Many of my compatriots in Poland, where over 90 percent of power generation comes from burning coal, are concerned that the EU climate policy is a risky outlier.
They worry that the EU Emissions Trading System may expose domestic industry to unfair competitition and cause companies to move production to countries where emission costs are lower, something called “leakage”.
The two reports recently released by the World Bank may change this perception.
This week, the World Bank Group released the latest version of our annual State and Trends of Carbon Pricing report. It reports that today,
This represents the equivalent of about 7 billion tons of carbon dioxide, or 12 percent of annual global greenhouse gas emissions.
By Stewart Elgie, Professor of Law & Economics at University of Ottawa and Chair of Sustainable Prosperity; Ross Beaty, Chairman of Pan American Silver Corp. and Alterra Power; and Richard Lipsey, Professor Emeritus of Economics at Simon Fraser University.
We often hear claims that a carbon tax would destroy jobs and growth. Yet the evidence from a Canadian province that actually passed such a tax – British Columbia – tells a very different story.
The latest numbers from Statistics Canada show that B.C.’s policy has been a real environmental and economic success after six years. Far from a “job killer,” it is a world-leading example of how to tackle one of the greatest global challenges of our time: building an economy that will prosper in a carbon constrained world.
By Yoichi Masuzoe, Governor of Tokyo
The IPCC’s Fifth Assessment Report firmly centered on the reality of human-driven climate change. If we don’t take immediate and tangible steps to reduce the consequences of these actions, we will face an environmental crisis that will have a major impact on mankind’s existence. Here in Tokyo, we are extremely concerned about this danger, as it poses a huge threat to our goal of becoming a sustainable and environmentally-friendly city.
In the year 2030, it is estimated that the number of people living in urban areas will exceed 60 percent of the world’s population, and measures at the city level are now crucial. The effects of climate change are already becoming apparent in a range of forms, and Tokyo is no exception. Tokyo has undertaken several measures to mitigate these effects, including launching the world’s first urban cap-and-trade program. In addition, Tokyo is implementing a number of pioneering initiatives, such as measures to counteract storm surges and floods, as well as major earthquakes, and advancing urban planning to realize a more resilient city.
|Two macaws in the Amazon.
Photo © istockphoto.com
Although the United Nations climate change conference in Copenhagen badly failed to achieve legally binding agreements, including on the specific mechanism of REDD (Reduction of Emissions from Deforestation and Forest Degradation), there was nevertheless a general sense that this mechanism is something worth pursuing. Meetings and discussions continued to take place after the conference was over, and a fund of US$ 10 billion is being set up to promote initial steps for tropical developing countries to prepare for REDD.
What lessons can be learned from the Brazilian Amazon, where deforestation rates have been steadily declining for 5 years?
Compared to estimates of land-cover change emissions from elsewhere in the tropics, estimates in the Brazilian Amazon tend to be relatively more certain because they are calculated from annual, satellite-based monitoring of land cover change for over two decades for the Brazilian portion of the Amazon. That is the work of the PRODES Project carried out by the National Institute of Space Research (INPE) of Brazil.
Deforestation in the Amazon changes a lot from year to year. The proximate causes are not totally known. They have to do with economic drivers such as prices of commodities (beef, soy, etc.), the opening of roads, but they are also influenced by the effectiveness of law enforcement to curb illegal deforestation.
The latter may have played a key role in reducing deforestation in the last 5 years. During that period, annual deforestation rates in the Brazilian Amazon plummeted from over 27 thousand km2 (August 2003-July 2004) to around 7 thousand km2 (August 2008-July 2009), an amazing 74% reduction over 5 years!
Carbon governance—the institutional arrangements in place for mitigating greenhouse gas emissions—can vary considerably across countries. In Brazil, the financial community is actively interested in carbon trading, but Chinese banks have hardly any interest in it. In India, the Clean Development Mechanism (CDM) market is developed almost uniquely by domestic companies, while China relies extensively on foreign firms. And while the Chinese government takes an active interest in providing capacity to project developers, the Brazilian authorities see their role uniquely as guarantors of environmental integrity of emissions reductions projects. So, if carbon is the same everywhere, why is carbon governance so incredibly varied?