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Climate change: Commission welcomes EP recommendations on future EU climate policy, 05. February 2009
Strassburg (EC) - The European Commission welcomes the report adopted by the European Parliament today setting out recommendations for future EU policy on climate change. The approval of the final report from the Temporary Committee on Climate Change shows the Parliament's strong support for ambitious EU action to address the climate challenge. Its recommendations are in line with the Commission's thinking set out in last week's Communication on a new global climate agreement.
"This very comprehensive report further demonstrates the European Parliament's clear commitment both to an ambitious EU climate policy and to contributing actively to its development," Environment Commissioner Stavros Dimas said. "This commonality of views between the institutions is essential to maintain Europe's leadership in the international negotiations on a new global climate deal. We need to work together and mobilise all our resources to ensure a strong and effective agreement is reached at the Copenhagen climate conference in December."
Commissioner Dimas added: "As this report brings the Temporary Committee to an end, I would like to take the opportunity to congratulate the committee on its work, particularly Mr Sacconi, its chairman, and Mr Florenz, rapporteur of the report." The report highlights that tackling climate change will create new jobs and industries, reduce Europe's dependency on imports of fossil fuels and bring social benefits for citizens. This reflects the philosophy behind the integrated energy and climate change strategy proposed by the Commission and endorsed by EU leaders. The Commission welcomes the report’s support for the proposal that developed countries as a group should commit to cutting greenhouse gas emissions by 25-40% from 1990 levels by 2020 and by at least 80% by 2050.
These objectives are fully in line with the Commission's thinking, as presented in last week's Communication on the Copenhagen agreement (IP/09/141), and with the conclusions of the October 2008 Environment Council. The EU has set an example by putting in place the measures to cut its emissions by 20% (IP/08/1998) and by committing to increase this reduction to 30% if other developed countries commit to comparable cuts in Copenhagen.
Commissioner Dimas said: "I am very pleased to see the explicit recognition throughout the report that the financial and economic crisis is no reason to postpone action against climate change. Delay will only make it harder and more costly to reduce emissions later. Instead, we must see the stimulus that our economies need now as an opportunity to accelerate investment in the low-carbon industries and 'green' jobs of tomorrow. The Commission has seized this opportunity in its European Economic Recovery Plan which focuses on smart investments to promote sustainable prosperity."
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Climate change: Commission sets out proposals for global pact on climate change at Copenhagen, 28. January 2009
Brussels (EU) - The European Commission today set out its proposals for a comprehensive and ambitious new global agreement to tackle climate change and how it could be financed. The new pact is due to be concluded at the Copenhagen UN climate conference in December. In order to keep temperature increase below 2°C, developing countries will require substantially higher funding from the developed world and multilateral institutions to help them shoulder their contribution to addressing climate change. The Commission’s proposals include the creation of an OECD-wide carbon market by 2015 and of innovative international funding sources based on countries' emissions and ability to pay.
Environment Commissioner Stavros Dimas said: “Tackling the causes and impacts of climate change will require significant private and public investment over coming decades, though these investments will cost far less than letting climate change continue its destructive course. The European Economic Recovery Plan and similar measures being taken around the world to address the economic crisis are a chance to advance the low-carbon investment needed and stimulate growth, innovation and job creation at the same time. However, further financing solutions will be vital for getting agreement in Copenhagen. Today’s Communication makes a key contribution by putting forward a comprehensive set of proposals for scaling up finance and investment.”
Copenhagen goal
The EU’s goal is to limit global warming to less than 2°C above the pre-industrial temperature as there is strong scientific evidence that climate change will become dangerous beyond this point. The Copenhagen deal should both set global goals to reduce emissions and provide the basis for strengthening countries’ ability to adapt to climate change. The Communication offers concrete proposals to reach these goals.
Targets and actions
To stay below 2°C, global emissions need to peak before 2020 and then be cut to less than 50% of 1990 levels by 2050. This will require action by both developed and developing countries. Developed countries must take the lead and cut their collective emissions by 30% of 1990 levels by 2020. The EU has set an example by committing to reduce emissions by 30% if other developed countries commit to comparable cuts and has already put in place the measures to cut its own emissions by 20% (IP/08/1998). The Communication proposes specific parameters to ensure national targets entail a comparable level of effort. All OECD countries and EU Member States, EU candidate countries and potential candidates should take on emission targets.
Developing countries, except the poorest ones, should limit growth in their collective emissions to 15-30% below business as usual levels by 2020. This should include a rapid decrease in emissions from tropical deforestation (IP/08/1543). These countries should commit to adopting low-carbon development strategies covering all key emitting sectors by 2011. A new international mechanism will assess these strategies and match proposed actions with appropriate external support.
Financing low-carbon development
To reduce emissions, global net additional investment may need to rise to around €175 billion per year in 2020 according to independent estimates. More than half of this will be needed in developing countries. Up to 2020 the bulk of actions in these countries will have low costs - or even benefits - and should be financed domestically. International financial support for actions exceeding a country’s domestic capabilities should come from sources including public funds and international carbon crediting mechanisms. The Copenhagen agreement should also provide a framework to help countries adapt to inevitable climate change. All developed and developing countries should be required to elaborate national adaptation strategies. Support for adaptation should be provided to the most vulnerable Least Developed Countries and small island developing states. The EU should explore potential innovative sources of international funding based on the polluter pays principle and the ability to pay. EU Member States could also use part of their future revenues from auctioning allowances under the EU Emissions Trading System to support developing countries.
Global carbon market
The EU should seek to build, by 2015, an OECD-wide carbon market by linking the EU ETS with other comparable cap-and-trade systems in order to mitigate and to raise funds to fight climate change. The market should be expanded to include major emerging economies by 2020 with a view to building a global carbon market. The Kyoto Protocol’s Clean Development Mechanism should be reformed. For advanced developing countries and highly competitive economic sectors, the CDM should be gradually replaced by a sectoral crediting mechanism and cap-and-trade systems.
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Preparation Environment Council, 4-5 December 2008, 02. December 2008
Brussels (EU) - The last formal Environment Council under the French Presidency will be held on 4-5 December in Brussels. Environment Commissioner Stavros Dimas will represent the European Commission. The Presidency will update the Council on the progress of the climate and energy package and the proposal on CO2 emissions from new cars. The Council is expected to adopt conclusions on deforestation, mercury, and genetically modified organisms (GMOs), and will hold policy debates on industrial emissions and sustainable consumption and production.
Climate and energy package
The Presidency will inform the Council on the progress of the climate change and energy proposals presented by the Commission on 23 January. It will present a progress report on the state of play of the Commission's proposals (see IP/08/80, MEMO/08/34, MEMO/08/35, MEMO/08/36, MEMO/08/33) in the Council and European Parliament. The report will cover the Commission proposals on the revision of the Emissions Trading Scheme (ETS), effort sharing, the scope of carbon capture and storage (CCS), and renewable energy targets.
CO2 emissions from cars
The Presidency will also present a progress report on the Commission's proposal for a regulation to reduce CO2 emissions from new cars (see IP/07/1965) presented by the Commission in December 2007. The report will focus on parameters for encouraging manufacturers to reduce the weight of cars, sharing the burden of reducing CO2 emissions between manufacturers, the penalties to be imposed on manufacturers for exceeding emission objectives, how the revenue from the penalties will be allocated, the starting year of the legislation and the setting of long-term objectives.
Deforestation
The Council will adopt conclusions on the Communication to tackle global deforestation and forest degradation presented by the Commission in October (see IP/08/1543). In the context of the international negotiations on the post-2012 climate change agreement, the Commission is proposing the objective of halting global forest cover loss by 2030 at the latest and reducing gross tropical deforestation by at least 50% by 2020.
The Communication proposes the development of a Global Forest Carbon Mechanism through which developing countries would be rewarded for emissions reductions achieved by taking action to reduce deforestation and forest degradation. It also proposes a pilot phase to test the inclusion of 'deforestation credits' in carbon markets.
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Andris Piebalgs, Speech at the Euro case annual conference "How can Europe meet its 2020 renewables target?" 03 November 2008
London (EU) - Good morning and thank you for this chance to set the scene for today's conference and recommend to you the "climate-energy" package proposed by the Commission earlier this year. It is a package that I believe is bold and ambitious, reasonable and balanced – and today I will expand on why this is the case.
Where will the RES come from?
In January 2008 the Commission proposed a package of Directives that would implement its "20-20-20" targets: 20% renewable energy, 20% greenhouse gas emissions reductions, and 20% improvement in energy efficiency – all to be achieved in 2020. The Commission's analysis showed that these 20% targets are feasible on all fronts. But I'm going to focus on the renewable energy target. I must also add that, as part of the 20% renewable energy target, there is a 10% target for renewable energy in transport: this had already been agreed by the EU's Heads of Government. Clearly, the expansion of renewable energy will have to accelerate significantly across Europe, and not least in the UK. But it can be done.
Our analysis suggests how Europe might get there. We estimate that as much as 34% of electricity will be produced from renewable energy sources, of which 12% will probably come from wind. We will see strong growth from Combined Heat and Power installations using biomass. Solar, as we will hear later, will play its role – and we expect the costs of solar energy to decline by 50% by 2020[1]. Renewables in the heating sector could double to around 18%, using more biomass, efficient CHP and household heating. Renewables in the transport sector could also expand quite significantly by 2020, using both biofuels and electricity in vehicles. The technology-specific sessions later today will explore the prospects of these individual technologies and how they will contribute economically, as well as environmentally, towards reaching the renewables target.
Country examples
My job is not to tell the UK how to meet its target. But I would like to use the opportunity today to tell you some of the good things we see in other Member States.
Spain
We hear about the variability of wind energy. Well, wind electricity in Spain provides about 10% of electricity on an average day, and on 18 April this year (a Friday – not a weekend) the contribution of wind reached 32% of Spain's power needs. Spain has managed to integrate wind energy into its network through a better grid management strategy (including forecasting) and investment in equipment. Spain is also pioneering the use of solar thermal power generation at the Abengoa plant near Seville.
France
France has a tidal energy project at Rance that has been supplying renewable electricity into the French national grid since 1967. Although modest in size, at 500 GWh a year – it does have the virtue of actually existing. Furthermore, it produces electricity at a cost of approximately 12 Euro-cents per KWh. I should mention here, that I recently visited the Severn Estuary to learn for myself what options were being examined for harnessing tidal power here in the UK.
Portugal
Portugal too wants to invest more in marine energy, and has announced plans for 1 GW of capacity to be put in place within the next decade. Last September, Portugal inaugurated the world's first "wave farm", consisting of three wave energy converters, developed by the Scottish company Pelamis Wave Power. This "wave farm" has an installed capacity of 2.25MW, enough to meet the average electricity demand of more than 1,500 Portuguese homes. A second phase of the project is now planned to increase the installed capacity from 2.25MW to 21MW using a further 25 Pelamis machines.
Denmark
Let us not forget that one of the ways of helping to meet the renewable energy targets is to reduce total energy use – in which case, the same amount of renewable energy production makes a higher proportion of the total. For example, about 75% of Denmark’s district heating is produced in combined heat and power plants that generate both heat and electricity simultaneously, and 40% of this is without any CO2 emissions at all thanks mainly to the use of biomass. Basically, this CHP technology raises a 40% rate of efficiency to 90%, and so less fossil fuel is used and less CO2 produced. This illustrates nicely how the different targets (RES, GHG and energy-efficiency) are all linked.
Latvia
Finally, a word about "the country I know best". I give this example because sometimes options are sitting there waiting to be discovered. Latvia has enormous under-exploited biomass potential. About 55% of the surface area of the country is covered by forests. A recent study presented to me suggests that between 33% and 60% of Latvia's total energy consumption could potentially be met by indigenous biomass. Coupled with hydro-power, this suggests that Latvia could potentially be almost carbon-free for its power and heating needs.
The Directive
Following extensive discussions with stakeholders, we came forward with the legislative package in January 2008. Here, we strived to address all the problems that the renewable energy sector faces today:
First, there needs to be a stable policy regime: legally binding targets for each Member State would be fixed – differentiated according to their specific circumstances. These targets would set the goals. We also require Member States to prepare "National Action Plans" which spell out how they will reach the targets: we don't prescribe sectoral shares for electricity, or heating and cooling, but Member States will have to assess and determine for themselves where the growth will come from. They will also have to explain what the shares will be and what instruments will be used to ensure the targets are reached. In the meantime, the Directive sets an "indicative" trajectory that Member States will be expected to meet in order to show that they are "on track".
Second, there is need for flexibility in order to reach the targets in a cost-effective way. So, in addition to the flexibility of setting their own sectoral targets, Member States are free to decide on the instruments and measures to be used: it could be the on-going use of obligations on suppliers (such as with biofuels today), renewable energy obligations, or so-called "ROCs" in the UK context – in the electricity sector – perhaps together with feed in tariffs for novel or small scale technologies. It could include more support for household biomass heating or solar hot water systems... these are ideas that are being aired in the UK. Flexibility is also allowed between Member States. Member States may choose to undertake collaborative bilateral or multilateral projects, or transfer an over-achievement by one Member State to compensate for an under-achievement by another. All these options for flexibility lead to greater cost-effectiveness in meeting the targets.
We also modify the existing regime for electricity to ensure that electricity imported from third countries can count towards Member States' renewable energy targets: so Member States can invest in cheaper renewable energy sources within the EU and in neighbouring countries... helping to build biomass power plants in Albania or the Ukraine, for example, or solar plants in north Africa... These can be much more profitable investments, and so both parties benefit: we get cheaper renewable energy to count towards the target; they get new sustainable energy infrastructure.
Third, improvements need to be made to the administrative and planning regimes. As Commissioner I have found that there is not one Member State of the 27 where people are satisfied with the planning regime for renewable energy. There is not one Member State out of 27 where the administrative arrangements and procedures could not be simpler and clearer. The Directive aims to tackle this, and in so doing, have a direct impact on reducing the costs industry faces in developing renewables.
Fourth, we need to focus more attention on electricity grid access for renewable electricity: we already have a legal framework for this, but it doesn't appear to be strong enough, or its implementation adequate enough. Green electricity is going to have to grow substantially in order for us to reach our targets, and any aversion to decentralised or distributed generation, or concerns about intermittency, have to be overcome – as they HAVE been overcome in some countries (I already mentioned Spain).
Finally, given the wide debate on biofuels, our Proposal establishes tough but effective criteria to ensure that the biofuels used in Europe generate real greenhouse gas and other benefits – and indeed, lead the world in establishing strict criteria for biofuels sustainability.
So this is our Proposal. There are a range of obstacles facing the development of renewable energy in all Member States, and we have tried to address each of them. Since we published the proposed law in January, it has been working its way through the European legislative process. Discussions are now intensifying between the EU's 27 Energy Ministers in Council and Members of the European Parliament. Throughout all of this, I have continued to meet with Ministers myself – including UK Ministers John Hutton and Ed Miliband – to hear their concerns and to try and help address them.
We very much hope that the Council and European Parliament will agree this new framework by the end of this year.
As already mentioned, the renewables Directive is just part of package. Our efforts to improve the Emissions Trading System and to cut greenhouse gas emissions by 20% will clearly work in tandem.
Improving energy efficiency is still the most cost-effective means of reducing emissions – we already do a lot in this area – emissions standards for cars (currently being strengthened), labelling regimes, eco-design minimum efficiency standards, and energy efficiency codes for buildings. Action is being taken on all these fronts and will be strengthened in the coming year. In a matter of days, the Commission will publish its second Strategic Energy Review together with our plans for revising and improving key elements of our energy efficiency legislative framework.
So the Commission believes it has put forward a coherent package that will help all of us in Europe meet our energy and climate change goals – and importantly, help persuade other regions of the world to act.
Costs
Let me now touch on the economic aspects of the energy and climate package and of the renewables Proposal in particular. To begin with, I should note that our analysis of the package suggests that the short term net financial and economic costs of the package will be very modest. There is clearly a direct cost of the policy, but it is relatively minor, and we believe that there is a clear medium-term gain.
For the UK, we estimate the costs as being up to about 0.41% of GDP, or a little under £1 billion a year by 2020. This compares favourably with the billions of pounds used in the UK's banking rescue package. Even compared with the normal "business as usual" energy investments that are needed to replace aging power plants and infrastructure, the quantities are relatively small and the overall gains clearly significant and worthwhile.
Economic crisis
All of which brings me to my final point: there are those who are saying that we can no longer afford such a package.
In response, I would say that there are a range of safeguards already in the package to address the issues: energy intensive industries and internationally exposed sectors can be protected - we have a framework for that. The auction revenues raised by auctioning in the Emissions Trading Scheme will provide a huge source of revenues that governments can use to soften the economic burdens. I would even say that EU companies face less uncertainty in terms of carbon constraint that many of their competitors in the US, in Japan, or in other industrialised countries. But more importantly, it is time to realise that we don't have a long-term choice about developing a low carbon economy. Climate change, vulnerability to high fossil fuel prices and energy security mean that we must not let current market turmoil distract us.
Conclusion
So my message today is that we have a very clear vision of how the renewable energy targets will be met – and I welcome the UK Government's fleshing out of its own ideas in the Consultation document launched by the Prime Minister last June.
The sessions later this morning will explore the technologies that will help us meet our objectives and the ways in which the growth of renewable energy can be encouraged. These are important issues and I wish you a successful conference. Thank you for listening.
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Climate Change Conference - Speach from Stavros Dimas, 31 October 2008
Prague (EU) - International and EU Action
Climate change has been described by UN Secretary-General Ban Ki-moon as the "defining challenge of our age" and is a challenge that is not going to simply disappear. Our generation will be remembered as the first to be offered solid scientific evidence of climate change. It is now our responsibility to ensure that we are also remembered as the generation which took decisive action to mitigate it – preventing the worst consequences and minimising the impact of consequences we could not avoid.
Some might think that we would do better to focus our attention on the financial crisis. Vigorous action is of course needed there too but we must not repeat the mistakes of the past. The current financial crisis is largely a story of warnings unheeded or dismissed. Being late in responding to climate change would be even more devastating – and far more costly.
The European Union has a clear vision for leadership on international action to address climate change, based on the recommendations of the Intergovernmental Panel on Climate Change. The international community must act now to limit the increase in global temperature to no more than 2 degrees Celsius above pre-industrial levels. Next year's meeting of the UNFCCC in Copenhagen must reach an agreement to put the world on a path to that target.
The future international agreement will need to build upon the Kyoto Protocol. Kyoto was the first step, but we must now change gear: far more ambitious emissions reduction commitments are needed from developed countries, and emerging economies also need to take action.
European Union leaders agree that transforming Europe into a highly energy-efficient, low-emission economy will bring countless benefits. It will spur innovation and give us a head start on the road to a low-carbon future. That is why they committed to reducing EU emissions by at least 20% compared to 1990 levels by 2020, whatever the outcome of the negotiations on a global agreement, and by 30% as a contribution to a broader global effort. Quite simply, we know that this is in our interest: it's a win-win scenario that will make Europe a stronger global player.
Last January, the Commission proposed a major package of legislation to implement these climate and renewable energy targets. I am confident that the hard work of the Parliament and the Council of Ministers, with the support of the Commission, will result in an agreement by the end of this year. Timing is important for the credibility of the EU's negotiating position in the lead up to Copenhagen. Europe must be able to show that it is able and willing to put in place the concrete actions that are needed to achieve ambitious emission reductions.
Let me highlight three aspects of the package that are of particular relevance for the international negotiations.
First of all, our Emissions Trading System. This is the EU's key tool for achieving emission reductions at least cost and we are convinced that the global carbon market must play a central role in a post-2012 climate agreement. In particular, this means reinforcing the role of the Clean Development Mechanism and innovative carbon market mechanisms.
Secondly, our energy policy. By boosting renewable energy, energy efficiency and carbon capture and storage, Europe is paving the way for the technologies the world will need to achieve deep emission cuts. The package will also reduce Europe's imports of oil and gas, increasing energy security while stimulating economic growth and job creation. It therefore strengthens Europe's competitiveness for the future.
Thirdly, the package is based on the principles of solidarity, cost effectiveness and fairness. With concrete suggestions tailored to the particular circumstances of different countries, we are putting into practice the UNFCCC principle of "common but differentiated responsibilities and respective capabilities." In the context of a new international climate agreement, this approach could serve as a model for a fair distribution of the effort among economically diverse countries.
By implementing concrete measures to implement our ambitious targets, the EU will be demonstrating its leadership in tackling climate change and demonstrating that a brake on emissions need not also mean a brake on growth. This leadership will be vital to rally support for an ambitious global agreement, just as it was to start the negotiating process in Bali last December.
This autumn, the international negotiations will move from the analytical phase into full negotiations.
Leadership needs to come first from developed countries, in the form of commitments to ambitious emission reduction targets after 2012. The EU contribution needs to be followed by comparable efforts from our partners. This is a challenge, but I am convinced that they will eventually commit to ambitious domestic climate action. This will also involve the United States. I can report that intense discussions are currently under way in both the Obama and the McCain camps, preparing positions for the new US Administration. I remain confident that the US will fully engage in the negotiating process and play their part in enabling a deal to be reached in Copenhagen.
At the same time, developing countries too need to set up ambitious national mitigation strategies, in line with their sustainable development objectives, and according to their capabilities. Recent scientific research shows that developing countries as a group would have to reduce their emissions by 15 to 30% below business as usual if we want to stay within the two degrees threshold. We will only succeed in the battle against climate change if we can persuade emerging economies to be part of a global effort that recognises their different responsibilities and roles. Major players such as China and India are gradually putting in place climate and energy policies. We need to encourage them further and support such moves, both bilaterally and multilaterally.
International finance must also respond to the climate challenge. That is one reason why the current debate about the use of auctioning revenues from the ETS is highly relevant for the international architecture of the coming agreement.
Ladies and gentlemen,
No one said the road to Copenhagen would be easy. But the agreement we all hope to reach in Copenhagen next year represents the last chance to bring climate change under control before it is too late. There is progress, but we need to step up the pace. With resolve, cooperation and imagination, we can conclude an agreement at the end of next year, delivering the ambitious global action that is needed.
I will finish by wishing you a successful and inspiring conference. I am looking forward to listening to the views of the coming speakers and I am sure that the conference will provide us with a strengthened sense of urgency to act on climate change, and help us seize the opportunities offered by this momentous challenge. Thank you.
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Community Independent Transaction Log, 16 October 2008
Brussels (EU) - Connection of the CITL and Member State registries with the UNFCCC International Transaction Log (ITL) has been completed on 16 October 2008.
The European Commission, Member States and the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) completed the live connection between the CITL, the UNFCCC International Transaction Log (ITL) and Member State registries on 16 October 2008. The CITL re-started processing transactions as planned on Thursday 16 October 2008, at 8:00 AM (CEST). Now all Member State registries are operational, with the exception of Romania which will remain offline for several more days in order to allocate allowances to its installations.
A comprehensive revision to the Commission Regulation on the standardised and secured system of registries for the EU Emissions Trading Scheme (EU ETS) has now been published. This revision, which revises the EU ETS registry architecture from 1 January 2012 onwards, will assure the independence of the EU ETS which will facilitate the inclusion of aviation activities from 2012 and the ability of the EU ETS to link to other emissions trading systems. It repeals and replaces the existing Registry Regulation no. 2216/2004/EC with effect from 1 January 2012.
The EU greenhouse gas Emissions Trading System covers around 10,500 installations across the 27 Member States of the European Union plus Iceland, Liechtenstein and Norway which are required annually to surrender emission allowances equal to their emissions in the previous year. It is the world's largest CO2 trading system and forms the cornerstone of the EU's strategy for meeting its emission reduction targets cost-effectively.
The Community Independent Transaction Log (CITL) records the issuance, transfer, cancellation, retirement and banking of allowances that take place in the registry.
It is mandatory for each Member State to have a national registry. The number of registries that have gone online can be seen from the following web site: CITL. These registries will ensure the accurate accounting of all units under the Kyoto Protocol plus the accurate accounting of allowances under the Community scheme for greenhouse gas emission allowance trading. Not only companies but also natural persons may open an account, anywhere in an EC registry.
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Emissions Trading: Commission to connect EU with UN carbon credit registry before December, 11.08.2008
Brussel (EU) - The European Commission, Member States and the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat have successfully completed all the testing required for connecting to the UN's international carbon credit registry. The EU's Community Independent Transaction Log (CITL) and Member State registries will be connected to the UN's International Transaction Log (ITL) before December 2008 at the latest. The link will mean carbon credits issued under the Clean Development Mechanism can be transferred to the registries of EU Member States.
Environment Commissioner Stavros Dimas said: "I welcome the successful outcome of the testing phase. This now paves the way for the transfer of credits from the Clean Development Mechanism into the EU registry system. Linking up with the UN's carbon credit registry will further strengthen Europe's leading role in the global carbon market."
Two systems working together
The EU's Community Independent Transaction Log (CITL) and the UN's International Transaction Log (ITL) are electronic accounting systems which keep track of emission allowances or carbon credits of companies participating in the carbon market. The CITL, which has been operational since 2005, is the central registry for tracking ownership of allowances in the EU Emissions Trading System (EU ETS). The International Transaction Log (ITL) keeps track of various types of UN credits from countries that have signed up to the Kyoto Protocol.
The linking of the two systems will enable companies to transfer certified emission reductions (CERs) issued under the Clean Development Mechanism into their accounts in Member State registries. The Clean Development Mechanism (CDM) allows countries with an emission reduction commitment under the Kyoto Protocol to implement an emission reduction project in developing countries. These projects earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets. As CERs can be used to offset emissions under the EU ETS, the link is crucial to ensure that operators have access to an adequate supply of carbon credits.
The two systems will control and track transactions jointly. Currently, each Member State registry is connected to the CITL. After the ITL and CITL are connected, each Member State registry will be connected to the ITL only and each transaction involving an EU Member State will be passed on to the CITL for recording and additional checks.
Testing successfully completed
The European Commission, Member States and the UNFCCC Secretariat have carried out two rehearsals to test technical procedures. The first test-run, which took place from 15 to 30 May, involved five Member States. The second rehearsal, from 18 July to 4 August involved all Member States, as well as non-EU registries in Russia, Japan and New Zealand. These tests have now been successfully completed.
Next steps
The Commission is currently working with the UNFCCC Secretariat to fix the precise date for the official connection, which will be announced shortly. During the connection procedure, the Commission and Member States will suspend all registry operations for a maximum period of seven calendar days.
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Climate Change: Commission launches public consultation on post-2012 agreement, 08.08.2008
Brussel (EU) - The European Commission launches today a public consultation on the European Union's approach to a global climate change agreement up to and beyond 2012 when the current Kyoto Protocol targets will end. Stakeholders and the general public are invited to put forward their views on a number of critical issues, such as mid-term emission reduction targets for developed countries and emission reduction actions for developing countries, adaptation to climate change, technology cooperation and finance. The results of the survey will help shape the EU's position on the global post-2012 agreement.
Environment Commissioner Stavros Dimas said: "It was agreed in Bali last year that a new global climate change agreement should be adopted by the end of 2009. The ambitious agreement that needs to be reached in Copenhagen must bring together the world's nations to tackle this global challenge effectively. It is important that our contribution to this discussion is shaped by the knowledge and expertise of the different EU stakeholders."
The Commission launches today a public consultation on the approach the European Union should take on the global post-2012 climate change agreement. The consultation follows the Commission's Communication "Limiting Global Climate Change to 2° Celsius: The way ahead for 2020 and beyond". Stakeholders are being asked for their views on the different building blocks of the Bali Road Map. These include a shared vision guiding commitments to mid-term targets by developed countries and greater collaboration on emission reduction and adaptation to climate change with the support of technology and finance.
The Commission welcomes comments from all interested parties, including individual citizens, industry, trade unions and consumer representatives, interest groups, the NGO community and other organisations. A conference for stakeholders is planned for autumn this year. The consultation runs until 29 September 2008. Interested stakeholders are invited to participate by filling in the online questionnaire at:
http://ec.europa.eu/yourvoice/ipm/forms/dispatch?form=climatepost2012
Background
The Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) was a vital first step in addressing the serious threat of climate change. Under the Kyoto Protocol, the EU committed itself to reducing its greenhouse gas emissions by 8%, compared to 1990 levels between 2008 and 2012. In December 2007, at the UN conference on climate change in Bali, Indonesia, participating countries set out an action plan for an agreement on a post 2012 framework, to be completed by 2009 when the parties of the UNFCCC meet in Copenhagen.
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CARBON EXPO reinforces its leadership role in the carbon market, 09.05.08
Cologne (Carbon EXPO) - 3000 visitors – an increase of more than 20 percent – attended the carbon market’s leading global fair and conference in Cologne, Germany.
258 exhibitors from more than 60 countries and 3000 visitors from more than 115 countries accepted the invitation of the organisers Koelnmesse, the World Bank and the International Emissions Trading Association (IETA), to share experiences and gain knowledge of current topics and trends, technologies, projects and services at this years CARBON EXPO. The EXPO recorded a more than 16 percent increase in exhibitors and a 20 percent increase in the number of visitors (2007: 222 exhibitors, 2.419 visitors).
New World Bank figures show that the international emissions market continues its rapid growth. Announced at CARBON EXPO the global market doubled in 2007 and now totals US $ 64 billion (€47 billion). EU-emission rights trading amounts to US $ 50 billion (€37 billion).
In light of these positive developments and the continuing enormous growth figures of the global carbon emission reductions market, Koelnmesse, the World Bank and IETA expressed their delight at the outcome of CARBON EXPO in a joint statement:
“With this fifth CARBON EXPO, the trade fair and conference has once again demonstrated its leading international position and provided an ideal and flexible platform for the dynamic climate protection market. We are pleased that we could again offer the optimum venue under one roof to unite the market–companies, western governments and developing countries”, the organisers’ declared in a joint statement. Around 3000 visitors attended the plenary sessions, 22 workshops and 50 side events divided into three segments “Project Stream”, “Traders Stream”, and “New Markets Stream“. 150 leading carbon market experts, practitioners, developer and market movers attended Carbon Expo and shared their expertise. All aspects of the explosively growing carbon market were discussed – including expansion to the United States, Australia and around the world, new technologies like carbon capture and storage, green investment schemes (GIS), auctioning and allocation, trading action, pricing trends and future developments in both the current period and post-2012.
Global market of US $ 64 billion (€47 billion)
This year’s fifth CARBON EXPO began with a World Bank press conference releasing the eighth “State and Trends of the Carbon Market” report together with IETA´s third edition of the “GHG Market Sentiment Survey” in front of over 100 representatives from the international press. According to the state of the carbon market report, the global carbon market has increased from US $10 billion in 2005 to over US $30 billion in 2006, and has again doubled in 2007 to approximately US $64 billion dollars. In the past two years, the financial volume has actually sextupled. Excerpts from the report state that the European Union Emission Trading Scheme (EU ETS) also saw a doubling of both value and number of permits traded to the tune of US$50 billion (€37 billion).
The report’s data shows that the global carbon market doubled or tripled in value for all segments, except for projects in developing countries which saw a levelling off of market volumes transacted under the Clean Development Mechanism (CDM) – from 537 million tons of carbon dioxide equivalent (MtCO2e) in 2006 to 551 MtCO2e in 2007.
“Sixty-eight developing countries participate in the CDM, among them Jamaica, Kenya, Mali and Madagascar, which offered climate-friendly projects for the market for the first time in 2007. But, at a time that global cooperation to reduce the risk of climate change is more important than ever before, the prospects for developing countries benefiting from the carbon market are in question. It would be a shame for the world to lose this momentum now”, said Karan Capoor, senior World Bank carbon markets expert and co-author of the “State and Trends of the Carbon Market Report 2008“.
The IETA “GHG Market Sentiment Survey” shows continuing confidence in increasing future price levels, but some concern over the ongoing international negotiations.
CARBON EXPO 2009 heads for Barcelona
The success story that is CARBON EXPO will continue from 27 – 29 May 2009. Together with their new partner Fira Barcelona, the World Bank, the International Emissions Trading Association and Koelnmesse will organise CARBON EXPO 2009 in the Spanish city of Barcelona.
“Spain is a major player in the carbon market and right from the start in 2004 has been one of the biggest joint exhibitors at CARBON EXPO. The World Bank, IETA and Koelnmesse are convinced that cooperation with our Spanish colleagues will produce new synergies for the carbon market. The support of the Government of Spain, for both the carbon market and CARBON EXPO, will help to ensure the success of the Barcelona venture,” the CARBON EXPO organisers declared in a joint statement.
In 2010 CARBON EXPO will take place in Cologne from 26 – 28 May again.
CARBON EXPO 2008 in figures
At CARBON EXPO 2008 there were 258 exhibiting companies from 60 countries on a gross exhibiting area of 9400 m², with foreign participation at 83%. 3000 visitors from 115 countries came to CARBON EXPO 2008; here too there was an international focus with around 80% foreign visitors*. The next CARBON EXPO will take place from 27 - 29 May 2009 in Barcelona. In 2010 CARBON EXPO will open its gates on the premises of the Koelnmesse in Cologne again from 26 to 28 May.
* All figures are calculated according to the guidelines of the Gesellschaft zur Freiwilligen Kontrolle von Messe- und Ausstellungszahlen (FKM) [Association for the Voluntary Control of Trade Fair and Exhibition Figures] and are subject to an audit by a certified accountant (http://www.fkm.de/).
“Carbon Expo is the event that all the carbon market players look for” Statements of exhibitors and participants:
• Michael Pollan (Investment Manager), European Carbon Fund
“It’s the biggest carbon fair ever. It’s the event that all the carbon market players look for. As you can see, it’s getting bigger every year; A successful fair. My respect.”
• Jan-Willem Martens (Associate Director), Barclay Capital
“You really meet everyone on the market. It’s a very good event.”
• Kerry Liebenberg (Managing Associate), Linklaters
“A lot of transactions have being concluded at this year’s show. And certainly, if you take a look at the number of representatives from each of the exhibitors, it is clear that there is a momentum.
• Ming Yee Lim (Environmental Products Business Developer), Shell International Trading
“Carbon Expo is a very good event. We had the chance to talk with so many potential players.”
• Bilal Anwar (Programme Officer, CDM Climate Change Secretariat), UNFCCC
“Everything is perfect, the meetings around, the atmosphere and the close distances. We have a lot of players here, really a lot of people.”
• Pablo Fernández Guillén Cambio Climático (Abt. Klimawandel), Endesa
“The Carbon Expo is for us the biggest event in the year. We have been here in all the five editions, we have seen it growing and now it’s the place for us to meet everybody.”
Note for the media: More information about the trade fair and the conference, with pictures and information on media services can be found at http://www.carbonexpo.de/ in the Press section or by calling +49 221 821-3051 or faxing +49 221 821-3446.
Additional information about the World Bank’s carbon finance initiatives can be found on the Internet at http://www.carbonfinance.org/.
More information on IETA can be found at http://www.ieta.org/.
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CARBON EXPO 2008 7-9 May Cologne already 150 exhibitors and 800 attendees participating!
CARBON EXPO 2008 – the world’s leading annual platform for the Carbon Market
• Around 240 exhibitors and 2600 participants expected
• 110+ countries represented
• Around 190 medias present
Simply click here to register and be part of it!
Global Trade Fair:
• Platinum and Gold Packages already sold out
• Still some Silver and Bronze packages left
• Simply click here for more information and registration form
International Conference:
• 150+ high level speakers from around the world
• 6 Plenaries and 22 Workshop Sessions divided into Project Steam, Traders Steam and New Markets Stream
• Conference Highlights:
- CDM for tomorrow – Promises to keep
- CARBON EXPO Round Table Debate – Are markets delivering?
- Status of the EU ETS and Review
- Financial institutions: re-shaping the Carbon Market
- JI: Can we make it work?
- Future of the Asia Pacific Market
- Elements of the US GHG Policy
- Linking, CCS, Voluntary Market, Transportation, REDD, JIS, Accounting and Taxation and a lot more…
Click here for complete Conference Program overview
Alongside the conference program, 40 Exhibitor Side Events offer intimate networking environment combined with specialized speakers
Practical Information:
No hotel organised yet? Book online now!
Book your accommodation now in one of our partner hotels. The offer ranges from the suite in a luxury hotel to accommodation in a simple guesthouse.
Use our new online booking system. Simply enter your booking requirements and choose from the attractive offers available to you.
>>> the online booking system
“Meet the Carbon Market evening event“, 7 May 2008, at the Rheinterassen
At “Meet the Carbon Market” all of the Trade Fair and Conference participants meet at the Rheinterrassen restaurant with an amazing view of the Rhine, the old city centre and cathedral. A excellent atmosphere in which you will enjoy a relaxed evening with the Carbon Market Community.
Don’t forget to buy your ticket!
Just make sure to be there…we will make the rest!
Simply click here to register.
Your CARBON EXPO Team
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Important steps taken to expand CDM in Africa, much remains to be done – Nairobi Framework partners, 06 December 2007
Nusa Dua (UNFCCC) – A good start has been made to extend the benefits of the clean development mechanism (CDM) to Africa, but a great deal more remains to be done, and much more is needed in terms of donor support, say representatives of the five agencies implementing the Nairobi Framework aimed at spreading the benefits of CDM. “There are 850 clean development mechanism projects in 49 developing countries, but only 23 of those projects are in Africa. It’s time that the benefits of this important Kyoto Protocol mechanism were expanded in Africa,” said Yvo de Boer, Executive Secretary of the UNFCCC and the UN’s top climate change official.
Under the CDM, projects that reduce greenhouse gas emissions and contribute to sustainable development can earn saleable certified emission reduction credits (CERs). Countries with a commitment under the Kyoto Protocol can use the CERs to meet a portion of their obligations under the Protocol. A year after then Secretary-General Kofi Annan launched the Nairobi Framework, aimed at spreading the benefits of CDM to more countries, several more projects have been launched in Africa. Still, projects in Africa account for just 2.6 per cent of all CDM projects. The United Nations development Programme (UNDP), United Nations Environment Programme (UNEP), the World Bank, African Development Bank and the United Nations Framework Convention on Climate Change (UNFCCC) secretariat have joined forces to implement the Nairobi Framework, and bring to life the expressed aspirations of Parties to scale up CDM in Africa. They have written a comprehensive project proposal for which they are seeking donor support.
