈判进程,以及2012年总统大选的影响,国内温室气体减排行动和措施实质进展缓慢,我国应总结和借鉴美国已采取减排行动措施的经验教训,从加快建立健全国内气候立法体系,推动国内碳市场建立出发,积极应对国内外气候变化制度中存在的不确定性,不断提高我国在国际气候谈判中的地位。     

Climate change adaptation in the ski industry

Regardless of the success of climate change mitigation efforts, the international community has concluded that societies around the world will need to adapt to some magnitude of climate change in the 21st century. While some economic sectors (e.g., agriculture, water resources and construction) have been actively engaged in climate change adaptation research for years, adaptation has received scant consideration within the tourism-recreation industry. This is particularly the case for adaptation by tourism operators (supply-side). One exception where progress on supply-side climate adaptation has been made is the ski industry. This paper provides a brief overview of the literature on the implications of climate change for the international ski industry and how adaptation by ski area operators has been treated within these studies. This is followed by an inventory of climate adaptation practices currently used by ski industry stakeholders, including the historical development of certain key adaptations and constraints to wider use. The characteristics of ski areas with higher adaptive capacity are identified. Considering the highly competitive nature of the ski industry and the generally low climate change risk appraisal within the industry, climate change adaptation is anticipated to remain individualistic and reactive for some time. With only a few exceptions, the existing climate change literature on winter tourism has not considered the wide range of adaptation options identified in this paper and has likely overestimated potential damages. An important task for future studies is to develop methodologies to incorporate adaptation so that a more accurate understanding of the vulnerability of the international ski industry can be ascertained.     

Balancing China’s climate damage risk against emission control costs

In this study, we incorporate a three-reservoir climate module into our energy-economy-environmental integrated (3E-integrated) system model, in order to estimate the effect of China’s contribution of unilateral emissions on global warming and to weigh the macro-mitigation cost against the risk of damage, and we also explore the role of adaptation in reducing climate change risk. Our results suggest that China’s unilateral emission-control action plays a relatively limited role in mitigating global warming and is not particularly cost-effective, given that the macro-reduction cost is much larger than the benefit in the corresponding climate damage mitigation. Adaptation plays a large role in curbing China’s climate damages and improving the economics of China’s unilateral emission-control actions, and it is little affected by the introduction and option mitigation strategies. To prevent global warming from exceeding critical thresholds, more international collaborations and cooperative efforts are therefore anxiously needed; as for China, bolstering a low-carbon economy and installing an effective mechanism for improving the adaptation level are two feasible options for controlling climate damage risks, given the great uncertainty on the present situation of international cooperation mitigation.     

Climate change adaptation,mitigation and livelihood benefits in coffee production: where are the synergies?

There are worldwide approximately 4.3 million coffee (Coffea arabica) producing smallholders generating a large share of tropical developing countries’ gross domestic product, notably in Central America. Their livelihoods and coffee production are facing major challenges due to projected climate change, requiring adaptation decisions that may range from changes in management practices to changes in crops or migration. Since management practices such as shade use and reforestation influence both climate vulnerability and carbon stocks in coffee, there may be synergies between climate change adaptation and mitigation that could make it advantageous to jointly pursue both objectives. In some cases, carbon accounting for mitigation actions might even be used to incentivize and subsidize adaptation actions. To assess potential synergies between climate change mitigation and adaptation in smallholder coffee production systems, we quantified (i) the potential of changes in coffee production and processing practices as well as other livelihood activities to reduce net greenhouse gas emissions, (ii) coffee farmers’ climate change vulnerability and need for adaptation, including the possibility of carbon markets subsidizing adaptation. We worked with smallholder organic coffee farmers in Northern Nicaragua, using workshops, interviews, farm visits and the Cool Farm Tool software to calculate greenhouse gas balances of coffee farms. From the 12 activities found to be relevant for adaptation, two showed strong and five showed modest synergies with mitigation. Afforestation of degraded areas with coffee agroforestry systems and boundary tree plantings resulted in the highest synergies between adaptation and mitigation. Financing possibilities for joint adaptation-mitigation activities could arise through carbon offsetting, carbon insetting, and carbon footprint reductions. Non-monetary benefits such as technical assistance and capacity building could be effective in promoting such synergies at low transaction costs.     

