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Same-Day Analysis

Countdown to Copenhagen: UN Outlines Markers for COP-15 "Success" as Negotiators Mind the Carbon Gap

Published: 12/8/2009

Pre-summit jostling has been rounded off with 2020 carbon pledges from India and South Africa, making for a stronger commitment from the leading G-77 states than seemed possible back in September and putting the onus on the developed world to raise its game if the UN Summit is to be deemed a success according to its own revised criteria.

IHS Global Insight Perspective

 

Significance

India and South Africa were the last key players to declare as the 15th Conference of Parties (COP-15) got under way in Denmark, making for a fairly impressive, albeit non-binding, commitment from the leading G-77 states and putting the spotlight back on developed-country action, including the United States, which has this week gained greater scope for regulatory manoeuvre with the designation of emissions as a "danger to human health" by its Environmental Protection Agency.

Implications

Commitments so far are still estimated to leave a 1-5 billion tonne carbon overhang by 2020 if a 2°C temperature rise is envisaged, although small island nations are lobbying hard to reduce the threshold to 1.5°C as negotiators look at ways to scale down the carbon gap.

Outlook

The UN has scaled back its markers for COP-15 success after slow progress in pre-meeting sessions, with its sights now set on clear "rich country" targets, developing-country commitments, and a deal on climate finance that can be introduced into a legally binding treaty six months hence. Nevertheless, even at this level, much remains to be done with positions on climate finance, and the legal and institutional arrangements to frame global efforts, still woefully inadequate with two weeks of negotiations to go.

Squaring Up for Debate

As negotiators began work at the COP-15 Summit, two key hold-outs from the developing-country side came into place with 2020 carbon targets, rounding out a G-77 negotiating position that looks far more ambitious than anything envisaged even as recently as September 2009. South Africa offered a 34% cut in "business as usual" levels by 2020 (framing cuts in the same terms as Indonesia and Brazil), rising to 42% by 2025, in a strategy that will do much to change the country's energy mix, particularly for power generation where coal remains the mainstay, but with significant renewables uptake envisaged, supported by handsome feed-in tariffs (see South Africa: 15 April 2009: Dust Settles on South African Renewable Tariffs; Further Regulatory Support Now Eyed). India's offer involves a 20-25% cut in carbon intensity by 2020, the same kind of formula as China put forward in order to preserve economic growth, albeit with China pushing the bar to 40-45% on a 2005 baseline (see India: 4 December 2009: Countdown to Copenhagen: Indian Government Unveils Carbon Intensity Target for 2020).

These moves flesh out a position among the leading developing economies—or BRICS (Brazil, Russia, India, China and sometimes South Africa)—which have been singled out by the developed world as a necessary component of any 2020 climate commitment based on concerns about their gaining undue economic advantage should their emissions growth go unchecked while others act. In particular, the United States and Japan have caveated their active participation in a Copenhagen agreement on some movement by the leading developing states, making clear that, unlike the Kyoto Protocol, BRICS should be differentiated from the wider G-77 developing grouping in a reflection of their greater economic wherewithal and rapidly increasing emissions trajectories, which in some cases now exceed those in the developed world.

Changing the Agenda

The latest moves are a fairly adept way of making the first week in Copenhagen about developed-country positions, particularly the United States, which remains integral to any effective global outcome from the Summit. In support of this, the U.S. Environment Protection Agency (EPA) this week deemed carbon emissions to be a "danger to human health", thereby opening up new routes for regulatory action against emissions outside the complex legislative process under way in Congress, where the Senate is currently locked in a debate over its version of a House of Representatives bill that foresees a 17% cut in emissions by 2020 against the 20% reduction in Senate, both on a 2005 baseline.

The European Union (EU) has also re-entered the spotlight with questions over when its high-end 30% targets will be triggered, given the range of offers now on the table. Swedish Environment Minister Andreas Carlgren has said that this high-end level remains a lever to bring others to the table and not a position that will be given away lightly. The EU has so far been the most forthcoming on the thorny issue of climate finance, pushing the idea of a fast-track fund for 2010-12 with Anglo-French co-operation, as well as a long-term funding formula, albeit that this has still failed to ignite detailed discussion on this crucial issue among the other leading states.