“UNDP considers climate change to hit at the very heart of its development mission. Climate change threatens to seriously undermine efforts to eliminate poverty and reach the Millennium Development Goals, particularly in the least developed countries,” said Yannick Glemarec, Executive Coordinator of the UNDP for the Global Environment Facility. The first concrete outcome under the Nairobi Framework is a joint UNDP–UNEP six-country CDM capacity development project in sub-Saharan Africa initiated in September 2007. The project – managed by a UNDP Regional Project Coordinator based in Addis Ababa – covers Ethiopia, Kenya, Mauritius, Mozambique, Tanzania and Zambia, and was launched in October. The Governments of Spain, Sweden and Finland have contributed a total of USD 1.5 million to the project.
"In Africa, efforts to capture CDM benefits are accelerating, supported by a number of individual and joint UN efforts. Overcoming the complexity of the CDM and general investment barriers, however, cannot be done overnight, but our sustained efforts are producing results," said John Christensen, Head of UNEP RISOE Centre, based in Denmark. Konrad von Ritter, Sector Manager for Sustainable Development at the World Bank
Institute, pointed to real accomplishments in the past year. “There has been a notable increase in capacity-development resulting in a pipeline of 30 CDM projects. Of these, 14 have already signed emissions reduction purchasing agreements with World Bank carbon funds. While this is positive we all know that more needs to be done, and therefore the critical importance of the Nairobi Framework to scale up capacity development,” Mr. von Ritter said.
About the UNFCCC
With 191 Parties, the United Nations Framework Convention on Climate Change (UNFCCC) has near universal membership. It is the parent treaty of the 1997 Kyoto Protocol, which has to date 175 member Parties. Under the Protocol, 36 States, consisting of highly industrialized countries and countries undergoing transition to a market economy, have legally binding greenhouse gas (GHG) emission limitation and reduction commitments, while developing countries have nonbinding obligations to limit emissions. The ultimate objective of both treaties is to stabilize GHG concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system.
About the CDM
There are currently more than 850 registered CDM projects in 49 countries, and about another 2000 projects in the project registration pipeline. The CDM is expected to generate more than 2.6 billion certified emission reductions (tradable CERs) by the time the first commitment period of the Kyoto Protocol ends in 2012, each equivalent to one tonne of carbon dioxide.
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US Under Pressure at Climate Conference, 06 December 2007
UNFCCC - American negotiators at a climate conference came under mounting pressure Thursday to back mandatory caps on greenhouse gases, after Australia threw its support behind deep emission cuts and anti-global warming legislation passed a crucial test in the U.S. Senate. The United States, the world's largest producer of gases blamed for rising global temperatures, has resisted calls for binding limits on emissions at the U.N. conference on Bali island, which is aimed at launching negotiations for a world climate agreement to replace the Kyoto Protocol when it expires in 2012. Australia, which had stood with the United States as the only other industrialized country to reject the Kyoto pact, reversed itself this week and signed it. Despite the pressure, Washington stood firm on Thursday in its refusal to sign the agreement, with Undersecretary of State Nicholas Burns, the No. 3 American diplomat, reiterating its stance in a series of appearances and interviews in Australia.
"We do not see eye-to-eye with Australia or many other countries on the signing of Kyoto, that's obvious," Burns said in a question-and-answer session after an address in Sydney. "But we do agree that it is critical, it is vital that we try to agree on a post-Kyoto global regime to reduce carbon emissions." Back home, the Bush administration's position suffered another blow when the Senate Environment and Public Works Committee on Wednesday passed a bill calling for the United States to cut gas emissions by 70 percent by 2050 from electric power plants, manufacturing and transportation. The bill now goes to the full Senate. It was the first bill calling for mandatory U.S. limit on greenhouse gases to be taken up in Congress since global warming emerged as an environmental issue more than two decades ago. Republican critics of the bill argued that limiting the emissions could become a hardship because of higher energy costs. The Senate move, along with Australia's reversal, cheered environmentalists and others in Bali clamoring for dramatic action to stop global warming. "This is a very welcome development," Alden Meyer, of the Union of Concerned Scientists, said. "It shows the increasing isolation of the Bush administration in terms of U.S. policy on this issue."
David Waskow, of Oxfam, which provides food and other humanitarian aid to the hungry, said the Senate legislation was a positive signal to developing nations and others in Bali that are looking for America to take a more active role in battling climate change. "It's one of the things that point the way to having the United States re-engage in the negotiations, and really I think in many ways demonstrates the U.S. leadership on these issues," Waskow said. "The administration may not be there, but it's increasingly clear that the United States is, as a country." The current Kyoto plan commits 36 industrial nations to cut emissions by an average 5 percent below 1990 levels by 2012. While the two-week conference is in its early days, differences already were emerging, mostly over what should go into the "Bali roadmap," which will lay out the subjects for discussion in the years to come.
The United States, joined by ally Japan, is proposing that the post-Kyoto agreement favor voluntary emission targets, arguing that mandatory cuts will threaten the economic growth that generates money needed to fund technology to effectively fight global warming. The European Union, on the other hand, has come out with a detailed wish list that would have industrialized countries take the lead in approving binding cuts, in addition to strengthening the carbon-offset market and boosting funds to help poor countries adapt. The Australian delegation endorsed a recent U.N. document that, among other things, speaks of cutting greenhouse gas emissions by between 25 percent and 40 percent below 1990 levels by 2020. The EU has already pledged 20 percent cutbacks by 2020, and 30 percent cuts if the U.S. joins in.
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Bali talks won't agree carbon capture, 05.12.2007
NUSA DUA (UNFCCC) - Current talks in Bali on climate change will not decide to include support for the burying of greenhouse gases as part of a successor deal to the Kyoto Protocol, the U.N.'s top climate official said. But the talks may put the so-far unproven technology, carbon capture and storage, on the agenda for future backing, Yvo de Boer told Reuters in an interview on Tuesday. About 190 countries are meeting in Bali, Indonesia, aiming to launch two years of talks to agree a new global climate change pact to succeed the Kyoto Protocol after 2012. "I think there's still quite a lot of concern out there about carbon capture and storage," said de Boer. "I think more pilot projects have to be done, more analytical work has to be done really to convince the skeptics that this is a technology that can be safely applied." "It (the Bali talks) might put CCS on the agenda as one technology to be considered as part of a mitigation solution." Carbon capture technology is widely believed to be a crucial weapon without which emissions of the commonest man-made greenhouse gas, carbon dioxide (CO2), may pass dangerous limits.
The technology is supposed to trap emissions from coal-fired power plants, which are proliferating globally, and pump the gas underground. But there is no such commercial-scale power plant project yet anywhere. That is because of the extra expense to install CCS technology, estimated at some $1 billion per plant. One idea is that, under a new global climate deal, rich countries could meet their emissions limits by funding carbon capture projects in developing nations, earning carbon offsets in return. Because no new commercial-scale CCS projects are expected to be operational for several years, the technology is only relevant to a Kyoto successor deal.
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Africa: "Political Will" Needed to Change Climate, 05.12.2007
Johannesburg ( UNFCCC) - Officials stressed the need for "political will" to stem the impact of global warming as the United Nations Climate Change Conference got underway on the Indonesian island of Bali on 3 December.
The joint meeting of the 192 Parties to the United Nations Framework Convention on Climate Change (UNFCCC) and the 177 Parties to the Kyoto Protocol are expected to prepare the ground for a new deal on climate change to be put in place after 2012. This is when the first phase of the Kyoto Protocol, a commitment made in 1997 by 36 industrialised countries to reduce greenhouse gas emissions by at least five percent against a 1990 baseline, expires.
Reports by the Intergovernmental Panel on Climate Change (IPCC) have warned that if greenhouse gas emissions are not cut by at least 30 percent in the next 10 to 15 years, global temperatures would increase by two degrees Celsius, which will destroy 30 to 40 percent of all known species, and bring bigger, fiercer and more frequent heat waves, floods and droughts.
"A large part of the solution is available to us today; what we need is political will," said Yvo de Boer, UNFCCC Executive Secretary at a press briefing on 2 December in Bali. "The big question for me is: 'Ministers, what is your political answer to what the scientific community is telling you so very clearly?'" IPCC chair Rajendra Pachauri told IRIN, "I am generally optimistic, but you need political leaders who will take the initiative."
The conference kicked off on a positive note with the newly elected Australian Prime Minister, Kevin Rudd, ratifying the Kyoto Protocol on 3 December, leaving the United States, the world's largest emitter of greenhouse gases, isolated as the only industrialised country that has not signed. The US objected because the Kyoto Protocol excluded China and India, two of the world's fastest growing economies.
Lengthy applause greeted news of Australia's ratification, which de Boer hailed as "very significant political decision" and said it reflected appreciation for the courage shown by Australia in dramatically shifting its position and engaging more strongly with the international community on climate change, which boded well for the country's future role in the negotiations.
The biggest single barrier to that is the role the US administration has played in wrecking the climate negotiations, but we cannot wait for the US administration; the EU and others must lead, because we just cannot afford to wait
"Each country must take its fair share of responsibility for tackling the problem in the second commitment period [post 2012]," said Shane Rattenbury, Political Director of Greenpeace International. "The biggest single barrier to that is the role the US administration has played in wrecking the climate negotiations, but we cannot wait for the US administration; the EU and others must lead, because we just cannot afford to wait."
At the press briefing De Boer noted a number of recent positive political developments: the European Union has announced a commitment to reduce emissions by 20 percent by 2020; the G8 has called for negotiations on a future climate deal to be concluded by 2009, when the next meeting of all parties to the UNFCCC takes place in Copenhagen, Denmark.
Indonesian Environment Minister and President of the conference, Rachmat Witoelar, commented in his opening remarks on 3 December that while "the launch of negotiations and a clear deadline of 2009 to end the negotiations would constitute a breakthrough, anything short of that would constitute a failure."
Other issues
There are four main "blocks" on the conference agenda: mitigation (action to limit or reduce emissions); adaptation (putting in place a strategy to help developing countries adapt to the impacts of climate change); technology (helping countries limit or reduce emissions and adapt to the impacts of climate change by supplying technology; financial support to help developing countries act on mitigation and adaptation.
Other important issues include deforestation, recognised as a key driver of climate change that accounts for up to 20 percent of global carbon dioxide emissions. The aim is to launch pilot projects in developing countries that will enhance their capacity to reduce emissions from deforestation.
The Clean Development Mechanism, one of three mechanisms in the Kyoto Protocol that offer rich countries the choice of reducing emissions at home or in developing countries, with benefits for both parties.
"Action in the North is needed to fuel clean growth in the South," de Boer said in his opening address on 3 December. "While it is clear that we will need to continue using fossil fuels for some time to come, we can't afford conventional technologies to continue to keep a grip on the world."
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UN kicks off Bali climate change conference, 04.12.2007
BALI (UNFCCC) - About 10,000 delegates from nearly 190 countries are in Bali today for a massive UN conference on climate change. The focus of the conference is to begin negotiations on an international agreement to fight climate change after 2012 -- when the first commitment period of the Kyoto Protocol expires.
The main goals of the conference are to:
- launch negotiations on a climate change deal for the post-2012 period
- set the agenda for the negotiations
- reach agreement on when these negotiations will have to be concluded.
"The eyes of the world are upon you. There is a huge responsibility for Bali to deliver,'' said Yvo de Boer, the executive secretary of the conference. "The world now expects a quantum leap forward.'' In an effort to get the talks started on a positive note, Indonesia planted millions of trees to soak up the estimated 50,000 tonnes of greenhouse gases expected to be created by delegates flying to Bali to attend the conference.
A key aim of the conference will be to ensure that the United States signs on to any new agreement. The American delegation in Bali has said it would not work as a "roadblock" to a new agreement. However, the U.S. remains opposed to certain measures - such as mandatory emissions cuts by wealthy nations and a target for limiting the rise in global temperatures - that are supported by many countries in attendance.
On Monday, Australia signed papers to ratify the Kyoto Protocol climate pact - leaving the U.S. as the only industrial power to not have joined.
The U.S. is the world's number one emitter of greenhouse gases. "There's going to be a lot of pressure now and the Bush administration is increasingly isolated on this with now the Australians leaving them," Dale Marshall, of the David Suzuki Foundation, told CTV Newsnet on Monday. On Sunday, Canada's Environment Minister John Baird said any deal needs to include the world's major producers of greenhouse gases. "We want to negotiate an agreement that's tough and effective and brings in all the big players," Baird told CTV's Question Period, adding that failure is not an option.
The Harper government's plan would see Canada cut its emissions by 20 per cent by 2020. However, the Tories use 2006 as a baseline, not Kyoto's 1990 baseline. Climate analysts say under the Harper plan, Canada wouldn't reach its Kyoto target of a six per cent cut below 1990 levels by 2012 until 2020. Liberal Leader Stephane Dion has said that he will attend the conference despite the fact that the Harper government has not invited any opposition members. Dion has said that the Harper government is attempting to sabotage the Kyoto Protocol, and has written a letter asking that it reverse its decision on opposition participation. But Baird said that Dion has already had his chance to deal with climate change as a member of the previous Liberal government and failed to take action. "Since Kyoto was signed 10 years ago, under Stephane Dion's leadership, greenhouse gases went up by 35.9 per cent," he said, "We have one of the worst records in the developing world. I think Canada can do a lot better."
The Tories have appointed former Parti Québécois premier Pierre-Marc Johnson to lead its advisory team at the conference, reports The Globe and Mail. Johnson, premier for part of 1985, could help the Conservatives build support in Quebec. The Tories have faced criticism in the province for their position on Kyoto -- that its objectives are unattainable -- and for opposing binding commitments to cut greenhouse gas emissions in developed nations. "It's not who's sitting in Canada's chair, it's what are the positions," Marshall said from Bali. "Right now, the international position for Canada is quite weak and we don't have a lot of credibility, frankly, given our weak domestic policies."
The UN wants an agreement on a replacement pact for Kyoto to be decided by 2009 so that it can be implemented in time. The conference continues until Dec. 14.
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ifw: Taxes or Emissions Trading in Post-Kyoto Regimes? 02.12.2007
Kiel (Institute of the World Economy) - The distribution of real or perceived costs and benefits of reducing greenhouse gas (GHG) emissions will play a crucial role in upcoming negotiations on a Post Kyoto climate regime. The distribution of these costs depends to a large degree on the choice of the policy instrument for effectively reducing emissions such as a harmonized international carbon tax or a “cap-and-trade” emissions trading system with different rules for allocating the emission allowances.
Some of these rules might lead to a distribution of costs particularly for major developing countries including China and India that might not be acceptable to them and thus fail to provide incentives for these countries to participate. This is the result of the working paper No. 1380 “Distribution Matters – Taxes vs. Emissions Trading in Post Kyoto Climate Regimes” by Sonja Peterson and Gernot Klepper released recently by the Kiel Institute for the World Economy.
When the Kyoto Protocol finally came into effect in the spring of 2005, the first international GHG-emission regulations became binding. But, besides the fact that it is unclear whether the emissions targets will be met, the major GHG-producing industrialized nation, the United States, have not ratified the Protocol, meaning that they are not bound to its terms. In addition, rapidly growing Asian countries such as India and China are currently exempt from emission reduction regulations, even though China is in the process of surpassing US emissions levels.
The increasing share of the big developing countries in GHG emissions and the nonparticipation of the United States, together with the recent evidence for a faster than expected climate change that can be found in the fourth assessment report of the IPCC have made clear that a Post-Kyoto agreement needs to include the biggest emitters of GHGs. The forecast that by 2030 developing nations will account for more than 50 per cent of GHG emissions makes the necessity of including developing nations in any Post-Kyoto agreement even more clear. Also obvious is the fact that an agreement can only be reached if it provides a fair distribution of emissions reduction responsibilities, and some sort of real or monetary incentives in order to be internationally accepted.
Peterson and Klepper conduct a quantitative assessment of the distribution of the costs of climate policies by comparing a harmonized international carbon tax with two variants of a cap-and-trade system: The first requires reductions in all countries by the same percentage relative to some historical reference year (“grandfathering rule”), the second allocates emission rights in such a way that over time the rights are distributed among countries according to the size of their population. This proposal – it has been also called the “Contraction and Convergence” approach – eventually leads to a system where every person receives the same emission right. This last proposal has recently been introduced by the Chancellor of Germany into the international debate.
Peterson and Klepper find that a harmonized carbon tax tends to favour industrialized countries whereas it puts a relatively high burden on developing countries. The “Contraction and Convergence” approach of emission trading leads to welfare gains for countries like China, India, and the countries of sub-Saharan Africa whereas it imposes welfare losses upon industrialized countries which are larger than those under the grandfathering rule or a tax scenario.
Under all policy instruments the energy exporting regions such as the countries of the Commonwealth of Independent States and the Middle East face high welfare losses when compared to all other countries. Two forces are at work as the authors find out: The “Contraction and Convergence” assignment of emission rights gives developing countries large amounts of emission rights. At the same time they have comparatively low cost of reducing emissions. In sum, they can sell a significant amount of their emission rights to industrial countries and can thus use emission rights as an additional source of income. In fact, India and China are expected to sell about 30 to 35 percent of their emission rights to countries with higher abatement costs. At the same time Europe will import emission rights in the order of about one third of its reduction requirement thus avoiding the higher cost of meeting their emission target. This explains the gains of developing countries and the relatively low losses of industrialized countries.
The second force concerns the response of energy demand to the climate policy. Significant worldwide emission reductions can only occur if the demand for energy is reduced. This means that an important determinant for regional welfare changes – induced by the different climate policy instruments – is a country’s status as either an exporter or importer of energy. The reason is that a reduction in GHG emissions will automatically lead to lower net prices for fossil energy sources and thus to a welfare loss in energy exporting countries.
Peterson and Klepper stress the importance of the choice of policy instruments and their particular use in implementing a Post-Kyoto Climate Regime, but conclude that there is no policy instrument that looks immediately acceptable to all countries. However, they indicate that for a Post-Kyoto climate regime that intends to include the countries with the most emissions the “Contraction and Convergence” approach with emission trading could be a good starting point since it balances the overall cost of climate policies between the rich and the not so well-off countries and it simultaneously has the appeal of leading to a fair distribution of emission rights in the future.
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Societe Generale: Australia CER demand estimated at 18 million tonnes per year, 02.12.2007
Societe Generale commodity research has isssued the following carbon market report: Welcome Australia?
Phase II EUA for Dec08 delivery have made the big jump over Euro23/t early last week. Between November 19th and 20th the rise was almost Euro1. Since then market has been absorbing the fact and prices have remained by and large stable at around Euro23.7. Interesting to note is that we have tested the Euro24 level several times. While this has been only half-hearted until now, we might be on solid grounds to try that again. Last week momentum has been created by a bullish energy complex, with oil approaching $100 /b again but exchange gas stable in Europe. This week's could come from the aftermath of ITL-CITL announcements by the EC some days ago.
Phase I remained pretty much stable, despite the disturbing news that there might be double-counting (18 Mt?) in the quotas surrendered by ETS industrials in 2005 and 2006. The EC has denied this happened but, if confirmed, it could trigger some renewed purchase from people who would see these quotas cancelled, and also some speculation on the price rise. We do not think the price could increase to significant levels-even accounting for the ex-post adjustment by Germany some days ago, which would lead to 33 Mt retired eventually, there remains at least 30 Mt length in the Phase I market according to us.
Phase II curves have not really moved in any direction, and the 2008-2012 spread remains at Euro2.5 /t. Even if spreads are consistently traded in the market, the shape is not impacted as of now.
What about CER?
Three elements to report from last week. The first one is the sad communication by the EC that the link between the (now functioning) ITL and the CITL will be ready-no later than April 2009, a wording that maybe is intended to reassure operators but in practice might make them fear that there could be delays beyond this very important date. Despite the recent surge in prices around Euro18 /t in the wake of EUA, this could eventually have a bearish effect on CER, seen as more and more risky, and in turn a bullish one on EUA, which will be in more demand.
The second element is the disconnect in CER prices between Nordpool and OTC markets, with differences reaching Euro0.4 at some point last week. These differences are still difficult to account for and could be due to the still limited liquidity of CER on Nordpool, but also a difference in interpretation of the contract characteristics by participants - to be followed.
The third news is the election in Australia, where the Labour Party just won - and had promised to ratify Kyoto in case of victory. If this happens, what is the potential for CER purchase from this country over 2008-2012? Under Kyoto, Australia is allowed to increase its emissions by 8% against 1990 levels (about 507 Mt CO2e, so they can reach 547 Mt on a yearly average). Our view today is that the country, in a baseline scenario, would emit 583 Mt per year on average over 2008-2012 - a 1.5% yearly growth in emissions over 2004-2012. This means that Australia would be short of 36 Mt per year. Using the Kyoto supplementarity principle, which sets a principle upper limit on the use of CER from any country to meet its Kyoto target, this means a 18 Mt per year demand from Australia. Not massive (total CER demand for us would be in the order of 400-500 Mt per year), but not exactly bearish either. All the more so as the ratification, if effective, would now leave the US completely isolated on the climate scene, possibly accelerating things at this end too. So this comes in opposition to the ITL possible bearish impact, and could trigger a rush to CER- let us wait and see.
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Climate change: Bali conference must launch negotiations and fix ‘roadmap’ for new UN agreement, 28 November 2007
BRUSSEL (EU) - The UN climate change conference from 3 to 14 December in Bali, Indonesia must agree to launch negotiations on a comprehensive and ambitious global climate change agreement for the period after 2012, when the Kyoto Protocol’s first commitment period ends. This is the key objective of the Commission and EU member states following the alarming assessment of current and future climate change recently completed by the Intergovernmental Panel on Climate Change (IPCC). Environment Commissioner Stavros Dimas will participate in the high-level segment of the Bali conference from 12 to 14 December. This will be preceded on 8-9 December by a meeting of trade ministers on trade-related climate issues and on 10-11 December by a meeting of finance ministers on funding for low-carbon technologies.
“The scientific evidence of climate change highlighted by the IPCC is compelling and alarming,” Commissioner Dimas said. “The only responsible reaction is to step up global efforts to limit emissions of greenhouse gases. That is why in Bali we must agree to launch negotiations on a global and comprehensive climate agreement and define a ‘roadmap’ setting out its main components. The conference must also fix the end of 2009 as the deadline for completing the negotiations.
He added: “The goal of the future agreement must be to limit global warming to no more than 2ºC above the pre-industrial temperature so we can prevent the most devastating impacts of climate change. The Bali meeting is a key opportunity to agree on this level of ambition to guide our negotiations over the next two years.”
The EU’s position was agreed by the Council of environment ministers on 30 October. The EU proposes that a post-2012 climate agreement should contain eight key ‘building blocks’:
Limiting global warming to 2ºC above the pre-industrial temperature. Respecting this limit will require global emissions to stop rising within the next 10 to 15 years and then be reduced to at least 50% below 1990 levels by 2050.
Deeper mandatory absolute emissions reductions by developed countries. The EU is proposing that developed countries collectively reduce emissions 30% by 2020 and 60-80% by 2050 compared with 1990 levels. Pending agreement on this, the EU has made an independent commitment to reduce its own emissions by at least 20% by 2020. The Commission will propose a package of legislative measures to achieve this early in 2008.
Fair and effective contributions by other countries, especially the rapidly emerging economies, that limit the emissions intensity of their economic growth;
Strengthening and extending the global carbon market, including through innovative and enhanced flexible mechanisms. The EU Emissions Trading System (EU ETS) has shown that the carbon market works.
Increasing cooperation on research, development and deployment of the clean technologies needed to reduce emissions;
Enhancing efforts to address adaptation to climate change. Cooperation to tackle the unavoidable impacts of climate change needs to be strengthened, particularly to help the poorest and most vulnerable countries.
Addressing emissions from international aviation and shipping. The EU is already discussing the inclusion of aviation in the EU ETS.
Reducing emissions from deforestation, which is responsible for up to 20% of global CO2 emissions.
Discussions on post-2012 action on climate change were launched two years ago and the EU believes it is now imperative that this process be turned into concrete negotiations on a new global agreement.
One 'track' of these discussions has been an informal dialogue on long-term cooperative action among the 192 Parties to the UN Framework Convention on Climate Change (UNFCCC). This dialogue will formally end in Bali and the EU wants to see this followed up by a formal negotiating process covering all the building blocks of a future agreement. On a second, parallel track the 176 Parties to the Kyoto Protocol are discussing new emission reduction targets for industrialised countries to succeed the 2008-2012 targets.
The 8-9 December meeting of trade ministers will be an important opportunity to address cross-cutting trade-related climate issues. The meeting of finance ministers on 10-11 December will focus attention on options for redirecting and scaling up global investment in low-carbon technologies. The EU is committed to doing more to mobilise the necessary finance, including through the expansion of the global carbon market and instruments such as the Global Energy Efficiency and Renewable Energy Fund (GEEREF).
The Commission will also be promoting its initiative to build a Global Climate Change Alliance with the poorest developing countries, who will be the most affected by climate change but have the least capacity to cope with it (see IP/07/1352).
Background
The Bali meeting comprises the13th conference of Parties (COP-13) to the UNFCCC and the 3rd Meeting of Parties (COP/MOP-3) to its Kyoto Protocol.
For the high-level segment the EU will be led by the 'Troika' comprising Portuguese Environment Minister Francisco Nunes Correia, Slovenian Environment Minister Janez Podobnik and Commissioner Dimas.
For more information:
http://ec.europa.eu/environment/climat/home_en.htm
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Climate change: EU on track towards Kyoto target but efforts must be maintained, projections show, 28 November 2007
BRUSSEL (EU) - The EU is moving closer to achieving its Kyoto Protocol targets for reducing emissions of greenhouse gases but additional initiatives need to be adopted and implemented swiftly to ensure success. This is the conclusion of the Commission's annual report on progress towards meeting the Kyoto objectives. The latest projections from Member States indicate that measures already taken, together with the purchase of emission credits from third countries and forestry activities that absorb carbon from the atmosphere, will cut EU-15 emissions in 2010 to 7.4% below levels in the chosen base year (1990 in most cases) - just short of the 8% reduction target for 2012. Additional policies and measures under discussion at EU and national levels will allow the target to be reached and even take the reduction to 11.4% if implemented promptly and fully.
Environment Commissioner Stavros Dimas said: “The latest projections show that the Kyoto target will be reached once the Member States have adopted and implemented the additional actions now under discussion. I therefore urge them to do this swiftly. The Commission has already made a significant contribution to reaching the Kyoto target through its decisions on national allocations under the EU Emissions Trading System (ETS) for 2008-2012. This also lays a solid foundation for achieving our more ambitious emission targets for 2020, for which we will bring forward a number of proposals early next year."
Kyoto commitments
Under Kyoto the EU-15 Member States are committed to reducing their collective greenhouse gas emissions in 2008-2012 to 8% below base year levels. There is no collective target for EU-25 or EU-27 emissions. Most EU-12 Member States have individual commitments to reduce emissions to 6% or 8% below base year levels over the same period. Cyprus and Malta have no target.
Historical emissions and projections to 2010
As announced in June (see IP/07/835), EU-15 greenhouse gas emissions in 2005 - the latest year for which full data are available – were 2% lower than base year levels. This contrasted with economic growth of more than 35% over the same period. For the EU-25 the emissions reduction to 2005 was 11% from base year levels.
The latest projections by Member States show that existing policies and measures – those already implemented – are expected to reduce EU-15 emissions to 4% below base year levels by 2010, the middle year of the 2008-2012 period.
Plans by 10 of the EU-15 Member States to buy credits from emission-saving projects carried out in third countries under Kyoto’s market-based mechanisms would bring a further reduction of 2.5%, taking the cut to 6.5%.
Planned afforestation and reforestation activities, which create biological 'sinks' that absorb carbon dioxide from the atmosphere, would contribute an additional cut of 0.9%, giving a 7.4% reduction, 0.6% short of the Kyoto target. The target will be more than comfortably achieved on condition that additional policies and measures currently under discussion are promptly put in place and fully implemented. The total emissions reduction could then increase to 11.4%.
Additional policies and measures under discussion at EU level which would contribute to meeting the Kyoto target include the Commission's proposals to include aviation in the EU ETS from 2011 and to require a 10% cut in greenhouse gas emissions from transport fuels between 2011 and 2020. Both are presently under discussion within the Council and the European Parliament under the co-decision procedure.
A significant contribution to meeting the EU-15's 8% reduction target will come from the Commission's decisions to cut back many national allocation plans (NAP) for the second trading period of the EU ETS. Compared with base year levels, these decisions will reduce EU-15 emissions by 3.4% and EU-25 emissions by 2.6% (emissions data for Bulgaria and Romania have not been independently verified due to their recent accession). Part of this reduction may already be reflected in some Member States' projections.
The progress report indicates that all EU-25 Member States can reach their individual Kyoto targets. Those that are currently not on track have recently identified or are in the process of identifying supplementary actions. To be effective and timely in reducing emissions, such measures must be introduced and implemented swiftly however.
Emissions targets for 2020
At their spring European Council last March, EU Heads of State and Government pledged that the EU would reduce its emissions in the order of 30% below 1990 levels by 2020 provided that other developed countries agreed to make similar efforts. The EU leaders committed the EU to cutting its emissions by at least 20% over the same period in any case, and endorsed the package of climate and energy measures put forward by the Commission last January as the basis for achieving this goal.
The latest projections show that to reach these targets for 2020, the EU will have to put emissions on a much steeper reduction path after 2012. This underlines the need for the EU and Member States to put in place the policies and measures set out in the climate and energy package as soon as possible. The Commission intends to propose a number of key measures in early 2008.
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EU industry warns about carbon trading and renewables, 28.11.2007
The industry lobby group BusinessEurope has warned that the EU must focus more on energy efficiency, rather than renewable energies and emissions trading, if it wants to prevent energy-intensive industries such as chemicals and steel-making from taking their operations elsewhere.
A revised and strengthened EU Emissions Trading Scheme (EU ETS) will cost some companies their "yearly net earnings or more", BusinessEurope's President Ernest-Antoine Seillière told journalists in Brussels on Monday.
Seillière expressed industry concern that a shift in the EU ETS towards full auctioning of emission permits is "so problematic" that increasing costs could force companies to move outside the EU to countries where CO2 emissions are cheaper.
Full auctioning, an idea currently being discussed within the Commission, would signal a significant modification of the current system, under which member-state authorities allocate a percentage of permits to industry free of charge. During the last trading period (2005-2007), over-allocation of permits contributed to a crash in the carbon price.
The Commission is expected to put forward its proposals on a revised EU ETS for the post-2012 trading period on January 23, along with a package of proposals on renewable energies and a communication on carbon capture and storage (CCS).
BusinessEurope argues the EU executive should focus more on realising the full potential of energy efficiency improvements rather than tightening the bloc's carbon market or pushing for "difficult to achieve" renewable energy targets.
A change in depreciation and public procurement rules, more public information campaigns, 'positive incentives' and mandatory eco-efficiency requirements should be part of EU efforts to increase energy efficiency improvements in buildings and industrial processes, according to Folker Franz, BusinessEurope's senior advisor for Environmental Affairs.
In response to a reporter's question about whether the renewables industry had been consulted during the formulation of the group's position, Seillière explained that BusinessEurope is not against renewable energies as such, but expressed severe doubts about the feasibility of reaching a 20% share of renewable energy use in the EU by 2020, a position the group has expressed previously.
The EU's renewable energy industry, however, has argued that the 20% target is more than feasible given the right incentive structures.
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IEA commends Switzerland for its energy policy reforms, but sees more room for higher energy efficiency and use of renewable energy, 27 November 2007
Bern (IEA) - “Switzerland has made impressive progress in its energy policy over the past few years”, said Nobuo Tanaka, Executive Director of the International Energy Agency (IEA), today in Berne at the launch of Energy Policies of IEA Countries – Switzerland 2007 Review.
“Electricity market reform is an important step for Switzerland and its neighbours. Furthermore, Switzerland is making laudable progress on nuclear waste management, and it continues to show leadership in its long-term policy to shift freight transport from road to rail.” But there is still more to do. ”Improving electricity supply and further reducing CO2 emissions in the future remain key challenges”, Mr. Tanaka said.
Switzerland foresees an electricity supply gap starting to widen in the late 2010s and early 2020s. Renewable energy and energy efficiency are projected to cover only part of this gap. As the government wishes to avoid dependence on electricity imports, Switzerland is left with the option to build more nuclear and/or gas-fired capacity. Both face uncertainties.
The process to build new nuclear power plants is long (about 16 to 18 years in Switzerland) and new construction might face a referendum. “The government has plans to streamline the licensing procedure, which is good”, Mr. Tanaka said. “As all decisions should be based on facts, we think the government should continue to inform the citizens on the various aspects of nuclear power.”
Constructing gas-fired power plants is challenged by the current CO2 regime. Mr. Tanaka pointed out that “Switzerland has allocated its quota of cheap emissions reductions from the Kyoto mechanisms unevenly across sectors, strongly favouring the use of transport fuels at the expense of electricity generation and industry”. This renders gas-fired power generation projects uneconomic. “These distortions should be removed”, Mr. Tanaka stressed and called for more favourable conditions for investment but also improved efficiency of electricity use.
Switzerland seems to be on track to meeting its target for reducing greenhouse gases under the Kyoto Protocol. “Kyoto, however, is just the first step and must be followed by a more ambitious international agreement. The real challenge is yet to come and lies in the post-Kyoto period“, observed Mr. Tanaka.
Switzerland is more dependent on oil than most industrialized countries. Oil is also the source for some 77% of Switzerland´s CO2 emissions. Oil use must be tackled to reduce emissions. Efforts should be focused on transport and space heating, the biggest users.
The government´s policy to promote switching to alternative heating systems is to be commended, but low taxes continue to make oil heating in Switzerland very cheap by international comparison. More alarmingly, the trend for emissions from private cars and light-duty vehicles is unsustainable and the voluntary system in place, the Climate Cent, does not provide sufficient incentives for change. “Switzerland should act now and adopt measures to promote low-emission vehicles and more efficient use of oil”, Mr. Tanaka said. Many such measures were suggested in DETEC’s (Department of Environment, Transport, Energy and Communications) draft action plan on energy efficiency.
“We think that whatever electricity supply option Switzerland chooses, and whatever measures to reduce CO2 emissions the country applies, a stronger focus on energy efficiency should always be part of the process. And more can be done to increase the use of renewable energy”, said Mr. Tanaka. “We are telling all countries that they can, and they should, aim much higher.”
The draft action plans on energy efficiency and renewable energy (published in September 2007) provide a solid basis for promoting their further development. Commendably, the draft plan on energy efficiency is broadly in line with the IEA´s recommendations to the G8, which were endorsed by the IEA Energy Ministers in May 2007.
Renewable energy should be promoted as well, not only in electricity generation, but also in space heating. Large-scale use of renewable energy in the transport sector should be based on life-cycle analysis of its costs and benefits.
Switzerland’s world-class energy R&D is focused on more than halving energy needs per capita by the second half of this century. “This ambitious goal needs to be supported by consistent policies on energy efficiency and climate change”, Mr. Tanaka concluded."
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WMO greenhouse gas bulletin 2006: atmospheric carbon dioxide levels highest on record, 26 November 2007
GENEVA (WMO) – In 2006, globally averaged concentrations of carbon dioxide (CO2) in the atmosphere reached their highest levels ever recorded. The World Meteorological Organization’s (WMO) 2006 Greenhouse Gas Bulletin, published today, says it reached 381.2 parts per million (ppm), up 0.53 per cent from 379.2 ppm in 2005.
The information is based on observations from the WMO Global CO2 and CH4 Monitoring Network, a comprehensive climate network recognized by the United Nations Framework Convention on Climate Change.
The latest Bulletin precedes the 50th Anniversary of the Global Carbon Dioxide Record Symposium and Celebration (Kona, Hawai, 28-30 November 2007), co-sponsored by WMO, and WMO’s participation in the 13th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (Bali, Indonesia, 3-14 December 2007).
After water vapour, carbon dioxide, methane (CH4) and nitrous oxide (N2O) are the three most prevalent greenhouse gases in the Earth’s atmosphere respectively. Greenhouse gases are major drivers of global warming and climate change. Concentrations of N2O also reached record highs in 2006, up 0.25 per cent from 319.2 parts per billion (ppb) to 320.1 ppb while methane remained almost unchanged at 1782 ppb.
The 36 per cent rise in CO2 since the late 1700s has largely been generated by emissions from the combustion of fossil fuels. Around one third of N2O discharged into the air is a result of human activities such as fuel combustion, biomass burning, fertilizer use and some industrial processes. Human activity such as fossil fuel exploitation, rice agriculture, biomass burning, landfills and ruminant farm animals account for some 60 per cent of atmospheric CH4, with natural processes including those produced by wetlands and termites responsible for the remaining 40 per cent.
Accurate atmospheric observations made globally by some 44 WMO Members are archived and distributed by the World Data Centre for Greenhouse Gases (WDCGG), located at the Japan Meteorological Agency.
WMO prepares the Greenhouse Gases Bulletin in cooperation with WDCGG and the Global Atmosphere Watch Scientific Advisory Group for Greenhouse Gases with the assistance of the National Oceanic and Atmospheric Administration’s Earth System Research Laboratory (NOAA-ESRL).
A remarkable development in 2007 was the launch by the United States’ National Oceanic and Atmospheric Administration (NOAA) of CarbonTracker, a global carbon cycle modelling tool that converts surface-based global greenhouse gas observations into best estimates of global distribution in the atmosphere and the net air-surface exchange of carbon dioxide.
For the full Bulletin: http://www.wmo.int/pages/prog/arep/gaw/ghg/ghgbull06_en.html
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Electricity in Europe, Evolution of supply-demand balances by 2020, 27 November 2007
In 2006, the European power stations had a total capacity of 763.5 GW. Half of them were thermal power stations (53%) and most were located in the new Member States.
Electricity capacity should grow by 2% per year to 844.8 GW in 2010, with very large investments in nonhydraulic renewable energies (+55 GW between 2005 and 2010 or +15.7% per year) and natural gas power stations (+54.6 GW or +6.6% per year). As a result, investments in the other energy sources will decrease with oil down -1.5%, nuclear power -0.9% and coal -1%. This sharp rise in production capacities comes in response to stronger demand. The focus on low-CO2-emitting energy sources is also coherent with measures adopted by the EU to meet the requirements of the Kyoto Protocol on greenhouse gas emissions.
It is harder to make precise country forecasts for the longer term (i.e. by 2020). However, two scenarios are most likely. The first one features slower demand growth over the 2010-2020 period than pre-2010. In that case, natural gas and renewable energies will develop to the detriment of nuclear power, coal and oil but at a slower pace (respectively, 2.6% and 5.4% per year). The second one assumes stronger demand (especially in eastern Europe), which would be offset by larger investments in natural gas (+6.6% annual growth rate over the 2010-2020 period). In both cases, the production trends for each energy source will depend heavily on CO2 emissions.
