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Abstract: To date, developed countries can only tap mitigation opportunities in developing countries by investing in projects under the Clean Development Mechanism (CDM). Yet CDM investments have so far failed to reach all of the high-potential sectors identified in IPCC reports. This raises doubts about whether the CDM will be able to generate an adequate supply of credits from the limited areas where it has proved successful. Our paper examines the current trajectory of potential mitigation entering the CDM pipeline and projects it forward under the assumption that the diffusion of the CDM will follow a path similar to other kinds of innovations. Projections are then compared to pre-CDM predictions of the mechanism''s potential market size used to assess Kyoto''s cost, in order to discern whether limits on the types of project entering the pipeline will also limit the eventual supply of certified emission reductions (CERs). The main finding of the paper is that the mechanism is on track to deliver an average annual flow of roughly 700 million CERs by the close of 2012 and nearly to 1100 million tons by 2020. Parameter tests suggest that currently identified CDM investments will exceed early model predictions of the potential market for CDM projects. [Copyright &y& Elsevier]

Abstract: This paper argues that the problem with the targets and timetable approach to climate policy is that it ignores uncertainty about costs. An alternative approach on coordinating short run prices within a long run emissions targeting framework is outlined. A global economic model is used to demonstrate the nature of the economic uncertainty about climate policy and the gains to be achieved by equalizing carbon prices across countries. The paper also shows that although price and quantity-based systems appear to be similar they can fundamentally change the international transmission of economic shocks. [Copyright &y& Elsevier]

In theory, the interaction between the worlds of environmental science and policy may seem straightforward. From a realm outside politics and power, scientists provide relevant knowledge about nature upon which informed policy decisions could be based. However, in reality this linear model tends to be replaced by a much more complex relationship where the distinction between facts and values, knowledge and interests is less clear cut. In this paper, I explore links between science, policy and power through an interview study conducted with Swedish carbon cycle scientists and government negotiators to the UN Framework Convention on Climate Change. Drawing on a co-production model of science–policy interplay this paper addresses the implications of a mutually constitutive relationship between carbon cycle science and climate policy. [Copyright &y& Elsevier]

Abstract: Climate change response, including the implementation of the Kyoto targets as the first step, calls for technological innovation of future sustainable energy systems. Based on the Danish case, this paper evaluates the type of technological change necessary. During a period of 30 years, Denmark managed to stabilize primary energy supply, and CO2 emissions decreased by 10%, during a period of 20 years. However, after the introduction of the Kyoto Mechanisms, Denmark has changed its strategy. Instead of continuing the domestic CO2 emission controls, Denmark plans to buy CO2 reductions in other countries. Consequently, the innovative technological development has changed. This paper evaluates the character of such change and makes preliminary recommendations for policies to encourage the use of the Kyoto Mechanisms as an acceleration of the necessary technological innovation. [Copyright &y& Elsevier]

International negotiations under the UN Framework Convention on Climate Change could take several different approaches to advance future mitigation commitments. Options range from trying to reach consensus on specific long-term atmospheric concentration targets (e.g. 550 ppmv) to simply ignoring this contentious issue and focusing instead on what can be done in the nearer term. This paper argues for a strategy that lies between these two extremes. Internationally agreed threshold levels for certain categories of impacts or of risks posed by climate change could be translated into acceptable levels of atmospheric concentrations. This could help to establish a range of upper limits for global emissions in the medium term that could set the ambition level for negotiations on expanded GHG mitigation commitments. The paper thus considers how physical and socio-economic indicators of climate change impacts might be used to guide the setting of such targets. In an effort to explore the feasibility and implications of low levels of stabilisation, it also quantifies an intermediate global emission target for 2020 that keeps open the option to stabilise at 450 ppmv CO2 If new efforts to reduce emissions are not forthcoming (e.g. the Kyoto Protocol or similar mitigation efforts fail), there is a significant chance that the option of 450 ppmv CO2 is out of reach as of 2020. Regardless of the preferred approach to shaping new international commitments on climate change, progress will require improved information on the avoided impacts climate change at different levels of mitigation and careful assessment of mitigation costs. [Copyright &y& Elsevier]

The background of the principle of historical Responsibilities (PHR) is that the allocation mechanism of carbon emission space contained in the Kyoto Protocol results in static, dynamic and other unfairness to developing countries. However, with the rapid increase of China’s carbon emissions in recent years, may China keep the relative advantages on historical accumulation emissions and per capita emission in the future? This paper adopts RICE-2010 to predict the future carbon emissions for major economies. We find that China may still keep a small advantage on per capita emissions, but will become the largest responsible country after the middle of this century and continue to rank first. This means that the PHR will lead China to the embarrassment of self-contradiction sooner or later. The PHR shall complete its “historical responsibility” of correcting the defects of the Kyoto Protocol. China shall shift from the PHR to a somewhat more constructive strategy. [ABSTRACT FROM AUTHOR]

