Monday, 8 December 2014

COP20: More Thoughts



Despite computer problems I have now read what is available in the ADP section up to the item 3 decision of December 8th. Obviously having read more I now have more thoughts on what I've read. However I should start by pointing out that my objective here is to be constructive rather then critical or insulting.



As I've said throughout a replacement to the Kyoto Protocol (KP) needs to move away from the structure of a binary, top down agreement. That is because the KP simply failed by reducing ambition amongst Annex I Parties and forcing Annex II Parties to avoid actions that would increase their development. Unfortunately there are still a small number of parties who want to continue with the binary approach of the KP.



A prime example of such a nation is Nepal. In their recent submission on behalf of the Least Developed Countries (LDC's) they proposed a binary agreement with nations again divided into annexes based on their levels of economic development. Within both annexes it would then fall to national governments to impose mitigation actions on their economies in order to meet emission targets. At just 9 pages this approach is overly simplistic and I think really serves to highlight the knowledge gap between parties. Nepal is primarily a non-industrialised country that throughout its history has been centrally run either by an absolute Monarchy or in the past six years a Maoist inspired government. In short it is rather reminiscent of Chairman Mao's peasant revolution with little to no private sector to speak of.



The problem is that the majority of nations that this agreement is supposed to cover don't operate like that. Instead they are lassiez faire type economies in which the government simply sets out rules and guidelines with the private sector then expected to provide almost everything within those rules. A somewhat relevant example of this would be Alevo - a Swiss company that has just set up a factory in North Carolina, US to make grid-scale batteries (30MW+) for the power grid in Guandong, China. Although this is an important development in terms of making grid-scale power generation more stable and therefore renewables more viable I doubt either the Governor of North Carolina or the President of US have heard much about the factory opening.



Therefore if these countries were to adopt the Nepalese proposal they would immediately have to completely change their economic and political structures. That is simply not going to happen. As such any agreement will need to include provisions to allow for the bottom up development that is common in nations that rely in the private sector. After all in command-type economies such as Nepal the government takes on the role of the private sector meaning that it's much easier for them to sign up to a more complicated agreement but then simply ignore the more complex provisions that don't apply to them.



Another nation that has long supported a binary approach has been Bolivia. However in their most recent submission although they still support the top down approach even they have abandoned the notion of dividing nations into annexes. Instead they have proposed establishing a global carbon budget which sets a maximum limit of the amount of GreenHouse Gases (GHG's) that can be pumped into the atmosphere every year without causing climate change. Each nation is then assigned a share of that carbon budget based on criteria such as their historical emissions, their ecological footprint, state of development and capabilities. The governments of nations who were in excess of their budgetary share would then presumably be immediately expected to shut down sections of their economies that were causing them to exceed their national allowance.



I must say that I do not support this approach because it goes against core economic policies of many nations and seems nightmarishly complicated. For example how would you begin calculating a nations historical emissions from a time before such things were measured and in a globalised economy does cattle grazed in Argentina for sale as beef in the US count as part of Argentina's ecological footprint or the US'? Also while I accept that I may have misunderstood it the method of working out each nation's distribution index seems fundamentally flawed. For example by using the suggested denominator of zero I discovered that every nations share of the carbon budget was zero.



However I don't think that Bolivia's approach to the problem is not without merit because the establishment of a global carbon budget would provide a useful advisory tool in the ex ante process to assess how successful the sum total of all the nationally determined contributions are likely to be.

17:25 on 8/12/14 (UK date). 

Edited at around 23:00 on 8/12/14 (UK date) to add;

I have now begun reading the item 3 decision and I am quite alarmed that Bolivia's carbon budget approach has been included in paragraph 13.2(b) as an alternative to the long term development pathways that the NDC approach provides.

As I've said above I do consider the idea of a global carbon budget to be a valid and important one and I'm actually surprised that more work hasn't been done in this area. However I see it as an advisory and guidance tool that can be used as a way to increase ambition rather then an element of the agreement itself. 

The reason why I find its inclusion here so alarming is that the Bolivia's technical work on the issue is simply not up to standard and no-one else has done any work on the area. This means that the regulatory framework to support it is simply not strong enough meaning that it is ripe for abuse. Therefore including it as an alternative creates a loophole that threatens to undermine the agreement. A prime example of how this could work would be for a nation like the United Arab Emirates (UAE) to choose the carbon budget approach only for them to claim that because they have only been a nation since 1971 they have no responsibility for historical emissions and therefore can continue doing exactly as they like.

Therefore as I've said before I think the less developed nations want to be a bit careful about certain states support for the binary approach.  After all the UAE has already made it quite clear that it won't be contributing to the Green Climate Fund (GCF) despite being the World's 19th richest economy with a median income of around USD44,000.

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