Electricity exchanges between European countries are likely to change considerably in the coming years. For instance, France, which is already a major supplier in Europe, should increase its nuclear power exports towards its neighbours (except Germany who is also an exporter) and the United Kingdom (which will make investments over the period under review to become self-sufficient). Meanwhile, eastern European countries, which are mainly exporters nowadays, thanks to residual overcapacities, should cut their investments and gradually absorb their surpluses and this trend will materialise under both scenarios.
Not surprisingly, higher electricity production will mean higher greenhouse gas emissions. These will rise by 73 Mt between 2010 and 2020 for a demand growth that remains on trend (first scenario) and 170 Mt if demand is strong (second scenario). The share of renewable energies in electricity production (excluding nuclear power) will remain low, reaching 20% to 22% in 2020 depending on the scenarios. Fossil fuels will continue to dominate (with 55% to 58% of the production in 2020). CO2 emissions will increase more slowly than electricity production. If growth remains on trend, CO2 emissions will rise by only 5% for a 9% increase in electricity production between 2010 and 2020 against, respectively, 11% and 16% using the strong growth scenario. Because of the EU's 20% emission reduction target by 2020, we see growing divergence between economic growth, energy demand and CO2 emissions, but this will not be enough to reduce the electricity sector's emissions.
Renewable energies should continue to develop strongly but at a slower pace than prior to 2010 (except hydraulic capacities which are already saturated). Given that wind power will be left with little potential, capacities will grow at a slower pace from 2010. In 2020, the market share of renewable energies will be 38% of total capacities (19% for hydropower and 19% for other energies) against 29% in 2006. However, renewable energy-based electricity production will be lower as those power stations are often less available than thermal stations. This is true of wind turbines, for example. Therefore, the EC's 20% target for renewable energy-based electricity excluding hydro might not be fully reached in 2020, despite the efforts of some countries (mostly Germany and Scandinavia).
In Europe, 27% of total power stations should be gas plants in 2020. Their strong growth (3.9% per year in 2005-2020) can be explained by several factors: the high efficiency of the new power stations, a nuclear phase-out in several European countries requiring a replacement by power stations of large unit capacity, a better environmental impact than the other fossil fuels with proven technology. The decommissioning of the existing nuclear plants in several European countries (Germany plans to reduce its capacity by 11.7 GW in 2010-2020) should continue at an average pace of -0.8% per year. If the German nuclear phase-out plan (still under discussion) is eventually abandoned, Germany could maintain some nuclear plants, to the detriment of gas power stations.
Renewable energies will see their share grow (both in percentage and absolute terms) although fossil fuels will still account for over 55% of the electricity production in 2020 (58% based on our main scenario). The share of renewables (excluding nuclear power) will remain small, reaching slightly more than 17% in 2010 (653 TWh out of 3,698 TWh), and 20%-22% in 2020 according to scenarios. This is mainly because they remain more expensive than traditional energy sources, making their market penetration difficult beyond mandates. Finally, the substitution of high CO2-emitting fuels (oil or coal) with other lower CO2-emitting fuels (natural gas) will enable emissions to be reduced despite higher electricity production. By 2020, gas (25%-32% of the total production) will be responsible for 29% to 35% of the emissions. By contrast coal, source of 16%-17% of generation, will be responsible for 39%-41% of emissions.
Due to higher electricity production, European CO2 emissions will increase by around 73 Mt between 2010 and 2020 (based on the trend growth scenario) or 170 Mt (based on the strong growth scenario). However, even if the share of renewable energies remains low and electricity is produced to a greater extent with low rather than high CO2-emitting fuels, total emissions will increase more slowly than electricity production. For instance, based on the trend growth scenario, emissions would only rise by 5% if production increased by around 9% between 2010 and 2020. With respect to the EU's 20% emission reduction target by 2020, we see growing divergence between economic growth, energy demand and CO2 emissions, but this alone will not be enough to reduce the electricity sector's emissions.
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Emissions Trading: allegations of double counting are incorrect, 26 November 2007
EU - The Commission has verified and can confirm that the number of allowances put out of circulation (retired) in 2005 and 2006 corresponds to the number of verified emissions reported by companies in 2005 and 2006.
Companies must surrender allowances equivalent to their actual emissions each year to the government. Governments then in turn must retire units to the UNFCCC for the country's overall emissions, but this retirement can involve not only allowances, but also certified emissions reduction units, emission reduction units, etc. Therefore, the country is not required to retire the very same allowances that were surrendered by companies, but only an amount equivalent thereto.
As a result of this flexibility, it is possible that in several cases Member States allocate several times over in the same year or take allowances out of circulation that have never been given to companies but were reserved for new entrants. This way of "accounting" is in line with the relevant legislation (Commission Regulation No 2216/2004 of 21/12/2004 for a standardized and secured system of registries pursuant to Directive 2003/87/EC of the EP and Council and Decision No 280/2004/EC of the EP and the Council).
Any allegation that there would have been double counting is pertinently incorrect.
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Towards a low carbon future: European Strategic Energy Technology Plan, 22 November 2007
EU - The European Commission will present the European Strategic Energy Technology Plan (SET-Plan) (see IP/07/1750). Low carbon technologies will play a vital role in reaching our energy and climate change targets. The main goal of the SET-Plan is to accelerate the development and implementation of these technologies. This background note sets out the details of the SET Plan. Its rationale accompanied by some useful background figures and charts is set out in MEMO/07/494. Technology is vital for reaching energy and climate change objectives
The inter-related challenges of climate change, security of energy supply and competitiveness are multifaceted and require a coordinated response. We are piecing together a far-reaching jigsaw of policies and measures: binding targets for 2020 to reduce greenhouse gas emissions by 20% and ensure 20% of renewable energy sources in the EU energy mix; a plan to reduce EU global primary energy use by 20% by 2020; carbon pricing through the Emissions Trading Scheme and energy taxation; a competitive Internal Energy Market; an international energy policy.
Technology is vital in reaching all the above-mentioned objectives. We need a dedicated policy to accelerate the development and deployment of cost-effective low carbon technologies. To meet the 2020 targets, we need to lower the cost of clean energy and put EU industry at the forefront of the rapidly growing low carbon technology sector. In the longer term, if we are to meet the greater ambition of reducing our greenhouse gas emissions by 60-80% by 2050, new generations of technologies have to be developed through breakthrough in research.
The transition to a low carbon economy will take decades and touch every sector of the economy, but we cannot afford to delay action. Decisions taken over the next 10-15 years will have profound consequences for energy security, for climate change, for growth and jobs in Europe.
Weaknesses in energy innovation today
Since the oil price shocks in the 70s and 80s, Europe has enjoyed inexpensive and plentiful energy supplies. The easy availability of resources, no carbon constraints and the commercial imperatives of market forces have not only left us dependent on fossil fuels, but have also tempered the interest for innovation and investment in new energy technologies. In short, there is neither a natural market appetite nor a short-term business benefit for such technologies. This market gap between supply and demand is often referred to as the 'valley of death' for low carbon energy technologies. Public intervention to support energy innovation is thus both necessary and justified.
Public and private energy research budgets in the EU have declined substantially since 1980s. This has led to an accumulated under-investment in energy research capacities and infrastructures. If EU governments were investing today at the same rate as in 1980, the total EU public expenditure for the development of energy technologies would be four times the current level of investment.
The energy innovation process, from initial conception to market penetration, also suffers from unique structural weaknesses. It is characterised by long lead times, often decades, to mass market due to the scale of the investments needed and the technological and regulatory inertia inherent in existing energy systems. New technologies are generally more expensive than those they replace while not providing a better energy service.
Key technology challenges for the next 10 years
To achieve the 2020 targets a twin-track approach is needed. Reinforced research has to lower costs and improve performance. Pro-active support measures are to create business opportunities, stimulate market development and address the non-technological barriers that discourage innovation and the market deployment of efficient and low carbon technologies.
To achieve the 2050 vision, towards complete decarbonisation, we need to develop a new generation of technologies through major breakthroughs. Even if some of these technologies will have little impact by 2020, it is vital that we reinforce efforts today to ensure that they come on-stream as early as possible. We also have to plan for major organisational and infrastructure changes.
Key EU technology challenges for the next 10 years to meet the 2020 targets:
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Make second generation biofuels competitive alternatives to fossil fuels, while respecting the sustainability of their production;
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Enable commercial use of technologies for CO2 capture, transport and storage through demonstration at industrial scale, including whole system efficiency and advanced research;
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Double the power generation capacity of the largest wind turbines, with off-shore wind as the lead application;
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Demonstrate commercial readiness of large-scale Photovoltaic (PV) and Concentrated Solar Power;
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Enable a single, smart European electricity grid able to accommodate the massive integration of renewable and decentralised energy sources;
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Bring to mass market more efficient energy conversion and end-use devices and systems, in buildings, transport and industry, such as poly-generation and fuel cells;
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Maintain competitiveness in fission technologies, together with long-term waste management solutions;
Key EU technology challenges for the next 10 years to meet the 2050 vision:
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Bring the next generation of renewable energy technologies to market competitiveness;
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Achieve a breakthrough in the cost-efficiency of energy storage technologies;
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Develop the technologies and create the conditions to enable industry to commercialise hydrogen fuel cell vehicles;
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Complete the preparations for the demonstration of a new generation (Gen-IV) of fission reactors for increased sustainability;
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Complete the construction of the ITER fusion facility and ensure early industry participation in the preparation of demonstration actions;
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Elaborate alternative visions and transition strategies towards the development of the Trans-European energy networks and other systems necessary to support the low carbon economy of the future;
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Achieve breakthroughs in enabling research for energy efficiency: e.g. materials, nano-science, information and communication technologies, bio-science and computation.
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What is the Commission proposing?
The SET-Plan proposes to deliver the following results: (i) a new joint strategic planning, (ii) a more effective implementation, (iii) an increase in resources, and (iv) a new and reinforced approach to international cooperation.
1) Joint strategic planning will enable a better orientation of efforts and would be the seed to bring together our researcher and our industry.
Early 2008 the Commission will establish a Steering Group on Strategic Energy Technologies to steer the implementation of the SET-Plan, reinforcing the coherence between national, European and international efforts. The Group, chaired by the Commission, will be composed of high level government representatives from Member States.
In the first half of 2009, to review progress the Commission will organise a European Energy Technology Summit that will bring together all stakeholders in the entire innovation system, from industry to customers, as well as representatives of the European institutions, the financial community and our international partners.
To support the definition of energy technology objectives, as well as to build consensus around the SET-Plan programme, the Commission will establish an open-access information and knowledge management system on energy technologies.
2) For effective implementation we need more powerful mechanisms that can leverage the potential of European industry and researchers.
In 2008 the Commission proposes to launch six new European Industrial Initiatives that will target sectors for which working at Community level will add most value – technologies for which the barriers, the scale of the investment and risk involved can be better tackled collectively.
The initiatives are as follows:
- European Wind Initiative: focus on large turbines and large systems validation and demonstration (relevant to on and off-shore applications).
- Solar Europe Initiative: focus on large-scale demonstration for photovoltaics and concentrated solar power.
- Bio-energy Europe Initiative: focus on 'next generation' biofuels within the context of an overall bio-energy use strategy.
- European CO2 capture, transport and storage initiative: focus on the whole system requirements, including efficiency, safety and public acceptance, to prove the viability of zero emission fossil fuel power plants at industrial scale.
- European electricity grid initiative: focus on the development of the smart electricity system, including storage, and on the creation of a European Centre to implement a research programme for the European transmission network.
- Sustainable nuclear fission initiative: focus on the development of Generation-IV technologies.
- Several initiatives that are already being implemented, or are well advanced in their preparation, serve as illustrative examples: the European fusion research programme and its flagship 'ITER'; the Single European Sky air traffic management research programme (SESAR); the proposed Joint Technology Initiative on Fuel Cells and Hydrogen; and the proposed 'Clean Sky' Joint Technology Initiative on the environmental impacts of aviation.
To bring about a move from today's model of collaborating on projects towards a new paradigm of implementing programmes and to align these programmes with the SET-Plan priorities, the Commission proposes to create a European Energy Research Alliance.
The European Institute of Technology could provide an appropriate vehicle to realise this ambition, through a Knowledge and Innovation Community on energy and climate change.
The Commission proposes to initiate in 2008 an action on European energy infrastructure networks and systems transition planning. It will contribute to optimise and harmonise the development of low carbon integrated energy systems across the EU and its neighbouring countries. It will help the development of tools and models for European level foresight in areas such as smart, bi-directional electricity grids, CO2 transport and storage and hydrogen distribution.
3) Resources
Implementation of the SET-Plan will help overcome the fragmentation of the European research and innovation base, leading to a better overall balance between cooperation and competition. Encouraging more focus and coordination between different funding schemes and sources will help to optimise investment.
Two challenges need to be addressed: mobilising additional financial resources, for research and related infrastructures, industrial-scale demonstration and market replication projects; and education and training to deliver the quantity and quality of human resources required to take full advantage of the technology opportunities that the European energy policy will create.
At the end of 2008 the Commission intends to present a Communication on financing low carbon technologies that will address resource needs and sources, examining all potential avenues to leverage private investment, including private equity and venture capital, enhance coordination between funding sources and raise additional funds.
4) International cooperation should be a fundamental pillar in our European strategy.
We need to take our international cooperation on energy technology to a new dimension. The measures proposed in the SET-Plan (e.g. the Steering Group, European Industrial Initiatives and the European Energy Research Alliance) should bring about a reinforced international cooperation strategy. We also need to ensure that the EU increasingly speaks with one voice in international fora, where appropriate, to achieve a more coherent and stronger partnership effect.
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UNFCCC: Emissions of industrialized countries rose to all time high in 2005
(Bonn, 20 November 2007) – According to data submitted to the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC), the total greenhouse gas emissions of 40 industrialized countries rose to an all-time high in 2005, continuing the upward trend of the year before.
The increases in emissions came from both the continued growth in highly industrialized countries and the revived economic growth in former East bloc nations. At the sectoral level, emissions from the transport sector grew at the highest rate. Taken together, the countries that signed and ratified the Kyoto Protocol are projected to achieve reductions on the order of 11 per cent for the first Kyoto commitment period, from 2008 to 2012, provided policies and measures adopted by these countries deliver the reductions as projected. The Kyoto Protocol commits industrialized countries to a 5 per cent reduction target in 2008-2012 compared to 1990 levels.
But whilst the European Union as a whole is projected to achieve its objective making use of the “Kyoto mechanisms” such as emissions trading, other Kyoto Parties are projected to see an upward trend in emissions.
“For the totality of Kyoto signatory countries, reductions of 15 per cent are feasible should additional policies be planned and implemented,” said Yvo de Boer, Executive Secretary of the UNFCCC. “But we should not hide the fact that there is continuing greenhouse gas emissions growth on the part of several countries and that they must do more to reign in their emissions.” To assist Parties in their efforts, the UN Climate Change Secretariat has put in place comprehensive review processes for emissions data and policy-related information, and also established technical infrastructure for emissions trading.
“What is positive is that Parties to the Kyoto Protocol have been taking their commitments very seriously in as much they have been putting in place policies and infrastructure to support Kyoto implementation, including registries for emissions accounting and national systems for the assessment of emission levels,” said Mr. de Boer. “International carbon trading can be taken to a higher level next year,” he added.
Many countries are preparing to make active use of the Kyoto Protocol’s “flexible mechanisms” to reach their goal, which allow industrialized countries to meet their emission reduction obligations in a cost-effective manner. The flexibility mechanisms of the Protocol are emissions trading, the clean development mechanism (CDM) and joint implementation (JI). These mechanisms allow industrialized countries to purchase emission reductions abroad at lower cost than reducing emissions at home, thereby supplementing domestic emission reduction efforts.
The Kyoto Protocol has spawned international emissions trading worth 30 billion dollars in 2006, with the bulk of emissions trading taking place within the European Union’s emissions trading scheme (EU ETS). The EU ETS will be linked to trading under the Kyoto Protocol next year. The Protocol’s CDM is already enjoying rapid growth. The UN Climate Change Secretariat presented the emissions data and projections about two weeks ahead the United Nations Climate Conference in Bali, at which negotiations on a post-2012 climate change deal are expected to be launched.
“A future, ambitious UN climate change regime needs to continue and expand the central elements of the Kyoto Protocol, whilst making use of other policy tools, such as carbon taxes and other effective policy packages,” said Mr. de Boer. “Only then can we ensure that the type of sweeping emission reductions that science tells us are needed are brought about and that the billions of dollars needed for measures to adapt to the inevitable effects of climate change are generated,” the UN’s top climate change official added.
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Climate change: Europe must take adaptation measures to lessen impacts of current and future warming, 03 July 2007
Climate change poses a double challenge: Europe must not only make deep cuts in its greenhouse gas emissions but also take measures to adapt to current and future climate change in order to lessen the adverse impacts of global warming on people, the economy and the environment. This is the key message of a Green Paper published by the European Commission today which sets out options for EU action to help the process of adaptation to climate change across Europe. Adaptation means taking action to cope with changing climatic conditions, for example by using scarce water resources more efficiently or ensuring the frail and elderly are properly cared for during heatwaves. The Green Paper aims to stimulate a broad public debate on adaptation in Europe, starting with a major stakeholder conference hosted by the Commission on 3 July in Brussels.
Environment Commissioner Stavros Dimas said: "People all over Europe will increasingly feel the threatening effects of climate change on their health, jobs and housing, and the most vulnerable members of society will be the hardest hit. We need to fight the battle against climate change on two fronts. We must sharply reduce global greenhouse gas emissions to prevent future climate change from reaching dangerous levels, but at the same time Europe must also adapt to the climate change that is already happening.”
He added: ""Unless the EU and its member states plan a coherent policy response in advance, we could be forced into taking sudden, unplanned adaptation measures to react to increasingly frequent crises and disasters. This would prove far more costly."
Global and European impacts of climate change
The European Union's objective is to limit global warming to no more than 2°C above the preindustrial level, since beyond that threshold the risks of irreversible and possibly catastrophic planetary changes greatly increase. Yet many parts of the world are already struggling with the adverse effects of a 0.76°C rise in the global average temperature, and on current trends the global temperature is likely to increase further by 1.8° to 4°C this century.
Even warming of 2°C will have significant impacts, and Europe will not be spared. Europe has already warmed by almost 1°C over the past century, faster than the global average, and the effects are clearly measurable. For example, glaciers are melting and lowlying ski-resorts are threatened with closure. Southern Europe is projected to dry out further and may become too hot for summer holidays. The summer 2003 heat wave caused an estimated 70,000 premature deaths. Further climate change will heavily affect
Europe's natural environment and nearly all sections of society and the economy, including agriculture, forestry, fisheries, tourism and healthcare. Coastal zones, lowlying deltas and densely populated river plains could be particularly affected by more frequent storms and floods. Climate change could also lead to major population shifts, including in neighbouring regions.
Benefits of adaptation
Given these current and future impacts, adapting to climate change is now an indispensable complement to reducing greenhouse gas emissions. Early action to adapt to climate change could bring clear economic benefits and avoid social disruption by anticipating potential damage and minimising threats to ecosystems, human health, property and infrastructure. Adaptation could also create new economic opportunities, such as new markets for innovative products and services.
Options for EU-level action
All actors will need to be actively involved in adaptation to climate change and efficient coordination between measures in member states, regions and communities will be vital to keep the cost low. The European Union can play an important role in supporting adaptation efforts by adjusting relevant policies, filling knowledge gaps and coordinating strategies.
Certain sectors, such as agriculture, water management, biodiversity protection and fisheries, are largely integrated at EU level through the single market or common policies. It thus makes sense to integrate adaptation goals into these sectors, as well as into EU spending programmes, for instance on regional development, agriculture, fisheries, social, research and rural development.
The Green Paper sets out four lines of priority actions to be considered:
- Early action to develop adaptation strategies in areas where current knowledge is sufficient;
- Integrating global adaptation needs into the EU’s external relations and building a new alliance with partners around the world;
- Filling knowledge gaps on adaptation through EU-level research and exchange of information;
- Setting up a European advisory group on adaptation to climate change to analyse coordinated strategies and actions.
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The EU and Algeria look for new ways to increase Algerian gas supplies to Europe, 26 June 2007
BRÜSSEL (EU-Kommission) - The Algerian gas supplies to the EU could increase by 23,5 billion cubic meters (bcm) per year by 2010 if the common infrastructure projects currently under construction are achieved according to plan. This was one of the conclusions of the bilateral meeting that Energy Commissioner Andris Piebalgs had with his Algerian counterpart, the Minister of Energy and Mines, Chakib Khelil yesterday afternoon, in the margins of the EU-OPEC Ministerial that took place in Vienna (Austria). “Algeria has been a reliable supplier to the EU for more than 30 years, and we are looking forward to deepening our bilateral energy cooperation”, said Commissioner Piebalgs after the meeting.
Strengthening of cooperation with traditional suppliers was identified as one of the main priorities of the EU's external energy policy. Algeria is currently the third largest supplier of gas to the EU. In 2005 it exported more than 55 bcm (19.1% of the EU’s imports) and with the new developments planned it could increase its exports to 78,5 bcm. New gas may come through two new pipelines: Medgaz which would connect Algeria to Almeria on the southeast coast of Spain, and Galsi who would connect Algeria to Cagliari, Sardinia in Italy. Each pipeline would have a capacity of 8 bcm per year. A project to increase the capacity of an existing pipeline which links Algeria and Italy through Tunisia could add 7,5 bcm to current supplies.
The progress of these projects and the negotiation of a Memorandum of Understanding between Algeria and the EU were two of the main subjects of yesterday’s discussion between Commissioner Piebalgs and Minister Khelil. Both parties also talked about the dialogue between OPEC and the EU where Algeria takes over the Presidency later this year.
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Further significant developments in the EU-OPEC Energy Dialogue, 26 June 2007
BRÜSSEL (EU-Kommission) - The fourth ministeriallevel meeting of the energy dialogue between the European Union (EU) and the Organization of the Petroleum Exporting Countries (OPEC) was held in Vienna, Austria, last Thursday. The meeting witnessed further significant developments in a process which was established in December 2004 and which has since resulted in enhanced understanding of each group’s views on major topical issues affecting energy demand and supply. The energy dialogue has, in addition, helped strengthen key channels of communication across the two groups, and its accompanying joint roundtables, workshops and studies provide the facility to take an indepth look at specific topics.
The participants from OPEC were: Mr Mohamed Bin Dhaen Al Hamli, President of the OPEC Conference and Minister of Energy of the United Arab Emirates; Dr Chakib Khelil, Alternate President of the OPEC Conference and Minister of Energy and Mines of Algeria; and Mr Abdalla Salem El Badri, Secretary General of OPEC.
The participants from the EU were: Mr Michael Glos, President of the EU Energy Council and Federal Minister of Economics and Technology of Germany; Mr Andris Piebalgs, European Commissioner for Energy; and Mr Caimoto Duarte, Ambassador of Portugal to Austria, representing the incoming Presidency of the EU.
The EU and OPEC representatives welcomed the progress that had been made since the third meeting of the energy dialogue in Brussels, Belgium, on 7 June 2006. This included: a roundtable on carbon dioxide capture and storage, held in Riyadh, Saudi Arabia, in September 2006; a workshop on the impact of financial markets on oil price and volatility, held in Vienna in December 2006; a roundtable on energy policies, held in Brussels last month; the launch of a joint study on refining; and other meetings and discussions. The representatives expressed their appreciation for the constructive exchanges of views in all these activities.
The first session of today’s meeting featured presentations by the EU on its recently adopted energy policy and by OPEC on oil market developments and prospects.
The EU presented the energy policy and action plan adopted in March 2007 by the European Council, focusing on sustainability, security of supply and competitiveness. This policy aims to enhance cooperation with key energy producers, transiting countries and major consumers, and calls for further development of bilateral and multilateral energy negotiations and agreements on energy. In addition, climate change is a key driver of the intimately combined EU energy and environment policy. And finally, energy technology becomes increasingly instrumental in improving efficiency and renewable energy sources for addressing climate change, by promoting clean fossil fuel and carbon capture and storage (CCS) technologies. With regard to oil market situation the EU is concerned about expected increase in demand and possible supply interruptions over the next few months which could lead to increased tightness in the oil market.
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Emissions trading: Commission adopts decision on Italy's national allocation plan for 2008-2012, 21 May 2007
BRUSSELS (EU - Commission) - The European Commission today concluded the assessment of Italy's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The Commission accepted Italy's national plan on condition that certain changes are made, including a reduction in the total number of emission allowances proposed. The cleared annual allocation is 195.8 million tonnes of CO2 allowances, 6.3% less than Italy had proposed. The Emissions Trading Scheme ensures that greenhouse gas emissions from the energy and industry sectors covered are cut at least cost to the economy, thus helping the EU and its Member States to meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "Europe is fully committed to achieving its Kyoto target and to making the Emissions Trading Scheme a successful weapon for fighting climate change. Today's decision, like our previous ones, sends a strong signal of that commitment. The Commission is assessing all national plans in a consistent way to ensure equal treatment of Member States. This is how we have assessed Italy’s plan, and we will apply the same standards to the remaining plans.”
Following the Commission's decisions in November 2006, January 2007, February 2007, March, April and May 2007, Italy's is the 21st national allocation plan (NAP) for the 2008-2012 period to be assessed by the Commission.
NAPs determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive.
The Commission is responsible for assessing Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full.
The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and Member States' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions. In this context, the Commission is requiring Italy to reduce its proposed cap by 13.2 million tonnes of CO2 equivalent per year, to 195.8 million tonnes.
Other assessment criteria relate to non-discrimination, EU competition and state aid rules, and technical aspects. In this regard, the Commission is requiring further changes to Italy's plan concerning the following issues:
- More information needs to be provided on how Italy will treat new entrants to the emissions trading scheme.
- Italy needs to include combustion installations (e.g. chemical crackers) covered by all other Member States in their allocation plans.
- Several intended expost adjustments must be eliminated.
- The maximum overall amount of Kyoto project credits – credits from emissionsaving projects carried out in third countries under Kyoto Protocol rules - which may be used by operators for compliance purposes may not represent more than approximately 15 % of its annual allocation.
The Commission's approval of the plan will become automatic once Italy has made the appropriate changes.
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New: German Pavilion at CARBON EXPO, 4 April 2007
COLOGNE (Koelnmesse) - For the first time, German exhibitors will make a joint trade show appearance at CARBON EXPO 2007. The leading global Trade Fair and Conference for emissions trading and carbon abatement solutions. Under the coordination of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, German market players will join forces at the stand between May 24, 2007 when all key players in the greenhouse gas (GHG) market gather in Cologne.
At the center of the pavilion will be the joint stand of The Federal Ministry for the Environment and The German Emissions Trading Authority at the Federal Environment Agency (DEHSt). The pavilion aims to present the whole spectrum of German suppliers of technology and services in the GHG market. The Ministry is extending an invitation to German businesses, institutions and consultants from all areas in the GHG market, in particular the Joint Implementation (JI) and Clean Development Mechanism (CDM) market, i.e. project development and technology offers or financial services, to participate. This collective appearance emphasizes the presence of German enterprises at the Trade Fair and provides visitors with easy access to information during their visit to CARBON EXPO.
Over the past four years, CARBON EXPO has grown remarkablywith 185 exhibitors from 50 countries presenting to over 2,000 visitors at CARBON EXPO 2006. This year the organizers. The World Bank, the International Trading Emissions Association (IETA) and Koelnmesse GmbH are expecting around 200 exhibitors from over 50 countries and more than 2,300 visitors.
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First Japanese Pavilion at CARBON EXPO, 4 April 2007
COLOGNE (Koelnmesse) - From May 2 through 4, 2007, CARBON EXPO 2007 - The leading global Trade Fair & Conference for emissions trading and carbon abatement solutions will again be presenting the total value chain for a wellfunctioning emissions trading market. This is the event where all the main greenhouse gas (GHG) market players come together in Cologne. The organizers, the World Bank, the International Trading Emissions Association (IETA) and Koelnmesse GmbH, are expecting around 200 exhibitors from over 50 countries, and over 2.300 participants. This fourth edition will again see numerous international group participation. Following the success of their joint stands over the past years, France, Spain and the United Kingdom will once again have their own pavilion. This year, for the first time, Japan will be present with its own joint stand. The Japan Bank for International Cooperation (JBIC) has organized a joint trade show appearance of Japanese companies operating in the GHG market.
As a government financial institution and a leading financial institution in the carbon market, JBIC is organizing a pavilion for key Japanese market players at CARBON EXPO 2007. JBIC sees CARBON EXPO as a leading global conference and exhibition, as well as a platform with great success and influence in the carbon market. Participation in CARBON EXPO is a perfect opportunity for JBIC to monitor global trends in the market, to meet business partners and develop actual projects. The following companies have already agreed to participate: Nippon Amorphous Metals Co., Ltd., Mitsubishi Heavy Industries, Ltd., Mitsubishi UFJ Securities Co., Ltd., E & E Solutions Inc., JGC Corporation, The Kansai Electric Power Co., Inc.
JBIC considers energy constraints and climate change as the major global challenges of the 21st century. To meet these challenges, Japan committed to reduce GHG emissions to 6% below the level stipulated in the Kyoto Protocol. Current emissions from Japan are far over the Kyoto target. The country has to reduce GHG emissions and use carbon credits for its compliance. Japan is one of the biggest and leading players in the world's carbon markets. Japanese technology for energy efficiency and renewable energy can be used to meet the challenges of avoiding the negative impacts of climate change and economic growth. JBIC sees deployment of advanced technology and the use of carbon credits globally as helping to solve the dilemma.
With the Japanese Pavilion at CARBON EXPO, JBIC would like to introduce key Japanese market players and the Japanese market as a promising global market. Participants will be able to meet with major actors and benefit from their vast experience and advanced technology, such as carbon capture and storage (CCS), turbines and boilers, hydro and biomass power, clean coal, refinery, gasification, amorphous transformers and HFC disposal.
"I am very happy to be participating at CARBON EXPO as the largest carbon exhibition with our Japanese partners. I hope that CARBON EXPO will have the same successful results as last year," says Takashi Hongo, Special Advisor and Director General, Environment Finance Engineering Department,Japan Bank for International Cooperation.
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CARBON EXPO 2007: The international "One-Stop-Shop" platform for Visitors, 28 March 2007
Cologne (Koelnmesse) - CARBON EXPO 2007 - the 4th edition of the leading global Trade Fair & Conference for emissions trading and carbon abatement solutions - is the international event in the greenhouse gas (GHG) market where participants can fulfill their interest and meet their needs all under one roof. From 2-4 May, 2007, the organizers - the World Bank, the International Emissions Trading Association (IETA), and Koelnmesse GmbH - will provide the Visitors with the opportunity to learn, to meet and network, exchange ideas and best practices, and also conduct business. Around 200 exhibitors from over 50 countries will present their projects, technologies and services. With over 170 speakers in 8 Plenary Sessions, 22 Workshops, divided into 3 streams - "Project", "Traders", "Global" - and over 40 Exhibitors Side Events, more than 2.300 Participants are expected at this CARBON EXPO. They will be presented with a comprehensive overview of the market and the latest developments in carbon trading. With over 30 non-Annex I Host Countries present, visitors will have the opportunity to network and do business with leading industrial and service enterprises, representatives of industries and governments of developing countries and economies in transition.
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Emissions trading: Commission approves France's national allocation plan II, 27 March 2007
BRUSSELS (EU-Commission) - The European Commission today approved France's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The Commission accepted the total number of emission allowances proposed by France – equivalent to 132.8 million tonnes of CO2. The approval is conditional on France making one technical change to its plan. France withdrew the first version of its NAP in November 2006, which had proposed allowances totalling 155.6 million tonnes of CO2, and resubmitted an amended NAP in late 2006. The Commission’s decisions on NAPs aim to ensure that Member States meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "I welcome France’s sound revision of its national allocation plan. The French government has clearly shown the need to ensure that the Emissions Trading Scheme remains a successful weapon for fighting climate change that other regions and countries can emulate. The Commission will continue to assess all national plans in a consistent way and to create the scarcity in allowances that is essential for the scheme's success and for meeting Europe's Kyoto targets."
Assessment of the NAPs
Following the Commission's decisions in November 2006, January 2007 and February 2007, today's decisions on France's national allocation plan, as well as on those of the Czech Republic and Poland bring to 17 the number of NAPs for the 2008-2012 period already assessed by the Commission.
NAPs determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive.
The Commission is responsible for assessing Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full. The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and Member States' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions.
Other assessment criteria relate to nondiscrimination, EU competition and state aid rules, and technical aspects.
In this regard, the Commission is requiring changes to France's plan on the grounds that more information needs to be provided on how it will treat new entrants to the emissions trading scheme.
The Commission's approval of the plan will become automatic once France has provided this information.
Summary information on the 17 plans assessed to date:
Approved allowances for 2005-2007, verified emissions in 2005, proposed caps for 2008-2012, approved caps for 2008-2012 and additional emissions covered in 2008 to 2012
|
Member State |
1st period cap |
2005 verified emissions |
Proposed cap 2008-2012 |
Cap allowed 2008-2012 |
Additional emissions in 2008-2012 |
|
Belgium |
62.08 |
55.58 |
63.33 |
58.5 |
5.0 |
|
Czech Rep. |
97.6 |
82.5 |
101.9 |
86.8 |
n.a. |
|
France |
156.5 |
131.3 |
132.8 |
132.8 |
5.1 |
|
Germany |
499 |
474 |
482 |
453.1 |
11.0 |
|
Greece |
74.4 |
71.3 |
75.5 |
69.1 |
n.a. |
|
Ireland |
22.3 |
22.4 |
22.6 |
21.15 |
n.a. |
|
Latvia |
4.6 |
2.9 |
7.7 |
3.3 |
n.a. |
|
Lithuania |
12.3 |
6.6 |
16.6 |
8.8 |
0.05 |
|
Luxembourg |
3.4 |
2.6 |
3.95 |
2.7 |
n.a. |
|
Malta |
2.9 |
1.98 |
2.96 |
2.1 |
n.a. |
|
Netherlands |
95.3 |
80.35 |
90.4 |
85.8 |
4.0 |
|
Poland |
239.1 |
203.1 |
284.6 |
208.5 |
6.3 |
|
Slovakia |
30.5 |
25.2 |
41.3 |
30.9 |
1.7 |
|
Slovenia |
8.8 |
8.7 |
8.3 |
8.3 |
n.a. |
|
Spain |
174.4 |
182.9 |
152.7 |
152.3 |
6.7 |
|
Sweden |
22.9 |
19.3 |
25.2 |
22.8 |
2.0 |
|
UK |
245.3 |
242.4 |
246.2 |
246.2 |
9.5 |
|
SUM |
1751.38 |
1613.11 |
1758.04 |
1593.15 |
51.35 |
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Emissions trading: Commission decides on Czech and Polish national allocation plans II, 27 March 2007
BRUSSELS (EU-Commission) - The European Commission today took decisions on the national plans of the Czech Republic and Poland for allocating CO2 emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). It accepted both national plans on condition that a number of changes are made, including a significant reduction in the total number of emission allowances proposed by each Member State. The cleared annual allocation of CO2 allowances is 86.8 million tonnes for the Czech Republic, 14.8% lower than proposed, and 208.5 million tonnes for Poland, 26.7% lower than proposed. The Emissions Trading Scheme ensures that greenhouse gas emissions from the energy and industry sectors covered are cut at least cost to the economy, thus helping the EU and its Member States to meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: “The European Commission has assessed the Czech and Polish allocation plans in the same fair and consistent way as we are assessing all others. Our decisions are based on Member States’ verified emissions in 2005, give credit for projected economic growth and take into account expected improvements in carbon intensity. Today’s decisions are of vital importance to create the necessary scarcity in the European carbon market and make the Emissions Trading Scheme a successful weapon for fighting climate change.”
Assessment of the NAPs
National allocation plans (NAPs) determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and set out how many CO2 emission allowances each plant will receive. Following the Commission's decisions in November 2006, January 2007 and February 2007, today's decisions on the Czech and Polish national allocation plans, as well as France's bring to 17 the number of NAPsfor the 2008-2012 period already assessed by the Commission.
The Commission's task is to scrutinise Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The criteria seek, among other things, to ensure that plans are consistent with meeting the EU's and Member States' Kyoto commitments, with actual verified emissions reported in the Commission's annual progress reports and with technological potential to reduce emissions. Other criteria relate to nondiscrimination, EU competition and state aid rules, and technical aspects. The Commission may accept a plan in part or in full.
In assessing NAPs, the Commission mainly requires changes where:
- the proposed total of allowances ('cap') is not consistent with meeting the Member State's Kyoto target,
- the proposed cap is not consistent with the Member State’s expected emissions and its technological potential to reduce these. This assessment takes into account the Member State’s independently verified emissions in 2005 and anticipated changes in both its economic growth and carbon intensity,
- the proposed limit on the use by companies of credits obtained from emissionreduction projects in third countries carried out under the Kyoto Protocol's flexible mechanisms is not consistent with the rule that the use of these mechanisms should be supplementary to domestic action to address emissions.
Where modifications are required, the Commission has indicated in each case the steps to be taken by each Member State to make the plan acceptable to the Commission. Approval of the plans will become automatic once these changes have been made.
Information about individual decisions
Czech Republic: Plan accepted with changes required.
1) The annual allocation may not exceed 86.8 million allowances.
2) The allocations to installations benefiting from bonuses for early action and cogeneration may not exceed expected needs.
3) If guarantees for allocations beyond 2012 foreseen in current Czech law are maintained, the Commission would need to examine them under EU state aid rules. The aid in such guarantees is likely to be found incompatible with the Treaty. Under the Directive the Commission would also disallow the implementation of allocation guarantees when the third allocation plan is assessed.4) More information needs to be provided on how new entrants will be treated.
5) The list of installations has to be completed.
Poland: Plan accepted with changes required.
1) The annual allocation may not exceed 208.5 million allowances.
2) The allocations to installations benefiting from bonuses for early action, biomass and co-generation may not exceed expected needs.
3) More information needs to be provided on how new entrants will be treated.
4) Intended expost adjustments must be eliminated.
5) The overall maximum amount of Kyoto project credits which may be used by operators for compliance purposes may not represent an addition to its annual allocation of more than 10 %.
