CDM in the Kyoto Negotiations:

The Clean Development Mechanism (CDM) under the Kyoto Protocol to the UN Framework Convention on Climate Change (UNFCCC) has its origins in the decade of UNFCCC negotiations. ‘Joint implementation’ and ‘activities implemented jointly pilot’ opened the door for the project-based mechanisms between developed and developing countries. The US proposal of the Joint Implementation in the Kyoto Protocol negotiations was almost identical with CDM approved in Kyoto; however, a detour around the Clean Development Fund (CDF) concept raised by Brazil in the negotiations catalyzed the mutual understanding on the win-win nature of the concept of joint implementation.CDM has been played an important role to bridge the developed and developing countries in its development process initiated as the joint implementation in the UNFCCC, and can lead to the cooperative future in the implementation stage starting from the year 2003, including the development of future commitments beyond 2013. This revised version was published online in August 2006 with corrections to the Cover Date.     

GHG emission reductions and costs to achieve Kyoto target

Emission projection and marginal abatement cost curves (MACs) are the central components of any assessment of future carbonmarket, such as CDM (clean development mechanism) potentials, carbon quota price etc. However, they are products of very complex,dynamic systems driven by forces like population growth, economic development, resource endowments, technology progress and so on. The modeling approaches for emission projection and MACs evaluation were summarized, and some major models and their results were compared.Accordingly, reduction and cost requirements to achieve the Kyoto target were estimated. It is concluded that Annex I Parties‘ total reduction requirements range from 503--1304 MtC with USA participation and decrease significantly to 140--612 MtC after USA‘ s withdrawal. Total costs vary from 21--77 BUSD with USA and from 5--36 BUSD without USA if only domestic reduction actions are taken. The costs would sharply reduce while considering the three flexible mechanisms defined in the Kyoto Protocol with domestic actions‘ share in the all mitigation strategies drons to only 0--16%.     

Methods for project-based mechanisms (JI/CDM)—relevance of IPCC inventory guidelines

A baseline for a project consists of estimates of annual emissions of greenhouse gases (GHG) for a given time period without implementing the project. A general three-step process for determining the baseline is suggested. The emission reduction of the project is given by the difference between the baseline and the monitored annual emissions. A preferred method, direct measurement of the emission reduction, is possible for some types of projects. Methods for estimating the annual baseline emissions are not necessary for the latter category, and a definition of this project category is suggested. IPCC Guidelines for National GHG Inventories categorise the emission sources so that only direct emissions from consumption of fuel and feedstock are calculated. There are thus no emission factors for indirect emissions (e.g. electricity consumption or km transported) or emission factors that depend on technology only, independent of consumption of fuel and feedstock. Technology-dependent emission factors may thus need to be developed for estimating indirect emissions and multi-project baselines. Consistency should be sought with the IPCC Guidelines when estimating annual baseline emissions and in monitoring project emissions to ensure comparability with the National Inventories.     

Developing Canada's National Forest Carbon Monitoring, Accounting and Reporting System to Meet the Reporting Requirements of the Kyoto Protocol

The rate of carbon accumulation in the atmosphere can be reduced by decreasing emissions from the burning of fossil fuels and by increasing the net uptake (or reducing the net loss) of carbon in terrestrial (and aquatic) ecosystems. The Kyoto Protocol addresses both the release and uptake of carbon. Canada is developing a National Forest Carbon Monitoring, Accounting and Reporting System in support of its international obligations to report greenhouse gas sources and sinks. This system employs forest-inventory data, growth and yield information, and statistics on natural disturbances, management actions and land-use change to estimate forest carbon stocks, changes in carbon stocks, and emissions of non-CO₂ greenhouse gases. A key component of the system is the Carbon Budget Model of the Canadian Forest Sector (CBM-CFS). The model is undergoing extensive revisions to enable analyses at four spatial scales (national, provincial, forest management unit and stand) and in annual time steps. The model and the supporting databases can be used to assess carbon-stock changes between 1990 and the present, and to predict future carbon-stock changes based on scenarios of future disturbance rates and management actions.     

