Co-control: Actions after co-benefits Hu Tao Policy Research Center for Environment and Economy(PRCEE), SEPA Haakon Vennemo ECON analysis Oct , 2004, Oslo

Outline Demand of SEPA, China Review of co-benefits Concept of co-control Design of co-control policy

Demand of SEPA Niche of SEPA in the field of climate change As a key demander of co-benefits study Demand-driven questions after measurement of co-benefits What should do? How should do?

Review of co-benefits GHGs Pollution control Co-benefits Impact analysis Policy intervention

Review of co-benefits Evolution of co-benefit studies Stage 1 pre-co-benefit period: local pollution control policy and climate change policy are thought independent; Stage 2 co-benefit measurement period: it ’ s realized that local pollution and GHGs are linked to each other and efforts to measure co-benefits are made. Stage 3 co-benefit impact analysis period: co-benefit impacts on local pollution control policy and GHG policy are analyzed.

Review of co-benefits Evolution of co-benefit studies Stage 4: policy interventions? Co-control as one of the policy interventions

Concept of co-control Objective: to maximize net co-benefits (co- benefits minus control costs) Target: both local pollution and GHGs. Ways: to actively control both GHGs and local pollutants together

Concept of co-control There are different level co-controls co-control measures at micro technical level co-control action with varies co-control measures combination at project level co-control plans with co-control projects and programs combination at macro policy level

Design of co-control policy Design co-control policy at regional/national level Combination of different co-control technical measures as well as projects/programs to reach maximum of co-benefits at macro regional/national level

Design of co-control policy Design Maximizing net benefits Total Cost of all control measures Benefits of both air pollution and GHGs as well as other benefits Budget constrains

Design of co-control policy Total Emission Control (TEC) as an example Background of existing TEC A major current pollution control policy of China Cap for 12 local pollutants, including water, air and solid wastes Possible co-benefits Estimation of air pollution control benefits Estimation of carbon reduction Re-design of TEC add GHG as a new control goal China and the world would gain more co-benefits Combination of energy efficiency measures, low carbon technology measures etc.

Design of co-control policy Policy simulation Re-designed policy behaves Maximizing the net benefits

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