Transport in developing countries and climate policy: suggestions for a Copenhagen agreement and beyond

Also in the global South, transport already significantly contributes to climate change and has high growth rates. Further rapid motorisation of countries in Asia and Latin America could counteract any climate efforts and aggravate problems of noxious emissions, noise and congestion. This Paper aims at connecting the need for transport actions in developing countries to the international negotiations on a post-2012 climate change agreement. It outlines the decisions to be taken in Copenhagen and the preparations to adequately implement these decisions from 2013. Arguing, that a sustainable transport approach needs to set up comprehensive policy packages, the paper assesses the substance of current climate negotiations against the fit to sustainable transport. It concludes that the transport sector's importance should be highlighted and a significant contribution to mitigation efforts required. Combining the two perspectives lead to several concrete suggestions: Existing elements of the carbon market should be improved (e.g. discounting), but an upscale of the carbon market would not be an appropriate solution. Due to a lack of additionality, offsetting industrialised countries' targets would finally undermine the overall success of the climate agreement. Instead, a mitigation fund should be established under the UNFCCC and financed by industrialised countries. This fund should explicitly enable developing countries to implement national sustainable development transport and mobility policies as well as local projects. While industrialized countries would set up target achievement plans, developing countries should outline low carbon development strategies, including a section on transport policy. -- Die rasante Motorisierung Asiens und Lateinamerikas könnte die Klimaschutzerfolge konterkarieren. Bis 2030, so Prognosen der IEA, werden im Verkehrssektor 2,5 Gigatonnen CO2 mehr emitiert als heute; 80 Prozent davon in den Ländern des Südens. Das Papier soll die Notwendigkeit verdeutlichen, dass in den Entwicklungsländern im Verkehrssektor heute schon Maßnahmen ergriffen werden müssen und die Klimaverhandlungen für die Post-Kyoto-Phase eine wichtige Gelegenheit sind. Die Ansätze in den gegenwärtigen Klimaverhandlungen werden den Anforderungen einer nachhaltigen Verkehrspolitik gegenübergestellt und dafür plädiert, den Stellenwert des Verkehrssektors zu den Klimaschutzanstrengungen zu erhöhen. Dafür werden mehrere konkrete Vorschläge gemacht: So sollten vorhandene Elemente des Emissionshandels verbessert werden, die eigentlich angemessene Lösung sei jedoch ein neues Instrument: Um die Entwicklungsländer in die Lage zu versetzen Maßnahmen in der Verkehrspolitik umzusetzen und Politiken und Projekte vor Ort zu fördern, sollte ein von den Industrieländern finanzierter Klimaschutzfonds unter dem UN-Klimaregime eingerichtet werden. In Strategien für eine kohlenstoffarme Entwicklung sind dabei die Politikinstrumente einer nachhaltigen Verkehrsentwicklung zu integrieren.

Testing Global Sectoral Industry Approaches to Address Climate Change: Interim report of a CEPS Task Force. CEPS Task Force Reports, 4 December 2007

Successful global sectoral industry approaches could become an effective means of broadening the range of contributions by all parties to greenhouse gas reductions, and of addressing competitiveness concerns in trade-exposed industries. This report puts these two hypotheses to the test and identifies the key requirements for global sectoral industry approaches to work. The analysis is based on ongoing work within a CEPS multi-stakeholder Task Force on “Sectoral industry approaches to address climate change”, supported by the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development. The Final Report will be published in spring 2008

Making the most of the G8+5 Climate Change Process: Accelerating Structural Change and Technology Diffusion on a Global Scale. CEPS Task Force Reports, 5 June 2008

Under the chairmanship of Gunnar Still, Senior Vice President and Head of Environment Division at ThyssenKrupp, CEPS organized a Task Force to explore possible initiatives within the context of the G8+5 dialogue on tackling climate change. This report identifies a number of concrete measures that could reduce greenhouse gas (GHG) emissions, while at the same time stimulating structural change and technology development and diffusion. It calls for supporting action-based approaches, which are essential to achieve the necessary reductions in GHG emissions, inform the post-2012 negotiations and address the most urgent issues such as surging energy demand and the need for clean energy technologies in emerging economies. An action-based approach can be regarded as a way of integrating targets and timetables, as they are agreed, with consistent and comparable policies and measures. With a view to a long-term climate strategy, this report attempts to present a portfolio of actions that can be implemented and accelerated on a global scale – especially in the G8+5 countries and the EU, and could become a basis on which developed and developing countries can cooperate

