top of page
Color logo - no background.png

Policy Pulse

Thanks for subscribing

Join our readership of thought leaders and policy makers by subscribing to Policy Pulse, an update on trending policy issues in climate change, international conflict economics and infrastructure. 

Policy Pulse - George Anjaparidze - 2 April 2020

On 1 April 2020, the UN climate change agency announced its plans to postpone indefinitely the 26th Conference of the Parties (COP). In most years, such an announcement would be surprising or it might even be dismissed as an April fool’s joke of a computer hacker. But this year, given the raging COVID-19 pandemic, a decision to postpone the event was expected.

The Conference of the Parties (COP) is an annual meeting of signatories to the United Nations Framework Convention on Climate Change (UNFCCC), which has near universal membership (197 countries and territories are members). It is under the framework of this convention that governments negotiate climate deals like the Kyoto Protocol and Paris Agreement.

Put simply, the COP is the annual conference that brings together governments to negotiate and take decisions on how to address the climate challenge. However, the COP is much more than an intergovernmental negotiation. It is the premier global climate change event that gathers a wide range of stakeholders, including companies, international organizations, journalists, non-governmental organizations, activists and other concerned civil society stakeholders. Participants come from all corners of the world and can number in the range of 10 to 30 thousand.

There was also a postponement of the mid-year negotiations, usually held in June, now to be held 4-12 October of 2020.

The UN climate negotiations are extremely complex. Negotiations occur in different governing and subsidiary bodies across dozens of agenda items. At certain points in time, you can have as many as 5 bodies launched with over 50 items under negotiation. Each negotiator will attest that their item is the priority issue for the conference. To make matters even more complicated, there are interlinkages between items and a negotiations culture that prides itself on the moto “Nothing is agreed, until everything is agreed.”

That said, it is time to prioritize. For two consecutive years, UNFCCC negotiators have failed to agree on the rules for international cooperation on climate action (also known as Article 6 negotiations). These rules are a prerequisite for properly functioning international carbon trading. Not having these rules in places increases the cost of climate mitigation actions and hinders financial flows to developing countries. It also makes it likely that other actors, outside the UNFCCC, may try to define carbon trading standards, as was recently done by the International Civil Aviation Organization.

Patricia Espinosa, the UNFCCC Executive Secretary, is a masterful diplomat, with an almost magician like touch at finding political consensus. She was one of the key leaders that helped piece together the climate negotiations a decade ago and delivered the Cancun outcome, which paved the way for the Paris Agreement. However, to improve the chances of unlocking the stalemate on Article 6 negotiations, political astuteness may need to be combined with technical analysis of options under negotiation.

The postponement of COP 26 is a blessing in disguise. It allows time for technical analysis and further consultation on the options being discussed for rules on international cooperation on climate action. An interactive approach between technical analysis and consultation could be used to help unlock the stalemate. The leadership should consider using this pause in the UNFCCC calendar to focus more efforts on advancing the Article 6 negotiations.


____________________


About Veritas Global: Our vision is to have a positive impact on the world through truthful advice informed by robust analysis. We are a premier provider of tailored solutions on climate change, international conflict economics and infrastructure


 
 
 

Policy Pulse - 1 August 2019 - George Anjaparidze

Only 7 weeks remain until the UN Climate Action Summit. The Summit aims to address the urgent need to boost ambition and accelerate action to implement the Paris Agreement on climate change (See our post Paris Agreement: the inconvenient gap between ambition and reality). In addition to scaling-up finance and action, the Summit needs to improve the political acceptance of using international collaboration for achieving emission reductions.


The World Bank estimates that international collaboration (the use of offsetting, emission trading and other market-based measures) will lower 2030 mitigation costs by 32%. By 2050, international collaboration will lower mitigation costs by 54% (See chart). Widely used global standards, such as the Gold Standard, offer certification mechanisms that ensure projects that reduce carbon emissions offer the highest levels of environmental integrity and also contribute to sustainable development.


The 2019 World Bank report on State and Trends of Carbon Pricing, highlights the continued uptick in carbon pricing initiatives. In 2020, about 20% of global greenhouse gas will have a price signal for emitting. The price signal will range from below $1 and up to $127 per tonne of CO2 equivalent (tCO2e). These measures have delivered favorable mitigation outcomes and the progress achieved should be welcomed. However, through the use of international carbon trading, there is scope to achieve more emission reductions within the existing resource envelope. Charging companies and consumers $127 in Sweden or $96 in Switzerland per tCO2e is much more costly compared to supporting mitigation actions in developing countries.


Much higher global environmental benefits could be delivered within the current resource envelope if abatement potential in developing countries is more actively incentivized and supported. For example, through crediting of carbon emission reductions, international emission trading and using revenues raised through carbon taxes to support further actions in developing countries. The biggest opportunity is in developing Asia. McKinsey estimates that about half of all global cost-effective abatement by 2030 is in this region, put differently, 70% of all cost-effective abatement opportunities in developing countries are in developing Asia. This is also broadly consistent with the experience under the Clean Development Mechanism of the Kyoto Protocol, where about 85% of the emission reductions were generated from projects located in Asia.


GHGs are global pollutants. Their concentration in the atmosphere contributes to climate change. Where they are emitted has no bearing on where the impacts of global warming are felt. This means that from a climate change perspective it does not matter in which jurisdiction GHG emissions are reduced. This is very different from most other forms of pollution where impacts are more localized.


One key metric for defining success will be if the UN Climate Action Summit achieves greater political acceptance of using mechanisms such as carbon crediting, offsetting and other forms of international collaboration.


About Veritas Global: Our vision is to have a positive impact on the world through truthful advice informed by robust analysis. We are a premier provider of tailored solutions on climate change, international conflict economicsand infrastructure


 
 
 
bottom of page