How Green Public Procurement Contributes to Sustainable Development in China: Evidence from the IISD Green Public Procurement Model

The People's Republic of China spent more than CNY 1.6 trillion (USD 252 billion) on procurement in 2013, accounting for 11.7 per cent of all national spending (Ministry of Finance of the People's Republic of China, 2014). In light of these numbers, the potential environmental, social and economic multipliers of greening government purchases become evident. The benefits of a comprehensive and efficient green public procurement (GPP) policy are not limited to the green products and services the public sector buys, but will have a ripple effect that encourages green consumption nationwide. The significant purchasing power of the government will provide the much-needed incentives in order for businesses to invest and innovate in green products and services to meet the government's guaranteed long-term and high-volume demand. Additionally, GPP is in line with China's national plans to pioneer "eco-civilisation" and with the upcoming 13th Five-Year Plan (FYP), which underlines the importance of GPP.This paper is the second and final component of IISD's contribution to greening public procurement in China. Our discussion paper Green Public Procurement in China: Quantifying the Benefits, published in April 2015, analyzed China's GPP landscape, taking a closer look at current practices, actors at different levels of government and the underlying legal framework. In addition, the paper introduced the IISD GPP Model, discussing its potential for quantifying and communicating the benefits of GPP, while providing a high-level overview of the modelling approach used and of the scope of the model envisioned. Building on the results of the IISD GPP Model, consultations with stakeholders and an extensive literature review, this paper provides targeted recommendations addressing the development areas identified to improve GPP in China. The recommendations follow a multiphase approach offering more immediate solutions as well as more ambitious, larger-scale overhauls of the GPP framework for the long term. The results of the IISD GPP Model will be shared for the first time as part of this paper, making the case for green procurement through analyzing five product categories: air conditioners, lighting, cars, paper and cement. These categories were selected because they represent significant financial flows in procurement, have notable environmental impacts and domestic production, and have sufficient data available to facilitate their analysis. A detailed overview of the key elements of the modelling approach will be provided, in addition to an explanation of the model setup and the range of externalities monetised for each product category. Finally, we will look at how to use the model at the different levels of government as well as how its scope can be extended and customised in order to leverage its potential under a wider range of circumstances and areas of procurement

A Balanced Energy Plan for the Interior West

Describes a Balanced Energy Plan for the Interior West region of Arizona, New Mexico, Nevada, Utah, Colorado, Wyoming and Montana. Part of the Hewlett Foundation Energy Series

Cost-Effectiveness of Renewable Electricity Policies

We analyze policies to promote renewable sources of electricity. A renewable portfolio standard raises electricity prices and primarily reduces gas-fired generation. A “knee” of the cost curve exists between 15% and 20% goals for 2020 in our central case, and higher natural gas prices lower the cost of greater reliance on renewables. A renewable energy production tax credit lowers electricity price at the expense of taxpayers and thus limits its effectiveness in reducing carbon emissions; it also is less costeffective at increasing renewables than a portfolio standard. Neither policy is as cost-effective as a capand-trade policy for achieving carbon emissions reductions.renewable energy, electricity, renewable portfolio standard, carbon dioxide

Multi-Criteria Optimal Planning for Energy Policies in CLP

In the policy making process a number of disparate and diverse issues such as economic development, environmental aspects, as well as the social acceptance of the policy, need to be considered. A single person might not have all the required expertises, and decision support systems featuring optimization components can help to assess policies. Leveraging on previous work on Strategic Environmental Assessment, we developed a fully-fledged system that is able to provide optimal plans with respect to a given objective, to perform multi-objective optimization and provide sets of Pareto optimal plans, and to visually compare them. Each plan is environmentally assessed and its footprint is evaluated. The heart of the system is an application developed in a popular Constraint Logic Programming system on the Reals sort. It has been equipped with a web service module that can be queried through standard interfaces, and an intuitive graphic user interface.Comment: Accepted at ICLP2014 Conference as Technical Communication, due to appear in Theory and Practice of Logic Programming (TPLP

Combining Policies for Renewable Energy: Is the Whole Less than the Sum of Its Parts?