Abstract: Nowadays, one of the urgent issues regarding global climate change is to discuss the future of the second period of the Kyoto Protocol. However, the divergence of views and opinions among parties in the last Conference of the Parties of the United Nations Framework Convention on Climate Change, held in Durban in December 2011, is still large. One of the bones of contention is whether the emerging developing countries, like China, should make commitments and legally bind themselves to a Green House Gas (GHG) reduction target in near future. As the largest GHG emitting country, China and its energy and climate policies will play an important role in global climate change and will also significantly influence the other countries’ policies and the global climate negotiation. In this paper, we review the current differences among parties in the Durban Conference, and we analyze the recent situation, barriers, and future policies in China. Finally we highlight the impact and potential effect of Clean Development Mechanisms in avoiding China''s barriers regarding climate change. Results show that China is making a great effort to mitigate climate change by establishing and reforming its energy and climate policies in order to achieve a low-carbon development. At the same time, more innovation and international collaboration is needed in China to achieve this goal. [Copyright &y& Elsevier]

Abstract: The world driven by the concern for climate change and by growing prices for fossil fuels is trying to make a more drastic shift towards renewable energy sources (RES). The Kyoto Protocol mechanisms are considered to assist this process in both developed and developing countries. The scope of this paper is to analyze the so far gained experience by the implementation of the clean development mechanism (CDM), in order to investigate its role in the formation of wind energy markets in developing countries. For this purpose we make a brief overview of existing incentives for the RES support within hosting countries. Then, we exploit the available CDM databases in order to identify the influence of CDM activities on the development of the corresponding wind energy markets. [Copyright &y& Elsevier]

Abstract: The European Union Emissions Trading Scheme (EU ETS) is supposed to be an important mechanism for addressing climate change. Up to now, the theoretical foundation of EU ETS has been widely acknowledged, but empirical research on its current situation has only been published recently or is forthcoming. Therefore, this paper is aimed to summarize the main arguments of empirical studies on the EU ETS, in terms of two aspects, i.e., the operating mechanism and economic effect of the EU ETS, which are two crucial topics and have been attached much attention. Based on the shortcomings of current research and future requirements of the EU ETS evolution, finally, we also present some further directions of the EU ETS research. Overall, the research overview here may be helpful to recognize the features of the EU ETS and its effect on others. [Copyright &y& Elsevier]

Abstract: The long-term increase in Earth''s temperature is known as the global warming or the greenhouse effect. Taking into account the fact that the ice age only involved a global temperature variation of around 4°C, it is clear climate change is arguably one of the greatest environmental threats the world is facing today. The impacts of disruptive change leading to catastrophic events such as storms, droughts, sea level rise and floods are already being felt across the world. In this context, the signing of the Kyoto Protocol in 1997 has been argued to be a historic step in reversing the inexorable increase in the emission of the greenhouse gases. The primary achievement of the Protocol has been so-called commitment of countries referred in the Annex I of the Protocol to reduce their emission of GHGs some 5% below their country specific 1990 level. On February 5, 2009, Turkish Parliament ratified an agreement to sign the Kyoto Protocol after intense pressure from both the European Union and international environmental organizations; however, so far it has not taken any step to bring about real reductions in emissions. In short, Turkey simply signed but ignored the Protocol. Present paper investigates Turkish position vis-à-vis Kyoto Protocol and critically questions Turkish policies in that area. [Copyright &y& Elsevier]

Abstract: The objective of this paper is to assess the economic impacts of reducing greenhouse gas emissions by decreasing industrial output in Canada to a level that will meet the target set out in the Kyoto Protocol. The study uses an ecological–economic Input–Output model combining economic components valued in monetary terms with ecologic components – GHG emissions – expressed in physical terms. Economic and greenhouse gas emissions data for Canada are computed in the same sectoral disaggregation. Three policy scenarios are considered: the first one uses the direct emission coefficients to allocate the reduction in industrial output, while the other two use the direct plus indirect emission coefficients. In the first two scenarios, the reduction in industrial sector output is allocated uniformly across sectors while it is allocated to the 12 largest emitting industries in the last one. The estimated impacts indicate that the results vary with the different allocation methods. The third policy scenario, allocation to the 12 largest emitting sectors, is the most cost effective of the three as the impacts of the Kyoto Protocol reduces Gross Domestic Product by 3.1% compared to 24% and 8.1% in the first two scenarios. Computed economic costs should be considered as upper-bounds because the model assumes immediate adjustment to the Kyoto Protocol and because flexibility mechanisms are not incorporated. The resulting upper-bound impact of the third scenario may seem to contradict those who claim that the Kyoto Protocol would place an unbearable burden on the Canadian economy. [Copyright &y& Elsevier]

