Approaches for Future International Co-operation

1. Approaches for Future International Co-operation AIXG. 22 March 2005 Harald Dovland Ministry of Environment, Norway

2. Goals for a post-2012 regime • Broader participation (with some type of emission commitment) than in the Kyoto Protocol. • US • Some developing countries • Keep the good elements of Kyoto: • Differentiation • Flexibility (“all”gases, multiyear period, mechanisms). • Reporting and review systems. • Include “sinks”. But how?

3. Goals for a post-2012 regime • Broader participation (with some type of emission commitment) than in the Kyoto Protocol. • US • Some developing countries • Keep the good elements of Kyoto: • Differentiation • Flexibility (“all”gases, multiyear period, mechanisms). • Reporting and review systems. • Include “sinks”. But how? (AIXG)

4. Goals for a post-2012 regime (II) • Be perceived as fair by governments and private sector (level playing field, competitiveness, leakage). • Not be perceived to cap economic growth in developing countries. • Simple, at least not overly complicated (need to monitor compliance). • Include: • Co-operation on adaptation • Strengthened co-operation on technology research, development and deployment

5. Type of commitment after 2012 • Continue the Kyoto-type of commitment (emission ceiling relative to a base year)? • Carbon intensity target (emission per unit GDP)? • Development towards equal per capita emissions? • Total GHG-emissions or selected sectors? • Technology standards [or performance standards], possibly for selected sectors? • Research and development? • Multistage, different types of commitment for different levels of development?

6. Q 1 • What options for international co-operation are most conducive to domestic action? • Economic instruments: • Green taxes • Emission trading • Standards (technical, performance, ..), but this is not a cost-effective solution.

7. Q 1 • What options for international co-operation are most conducive to domestic action? • Economic instruments: • Green taxes • Emission trading • Standards (technical, performance, ..), but this is not a cost-effective solution. (AIXG?)

8. Q 2 • Could an agreement containing different approaches (emission targets, technology development and diffusion, policies and measures) be designed in such a way so as to encourage participation, provide flexibility, minimise costs and ensure that all countries pursuing a particular approach have a relatively similar burden and environmental outcome? • Everything is possible, but sometimes things get too complicated?

9. Q 2 Multi-protocol • Emissions caps (total or selected sector(s)) for all or for most developed countries • Adaptation • Technology - research, development and deployment • Should countries sign up to all elements? Or pick the elements they like? • If pick and chose; it seems difficult to ensure level playing field? And designing a fair protocol will be a significant challenge.

10. Q 2 Multi-protocol • Emissions caps (total or selected sector(s)) for all or for most developed countries • Adaptation • Technology - research, development and deployment • Should countries sign up to all elements? Or pick the elements they like? (AIXG) • If pick and chose; it seems difficult to ensure level playing field? And designing a fair protocol will be a significant challenge. (AIXG)

11. Q 3 • Which sectors are the most appropriate for international discussions? Can a sectoral approach be integrated with other approaches in a practical way?

12. Q 3. Sectors • Transport - growing in most countries. • Relatively few car producers • Cooperation between governments to put pressure on producers • Electricity – most important sector globally. • Increased use of renewable energy. • Carbon capture and storage a coming technical option, at least for some parts of the world. • Selected industries • Cement? • Steel?

13. Q 3. Sectors • Transport - growing in most countries. (AIXG?) • Relatively few car producers • Cooperation between governments to put pressure on producers • Electricity – most important sector globally. (AIXG) • Increased use of renewable energy. • Carbon capture and storage a coming technical option, at least for some parts of the world. • Selected industries • Cement? • Steel?

14. Q 3. Integration • Depends on how sectoral commitments are formulated. • If selected sectors are the same for all countries, there should be small practical problems (but may not deliver large reductions). • Large sectors in some countries and total emissions in other countries should be manageable? • Picking different sectors in different countries likely to cause difficulties (will not be a level playing field)?

15. Q 3. Integration • Depends on how sectoral commitments are formulated. (AIXG) • If selected sectors are the same for all countries, there should be small practical problems (but may not deliver large reductions). • Large sectors in some countries and total emissions in other countries should be manageable? • Picking different sectors in different countries likely to cause difficulties (will not be a level playing field)?

16. Long term solution • How can we achieve a 50-60-70% reduction in industrialised countries in 2050? • Changing life-style? • Technology change: • Make use of existing low-carbon technologies, including renewable energy. • Carbon sequestration and storage • Research and development. • Technology diffusion/Technology transfer.