Sustainable Development Policies and Measures:

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Sustainable Development Policies and Measures
Putting development first in a
carbon-constrained world. COP11 December 5, 2005
Rob BradleyClimate and Energy ProgramWorld
Resources Institute
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Acknowledgements

• Authors
• Navroz K. Dubash, National Institute of Public
  Finance and Policy, India
• José Roberto Moreira, University of São Paulo,
  Brazil
• Stanford Mwakasonda, Energy Research Centre,
  South Africa
• Wei-Shiuen Ng, WRI

• Luiz Augusto Horta Nogueira, Itajubá Federal
  University, Brazil
• Virginia Parente, University of São Paulo, Brazil
• Jonathan Pershing, WRI
• Lee Schipper, WRI
• Harald Winkler, Energy Research Centre, South
  Africa

Funding providers Canadian International
Development Agency Government of Norway,
Government of the Netherlands
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Growing in the Greenhouse

• Why some developing countries must be engaged in
  mitigation activity if we are to avoid
  catastrophic climate change.
• Developing countries face urgent and legitimate
  development priorities that make climate change a
  low political priority.
• SD-PAMs as a means of reconciling these facts.
• Examples studied in Growing in the Greenhouse.
• Placing SD-PAMs in a climate agreement why and
  how?

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Top 25 GHG emitters, 2000
Emissions from six gases
Percent Global GHG Emissions
Source WRI, CAIT
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The development challenge
Population without access to electricity,
selected countries
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The development challenge
Motor vehicles per 1000 people, selected countries
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What is an SD-PAM?

• A commitment to implement a policy or measure
  not based on GHG emissions.
• Driven by host country development needs.
• Large-scale policies and measures, not projects.
• Development path chosen results in significantly
  lower emissions.
• Declared and registered under the international
  climate framework.

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SD-PAMs implement UNFCCC principles

• Parties have a right to, and should, promote
  sustainable development.
• policies and measures to protect the climate
  system . . . should be integrated with national
  development programmes. UNFCCC, Art. 3.4.
• The SD-PAMs approach aims to create a formal
  mechanism to recognize developing country efforts
  in this regard, and to assist them.

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Looking at real-world examples
Brazil Biofuels for transport Reducing the
economic impact of oil imports and supporting the
rural economy
China Innovative transport approaches Promoting
mobility while avoiding urban infrastructure and
oil supply constraints
South Africa Carbon capture and storage Finding
ways to reduce the impact of coal in developing
countries
India Renewable energy in rural
electrification Providing electricity faster and
safer to 500 million people
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Brazil ethanol for transport

• An SD-PAM already implemented!
• Driven by foreign exchange concerns has saved
  100 billion in external debt.
• Saves an estimated 26 Mt CO2 per year.
• Some 20 other countries could benefit from same
  approach.

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India options for rural electrification

• Indias rural electrification
• 500-600 million people without electricity.
• Three supply scenarios
• Grid First
• Diesel First
• Renewables First
• Three levels of rural electricity demand.

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India a wider potential role for renewable
energy

• Approaches are evaluated by Indias national
  criteria.
• Grid First offers little hope of meeting
  electrification goals.
• Diesel First raises significant oil import
  concerns.
• Renewables First brings benefits but at
  significant capital cost can international
  policy help?

Qualitative assessment of the scenarios
CO2 emissions under the scenarios
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India a wider potential role for renewable
energy
CO2 emissions under the scenarios
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South Africa carbon capture and storage

• Many developing countries remain dependent on
  coal.
• Carbon capture and storage offers the potential
  to use coal and cut emissions.
• However, CCS presents few sustainable development
  benefits apart from climate protection perhaps
  even harm.
• Important potential for CCS in South Africa, but
  SD-PAMs is not appropriate. More direct
  carbon-based finance will be necessary.

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Why include an SD-PAM in an international
agreement?

• Recognition. Many developing countries are
  implementing policies that bring major climate
  benefits. This fact needs wider recognition,
  which will in turn strengthen DC hands within
  climate negotiations.
• Learning. Many countries, developed and
  developing, share challenges and can learn from
  each others experiences.
• Integration. Aligning climate policy more closely
  with development interests engages important
  stakeholder and decision-makers.
• Support. Combining development and climate policy
  enables and promotes wider international support
  for both sets of goals. This includes the
  steering of larger sources of finance than are
  likely to be available for climate change actions
  alone.

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How would SD-PAMs work?

• Pledging
• Single pledge
• Mutual pledge
• Harmonized pledge

• Registry
• Maintained by international body (e.g. UNFCCC
  Sec.)
• Public information makes contribution clear.
• Helps with learning, recognition and better
  mutual understanding of national priorities.

• Reporting and review
• Reporting potentially easier than national
  communications.
• Facilitative review.

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Thank you! Rob Bradley rbradley_at_wri.org
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How would SD-PAMs work? Part 1

• The varied nature of SD-PAMs makes a pledge-based
  approach the most likely format for their
  implementation. These can take several forms
• Single pledge. A country pledges an SD-PAM based
  on its national circumstances.
• Mutual pledge. Two or more countries make
  pledges, perhaps including a pledge of support
  from a donor or partner country. The pledge to
  fully implement the SD-PAM on each country is
  dependent on the fulfillment of the other country
  pledges.
• Harmonized pledge. A group of countries pledge to
  undertake the same action. Potentially
  interesting among groups of major trading
  partners, to reduce competitiveness concerns.
• Mutual and harmonized pledging imply significant
  international negotiation.