Abstract: The U.S. and China are the world''s largest and second largest CO2 emitters, respectively, and to what extent the U.S. and China get involved in combating global climate change is extremely important both for lowering compliance costs of climate mitigation and adaptation and for moving international climate negotiations forward. While it is unavoidable that China will take on commitments at some specific point of time in the future, this paper has argued that the proposal for joint accession by the U.S. and China is not a way forward. For various reasons, such a proposal is in the U.S. interest, but is not in the interest of China. Given the U.S. political reality and institutional settings on the one hand and China''s over-riding concern about economic growth and poverty reduction on the other, the two countries are unlikely to take on emissions caps under an international regime, at least for the time being. Therefore, we need to explore the area where cooperation between the two countries to address climate change seems best. The research, development and deployment of clean technology is the area that is in the best interests of the two countries. The U.S. has adopted a technology-oriented approach to climate issues, and has launched the four multilateral initiatives on technology cooperation and the Asia Pacific Partnership for Clean Development and Climate (APP). China has participated in all these U.S.-led initiatives, and is a partner to the APP. Strengthened technology cooperation between the two countries through these initiatives and the APP has led some tangible benefits. However, it should be pointed out that while technology is a critical ingredient in a climate policy package, efforts such as the APP can only be part of the solution. They alone cannot ensure that best available technologies are always deployed in the marketplace, and that new technologies will roll out at the pace and on the scale that we need. In order to have such technology-oriented approach to play a full role, we do need a coordinated policy framework agreed via the Kyoto Protocol or a follow-up regime or the parent United Nations Framework Convention. [Copyright &y& Elsevier]

Abstract: This paper provides an overview of the rules for accounting emissions of land use, land use change and forestry (LULUCF) for the first commitment period of the Kyoto Protocol. It first describes the rules in detail, it then provides an overview of the history of negotiations that led to these rules and provides resulting conclusions for future international climate negotiations. We conclude that the current rules can be better understood in the light of the negotiation history. For the future, we conclude that first an agreement on the objectives of including LULUCF in the future climate regime should be developed, e.g. to contribute significantly to the ultimate objective of the convention. Further, a solid set of data should be developed that can assess the magnitude of possible options. The rules should be scientifically sound, complete and balanced as well as unambiguous before the quantitative targets are defined. They should further be simple and inclusive to include all carbon pools, i.e. provide incentives to avoid deforestation and unsustainable logging in all countries. [Copyright &y& Elsevier]

Abstract: The current framework through which greenhouse gas emissions and removals in the land use sector are accounted under the Kyoto Protocol has several problems. They include a complex structure, onerous monitoring and reporting requirements, and potential for omission of some important fluxes. One solution that may overcome some of these problems is to include all lands and associated processes within a country''s jurisdiction, rather than restrict accounting to specific nominated land categories or activities. Ideally, the accounting approach should cover all significant biospheric sources and sinks, avoid biased or unbalanced accounting, avoid leakage and require no arbitrary adjustments to remedy unintended consequences. Furthermore, accounting should focus on the direct human-induced component of biospheric emissions/removals so that debits/credits can be allocated equitably and provide appropriate incentives to adopt land-use management options with beneficial outcomes for the atmosphere. This paper focuses on biospheric emissions and removals resulting from carbon stock changes. It considers four alternative accounting options that include all land areas: Gross-Net Accounting, Net-Net Accounting, Net Accounting with Negotiated Baselines and the Average Carbon Stocks approach. Each option is described, and assessed with respect to defined criteria for effectiveness. Gross-Net Accounting and Net-Net Accounting do not adequately distinguish the anthropogenic component of carbon-stock changes from indirect and natural effects, so large undeserved credits or debits could be created. Under Net Accounting with Negotiated Baselines, countries’ projected emissions and removals during the commitment period would be taken into account in the negotiation of emissions targets. In the commitment period, countries would then gain credits/debits for biospheric removals/emissions. Difficulties with this approach would lie in reaching agreed baselines for emissions and removals for individual countries, and, if desired, in factoring out residual effects of natural variability on emissions/removals. Under the Average Carbon Stocks approach, debits/credits for changes in land use or management practices would be based on the changes in long-term average carbon stocks associated with changes in specific land use and management regimes. This approach thereby directly identifies the anthropogenic component, and assigns debits and credits accordingly. It may prove problematic, however, for countries to accept long-term averages rather than observable realised carbon-stock changes as the basis for accounting. Thus, none of the options is without its drawbacks, but Net Accounting with Negotiated Baselines and the Average Carbon Stocks approach could potentially be used as the basis of developing a future ‘all lands’ accounting framework. [Copyright &y& Elsevier]