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UNFCCC: Parties discuss approaches to reduce emissions from deforestation, 21 March 2007
BONN (UNFCCC) - Avoiding loss of forests and forest degradation, particularly in the tropics, is one of the largest challenges for developing countries around the world. Forests play an important role in the global climate system, while their conservation links to crucial issues for developing countries, such as poverty alleviation and sustainable development.
About 1 billion people living in extreme poverty depend in part on forests for their livelihood. Loss of forests can result in multiple impacts on humans, societies and ecosystems. Current deforestation rates impose increased threats to biodiversity since tropical forests are home to about 80% of the Earth’s plants and animals.
Despite wide awareness of these impacts, deforestation and landuse change constitute large sources of greenhouse gases on a global scale. While some efforts have been made regarding conservation and sustainable use of the global forest resources, a lot more needs to be done.
Between 7 and 9 March 2007, 140 delegates from 58 UNFCCC Parties and international organizations met in Cairns, Australia, to discuss ways and means to reduce emissions from deforestation in developing countries. The workshop helped improve the understanding of reducing emissions from deforestation and allowed for an open and constructive discussion on policy approaches and positive incentives as well as technical and methodological requirements related to their implementation and assessment of their results and reliability. Participants identified areas of agreement while they recognized that there are divergent points of view and issues that need to be resolved in order to ensure that progress is made on this very important issue.
All agreed on the urgency to take meaningful action to reduce emissions from deforestation. Such action should ensure the integrity of the international climate change process and should be compatible with sustainable forest management, while it contributes to significant reductions of greenhouse gas emissions and to the promotion of cobenefits, such as poverty alleviation and conserving biodiversity.·
Proposals for approaches to reduce emissions from deforestation were presented at the workshop. Some of them were based on funding activities through the use of marketbased mechanisms (e.g. emissions trading of carbon credits, projectbased, programmatic and/or sectoral CDM, barter transaction, payment for ecosystem services, levies on carbon credits from emissions trading and joint implementation), while others were based on the availability of non-market-based financial resources (e.g. ODA, voluntary contributions from governments and NGOs, private sector sponsorship/ donations, taxes on carbon intensive commodities and services, existing funds under the UNFCCC and Kyoto Protocol).
The workshop was part of a two-year process launched at the UN Climate Change Conference in Montreal in December 2005. The results of the meeting will be reported to the twenty-sixth session on the SBSTA starting 7 May, in Bonn, Germany.
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Agreement on the construction of the Burgas-Alexandroupolis oil pipeline, 19 March 2007
BRUSSELS (EU-Commission) - Energy Commissioner Andris Piebalgs welcomed today the signature of an agreement between Russia, Greece and Bulgaria on the construction of the Burgas-Alexandroupolis pipeline. This new infrastructure will link the Bulgarian Black Sea port of Burgas with the Greek Mediterranean port of Alexandroupolis. The Construction of this pipeline will reduce the increasing pressure of maritime oil transport through the Bosphorus and the Dardanel straights.
“In the oil sector, increasing international concern is being expressed over the threat of maritime accidents and the ensuing significant environmental damage caused by the resulting oil spills. Given the increasing density of maritime traffic in the enclosed Black Sea and additional quantities of oil exported from the region, it is of utmost importance to give a higher priority to the alternative of transporting oil by pipelines ", said the Commissioner.
Burgas-Alexandroupolis oil pipeline was considered by the Commission as a Project of pan-European Interest in the INOGATE program which identifies strategic routes for hydrocarbons. The pipeline will have a length of 280 km and a yearly capacity of initially 35 and later 50 million tons of crude oil after its opening in 2009-2010.
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Transport - bottom of the Kyoto class again, 16 March 2007
Kopenhagen (EEA) - Greenhouse gas emissions from transport remain a key, but avoidable, obstacle to the EU reaching its Kyoto climate change targets, according to a new European Environment Agency (EEA) report.
The EEA report, 'Transport and environment: on the way to a new common transport policy' says that European transport policy must deal with spiralling demand for transport. Between 1990 and 2003, passenger transport volumes in the EEA countries grew by 20 %. Air transport grew the most, 96 %, during this period.
While emissions from most other sectors (energy supply, industry, agriculture, waste management) dropped between 1990 and 2004, emissions from transport increased substantially driven by this increase in demand.
Transport is responsible for 21 % of total greenhouse gas (GHG) emissions in the EU-15 (excluding international aviation and maritime transport). Road transport contributes 93 % of the total of all transport emissions. However, emissions from international aviation are growing fastest with an increase of 86 % between 1990 and 2004.
GHG emissions (excluding marine and aviation) from transport grew the most in Luxembourg and Ireland between 1990 and 2004 with respective increases of 156 and 140 %. The average increase in the 32 EEA member countries (see notes) was 25 %.
'By suggesting that we simply deal with the environmental impacts of transport, the midterm review of the 2001 White Paper on Transport could be interpreted as a softening of Europe's line on the need to deal with transport volumes. This cannot be the case,' said Professor Jacqueline McGlade, Executive Director of the EEA.
'We cannot deal with the increasing GHG emissions, noise pollution and landscape fragmentation caused by transport without dealing with the increasing traffic across the spectrum: on our roads and railways, in the air and by sea. Technical advances, such as cleaner, more fuelefficient engines are very important, but we cannot innovate our way out of the emissions problem from transport,' she said.
The report also highlights the significant role that transport subsidies play in terms of directing transport choices. Between 270 and 290 billion Euro is spent annually in Europe in transport subsidies. Almost half of these subsidies go to road transport, one of the least environmentally friendly modes. The EEA will release a detailed study of transport subsidies in March 2007.
Pollution from transport is also having a direct effect on our health. Almost 25 % of the EU-25 population live less than 500 metres from a road carrying more than three million vehicles per year. Consequently, almost four million lifeyears are lost each year due to high pollution levels, the report says.
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Emissions trading: Commission approves Spain's national allocation plan for 2008-2012, 16 February 2007
BRÜSSEL (EU-Kommission) - The European Commission today approved Spain's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The cleared annual allocation is 152.3 million tonnes of CO2, which compares with the cap proposed by Spain of 152.7 million tonnes. Spain's plan for 2008-2012 covers additional emissions in sectors which did not report emissions in 2005 of roughly 6.7 million tonnes of CO2. The approval is conditional on Spain making changes to three further aspects of its plan. The Commission decisions on national plans under ETS aim to ensure that Member States meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "I welcome the Spanish Government's ambitious determination to use the Emissions Trading Scheme as a central component of its effort to comply with its Kyoto target. Its very solid allocation plan helps create the scarcity in allowances that is essential for the scheme's success in the second trading period from 2008 to 2012. The Commission will continue to assess all national plans in a consistent way to ensure that there is scarcity in allowances and that the EU meets its Kyoto target."
Following the Commission's decisions in November 2006, January 2007 and February 2007, Spain's is the 14th national allocation plan (NAP) for the 2008-2012 period to be assessed by the Commission.
NAPs determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive.
The Commission is responsible for assessing Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full. The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and Member States' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions. In this context, the Commission is requiring Spain to reduce its proposed cap by 0.42 million tonnes of CO2 equivalent per year to 152.3 million tonnes.
Other assessment criteria relate to non-discrimination, EU competition and state aid rules, and technical aspects. In this regard, the Commission is requiring changes to Spain's plan on the grounds that:
- The proposed extent of companies' use of credits from emissionreduction projects carried out in third countries under the Kyoto Protocol's flexible mechanisms is not consistent with the rule that these mechanisms should be used to supplement domestic action on emissions. Consequently Spain is required to limit the use of these credits to some 20 % of the allowed allocation.
- More information needs to be provided on how it will treat new entrants to the emissions trading scheme.
- A complete list of all installations has to be provided with the quantities of allowances that it intends to allocate to each installation.
The Commission's approval of the plan will become automatic once Spain has made these changes.
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Kyoto’s clean development mechanism can lead the way to low-carbon future, 27 February 2007
Bonn (UNFCCC) – The Kyoto Protocol’s clean development mechanism (CDM) is a glimpse of the future when it comes to the global response to climate change, says Hans Jürgen Stehr, the newly elected chair of the Executive Board that oversees the mechanism.
„The mechanism’s success in stimulating investment in development projects that reduce green-house gas emissions is a model for other financial and marketbased initiatives,“ Mr. Stehr said.
In just two years, the CDM has resulted in more than 500 registered projects in more than 40 countries in the developing world, stimulating North–South investment and considerable emission reductions in the process – the mechanism is expected to result in emission reductions equivalent to 1.8 billion tonnes of CO2 to the end of 2012.
„Our task now is to refine and improve the mechanism to see that it meets its full potential, as expected by governments,“ Mr. Stehr said.
At the Executive Board’s twenty-ninth meeting, which just concluded in Bonn, decisions were adopted that enhance the oversight of project registration and implementation, to ensure that emission reductions from CDM projects are real, measurable and verifiable.
„The CDM was quick to generate strong interest in the developing world and result in projects on the ground. It’s our challenge to spread CDM even farther afield, with more projects covering a wider range of activities, while maintaining the high quality standard demanded of the process,“ said Rajesh Kumar Sethi, who was elected vicechair of Executive Board.
CDM project implementers earn certified emission reduction units which are bought by countries with emissionreduction commitments under the Kyoto Protocol.
„Market-based mechanisms, like the clean development CDM, will be at the heart of any new agreement taken by the international community to address climate change, and negotiations on that agreement need to progress quickly,“ said Yvo de Boer, Executive Secretary of the United Nations Framework Convention on Climate Change, in welcoming the new chair and vicechair. The first commitment period of the Kyoto Protocol ends in 2012, which means time is short for negotiating a new agreement, given its global scope and the complexity of the task.
Mr. de Boer acknowledged the hard work and considerable contributions of outgoing Executive Board Chair, José Domingos Miguez; Christine Zumkeller, for her role as principal architect and builder of the CDM, who is retiring from the UNFCCC secretariat; and Janos Pasztor, acting coordinator of the Project Based Mechanisms programme at the secretariat for the past year, who is joining the United Nations Environment Programme in Geneva.
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Climate change and the EU’s response, 16 February 2007
BRÜSSEL (EU-Kommission) - Climate change is happening. There is an overwhelming consensus among the world’s leading climate scientists that global warming is being caused mainly by carbon dioxide and other 'greenhouse gases' emitted by human activities, chiefly the combustion of fossil fuels and deforestation. These gases remain in the atmosphere for many decades and trap heat from the sun in the same way as the glass of a greenhouse.
The latest science report from the UN Intergovernmental Panel on Climate Change (IPCC), published on 2 February 2007, represents the most authoritative and up-to-date global scientific consensus on climate change. It finds that the warming of the global climate system is "unequivocal" and accelerating. The global average temperature has risen by 0.76°C over the past 100 years, with Europe warming faster than the average, by around 1°C. The 15 hottest years on record have all occurred during the last 20 years, 11 of them since 1995. The second half of the 20th century was the warmest period in the northern hemisphere for at least 1,300 years. The rate of sea level rise has almost doubled from 18 cm per century between 1961 and 2003 to 31 cm per century in 1993-2003.
The report points to a greater than 90% probability that increases in man-made emissions of greenhouse gases have caused most of the temperature increase seen since the middle of the 20th century. The current atmospheric concentrations of carbon dioxide and methane, another greenhouse gas, are the highest for at least 650,000 years.
The IPCC working group projects that temperatures and sea levels will rise further this century. The global average temperature is projected to increase by between 1.1 and 6.4°C. Its best estimate, assuming no further action is taken to reduce emissions, is a temperature rise of between 1.8 and 4.0°C and a further rise in sea level of between 18 and 59 mm. However, the projections of sea level rise may be underestimated as they do not include the full effects of changes in ice flows.
What impacts is climate change expected to have?
The warming of the global climate system is already evident in the increases in average air and ocean temperatures, widespread melting of snow and ice and rising sea levels. The impacts of climate change are expected to become progressively severe as temperatures rise. There is strong scientific evidence that the risks of irreversible and possibly catastrophic changes would greatly increase if global warming exceeded 2°C above the preindustrial temperature. The EU's position is therefore that the objective of global action must be to keep the temperature rise within this 2°C limit.
The impacts of climate change are generally forecast to include the following:
- Extreme weather events - storms, floods, droughts and heat waves - will become more frequent, causing human suffering and economic damage. It is likely that tropical typhoons and hurricanes will become more intense, with larger peak wind speeds and more heavy rain.
- Changes in rainfall patterns will put pressure on water resources in many regions, which will in turn affect both drinking water supplies and irrigation. Increases in the amount of precipitation are very likely in high latitudes and the tropics whereas decreases are likely in most subtropical regions
- Warm seasons will become dryer in the interior of most midlatitude continents, increasing the frequency of droughts and land degradation. This will be particularly serious for areas where land degradation, desertification and droughts are already severe. Developing countries will suffer particularly, and tropical diseases will extend their geographical range
- In Europe agricultural yields are projected to start declining if the temperature rises beyond 2°C above the preindustrial level. With a global temperature increase to 2.5°C above preindustrial levels, 2.4 to 3.1 billion more people worldwide are likely to suffer from water scarcity
- Geographical shifts in the occurrence of different species and/or the extinction of species will occur. Cold weather mammals like polar bears could be especially threatened.
- Projections show that by 2080 cold winters could disappear almost entirely and hot summers, droughts and incidents of heavy rain or hail could become much more frequent.
What about impacts in Europe?
According to the new IPCC projections, the temperature in Europe may climb by a further 4 - 7 °C this century as emissions of greenhouse gases continue building up.
A 2004 report by the European Environment Agency identified a broad range of current and future impacts of climate change in Europe, including the following:
- Almost two out of every three catastrophic events since 1980 have been directly attributable to floods, storms, droughts or heat waves. The average number of such weather and climaterelated disasters per year doubled over the 1990s compared with the previous decade. Economic losses from such events have more than doubled over the past 20 years to around €8.5 billion annually. This is due to several reasons, including the greater frequency of such events but also socioeconomic factors such as increased household wealth, more urbanisation and more costly infrastructure in vulnerable areas.
- The annual number of floods in Europe and the numbers of people affected by them are rising. Climate change is likely to increase the frequency of flooding, particularly of flash floods, which pose the greatest danger to people.
- Glaciers in eight of Europe's nine glacial regions are in retreat, and are at their lowest levels for 5,000 years.
- Climate change over the past three decades has caused decreases in populations of plant species in various parts of Europe, including mountain regions. Some plants are likely to become extinct as other factors, such as fragmentation of habitats, limit the ability of plant species to adapt to climate change.
What are the expected costs of climate change, and of action to control it?
The economic costs of climate change and the economic advantages of taking strong and early further action to control it have been highlighted by the Stern Review of the economics of climate change, commissioned by the UK government and published in October 2006.
The Review has further underlined that the benefits of prompt action to reduce emissions far outweigh the costs, and that the earlier action is taken the less costly it will be. The report estimates that without further action to limit emissions, the damage caused by climate change would eventually reduce global GDP by between 5% and 20% a year.
Unabated climate change could create risks of major disruption to economic and social activity, later this century or early next, on a scale similar to the upheavals caused by the two world wars and the 1930s economic depression, it warns. By contrast, taking early action to stabilise greenhouse gas concentrations at a level that prevents climate change from reaching dangerous proportions would cost around 1% of GDP.
What international agreements are in place to fight climate change?
The United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol provide the international framework for combating climate change.
UNFCCC
The UNFCCC, the first international measure to address climate change, was adopted in May 1992 and came into force in March 1994. So far 189 governments - almost all the world’s governments - have ratified it.
The Convention's goal is to stabilise greenhouse gas concentrations in the atmosphere at a level that prevents dangerous human interference with the climate system. It obliges Parties to establish national programmes for reducing greenhouse gas emissions and to submit regular reports.
It also encouraged industrialised countries to stabilise their greenhouse gas emissions at 1990 levels by the year 2000. The EU comfortably met this target.
The UNFCCC is based on the principle of ‘common but differentiated responsibilities and respective capabilities’. This recognises that while all countries have in interest in controlling climate change, the developed world is responsible for most of the historical buildup of greenhouse gases in the atmosphere and should therefore lead in reducing emissions.
Parties to the UNFCCC meet annually to review progress and discuss further measures. A number of global monitoring and reporting mechanisms are in place to keep track of greenhouse gas emissions.
Kyoto Protocol
In December 1997, in the Japanese city of Kyoto, governments took a further step by adopting a protocol to the UNFCCC - the Kyoto Protocol.
Building on the UNFCCC framework, the Protocol sets legally binding limits on greenhouse gas emissions from originally 38 industrialised countries and the European Community (the EU-15). It also introduces innovative market-based implementation mechanisms - the socalled Kyoto flexible mechanisms - aimed at reducing the cost of curbing emissions.
Under the Protocol, industrialised countries are required to limit or reduce their emissions of six greenhouse gases: carbon dioxide (CO2), the most important and common gas, methane, nitrous oxide, and the industrial gases hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. The overall reduction required amounts to a cut of around 5% below the level in the chosen base year (often 1990), and is to be achieved during the first Kyoto Protocol “commitment period” from 2008 to 2012. A five-year commitment period was chosen rather than a single target year to smooth out annual fluctuations in emissions due to uncontrollable factors such as weather. There are no emission targets for developing countries.
The EU-15 (the 15 countries that were Members of the EU at the time of ratification of the Protocol in 2002) took on a commitment to reduce their combined greenhouse gases emissions to 8% below base year levels (1990 in most cases). Under the EU Decision to ratify the Protocol, this collective target has been translated into differentiated, legally-binding national targets for each EU-15 Member State, ranging from a reduction of 28% by Luxembourg to an increase of 27% for Portugal. Of the 12 Member States that have acceded since 2004, 10 have individual reduction commitments of 6 or 8% under the Protocol. Only Cyprus and Malta do not have Kyoto targets.
The Kyoto Protocol entered into force on 16 February 2005. So far 168 countries and the European Community have ratified it. Two developed countries that originally signed the treaty have not ratified: the US has rejected the Protocol, whereas Australia has decided not to ratify it. This means the Kyoto emission targets now apply to 36 developed countries plus the European Community (EU-15).
What are the Kyoto flexible mechanisms?
The Kyoto Protocol creates three market-based mechanisms, known as the Kyoto flexible mechanisms: emissions trading between governments with Kyoto targets, the Clean Development Mechanism and Joint Implementation.
The aim of these mechanisms is to allow industrialised countries to meet their targets cost-effectively while stimulating investment in, and the transfer of clean technology to, emissions-saving projects in developing countries and economies in transition. The rationale is that emission reductions have the same impact on the atmosphere regardless of where they are made, so it is sensible to make them wherever it costs least. Detailed rules and supervisory structures have been set up to ensure that these mechanisms are not abused.
Emissions trading
Emissions trading can take place between countries with Kyoto targets, ie industrialised nations. Reflecting the emission targets agreed in Kyoto and under the EU ‘burden sharing’ agreement, each country will be assigned a fixed maximum amount of emissions that it may emit over the commitment period (2008-2012). Countries that emit less can sell the unused quota to others that emit more. This will allow reductions to take place where they are cheapest, reducing compliance costs.
Inspired by this model, the EU has developed and implemented its own company-level emissions trading scheme. This ‘cap and trade’ system, launched on 1 January 2005, covers all 27 EU Member States and is the first and biggest international emissions trading scheme in the world. It has developed rapidly and is now driving the fast-expanding global carbon market.
Under the EU Emissions Trading Scheme (EU ETS), Member States set a national ‘cap’ on CO2 emissions from over 10,000 energy-intensive plants (power plants, steel factories, oil refineries, paper mills, and glass and cement installations). Together these installations account for almost half of the EU's CO2 emissions. Within the limits of their national cap, governments issue allowances to each installation to emit a certain level of CO2 each year. These allowances are tradable.
Companies that emit less than the number of allowances they receive can sell the surplus to companies that have problems staying within their limits, or for which emissions reduction measures are more expensive than buying allowances on the market. Any company may also increase its emissions above the level of its allowances by acquiring more allowances from the market.
By putting a price on emissions and a value on emissions saved, the scheme has made climate change a boardroom issue for the companies involved and given them a permanent incentive to minimise CO2 emissions and fully integrate emission costs into their decision making. The system induces operators to make emission cuts where they are cheapest, thereby ensuring that reductions are made at the lowest possible cost to the economy. It also fosters innovation - companies have an incentive to improve their energy efficiency and invest in climate-friendly technologies.
The EU ETS is being closely watched by businesses and governments around the world and serving as an important reference point for others developing their own schemes, eg seven north-eastern US states, California, and states and territories in Australia. The EU has indicated its willingness to link the EU ETS to other cap-and- trade schemes to form a global emissions trading network.
Clean Development Mechanism and Joint Implementation
The Clean Development Mechanism (CDM) and Joint Implementation (JI) allow industrialised countries to achieve part of their emission reduction commitments by investing in emission-saving projects abroad and counting the reductions achieved toward their own commitments. JI covers projects in other industrialised countries with Kyoto targets, while CDM projects are carried out in developing countries. The two mechanisms lower compliance costs, promote the transfer of advanced technologies to developing countries and economies in transition, and foster cooperation between countries with Kyoto targets.
CDM credits can be generated retroactively, from 2000 onward, while JI credits must be generated during the 2008-2012 period. The CDM is thus already operational. A condition for the issue of credits is that the projects result in real, measurable and long-term emission savings that are additional to what would have happened without the projects. Several EU Member States intend to buy CDM and JI credits to help them meet their Kyoto targets. Collectively they have budgetted more than €3 billion to do so.
The EU Emissions Trading Scheme is linked to CDM and JI. Companies covered by the scheme can use emission credits from most types of CDM projects and from JI projects (from 1 January 2008) to offset their emissions in the same way as emission allowances. This link is driving investment in CDM and JI projects by European companies, in addition to the purchases planned by governments.
What will happen if a country misses its target?
The compliance regime for the Kyoto Protocol is among the most comprehensive and rigorous in the international arena. If a Party fails to meet its emissions target, the Protocol requires it to make up the difference in the second commitment period (after 2012), with an additional 30% penalty. It must also develop a compliance action plan, setting out the actions that it will take to meet the target and the timetable for doing so. In addition, its eligibility to “sell” under the Protocol’s international emissions trading system will be suspended.
However, for the EU-15 Member States, the Kyoto Protocol compliance procedures will apply only if the EU-15 as a whole misses its 8% reduction target. Should this occur, each Member State will be held to the target set out in the Decision to ratify the Protocol and the Community will be held to be in non-compliance.
The remaining 10 Member States with Kyoto targets (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) are bound to their individual targets as set out in the Protocol, both under the Protocol’s non-compliance procedures and under EC law.
Member States are committed in EC law to meet their targets, which are enforceable through infringement procedures by the European Commission.
What action is the EU taking to combat climate change?
The fight against climate change is a priority for the European Commission, as it is for EU Member States. EU-level action is an essential complement to Member States' own efforts to reduce greenhouse gas emissions. Combating climate change is the first of the 6th Environmental Action Programme’s four priority areas and one of the main commitments made under the EU Sustainable Development Strategy. The need to reduce emissions has been progressively integrated into key EU policy areas such as agriculture, energy, regional policy and research.
Central to the Commission’s action to ensure the EU and Member States meet their Kyoto targets is the European Climate Change Programme (ECCP), launched in 2000. Under this umbrella, the Commission, Member States and stakeholders have identified and developed a range of cost-effective to reduce emissions. So far, some 35 such measures have been implemented. They include the EU Emissions Trading Scheme and legislative initiatives to promote renewable energy sources for electricity production, expand the use of biofuels in road transport and improve the energy performance of buildings.
A second ECCP was started in October 2005 to identify further cost-effective measures to reduce emissions up to and beyond 2012 and to develop strategies for adapting to the climate change that is already under way. This work has led to the Commission's recent proposals to include aviation in the EU Emissions Trading Scheme from 2011 and to strengthen the EU strategy for reducing CO2 emissions from new cars through legislation. Other areas of ECCP-2 work include reviewing the EU Emissions Trading Scheme with a view to its revision from 2013 and the development of a legislative framework for the environmentally safe use of carbon capture and geological storage technology.
In January 2007 the Commission put forward an integrated package of measures to establish a new energy policy for Europe aimed at stepping up the fight against climate change and boosting the EU's energy security and competitiveness. The proposals put the EU on course towards becoming a low-carbon economy.
The package sets a range of ambitious targets to be met by 2020. Energy efficiency would be improved by 20%, the market share of renewable energy sources increased to 20% and the share of biofuels in transport fuels raised to 10%. On greenhouse gas emissions the Commission proposes that, as part of a new global agreement to prevent climate change from reaching dangerous levels, developed countries should cut their emissions by an average of 30% from 1990 levels. As a concrete first step towards this reduction, the EU would make a firm independent commitment to cut its emissions by at least 20% even before a global agreement is reached and irrespective of what others do.
What progress is the EU making towards the Kyoto targets?
National and EU-level action to reduce greenhouse gas emissions has enabled the EU to ‘decouple’ emissions from economic growth. Between the base year (1990 in most cases) and 2004, the EU-15 reduced its collective emissions by 0.9% while the economy grew by 32%. EU-25 emissions were down by 7.3%. These reductions compare, for instance, with a 15.8% rise in US emissions between 1990 and 2004 as the US economy expanded by 52.6%.
Projections show that the EU-15’s 8% reduction target can be achieved in 2010 provided that all actions planned by Member States are fully implemented and deliver the emission savings anticipated. However, seven EU-15 Member States have projected that they will exceed their emission limits: Austria, Belgium, Denmark, Ireland, Italy, Portugal and Spain (see Annex for details). All of the new EU-10 Member States were on track to achieve their individual targets. If all actions planned are taken, the total EU-25 emissions reduction would reach 10.8% in 2010.
What happens after the Kyoto Protocol's first commitment period?
The increasingly evident changes taking place in the global climate, together with major recent publications such as the Stern Review and the latest IPCC science report, have further underlined the urgent need for further action to control global emissions of greenhouse gases. The window of opportunity to keep global warming below 2°C is narrowing as temperatures rise, and the costs associated with climate change will keep increasing the longer further action is delayed.
The Commission and EU Member States therefore strongly support the development of a new global climate change agreement. This should succeed the Kyoto Protocol's first commitment period at the end of 2012 and provide the international framework for action that is ambitious and comprehensive enough to limit the temperature increase to 2°C.
Talks on post-2012 action were launched at the annual UNFCCC ministerial conference in Montreal in December 2005 at the initiative of the EU and other countries. The talks are taking place on two parallel tracks. On one track, the Parties to the Kyoto Protocol are discussing new emission targets for industrialised countries post-2012. A detailed work programme for these discussions, as well as a comprehensive review of the Protocol to take place in 2008, were agreed at the annual ministerial held in Nairobi in November 2006.
On the second track, the UNFCCC Parties, including those that are outside Kyoto such as the US and Australia, are conducting a dialogue on long-term cooperative action against climate change. This dialogue is scheduled to conclude at the next annual ministerial in December 2007. The EU's view is that it should be followed up by negotiations on a comprehensive global agreement on post-2012 action. Negotiations on this should be completed by the end of 2009 at the latest to ensure the agreement enters into force by the end of Kyoto's first commitment period.
What are the European Commission’s proposals for further action to combat climate change?
The key elements of the EU position on further action were outlined in a Communication published by the Commission in February 2005. They include five elements:
- Broad participation by all major emitting countries
- inclusion of all emitting sectors, including aviation, maritime transport and forestry (to address deforestation)
- increased research and development and uptake of low-carbon technologies,
- continued use of market mechanisms to keep reduction costs low
- adaptation to the impacts of climate change since some effects are unavoidable
The EU Summit in Brussels in March 2005 affirmed these principles and initiated an intensive outreach effort, engaging the EU in dialogues with a range of countries on further action to combat climate change.
The Commission's January 2007 package of energy and climate change measures buildson this earlier work. It includes a Communication setting out concrete proposals for the content of a new global climate change agreement aimed at limiting the temperature rise to 2°C above the pre-industrial level. Remaining within this limit is both technically feasible and economically affordable if the international community acts swiftly.
As mentioned above, the Commission is proposing that developed countries commit to cutting their emissions by an average of 30% from 1990 levels by 2020. As a concrete first step towards the 30% reduction by developed countries, and to set an example to our partners, the EU would make a firm independent commitment to cut its emissions by at least 20% even before a global agreement is reached and irrespective of what others do. The energy-related measures proposed in the January 2007 package, together with measures already in place such as the EU Emissions Trading Scheme, would deliver this reduction.
It would be essential for developing countries – except for the least developed nations – to broaden their contribution as well since their emissions are projected to overtake those from developed countries by around 2020. Developing countries would need to start slowing their emissions growth as soon as possible and then reduce their emissions in absolute terms after 2020.
To control climate change effectively it will also be essential to halt tropical deforestation completely within the next two decades and then reverse it through afforestation or reforestation schemes. Deforestation currently contributes around 20% of global greenhouse emissions, more than transport.
The Commission's analysis shows that these actions by developing and developing countries are the essential next steps if the world is to have a fair chance of staying within the 2°C temperature limit. This will require global emissions to peak before 2025 and then fall by as much as 50% of 1990 levels by 2050. This implies reductions in developed countries' emissions of 60-80% from 1990 levels by mid-century.
How much would this all cost?
The Commission's impact assessment shows that taking action to limit climate change is fully compatible with sustaining global economic growth. Investment in a low-carbon economy will require around 0.5 % of total global GDP over the period 2013–2030. This would reduce global GDP growth by just 0.19 % per year up to 2030, a fraction of the expected annual GDP growth rate of 2.8%, and this is without taking into account associated health benefits, greater energy security and reduced damage from avoided climate change. This is a small insurance premium to pay for significantly reducing the risk of irreversible damage, particularly when compared with the Stern Review's estimate that uncontrolled climate change will cost between 5 and 20% of GDP in the longer term.
Company-level emissions trading schemes such as the EU Emissions Trading Scheme (EU ETS) will be a key tool to ensure that developed countries can reach their future targets cost-effectively. The international framework for combating climate change after 2012 should enable comparable trading schemes in different regions to be linked together. In this way the EU ETS would be the pillar of a global carbon trading network. The scope of the Kyoto Protocol's Clean Development Mechanism should be expanded after 2012, for instance to cover entire national sectors rather than individual projects.
Emission reductions by developing countries are also perfectly feasible without undermining their economic growth or poverty reduction policies. The Commission's impact assessment estimates that implementing policies to control emissions would reduce the overall GDP growth of developing countries in 2020 by a only a very small amount, and this is without taking account of co-benefits such as avoided impacts of climate change. Many policy options are available to developing countries where the benefits can outweigh the costs, for example by increasing energy efficiency, promoting renewable energy, improving local air quality or capturing methane from sources such as landfills as a cheap source of energy.
Annex:
Projected emissions limitations or reductions by EU-25 Member States up to 2010
|
Member State |
Emissions target |
With existing policies and measures |
With additional policies and measures |
With additional measures, Kyoto mechanisms and carbon sinks |
|
|
Commitment |
Projections for 2010 |
Projections for 2010 |
Use of Kyoto mechanisms |
Use of Carbon sinks |
Projections for 2010 |
|
|
(in % of base year) |
(in % of base year) |
(in % of base year) |
(in % of base year) |
(in % of base year) |
(in % of base year) |
|
|
Austria |
-13.0% |
+14.8 % |
+3.3 % |
-8.9 % |
-0.9 % |
-6.5 % |
|
Belgium |
-7.5% |
+1.2 % |
-0.7 % |
-5.8 % |
|
-6.6 % |
|
Czech Republik |
-8.0% |
-24.4 % |
-26.7 % |
|
-0.6 % |
-27.4 % |
|
Denmark |
-21.0% |
+4.2 % |
+4.2 % |
-6.5 % |
-0.7 % |
-3.0 % |
|
Estonia |
-8.0% |
-56.5 % |
-60.0 % |
|
|
-60.0 % |
|
Finland |
0.0% |
+9.9 % |
-1.9 % |
-3.4 % |
+1.3 % |
-4.0 % |
|
France |
0.0% |
+6.4 % |
+0.5 % |
|
-0.6 % |
-0.0 % |
|
Germany |
-21.0% |
-19.8 % |
-21.0 % |
|
|
-21.0 % |
|
Greece |
25.0% |
+34.7 % |
+24.9 % |
|
|
+24.9 % |
|
Hungary |
-6.0% |
-28.5 % |
-28.8 % |
|
|
-28.8 % |
|
Ireland |
13.0% |
+29.6 % |
+29.6 % |
-6.5 % |
-3.8 % |
+19.4 % |
|
Italy |
-6.5% |
+13.9 % |
+4.1 % |
-7.8 % |
-2.1 % |
-5.8 % |
|
Latvia |
-8.0% |
-46.1 % |
-48.6 % |
|
|
-48.6 % |
|
Lithuania |
-8.0% |
-50.5 % |
-50.5 % |
|
|
-50.5 % |
|
Luxembourg |
-28.0% |
-22.4 % |
-22.4 % |
-23.6 % |
|
-46.0 % |
|
The Netherlands |
-6.0% |
+3.6 % |
+0.7 % |
-9.3 % |
-0.1 % |
-8.6 % |
|
Poland |
-6.0% |
-12.1 % |
-12.1 % |
|
|
-12.1 % |
|
Portugal |
27.0% |
+46.7 % |
+42.7 % |
-3.1 % |
-7.8 % |
+31.9 % |
|
Slovakia |
-8.0% |
-22.4 % |
-24.8 % |
|
|
-24.8 % |
|
Slovenia |
-8.0% |
+4.7 % |
-1.7 % |
|
-8.3 % |
-10.0 % |
|
Spain |
15.0% |
+51.3 % |
+51.3 % |
-6.9 % |
-1.9 % |
+42.4 % |
|
Sweden |
4.0% |
-1.0 % |
-1.0 % |
|
-3.0 % |
-3.9 % |
|
United Kingdom |
-12.5% |
-18.8 % |
-23.2 % |
|
-0.5 % |
-23.7 % |
|
EU-15 |
-8.0% |
-0.6 % |
-4.6 % |
-2.6% |
-0.8% |
-8.0 % |
|
EU-10 |
- |
-21.4 % |
-22.4 % |
0.0% |
-0.3% |
-22.6% |
|
EU-25 |
- |
-4.6 % |
-8.1 % |
-2.1% |
-0.7% |
-10.8% |
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UNFCCC: Expert meeting on adaptation for small island developing States (SIDS), 07 February 2007
BEONN (UNFCCC) - The Ministry of Local Government and Environment will host the expert meeting on adaptation for SIDS of the Caribbean and Atlantic Ocean regions, which takes place from February 5 to 7, 2007, in Kingston, Jamaica. It is being organized by the UNFCCC in collaboration with the Regional Office for Latin America and the Caribbean of the United Nations Environment Programme. Participants will include experts from SIDS, developed countries, international organizations and nongovernmental organizations.
Past and recent evidence continue to indicate that SIDS are particularly vulnerable to weatherrelated climatic and environmental natural hazards. Hazards such as tsunamis, tropical cyclones and sea level rise can not only cause damage to already fragile economies and reverse years of development efforts, but also poses significant threats to human lives and livelihoods. For example, Hurricane Ivan caused damage to almost every household in Grenada, Hurricane Jeanne caused over 2,000 fatalities in Haiti alone, and over 100,000 people were made homeless across the Caribbean. There is therefore an urgent need to assess and plan for the expected impacts of climate change.
The meeting offers participating experts the opportunity to exchange information on assessing the impacts of climate change and on their countries’ vulnerability to these changes. The experts will also identify possible areas where further action can be taken to address the adverse effects of climate change, including through planning and implementing concrete adaptation measures in the areas of water resources, agriculture, health, tourism, coastal zones and natural ecosystems. In addition, they will discuss opportunities for disaster risk management and reduction, for example through establishing insurance schemes.
Furthermore, available opportunities for collaboration within and outside SIDS will be discussed as well as the elaboration by representatives from the World Bank, the United Nations Development Programme and the United Nations Environment Programme on how adaptation measures can be supported in the SIDS’ overall efforts to achieve sustainable development.
This expert meeting on adaptation is part of a series of regional adaptation events mandated by the annual Conference of the Parties to the UNFCCC. The first workshop was held in Peru in April 2006 for the Latin American region. The second workshop was held in Ghana in September 2006 for the African region. During the course of this year, another expert meeting for the Pacific and Indian Ocean SIDS and a workshop for the Asian region will be organized. The results of all these events will feed into negotiations at SB 26 and COP 13 on what future action is necessary to advance adaptation in developing countries.
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VATTENFALL AB, ALCAN INC., DUKE ENERGY CORPORATION, INTERNATIONAL EMISSIONS TRADING ASSOCIATION (IETA)
PROMOTING EVOLUTION OF GLOBAL CARBON TRADING, 01 February 2007
DAVOS (IETA) – Vattenfall AB, Alcan Inc., Duke Energy Corporation and the International Emissions Trading Association (IETA) will work with other leading industries and financial institutions to accelerate the evolution of carbon trading as one of the key components to addressing climate change. This cooperation was announced today at a press conference at the World Economic Forum’s annual meeting, where the theme of climate change has been heavily discussed.
”Putting the right price on greenhouse gas (GHG) emissions is key to combating climate change,” said Lars G. Josefsson, President and Chief Executive Officer of the Swedish power company Vattenfall AB. “This is best done by establishing a global emissions trading system which will safeguard that abatement measures will be carried out where they are least costly. As we create a scarcity of emission rights, market forces will unfold and accelerate the breakthrough of new lowemission technologies.”
In January, Vattenfall AB presented its “Global Climate Impact Abatement Map”, an international survey investigating the economics of curbing climate change (https://www.vattenfall.com/climatemap).
Recent developments in other jurisdictions, such as California and the recently announced USCAP initiative by business leaders calling for a cap-and-trade regime in the U.S.A, is a clear signal that business on both sides of the Atlantic is looking for increased regulatory clarity in their strategic decisions."Expanding the GHG market into a global market will ensure that climate change is being addressed effectively, efficiently and takes advantage of business innovation and entrepreneurship, as well as produce a more liquid and competitive market, with one global price for carbon,“ said Daniel Gagnier, Senior Vice President, Corporate and External Affairs, Alcan Inc.
