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INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE
Climate Mitigation:Integrating Approaches for
Future International Co-operation
Cédric PhilibertCédric PhilibertEnergy efficiency and environment divisionEnergy efficiency and environment division
ECN side-eventECN side-event
Bali, 7 December 2007
INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE
www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=2000
www.iea.org, “by topic”, then “climate change”, “publications and papers”
Richard Baron, with Julia Reinaud, Matt
INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE
Content of the IEA paperContent of the IEA paperCompetitiveness and climate policyWhat could sectoral approaches consist of?Governance issues
Integration in UNFCCC Negotiating domestic policy Reliance on international flexibility (carbon trading)
Role of industry federations Legal status in any international accord? Risks of anti-competitive behaviour
Industry case studies (cement, steel, aluminium) International market dynamics and challenges Industry’s efforts to date to curb GHG emissions
More at the…
IEA side-event, GH, Monday 11, 6 pm
Annex I Expert Group
on the UNFCCC
Drawing on three 2005 AIXG papers:
Approaches for future international cooperation
New commitment options: compatibility with emissions trading
Integrating approaches for future international cooperation
www.iea.org ; www.oecd.org
Annex I Expert GroupAnnex I Expert GroupAnnex I Expert GroupAnnex I Expert Group
New commitment options: compatibility with emissions tradidng
Dynamic, non-binding and sectoral targets, and price caps, all compatible with emissions trading, with each other and with fixed binding targets In any case governments must be liable in case of
overselling
Other options show mixed compatibility with emissions trading and/or with other target types
Intensity targets only partially alleviate uncertainty from economic growth
Annex I Expert GroupAnnex I Expert GroupAnnex I Expert GroupAnnex I Expert Group
International Other types Domestic Domestic to international
Dynamic Yes Yes Yes YesPrice cap Yes Yes Yes YesNon-binding Yes Yes Yes YesSectoral Yes Yes Yes YesAction ? ? Yes ?Allowances
Endowments No No Yes NoLong term ? No ? ?
Annex I Expert Group
on the UNFCCC
A key question for future negotiations
Can we integrate technology approaches and cap and trade approaches into a future regime?
Annex I Expert Group
on the UNFCCC
Objectives
Define integrationConsider reasons for integration Investigate comparisons of
approaches e.g. a technology approach and a cap-
and-trade approach Comparing results / Comparing efforts Domestic efforts / Efforts to help others
Annex I Expert Group
on the UNFCCC
What is ‘integration’?
Broader concept than linking emissions trading systems based on emission caps
May take place when agreements are negotiated To help the process take preferences into
account, expand efforts and participation
…and/or when policies are undertaken To enhance synergies between approaches,
even if adopted independently
Integration requires comparisons
Annex I Expert Group
on the UNFCCC
Reasons for integration
Climate change as a public goodCompetitivenessFairnessStatic cost-effectivenessDynamic cost-effectivenessTechnology transfer
Annex I Expert Group
on the UNFCCC
Comparing domestic approaches
Comparing domestic effortsCosts: complex metricsBroad direct comparisons of efforts: NATO’s case, possible problems for climate policy
Comparing domestic resultsUncertain outcomes of broad technology approaches
Timing issues in comparing emission pathsStandards easily comparable to output-based sectoral targets – they could be linked
Annex I Expert Group
on the UNFCCC
Approaches in helping others
Comparing efforts Expenses may be the metrics Difficulties can be overcome, for being
similar to those experienced in the CDM Contributions to international financial
institutions the most easily comparable Finance flows from mechanisms: do they
belong to ‘helping others’ ?
Comparing results Multiple interactions may make it
insoluble
Annex I Expert Group
on the UNFCCC
Comparing e.g. a technology approach with a cap-and-trade approach difficult
Except for comparing narrowly defined efforts (e.g., standards), no reliable metric to determine whether countries are making similar commitments – an essential element of fairness
Political decisions may still request thisComparing efforts to help others easier
than comparing results in helping others
Conclusions