This paper analyzes the impact of national development policy on land cover change and associated carbon fluxes at a Peruvian Amazon frontier. Remote sensing and field transects reveal changes in forest carbon stocks and accumulation rates. Deforestation was most rapid along the Interoceanic Highway during 1986–91 when credit and guaranteed markets were available, resulting in emissions of 708,000 Mg C yr−1, of which 14% was offset by secondary regrowth. Despite continued population growth, deforestation slowed during 1991–97 when fiscal austerity measures were imposed, resulting in emissions of 389,000 Mg C yr−1, of which 41% was offset by regrowth. Strategies to conserve frontier forests are compared in terms of carbon, biodiversity and economic costs and benefits. [Copyright &y& Elsevier]

This paper presents an alternative framework to the approach currently embodied in the Kyoto Protocol for managing global climate change post-2012. The framework has two key provisions. The first is that each person in the world would be ‘allowed’ an equal amount of greenhouse gas (GHG) emissions. This is labeled the equity-first provision. The second provision focuses on incorporating risk concepts into the setting of GHG emission reductions. It is proposed that the global climate be managed as to avoid three categories of risks: (I) Substantial regional economic, political, and/or biological impacts; (II) Severe global economic, political, and/or biological impacts; and (III) Extinction of humans. Acceptable risk thresholds are suggested to be one-in-a-million, one-in-one-hundred-million, and one-in-ten-billion, respectively. This equity-first, risk-based framework overcomes many criticisms of the current Kyoto Protocol: it explicitly involves all countries on earth; it avoids several administrative issues that are anticipated to plague a global carbon emissions trading market; and it avoids several contentious issues associated with pegging carbon emission reductions to 1990 levels. Because the framework is risk-based and emissions are tied to population and not historic emission levels, the basic framework would not have to be frequently renegotiated, as will be needed for the Kyoto-style approach to take the world past that agreement''s 2012 endpoint. [Copyright &y& Elsevier]

This is an overview of Session 2c dealing with the regulatory, policy and economic issues related to carbon dioxide and its impact on global climate change. The information is taken from the two papers presented in this session (the U.S. Perspective by Dennis Leaf and the European Perspective by Hans J.H. Verolme) and from the panel discussion that took place at the end of the session. The overview focuses primarily on the policy responses of both the United States (US) and the United Kingdom (UK) to changes in global atmospheric pollution. To a lesser extent, the progress of policy responses to these changes is discussed. The United Nations Framework Convention on Climate Change (UNFCCC) has been signed and ratified by over 180 countries. The UNFCCC contained no binding targets or timetables for emissions reductions. The Kyoto Protocol [United Nations. Kyoto Protocol to the United Nations Framework Convention on Climate Change. UNEP.IUC/99/10. Chatlelaine, Switzerland: United Nations Environment Programme''s Information Unit for Conventions, for the Climate Change Secretariat, 1997] to the UNFCCC did contain targets and timetables for reductions of greenhouse gases on the part of developed countries. The US has signed but not ratified the Kyoto Protocol. The US has experienced some movement to reduce greenhouse gas emissions on the part of various levels of government, as well as the private sector. The UK''s commitment to reducing green house gases is laid down in the UK Climate Change Programme 2000. The UK is a member of the European Union (EU). In this context, an example of EU-wide progress, the voluntary agreement with car manufacturers to reduce CO2 emissions in new vehicles, will be discussed. In addition, there will be some discussion on the UK CO2 trading scheme that created the first market in the world in April 2001. Overall, the policy process is constantly informed by scientific research. In the case of climate change, much of this work is carried out under the auspices of international scientific panels. [Copyright &y& Elsevier]

The primary motivation for this paper is to illuminate the role of leadership exerted by individuals, institutions and nation-states at various stages of the global climate change regime. Four forms of leadership: intellectual, instrumental, power-based, and directional, are identified. Next, theoretical claims about the dominance of particular forms of leadership at particular stages of regime formation are empirically tested by examining the agenda setting and negotiation phases of the climate regime. This analysis tends to support theoretical claims that intellectual leadership is particularly prominent during agenda setting, but evidence to support the influence of entrepreneurial leaders during negotiations is mixed at best for the climate regime. Structural or power based leadership meanwhile was largely absent during agenda setting of the climate regime but has been in clear evidence through the negotiations of the Climate Convention and the Kyoto Protocol. [Copyright &y& Elsevier]