“There is no ‘silver bullet’ for utilities to effectively address climate change,” said Jim Rogers, Chairman, President and Chief Executive Officer, Duke Energy. “We need to drive advancements on all fronts – energy efficiency, renewable energy and advanced clean coal, natural gas and nuclear plants – as we plan to meet our customers’ growing demand for electricity over the next ten years and beyond. We are the nation’s third largest coal generator, fourth largest nuclear generator and second largest in hydroelectric capacity and are pleased to be active participants in USCAP. We look forward to working with the U.S. Congress and others on federal climate change legislation and convinced that the sooner we act the better it will be for our environment, customers and the economy,” he added.
Through the European Union Emissions Trading Scheme (EU ETS) and the project mechanisms of the Kyoto Protocol, Clean Development Mechanism (CDM) and Joint Implementation (JI), there is currently a price for carbon, which allows companies that have regulatory obligations in Europe, to make everyday business decisions. At the same time, a price on the tonne of carbon reductions has catalyzed interest in developing countries, in projects that address long time issues, now being addressed for the first time, such as waste management.
“A global carbon price is what business needs to make informed decisions and we are moving rapidly in that direction. We will learn more as we try it, we will make corrections, but there is no going back,” concluded Andrei Marcu, President and Chief Executive Officer, IETA.
Vattenfall AB, the largest generator of heat in Europe and the fourth biggest producer of electricity, generates, distributes, sells and trades electricity and heat. Vattenfall’s mission is to enhance its customers’ competitiveness, environment and quality of life through efficient energy solutions and worldclass service.
Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With worldclass technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging today’s Alcan is well positioned to meet and exceed its customers' needs. Alcan is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: http://www.alcan.com/.
Duke Energy is a leading energy company focused on electric power and gas distribution operations in the Americas. Duke Energy’s purpose is to create superior and sustainable value for its customers, employees, communities and investors through the production, delivery and sale of energy and energy services, and is committed to health, safety, the environment and its communities. Duke Energy works to achieve superior business results, stretch its capabilities and foster winwin relationships. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
The International Emissions Trading Association (IETA) is a non-profit organization created in June 1999 to establish a functional international framework for trading GHG emissions. Our members include leading international companies from across the carbon trading cycle. They seek to develop an emissions trading regime that results in real and verifiable GHG emission reductions, balancing economic efficiency with environmental integrity and social equity. As of January 2007, the IETA comprises 145 international companies from OECD and non-OECD countries. IETA has formed several partnerships such as with the World Bank and Eurelectric.
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Stricter fuel standards to combat climate change and reduce air pollution, 01 February 2007
BRUSSELS (EU-Commission) - The European Commission today proposed new standards for transport fuels that will reduce their contribution to climate change and air pollution, including through greater use of biofuels. The changes underscore the Commission's commitment to ensuring that the EU combats climate change and air pollution effectively. The proposed standards will not only make the fuels themselves 'cleaner' but will also allow the introduction of vehicles and machinery that pollute less. A key measure foreseen is that, to encourage the development of lower-carbon fuels and biofuels, suppliers will have to reduce the greenhouse gas emissions caused by the production, transport and use of their fuels by 10% between 2011 and 2020. This will cut emissions by 500 million tonnes of carbon dioxide by 2020 - equivalent to the total combined emissions of Spain and Sweden today. A new petrol blend will be established allowing higher content of the biofuel ethanol, and sulphur levels in diesel and gasoil will be cut to reduce emissions of dangerous dust particles.
Environment Commissioner Stavros Dimas said: "This is one of the most important measures in the series of new initiatives the Commission needs to take to step up the fight against global climate change. It is a concrete test of our political commitment to leadership on climate policy and our capacity to translate political priorities into concrete measures. It will further underpin Europe's shift towards the low-carbon economy that is essential if we are to prevent climate change from reaching dangerous proportions. These proposals will also help achieve a significant reduction in the noxious pollutants from transport that can harm our citizens' health, as well as opening the way for a major expansion in the use of biofuels, especially second generation biofuels."
What the new standards will achieve
- A reduction in EU greenhouse gas emissions of 500 million tonnes of carbon dioxide by 2020
- An improvement in the quality of transport fuels and promotion of "second generation" biofuels that will bring bigger emission savings
- Better public health through a reduction in noxious pollutants, in particular due to lower sulphur content of diesel.
Importance of fuel quality specifications
The 1998 fuel quality directive sets common EU specifications for petrol, diesel and gasoil used in road vehicles, inland waterway barges and non-road mobile machinery such as locomotives, earth moving machinery and tractors. Its aim is to protect human health and the environment and ensure a single market in these fuels. The Commission's proposal to revise the directive reflects developments in fuel and engine technology, the growing importance of biofuels and the need both to meet the air quality goals set out in the 2005 Thematic Strategy on Air Pollution and to further reduce the greenhouse gas emissions that are causing climate change.
Proposed changes
The revised directive will introduce an obligation for fuel suppliers to reduce the greenhouse gas emissions that their fuels cause over their lifecycle, ie when they are refined, transported and used. From 2011, suppliers will have to reduce emissions per unit of energy by 1% a year from 2010 levels. This will result in a 10% cut by 2020.
This obligation will promote the further development of low-carbon fuels and other measures to reduce emissions from the fuel production chain, and will help ensure that the fuel sector contributes to achieving the EU's greenhouse gas reduction goals.
To enable a higher volume of biofuels to be used in petrol, a separate petrol blend will be established with a higher permitted content of oxygencontaining additives (socalled oxygenates), including up to 10% ethanol. The different petrol blends will be clearly marked to avoid fuelling vehicles with incompatible fuel. To compensate for an increase in emissions of polluting vapours that will result from greater use of ethanol, the Commission will put forward a proposal for the mandatory introduction of vapour recovery equipment at filling stations later this year. These vapours, known as volatile organic compounds, contribute to the formation of groundlevel ozone pollution, which can cause premature death in people with breathing difficulties or heart problems.
From 1 January 2009 all diesel fuel marketed will have to have an ultralow sulphur content (no more than 10 parts per million). This will cut pollutant emissions, primarily of dust particles ('particulate matter'), the air pollutant most dangerous for human health. This sulphur reduction will in particular facilitate the introduction of new pollutioncontrol equipment such as particle filters on diesel vehicles. From the same date, the maximum permitted content of another dangerous substance in diesel, poly aromatic hydrocarbons (PAHs), will be reduced by onethird. This may reduce emissions not only of PAHs, some of which may cause cancer, but also of particulate matter.
The permitted sulphur content of gasoil for use by non-road machinery and inland waterway barges will also be substantially cut. This too will reduce emissions of particulate matter and allow the introduction of more advanced engines and emission control equipment.
The costs of the different elements have been assessed and, overall, the changes proposed are justified on a costbenefit analysis.
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Emissions trading: Commission decides on second set of national allocation plans for the 2008-2012 trading period, 01 February 2007
BRUSSELS (EU-Commission) - The European Commission today took decisions on two more national plans for allocating CO2 emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The Commission's decisions on the national allocation plans for Belgium and the Netherlands reaffirm its strong commitment to ensuring that the EU and Member States achieve their greenhouse gas emission targets under the Kyoto Protocol. The Commission accepted both national plans on condition that certain changes are made, including a reduction in the total number of emission allowances proposed. The cleared annual allocation for Belgium is 58.5 million tonnes of CO2 allowances and for the Netherlands 85.8 million tonnes. The two plans and the 10 decided on in November 2006 together account for half of all allowances allocated in the first trading period from 2005 to 2007. The Emissions Trading Scheme ensures that greenhouse gas emissions from the energy and industry sectors covered are cut at least cost to the economy, thus helping the EU and its Member States to meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: “Today’s decisions reinforce the strong signal we gave with the first set of decisions in November that Europe is fully committed to achieving its Kyoto targets and to making the Emissions Trading Scheme a successful weapon for fighting climate change that others can emulate. The Commission is assessing all national plans in a consistent way to ensure equal treatment of Member States and to create the necessary scarcity in the European carbon market. This is how we have assessed the plans decided today, and the same standards will be applied to all others. ”
Assessment of the NAPs
National allocation plans (NAPs) determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and set out how many CO2 emission allowances each plant will receive.
The Commission's task is to scrutinise Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The criteria seek, among other things, to ensure that plans are consistent with meeting the EU's and Member States' Kyoto commitments, with actual verified emissions reported in the Commission's annual progress reports and with technological potential to reduce emissions. Other criteria relate to nondiscrimination, EU competition and state aid rules, and technical aspects. The Commission may accept a plan in part or in full.
As with the first assessments, the Commission is requiring changes to the two plans where:
- the proposed total of allowances ('cap') for the 2008-2012 trading period is not consistent with meeting the Member State's Kyoto target,
- the proposed total of allowances is not consistent with expected emissions and the technological potential to reduce emissions, taking into account independently verified emissions in 2005, and anticipated changes in both economic growth and carbon intensity,
- the proposed limit on the use by companies of credits from emissionreduction projects in third countries carried out under the Kyoto Protocol's flexible mechanisms is not consistent with the rule that the use of these mechanisms should be supplementary to domestic action to address emissions.
Where modifications are required, the Commission has indicated in each case the steps to be taken by each Member State to make the plan acceptable to the Commission. Approval of the plan will become automatic once these changes have been made.
The Commission is proceeding with infringement procedures against Denmark and Hungary for not submitting their NAPs yet. The deadline was 30 June 2006.
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Third UNFCCC Workshop on Joint Implementation, 22. January 2007
BONN (UNFCCC) - The third JI workshop organised by the UNFCCC secretariat will be held in Bonn (Germany) on 13-14 February 2007.
The technical workshop will provide an opportunity for interaction between the Joint Implementation Supervisory Committee (JISC) and designated focal points, as well as independent entities and other stakeholders.
Participants will exchange their experiences with a view to improving their understanding of each others’ roles, the environment in which projects are developed and the overall potential for JI projects. The workshop will allow the JISC to take into account the various concerns and suggestions in its further development and operation of the verification procedure under the JISC.
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UNFCCC official proposes global summit on climate change to plan next steps, 19. January 2007
BONN (UNFCCC) – The head of the United Nations Framework Convention on Climate Change (UNFCCC) today proposed the convening of a global summit backed by the UN to plan a future course of action for tackling the crosscutting problem.
Since climate change “affects energy, energy security, economic issues [and] development issues, it really needs to be taken to the level of heads of State and heads of government,” UNFCCC Executive Secretary Yvo De Boer told a press briefing in New York.
The official, who met yesterday with Secretary-General Ban Kimoon, said the UN leader would be an ideal advocate on the issue. “I feel that the Secretary-General of the United Nations is in an excellent position to mobilize that kind of leadership and to help to move the process forward.”
A spokesman for Mr. Ban said today the Secretary-General is well aware of the urgent nature of reversing or stopping climate change and believes that it is “an important issue that has serious consequences for humanity, including social and economic impacts.”
Mr. Ban himself has said, “We must do far better in the mission to halt climate change.” At a news conference earlier this month, he added, “This, too, will be one of my priorities.”
Despite some progress towards positive change made by some of the world’s major emitters, Mr. De Boer pointed out that the issue has reached a major turning point given that developing countries are already burdened by effects of climate change such as prolonged drought and loss of infrastructure.
The current Kyoto Protocol, a 1997 UN treaty mandating targets for reducing greenhouse gases, expires in 2012. Mr. De Boer said that the interests of developing nations must be considered when creating a replacement mechanism after the treaty’s cessation.
“I feel it’s so important to bring the question of climate change back to the UN process, back to the UN Framework Convention on Climate Change where basically all of the interests can be addressed and you can find a solution for after 2012 that really does `represent the diversity of views,” he said.
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PRESS CONFERENCE on climate change, 19. January 2007
BONN (UNFCCC) - The process of taking longterm action on climate change was basically getting stuck, with very diverse interests on the topic motivated, not only by environmental concerns, but by issues of energy and energy security, the Executive Secretary of the United Nations Framework Convention on Climate Change said today.
Given the divergence of views, there had been relatively little progress towards shaping climate change policy after the Kyoto Protocol had reached the end of its first phase in 2012, Yvo de Boer said at headquarters today, following his meeting yesterday with Secretary-General Ban Kimoon just ahead of Mr. Ban’s meeting in Washington, D.C. today with United States President George W. Bush.
The Kyoto Protocol was adopted on 11 December 1997 at the third session of the parties to the Convention, and it entered force on 16 February 2005. Aimed at reducing greenhouse gas emissions worldwide, the Protocol is an internationally and legally binding addition to the nearly universal 1994 Convention, which enjoys a 189 States parties. Based on the view that the climate system is a shared resource whose stability can be affected by industrial and other emissions of carbon dioxide and other greenhouse gases, the treaty sets an overall framework for intergovernmental efforts to tackle the challenge posed by climate change.
Under its terms, Governments share information on greenhouse gas emissions, national policies and best practices; launch national strategies for addressing the emissions and adapting to expected impacts; and cooperate in preparing for adaptation to climate change impacts. According to the Convention’s website, 168 countries and one regional economic integration organization, the European Economic Community, have ratified the Kyoto Protocol.
Providing information today on the tone and substance of his meeting with Mr. Ban, Mr. de Boer said the Secretary-General had emphasized that science was clearly showing the consequences of climate change. Mr. Ban had stressed that climate change had very serious consequences for humanity, including in the social and economic domains, saying that the consequences would be particularly severe for developing countries. Mr. Ban had also said it was very clear to him that the cost of action now was much lower than the potent cost of inaction later on.
In addition, the Secretary-General had confirmed that climate change was a priority for him, and he had confirmed his intention to continue to take leadership on the issue and to help to generate political will, Mr. de Boer further noted. Mr. Ban had also assured the treaty’s Executive Secretary of the complete support of his Office and asked for further input on how to take the process forward. He had emphasized that he was having several important meetings over the coming days and weeks, where he would address the question, including with President Bush today, during which the issue could well be on agenda.
Responding to questions, Mr. de Boer said that countries in the developing world were confronting a host of problems. They were already feeling the impacts of climate change, confronting sea level rise, increasing numbers of storms, sea water intrusion, less snow fall in mountain areas and consequently less rainwater in spring, droughts and fewer crops. Newspapers all over the world were talking about climate change, and he had been struck to hear a representative from Uganda addressing the Economic and Social Council (ECOSOC) not too long ago about a problem in the Great Lakes region of Africa where problems of climate change could potentially lead to the displacement of tens of millions of people.
Also confronting problems associated with climate change, especially sea level rise, were small island States, mainly in the Pacific, and even oil producing countries, which were very concerned that a major source of revenue for them would be harmed by future climate change action, he added.
Replying to another question, he said that the United States and Australia had “basically backed away” from the Kyoto Protocol because they thought it was a “bad instrument”. Large developing countries, such as China, India and Brazil, whose overriding concern was economic growth and poverty eradication, were afraid they would be called on to undertake gas emissions reduction targets in future. That would hurt their economic growth and block them in eradicating poverty.
On the other hand, the European Union was very keen to move ahead, he noted. Just last week, the European Commission had announced that it would be willing unilaterally to reduce its emissions by 20 per cent against 1990 levels and that it would do more if other countries followed. However, certain countries, including in the European Union, were not on track “at all” to meeting their targets under the Kyoto Protocol. The Union as a whole was on track, but individual countries were having problems.
Despite that, he said he did not see countries backing away, and the debate was enjoying a high profile. For example, the issue had recently been debated in Canada and Australia. The opposition leader in Canada had said he was very committed to climate change measures should he win the election.
He reviewed several recent climate change initiatives, including by the Group of 8 industrialized countries, in the framework of the Gleneagles Plan of Action. While those had been very encouraging, they had not included the “major emitters”, nor were the interests of developing countries, especially the poorest, addressed. That was why he felt it was so important to bring the question back to the United Nations process and back to the United Nations Framework Convention, where the interests of all parties could be addressed and a solution found for post-2012, which represented the diversity of views. He sincerely believed it was possible to design a regime that took into account all of those interests.
In terms of what the United Nations could do to help, he said that through the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP) and the World Meteorological Organization, it could help countries predict the consequences of climate change and adapt to them by protecting against sealevel rise, more effectively gathering rain water, changing their agricultural practices to ensure that they could produce more food with less rain, and so forth. A climate change regime could get resources in place to deliver on such efforts, he added.
He said, replying to another question, that taking a position and fighting for it was important, but so was bridgebuilding. Noting the International Energy Agency’s calculation that it would take $20 trillion to meet the energy demands of a growing world over the next 20 to 25 years, either that would be invested in a “dirty way” with a lot of consequences to climate change, or it would be invested in a “clean way” with fewer consequences. It could be invested in a clean way with an international agreement that had carbon financing at its core.
While the United States had “turned its back on the Kyoto Protocol”, it was acting on climate change, he said in response to a further query. It was investing much in technology transfers, and President Bush had indicated in his meeting with Germany’s Prime Minister that the “stale debates of the past” should be left behind, and everyone should move forward on the question of climate change.
Thus, he thought the United States was acting on the question of climate change and was willing to talk about how to act further on the issue. It was just not interested in participating in Kyoto. It was very important not to confuse Kyoto with a lack of interest in the question of climate change, he stressed.
There was no question about abandoning Kyoto, which had put in place a multimillion dollar carbon market and was delivering real resource transfers from the North to the South, so “it would be silly to let that go”, he continued. At same time, given how long it had taken to negotiate and ratify that instrument, it was time now to begin by launching a mandate for the period to follow.
He said that his perfect system for that complicated topic would be a staged approach, involving the following principles: identifying the boundaries for negotiations in a way that made everyone feel that their issues were safeguarded; finding a global solution to that global problem; involving the major developing countries like China, India and Brazil and putting in place incentives since their overriding concern was economic growth and poverty eradication; ensuring that industrialized countries continued to take the lead by adopting ambitious targets since they had caused the bulk of the problem; letting the carbon market dominate the approach, in order to make the cost in the North of implementing the targets as inexpensive as possible; and ensuring technology transfers to and investments in developing countries.
Concurring that a fundamental concern for oil producing countries was an ambitious climate change regime that would impinge on their oil exports, he said those countries should be versed in the benefits of economic diversification and the possibility of producing oil with less green-house gas emissions, as well as how to embark on carbon capture and storage as part of oil refinery. They could also be encouraged to produce hydrogen as an alternative fuel. Those steps, among others, could offer oil producers a perspective that made the demand for less oil less threatening, he said.
He did not see an energy future without nuclear energy, he said to another question. The challenge for nuclear energy was to move forward with a fourth generation of nuclear reactors, which did not have the kinds of problems in terms of safety and waste of the current generation of reactors.
Of the 100 most powerful economies, 52 were companies and not countries, he said to a question about the importance of partnership with business, adding that Governments could not expect to design solutions to climate change on their own.
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Climate change: Commission proposes bringing air transport into EU Emissions Trading Scheme, 20 December 2006
BRUSSELS (European - Commission)- The European Commission today underscored its firm commitment to combating climate change by proposing legislation to bring greenhouse gas emissions from civil aviation into the EU Emissions Trading Scheme (EU ETS). EU emissions from international air transport are increasing faster than from any other sector. This growth threatens to undermine the EU’s progress in cutting overall greenhouse gas emissions. Including civil aviation in the EU ETS is a costeffective way for the sector to control its emissions and implements an approach endorsed by the International Civil Aviation Organization (ICAO). The proposed directive will cover emissions from flights within the EU from 2011 and all flights to and from EU airports from 2012. Both EU and foreign aircraft operators would be covered. Like the industrial companies already covered by the EU ETS, airlines will be able to sell surplus allowances if they reduce their emissions and will need to buy additional allowances if their emissions grow. Any increase in ticket costs resulting from the scheme is expected to be limited, and significantly lower than rises due to oil price changes in recent years.
Environment Commissioner Stavros Dimas said: “Aviation too should make a fair contribution to our efforts to cut greenhouse gas emissions. The Commission will continue to work with our international partners to promote the objectives of a global agreement on aviation. Bringing aviation emissions into the EU Emissions Trading Scheme is a costeffective solution that is good for the environment and treats all airlines equally.”
Growth in aviation emissions
While emissions from domestic flights are covered by the Kyoto Protocol targets, international aviation is not. Moreover, jet fuel for international flights has historically been exempted from taxation. Bilateral air agreements between EU Member States and third countries are being changed to allow this possibility, but this will take time to implement.
Emissions from aviation currently account for about 3% of total EU greenhouse gas emissions, but they are increasing fast – by 87% since 1990 – as air travel becomes cheaper without its environmental costs being addressed. For example, someone flying from London to New York and back generates roughly the same level of emissions as the average person in the EU does by heating their home for a whole year.
The rapid growth in aviation emissions contrasts with the success of many other sectors of the economy in reducing emissions.
Without action, the growth in emissions from flights from EU airports will by 2012 cancel out more than a quarter of the 8% emission reduction the EU-15 must achieve to reach its Kyoto Protocol target. By 2020, aviation emissions are likely to more than double from present levels.
The proposed directive
The proposal for a directive follows up on a September 2005 Communication[1] which concluded that bringing aviation into the EU ETS was the best approach, from an economic and environmental point of view, to tackling the sector's emissions. This was subsequently supported by the Council and European Parliament.
The directive will treat all airlines equally, whether EU-based or foreign. From 2011 all domestic and international flights between EU airports will be covered, and from 2012 the scope will be extended to all international flights arriving at or departing from EU airports. It is estimated that by 2020 CO2 savings of as much as 46%,or 183 million tonnes, could be achieved each year– equivalent for example to twice Austria's annual greenhouse gas emissions from all sources – compared with business as usual.
To limit the rapid growth in aviation emissions, the total number of emission allowances available will be capped at the average emissions level in 2004-2006. Some allowances will be auctioned by Member States but the overwhelming majority will be issued for free on the basis of a harmonised efficiency benchmark reflecting each operator’s historical share of traffic.
To reduce administrative costs, very light aircraft will not be covered, and each operator will be administered by only one Member State.
The directive is part of a comprehensive approach to addressing aviation emissions which also includes more research into greener technologies and improvements in air traffic management.
Impact on ticket prices
Assuming airlines fully pass on any extra costs to customers, by 2020 the price of a typical return flight within the EU could rise by between €1.8 and €9. Longhaul trips could increase by somewhat more depending on the exact journey length, due to their higher environmental impact. Nevertheless, ticket price increases are in any case expected to be significantly lower than the extra costs passed on to consumers due to world oil price increases in recent years.
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Climate change: Commission takes legal action over missing national allocation plans, incomplete emission reports, 12 December 2006
BRUSSELS (European - Commission) - The European Commission has decided to send four Member States final written warnings that they will face Court action unless they rapidly submit national allocation plans for the second trading period of the EU Emissions Trading Scheme from 2008 to 2012. The Commission is also taking infringement action against seven Member States for failing to provide complete reports on their progress in limiting or cutting greenhouse gas emissions.
Environment Commissioner Stavros Dimas said: "The European Emissions Trading Scheme (ETS) plays an important role in fighting climate change and for meeting the EU Kyoto targets. Under the scheme, Member States were obliged to send their national allocation plans by June 30th. Four Member States have not yet submitted theirs and France has recently withdrawn its NAP. For the good functioning of the Emissions Trading Scheme we will have no choice but to take them to court if they do not send their allocation plans soon. It is also important that Member States meet their obligations to provide complete information to the Commission on their emissions progress as soon as possible."
National allocation plans
The Commission is sending final written warnings to Austria, Denmark, Hungary and Italy for failing to submit national allocation plans (NAPs) for the second trading period of the EU Emissions Trading Scheme (EU ETS). This is despite a first written warning sent in. The deadline for submitting the plans was 30 June 2006 and is laid down in the Emissions Trading Directive. If a Member State does not respond to a final written warning, or if the Commission is not satisfied with its response, the Commission can take it to the European Court of Justice.
NAPs fix the total number of emission allowances issued by a Member State and determine how many allowances each individual installation covered by the ETS will receive. This cap makes the NAPs for 2008-2012 an important element in Member States' strategies for achieving their emission targets under the Kyoto Protocol, which have to be met during the same period.
Once Member States submit complete NAPs the Commission has three months to assess them. The Commission attaches a high priority to taking its decisions on all NAPs by early 2007 so that conditions for trading in 2008-2012 are established and known by market operators in good time before the next trading period starts on 1 January 2008. This requires those Member States that have not yet done so to submit their NAPs as soon as possible.
On 29 November the Commission conditionally approved NAPs for 2008-2012 for a first group of 10 Member States: Germany, Greece, Ireland, Latvia, Lithuania, Luxembourg, Malta, Slovakia, Sweden and the UK.
Reporting on emissions progress
The Commission is also taking action against seven Member States for failing to provide complete reports on their progress in limiting or cutting greenhouse gas emissions. These reports are required by a 2004 EU Decision on monitoring emissions and implementing the Kyoto Protocol. They are needed by the Commission to prepare annual reports on Community emissions under the UN Framework Convention on Climate Change and the Kyoto Protocol. The deadline for Member States to submit the reports was 15 January 2006. The seven Member States have provided some but not all of the information needed.
France, Germany, Poland and Slovenia are to receive first written warnings. Estonia, Luxembourg and Spain are being sent final written warnings since they have failed to provide complete reports despite first written warnings earlier this year.
Legal Process
Article 226 of the Treaty gives the Commission powers to take legal action against a Member State that is not respecting its obligations.
If the Commission considers that there may be an infringement of EU law that warrants the opening of an infringement procedure, it addresses a "Letter of Formal Notice" (first written warning) to the Member State concerned, requesting it to submit its observations by a specified date, usually two months.
In the light of the reply or absence of a reply from the Member State concerned, the Commission may decide to address a "Reasoned Opinion" (final written warning) to the Member State. This clearly and definitively sets out the reasons why it considers there to have been an infringement of EU law, and calls upon the Member State to comply within a specified period, usually two months.
If the Member State fails to comply with the Reasoned Opinion, the Commission may decide to bring the case before the Court of Justice. Where the Court of Justice finds that the Treaty has been infringed, the offending Member State is required to take the measures necessary to conform.
Article 228 of the Treaty gives the Commission power to act against a Member State that does not comply with a previous judgement of the European Court of Justice. The article also allows the Commission to ask the Court to impose a financial penalty on the Member State concerned.
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UNFCCC reports on CDM, 11 December 2006
BONN (UNFCCC) - The below list of documents is now available on the UNFCCC CDM website:
(a) The report of the twenty-fourth meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website.
(b) The report of the eleventh meeting of the CDM Afforestation and Reforestation Working Group (AR WG) is now available in the AR WG section of UNFCCC CDM website.
(c) The report of the eighth meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website.
The following proposed new methodologies were sent from the Meth Panel through the DOE to the project participants to invite clarifications to the preliminary recommendations:
NM0185: Khon Kaen fuel ethanol project
NM0188: East Coast Power Plant (S) Sdn. Bhd. 13MW biomass power generation project
NM0187: Permata Hijau Group Cogeneration Biomass Project
NM0191: Vitale SA Biomass Co-Generation Project
Tthe final recommendation of NM0185: "Khon Kaen fuel ethanol project" by the Meth Panel was made available on the CDM website as no clarifications have been received as a response to the preliminary recommendation of the Meth Panel. This recommendation will be under consideration at the next meeting of the CDM Executive Board.
Regarding the cases NM0187, NM0188 and NM0191, the secretariat was provided with official letters from the project participants in which they inform that they wish to withdraw these proposed new methdologies.
In addition, requests for revision of approved methodologies have been received. Further information on these submissions is available on the UNFCCC CDM web site.
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New methodologies submitted, 14 November 2006
BONN (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 13 November - 01 December 2006:
NM0193: SF6 Switch at Dead Sea Magnesium
NM0194: Green House Gas (GHG) emission reduction by ‘Manufacturing of natural surfactant Alpha Olefin Sulphonate (AOS)
NM0195: Rama Newsprint and Papers Limited energy efficiency project, India
NM0196: The 220 MW Egiin Gol Hydroelectric power generation project in Mongolia
NM0197: India – Accelerated Chiller Replacement Program
NM0198: Inoculant distribution in Brazil
NM0199: Green House Gas Emission Reduction by the introduction of Hot Direct reduction Iron in the Electric Arc Furnaces
NM0200: Fuel switch project for generation of cleaner power
NM0201: Cosipar Transport Modal Shift Project
NM0202: AzDRES Power Plant Energy Efficiency and Change in fuel mix
The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Meth Panel at its next meeting and are available in the UNFCCC CDM website:
NM0144-rev: Energy efficiency improvements carried out by an Energy Service Company (ESCO) in Ulaanbaatar, Mongolia to replace old boilers with new ones (the Project)
NM0155-rev: Waste gas utilisation for steam and power generation at RIL Jamnagar refinery
NM0157-rev: Green Lighting CDM project in Shijiazhuang city, China
NM0159-rev: Implementation of an Efficiency Testing, Consumer Labelling and Quality-Assurance Program for Air Conditioners in Ghana
NM0165-rev: Feed switchover from Naphtha to Natural Gas (NG) at Phulpur plant of IFFCO
Technical clarifications to the following proposed new methodologies have been provided:
NM0189: Shanghai Bailonggang Sludge Treatment Project
In addition, requests for revision of approved methodologies and requests for clarification of approved methodologies have been received.
Afforestation and Reforestation methodologies:
The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Working Group on Afforestation and Reforestation (AR WG) at its next meeting and are available in the UNFCCC CDM web site:
ARNM0015-rev: Reforestation as Renewable Source of Wood Supplies for Industrial Use in Brazil
ARNM0020-rev: Afforestation for Combating Desertification in Aohan County, Northern China
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UNFCCC conference opens with warning that climate change may be most serious threat ever to face humankind, 6 November 2006
NAIROBI (UNFCCC) - The United Nations Climate Change Conference - Nairobi 2006 got underway today with calls for action and a stark warning that climate change is fast proving to be one of the greatest challenges in the history of humankind. “Climate change is rapidly emerging as one of the most serious threats that humanity may ever face,“ said the President of the conference, Kenyan Environment Minister Kivutha Kibwana.
The two-week conference, the twelfth Conference of the 189 Parties to the United Nations Framework Convention on Climate Change (UNFCCC) and the second meeting of the 166 Parties to the Kyoto Protocol, is the first UN climate summit in sub-Saharan Africa and is expected to draw around five thousand participants.
Warning that global warming threatened the development goals for billions of the world’s poorest people, conference President Kibwana said: “We face a genuine danger that recent gains in poverty reduction will be thrown into reverse in coming decades, particularly for the poorest communities on the continent of Africa.”
The conference President went on to say that for these communities, scarce resources that would otherwise be channelled into essential projects to further economic development would instead be used for other emergencies, such as health care crises, water shortages or food stock failures. President Kibwana called on Parties meeting in Nairobi to work together to ensure that real action is achieved on the issue of adaptation to climate change. “Past and current greenhouse gas emission levels have already committed us to at least some level of temperature increase, and therefore a certain level of adaptation measures will be needed as a result,” he said. The UNFCCC’s Executive Secretary Yvo de Boer called for specific activities to be agreed within the five-year work plan on impacts, vulnerability and adaptation.
“We expect countries to take decisions in Nairobi that will enhance action on adaptation on the ground,” he said.
Another key outcome expected of the conference is agreement on how to manage the UNFCCC’s Adaptation Fund. The Fund is financed by a share of proceeds generated by the Kyoto Protocol’s clean development mechanism (CDM).
The CDM permits industrialized countries which are members of the Protocol to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits. “Ministers meeting in Nairobi have an opportunity to reach agreement on critical elements of the governance and management of the Adaptation Fund,” the United Nations’ top climate change official said.
Conference President Kivutha Kibwana called on the meeting to address the key obstacles faced by the least developed countries, in particular those in Africa, in participating successfully in the CDM.
He added that after a successful start in May 2006 in Bonn, discussion on future action to mitigate climate change will continue in Nairobi. One track is for negotiating commitments beyond 2012 for countries under the Kyoto Protocol, the other deals with talks under the UNFCCC on the future of the climate change process, with a focus on how to advance development in a sustainable way and on how to realize the full potential of market-based opportunities.
Kivutha Kibwana called for the burden of mitigation to be borne according to each country’s responsibility. Said Minister Kibwana, “We need an equitable and effective future climate change regime that enables us to stabilize atmospheric concentrations of greenhouse gases while at the same time allowing economic development to proceed in a sustainable manner,” he said.
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Africa’s Acute Vulnerability to Climate Change Underlined in New Report , 5 November 2006
NAIROBI (UNFCCC) – Assisting developing countries to adapt to the impacts of global warming, especially those in Africa must be a key focus of the latest round of climate change talks which open tomorrow in Nairobi.
A new report on impacts, vulnerability and adaptation in Africa, released by the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) and based on data from bodies including the UN Environment Programme (UNEP) and the World Meteorological Organization (WMO) indicates that the continent’s vulnerability to climate change is even more acute than had previously been supposed.
It is estimated, for example, that 30 per cent of Africa’s coastal infrastructure could be inundated including coastal settlements in the Gulf of Guinea, Senegal, the Gambia and Egypt. Between 25 per cent and over 40 per cent of species’ habitats in Africa could be lost by 2085. Cereal crop yields will decline by up to five per cent by the 2080s with subsistence crops—like sorghum in Sudan, Ethiopia, Eritrea and Zambia; maize in Ghana, millet in Sudan and groundnuts in the Gambia—also suffering climate-linked falls. Meanwhile part of Africa’s current and future adaptation needs must include improvements in climate and weather monitoring capabilities and better links between climate research and policy-making. Other needs include mainstreaming climate change considerations into development and sectoral plans and programmes, education and awareness-raising for governments, institutions and individuals as well as better forecasting and early warning systems, says the report.
Achim Steiner, United Nations Under-Secretary General and Executive Director of the UN Environment Programme (UNEP), said: “Climate change is underway and the international community must respond by offering well targeted assistance to those countries in the front-line which are facing increasing impacts such as extreme droughts and floods and threats to infrastructure from phenomena like rising sea levels.”
“Part of the action, part of the adaptation response and part of this responsibility to Africa, must include significant improvements in Africa’s climate and weather monitoring capabilities. Then countries on the Continent can better tailor their response in areas from agriculture to heath care and international donors can better understand Africa’s needs now, and in the future,” said Mr Steiner. Michel Jarraud, Secretary-General of the World Meteorological Organisation (WMO) said: ”Africa is the largest of all tropical landmasses and, at 30 million square km, is about a fifth of the world’s total land area. Yet the climate observing system in Africa is in a far worse and deteriorating state than that of any other Continent”. Latest estimates indicate that about 25 per cent out of the Global Climate Observing System surface stations in east and southern Africa are not working and most of the remaining stations are functioning in a less than desirable manner. Around a fifth of the 10 upper air network stations are in a similar state.
“Meanwhile there are also major impacts in highly elevated areas like Mount Kenya and Mount Kilimanjaro whose glaciers, ice caps and run off are important for water supplies. Overall it is estimated that Africa needs 200 automatic weather stations, a major effort to rescue historical data and improved training and capacity building on climate and weather reporting,” he said. With a view to the climate change conference in Nairobi, Yvo de Boer, Executive Secretary of the UNFCCC, said: “Activating the adaptation agenda is critical. It is time to move from establishing the principles to real action on the ground. It will also be important to do further work to better understand how adaptation relates to efforts aimed at poverty eradication, particularly in the context of the achievement of the Millennium Development Goals.”
Fighting climate change must be a two-tier attack. Adaptation is important-- but it is also critical that greenhouse gas emissions are cut by an eventual 80 per cent in order to stabilize the atmosphere for current and future generations.
The new report has been prepared with the help of a team led by Dr. Baglis Osman Elasha, Senior Researcher in the Climate Change Unit of the Higher Council for Environment and Natural Resources in the Sudanese Ministry of the Environment. “We are already seeing climate related changes in my country. The Gum Arabic belt, an economically important crop, has shifted southwards below latitude 14 degrees north and the rains which used to occur from mid June to the end of August now start in mid July until the end of September with important ramifications for agriculture and livelihoods,” she said. The report was designed to inform participants at the African regional workshop on adaptation, which was held from September 21 to 23, 2006 in Accra, Ghana.
At the workshop, 33 African country parties exchanged information on observing climatic changes and assessing their impacts and countries’ vulnerability to these changes. Countries also shared their experiences in planning and implementing concrete adaptation measures in the areas of agriculture and food security, water resources, health and coastal zones. The Ghana workshop followed a first workshop in the series of regional workshops in Peru in April this year, which was held for the Latin American region. Workshops for Small Island Developing States and Asian countries will be organized next year. The results of these workshops will feed into the negotiations at COP 13 on what future action is necessary to advance adaptation in developing countries.
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Report of EB 27 available, 2 November 2006
BONN (UNFCCC) - The report of the twenty-seventh meeting of the CDM Executive Board (29 October- 1 November 2006), including its annexes, is now available on the UNFCCC CDM website
Annexes to the report:
Accreditation
Annex 1 - Revised procedures for accreditation (due to editorial reasons the annex will be available in due course)
Methodologies
Annex 2 - Approved baseline and monitoring methodology AM0041 (based on the case NM0110-rev)
Annex 3 - Approved baseline and monitoring methodology AM0042 (based on the case NM0133-rev)
Annex 4 - Approved baseline and monitoring methodology AM0043 (based on the case NM0151-rev)
Annex 5 - Revision of the approved methodology AM0034
Annex 6 - Revision of the approved methodology ACM0006
Annex 7 - Revision of the approved methodology AM0025
Annex 8 - Revision of the approved methodology AM0028
Annex 9 - Combined tool to identify the baseline scenario and demonstrate additionality
Annex 10 - Guidance on criteria for consolidations and revisions of methodologies
Matters relating to the registration of CDM project activities
Annex 11 - Scope of review related to project 454 (registration)
Annex 12 - Scope of review related to project 499 (registration)
Annex 13 - Scope of review related to project 522 (registration)
Annex 14 - Scope of review related to project 530 (registration)
Annex 15 - Clarifications on procedures for review under paragraph 41 of the CDM modalities and procedures (version 5)
Matters relating to the issuance of CERs and the CDM Registry
Annex 16 - Clarifications on procedures for review under paragraph 65 of the CDM modalities and procedures (version 2)
Resources
Annex 17 - Revised management plan (MAP)(due to editorial reasons the annex will be available in due course)
Annex 18 - Status of pledges to support 2006 CDM activities
Other business
Annex 19 - Regional distribution of clean development mechanism project activities
Annex 20 - Provisional agenda for EB28
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JI: Opening of call for experts, 2 November 2006
BONN (UNFCCC) - At its fourth meeting, the Joint Implementation Supervisory Committee (JISC) requested the secretariat to launch a public call for experts to establish rosters of experts for assessment team members under the JI accreditation procedure. The JISC encourages experts having an experience as assessment team members under the CDM accreditation procedure to apply. The call for experts is available through the main page of the UNFCCC JI website.