Meanwhile, Japan has only recently outlined its high-end target of a 25% cut by 2020 if others are on board, with plenty of questions domestically about how this will be achieved and opposition to a carbon tax on fossil fuels as a part of this.

Nevertheless, shifts will have to be made among the three central groupings according to current external calculations, which estimate that measures outlined so far will still leave a 1-5 billion tonne overhang in carbon emissions by 2020 on the levels required to limited temperature rises to 2°C above pre-industrial levels of 44 billion tonnes. If the bar is lowered to a 1.5°C increase, as supported by small island states, the gap is still wider for 2020 and requires a substantial reframing of key positions, most likely untenable in this two-week phase of discussions at least.

Current* Positions on Controversial Topics

Selected UNFCCC States

2020 Offer (CO²e cuts)

Base Year

2020 Bargaining Point

Attitude to Mitigation and Adaptation Finance

Australia

5%

2000

15–25% if others also

None outlined on global. Domestic market-based trade in offsets from 2011 with unlimited imports. Pro-inclusion of forestry in CDM.

Brazil

Reduce Amazon deforestation
by 80%

BAU

36.1–38.9% if finance (Nov 2009)

Consolidated global fund, including land use; Amazon Global Fund.

Canada

20% Cut

2006

n/a

None outlined on global. Proposal to join with U.S. on emissions trading.

China

0

2005

Carbon intensity reduction—40–45%

Consolidated fund

Costa Rica

Carbon neutrality

n/a

n/a

n/a

EU

20%

1990

30% if others also

Multi-institutional. Fair share of 22–50 bil.-euro transfers by 2020 plus share in fast track of 5–7 bil. euro from 2010–12 Role for international offsets in cap and trade.

UK

pledged to 34%

1990

No

Provisional offer of 1 bil. euro of its proposed 9-bil.-euro EU contribution for 2020.

India

0

2005

Carbon intensity reduction—20–25%

Consolidated

Indonesia

26%

BAU

41% if finance

Consolidated globally including land use plus Indonesia Climate Change Trust Fund.

Japan

8% (previous govt)

1990

25% if others also

Consolidated

New Zealand

 

1990

10–20% by 2020

 

Mexico

 

 

 

Consolidated. Proposed green fund to which all countries contribute depending on GDP/population. Proposal to join with U.S. on emissions trading.

New Zealand

10%

1990

20% if others also

Domestic emissions trading scheme from July 2010, including farming from 2015. Unlimited offset imports.

Norway

30%

1990

40% if others also

Consolidated fund, including land use and maritime transport; CCS role. US$500 mil./y offer for land use from 2012. Proposal for % of emissions allowances under Copenhagen to be auctioned to generate new source of funds.

Russia

20–25% (Nov 2009)

1990

 

 

South Africa

34%

BAU

  

South Korea

4% (Nov 2009)

2005

 

2020 target is most ambitious of three proposals. No position on finance as yet.

United States

Discussing 17–20% cut
(broadly equivalent to 1990)

2005

"In the range of 17%"

Multi-institutional. Role for international offsets in cap and trade. Proposal of U.S. Agency for International Development (USAID) offering to least developed countries.

Sources: UNFCCC, national presentations, media

Outlook and Implications

Much has progressed in recent weeks after fairly unpromising progress along the Bali roadmap, which was outlined in 2007 with Copenhagen as its end-game. This gives some hope for further breakthroughs in the two weeks ahead based on the coalescence of a number of "pro-climate action" administrations and a strong sense of focus. This is unlikely to go ahead with any level of specifics given the carbon gap still identified for 2020, which is likely to dominate debate, as too will the almost pre-nascent discussion on finance (see World: 29 October 2009: Countdown to Copenhagen).

The goal for many is to sign up to a high-end skeleton political framework, which can be fleshed out more significantly in 2010. However, with a number of countries facing mid-term or significant elections next year, the timeline for current actors to put flesh on the Copenhagen bones remains tight, with the UN's six-month goal for a binding legal framework (outlined by the head of the UN Framework on Climate Change, Yvo de Boer, on the U.K. Channel Four News programme last night) very much the new "final" deadline framing the scope of efforts for the next two weeks.

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