Linking Russia with the European and global greenhouse gas emissions trading markets: three paths for greening the Russian assigned amount under the Kyoto Protocol

This article examines possibilities for linkage between the European Union Emissions Trading System (EU ETS) and Russia, with a view to enhancing cooperation on a broader scale than the project-based approaches that have been tested thus far. Three paths for possible EU-Russia linkage are presented by which the Russian Assigned Amount under the Kyoto Protocol can be greened in order to stimulate emissions trading: 1. Joint implementation—reductions earned via individual projects in Russia; 2. Greened allowances or green investment schemes; and 3. Linked cap-and-trade systems, in which a Russian domestic emissions trading system would link with the European Union Emissions Trading System. The authors conclude that the third option, emissions trading through linked domestic emissions trading systems, offers the best opportunities at the lowest transaction costs. The authors discuss useful innovative instruments like call options and slip level arrangements on government-to-government and business-to-business levels.

The benefits of the Kyoto Protocol to developing countries

The Kyoto Protocol relies on incentive-based regulations layered underneath a global cap on net emissions of greenhouse gases. Within the Kyoto Protocol are opportunities and constraints for signatory nations. Of concern to developing nations are the constraints the Kyoto Protocol could place on future growth. We examine the constraints and the opportunities offered to developing countries within the Kyoto Protocol. By identifying the potential costs and benefits the Kyoto Protocol has to offer to developing countries and by examining the incentives each create, we hope to spark serious investigations into ways to minimize the potential costs of entering the Kyoto Protocol and take full advantage of the potential benefits.

The regional economic impact of reducing greenhouse gas emissions: Western Australia

This study analyses the general-equilibrium impacts of an international climate change response policy on the economy of Western Australia (WA), one of the most mining-based and energy-intensive states of Australia. It finds that emissions would fall by up to 11% from the base level in WA. However, such environmental benefits emanate at some costs to the state economy; in terms of foregone gross state product, the costs are up to 3% of the base level. Indeed, the actual costs and benefits depend on the precise design of the climate change response policy as well as on the other policies within which it operates. For example, when emission quota permits are sold to industries and no tradeable carbon credits (i.e. credits for the carbon sequestrated in Kyoto forests) are granted, emissions decline by about 8% and GSP falls by about 3% of the base levels. If carbon credits are tradeable, however, the environmental benefits could be increased and the GSP cost could be reduced substantially. Also, the reduced economic activity caused by emission abatement results in a modest fall in net government revenue, despite the additional revenue from permit sales in some cases. Accordingly, government’s fiscal package surrounding the emission permits would influence the emission abatement impacts on the economy. With regard to the effects on the structure of the state economy, the oil and gas industry suffers only a slight contraction but the energy-supplying sector as a whole contracts substantially. It is therefore not surprising that the impacts on the WA economy of curbing emissions by energy and transport industries alone are quite significant when compared to those resulted from all industries’ compliance with the abatement scheme. It needs to be noted that the model projections analysed in the paper are based on simplifying assumptions and tentative scenarios, and hence should be viewed with caution and not be understood as unconditional forecasts.     

A Report on the International Conference on Climate Policy after Marrakech: Towards Global Participation

The East-West Center convened the international conference on climate policy in Honolulu, Hawaii, on September 4–6, 2003. Sponsored by the Dutch Ministry of Housing, Spatial Planning and the Environment, the Japanese Ministry of the Environment, Industrial Technology Research Institute (Taiwan), and Institute for Global Environmental Strategies (Japan), this major event covered almost every important issue and featured perspectives from the most important parties and stakeholders in formulating and implementing climate policies and taking international climate negotiations further. It brought together a remarkable cross-section of world opinion on climate policy after Kyoto. This report provides a summary of each presentation and highlights discussions organized under the following six session headings: Session 1: Climate Change in Focus – From Science to Policy; Session 2: U.S. Climate Policy and Perspectives; Session 3: European Union Climate Policy and Perspectives; Session 4: Challenges for other Major Industrialized Countries; Session 5: Issues Related to Developing Countries; and Session 6: Panel Discussions: Where Do We Go from Here?.     

Halogenated compounds and climate change: future emission levels and reduction costs

OBJECTIVES: This work assesses the contribution to climate change resulting from emissions of the group of halogenated greenhouse gases. METHODS: A bottom-up emission model covering 22 technological sectors in four major regions is described. Emission estimates for 1996 and projection for 2010 and 2020 are presented. The costs for deep cuts into projected emission levels are calculated. RESULTS: The substances covered by this study have contributed emissions of 1100 +/- 800 MT CO2 equivalents per year in 1996. In terms of their relative contribution to emissions of CO2 equivalents, this corresponds to 3 +/- 2% of global emissions of all anthropogenic greenhouse gases. The wide range of uncertainty is due to the poorly quantified net global warming potential of the ozone depleting substances, which have an indirect cooling effect on climate through the destruction of stratospheric ozone. For annual emissions of HFCs, PFCs and SF6 (which are regulated under the Kyoto Protocol and for which global warming potentials are well defined), the relative contribution is projected to increase to 2% (600 MT CO2 eq.) of global greenhouse gas emissions by 2010. This trend is expected to continue, emissions are projected to grow to a contribution of roughly 3% (870 MT CO2 eq.) in 2020 compared to 0.9% (300 MT CO2 eq.) in 1996. For HFCs, PFCs and SF6, this study identifies global emission reduction potentials of 260 MT CO2 eq. per year in 2010 and 640 MT CO2 eq. per year in 2020 at below US$ 50 per ton. These values correspond to roughly 40% and 75% of projected emissions in 2010 and 2020, respectively.     