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2006 UNFCCC greenhouse gas data report points to rising emission trends, 30 October 2006
BONN (UNFCCC) – The secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) today released new data showing an upward trend in emissions of industrialized countries in the period 2000–2004.
The UNFCCC report ‘Greenhouse Gas Data, 2006’ constitutes the first complete set of data submitted by all 41 industrialized Parties of the Convention to the Bonn-based secretariat.
According to the secretariat, in the period 1990–2004, the overall emissions of industrialized countries decreased by 3.3 per cent. However, this was mostly due to a 36.8 per cent decrease in emissions on the part of economies in transition of eastern and central Europe (EITs). Within the same time-period, the greenhouse gas emissions of the other industrialized Parties of the Convention grew by 11.0 per cent. “The worrying fact is that EITs, which were mostly responsible for the overall emissions reductions of industrialized countries so far, as a group have experienced an emission increase of 4.1 per cent in the period 2000-2004,” said UNFCCC Executive Secretary Yvo de Boer.
“This means that industrialized countries will need to intensify their efforts to implement strong policies which reduce greenhouse gas emissions,” he added. In particular, transport remains a sector where emission reductions are urgently required but seem to be especially difficult to achieve. Emissions from transportation grew by 23.9 per cent from 1990 to 2004. According to the released data, the joint emissions of industrialized countries that are Parties to the Kyoto Protocol were 15.3 per cent below the 1990 level in 2004, while the individual performance of countries varied.
The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012.
The UN’s chief climate change official pointed out that despite the emission growth in some countries in the period 2000-2004, Parties of the Kyoto Protocol stand a good chance of meeting their individual emissions reduction commitments if they speedily apply the additional domestic mitigation measures they are planning and use the Kyoto Protocol’s market-based flexibility mechanisms.
“The challenge is well understood. After its entry into force in 2005, the Kyoto Protocol is now firmly in place and is guiding industrialized countries in identifying and implementing policy options, including the Protocol’s flexibility mechanisms, to meet their targets under the treaty,” underlined de Boer. One promising option for meeting the Kyoto Protocol targets is the use of the clean development mechanism (CDM). The CDM permits industrialized countries to invest in sustainable development projects that reduce emissions in developing countries and thereby generate tradable emission credits. To date, around 375 CDM projects have been registered, with a total estimated emission reduction potential of more than 600 million tones. More than 900 more projects are in the pipeline. The total estimated emission reduction potential of all projects currently in the CDM pipeline in the period up to 2012 stands at around 1.4 billion tonnes, which amounts to about 12% of what industrialized Kyoto Protocol Parties emitted in 1990.
Last week, the UNFCCC launched the second project-based mechanism under the Kyoto Protocol: joint implementation (JI), which allows developed countries to acquire carbon credits from greenhouse gas emission reducing projects undertaken in other industrialized countries. “In the countries that are members of the European Union, the use of the EU emissions trading scheme is growing in importance,” UNFCCC Executive Secretary Yvo de Boer said.
“We are looking forward to emissions trading between all countries with emission targets under the Kyoto Protocol when the first commitment period starts in 2008. The United Nations Climate Change Secretariat is presently putting in place the required support infrastructure to make this possible.” “At the same time, it is clear that further global action on climate change is urgently needed to generate significant investment flows into clean technology, making use of existing and new market mechanisms,” he added. At the United Nations Climate Change Conference - Nairobi 2006 (6 to 17 November), negotiations on the second commitment period of the Kyoto Protocol will continue, along with a dialogue on the future of the climate change process under the UNFCCC.
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Kyoto Protocol set to help green economies of eastern and central Europe, 26 October 2006
BONN (UNFCCC) – The United Nations Framework Convention on Climate Change (UNFCCC) today launched a new mechanism of the Kyoto Protocol expected to generate significant reductions in greenhouse gas emissions which cause global warming.
With the launch of the Kyoto Protocol’s joint implementation (JI) mechanism, developed countries will be able to acquire carbon credits from greenhouse gas emission reducing projects undertaken in other industrialized countries, in particular central and eastern European transition economies.
These tradable carbon credits can then be used to meet emission reduction or limitation commitments under the Kyoto Protocol. “JI will generate real projects which will help green the economies of central and eastern Europe. With its launch, we can expect emission reductions in the order of several hundred million tonnes of CO2 by the end of the first commitment period of the Kyoto Protocol,” said UNFCCC Executive Secretary Yvo de Boer. The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012. Yvo de Boer drew a parallel to the Kyoto Protocol’s clean development mechanism (CDM), which permits industrialized countries to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits. “The CDM got off to a great start last year. We expect JI to be similarly successful. While smaller in terms of its emissions reduction potential, it is an equivalent to the CDM with regard to cooperation among countries that have targets under the Kyoto Protocol and a credible alternative to the much-feared ‘hot air’." ‘Hot air’ refers to the concern that some countries will have excess emission allowances under the Kyoto Protocol without undertaking specific efforts to reduce emissions and that they could then flood the carbon market by selling them at lower price, reducing the incentive for other countries to cut emissions. The chair of the UNFCCC’s JI Supervisory Committee (JISC), Daniela Stoycheva, said that her Committee would ensure the environmental integrity of the projects.
“We will ensure that only those projects are verified that would not have come about without the Kyoto mechanism being in place,” she said. The first JI projects, ranging from wind farms to forestry projects, are expected to begin undergoing the UNFCCC approval process in the run-up to and during the upcoming United Nations Climate Change Conference in Nairobi (6 to 17 November).
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CDM Meth Panel report, 23 October 2006
BONN (UNFCCC) - The report of the twenty-third meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website
Technical clarifications to the following proposed new methodologies have been provided:
- NM0142-rev: Palm Methyl Ester – Biodiesel Fuel (PME-BDF) production and use for transportation in Thailand
- NM0152-rev: Celpa, Celtins and Cemat grid connection of isolated systems CDM Project
- NM0170: Installation of Carbon Dioxide Recovery (CDR) plant at Indian Farmers Fertiliser Cooperative Ltd (IFFCO), Phulpur Plant
- NM0171: Use of Hydro Heavy Fuel Oil Technology (HHFOT) to improve energy efficiency at a power plant in Pakistan
- NM0172: Methane Leak Reduction From Natural Gas Pipelines
- NM0174: MSW Incineration Project in Guanzhuang, Tianjin City, China
- NM0176: Soluciones Nitrous Oxide Abatement Project
- NM0178: Aerobic thermal treatment of municipal solid waste (MSW) without incineration in Parobé
- NM0179: Waste Heat Recovery based Steam and Power Generation
- NM0180: BIOLUX Benji Biodiesel Beijing Project
- NM0181: Introduction of a new primary district heating system - Houma District Heating project, Shanxi Province, P.R.C
Technical clarifications to the following proposed new A/R methodologies have been provided:
ARNM0013-rev: The Mountain Pine Ridge Reforestation Project
ARNM0026: Carbon Sequestration in Small and Medium Farms in the Brunca Region, Costa Rica (COOPEAGRI- Project)
ARNM0028: Reforestation on degraded land for sustainable wood production of woodchips in the eastern coast of the Democratic Republic of Madagascar
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Saving 20% by 2020: European Commission unveils its Action Plan on Energy Efficiency, 19 October 2006
BRUSSELS (European - Commission)- As a major step toward meeting the unprecedented energy challenges facing the EU, the European Commission today presented its Energy Efficiency Action Plan. The Plan contains a package of priority measures covering a wide range of costeffective energy efficiency initiatives. These include actions to make energy appliances, buildings, transport and energy generation more efficient. Stringent new energy efficiency standards, promotion of energy services, specific financing mechanisms to support more energy efficient products are proposed. The Commission will furthermore set a Covenant of Mayors of the 20-30 most pioneering cities in Europe and will propose an international agreement on energy efficiency. Altogether, over 75 measures are set forth.
"Europeans need to save energy. Europe wastes at least 20% of the energy it uses. By saving energy, Europe will help address climate change, as well as its rising consumption, and its dependence on fossil fuels imported from outside the Union's borders." said Energy Commissioner Piebalgs. "Energy efficiency is crucial for Europe: If we take action now, the direct cost of our energy consumption could be reduced by more than €100 billion annually by 2020; around 780 millions tonnes of CO2 will also be avoided yearly" he pointed out.
The Action Plan, which will be implemented over the next six years, is in response to the urgent call from Heads of State and Government at the Spring European Council this year for a realistic Energy Efficiency strategy. The Plan underlines the importance of minimum energy performance standards for a wide range of appliances and equipment (from household goods such as fridges and air conditioners to industrial pumps and fans), and for buildings and energy services. In combination with performance ratings and labelling schemes minimum performance standards represent a powerful tool for removing inefficient products from the market, informing consumers of the most efficient products and transforming the market to make it more energy efficient. Minimum performance requirements for new and renovated buildings will be developed. Very low energy consumption buildings (or passive houses) will also be promoted.
The Plan emphasises the considerable potential for reducing losses in the generation, transmission and distribution of electricity. The Action Plan proposes targeted instruments to improve the efficiency of both new and existing generation capacity and to reduce transmission and distribution losses.
A comprehensive set of measures for improving energy efficiency in the area of transport is put forward. The Plan recognises that energy savings can be achieved, in particular, by ensuring fuel efficiency of cars, developing markets for cleaner vehicles, ensuring proper tyre pressure and by improving the efficiency of urban, rail, maritime and aviation transport systems. The Plan recognises the importance of changing transportation behaviour.
The Action Plan also calls for appropriate and predictable price signals, essential for improving energy efficiency and overall economic performance.
The Plan also contains a number of additional proposals to raise energy efficiency awareness, such as education and training. Finally, the Plan emphasises the urgent need for energy efficiency issues to be addressed on a global level through international partnerships.
The Action Plan on Energy Efficiency, when fully implemented, can thus improve the Union's competitiveness, improve the living standards of its citizens, boost employment and increase exports of new, energyefficient technology. On an individual level, small changes in our energy consumption patterns will mean saving money, improving the environment and doing our share for our common European goals.
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UNFCCC Executive Secretary calls for new climate compact to combat global warming, 17 October 2006
AMSTERDAM (UNFCCC) - According to UNFCCC Executive Secretary Yvo de Boer, the world urgently needs a long-term legal framework to provide security for carbon markets and investments necessary to combat climate change.
Speaking at the international conference “Make Markets Work for Climate” in Amsterdam, the Netherlands, Mr. de Boer said that whilst it was clear that globally there was strong commitment to address energy security and to green energy, it was also clear that poverty eradication and economic growth were the overriding concerns for developing countries.
“At present, the financial resources provided to developing countries do not suffice to meet the needs for mitigation and adaptation as required under the United Nations Climate Change Convention and its Kyoto Protocol,” the UN’s top climate official said.
Last month, Mr. de Boer pointed out that a 100 billion dollars per year green investment flow to developing countries could be created if industrialized countries agreed to a 60 to 80% emission reduction by mid-century and used market-based mechanisms to help meet these commitments. Referring to this, he added:
“To date, none of the sources of finance available to developing countries have a potential of this scale.”
Citing the need for a new global initiative to combat climate change, Mr. de Boer said that a self-financing climate compact would be the solution to generate financial flows between the North and South required to effectively tackle climate change. “This would ensure sustainable development for the future,” he said. “But it requires a long-term legal framework to be in place.”
The Kyoto Protocol’s clean development mechanism (CDM) for example permits industrialized countries to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits. The CDM already has over 1,200 projects in the pipeline and an overall emission reduction potential of about 1.4 billion tonnes by 2012, amounting to the combined annual emissions of Spain and the United Kingdom. “Whilst the CDM has been gaining speed very rapidly, there would be a significant risk for the value of carbon beyond 2012 without a long term provision for the carbon market. To guarantee continuity for investments, a post 2012 agreement is urgently needed,” said Mr. de Boer.At this year’s United Nations Climate Change Conference in Nairobi (6 to 17 November), governments will continue discussion of the future action on climate change, including commitments for industrialized countries under the Kyoto Protocol beyond 2012. The Parties will also look at measures to expand the CDM by building capacity in developing countries and to make it more accessible to the least developed countries, in particular in Africa.
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Commission proposes €100 million global risk capital fund for developing countries to boost energy efficiency and renewables, 6 October 2006
BRUSSELS (European - Commission) - The European Commission today proposed creating a global risk capital fund to mobilise private investment in energy efficiency and renewable energy projects in developing countries and economies in transition. The Global Energy Efficiency and Renewable Energy Fund (GEEREF) will accelerate the transfer, development and deployment of environmentally sound technologies and thereby help to bring secure energy supplies to people in poorer regions of the world. These projects will also combat climate change and air pollution. The Commission intends to kickstart the fund with a contribution of up to €80 million over the next four years, and expects that financing from other public and private sources will take funding to at least €100 million. This means that it will contribute to the financing of investment projects of a value up to 1 billion euro.
Environment Commissioner Stavros Dimas said: “This is an innovative mechanism. It underlines the Commission’s commitment to help developing countries invest in renewable energy and energy efficiency. It will contribute to bringing clean, secure and affordable energy supplies to the 1.6 billion people around the world who have no access to electricity.” Development Commissioner Louis Michel emphasized that “the lack of access to energy is a major obstacle for regions that already experience problems in accessing to capitals. This Fund can mobilize private investments and become a real source of development, especially in Africa”.
Need for action
One of the the EU's goals is to ensure that the global temperature rises no more than 2ºC above preindustrial levels, since beyond this level the impacts of climate change are forecast to be far more severe. Businessas usual energy scenarios for the coming decades predict high growth in both energy use and greenhouse gas emissions. ‘Accelerated technology’ scenarios demonstrate that it is possible to reduce global electricity demand by one third simply by improving overall energy efficiency. In addition, the growth of oil demand could be halved by raising the share of renewable energy for global electricity generation from today’s 13 per cent to 34 per cent in 2050. This will decrease the impacts on the environment and will in particular bring future carbon dioxide (CO2) emission levels back down to current levels the International Energy Agency says.
While the main responsibility for triggering these changes lies with industrialised countries, scaling up energy efficiency and renewable energy initiatives will greatly benefit developing countries by providing clean and secure energy supplies to people who currently have no access to reliable energy sources.
Overcoming investment barriers
Despite improving prospects, energy efficiency and renewable energy projects face significant difficulties in raising commercial funding. The problems are complex but mainly concern a lack of risk capital, which provides important collateral for lenders. The need for risk capital in developing countries and transition economies is estimated at over €9 billion, far above current levels. Mobilising private sector finance is therefore essential.
How GEEREF will work
GEEREF aims to help overcome these barriers by providing new risksharing and cofinancing options to mobilise international and domestic commercial investments. It will invest in a broad mix of energy efficiency and renewable energy technologies. Priority will be given to deploying environmentally sound technologies with a proven technical track record.
GEEREF will stimulate the creation of regional subfunds tailored to regional needs and conditions, rather than investing in projects directly. Subfunds are envisaged for the African, Caribbean and Pacific (ACP) region, North Africa, non EU Eastern Europe, Latin America and Asia. The focus will be on investments below €10 million as these are mostly ignored by commercial investors and international finance institutions. Corporate finance will be offered to support small and mediumsized enterprises as well as project finance
The Commission intends to put €80 million into GEEREF in 2007-2010, with a first contribution of €15 million next year to kickstart the initiative. Total initial funding from public and commercial sources of €100 million is anticipated, and this is expected to mobilise additional risk capital of at least €300 million and possibly up to €1 billion in the longer term.
Investment amounts at the top end of this range could bring almost 1 Gigawatt of environmentally sound energy capacity to third country markets, serving 1-3 million people with sustainable energy services and saving 1-2 million tonnes of CO2 emissions per year. It would also bring substantial benefits in terms of improved indoor and outdoor air quality and creation of local enterprises, jobs and income.
Next steps
The Commission has appointed Triodos International Fund Management b.v. in conjunction with E+Co, to facilitate the implemention of the GEEREF in close cooperation with the European Investment Bank, the European Bank for Reconstruction and Development, and other interested parties.
The Council, European Parliament and other stakeholders are invited to comment on the GEE-REF initiative and to endorse the Commission’s aim of reaching the initial funding target by mid-2007.
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Report of EB 26 available, 4 October 2006
BONN (UNFCCC) - The report of the twenty-sixth meeting of the CDM Executive Board (26 - 29 September 2006), including its annexes, is now available on the UNFCCC CDM website.
Annexes to the report:
Accreditation
Annex 1 - Revised procedures for accreditation
Methodologies
Annex 2 - Approved baseline and monitoring methodology AM0035 (based on the case NM0135)
Annex 3 - Approved baseline and monitoring methodology AM0036 (based on the case NM0140-rev)
Annex 4 - Approved baseline and monitoring methodology AM0037 (based on the case NM0145)
Annex 5 - Approved baseline and monitoring methodology AM0038 (based on the case NM0146)
Annex 6 - Approved baseline and monitoring methodology AM0039 (based on the case NM0147)
Annex 7 - Approved baseline and monitoring methodology AM0040 (based on the case NM0163)
Annex 8 - Revision of the approved methodology AM0028
Annex 9 - Revision of the approved methodology AM0025
Annex 10 - Revision of the approved methodology AM0027
Annex 11 - Approved consolidated baseline and monitoring methodology ACM0010 (based on the approved methodology AM0006 and AM0016)
Annex 12 - Guidance on double counting in project activities using blended biofuel for energy use
Annex 13 - Recommendation of the Board, to the COP/MOP, on Carbon Capture and Storage projects as CDM projects
Annex 14 - Approved Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site
Issues relating to procedures for afforestation and reforestation project activities
Annex 15 - Approved baseline and monitoring methodology AR-AM0004 (based on ARNM0019).
Annex 16 - Revision to approved afforestation and reforestation baseline and monitoring methodology AR-AM0003.
Annex 17 - Revision to simplified baseline and monitoring methodologies for selected small-scale afforestation and reforestation project activities under the clean development mechanism AR-AMS0001 .
Annex 18 - Proposed procedures to demonstrate the eligibility of lands for afforestation and reforestation project activities.
Annex 19 - Revised Project Design Document Form for Afforestation and Reforestation Project Activities (CDM AR-PDD) - Version 03.
Annex 20 - Revised form: Proposed New Baseline and Monitoring Methodologies for A/R (CDM-AR-NM) - Version 02.
Annex 21 - Revised guidelines for completing the project design document for A/R (CDM AR PDD), the proposed new methodology for A/R: baseline and monitoring (CDM-AR-NM) - Version 05.
Annex 22 - Form for submission of requests for revisions of approved methodologies to the Afforestation and Reforestation Working Group (F-CDM-AR-AM-Rev) - Version 01
Annex 23 - Form for submission of queries from DOEs to the Afforestation and Reforestation Working Group regarding the application of approved A/R methodologies (F-CDM-AR-AM-Subm) - Version 01
Annex 24 - Form for Submission on Small Scale Afforestation / Reforestation Methodologies and Procedures (F-CDM-SSC-AR-Subm) - Version 01
Annex 25 - Guidelines for completing the simplified project design document for small scale A/R (CDM SSC-AR PDD) and the form for submissions on methodologies for small scale A/R CDM project activities (F-CDM-SSC-AR-Subm) - Version -02
Issue relating to procedures for small-scale project activities
Annex 26 - AMS III.J. Avoidance of fossil fuel combustion for carbon dioxide production to be used as raw material for industrial processes
Annex 27 - Conversion factor for solar collectors to calculate output capacity from the area.
Matters relating to the registration of CDM project activities
Annex 28 - Scope of review (registration) - Project 410
Annex 29 - Scope of review (registration) - Project 443
Annex 30 - Scope of review (registration) - Project 474
Matters relating to the issuance of CERs and the CDM Registry
Annex 31 - Scope of review (issuance) - Project 085
Annex 32 - Scope of review (issuance) - Project 150
Annex 33 - Scope of review (issuance) - Project 163
Annex 34 - Procedures for revising monitoring plans in accordance with paragraph 57 of the modalities and procedures for the CDM
Resources
Annex 35 - Status of pledges to support 2006 CDM activities
Other business
Annex 36 - Tentative calendar of meetings for 2007
Annex 37 - Provisional agenda for EB27
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UNFCCC: Opening of call for input on a new operational entity, 27 September 2006
BONN (UNFCCC) - As of tomorrow (28 September 2006), an opportunity to submit comments and information regarding the applicant entity is provided for: "Korean Standards Association, KSA" Background: In accordance with the "Procedure for accrediting operational entities by the Executive Board of the CDM", the UNFCCC CDM web site provides for each applicant entity, over a period of 15 days, the opportunity for Parties, NGOs accredited with UNFCCC or stakeholders to provide comments or information on the applicant entity. The working day prior to the opening of the 15 days period, the secretariat informs the public using the UNFCCC CDM News facility.
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Annual green investment flow of some 100 billion dollars possible as part of fight against global warming, 19 September 2006
RIYADH (UNFCCC) - According to the United Nations Climate Change Secretariat, market-based mechanisms such as the Kyoto Protocol’s clean development mechanism (CDM) have the potential to generate massive investment in developing countries.
Speaking at the first international conference on the CDM in Riyadh, Saudi Arabia, UNFCCC Executive Secretary Yvo de Boer said that industrialized countries could with this or similar mechanisms achieve swingeing cuts in greenhouse gas emissions and at the same time help enhance sustainable development. “Via international carbon finance, there is a potential to generate up to 100 billion dollars per year in green investment flow to developing countries,” Mr. de Boer said. “None of the other types of financial resources available to these countries have a potential of this scale.”
The clean development mechanism (CDM) permits industrialized countries to invest in sustainable development projects and thereby generate tradable emission credits. The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012. Recent scientific findings and growing evidence of impacts of climate change suggest that deep emission cuts by industrialized countries are needed to stabilize the world’s climate, with European leaders referring to reductions on the order of 60 to 80% by the middle of the century.
“The 100 billion dollars a year investment flow would come about if half of the 60 to 80% reduction in emissions is met by industrialized countries through investment in developing countries,” said Mr. de Boer. Looking ahead to the upcoming United Nations Climate Change Conference in Nairobi (6 to 17 November), during which negotiations on the second commitment period of the Kyoto Protocol will continue, Mr. de Boer said that keeping a price on carbon beyond 2012 was critical for mobilizing investment flows to developing countries. The current CDM pipeline is expected to generate some 12 billion dollars in carbon credits by 2012, presuming that the price of a tonne of carbon is in the order of around 10 dollars. If the post-2012 value of credits can be ensured and there is continuing growth of the CDM, the actual income is likely to be much higher,” he said. With the unavoidable effects of climate change becoming ever more apparent, the UN’s top climate official also said it was important to agree on activities which will enable governments to adapt. “For example, it is critical to reach a political agreement in Nairobi on the Adaptation Fund, which will use some of the income generated by the CDM to finance adaptation in developing countries,” he said.
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UNFCCC reports on CDM and requests for revision and for clarification of approved methodologies, 15 September 2006
BONN (UNFCCC) - The below list of documents is now available on the UNFCCC CDM website:
(a) The report of the twenty-second meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website
(b)The report of the tenth meeting of the CDM Afforestation and Reforestation Working Group (AR WG) is now available in the AR WG section of UNFCCC CDM website
(c) The report of the seventh meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website.
In addition, requests for revisions and requests for clarification of approved methodologies have been received.
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New methodologies submitted, 18 August 2006
Bonn (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 17 August - 06 September 2006:
NM0184: Improved heat rates and capacity enhancement of Gas Turbines at RIL Jamnagar, through retrofit for Inlet Air Cooling
NM0185: Khon Kaen fuel ethanol project
NM0186: Increased electricity generation from existing hydropower stations
through Decision Support System optimization in Azerbaijan
NM0187: Permata Hijau Group Cogeneration Biomass Project
NM0188: East Coast Power Plant (S) Sdn. Bhd. 13MW biomass power generation project
NM0189: Shanghai Bailonggang Sludge Treatment Project
NM0190: Caracol Knits Trigeneration Project
NM0191: Vitale SA Biomass Co-Generation Project
NM0192: Recovery and utilization of flare waste gases at the Industrial Complex of La Plata Project
The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Meth Panel at its next meetings and are available in the UNFCCC CDM website:
NM0141-rev: Displacing grid/off-grid steam and electricity generation with less carbon intensive fuels in Aba, Nigeria
NM0150-rev: Ghana efficient lighting retrofit project
NM0152-rev: Celpa, Celtins and Cemat grid connection of isolated systems CDM Project
Technical clarifications to the following proposed new methodologies have been provided:
NM0108-rev: Biodiesel production and switching fossil fuels from petro-diesel to biodiesel in transport sector - 30 TPD Biodiesel CDM Project in Andhra Pradesh, India
NM0134-rev: Paramonga CDM Bagasse Boiler Project
NM0138-rev: American Israel Paper Mill (AIPM) Natural Gas Cogeneration
NM0159: Implementation of an Efficiency Testing, Consumer Labelling and Quality-Assurance Program for Air Conditioners in Ghana
NM0160: Shell Cogeneration Project
NM0161: Mondi Gas Turbine Co-generation in Richards Bay, South Africa
NM0163: Use of calcined ashes and fluorite for clinker production in the Cement Plant of Huichapan, Mexico
NM0165: Feed switchover from Naphtha to Natural Gas (NG) at Phulpur plant of IFFCO
NM0166: The final recommendation of NM0166: "JISL biomethanation of biodegradable waste for thermal applications" by the Meth Panel is also available on the CDM website as no clarifications have been received as a response to the preliminary recommendation of the Panel. This recommendation will be under consideration at the next meeting of the CDM Executive Board.
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JI - Reminder: Open calls regarding Joint Implementation, 3 August 2006
Bonn (UNFCCC) - In future JI News will be sent through the JI News facility only. To be subscribed to this news facility please visit the JI UNFCCC CDM website
Two calls regarding the work of the Joint Implementation Supervisory Committee are still open for inputs/applications:
1) Call for experts (appraisals/reviews)
2) Call for public input on guidance on criteria for baseline setting and monitoring
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Small Scale CDM Call for Public Inputs on Barriers to Developing Energy Efficiency Projects, 2 August 2006
BONN (UNFCC) - The Board at its twenty-fifth meeting noted that the share of registered SSC type II energy efficiency project activities in the CDM project pipeline is small. The Board agreed therefore to launch a call for inputs from the public on the following questions:
(a) Does the current definition (eligibility limits) of type II small-scale CDM project activities pose barriers to developing projects under this type?
(b) Are there other barriers in this regard that relate to methodological issues?
Public comments can be sent to the UNFCCC secretariat before 14 August 2006 (17:00 GMT)
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Methodologies Submitted - Calls for public inputs, 11 July 2006
BONN (UNFCC) - The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Meth Panel at its next meeting and are available in the UNFCCC CDM web site (please note these are not all submissions recently received, only the B cases, as these do not require pre-assessment, public input etc.):
NM0129-rev: Sunflower Methyl-Ester Biodiesel Project in Thailand
NM0142-rev: Palm Methyl Ester – Biodiesel Fuel (PME-BDF) production and use for transportation in Thailand
The following proposals on new afforestation/reforestation baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 10 July - 28 July 2006 (these are new submissions):
ARNM0026: Carbon Sequestration in Small and Medium Farms in the Brunca Region, Costa Rica (COOPEAGRI- Project)
ARNM0027: 'Treinta y Tres' afforestation on grassland
ARNM0028: Reforestation on degraded land for sustainable wood production of woodchips in the eastern coast of the Democratic Republic of Madagascar.>
In addition, the following proposed new baseline and monitoring methodologies have been re-submitted (B) for consideration by the Working Group on Afforestation and Reforestation (AR WG) at its next meeting and are available in the UNFCCC CDM web site:
ARNM0012-rev: Afforestation or reforestation project activity implemented on unmanaged grassland
ARNM0013-rev: The Mountain Pine Ridge Reforestation Project
The Board, at its twenty-fourth meeting, agreed to launch the following four calls for input:
- AM0016
- AM0006
- Definition of policy and programme of activities
- Revised procedure for accrediting operational entities by the Executive Board of the CDM
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JI: Opening of call for experts, 10 July 2006
BONN (UNFCCC) - At its third meeting, the JISC requested the secretariat to launch a public call for experts to appraise determinations or participate in review teams.
The call for experts is available through the main page of the UNFCCC JI website
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UNFCCC reports on CDM, 23 June 2006
BONN (UNFCCC) - The below list of documents is now available on the UNFCCC CDM website:
(a) The report of the twenty-first meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website.
(b) The report of the ninth meeting of the CDM Afforestation and Reforestation Working Group (A/R WG) is now available in the AR WG section of UNFCCC CDM website.
(c) The report of the sixth meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website
The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 22 June - 12 July 2006:
NM0169: Reducing GHG emission in PTA-3 of RIL-Hazira by efficient utilization of energy in the form of fuel, power and steam
NM0170: Installation of Carbon Dioxide Recovery (CDR) plant at Indian Farmers Fertiliser Cooperative Ltd (IFFCO), Phulpur Plant
NM0171: Use of Hydro Heavy Fuel Oil Technology (HHFOT) to improve energy efficiency at a power plant in Pakistan
NM0172: Methane Leak Reduction From Natural Gas Pipelines
NM0173: Switching of fuel from naphtha to natural gas at Essar Power Limited’s 515 MW power plant in Hazira, Gujarat, India, for generation and supply of electricity to Gujarat Electricity Board Grid and to Essar Steel
Limited
NM0174: MSW Incineration Project in Guanzhuang, Tianjin City, China
NM0175: Green House Gas (GHG) emissions reduction by use of ‘Nimin- a natural nitrification inhibitor ’ with Urea in agriculture soils
NM0176: Soluciones Nitrous Oxide Abatement Project
NM0177: Utilization of Coke Oven Gas for Cogeneration
NM0178: Aerobic thermal treatment of municipal solid waste (MSW) without incineration in Pa-robé - RS
NM0179: Waste Heat Recovery based Steam and Power Generation
NM0180: BIOLUX Benji Biodiesel Beijing Project
NM0181: Introduction of a new primary district heating system - Houma District Heating project, Shanxi Province, P.R.C
NM0182: Improved Efficiency in Power System Generation through Advanced SCADA Control Systems and Related Energy Management Protocol in Azerbaijan
NM0183: Essar Oil Limited (EOL) – Avoidance of Green House Gas emissions by application of residuum oil supercritical extraction (ROSE) technology as solvent deasphalting process in petroleum refinery
Requests for revision of approved methodologies and requests for clarification of approved methodologies have been received. Further information on these submissions is available on the UNFCCC CDM web site
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CDM - the mark of 1 billion expected CERs is passed, 9 June 2006
BONN (UNFCCC) - According to the United Nations Climate Change Secretariat, the Kyoto Proto-col’s clean development mechanism (CDM) is as of today estimated to generate around one billion tonnes of emission reductions by the end of 2012. “We have crossed an important threshold with these emission reductions”, said Richard Kinley, acting head of the United Nations Climate Change Secretariat. “It is now evident that the Kyoto Protocol is making a significant contribution towards sustainable development in developing countries”.
“Whilst the mechanism is seeing very strong growth, the growth is still too unevenly distributed amongst regions", said Janos Pasztor, acting coordinator for Project Based Mechanisms with the UN Climate Change Secretariat. "Governments are expected to address this issue with inputs from the CDM Executive Board at the upcoming United Nations Climate Change Conference in Nairobi in November", he said.
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Energy Council takes steps forward in developing a European Energy Policy, 8 June 2006
BRUSSELS (European - Commission) - Energy Commissioner Piebalgs stated: “Today’s Energy Council took important steps towards formulating an integrated European Energy Policy, as requested by Hampton Court European Council and builds on the Commission’s Green Paper for a Sustainable, Competitive and Secure European Energy Policy. In particular, the discussions on international energy policy, the internal electricity and gas market and sustainable energy policy showed clear determination to reach concrete conclusions providing for real progress by the end of this year.”
The Council discussed in detail three main topics: (i) international relations and energy, (ii) the Internal Energy Market and (iii) the development of a sustainable energy policy for Europe that properly balances the objectives of sustainable development and competitiveness.
Regarding international relations and energy, the Council discussions focussed the joint paper recently presented by the Commission and High Representative Solana on “An external policy to serve Europe’s energy interests”, on relations with Russia and on the EU-OPEC Dialogue.
On Russia, the Council recognised the importance of intensifying the existing dialogue, developing a real Energy Partnership with Russia based on mutual selfinterest; the EU with transparent and predictable markets open to Russian supplies and Russia ensuring that the investment is made to meet demand on a fair and transparent basis.
In relation to the Internal Electricity and Gas Markets, the Council discussed inter alia the move towards regional markets as a stepping stone towards a fully integrated European market. The importance of this was widely recognised, as was the need to rapidly complete the internal market, to ensure that every EU business and citizen has the real and effective right to chose his or her supplier.
Finally, the Council discussed progress towards an Energy Efficiency Action Plan and the follow-up of the biomass Action Plan. It also noted the agreement [in principle] for a new Energy Star agreement on energy efficiency.
The Council therefore provided an important occasion to consolidate progress on the emerging European Energy Policy. The next important step will be the Commission’s EU Strategic Energy Review, as requested by the European Council. It is envisaged by the Commission that this Strategic Review, to be presented at the end of this year, will include concrete conclusions on new actions in all of the areas mentioned above.
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European countries are joining a Europeanwide Campaign against Climate Change, 5 June 2006
Over the last few days, countries across Europe have been joining in the European Commission’s campaign against climate change. The campaign entitled “You Control Climate Change” reaches out to people to convince them that small changes in their daily routine can help significantly in the fight against climate change. The EU, which has been leading the fight against climate change, has been urging the US and other major polluting countries to make commitments to reduce the level of greenhouse gases.
“Climate change is the biggest environmental challenge that the planet faces. We cannot afford losing the battle against climate change. We need to engage all actors: we need global commitment, strong EU legislation targeting all major polluters, and we need citizens to do their bit by changing habits - turn down, recycle, walk...”, said European Commissioner Stavros Dimas on the occasion.
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CARBON EXPO 2006 closes after posting outstanding results, 15 May 2006
COLOGNE (Koelnmesse) - The third CARBON EXPO - Global Carbon Market Fair & Conference - closed this Friday after three days of meetings, panel discussions, technology forums, business to business exchanges and public events. Organizers characterized Carbon EXPO 2006 as "a remarkable success both in terms of participants, exhibits and outcomes". More than 200 emission reductions projects from developing countries were presented - according to reports from participants - and a series of contracts for the purchase of emissions rights were concluded or initiated. High level govern-ment representatives from 25 developing countries, invited by the World Bank, attended the Conference.
2,050 participants from 94 countries (2005: 1,500 / 87 countries) attended the event, which was held from 10th to 12th May 2006, with the objective of generating new business opportunities for greenhouse gas emission reductions for private operators and governments from industriali-zed and developing countries. With 187 exhibitors from 50 countries, the trade fair once again proved its value as a multilateral knowledge learning and experiences. The exhibition space inc-reased by 50 percent.
The event's organizers - the World Bank, The International Emissions Trading Association (IE-TA) and Koelnmesse - report that the third CARBON EXPO exceeded their expectations. In a joint statement they said: "For the third year in a row, CARBON EXPO has succeeded in provi-ding an outstanding central platform for this market - a platform that brings together all projects, services, initiatives and developments under one roof. All of the market's important participants attended the event and used the opportunity to gain a comprehensive understanding of this sector and to meet their colleagues for face to face discussions. CARBON EXPO generated fresh mo-mentum for the entire emissions trade and for the CO2 market," concluded James Warren Evans, Environment Director of the World Bank; Andrei Marcu, President and CEO of the IETA; and Wolfgang Kranz, Executive Vice President of Koelnmesse. They expressed full confidence that the market will continue its positive development. "The ‘engines' that are driving the market include the EU Emissions Trading Scheme (EU ETS), and the Clean Development Mechanism of the Kyoto Protocol with transactions by energy-intensive companies that are initiating projects in developing and emerging countries."
The success of Carbon EXPO is now expanding regionally. The three organizers announced that CARBON EXPO ASIA will take place in Beijing/China, in October 2006 .
The sixth annual World Bank carbon market intelligence study, released at CARBON EXPO, 2006, shows a dramatic growth in the global carbon market, led by strong activity in the Europe-an Union's pilot Emissions Trading Scheme (EU ETS). The report which covers the period from January 1, 2005 to March 31, 2006 records a booming global market worth over US $10 billion in 2005, ten times the value of the previous year.
The 2006 Report shows explosive growth in allowance markets, making them for the second year the main driver of growth of the market. European Union trades dominated the carbon mar-ket in terms of value-75 percent in 2005, but almost half of the total volume of greenhouse gas (GHG) emission reductions came from the developing world, making developing countries mea-ningful participants in the drive to reduce climate altering greenhouse gases on the earth.
According to the report "price signals in the carbon market have stimulated innovation especially in developing countries." The market analysis shows that transactions from projects in develo-ping countries and economies in transition totalled 364 million tons of greenhouse gas emission reductions and in the EU ETS, some 322 million tons of allowances were transacted.
The carbon market encompasses both project-based transactions (CDM and JI) where a buyer purchases certified emission reductions from a project that reduces greenhouse gas emissions compared with what would have happened otherwise, and trading of greenhouse gas emissions allowances allocated under existing cap-and-trade regimes such as the EU ETS, as well as the voluntary carbon market, for example in the United States and Australia. The report documents growth on those voluntary markets as well. For example: the U.S.-based Chicago Climate Ex-change has already seen some 1.25 million tons of carbon dioxide equivalent exchanged in the first three months of 2006, compared with 1.45 million over the whole of 2005.
Looking at future trends, the report emphasizes that "the prospects for the project-based market are quite solid, provided the EU does not erect any barriers limiting entry for CDM and JI im-ports for phase II (2008-2012)." Markets now price carbon and this has created the opportunity for the private sector to efficiently support investments to reduce emissions. The long term suc-cess of the carbon market, however, will be judged by its ability to achieve its environmental goals and preventing climate change.
