1. Climate Change: What is Happening and What we can do … International Environmental Policy Hari Srinivas Room: I-312 / 079-565-7406

2. BACKGROUND Introduction to Climate Change > Human activities are releasing greenhouse gases (GHG) into the atmosphere. > Climate change is a global issue: 1 tCO 2 emitted in India = 1 tCO 2 emitted in USA. > Rising levels of greenhouse gases are already changing the climate. > Climate models predict the global temperature will rise by about 1,4 to 5,8 degrees by 2100. > Climate change is likely to have a significant impact on the global environment, economy and society. A few basic facts

3. BACKGROUND Temperature trends (1976 to 2000)

4. BACKGROUND Precipitation trends (1900 to 2000)

5. BACKGROUND Climate change tends by 2100 Source : IPCC/SRESA2 5 degrees = What separates us from the last glacial era (-15 000 BC) Models’ forecasts : +1,4 to +5,8 degrees by 2100. TEMPERATURE PRECIPITATIONS

6. CLIMATE CHANGE Visual impact of Climate Change

7. CLIMATE CHANGE Impact of Climate Change on society Climate change will cause heavier tropical cyclones. …Katrina, Rita, Stan, Wilma…

8. CLIMATE CHANGE Cost of extreme weather events

9. CLIMATE CHANGE CO 2 emissions from industrial process

10. CLIMATE CHANGE CO 2 emissions from land use change

11. CLIMATE CHANGE Less visual but with major impact > Temperature increase > Sea level rise > More rain Agriculture and food security Crop yields, irrigation demands... Forest Composition, health and productivity... Water resources Water supply, water quality... Coastal areas Erosion, inundation, cost of prevention... Species and natural areas Biodiversity, modification of ecosystems... Human health Infectious diseases, human settlements... Consequences of climate change:

12. UNFCCC Overview of UNFCCC A global legal instrument (international agreement) on the control and management of greenhouse gases (GHG). Adopted in 1992, entered into force in 1994. Status of participation: 189 Parties. Contains 2 annexes: Annex 1: countries with obligations to take measures to mitigate the effects of climate change Annex 2: countries with obligations to provide financing to developing countries for their obligations under UNFCC Affiliated instruments: Kyoto Protocol. United Nations Framework Convention on Climate Change

13. UNFCCC Overall goal and objectives What is the overall goal? “ to protect the climate system for the benefit of present and future generations of mankind. ” What are the further objectives? “ to achieve stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. ”

14. UNFCCC Means to achieve the objectives > Enhancement of energy efficiency in relevant sectors and development of new and renewable energy forms/sources. > Protection of sinks and reservoirs of GHGs. > Limitation and reduction of transport and waste management-related emissions. > Policy changes toward elimination of market imperfections and implementation of market-based instruments, and policy reform to support GHG limits and reductions. What can be done to protect the climate system?

15. UNFCCC Institutional framework

16. UNFCCC National level actors National UNFCCC focal points > Responsible for the Government’s interaction and communication with UNFCCC. > Usually a specific ministry / department. > Usually interacting with a wide range of other organizations / stakeholders at the national level.

17. UNFCCC Market-based instruments Kyoto Protocol characteristics > Commits Annex 1 countries to reduce GHG emissions by 5.2% by 2012 compared to 1990. > Actual commitment period: 2008 - 2012. > Individual goals for each country. 3 mechanisms to help countries to reach their commitments > ETS - Emissions Trading System > CDM - Clean Development Mechanism (session 5) > JI - Join Implementation (session 6) 6 greenhouse gases: CO 2, CH 4, N 2 O, PFCs, HFCs, SF 6.

