Sustainable Development Policies and Measures:

1. Sustainable Development Policies and Measures: Putting development first in a carbon-constrained world. COP11 December 5, 2005 Rob BradleyClimate and Energy ProgramWorld Resources Institute

2. Authors Navroz K. Dubash, National Institute of Public Finance and Policy, India José Roberto Moreira, University of São Paulo, Brazil Stanford Mwakasonda, Energy Research Centre, South Africa Wei-Shiuen Ng, WRI Acknowledgements • Luiz Augusto Horta Nogueira, Itajubá Federal University, Brazil • Virginia Parente, University of São Paulo, Brazil • Jonathan Pershing, WRI • Lee Schipper, WRI • Harald Winkler, Energy Research Centre, South Africa Funding providers Canadian International Development Agency Government of Norway, Government of the Netherlands

3. Growing in the Greenhouse • Why some developing countries must be engaged in mitigation activity if we are to avoid catastrophic climate change. • Developing countries face urgent and legitimate development priorities that make climate change a low political priority. • SD-PAMs as a means of reconciling these facts. • Examples studied in Growing in the Greenhouse. • Placing SD-PAMs in a climate agreement – why and how?

4. Top 25 GHG emitters, 2000 Emissions from six gases Percent Global GHG Emissions Source: WRI, CAIT

5. The development challenge Population without access to electricity, selected countries

6. The development challenge Motor vehicles per 1000 people, selected countries

7. What is an SD-PAM? A commitment to implement a policy or measure – not based on GHG emissions. • Driven by host country development needs. • Large-scale policies and measures, not projects. • Development path chosen results in significantly lower emissions. • Declared and registered under the international climate framework.

8. SD-PAMs implement UNFCCC principles “Parties have a right to, and should, promote sustainable development.” “policies and measures to protect the climate system . . . should be integrated with national development programmes.” UNFCCC, Art. 3.4. The SD-PAMs approach aims to create a formal mechanism to recognize developing country efforts in this regard, and to assist them.

9. Looking at real-world examples Brazil Biofuels for transport Reducing the economic impact of oil imports and supporting the rural economy China Innovative transport approaches Promoting mobility while avoiding urban infrastructure and oil supply constraints India Renewable energy in rural electrification Providing electricity faster and safer to 500 million people South Africa Carbon capture and storage Finding ways to reduce the impact of coal in developing countries

10. Brazil – ethanol for transport An SD-PAM already implemented! Driven by foreign exchange concerns – has saved $100 billion in external debt. Saves an estimated 26 Mt CO2 per year. Some 20 other countries could benefit from same approach.

11. India – options for rural electrification India’s rural electrification: 500-600 million people without electricity. Three supply scenarios: • Grid First • Diesel First • Renewables First Three levels of rural electricity demand.

13. India – a wider potential role for renewable energy Approaches are evaluated by India’s national criteria. Grid First offers little hope of meeting electrification goals. Diesel First raises significant oil import concerns. Renewables First brings benefits but at significant capital cost – can international policy help? Qualitative assessment of the scenarios CO2 emissions under the scenarios

14. India – a wider potential role for renewable energy CO2 emissions under the scenarios

15. South Africa – carbon capture and storage Many developing countries remain dependent on coal. Carbon capture and storage offers the potential to use coal and cut emissions. However, CCS presents few sustainable development benefits apart from climate protection – perhaps even harm. Important potential for CCS in South Africa, but SD-PAMs is not appropriate. More direct carbon-based finance will be necessary.

16. Why include an SD-PAM in an international agreement? Recognition. Many developing countries are implementing policies that bring major climate benefits. This fact needs wider recognition, which will in turn strengthen DC hands within climate negotiations. Learning. Many countries, developed and developing, share challenges and can learn from each others’ experiences. Integration. Aligning climate policy more closely with development interests engages important stakeholder and decision-makers. Support. Combining development and climate policy enables and promotes wider international support for both sets of goals. This includes the steering of larger sources of finance than are likely to be available for climate change actions alone.

17. How would SD-PAMs work? Pledging • Single pledge • Mutual pledge • Harmonized pledge Registry • Maintained by international body (e.g. UNFCCC Sec.) • Public information makes contribution clear. • Helps with learning, recognition and better mutual understanding of national priorities. Reporting and review • Reporting potentially easier than national communications. • Facilitative review.

18. Thank you! Rob Bradley rbradley@wri.org

19. How would SD-PAMs work? Part 1 The varied nature of SD-PAMs makes a pledge-based approach the most likely format for their implementation. These can take several forms: Single pledge.A country pledges an SD-PAM based on its national circumstances. Mutual pledge.Two or more countries make pledges, perhaps including a pledge of support from a donor or partner country. The pledge to fully implement the SD-PAM on each country is dependent on the fulfillment of the other country pledges. Harmonized pledge.A group of countries pledge to undertake the same action. Potentially interesting among groups of major trading partners, to reduce competitiveness concerns. Mutual and harmonized pledging imply significant international negotiation.