The conference program featured market developments and latest activities initialized by the Eu-ropean Union Trading Sheme (EU ETS) and the Kyoto Mechanism. 22 sessions (workshops and plenaries) provided comprehensive knowledge and a deep insight into the market and its mecha-nism. The subdivision of the conference in line with specific target groups was well accepted and met with the needs of the participants. The high-powered opening plenary was attended by about 600 participants.
A total of 187 companies from 50 countries, 83 percent of which came from abroad, participated in CARBON EXPO 2006, occupying a gross exhibition space of 5,800 m². Including estimates for the last day of the fair, CARBON EXPO 2006 attracted 2,050 trade visitors from some 94 countries, approximately 80 percent of whom came from abroad.
Following three years of great success in Cologne, the partners of CARBON EXPO - The World Bank, IETA and Koelnmesse - have put together CARBON EXPO ASIA in Beijing in China. It will take place from 26th to 27th of October 2006. The new event will - as in Cologne - combine trade fair and conference. Participants will benefit from a conference program with high-level speakers, who will present up-to-date information with the latest developments. Companies are invited to present their projects to a fast moving market.
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Carbon Expo 2006: CO2 Market is maturing, 15 May 2006
COLOGNE (Koelnmesse) - In spite of the downward trend in prices of carbon commodities in the European market in recent weeks, government officials, private sector brokers, traders and market specialist concluded that the global market is maturing and is here to stay and grow.
According to James Warren Evans , Environment Director, World Bank " we have now a global market of US $10 billion dollars" and added "the strong price signals in the European Union market in 2005 raised expectations in the project -based markets as well. The Carbon Market has created an important flow of private and public capital to climate friendly technologies in deve-loping countries which contributes to sustainable development"
With regards to the Clean Development Mechanism (CDM) of the Kyoto Protocol, which allows industrial nations to buy carbon emissions reductions in developing countries to comply with their targets at home, Roberto Urquiza, Deputy Minister of Environment from Ecuador said "It is necessary to remove barriers for a more equitable distribution of CDM resources". He demanded a broader participation of small developing countries in CDM projects "by integrating carbon finance in new sectors, including energy efficiency and the forest sector".
According to the South American official, the trend in the allocation of resources is following the same trend of Foreign Direct Investments (FDI) which has emerging markets such as China, India and Brazil as its preferred destination.
Andrei Marcu, President & CEO, International Emissions Trading Association (IETA), is confident about market prospects, "We will see the market mature, including the European market. The CDM is maturing; it is beginning to deliver results". However he warned that "soon we will be seeing the uncertainty of not having a clear direction after 2012" (the date the Kyoto Protocol is set to expire)
In reference to the record low prices in European markets in recent weeks, Jack Cogen, Presi-dent, of the brokerage firm Natsource, explained that "the market was overheated", and emphasi-zed "The market is a success; the future markets are working well but sometimes markets crash, and that has happened in the past, especially with environmental commodity markets. All these markets had a dramatic price change during the first year of operations"
Looking at the reality of Africa, Kivutha Kibwama, head of the UN Climate Change Conference to take place in Nairobi in November said "With only two percent of the market we are at a very early stage. For Africa to be engaged we need assistance in awareness raising on available opportunities this market is bringing. We need to find backers to provide finance in order to make the initial preparation of projects a reality.
The 2006 version of Carbon EXPO, organized by The World Bank, IETA and Koelnmesse, en-ded today, after three days of intense business and knowledge sharing activities. According to Koelmnesse a record number of 2050 participants from 94 countries were present at this unique event.
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EU emissions trading scheme delivers first verified emissions data for installations, 15 May 2006
Brussels (EU Commission) - The European Commission today released the 2005 carbon dioxide (CO2) emissions data and compliance status of more than 9,400 installations covered by the EU Emissions Trading Scheme. For four Member States – Cyprus, Luxembourg, Malta and Poland – no information has been received as their emission allowance registries are not yet operational. The Emissions Trading Scheme enables greenhouse gas emissions from the power sector and energy-intensive industrial plants to be cut at least cost to the economy.
The 21 Member States with active registries have allocated an annual average of 1,829.5 million allowances to installations in the scheme's first trading period, covering 2005 to 2007. In addition they have put aside an annual average of some 73.4 million allowances for new installations or for auctioning purposes. Independently verified emissions data for installations operating in these 21 Member States (with a small number still to report) amounted by 30 April to approximately 1,785.3 million tonnes for 2005.
By the compliance deadline of 30 April 2006 some 8.980 installations had fulfilled their obligations with regard to reporting 2005 emissions. These installations account for more than 99 % of allowances allocated.
By the compliance deadline of 30 April 2006 a total of 849 installations were identified as not having surrendered a sufficient number of emission allowances. Many of these have subsequently fulfilled their surrender obligation over the last two weeks. Some of the remaining installations that have yet to fulfil their obligations have reportedly encountered technical difficulties in national registries. The Commission will contact Member States responsible for these installations to identify the reasons and to ensure appropriate enforcement action is taken in cases of non-compliance.
Preparation for the scheme's second trading period, from 2008 to 2012, is already well under way. As required by the Emissions Trading Directive, Member States are drawing up national allocation plans for the 2008 to 2012 period for notification to the Commission by 30 June. These plans are important climate policy tools since collectively they will determine the total permitted level of CO2 emissions from installations across the EU as well as how many allowances each installation receives individually. The new 2005 emissions data gives independently assessed installation-level figures for the first time and so provides Member States with an excellent factual basis for deciding upon the caps in their forthcoming national allocation plans for the second trading period, when the Kyoto targets have to be met. The plans are subject to approval by the Commission, which will also be making extensive use of the 2005 emissions data.
Separately, later this year the Commission will launch a review of the scheme and the Directive to see whether adjustments to the scheme's design should be introduced after 2012. Experience gained from the first compliance cycle is a valuable input to this process. The main purpose of the review is to ensure that the scheme, seen across the world as being the nucleus of a future international carbon market, delivers emission reductions in the most cost-effective way possible into the medium and long-term.
Under the scheme, launched on 1 January 2005, installations are allocated a certain number of CO2 emission allowances by their governments per year (one allowance gives the right to emit one tonne of CO2). Installations that keep their emissions below their total of allowances - for instance by investing in more energy-efficient equipment - can sell their surplus allowances to those that emit more than their allocated allowances. This 'cap and trade' approach ensures that emissions are cut wherever it is cheapest to do so.
After the end of each calendar year each installation has to report its actual emissions from that year, assure independent verification of this report and submit it to the competent national authority by 31 March. By 30 April the company has to surrender a number of emission allowances equivalent to its verified emissions in the previous year. Companies that surrender an insufficient number of allowances to cover their emissions have to pay a financial penalty of €40 to the Member State concerned for each missing allowance. The annual compliance cycle is closed by the publication of emissions data and surrendered allowances information per installation on 15 May and the cancellation of surrendered allowances by 30 June.
The Community Independent Transaction Log (CITL) records the issuance, transfer, surrender and cancellation of allowances that take place in national registries. Some Member States have informed the European Commission that certain oversights and errors by companies have taken place, such as cancelling rather than surrendering allowances. These could lead to slight discrepancies in the figures in the CITL and the summary tables available for download. Explanatory notes have been added accordingly.
Due to technical problems occurring in the national registries of the Czech Republic, France, the Slovak Republic and Spain, the number of surrendered allowances and therefore the compliance status per installation as submitted by these national registries to the CITL may be incorrect. The Commission is collaborating with these Member States to correct these compliance figures as soon as possible. For this reason, no installation-level tables are available for the Czech Republic, France, the Slovak Republic and Spain for download at this stage.
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Commissioner Piebalgs Enhances Bilateral Energy Cooperation with Kazakhstan, 9 May 2006
Brussels (EU Commission) - The Commissioner started his official visit to Kazakhstan, a major oil and gas producer in Central Asia, today, in order to discuss the possibilities for enhancing energy cooperation between Kazakhstan and the EU. He is joined by representatives of the European oil and gas industry and will meet with numerous high level officials during his stay. The event marks the very first visit to Kazakhstan of any European Energy Commissioner.“Strengthening discussions with Kazakhstan in the energy sector is of great importance for improving the security of energy supplies to the EU” underlined the Commissioner. Discussions with senior Kazakh representatives will involve the modalities of enhancing energy cooperation and new export routes from the Caspian region to the EU. The Commissioner will hold bilateral meetings with the President of the Republic of Kazakhstan, the Minister of Foreign Affairs and the Minister of Energy and Mineral Resources, as well as visit the Kashagan oil field, considered to be the largest oil discovery in the North Caspian Sea. The Commissioner is accompanied by senior representatives of the European oil and gas industry to discuss further investment opportunities in the energy sector in Kazakhstan with the national administration and the local energy industry.As well as being an important gas producer, Kazakhstan boasts the largest recoverable oil reserves in the Caspian region - at least 95 billion barrels of oil - and is an important partner for the EU in Central Asia. It is also one of the participants in the regional cooperation initiative that brings together Black Sea and Caspian Sea countries and the EU that was initiated on the occasion of the Ministerial Conference on Energy cooperation in 2004. On the occasion of the Commissioner’s visit, Kazakhstan has confirmed its support for this initiative by agreeing to host the second Ministerial Conference to be held in November this year.
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Commissioner Piebalgs and Minister Bartenstein statement on the recent announcement of Bolivia regarding its gas industry, 9 May 2006
Brussels (EU Commission) - Energy Commissioner Andris Piebalgs and Austrian Federal Minister for Energy, Martin Bartenstein, on behalf of the EU Presidency, have taken careful note of the recent unexpected announcement of the Bolivian Government regarding its gas industry. They trust that Bolivia, in seeking to develop its energy industry, will proceed in a manner that maintains investor confidence, in order to ensure sustained collaboration with the companies concerned, through active and effective dialogue.They note however their concern at the announcement of the intention to use armed forces to occupy energy installations. They will remain attentive to issue during the coming months.
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Commissioner Piebalgs and Minister Bartenstein clarify key points of the EU-Russia gas trade relationship in a letter to the Russian Government, 9 May 2006
Brussels (EU Commission) - Today, Energy Commissioner Andris Piebalgs and Austrian Federal Minister for Economics and Labour, Martin Bartenstein, on behalf of the Presidency, have written to Russian Energy Minister Victor Khristenko, responding to recent comments that have been made in Russia regarding the EU energy market.
Commissioner Piebalgs and Minister Bartenstein acknowledge that Russia, and Gazprom in particular, have been, and remain, a reliable supplier of natural gas to the European Union. They consider it important that this relationship is maintained, given that the EU looks to Russia for increased deliveries of gas in the future. In addition, they note their agreement that long term gas supply contracts can facilitate the very significant investments in Russia that will need to be undertaken to meet future demand. Under the EU competition rules, contracts that promote new investment and other benefits are, in principle, viewed favourably.
The letter points out that the EU and Russia are, and must remain, in a position of mutually beneficial inter-dependence. Russia, on the one hand, needs the predictability and certainty that the EU market will, in the medium to long term, take the gas that will result from huge new investments and the EU, on the other hand, needs the transparency and certainty that those deliveries will be made in a timely fashion. In this light the Commissioner and Minister welcome recent statements on Gazprom’s ability to meet future EU demand and suggest that an EU-Russia energy partnership should be further developed and that relations should be deepened further to the mutual benefit of both sides.
Finally, they comment on Gazprom’s perceived concerns on possible limitations imposed by the EU on its aspirations to become a global energy company. Their letter recalls that many energy companies are active in the EU’s oil, electricity and gas markets, both upstream and downstream. “The rules applied to Gazprom will be no different to those applied to these and other companies, notably under the competition rules of the EU Treaty, and that they will be applied in exactly the same manner”, the letter says. The fact that Gazprom is the exclusive exporter of gas from Russia to the EU, when other Russian companies and foreign joint ventures with gas reserves would otherwise be in a position to supply the EU market, will be a significant fact that will necessarily be taken into account in any such objective analysis. But there is clearly no question of any discrimination.
Finally, Commissioner Piebalgs and Minister Bartenstein stress the importance that the EU places on ratification of the Energy Charter Treaty and the Transit Protocol, a valuable mechanism that can provide the basis for the long term management of the wider European energy market, including such issues as the right of transit and third party access, which remain of great interest to the EU.
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Sustainable development: Commissioner Dimas at UN to discuss sustainable energy future, 9 May 2006
Brussels (European Commission) - Environment Commissioner Stavros Dimas will represent the European Commission at the ministerial part of the 14th session of the UN Commission on Sustainable Development (CSD) in New York from 10 to 12 May 2006. The meeting will examine progress in sustainable energy, climate change, air pollution and industrial development issues. Commissioner Dimas will advocate energy policies that improve access to energy services for the world’s poor while maximising energy efficiency and the use of renewable energy globally, thus increasing the protection of the environment. Commissioner Dimas will also announce the launch of the EU Energy Facility, which will make available € 220 million to projects improving access to energy, in particular renewable energy, mainly in Sub-Saharan Africa.
The CSD process provides us with a unique opportunity to put the world on a sustainable energy path. What we need is an integrated approach with a view to improve energy efficiency, promote technological innovation, expand markets for renewable energy sources and foster cleaner fossil fuels for transportation. All this will increase the access to energy in developing countries while protecting the environment.
Access to energy and energy services is crucial for achieving the Millennium Development Goals, especially on eradicating poverty. Today, over two billion people in developing countries live without access to energy and to modern energy services, and they are relying mainly on traditional biomass. This year, € 220 million from the new EU Energy Facility in support of the EU Energy Initiative will be made available to projects improving access to energy in African, Caribbean and Pacific (ACP) countries.
At the same time, there is an urgent need to reduce energy-related environmental and health problems, in particular those stemming from climate change and air pollution. Renewable energy sources will therefore be high on the EU’s agenda at CSD14. They play an important role in the fight against climate change, and they harbour potential for economic growth, especially for developing countries and regions. To make the most of their potential, a stable, long-term policy framework is needed. CSD offers us the chance to build a strong international framework for renewables to help achieve a real global breakthrough, and we should not miss this chance.
The Johannesburg Renewable Energy Coalition (JREC), chaired by the Commission and Morocco, has since its launch in 2002 successfully fostered international co-operation on renewables. The Commission is currently preparing an innovative public/private funding mechanism to bridge financing gaps for renewable energy business developers and SMEs, especially in developing countries. CSD14 is also looking at the sustainability of industrial development. As a large energy-consuming sector, industry is a significant source of greenhouse gas emissions and air pollution. Promoting sustainable consumption and production patterns will be crucial. At the same time, industrial development is key to attaining economic and social objectives.
One of the issues is how to increase investment in sustainable industrial development that creates jobs and generates income, including through small- and medium-sized enterprises. The UN Commission on Sustainable Development (CSD) has a mandate to review progress in implementing the outcomes of the 2002 World Summit on Sustainable Development in Johannesburg. The CSD works in two-year policy cycles, with a review session followed by a policy session. The 1 – 12 May 2006 meeting, CSD14, constitutes a global review of implementation of the Johannesburg commitments in the field of energy, air pollution, climate change and industrial development, aiming at showcasing best practises as well as identifying the most pressing challenges that the global community needs to tackle. In 2007, the policy session, CSD15, will decide upon concrete actions to overcome these obstacles. CSD14 is chaired by Aleksi Aleksishvili, Minister of Finance of Georgia. The meeting will be attended by ministers from around 100 countries as well as representatives of international financial institutions, business and NGOs.
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'On-the-Job' Training Carbon expo: What is Carbon Finance? Where is the market going? 8 May 2006
COLOGNE (Koelnmesse) - Journalists covering CARBON EXPO are invited to participate in a Carbon Finance'On-the-job' Training hosted by COM+: Alliance of Communicators for Sustainable Development and the International Emissions Trading Association (IETA). The training will be conducted by Duncan Shiels, Senior Trainer from the Reuters Foundation, a member of the COM+ Alliance, on May 10th from 9:00 am to 10:45 am at CARBON EXPO, Koelnmesse, Cologne, Germany. Journalists will have access to industry experts, as well as representatives from IETA and the World Bank, in topics ranging from current events in the European Union Emissions Trading Scheme to what lies beyond 2012.
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Record number of exhibitors for Carbon Expo, 8 May 2006
COLOGNE (Koelnmesse) - Organisers expect to attract around 1,700 trade visitors. From the 10th to 12th May 2006, representatives of the growing greenhouse gas emission reductions market will be meeting in Cologne for CARBON EXPO 2006, the world's pre-eminent trade fair and conference for the sector. 187 companies, host countries and institutions will participate. This is an increase of about 40 per cent compared to last year. The event's organisers - the World Bank, the International Emissions Trading Association (IETA) and Koelnmesse - are expecting around 1,700 trade visitors to attend the event. The World Bank is supporting the participation of 25 developing countries and countries with economies in transition at CARBON EXPO 2006, including Bulgaria, Peru, Uganda, Chile, China, Russia, Ukraine, Uganda, Nicaragua, Costa Rica, El Salvador, Guatemala, Ecuador and South Africa. These countries will be presenting current CDM/JI projects and their respective national investment conditions. The trade fair and conference provide a unique venue for buyers and sellers of greenhouse gas emission reductions to discuss available projects and potentially make a deal. The success of such an approach was born out at Carbon Expo 2005 when at least 100 deals for the purchase of greenhouse gas emission reductions from poor and middle income countries from the developing world and countries in transition were reached and/or advanced.
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International Emissions Trading Market is Steadily Growing, 5 May 2006
COLOGNE (Koelnmesse) - World's only trade fair and conference for emissions trading and the carbon market highlights market growth, development and opportunities.
Ever since EU-wide emissions trading began on 1st January 2005, the market for EU Allowances (EUA) has developed positively and became firmly established. After a low initial level of transaction activity and a small number of actors, there are now increasing volumes of EUAs in bilateral trades and on the different European Carbon Exchanges. CARBON EXPO 2006, jointly organized by the World Bank, the International Emissions Trading Association (IETA) and Koelnmesse, is the global carbon market fair and conference for emissions trading and the carbon market. It will be held for the third time from 10th to 12th May 2006 in Cologne, Germany. It offers both the energy-intensive industries and the participating service companies the ideal platform for business and communication. Today the industrialised countries are relying on the three flexible mechanisms of the Kyoto Protocol in order to fulfil their commitment to reduce emissions. The first of these is emissions trading between the industrialised countries on Kyoto Level and between companies in line with the EU emissions trading system. The other two are the emission reduction projects carried out jointly by industrialised countries or by industrialised countries in cooperation with developing countries as a contribution to global climate protection. "CARBON EXPO 2006 presents these flexible mechanisms and demonstrates very clearly to the energy-intensive industries the potential and opportunities offered by the EU emissions trading scheme and emission reduction projects (Clean Development Mechanism/Joint Implementation, or CDM/JI)," said Robert Dornau, conference director CARBON EXPO. "As in the previous years the World Bank will once again be promoting the participation of project developers and government representatives from developing countries and countries with economies in transition," Dornau added. At CARBON EXPO 2006 these countries will be presenting CDM/JI projects that are seeking technology suppliers or are already offering emission reductions for sale. At the last CARBON EXPO in May 2005, emissions reductions of more than 100 such projects were sold or advanced negotiations.
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Invitation to the opening of CARBON EXPO 2006, 5 May 2006
COLOGNE (Koelnmesse) - From 10th to 12th May 2006, the third CARBON EXPO - Global Carbon Market Fair & Conference - will be held in Cologne. CARBON EXPO is the world's most important trade fair and conference for emissions trading and the CO2 market. The number of exhibitors who are taking part this year - the highest since the event's premiere three years ago - clearly reflects the dynamism of this market. There will be 187 suppliers from 50 countries at CARBON EXPO 2006, a 40 per cent increase. The event is being organised by the World Bank (Washington, D.C.), the International Emissions Trading Association (IETA, Geneva) and Koelnmesse. About 1,700 trade visitors and congress participants from all over the world are expected to attend.
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EU-Russia gas trade relationship: letter to the Russian Government, 3 May 2006
BRUSSELS (European Commission) - Today, Energy Commissioner Andris Piebalgs and Austrian Federal Minister for Economics and Labour, Martin Bartenstein, on behalf of the Presidency, have written to Russian Energy Minister Victor Khristenko, responding to recent comments that have been made in Russia regarding the EU energy market.
Commissioner Piebalgs and Minister Bartenstein acknowledge that Russia, and Gazprom in particular, have been, and remain, a reliable supplier of natural gas to the European Union. They consider it important that this relationship is maintained, given that the EU looks to Russia for increased deliveries of gas in the future. In addition, they note their agreement that long term gas supply contracts can facilitate the very significant investments in Russia that will need to be undertaken to meet future demand. Under the EU competition rules, contracts that promote new investment and other benefits are, in principle, viewed favourably.
The letter points out that the EU and Russia are, and must remain, in a position of mutually beneficial inter-dependence. Russia, on the one hand, needs the predictability and certainty that the EU market will, in the medium to long term, take the gas that will result from huge new investments and the EU, on the other hand, needs the transparency and certainty that those deliveries will be made in a timely fashion. In this light the Commissioner and Minister welcome recent statements on Gazprom’s ability to meet future EU demand and suggest that an EU-Russia energy partnership should be further developed and that relations should be deepened further to the mutual benefit of both sides.
Finally, they comment on Gazprom’s perceived concerns on possible limitations imposed by the EU on its aspirations to become a global energy company. Their letter recalls that many energy companies are active in the EU’s oil, electricity and gas markets, both upstream and downstream. “The rules applied to Gazprom will be no different to those applied to these and other companies, notably under the competition rules of the EU Treaty, and that they will be applied in exactly the same manner”, the letter says. The fact that Gazprom is the exclusive exporter of gas from Russia to the EU, when other Russian companies and foreign joint ventures with gas reserves would otherwise be in a position to supply the EU market, will be a significant fact that will necessarily be taken into account in any such objective analysis. But there is clearly no question of any discrimination.
Finally, Commissioner Piebalgs and Minister Bartenstein stress the importance that the EU places on ratification of the Energy Charter Treaty and the Transit Protocol, a valuable mechanism that can provide the basis for the long term management of the wider European energy market, including such issues as the right of transit and third party access, which remain of great interest to the EU.
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EU emergency oil stocks at comfortable levels, 3 May 2006
BRUssels (European Commission) - Last Tuesday’s (25 April) meeting of the Member States Oil Supply Group confirmed the current levels of emergency oil stocks in Europe at 117 days of consumption, a figure well above the mandatory 90 days. The meeting reviewed the level of oil stocks in Member States and their replenishments following late 2005 releases in the context of the IEA concerted action after Hurricanes Katrina and Rita.
In view of the latest infringement procedures, the Commission reminded Member States of the importance of respecting the reporting deadlines and other obligations stemming from the European legislation on oil stocks. The Commission intends to continue enforcing the reporting discipline previewed in the applicable legislation in order to ensure a constant clear picture on the current stock levels.
The Commission also took advantage of the meeting for a further exchange of views with Member States on the demand-restraint measures envisaged by individual Member States for cases of emergency situations. Coordination of such measures at a European level could be useful in order to avoid potential incompatibilities or distortions. European legislation[1] allows the Commission to set a target for reducing the consumption of petroleum products (by up to 10% of normal consumption). Participants also discussed the Commission’s recent Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy and the expected follow-up, in particular the possible initiatives concerning oil. The Commission estimates that although the elevated oil prices of the past two years do not seem to have affected the economic prospects of the European or global economy so far, the current level of oil prices could impinge on economic growth in the coming months if they are sustained and if coupled with adverse monetary developments or speculative investments.
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EB 24 proposed agenda and annotations, 27 Apr 2006
BONN (UNFCCC) - The proposed agenda and annotations as well as relevant reports and inputs from panels and working groups for the twenty-fourth meeting of the CDM Executive Board (10 - 12 May 2006) are available on the UNFCCC CDM web site
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CDM Meth Panel report / CDM AR WG report / CDM SSC WG report, 13 April 2006
BONN (UNFCCC) - The below listed documents are now available on the UNFCCC CDM website:
(1) The report of the twentieth meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website.
(2) The report of the eighth meeting of the CDM Afforestation and Reforestation Working Group (A/R WG) is now available in the AR WG section of UNFCCC CDM website.(3) The report of the fifth meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website.
Other methodological issues:
(4) Non-forestry methodologies
Request for revision of approved methodologies and requests for clarification of approved methodologies have been received.
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New submissions of methodologies / Other methodological issues, 21 Mar 2006
BONN (UNFCCC) - The CDM Executive Board, at its twenty-third meeting (EB23), agreed to launch the follo-wing four different calls for public inputs:
- Draft “baseline scenario selection tool” (21March);
- Proposals to demonstrate additionality and to improve the “additionality tool";
- Procedures to address leakage from small-scale CDM biomass project activities;
- Regional distribution of CDM project activities.
Proposed new methodologies:
The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 20 March - 07 April 2006:
NM0156: Shanghai Putuo District Municipal Solid Waste Transfer and Comprehensive Treatment Plant
NM0157: Open-DSM type CDM for Green Lighting in Shijiazhuang city, China
NM0158: Mexico, Insurgentes Avenue Bus Rapid Transit Pilot Project
NM0159: Implementation of an Efficiency Testing, Consumer Labelling and Quality-Assurance Program for Air Conditioners in Ghana
NM0160: Shell Cogeneration Project
NM0161: Mondi Gas Turbine Co-generation in Richards Bay, South Africa
NM0162: Reduction in GHGs emission from primary aluminium smelter at Hindalco, Hira-kud India
NM0163: Use of calcined ashes and fluorite for clinker production in the Cement Plant of Huichapan, Mexico
NM0164: Sasol Nitrous Oxide Abatement Project
NM0165: Feed switchover from Naphtha to Natural Gas (NG) at Phulpur plant of IFFCO
NM0166: JISL biomethanation of biodegradable waste for thermal applications
NM0167: The White Tiger Oil Field Carbon Capture and Storage (CCS) project in Vietnam
NM0168: The capture of the CO2 from the Liquefied Natural Gas (LNG) complex and its ge-ological storage in the aquifer located in Malaysia
The following proposed new baseline and monitoring methodologies have been re-submitted for consideration of the Meth Panel at its next meeting and are available in the UNFCCC CDM web site:
NM0108-rev: Biodiesel production and switching fossil fuels from petro-diesel to biodiesel in transport sector - 30 TPD Biodiesel CDM Project in Andhra Pradesh, India
In addition, technical clarifications to the following proposed new methodologies have been provided:
NM0133: Grid-connected power generation project using biomass fuel from newly developed dedicated plantations, in Nakhon Ratchasima Province, Thailand
NM0134: Paramonga CDM Bagasse Boiler Project
NM0136: Reduction of Transmission and Distribution Losses in Nigeria
NM0140: Mondi Richards Bay Biomass Project
NM0141: Displacing grid/off-grid steam and electricity generation with less carbon intensive fuels in Aba, Nigeria
NM0142: Palm Methyl Ester - Biodiesel Fuel (PME-BDF) production and use for transporta-tion in Thailand
NM0143: Catalytic reduction of N2O inside the ammonia burner of nitric acid plants
NM0105-rev: Bus Rapid Transit System for Bogotá, Colombia: TransMilenio Phase II to IV
NM0107-rev: Waste Gas-based Cogeneration Project at Alexandria Carbon Black Co., Egypt
NM0112-rev: Increased electricity generation from existing hydropower stations through De-cision Support System optimization in Azerbaijan
NM0117-rev: Nanjing Chemical Industries Co Ltd (NCIC) Nitrous Oxide Abatement Project
NM0123-rev: Substitution of raw material in cement processing
The final recommendation of NM0138: American Israel Paper Mill (AIPM) Natural Gas Co-generation by the Meth Panel is also available on the CDM website as no clarifications have been received as a response to the preliminary recommendation of the Panel. This recommen-dation will be under consideration at the next meeting of the CDM Executive Board.
Requests for revision of approved methodologies and requests for clarification of approved methodologies have been received.
Proposed new A/R methodologies:
Technical clarifications to the following proposed new A/R methodologies have been provi-ded:
ARNM0015: Reforestation as Renewable Source of Wood Supplies for Industrial Use in Bra-zil
ARNM0017: Mexico Seawater Forestry Project
ARNM0018: Assisted Natural Regeneration of Degraded Lands in Albania
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CDM Registry - CERs forwarded to project participants for the first time 10 Mar 2006
BONN (UNFCCC) - The UNFCCC CDM Registry Administrator has the pleasure of announcing another first in the implementation of the Kyoto Protocol's Clean Development Mechanism (CDM). Following the recent issuance of certified emission reducitons (CER) and the opening of holding accounts for project participants, the Administrator has, for the first time, forwarded CERs to the holding account of a project participant.
This action represents a significant milestone in the implementation of the CDM and provides project participants with the end product of their efforts to reduce emissions of greenhouse gases in developing countries with a view to meeting their committments under the Kyoto Protocol.
The 139 CDM project activities currently registered are expected to produce in excess of 270 million CERs before the end the Kyoto Protocol's first commitment period in 2012. The official CDM "CER" pipeline of more than 630 activities, including the 139 registered activities, is expected to deliver more than 800 million tonnes by the end of 2012.
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UN Environment Head Welcomes Climate Change Compliance Committee, 9 Mar 2006
NAIROBI (UNEP) - Kyoto Protocol Now Comes with Carrots and Sticks
The launch of the compliance system for the Kyoto Protocol, the international treaty to reduce greenhouse gas emissions, was welcomed by Klaus Toepfer, Executive Director of the United Nations Environment Programme (UNEP).
The United Nations Framework Convention on Climate Change (UNFCCC) today announced that the Protocol’s Compliance Committee, complete with an enforcement branch and facilitative branch, was operational.
The enforcement wing has the power to decide on the consequences for countries encountering difficulties in meeting their commitments by 2012.
The other branch is designed to promote compliance by offering countries advice and assistance.
Mr Toepfer said: “Climate change is the most serious challenge facing the world and the Kyoto Protocol is the internationally agreed mechanism for averting it”.
“Kyoto has many carrots including the chance for developed nations to offset some of their emissions in developing countries through tree planting and renewable energy schemes, up to participating in the emerging carbon trading markets,” he said.
“With today’s announcement, the Protocol also has teeth, as befits a legally binding treaty. This in turn adds to the integrity of Kyoto and its provisions, in particular the credibility of the emissions trading markets,” added Mr Toepfer.
He wished Ambassador Raúl Estrada Oyuela of Argentina, chair of the Committee’s enforcement branch, and Hironori Hamanaka of Japan every success and a "not too busy time”.
“The signs of climate change are all around us, from the melting of the Arctic and the glaciers up to extreme weather events and the migration of species. I sincerely believe that the world is no longer in any doubt that climate change is real and that the targets set under Kyoto are modest and doable—that few if any will be bothering Ambassador Estrada or Mr Hamanaka over the next six years”.
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Proposed new methodologies submitted, 6 Mar 2006
BONN (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available on the UNFCCC website:
NM0144: Energy efficiency improvements carried out by an Energy Service Company (ESCO) in Ulaanbaatar, Mongolia to replace old boilers with new ones
NM0145: Reduction of Flaring and Use of Recovered Gas for Methanol Production
NM0146: Transalloys Manganese Alloy Smelter Energy Efficiency Project in South Africa
NM0147: Methane abatement through composting
NM0148: Fuel switch project for generation of cleaner power
NM0149: Coal to natural gas feedstock conversion for the large-scale manufacture of Pure gas at Sasol facilities, South Africa
NM0150: Ghana efficient lighting retrofit project
NM0151: CEG Gas Distribution Pipeline Replacement Project in Rio de Janeiro
NM0152: Celpa, Celtins and Cemat grid connection of isolated systems CDM Project
NM0153: Grid connected electricity generation plant of 220 MW capacity using Natural Gas (NG) as fuel and based on combined cycle technology of Reliance Energy Limited –Samalkot, Andhra Pradesh
NM0154: Vikram Cement (VC): Energy efficiency improvement by up-gradation of preheater in cement manufacturing
NM0155: Waste gas utilisation for steam and power generation at RIL Jamnagar refinery
Proposed new AR methodologies:
The following proposals on new Afforestation/Reforestation baseline and monitoring methodologies have been submitted to the CDM Executive:
ARNM0019: Reforestation around Pico Bonito National Park, Honduras
ARNM0020: Afforestation for Combating Desertification in Aohan County, Northern China
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CDM Registry - Opening of first Holding Accounts, 6 Mar 2006
BONN (UNFCCC) - The CDM Registry Administrator has the pleasure of announcing the opening of the first five temporary holding accounts in the CDM registry. These holding accounts will be able to receive CERs issued into the pending account for projects in which the account holders are registered participants.
To date a total of 3,616,773 certified emission reductions (CERs) have been issued into the pending account of the CDM registry. These CERs have accrued from 6 separate projects, more details can be found on the CDM website at http://cdm.unfccc.int/Issuance. Of this amount 72,337 have already been forwarded to the holding account for the share of proceeds to assist in meeting costs of adaptation.
The secretariat has advised the participants of these 6 projects that they may open holding accounts in the CDM registry, and instructed them on how they may do so. Following the opening of such accounts the secretariat will be able to accept requests for forwarding of CERs from the pending account to these accounts. Project Participants have also been instructed on how they may make such requests.
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Groundbreaking Kyoto Protocol Compliance system launched, 3 Mar 2006
BONN (UNFCCC) - The Kyoto Protocol’s Compliance Committee has taken up its operations as the last of the bodies established under the 1997 landmark environmental treaty to do so, and elected the Chairs of its Enforcement and Facilitative Branches at a meeting in Bonn, Germany.
Ambassador Raúl Estrada Oyuela (Argentina), elected Chair of the Enforcement Branch, called the Kyoto Protocol compliance system “groundbreaking” and pointed out that the organ was “designed to ensure the environmental integrity of the agreement and to contribute to the credibility of the carbon market created by the Protocol.”
Hironori Hamanaka of Japan was elected Chair of the committee’s Facilitative Branch.
Under the Kyoto Protocol, 35 industrialized countries and the EEC are required to reduce greenhouse gas emissions below levels specified for each of them in the Protocol. Overall, this should amount to reductions of at least 5% below 1990 levels between 2008 and 2012. The 20-member Compliance Committee is tasked with dealing with cases of non-compliance with these and other obligations of the Protocol.
Whilst the Enforcement Branch of the Committee has the power to determine consequences for Parties that encounter problems with meeting their commitments, the Facilitative Branch of the Committee is designed to provide advice and assistance to Parties in order to promote compliance.
“A strong and effective compliance mechanism is key to the success of the implementation of the treaty,” said Richard Kinley, acting head of the United Nations Climate Change Secretariat in Bonn.
Parties to the Protocol provide the UNFCCC secretariat in Bonn with annual reports of their greenhouse gas emissions, which then undergo a rigorous review process. The secretariat also monitors the international carbon emission trading market and receives annual accounting reports from parties on carbon allowances they have acquired or transferred to another Party or result from project-level emission reductions. Compliance is then determined by comparing emissions to allowances.
The Committee will consider individual cases as they arise and is empowered to make final decisions on such cases. It reports annually to the meeting of the Parties to the Protocol.
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CDM Executive Board report (EB23), 3 Mar 2006
BONN (UNFCCC) - The report of the twenty-third meeting of the CDM Executive Board (22 - 24 February 2006), including its annexes, is now available on the UNFCCC CDM web site.
Annexes to the report:
Accreditation
Annex 1: Revised terms of reference for the Accreditation Panel (version 2)
Methodologies for baselines and monitoring plans
Annex 2: Revised procedures for submission and consideration of a proposed new methodology (version 10)
Annex 3: Revised procedures for revision of approved methodologies (version 03)
Annex 4: Revised terms of reference for the Methodologies Panel (version 03)
Annex 5: Definition of thresholds in terms of power density
Annex 6: Revised approved baseline and monitoring methodology AM0025 ver 3 (“Avoided emissions from organic waste composting at landfill sites“)
Annex 7: Revised approved baseline and monitoring methodology ACM0003 ver 2 (“Emissions reduction through partial substitution of fossil fuels with alternative fuels in cement manufacture“)
Annex 8: Revised approved baseline and monitoring methodology ACM0004 ver 2 (“Consolidated baseline methodology for waste gas and/or heat and/or pressure for power generation“)
Annex 9: Revised approved baseline and monitoring methodology ACM0002 ver 5 (“Consolidated baseline methodology for grid-connected electricity generation from renewable sources“)
Annex 10: Revised approved baseline and monitoring methodology AM0016 ver 3 (“Greenhouse gas mitigation from improved Animal Waste Management Systems in confined animal feeding operations“)
Annex 11: Revised approved baseline and monitoring methodology ACM0006 ver 2 (“Consolidated methodology for grid-connected electricity generation from biomass residues”)
Annex 12: ACM0009 “Consolidated methodology for industrial fuel switching from coal or petroleum fuels to natural gas”
Annex 13: AM0028 “Catalytic N2O destruction in the tail gas of Nitric Acid Plants” (based on NM0111)
Issues relating to procedures for afforestation and reforestation project activities
Annex 14: Revised terms of reference for the Afforestation and reforestation working group (A/R WG) (version 02)
Annex 15(a): Revised CDM-AR-PDD and CDM-AR-NM and its (b) Guidelines
Annex 16(a): Small-scale afforestation and reforestation project design document (CDM-AR-SSC-PDD) and (b) Guidelines
Annex 17: Revised methodology assessment form (CDM-AR-NMas ver.2)
Annex 18: Definition of renewable biomass
Annex 19: Guidance of national and/or sectoral policies and circumstances particular to A/R project activities
Issues relating to small-scale CDM project activities
Annex 20: Revised terms of reference for the small-scale working group (SSC WG) (version 20)
Annex 21: Approved small-scale methodology “Landfill methane recovery” (AMS III.G.)
Annex 22: Approved small-scale methodology “avoidance of methane production from biomass decay through composting “ (AMS III.F.)
Annex 23: Approved small-scale methodology “Methane recovery in wastewater treatment” (AMS III.H.)
Annex 24: Approved small-scale methodology “Avoidance of methane production in wastewater treatment through replacement of anaerobic lagoons by aerobic systems” (AMS III.I.)
Annex 25: Revision to category III. D. “Methane Recovery” (AMS III.D.)
Annex 26: Revision of the simplified Project Design Document for small-scale CDM project activities ‘CDM-SSC-PDD’
Annex 27: Revised guidelines for completing the simplified Project Design Document ‘CDM-SSC-PDD’
Annex 28: Revision to category III.E. Avoidance of methane production from biomass decay through controlled combustion
Annex 29: Revision to category I. A.