Complementarity between mitigation and adaptation: the water sector

The water cycle, a fundamental component of climate, is likely to be altered in important ways by climate change. Climate change will most likely worsen the already existing water related problems. Then the question is how should policy makers respond to this dilemma. Climate change mitigation, through greenhouse gas (GHG) emissions reduction and sequestration is not a sufficient response. Adaptation will also need to feature as a response strategy. Mitigation and adaptation need to be viewed as complementary responses to climate change. Complementarity between adaptation and mitigation in the water sector will be addressed in this paper. The paper will also outline the main impacts of climate change on water resources and identify those areas that are most dependent and vulnerable to hydrological systems (e.g., hydroelectric systems, irrigation, agriculture) and any changes thereof resulting from climate change. It will aim to assess the impact of water demand and water use, with a view to identifying the main relationships between mitigation and adaptation in the water sector and the means through which individual mitigation and adaptation actions can potentially interact with each other for the benefit of the water sector as a whole. It will also explore the implications of climate change on the management of water resources. Adaptation and mitigation options would be considered in the context of their socio-economic and environmental impacts and their contribution to sustainable development. A brief evaluation of how this information can be directly used for planning purpose will also be presented.

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Forests and climate change adaptation policies in Cameroon

Nowadays, adaptation has become a key focus of the scientific and policy-making communities and is a major area of discussion in the multilateral climate change process. As climate change is projected to hit the poorest the hardest, it is especially important for developing countries to pay particular attention to the management of natural resources and agricultural activities. In most of these countries such as Cameroon, forest can play important role in achieving broader climate change adaptation goals. However, forest generally receives very little attention in national development programme and strategies such as policy dialogues on climate change and poverty reduction strategies. Using a qualitative approach to data collection through content analysis of relevant Cameroon policy documents, the integration of climate change adaptation was explored and the level of attention given to forests for adaptation analysed. Results indicate that, with the exception of the First National Communication to UNFCCC that focused mostly on mitigation and related issues, current policy documents in Cameroon are void of tangible reference to climate change, and hence failing in drawing the relevance of forest in sheltering populations from the many projected impacts of climate change. Policies related to forest rely on a generalized concept of sustainable forest management and do not identify the specific changes that need to be incorporated into management strategies and policies towards achieving adaptation. The strategies and recommendations made in those documents only serve to improve understanding of Cameroon natural resources and add resilience to the natural systems in coping with anthropogenic stresses. The paper draws attention to the need to address the constraints of lack of awareness and poor flow of information on the potentials of forests for climate change adaptation. It highlights the need for integrating forest for adaptation into national development programmes and strategies, and recommends a review of the existing environmental legislations and their implications on poverty reduction strategy and adaptation to climate change.     

GHG emission pathways until 2300 for the 1.5 °C temperature rise target and the mitigation costs achieving the pathways

The Paris Agreement of the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change refers to the 1.5 °C target as well as the 2 °C target, and it is important to estimate the emission pathways and mitigation measures for the 1.5 °C target for the discussions on the target. The possible emission pathways vary widely because of the uncertainties involved. We assumed three kinds of temperature trajectories for meeting below 1.5 °C compared with the pre-industrial level, and three numbers for the climate sensitivity. The first trajectory remains below 1.5 °C all the time until 2300, the second overshoots but returns to below 1.5 °C by 2100, and the third overshoots but returns to below 1.5 °C by 2300. There are large differences in terms of 2030 emissions between the estimate from the submitted Nationally Determined Contributions (NDCs) and any of assessed emission pathways involving climate sensitivity of 3.0 °C or higher, and high emission reduction costs were estimated, even for 2030. With climate sensitivity of 2.5 °C, only the third trajectory exhibits consistent emissions in 2030 with the NDCs. However, this case also appears very difficult to achieve, requiring enormous amounts of negative emissions after the middle of this century toward 2300. A climate mitigation strategy aiming for the 1.5 °C target will be debatable, because we face serious difficulties in near- or/and long-term for all the possible emission pathways, and therefore, we should rather focus on actual emission reduction activities than on the 1.5 °C target with poor feasibility.     