Since the energy crisis in the 1970s and later the growing concern for climate change in the 1990s, policymakers at all levels of government and around the world have been enthusiastically supporting a wide range of incentive mechanisms for electricity from renewable energy sources (RES-E). Motivations range from energy security to environmental preservation to green jobs and innovation, and measures comprise an array of subsidies to mandates to emissions trading. But do these policies work together or at cross-purposes? To evaluate RES-E policies, one must understand how specific policy mechanisms interact with each other and under what conditions multiple policy levers are necessary. In this article, we review the recent environmental economics literature on the effectiveness of RES-E policies and the interactions between them, with a focus on the increasing use of tradable quotas for both emissions reduction and RES-E expansion.environment, technology, externality, policy, climate change, renewable energy

Cities and climate change: Strategic options for philanthropic support

Now, more than ever, cities are at the front lines of U.S. climate action. As national action stalls, there is still a daunting amount to be done in reducing human-generated climate emissions. Fortunately, this report comes in the wake of a groundswell of initiatives to engage on climate change by cities, countries, and states across the U.S. Several important and thorough reports on the types of mitigation actions cities can take have recently been released. We already have examples of cities taking significant leadership roles in reducing their own climate emissions, from New York and Boston to Austin, Boulder, and Los Angeles - yet U.S. climate emissions continue to rise, and cities have an outsized role to play. The purpose of this project is to review current U.S. city climate activities in order to identify areas where additional investment by foundations could help accelerate city action to reduce urban greenhouse gas emissions. The focus of the inquiry is on aggressive actions cities can take that significantly increase their “level of ambition” to achieve emissions reductions on an accelerated timetable. City strategies on climate adaptation are not encompassed in this project. [TRUNCATED

Compensation for Electricity Consumers Under a U.S. CO2 Emissions Cap

Policies to cap emissions of carbon dioxide (CO2) in the U.S. economy could pose significant costs on the electricity sector, which contributes roughly 40 percent of total CO2 emissions in the U.S. Using a detailed simulation model of the electricity sector, we evaluate alternative ways that emission allowances can be allocated. Most previous emissions trading programs have allocated the major portion of allowances for free to incumbent firms. In the electricity sector this approach would lead to changes in electricity price that vary by region primarily based primarily on whether prices are market-based or determined by cost-of-service regulation. Allocation to customers, which could be achieved by allocation to local distribution companies (retail utilities) would recover symmetry in the effect of free allocation and lead to signficiantly lower overall electricity prices. However, this form of compensation comes with an efficiency cost that will increase the overall cost of climate policy.emissions trading, allowance allocations, electricity, air pollution, auction, grandfathering, cost-effectiveness, greenhouse gases, climate change, global warming, carbon dioxide, asset value, compensation

Allowance Allocation in a CO2 Emissions Cap-and-Trade Program for the Electricity Sector in California

The regulation of greenhouse gas emissions from the electricity sector within a cap-and-trade system poses significant policy questions about how to allocate tradable emission allowances. Allocation conveys tremendous value and can have efficiency consequences. This research uses simulation modeling for the electricity sector to examine different approaches to allocation under a cap-and-trade program in California. The decision affects prices and other aspects of the electricity sector, as well as implications for the overall cost of climate policy. An important issue is the opportunity for emission reductions in California to be offset by emission increases in neighboring regions that supply electricity to the state. The amount of emission leakage (i.e. an increase in CO2 emissions outside of California as a result of the program) varies with the regulatory design of the program.cap-and-trade, electricity generation, electricity sector, emissions, regulation, governance, allocation, California

Tradable Rights to Emit Air Pollution

The use of cap-and-trade to regulate air pollution promises to achieve environmental goals at lower cost than traditional prescriptive approaches. Cap-and-trade has been applied to various air pollutants including sulfur dioxide, nitrogen oxides, and volatile organic compounds in the United States and carbon dioxide in the European Union. This corresponds to what is likely to become the most expensive environmental undertaking in history—the effort to reduce the heating of the planet. However, the efficacy of a cap-and-trade policy for carbon dioxide depends in large part on the design of the program. In addition to the level of the cap, the most important decision facing policymakers will be the initial allocation of emissions allowances. The method used to allocate tradable emissions allowances will have significant influence on the distributional impact and efficiency of the program.cap-and-trade, emission allowances, allocation, auction, grandfathering, climate change, global warming, carbon dioxide

Insurer Climate Risk Disclosure Survey: 2012 Findings and Recommendations

2012 was the warmest year on record in the Lower 48 states and the second most extreme weather year in U.S. history. This is not a coincidence. Extreme weather -- stronger, more damaging storms, unprecedented drought and heat in some regions and unprecedented rainfall and flooding in others -- are the predictable consequences of rising global temperatures.Eleven extreme weather events each caused at least a billion dollars in losses last year in the United States. A single event, Hurricane Sandy, caused more than $50 billion in economic losses. Insurance companies are on the hook for tens of billions of dollars in claims as a result of Sandy and other severe weather events. And American taxpayers are on the hook for tens of billions of dollars themselves, thanks to losses sustained by the National Flood Insurance Program as well as disaster relief spendingThis raises a fundamental question: Is the insurance industry prepared? Have insurers analyzed and measured their climate-related risk? Are they planning for life in a warmer world? These should be essential questions for insurance regulators in all 50 states to be asking, and some are