18. UNFCCC Ratification of the Kyoto protocol Signed and ratified Signed, ratification pending Signed, ratification declined No position

19. KYOTO PROTOCOL Emissions’ evolution in Annex1 (2003) Decreased emissions in 2003 (1990 baseline) Increased emissions in 2003 (1990 baseline)

20. KYOTO PROTOCOL Sectors concerned Energy supply (24 to 48% of total GHG) > Fuel combustion (energy production, manufacturing, transport, etc.) > Fugitive emissions (oil and natural gas, solid fuels, etc.) Industrial processes (5 to 36% of total GHG) > Production (metal production, mineral products, chemical industry etc.) > Consumption (halocarbons and sulphur hexafluoride, solvents etc.) Waste management (primarily CH4) > Solid waste disposal on land, incineration, wastewater handling etc. Land use (0,3 to 9% of total GHG) > Agriculture (enteric fermentation, manure management, rice cultivation, agricultural soils, prescribed burning of savannas, field burning of agricultural residues, etc.) > Forestry.

21. KYOTO PROTOCOL “Flexible mechanisms” ETS - Emissions Trading System > Can be used as supplementary to actions to meet reduction commitments. > One AAU (Assigned Amount Units) represents the tradable right to emit one tonne CO2eq. CDM - Clean Development Mechanism > Allows public or private entities to invest in greenhouse gas (GHG) mitigating activities in developing countries. > CERs (Certified Emission Reductions) can be used by the project investor to meet its own commitments, or sold on the open market. JI - Joint Implementation > Emission reduction projects implemented jointly between Annex I countries (developed countries and transition economies). > ERUs (Emission Reduction Units) can be used by the project investor to meet its own commitments, or sold on the open market.

22. KYOTO PROTOCOL CO 2 market mechanisms Limitations of CO2 emissions in developed countries (Annex I) 4 options for companies 1. Pay expensive fines. 2. Carry out carbon reduction through processes improvement. 3. Buy emissions credits on the CO 2 market (ETS). 4. Carry out carbon reduction through technology transfers in CDM or JI project.

23. KYOTO PROTOCOL Key Opportunities for industries In Developing Countries (part of Annex 2): No national GHG reduction commitments but opportunity to host CDM projects, thereby benefiting from associated investments, technology transfer and transfer of know-how. In Economies in Transition (part of Annex 1): JI present an opportunity for these countries with “emission reductions to spare” to attract investments and technology transfer. What are the main opportunities for industrie? > Technology transfer to improve process and energy efficiency > Co-finance investments by selling emission credits > Prepare for future commitments (after 2012) > Achieve sustainable development

24. KYOTO PROTOCOL Assistance at national level > National reporting of GHG emissions; > Sources of technical assistance; > Training and technology transfer; > Ensuring compliance: penalties for not meeting reduction targets (Annex B countries [Kyoto]): “ For every 1 ton of CO2 emissions of non-compliance during the first implementation period, 1.3 must be reduced during the following implementation period.” What can be done at the national level?

25. KYOTO PROTOCOL 1.Enabling activities - overcoming barriers > work with government > work with industry 2. Kyoto Protocol implementation > work with JI or CDM projects as project partner/proponent 3. Function as a verification agency (DOE) > auditing and on-going verification Assistance at national level

26. > Public sector awareness and education > Policy advice related to industries’ needs to enable JI/CDM projects, in co-ordination with National CDM authority. > Build relationship with National JI/CDM authority: - co-operation on awareness-raising, workshops; - co-operation with policy advice to government; - co-operation with pilot studies, projects. How can we work with governments ? KYOTO PROTOCOL Assistance at national level

27. > Private sector awareness and education workshops. > Continued emphasis on energy efficiency in relevant sectors including GHG measurements: - renewable energy sources - energy conversion and recovery - new energy efficient processes - technology transfer for non-energy-related GHG reductions > Develop projects with industry: - integrate greenhouse gas calculations into in-plant assessments; - transfer investment financing knowledge toward climate related project development How can we work with industry ? KYOTO PROTOCOL Assistance at national level

28. Policy advice on industry’s needs to enable JI/CDM. With national focal point (NFP), develop projects for funding Engage in technology needs assessments project with NFP. Propose JI/CDM projects. Raise awareness of JI/CDM opportunities among local key industries and partners. Assistance in formulation of National Implementation Plans (GHG inventories, needs, etc.). KYOTO PROTOCOL Synthesis