初始排放权分配对各省区碳交易策略及其减排成本的影响分析

碳排放权分配是我国碳交易机制设计的根本性问题之一.然而,不同初始分配方案对我国碳减排和宏观经济的影响尚不明确,成为制约碳交易市场快速发展的重要因素.本文以我国"十三五"时期碳排放强度下降目标为约束构建非线性规划模型,模拟了"祖父分配方案"、"支付能力方案"和"人口规模方案"3种初始排放权分配方案对各省区碳交易策略及其减排成本的影响.结果表明,碳交易市场能有效降低我国实现碳排放强度下降目标的经济成本,但在不同初始排放权分配方案下省区间的碳减排成本差异有所不同.与"支付能力方案"和"人口规模方案"相比,"祖父分配方案"下省区间碳减排成本差异较小,更能体现碳排放权分配的公平性.以公平为导向的初始排放权分配和以效率为导向的碳排放权交易相结合,有助于我国提升碳排放权配置效率、降低减排成本,促进省区间碳交易市场均衡发展.     

Scale and benefit of global carbon markets under the 2 °C goal: integrated modeling and an effort-sharing platform

Global climate change mitigation needs all countries’ efforts under the United Nations Framework Convention on Climate Change’s guideline of equity and common but differentiated responsibilities and respective capabilities. The medium-to-long term regional emissions pathways simulated by integrated assessment models with global mitigation costs minimized to achieve the 2 °C goal might be very different from the regional emissions allowances allocated based on effort-sharing principles. Global carbon trading is a cost-effective mechanism to bridge the gap. Insight of previous papers has mainly focused on the impact of a single effort-sharing scheme on global carbon market, while this study attempts to explore the scale and benefit of global carbon market under different effort-sharing principles to achieve the 2 °C goal, with the application of a consistent modeling framework, consisting of an integrated assessment model and an effort-sharing platform. The results indicate that scale of global carbon market would be highly related with the effort-sharing principles. The global trading volumes would change from 1.8 Gigatons (Gt) carbon dioxide (CO₂) to over 12 GtCO₂ per year and largely peak between 2030 and 2040 under different kinds of effort-sharing principles. Correspondingly, annual global finance flows in the carbon market would increase gradually and reach the scale of hundreds of billions United States (US) dollars since 2020. Global carbon market would lower the abatement costs of developed countries, and the overall global abatement costs would drop by 0.4–2.6% during 2011–2050. The developing countries would not only acquire revenues from global carbon trading but also be provided with an opportunity to accelerate their domestic low-carbon energy transformation, local environmental improvement, job creation, and economic development. Linking national and regional carbon markets to develop global carbon market will be critical to maximize the utility of the market mechanism.     

Supporting greenhouse gas mitigation in developing cities: a synthesis of financial instruments

One of the major concerns with the post-2012 global climate regime is to reach consensus on how to finance actions needed in fast-growing developing economies for significant greenhouses gases emissions mitigation. International financial and technology transfer are bound to bridge the gap under well-designed institutional framework to facilitate the transition to low(er) carbon development trajectories in developing countries. So far, cities, which contribute nearly 80% of global emissions, have not yet been recognised as a legitimate entity to implement different greenhouse gas mitigation policies and measures with relevant technical and financial abilities. Here we discuss the scope and scale of different climate-relevant financial mechanisms and describe their comparative advantages and weakness in financing climate resilient urban infrastructures (buildings and transport in particular). We show the limitations of current instruments available in scaling up necessary financial flows into developing cities to achieve the long term climate stabilisation targets. Lastly, the paper examines the feasibility of factoring the sector-wise and Nationally Appropriate Mitigation Actions (NAMA) mechanisms into local authorities’ long-term mitigation strategy by raising necessary funds to facilitate shifting the business as usual trajectories in developing cities in the next decades.