1. ENVIRONMENTAL DEFENSE Economic growth and GHG emissions: opportunities to split the trends Annie Petsonk, International Counsel Yuri Safonov, Economist, Advisor on Russia

2. ENVIRONMENTAL DEFENSE Perspectives on the TAR The Global Greenhouse Economic Challenge for the 21 st Century: How to break the link between economic growth and emissions growth? Source: IPCC TAR SPM Fig. 6-1

3. ENVIRONMENTAL DEFENSE Perspectives on the TAR …How to drive emissions down while driving growth up… Mill receives loan to launch Energy Efficiency Program Fossil fuel GHG emissions (1,000 tons CO 2 -eq.) Case-study: Arkhangelsk Pulp & Paper Mill, Russia Mill repays loan, takes new loan

4. ENVIRONMENTAL DEFENSE Perspectives on the TAR …How to drive emissions down while driving growth up… 1990: Cap & Trade Law Enacted 1995: SO2 Trading Begins

5. ENVIRONMENTAL DEFENSE Perspectives on the TAR …How to drive emissions and cost down while driving growth up 100 200 300 400 500 600 1990199219941996199820002002 $ per ton Tons of SO 2 emissions (M) 16 14 12 10 projected cost actual cost 8 emissions U.S. SO2 Emissions and Costs, 1990-2002

6. ENVIRONMENTAL DEFENSE Perspectives on the TAR How Can The Kyoto Protocol Carbon Market Help Meet the Challenge of the 21 st Century?

7. ENVIRONMENTAL DEFENSE Perspectives on the TAR Proposals to SBSTA: Promote research in the links of economic growth and GHG emissions trends;Promote research in the links of economic growth and GHG emissions trends; Elaborate national and industry case studies on how to split such links;Elaborate national and industry case studies on how to split such links; Enhance exchange of information between scientists, policy makers and practitioners on thatEnhance exchange of information between scientists, policy makers and practitioners on that