Why a 100-Year Time Horizon should be used for GlobalWarming Mitigation Calculations

Global warming mitigation calculationsrequire consistent procedures for handlingtime in order to compare `permanent' gainsfrom energy-sector mitigation options with`impermanent' gains from many forest-sectoroptions. A critical part of carbonaccounting methodologies such as thosebased on `ton-years' (the product of thenumber of tons of carbon times the numberof years that each ton is held out of theatmosphere) is definition of a timehorizon, or the time period over whichcarbon impacts and benefits are considered. Here a case is made for using a timehorizon of 100 years. This choice avoidsdistortions created by much longer timehorizons that would lead to decisionsinconsistent with societal behavior inother spheres; it also avoids a rapidincrease in the implied value of time ifhorizons shorter than 100 years are used.Selection of a time horizon affectsdecisions on financial mechanisms andcarbon credit. Simple adaptations canallow a time horizon to be specified andused to calculate mitigation benefits andat the same time reserve a given percentageof weight in decision making forgenerations beyond the end of the timehorizon. The choice of a time horizon willheavily influence whether mitigationoptions such as avoided deforestation areconsidered viable.     

Prospects for mitigating carbon,conserving biodiversity,and promoting socioeconomic development objectives through the clean development mechanism

Should forest-based climate mitigationmeasures be approved for crediting through the CleanDevelopment Mechanism (CDM), they could offer anopportunity to accomplish three important objectives:cost-effective reductions in carbon emissions andsequestration of atmospheric carbon; conservation andrestoration of forests and their biological diversity;and, the assistance of host countries and communitiesin their socioeconomic development. However,prospective investors in CDM projects, host countriesand other CDM `stakeholders' might be expected toplace widely different priorities on achieving theseobjectives. This paper describes several factors thatwill affect investor interest in CDM projects, thecharacteristics of forest-based CDM projects that willattract investments, and an approach to identifyingprojects that meet the key objectives of multiplestakeholders. This approach entails identifyingsites, such as degraded watersheds, where CDMfinancing for forest conservation and restoration cangenerate readily monetizable local and regionalsocioeconomic benefits, while mitigating carbonemissions in forests with importance for conservingbiodiversity.     

国际碳减排活动中的利益博弈和中国策略的思考

博弈论能够解释许多经济活动和国际关系中出现的现象和问题。利用博弈论的相关理论。对《京都议定书》各利益集团之间的利益争斗进行了分析。指出各利益集团之间斗争的内在原因。并对中国在新一轮谈判中的策略提出了一些建议：由于《京都议定书》生效,而美国仍拒绝批准《京都议定书》。并同时抛出自己的减排方案。这必然会引起新一轮的减排博弈。面对美国等一些国家施加的压力,中国在这场新的博弈中要有所准备。提出具有建设性的建议和意见。既要维护中国和大多数发展中国家的利益。又要有助于减排。     

Estimation of the impact of oil palm plantation establishment on greenhouse gas balance

Estimates of emissions indicate that if tropical grassland is rehabilitated by oil palm plantations, carbon fixation in plantation biomass and soil organic matter not only neutralises emissions caused by grassland conversion, but also results in the net removal of about 135 Mg carbon dioxide per hectare from the atmosphere. In contrast, the emission from forest conversion clearly exceeds the potential carbon fixation of oil palm plantings. Forest conversion on mineral soils to promote continued oil palm mono cropping causes a net release of approximately 650 Mg carbon dioxide equivalents per hectare, while the emission from peat forest conversion is even higher due to the decomposition of drained peat and the resulting emission of carbon oxide and nitrous oxide. The conversion of one hectare of forest on peat releases over 1,300 Mg carbon dioxide equivalents during the first 25-year cycle of oil palm growth. Depending on the peat depth, continuous decomposition augments the emission with each additional cycle at a magnitude of 800 Mg carbon dioxide equivalents per hectare. The creation of ‘flexibility mechanisms’ such as the clean development mechanism and emission trading in the Kyoto Protocol could incorporate plantations as carbon sinks in the effort to meet emission targets. Thus, for the oil palm industry, grassland rehabilitation is an option to preserve natural forest, avoid emissions and, if the sequestered carbon becomes tradable, an opportunity to generate additional revenue. Readers should send their comments on this paper to BhaskarNath@aol.com within 3 months of publication of this issue.     

CDM Projects under the Kyoto Protocol: A Methodology for Sustainability Assessment – Experiences from South Africa and Uruguay

Under the Clean Development Mechanism (CDM) of the Kyoto Protocol, industrialised countries may finance greenhouse gases mitigation projects in developing countries. The Kyoto Protocol explicitly requires that the CDM shall assist developing countries to achieve sustainable development. However, a clear definition of sustainability for CDM projects is still debatable. MATA-CDM (Multi-Attributive Assessment of CDM Projects) is an approach that facilitates a quantitative assessment of potential projects regarding their contribution to sustainable development. This paper presents applications of MATA-CDM in two different countries. In South Africa, the application was done mainly for academic and demonstrative purposes, whereas in Uruguay it was implemented together with the responsible Designated National Authority (DNA). The work in both countries included the selection of sustainability criteria and measurable indicators. Experts weighted the criteria using personal interviews and a multi-stakeholder workshop. This method was applied to three potential CDM projects in South Africa and one in Uruguay. Results show that under the conditions of this study, the MATA-CDM approach yet fails to yield a perfect quantitative overall sustainability assessment of CDM projects but that several findings could be useful to further develop the approach with the aim to translate the vague term sustainable development to a mainstream project level. Valuable experience was in particular collected with different stakeholder processes to perform criteria weighting.