Enhanced financial mechanisms for post 2012 mitigation

Despite the many calls to reform the CDM, its conceptual underpinnings are strong and it will most likely survive in the post-2012 climate regime. Some modifications may be considered in the short term to strengthen the effectiveness and transparency of the mechanism without modifying the Marrakesh Accords. In the medium term substantially increased mitigation efforts in developing countries may require a combination of three possible financial mechanisms: the current activity-based CDM albeit improved, a second market mechanism that would seek to improve the long term emission trends of developing countries by promoting broad based emission reduction programs primarily in the private sector, and a third financial mechanism outside of the market which would be an incentive for the adoption of policy changes leading to a low carbon path, but where emission reductions would not be used as international offsets.Environmental Economics&Policies,Carbon Policy and Trading,Montreal Protocol,Energy and Environment,Environment and Energy Efficiency

The Trade and Climate Change Joint Agenda. CEPS Working Document No. 295/June 2008

Climate change, international trade, investment and technology transfer are all issues that have intersected in diverse institutional contexts and at several levels of governmental activity to form a new joint agenda. The purpose of this paper is to advance understanding of this joint agenda by identifying the specific issues that have emerged, the policies that have been adopted, especially in the EU and US, and the options that are available for further policy-making

Differentiation and Dynamics of Competitiveness Impacts from the EU ETS

We summarise the main factors that differentiate impacts of the EU ETS on profitability and market share. By examining and sampling a range of sectors, we present some simple metrics and indicators to help judge the nature of potential impacts. We also consider briefly the mitigation response to these impacts by sectors, and how they may evolve over time. The broad conclusion confirms the aggregate findings presented in the existing literature - more participating sectors are likely to profit under the current ETS structure out to 2012 at the cost of a modest loss of market share, but this may not hold for individual companies and regions. The period 2008-12 can assist technology investments and diversification, providing the continuation and basic principles of the EU ETS post-2012 is quickly defined and incentives are in place for sectors to pursue this

Low-Carbon Technologies in the Post-Bali Period: Accelerating their Development and Deployment. CEPS ECP Report No. 4, 4 December 2007

This report analyses the very broad issue of technology development, demonstration and diffusion with a view to identifying the key elements of a complementary global technology track in the post-2012 framework. It identifies a number of immediate and concrete steps that can be taken to provide content and a structure for such a track. The report features three sections dealing with innovation and technology, investment in developing countries and investment and finance, followed by an analysis of the various initiatives being taken on technology both within and outside the United Nations Framework Convention on Climate Change (UNFCCC). A final section presents ideas for the way forward followed by brief concluding remarks

Policy Coherence for Development in the EU Council: Strategies for the Way Forward. CEPS Paperbacks. July 2006

In recognition of the fact that EU policies in non-development areas, such as trade, energy and migration, can also profoundly affect the poor in developing countries, the EU has affirmed ‘Policy Coherence for Development’ as an important principle for achieving more effective development cooperation. This new CEPS study analyses whether policy-making processes in the EU Council provide sufficient scope for development inputs to be made in 12 key policy areas: trade, environment, climate change, security, agriculture, fisheries, social dimension of globalisation, employment and decent work, migration, research and innovation, information society, transport and energy. The study also includes coverage of the policy-making processes in the European Commission as it initiates and defends most of the policies being discussed in the EU Council. Its findings point to the highly segregated character of EU policy-making and provide interesting insights into the internal challenges the EU will need to address in order to fulfil its goal of achieving greater coherency in its (external) policy-making. To strengthen the potential for PCD the study suggests six proposals for structural reform as well as a set of specific recommendations

The Future of ETS and CDM in a post-Kyoto World.

This paper discusses the developments in the markets for CO2 emissions rights since the Kyoto Protocol has been signed. The different emission trading schemes dominated by the ETS of the European Union and the Clean Development mechanism are surveyed. These schemes will need to be incorporated in a Post-Kyoto multilateral agreement. Based on a small model the incentives among developing and developed countries for continuing or transforming the Clean Development Mechanism in the light of a stricter world wide emission control are discussed.