Domestic UNFCCC Kyoto Protocol Mechanisms Project Supply Coordination Through Tendering – Lessons from the New Zealand Experience

A United Nations Framework Convention on Climate Change (UNFCCC) Joint Implementation (JI) host country has to make sure that JI projects are additional to avoid extra costs to generate the reductions necessary to cover the deduction of Emission Reduction Units (ERUs) from the country’s Kyoto Protocol emissions budget. A tender of ERUs by the government allows to generate additional reductions beyond the ERUs issued if it thoroughly checks project additionality. The government of New Zealand is running a tender for JI projects under the title “Projects to Reduce Emissions” since 2003. In two rounds, 10 million ERUs have been awarded and several projects have already entered into contracts with European buyers. The ratio of ERUs awarded to reductions achieved was 0.8 in the second tender. However it remains to be seen whether the additionality test of this tender is sufficient to exclude clearly non-additional projects.     

Geological CO2 Storage as a Climate Change Mitigation Option

Carbon dioxide (CO₂₎ capture and storage is increasingly being considered as an important climate change mitigation option. This paper explores provisions for including geological CO₂ storage in climate policy. The storage capacity of Norway's Continental Shelf is alone sufficient to store a large share of European CO₂ emissions for many decades. If CO₂ is injected into oil reservoirs there is an additional benefit in terms of enhanced oil recovery. However, there are significant technical and economic challenges, including the large investment in infrastructure required, with related economies of scale properties. Thus CO₂ capture, transportation and storage projects are likely to be more economically attractive if developed on a large scale, which could mean involving two or more nations. An additional challenge is the risk of future leakages from storage sites, where the government must take on a major responsibility. In institutional and policy terms, important challenges are the unsettled status of geological CO₂ storage as a policy measure in the Kyoto Protocol, lack of relevant reporting and verification procedures, and lack of decisions on how the option should be linked to the flexibility mechanisms under the Kyoto Protocol. In terms of competitiveness with expected prices for CO₂ permits under Kyoto Protocol trading, the relatively high costs per tonne of CO₂ stored means that geological CO₂ storage is primarily of interest where enhanced oil recovery is possible. These shortcomings and uncertainties mean that companies and governments today only have weak incentives to venture into geological CO₂ storage.     

Utilization of Bagasse Energy in Thailand

Bagasse, a biomass fuel, is the waste generated by the sugar-making process from sugar cane. Sugar making is one of the most important agricultural-produce processing industries for developing countries in Southeast Asia, Latin America and Africa. As sugar producing plants need electric power and process steam, co-generation using bagasse as an alternate fuel for petroleum has been in use for some time. Thailand recently became one of the largest sugar exporters by enlarging plant capacities and improving equipment, thus reducing its production cost. In addition, the Thai government promotes power generation using bagasse as a means to combat global warming by raising the purchase price of the surplus power. The industry is in the process of further raising the plant capacity, and improving the power-generating efficiency. This will enable a plant to generate more electric power than its in-plant need so that the surplus power can be sold to the commercial grid. It also plans to become a local power supplier during off-season of sugar making by adding a condensing turbine generator. A typical Thai sugar plant of the latest design generates steam of 4Mpa at the bagasse boiler outlet with the temperature of 400°C at 84% boiler efficiency. With the bagasse LHV of 7,540 kJ/kg and that of fuel oil 41, 840 kJ/kg, and taking 90%as oil-burning boiler efficiency, 5.95 kg of bagasse would replace 1 kg of oil. The Kyoto Mechanism defines CO₂ generation by fuel oil as 2.65 kg per liter. Using 0.85for the specific gravity of fuel oil, the amount of CO₂ generation will be 3.12 kg-CO₂/kg. Therefore, CO₂reduction per ton of bagasse in terms of fuel oil will be: 3.12/5.95 =0.524 kg-CO₂/kg-bagasse. As 1 kg of bagasse generates 2 kg of steam, the CO₂reduction of a 100t/h steam boiler will be112,660 ton/year for an annual operation of4,300 hours, as follows. 0.524 × 100/2 = 26.2 t-CO₂/h, 26.2 × 4,300 =112,660 t-CO₂/year. This revised version was published online in August 2006 with corrections to the Cover Date.     

