Economic Analysis of EUwide Emissions Trading of CO2

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The EU and the international negotiations on
climate changeMay 2008Dr. Nicola Notaro,
Policy Coordinator, European Commission, DG
Environment, Unit C1 Climate Strategy,
International Negotiation Monitoring of EU
Action
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EC Treaty Article 174.1 Objectives

• Preserving, protecting, improving the environment
• Protecting human health
• Prudent and rational utilisation of natural
  resources
• Promoting measures at international level to deal
  with regional/global problems

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EC Treaty Article 174.2 Principles

• High level of protection
• Precaution
• Prevention
• Rectification at source
• Polluter-pays
• Integration in Article 6!

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EU leadership on world stage

• Cradle of industrialisation, source of both
  problems and solutions
• Strong belief in multilateral process
• EU model attracts wide range of countries
• Community competence based on the Treaty. Both
  the EC and the MS become Parties to international
  treaties (shared competence)

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International context

• EC is Party to more than 40 international
  conventions such as
• UNFCCC (climate change including Kyoto Protocol)
• Convention on Biological Diversity (including
  Cartagena Protocol on GMOs)
• Aarhus Convention on access to information
• Stockholm Convention on POPs (chemicals)

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International Climate Change Policy

• The UNFCCC
• national programmes and reports,
• industrialised countries to stabilise GHGs
  emissions at 1990 levels by 2000, non binding
  goal
• The Kyoto Protocol
• overall aggregate target 5,2 by 2008-2012,
• binding targets for industrialised countries,
• EU 15 bubble at 8 the other MS

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Post 2012 -EU Building Blocks (Spring Council
2007)

• . A shared vision 2C, 50 global emissions
  reductions by 2050 compared to 1990 20 by 2020
  or 30 if not alone
• . Developed countries to commit to further
  significant cuts
• . Developing countries to enhance their
  contributions
• . Strenghtening the global carbon market
• . Adaptation Framework
• . Technologies deployement, development, transfer
• . Deforestation
• . Emissions from maritime and aviation
  international transport
• . Mobilising finance and investments for climate
  change

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Bali Action Plan

• Start of negotiations on a global and
  comprehensive agreement for post 2012
• two track approach with two separate Ad-hoc
  Working Groups to end by 2009
• A shared vision?
• Explicit only in Kyoto track (Annex I Parties
  indicative collective emission reduction range of
  25 40 by 2020 )
• Convention track does not explicitly identify a
  level of ambition (resistance of US, Japan and
  Russia)

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Bali is a breakthrough
first time,

• that US engage in negotiations and subscribes to
  a decision with an explicit reference to emission
  reduction commitments
• that explicit reference is made to the need for
  developing countries to take action

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The mandate I

• Reference to shared vision
• Mitigation
• Further commitments or actions by developed
  countries
• Mitigation actions/contributions by developing
  countries
• Action to address deforestation and forest
  degradation in developing countries,
• Sectoral approaches and sector specific actions,
• Use of markets, as part of a range of approaches
  for cost effective mitigation

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The mandate II

• Adaptation
• Actions at national and international level,
• Risk reduction, risk management strategies
• Economic diversification
• Technology
• Deployment, diffusion and transfer, RD
  cooperation, transfer of environmentally sound
  technologies to developing countries
• Finance
• Adequate and predictable financing for developing
  countries,
• Positive incentives for mitigation and
  adaptation,
• Funding for adaptation in vulnerable countries
  and
• Capacity building and mobilisation of public and
  private finance.

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What is next? (I)

• Bali is just the start!
• Intensification of the negotiating process in the
  next 2 years with stock taking in Poznan first
• 4 meetings/negotiating sessions per year at
  least.
• Bangkok, last April, agreement on a work
  programme

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What is next? (II)

• Bonn in June focus on adaptation, technology
  transfer and financing)
• Use of outside processes to support the
  negotiations G8, MEM, UN summits...
• Intensification of contacts/dialogue with key
  third country partners.

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More info on

• http//ec.europa.eu/environment/climat/home_en.htm
  
• Thank you !