Annex 30: Revision to category I. B.
Annex 31: Revision to category I. C.
Annex 32: Revision to category I. D.
Annex 33: Additional guidelines for monitoring
Matters relating to the registration of CDM project activities
Annex 34: Revised terms of reference and procedures for a Registration and Issuance Team (EB-RIT) (version 2)
Annex 35: Revised registration fee
Other business
Annex 36: Provisional agenda for EB24
Annex 37: Tentative schedule of meeting for 2006
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Energy, enironment, competitiveness: Results of first meeting of new High Level group, 28 Feb 2006
BRUSSELS (EU Commission) - The High Level Group on Competitiveness, Energy and the Environment (HLG), which was setup by the Commission on the basis of its Communication on Industrial Policy of 5 October 2005, met today in Brussels for its kick-off meeting. The Group, which has a mandate for two years, reached agreement on the working methods and on the subsequent subjects to be prepared for the next meeting:
- The functioning of the energy markets in order to assess its short and long term impact on the competitiveness of industry, on the environment and on incentives for investment.
- The EU emissions trading scheme in order to give input to the review of the scheme, notably by investigating the impact on electricity prices, the issue of a level playing field for industry and methods of allocation.
- The competitiveness of European energy intensive industries, and in particular how access to energy inputs affect their competitiveness.
- Finally the energy efficiency in order to assess its impacts on competitiveness, analyse market barriers, and investigate financing mechanisms and means to increase awareness.
All these priorities are linked to the current policy agenda, in particular the sector inquiry on electricity and gas markets, the review of the EU emissions trading scheme, the Lisbon strategy, Hampton Court and the preparation of the Energy Efficiency Action Plan.
The meetings of the HLG, whose members are taking part on a personal basis, will be prepared by a group consisting of sherpas nominated by each member of the HLG. It will receive input from ad-hoc working groups which will cover the abovementioned four subjects.
In its meeting today the Group had an extensive exchange of views on the basis of an oral report by Commissioner Andris Piebalgs on the main issues likely to be addressed in the forthcoming Green Paper on Energy which the Commission will table in March as follow-up to the European Council Hampton Court. Furthermore, Commissioner Neelie Kroes presented the preliminary results of the sector inquiry on electricity and gas markets in Europe.
The next meeting of the HLG is foreseen for 2 June 2006.
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Stavros Dimas: Giving Kyoto a Future, 20 Feb 2006
BRUSSELS (European Commission) - In a statement to mark the first anniversary of the Kyoto Protocol, EU Environment Commissioner Stavros Dimas said: “Climate change poses a vital threat to the future stability and prosperity of our societies. The Kyoto Protocol’s first year in force has seen important progress towards addressing this major challenge. In particular, the Montreal world climate change conference in December finalised and strengthened the rulebook for implementing Kyoto and, even more importantly, backed the EU’s view that the time has come to start discussing future global action. The battle against climate change is winnable but with the Earth’s temperature continuing to warm rapidly – NASA says 2005 was the hottest year on record – farther-reaching measures will be needed after the Kyoto targets expire in 2012.. Building on Kyoto, the international community must seize the opportunity of the talks starting this spring to create a global architecture that will deliver the deep reductions in greenhouse gas emissions necessary to keep climate change within tolerable limits. The post-2012 arrangements need the participation of all major emitters while taking full account of the development needs of less developed countries. The EU is showing the way forward in addressing climate change with practical measures such as our emissions trading scheme and contributions such as the Commission’s February 2005 paper on the principles that should underpin the future climate regime, which proved to be so influential in Montreal and other fora. We are determined to continue exercising this leadership to secure a successful outcome to the forthcoming talks”.
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Kyoto Anniversary: Speech of Environmental Commissionner Stavros Dimas, 15 Feb 2006
BRUSSELS (European Commission) - Good morning ladies and gentlemen.
Tomorrow is the first anniversary of the Kyoto Protocol’s entry into force. I want to mark this occasion by looking briefly at the achievements of the past year and our climate change agenda for this year.
But first of all, let’s be clear about why we need to fight climate change. Climate change is one of the gravest challenges we face. It poses a vital threat to the future stability and prosperity of our societies. If there is one global challenge, it is climate change.
The greenhouse gases caused by our activities are rapidly warming the Earth. NASA tells us that 2005 was the hottest year since records began. The five hottest years have all been since 1998.
Climate change is not an academic question anymore; its impact is already felt around the globe. Here in Europe we experienced devastating floods, droughts and forest fires in some areas last year. Hurricane Katrina has brought home to us all the terrible human suffering and the huge economic cost that climate-related disasters can cause. These are the kind of events that the scientists expect to happen increasingly frequently with global warming.
This warming is changing the face of our world. The polar ice caps and mountain glaciers are literally melting threatening not only the lives and habitats of penguins (projected background picture). The melting ice will raise sea levels further, threatening floods in low-lying and coastal areas around the world where hundreds of millions of people live. The ice cover in the Arctic reached the lowest level ever recorded last year.
Climate change will aggravate water scarcity in some regions, intensifying the hardship already faced by over one billion people who lack access to fresh water supplies. It will increase the numbers suffering from hunger. It will cause and aggravate the spread of tropical diseases like malaria. In the long term, as vital resources become scarcer, climate change could trigger famines, large movements of refugees and even regional conflicts.
These are the reasons why we have to win the battle against climate change. The Kyoto Protocol is an essential first step towards doing so, and its first year in force has brought important progress.
In the EU we have seen our ground-breaking greenhouse gas emissions trading scheme take off, with allowances equivalent to 260 million tons of CO2 traded in 2005 - worth around 5 billion euros. Other initiatives have included the Commission’s renewed drive to improve Europe’s energy efficiency and our action plan to promote greater use of biomass for energy. And we have begun a new phase of the highly successful European Climate Change Programme to develop further cost-effective measures to reduce our emissions in the future.
At the international level, the highlight of the past year was undoubtedly the world climate change conference in December in Montreal. There we succeeded in finalising and strengthening the rulebook for implementing Kyoto. Even more importantly, we succeeded in convincing our partners that the time has come to start discussing the further global action that needs to be taken once the Kyoto targets have expired in 2012.
These important talks will begin this spring (and may take several years). The international community must seize this opportunity. It is literally the last one before we run out of time to contain climate change. Last year, the EU already provided a global architecture that builds on Kyoto’s structures with its paper on winning the battle against climate change.
We believe that such architecture could deliver the deep reductions in greenhouse gas emissions that will be necessary to keep climate change within tolerable limits. For this we need the full participation of all major emitting countries – such as the United States - the world’s leading economy, but also the world's leading polluter. But we must also use a differentiated approach that takes full account of the development needs of less developed nations.
The EU will continue to lead the efforts to secure a successful outcome of the future talks on climate change.
Besides participating actively in the talks, this year we will be building further on the climate change partnerships we set up last year with China and India and expanding our bilateral cooperation on climate change with other key energy consuming countries. Within the next few months we will be presenting an initiative on creating a new mechanism to support renewable energy projects in developing countries.
This will be another busy year for strengthening our internal action too. Climate change concerns will be at the heart of the Commission’s activities on energy security and energy efficiency. We will be reviewing the functioning of the emissions trading scheme and proposing any necessary changes. We will also propose legislation to include aircraft emissions in the scheme.
A major task will be to check and approve Member States’ national allocation plans for emission allowances for the trading period covering 2008-2012. The Commission will also issue a Green Paper on adapting to climate change. The new phase of the European Climate Change Programme will start yielding results that are likely to lead to specific measures at some time in the future.
Ladies and gentlemen, let me conclude by emphasising that it is not only governments and industry that need to take measures to fight climate change. While we need new technologies to reduce our emissions, each of us also has the power to make a difference. Even small changes in our behaviour can help to prevent emissions without affecting our quality of life. In June, the Commission will launch an EU-wide awareness-raising campaign focusing on how all of us can contribute to fighting climate change through our daily actions.
The campaign will use billboards, newspaper ads, radio and TV spots, email chains and many other communication devices to encourage citizens to make small changes that add up to big savings. These range from turning down the home thermostat by 1 degree, which reduces heating emissions by 5-7%, to using energy-saving light bulbs and leaving the car at home whenever possible.
But it is also important that citizens express their environmental concerns to their representatives in local, regional and national government.
Winning the battle against climate change is a major political priority that Europe’s citizens strongly support. We hope to show them that they can also contribute directly to its success.
Let me underline once again: Future generations will judge us on the basis of our efforts to combat climate change. The Kyoto protocol should not be seen as the end of our efforts. On the contrary, it is just the beginning
And now I’d be happy to take any questions you have.
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Commissioner Dimas at Dubai environmental meetings to advance global sustainability agenda, 6 Feb 2006
BRUSSELS (European Commission) - Environment Commissioner Stavros Dimas will represent the Commission in a set of environmental conferences under the auspices of the United Nations, to begin tomorrow in Dubai, United Arab Emirates. The meetings, gathering environment ministers and senior officials from more than 180 countries. seek to advance the global sustainability agenda, with a focus on chemicals management, energy, ecotourism and global environmental governance.
"The meetings in Dubai will bring together all the relevant players and are a real chance to make progress on key issues," said Commissioner Dimas. „We must find common language on future energy policies, so they respond to development needs and to the climate change threat. We also have to work to improve international environmental governance."
The centre-piece of the Dubai events is the 7-9 February Global Ministerial Environmental Forum, which also serves as a special session of the Governing Council of the United Nations Environment Programme (UNEP). Special sessions are held every second year. They give environment ministers from around the world, UN agencies and other international and regional organisations working on environmental issues the chance to debate key challenges and identify common responses.
Future energy policies are high on the agenda of the special session. Commissioner Dimas will advocate energy policies that improve access to energy services for the world's poor (one of the Millennium Development Goals) while maximising energy efficiency and fostering increased use of renewable energy to reduce greenhouse emissions and increase security of supply. A further focus will be clean and innovative technologies.
In this context, ministers from the 88 member governments of the Johannesburg Renewable Energy Coalition (JREC) will hold a separate meeting on 7 February to formalise their views on future action required to accelerate renewable energy policies and markets. JREC was launched with the support of the EU in 2002 and is chaired by the Commission and Morocco. Its members are committed to national and regional targets and timetables for developing markets and guiding investments in renewables.
Another important point on the agenda is how to ensure continuing improvement in international environmental governance. The meeting will discuss both practical programmes of action and potential long-term institutional developments designed to ensure co-ordinated and effective responses to global environmental challenges.
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Climate change: Commission welcomes conciliation agreement on fluorinated greenhouse gases, 6 Feb 2006
BRUSSELS (European Commission) - Environment Commissioner Stavros Dimas will represent the Commission in a set of environmental conferences under the auspices of the United Nations, to begin tomorrow in Dubai, United Arab Emirates. The meetings, gathering environment ministers and senior officials from more than 180 countries. seek to advance the global sustainability agenda, with a focus on chemicals management, energy, ecotourism and global environmental governance.
"The meetings in Dubai will bring together all the relevant players and are a real chance to make progress on key issues," said Commissioner Dimas. „We must find common language on future energy policies, so they respond to development needs and to the climate change threat. We also have to work to improve international environmental governance."
The centre-piece of the Dubai events is the 7-9 February Global Ministerial Environmental Forum, which also serves as a special session of the Governing Council of the United Nations Environment Programme (UNEP). Special sessions are held every second year. They give environment ministers from around the world, UN agencies and other international and regional organisations working on environmental issues the chance to debate key challenges and identify common responses.
Future energy policies are high on the agenda of the special session. Commissioner Dimas will advocate energy policies that improve access to energy services for the world's poor (one of the Millennium Development Goals) while maximising energy efficiency and fostering increased use of renewable energy to reduce greenhouse emissi-ons and increase security of supply. A further focus will be clean and innovative technologies.
In this context, ministers from the 88 member governments of the Johannesburg Renewable Energy Coalition (JREC) will hold a separate meeting on 7 February to formalise their views on future action required to accelerate renewable energy policies and markets. JREC was launched with the support of the EU in 2002 and is chaired by the Commission and Morocco. Its members are committed to national and regional targets and timetables for developing markets and guiding investments in renewables.
Another important point on the agenda is how to ensure continuing improvement in in-ternational environmental governance. The meeting will discuss both practical programmes of action and potential long-term institutional developments designed to ensure coordinated and effective responses to global environmental challenges.
The Commission welcomes the agreement reached by the European Parliament and the Council last night in Conciliation to reduce emissions of fluorinated greenhouse gases. Fluorinated gases are extremely powerful and long-lived greenhouse gases used in refrigeration, air conditioning, fire-fighting, electrical transmission systems and various industry processes. Reducing their emissions is a requirement under the Kyoto Protocol and will help the EU and its Member States meet their emission targets under the Protocol. Based on a proposal made by the Commission in August 2003, the legislation agreed today includes a Regulation tackling emissions from stationary applications using these gases as well as banning some products and equipment containing them, and a Directive providing for the phase out of the fluorinated gases currently used in vehicle air conditioning systems.
"The legislation agreed today will make a significant contribution to the EU’s efforts to reduce emissions of greenhouse gases and to meet its Kyoto commitments" said Environment Commissioner Stavros Dimas. "It is an important first step because most F-gases have a global warming effect thousands of times greater than carbon dioxide. By agreeing on this legislation, the EU has once again demonstrated its commitment to the fight against climate change.”
The fluorinated greenhouse gases covered are hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). These gases currently account for 2% of total EU greenhouse gas emissions. However, their warming impact on the atmosphere their ‘global warming potential’ - is high and many of them have long atmospheric lifetimes. For example, sulphur hexafluoride has a global warming potential 23,900 times that of carbon dioxide (CO2), which is the most common greenhouse gas. If no measures were taken, the Commission estimates that emissions of fluorinated gases would be 50% above 1995 levels in 2010. With the measures agreed today, they will be reduced by more than 20% from 1995 levels by 2012 and by even more subsequently.
The Regulation will reduce emissions by focusing on the containment of these gases, notably by setting leakage inspection standards for refrigeration, air conditioning and fire fighting equipment as well as provisions for the recovery of the gases from such equipment when it reaches the end of its life. The Regulation will strengthen monitoring of the emissions of the gases, introduce labelling of certain products and equipment so that key information on these gases is made available, and set up EU-wide minimum standards for training and certification for personnel concerned.
Furthermore, where containment is not feasible or the use of certain fluorinated gases is inappropriate, marketing and use will be banned. Examples include their use in magnesium die-casting and the marketing of vehicle tyres, non-refillable containers, windows, footwear, one-component foams, self-chilling drinks cans, novelty aerosols, new fire protection systems and fire extinguishers containing these gases.
The Directive will phase out HFC 134a, the refrigerant currently used in car air conditioning system, from 1 January 2011 onward for new vehicle models and from 1 January 2017 for all new vehicles. In addition, vehicle air conditioners should not leak more than 40 grams of HFC-134a per year. If the vehicle has two evaporators, as can be the case in some minivans for instance, the maximum leakage rate should not be higher that 60 grams per year.
Under both pieces of legislation, Member States are invited to promote the use of more environmentally friendly technologies and alternatives.
Following today’s conciliation agreement, the final adoption of these legislative acts by Parliament and Council is expected by mid-2006. Member States will then have 18 months to transpose the Directive, while the Regulation will enter into force unchanged 20 days after its publication in the Official Journal and will apply 12 months from the date of entry into force.
The legislation is only a first step. Once in force there will need to be a period of monitoring and evaluation, after which the Commission will consider the need for additional measures on the basis of a thorough review.
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MEPs demand speedy legislation on renewable energy for heating and cooling, 31 Jan 2006
Strassburg (European Parliament) - The Industry Committee called on the European Commission on Thursday to propose legislation by July to at least double by 2020 the share of renewable energies used in Europe for heating and cooling. Benefits would include more secure energy supplies, reduced demand for conventional energy, a cleaner environment and the creation of jobs in new industries.
Around 50% of primary energy consumption goes on heating. Demand for energy for cooling is also growing. Legislation is urgently needed if the share of renewable energy - mainly geother-mal, solar thermal and biomass - in these sectors is to be doubled from its present level of 10% by 2020 and also to reach the target of 12% of renewable energies in total energy consumption by 2010 as laid down in the 1997 EU white paper on renewable energy.
In their report, MEPs make detailed recommendations to the Commission on the content of such legislation. It would provide a framework for national instruments and would fill a legislative gap, as EU strategies already exist to promote electricity from renewable sources and to promote biofuels or other renewable fuels for transport.
The legislation would need to provide long-term investment and planning security, which is cru-cial for energy investors. Financial incentives would be provided by the Member States, although national support schemes should in the end be phased out. For example, Member States might use tax breaks or direct investment aid or make renewable energy plants mandatory for new buildings. The EU, for its part, could encourage the use of the structural and cohesion funds to support research into the use of renewable energy for heating and cooling.
These proposals were made under a little-used procedure, which enables Parliament to request the Commission to submit draft legislation (Rule 39 of the EP Rules of Procedure - see link be-low). The Industry Committee's draft resolution still needs to be approved by a majority of the Members of Parliament (i.e. at least 367 out of 732). The committee's text, drafted by Mechthild Rothe (PES, DE), was adopted with 39 votes in favour and only 3 abstentions and so stands eve-ry chance of being adopted in plenary.
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Opening of call for input on a new operational entity, 31 Jan 2006
BONN (UNFCCC) - An opportunity to submit comments and information regarding the applicant entity is provided for: "ECA CERT, Certificacion,S.A. (ECA CERT)"
Background:
In accordance with the "Procedure for accrediting operational entities by the Executive Board of the CDM", the UNFCCC CDM web site provides for each applicant entity, over a period of 15 days, the opportunity for Parties, NGOs accredited with UNFCCC or stakeholders to provide comments or information on the applicant entity. The working day prior to the opening of the 15 days period, the secretariat informs the public using the UNFCCC CDM News facility.
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Climate Change: Montréal and beyond - Speech of Stavros Dimas at the European Parliament, 26 Jan 2006
BRUSSELS (European Commission) - Thank you for the opportunity to discuss with you the outcome of the Montreal Climate Change Conference that was held in December as the 11th Conference of the Parties to the UN Framework Convention on Climate Change and the 1st UN Climate Conference after the Kyoto Protocol entered into force.
I was very pleased with the presence of 10 Members of the European Parliament at COP-11. It underlines the importance that both of our institutions attach to addressing the challenge of climate change and the role of the multilateral process in doing so. Our frequent contacts and cooperation in Montreal proved fruitful - it is important that we continue this at future meetings.
The outcome of Montreal Conference is a significant step forward for the multilateral climate negotiations. The Kyoto Protocol is now fully functional and the agreement on the “Montreal Action Plan” opens a gateway for discussing the future international cooperation on climate change. This will provide more certainty for the European carbon market and for the private sector.
Indeed, the list of political achievements from Montreal is impressive:
Firstly, we have agreed to launch two tracks of official dialogue on the future scheme to tackle climate change.
- The Convention Track including all Parties: A thorough forward-looking dialogue under the Convention will be conducted in up to four Workshops to be held over the next two years. The results of this dialogue will be reported back to the Conference of Parties in 2007. This Convention track includes also United States and Australia, that have not ratified Kyoto and of course all the major developing countries.
- The Kyoto Track: This “track” will discuss further emission reductions for developed countries under the Kyoto Protocol for the period after 2012. An UN ad-hoc working group under the Kyoto Protocol was set up. It will complete its work as early as possible and in time to ensure that there is no gap between the first and the second Kyoto commitment period.
Secondly, Montreal took all the necessary decision to make Kyoto fully operation. This covers:
- The rulebook for the Kyoto Protocol, the so-called Marrakech Accords, was adopted in full.
- The Compliance Decision makes the Kyoto Protocol binding for all Kyoto Parties, and sets up the Compliance Committee with its facilitative and enforcement branch.
- The five-year adaptation work programme contains a full set of activities, including work to further enhance our knowledge on the impacts of and vulnerabilities to climate change. It also contains concrete measures to plan for adaptation and take adaptation measures.
- The adaptation fund will finance adaptation activities. It will be sourced through a levy on the Clean Development Mechanism, most likely as of 2008.
Thirdly, Montreal went further and made the Kyoto Protocol a stronger and more efficient instrument.
- The Clean Development Mechanism was strengthened. The CDM Executive Board’s executive and supervisory role was clarified and re-inforced. The Secretariat will hire more staff in order to improve its services to the EB and its panels. Parties also pledged US$ 8,188,050 to the operation of the CDM, this includes US$ 5 million from the EU, and US$ 890,000 from the Community.
- The institutions for the operation of the Joint Implementation (JI) were set up. Preparatory work done for the CDM can also be used for the approval of JI projects. This means that JI projects that have already been prepared can be fast-tracked for approval. The EU also pledged over US$ 700,000 (incl. US$ 250,000 from the Commission) to the JI Supervisory Committee.
Lastly, the European Union has also used COP-11 to demonstrate the significant progress it has made in implementing the Kyoto Protocol. The many positive reactions I received strengthen my belief that the EU’s response to the climate challenge can be cost-effective and even give European companies a competitive edge. The strong interest in our trading scheme made it clear that we are setting an example for the world to follow.
The EU has asserted international leadership in the fight against climate change. It maintained its support for the Kyoto Protocol in times when the latter’s entry into force was cast under considerable doubt. However, we have to stay aware that, domestically, more needs to be done: most Member States need to implement additional measures to reach the Kyoto target. Also further common measures at the EU level will be needed. The ongoing 2nd phase of the European Climate Change Programme will help to identify the best of these.
Let me also address the internal EU debate on climate change. I believe the agreement to open an international dialogue in Montreal is also an important stimulus for the EU. The EU strategy to complement the UN process with bilateral engagement and to focus on confidence building and listening to other Parties has paid off. The Montreal Conference validates this approach. The EU should now work with all parties, in particular major emitters such as the US and emerging economies, to engage constructively in a debate on broadening participation in the future international climate change regime.
I believe Montreal marks a new stage in international climate change co-operation. We have left the pioneering years behind us. We now have an international system, with all the necessary mechanisms. Our focus therefore turns to consolidating this system and making sure that it functions.
But equally, we cannot rest on our laurels. Climate change requires urgent action and concerns us all. Deep emission cuts will be necessary if we are to stabilise the concentration of greenhouse gases in our atmosphere.
This year, the 2nd phase of the European Climate Change Programme will discuss new initiatives to strengthen our climate policy. This ECCP II will include a comprehensive review of the first phase ECCP policies including EU emission trading, action on carbon sequestration aviation and other forms of transport – I am looking forward to the recommendations and will put forward new initiatives to strengthen our climate policy based on the results of this stakeholder based process. I know that I am able to count on Parliament’s support for this work
The “Montreal Action Plan” agreed at the UN climate Conference delivered a big step forward in relation to the discussions on the future international climate change regime.
Under the framework of the UN Convention on Climate Change, the Montreal Conference agreed on a thorough forward-looking dialogue on long-term actions to tackle climate change. All parties to the UN Convention, including the US, will take part in this dialogue.
While this dialogue yet falls short of formal negotiations, it can provide valuable input on future action and the views of all relevant parties which can then serve as a basis for negotiations on the future international climate change regime. The international debate on future targets and contributions has to evolve over the coming months.
The EU’s first priority however, must remain to build broad international support for further action. Russia has ratified the Kyoto Protocol that allowed its entry into force. The G8 has concluded its Plan of Action. The Commission has launched new cooperation initiatives on climate change with Russia, Ukraine, India and China. These initiatives have built confidence and trust and this has been paying off in Montreal.
I welcome also the Asia Pacific Partnership on Clean Development and Climate which held its inaugural meeting in Sydney on 11 and 12 January 2006. The Partnership will complement other technology initiatives seeking to help address the problem of climate change. Over the last year alone we have seen the Gleneagles Plan of Action, the EU-China Partnership on Climate Change and the EU-India Initiative on Clean Development and Climate Change.
The Commission is determined to help ensure that the EU maintains its leadership position in these new discussions on the future climate change regime and I count on your support for this. Each individual is important for this. Therefore we will for instance invest 4.7 million Euro in a mass-media awareness raising campaign in the EU, highlighting the role that each citizen can play in fighting climate change.
The EU is also the major contributor to the 2001 Bonn Political Declaration, which pledges 410 million USD per year in climate change funding for developing countries, starting this year. The EU is also the main contributor to the Least Developed Countries Fund, which will provide funding for the implementation of specific adaptation activities. We are only at the start of the debate on post-2012 climate change policies. The EU’s leadership on climate change will be crucial in ensuring that this debate continues and comes to a fruitful end.
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Questions & Answers on national allocation plans for 2008-2012, 9 Jan 2006
BRUSSELS (European Commission) - What are national allocation plans and what is their purpose?
National allocation plans (NAPs) are plans that set out each Member State’s allocation of CO2 emission allowances under the EU emissions trading scheme (ETS). NAPs fix both the total of emission allocations available in each member state and the allocation made to each installation covered by the scheme. By placing a cap on the total number of emission allowances, NAPs create the scarcity needed for a functioning market in allowances to develop. This in turn enables companies to limit or reduce their emissions at least cost.
When must the next NAPs be ready?
Member States are required to draw up their NAP well in advance of each ETS trading period and to have it approved by the European Commission. NAPs for the second ETS trading period, running from 2008 to 2012, must be submitted to the Commission by 30 June 2006. This deadline needs to be respected so that the Commission can take decisions on all 25 NAPs and member states can take their final allocation decisions by the end of 2006, well before the second trading period starts.
The second trading period under the ETS coincides with the five-year period – known as the ‘first commitment period’ - in which the EU and member states must meet their targets for limiting or reducing emissions of greenhouse gases under the Kyoto Protocol on climate change. For many Member States the NAPs for 2008-2012 are likely to play an important part in ensuring their targets are achieved.
How will the Commission assess the NAPs?
The Commission will check NAPs for their conformity with a set of 12 criteria laid down in the directive that establishes the ETS. For the first ETS trading period (2005-2007), only 11 of the criteria were relevant. The application of the criteria and lessons learnt from the first trading period are further explained in two guidance communications from the Commission. The first of these was issued in January 2004 and the second, focusing on NAPs for the second trading period, in late December 2005.
Under the first of the 12 criteria, it will be necessary to assess whether a Member State’s NAP, together with other policies and measures, will guarantee the achievement of its Kyoto target. Member States relying on government purchases of emission credits obtained through the Protocol’s mechanisms to promote emission-savings projects in third countries – known as Joint Implementation (JI) and the Clean Development Mechanism (CDM) - will need to substantiate their intentions more thoroughly than for the first trading period and demonstrate progress in making these purchases.
Similarly, Member States relying on additional policies and measures will need to substantiate the effects better and demonstrate progress in implementing or adopting them.
There are also criteria that seek to ensure non-discrimination between companies and between the different sectors as well as compliance with the EU's competition and state aid rules. Other criteria relate to provisions in the plan for new entrants, the accommodation of early reduction efforts and clean technology.
The final criterion, which was not in place for the 2005-2007 trading period, requires NAPs to specify the maximum amount of JI and CDM credits that may be used for compliance purposes by installations under the ETS.
What are the Commission’s powers concerning NAPs?
The Commission must take a decision on each NAP within three months of the NAP having been notified to it.
If the Commission does not reject any aspect of a NAP, the Member State can take a final decision on the allocation to individual installations.
If the Commission finds that a NAP is not in line with the agreed criteria or with the EU Treaty it can reject it partially or in full. A rejection of a national allocation plan means that the Member State may not proceed to implement the plan as it stands, i.e. may not allocate the number of allowances proposed. The Commission must give its reasons for rejecting a NAP, and these reasons give guidance on how the Member State can make the plan compatible with the allocation criteria.
If Member States whose plans are partially rejected implement the proposed changes they do not have to submit their plans to the Commission a second time but can proceed to take their final allocation decision.
Can a Member State make changes to the plan after Commission approval?
Once the Commission has approved a plan, or the amendments requested have been undertaken, the allocation process is completed with a final allocation decision at national level and the allocation of allowances in the Member State’s electronic registry. For the second trading period the deadline for the final allocation decision is 31 December 2006.
Until the final allocation decision is taken, the Member State can make certain changes, for instance to the number of allowances for individual installations if improved data have become available, eg on historic emissions. Each NAP decision by the Commission specifies which types of amendments need to be accepted by the Commission before they can be implemented. The Commission will not accept NAP amendments notified after 31 December 2006, other than those required by the Commission’s decision on a given NAP.
Once the final allocation decision has been taken at national level and the final NAP is published, no more changes to the number of allowances in total or per installation can be made. The final allocation decision concludes the allocation process and formally opens the market for allowances in the respective Member State.
Do Member States have a say in each other’s NAPs?
While the Commission has sole responsibility for assessing NAPs, the ETS directive provides that the Climate Change Committee, consisting of Member State representatives, considers each plan. This Committee provides a forum to debate each NAP. The Commission, as the Committee’s chair, takes the Committee’s conclusions into account in its assessments.
Can a member state issue as many emission allowances as it wants?
No. The directive does not explicitly prescribe a given number of emission allowances but the quantity member states may issue is governed by various criteria. If a member state were over-generous in issuing allowances, its NAP would fail to comply with these criteria.
The Commission’s December 2005 guidance sets out a methodology for calculating a benchmark for the caps by Member State for the 2008-2012 trading period. It is based on analysis of the combined effect of annual economic growth and carbon intensity (i.e. the quantity of greenhouse gases needed to produce one unit of output) over time. According to this methodology, caps should not increase in any Member State from the first to the second trading period. Member States that are well on track to meeting their Kyoto targets may maintain their first phase cap. Member States which are not sufficiently on track must reduce the cap from the first to the second trading period. Overall this methodology would lower the annual EU-wide ETS cap in the second phase by some 6% compared with the first phase cap. This reduction would ensure that the EU and all Member States achieve their agreed Kyoto targets.
Is there a limit on the use of JI and CDM credits by companies in the second trading period?
An amendment to the ETS directive, known as the Linking Directive, allows companies in the second trading period to use credits from JI and the CDM, up to a certain proportion of their allocation of emission allowances, to cover their emissions. The degree of use must be supplemental to reductions achieved through domestic policy action, and needs to be fixed by each Member State in its NAP by specifying the maximum amount of such credits. Member States are free to choose whether to apply the limit individually in respect of each installation, or collectively to all installations. For greater flexibility, the Commission is recommending that Member States apply the limit for the entire trading period and collectively to all installations.
The limit on the use of credits does not imply that a company cannot generate and sell more of them. In fact, even if the limit should be reached in a Member State, the credits could be used by other companies in other Member States. And even if the limit were reached in all Member States, a company could sell credits to governments (both in Europe and beyond) or to other companies (both in Europe and beyond), or could keep them for the next ETS trading period.
What lessons have been learned from the first allocation exercise that can be applied to the second one?
The first allocation process, for the 2005-2007 period, yielded many important lessons which have been reflected in the Commission’s December 2005 guidance for the second trading period.
Chief among these is that the process is very time-consuming. Timely notification of NAPs to the Commission as well as timely final allocation decisions are therefore important for giving companies certainty well before a trading period starts.
Another important lesson is that the NAPs for the first trading period were too complex and not sufficiently transparent. Complexity makes it hard for companies and other market actors to understand a NAP and thereby creates uncertainty. Also, a lack of transparency makes it very difficult for stakeholders to understand and form a view on plans.
The Commission’s guidance thus emphasises the need to make the second period NAPs simpler and more transparent. To ensure greater transparency, the Commission has drawn up a number of standardised tables to summarise key information contained in NAPs. To move to simpler NAPs the Commission encourages Member States to review critically the administrative rules created in the first NAP round.
Which installations are covered by the ETS?
Annex I of the directive defines the installations covered by the ETS. Included are those installations performing specified activities (energy, ferrous metals, mineral industry, as well as pulp, paper and board) above certain capacity thresholds, which generally cause high CO2 emissions. Combustion processes involving crackers, carbon black, flaring, furnaces and integrated steelworks, which are typically carried out in larger installations causing considerable emissions, also fall under Annex I. They therefore need to be included by all Member States in the second trading period in order to ensure a uniform coverage of combustion installations by the ETS.
What can be done with regard to installations emitting small amounts of carbon dioxide?
The Commission is aware that some installations emitting relatively low amounts of CO2 per year are covered by the ETS, and that concerns have been raised regarding the cost-effectiveness of including these ‘small installations’ in the scheme.
For the purposes of drawing up the second NAPs, the legislative framework for small installations is unchanged. However, the Commission invites Member States to explore the flexibility already offered by the current framework. It is also considering looking at measures to make the situation easier for small installations in its forthcoming review of the ETS. In this context it will consider proposing an amendment to the directive to enable the removal of some small installations in the course of the second trading period.
In addition, the Commission is paying particular attention to realising the potential for cost savings for the smallest installations in its ongoing review of the ETS monitoring and reporting guidelines. The Commission aims to have these in force by the start of the second trading period on 1 January 2008.
What are the next steps in the review of the EU ETS?
The Commission closely monitors the functioning of the ETS. By 30 June 2006 it is required to present a review of the scheme to the Council and the European Parliament which will look at a range of issues, including whether further sectors and greenhouse gases should be included. The results of a survey of stakeholders launched in June 2005 will feed into the review and can also inform NAPs for the second trading period.
The Commission’s report may be accompanied by proposals for amending the scheme, but the resulting changes would most likely not take effect until the third trading period beginning in 2013. There are three main reasons for this. First, any amendments have to be adopted by the Parliament and Council in co-decision, a procedure which can take two to three years. Second, operators need regulatory stability, which means they should be given time to adapt before the amendments enter into force. Third, any amendments cannot be reflected in the NAPs for the second trading period since these have to be submitted by 30 June 2006 as well.
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Emissions trading: Commission sets out guidance on national allocations for 2008-2012, 9 Jan 2006
BRUSSELS (European Commission) - The European Commission has published a Communication setting out guidance to help member states when they draw up national plans for allocating carbon dioxide emission allowances for 2008-2012 under the EU Emissions Trading Scheme (EU ETS). This second trading period is significant because it coincides with the five-year period in which the EU and member states must meet their targets for limiting or reducing emissions of greenhouse gases under the Kyoto Protocol on climate change. Member states need to ensure that their emissions strategies, in which allocations under the ETS are an important element, achieve their targets.
Standardised information
Experience with the first round of National Allocation Plans (NAPs), covering the 2005-2007 trading period, has shown that such plans need to be more transparent and easier to implement. Therefore, the Commission’s new guidance document proposes a set of standardised tables for presenting important information, such as projected emissions, assumptions regarding fuel prices and the reductions expected from other policies and measures.
Guidance on setting caps
Given that the 2008-2012 trading period under the European Trading Scheme coincides with the ‘commitment period’ for meeting emission targets under the Kyoto Protocol, the guidance document signals the Commission’s intention to look very closely at the overall policy mix – including use of the ETS – which member states propose in order to achieve their targets. It also offers a consistent methodology for Member States to set caps for their emissions.
Scope and definitions
Finally, the Commission addresses the types of combustion installations that should be covered including the situation of ‘small’ installations, i.e. those emitting relatively low amounts of CO2 per year.
In addition, an ongoing revision of the rules for monitoring and reporting of emissions will ease the administrative burden for small installations. The Commission envisages further help in its forthcoming review of the ETS.
Background
National allocation plans
Under the Emissions Trading Directive which established the ETS, governments are required to draw up national allocation plans (NAPs) for each trading period. NAPs fix the total amount of CO2 that can be emitted by all the installations in their country covered by the scheme as well as the number of emission allowances allocated to each individual installation.
An installation that emits more CO2 than it has allowances for would need to buy additional allowances in the market, while one that emits less has the possibility to sell its surplus allowances.
The ETS, the world’s first and biggest international emissions trading scheme, began operating on 1 January 2005. Member states are required to notify their NAPs for 2008-2012 to the Commission by 30 June 2006. The Commission needs to approve the plans and has the power to require changes if it finds a plan incompatible with the agreed criteria. The new Communication responds to a Council request from December 2005 asking the Commission to do its utmost to provide early guidance on preparation of the NAPs
The new Communication builds on guidance provided by the Commission for the first round of NAPs. This was published as COM (2003) 830 final.
http://europa.eu.int/eur-lex/en/com/cnc/2003/com2003_0830en01.pdf
30 June 2006 is the deadline not only for member states to notify their NAPs for 2008-2012 to the Commission but also for the Commission to report to the Council and Parliament on experience to date with the ETS as a whole and to make proposals as appropriate. Preparations for the review are ongoing.
The guidance document can be found at:
http://www.europa.eu.int/comm/environment/climat/pdf/nap_2_guidance_en.pdf
Further information on Emissions Trading and climate change policy is available at:
http://www.europa.eu.int/comm/environment/climat/emission.htm
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Opening of call for inputs on double-counting / Other methodological issues, 6 Jan 2006
BONN (UNFCCC) - (1) Opening of public call for inputs on double-counting
The Board, at its twenty-second meeting, agreed to open a public call for inputs on possible situations where certified emission reductions (CERs) might be claimed from the same project (double-counting) at different stages of the product chain. The call for inputs is for possible options to avoid the double-counting in such situations. The Board further agreed that a technical analysis of the issue of double-counting, based on public inputs, is required in particular with regard to:
- outlining possible situations where double-counting is likely to occur,
- analysing possible options for avoiding the double-counting of emission reductions.
Public comments should be send to the UNFCCC secretariat before 17 February 2006.
(2) AR methodologies
A reply on technical queries from the Afforestation and Reforestation Working Group (AR WG) was provided on case
ARNM0018 : Assisted Natural Regeneration of Degraded Lands in Albania
(3) Methodologies
Three (3) requests for clarification of an approved methodology have been received:
- Applicability for biomass cultivated from a farm owned by project participants
- Parameters to be fixed ex-ante for the entire crediting period
- Inclusion of the Top Surplus Pressure (TRT) technology
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CDM: Request for issuance under review, 5 Jan 2006
BONN (UNFCCC) - The request for issuance for the CDM project activity "Granja Becker GHG Mitigation Project" (Ref no. 0108), is under consideration for review because three requests for review have been received from members of the Board. The consideration of a review will be included in the proposed agenda of the 23rd meeting of the Executive Board which is to be held in Bonn, Germany, 22 – 24 February 2006.
The request for issuance is listed on the UNFCCC CDM web site in the section "Request for review".
Please note that the Executive Board, upon having considered the requests for review, will either decide to undertake a review of the request for issuance or to proceed with the issuance of CERs.
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