Unemployment effects of climate policy

This paper models the unemployment effects of restrictions on greenhouse gas emissions, embodying two of the most significant types of short-term economic imperfections that generate unemployment: sectoral rigidities in labor mobility and sectoral rigidities in wage adjustments. A labor policy is also analyzed that would reduce the direct negative economic effects of the emissions restrictions.The politics of limiting greenhouse gas emissions are often dominated by relatively short-term considerations. Yet the current economic modeling of emissions limitations does not embody economic features that are likely to be particularly important in the short term, in particular, the politically sensitive unemployment rate. Moreover, only a few of these studies also consider policies that would offset the negative direct economic effects of emissions restrictions. For plausible estimates of the parameters, the model shows that, with the labor market imperfections, if there were no offsetting policies, the reductions in GNP in the U.S. in the first 10 years after emissions restrictions were imposed would be as much as 4%. However, if there were two policies, instead of just one: a counteracting labor market policy, as well as the emissions restrictions, the negative direct economic effects could be completely eliminated.     

Integrated strategies to reduce vulnerability and advance adaptation,mitigation, and sustainable development

Determinants of adaptive and mitigative capacities (e.g., availability of technological options, and access to economic resources, social capital and human capital) largely overlap. Several factors underlying or related to these determinants are themselves indicators of sustainable development (e.g., per capita income; and various public health, education and research indices). Moreover, climate change could exacerbate existing climate-sensitive hurdles to sustainable development (e.g., hunger, malaria, water shortage, coastal flooding and threats to biodiversity) faced specifically by many developing countries. Based on these commonalities, the paper identifies integrated approaches to formulating strategies and measures to concurrently advance adaptation, mitigation and sustainable development. These approaches range from broadly moving sustainable development forward (by developing and/or nurturing institutions, policies and infrastructure to stimulate economic development, technological change, human and social capital, and reducing specific barriers to sustainable development) to reducing vulnerabilities to urgent climate-sensitive risks that hinder sustainable development and would worsen with climate change. The resulting sustainable economic development would also help reduce birth rates, which could mitigate climate change and reduce the population exposed to climate change and climate-sensitive risks, thereby reducing impacts, and the demand for adaptation. The paper also offers a portfolio of pro-active strategies and measures consistent with the above approaches, including example measures that would simultaneously reduce pressures on biodiversity, hunger, and carbon sinks. Finally it addresses some common misconceptions that could hamper fuller integration of adaptation and mitigation, including the notions that adaptation may be unsuitable for natural systems, and mitigation should necessarily have primacy over adaptation.

Tropical deforestation in a future international climate policy regime—lessons from the Brazilian Amazon

The possibility of adopting national targets for carbon dioxide (CO₂) emissions from tropical deforestation in a future international climate treaty has received increasing attention recently. This attention has been prompted by proposals to this end and more intensified talks on possible commitments for developing countries beyond the United Nations Framework Convention on Climate Change Kyoto Protocol. We analyze four main scientific and political challenges associated with national targets for emissions from tropical deforestation: (1) reducing the uncertainties in emission inventories, (2) preserving the environmental integrity of the treaty, (3) promoting political acceptance and participation in the regime, and (4) providing economic incentives for reduced deforestation. We draw the following conclusions. (1) Although there are large uncertainties in carbon flux from deforestation, these are in the same range as for other emissions included in the current Kyoto protocol (i.e., non-CO₂ GHGs), and they can be reduced. However, for forest degradation processes the uncertainties are larger. A large challenge lies in building competence and institutions for monitoring the full spectrum of land use changes in developing countries. (2 and 3) Setting targets for deforestation is difficult, and uncertainties in future emissions imply a risk of creating ‘tropical hot air’. However, there are proposals that may sufficiently deal with this, and these proposals may also have the advantage of making the targets more attractive, politically speaking. Moreover, we conclude that while a full carbon accounting system will likely be politically unacceptable for tropical countries, the current carbon accounting system should be broadened to include forest degradation in order to safeguard environmental integrity. (4) Doubts can be cast over the possible effect a climate regime alone will have on deforestation rates, though little thorough analysis of this issue has been made.