1、Sectoral approaches toclimate action:Complementary opportunities or dead end?Business and Industry Global Dialogue 200823 October 2008Richard Baron IEADisclaimer The views expressed here are the authorsand may not reflect the views of the individual IEA Member countries. OECD/IEA - 2007OutlineSector

2、al approaches: do we havea choice? An illustration.A look at countries recent submissions to the UNFCCCQuestions for debate OECD/IEA - 2007Complementary or dead end? Sectoral approaches are likely to be an essential element of future international mitigation efforts Hence, handle with care OECD/IEA

3、- 2007Sectoral approaches: do we have a choice? OECD/IEA - 2007Illustration - CO2emissions in China25002000150010005000 OECD/IEA - 2007Million tons of CO2Power and heat (including autoproduction) Other energy industriesManufacturing industries and construction TransportOther sectorsIllustration - CO

4、2emissions in India7006005004003002001000 OECD/IEA - 2007Million tons of CO2Power and heat (including autoproduction) Other energy industriesManufacturing industries and construction TransportOther sectorsElectricity (supply and use) should be a priority for action*Source: IEA(2008), Energy Technolo

5、gy Perspectives 2050. OECD/IEA - 2007Why are we, internationally, looking at sectors? Since Kyoto: from simple country caps (-and-trade) to the actual complexity of specific mitigation policiesn Whether market-based or else, useful lessons can be drawn from Annex I progress on various policy areasn

6、See G8 best practice work and concrete recommendations on energy efficiency Most developing countries not ready for country-wide goals political and capability issues (CBDR/RC)n In the meantime, GHG accumulate Some will need sector-specific supportn Best policy practice and policy designn Training (

7、see Asia-Pacific Partnership on efficiency of existing plants)n Targeted financial supportn Carbon market OECD/IEA - 2007SA under the UNFCCC at present OECD/IEA - 2007Views on SA from submissions China: no to benchmarks, standards, etc. but calls for larger finance incl. via carbon markets. Review o

8、f EST on basis of cost, reliability, obstacles India: no common standards, cooperative R&D, IPR cost, standards on certain products and practices, voluntary energy efficiency programmes (pledge) S. Africa: Register of actions. Toolbox of support instruments, SD-PAMs No-lose S. Korea: Registry for NA

9、MA (nationally appropriate mitigation actions): crediting to provide finance OECD/IEA - 2007UNFCCC submissions (ctd.) EU: two categories. Sectoral technology and policy cooperation / sectoral approaches w. carbon market (incl. differentiated instruments) Japan: comparability of efforts / binding sec

10、toral intensity targets for developing countries / crediting as support to NAMA / no trade sanctions / supplementarity Norway: explore crediting /SA further to transfer resources to move towards low-carbon economy Russia: risk of speculation through carbon market OECD/IEA - 2007SA toolkit on UNFCCC

11、table at this stage Prioritize global action & discuss comparability of efforts Broaden crediting from CDM (project) to sectoral CDMn Move away from offsets towards actual, global mitigation (no- lose targets) Sectoral targets under emissions trading (article 17 under the Kyoto Protocol) SA to organ

12、ize technology diffusion/transfer etc. (as per Bali Action Plan, 1.b.iv) Absent: international negotiation over a sector (a.k.a. transnational agreement) Outside: IAI, worldsteel, CSI, APP OECD/IEA - 2007Questions for debate OECD/IEA - 2007Role(s) of the carbon market Options abound on how to harnes

13、s the carbon market:n Sector-wide CDM, sectoral crediting, no-lose, sectoral caps, intensity-based or not Offsetting vs. crediting: how to evolve away from CDM? How do the options bring incentives to countries / domestic agents?n CDM project developers/installations have a clear incentive (CDM proje

14、ct cycle notwithstanding)n Sectoral targets, intensity, non-binding installations are steps away from carbon market does this matter? OECD/IEA - 2007Role(s) of the carbon market Uncertainty on supply (CDM + sectoral + ) and demand (developed country commitments) and backn Merely a political issue (s

15、how me the level of your ambition, Ill show you mine) or also about details of instruments, incl. SA? Incentives should matter. Limited (or lack of) data / eligibility / likely timing of entry of various sectors/countries in the market? OECD/IEA - 2007Other possible considerations on SA in UNFCCC ne

16、gotiations Differentiation of countries or actions What implications for a sectoral approach to mitigation?n Differentiate by type? SD-PAMs Sectoral targetsn Differentiate by level of international support to NAMA Support mitigation in developing countries / sectors via carbon market or other means?

17、n Economically attractive for donorsn Verification = Intrusivenessn Countries to pledge actions: will they go beyond these pledges with SA? Competitiveness/leakage issues: elephant in the room or can be handled with ad-hoc measures? OECD/IEA - 2007Going forward: Integration in an agreement by Copenh

18、agen? Numbers on sectors / countries by COP15?n Unlikely for most esp. w/o agreement on precise format of SA, or differentiation of actions Areas for decisions by COP15?n Principles for SA?u Role of carbon market, other support, eligibility sectors/countries?n A registry structure (format) to record pledges?n Pilot phase data gathering n Deadline for submissions of SA pledge