Sustainable Development Policies and Measures: Putting development first in a carbon-constrained world. COP11 December 5, 2005 Rob Bradley Climate and Energy Program World Resources Institute

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 Acknowledgements Funding providers Canadian International Development Agency Government of Norway, Government of the Netherlands 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

1.Why some developing countries must be engaged in mitigation activity if we are to avoid catastrophic climate change. 2.Developing countries face urgent and legitimate development priorities that make climate change a low political priority. 3.SD-PAMs as a means of reconciling these facts. 4.Examples studied in Growing in the Greenhouse. 5.Placing SD-PAMs in a climate agreement – why and how? Growing in the Greenhouse

Top 25 GHG emitters, 2000 Percent Global GHG Emissions Emissions from six gases Source: WRI, CAIT

The development challenge Population without access to electricity, selected countries

The development challenge Motor vehicles per 1000 people, selected countries

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. What is an SD-PAM?

“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 The SD-PAMs approach aims to create a formal mechanism to recognize developing country efforts in this regard, and to assist them. SD-PAMs implement UNFCCC principles

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

An SD-PAM already implemented! Driven by foreign exchange concerns – has saved $100 billion in external debt. Saves an estimated 26 Mt CO 2 per year. Some 20 other countries could benefit from same approach. Brazil – ethanol for transport

India’s rural electrification: million people without electricity. Three supply scenarios: –Grid First –Diesel First –Renewables First Three levels of rural electricity demand. India – options for rural electrification

Approaches are evaluated by India’s 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? India – a wider potential role for renewable energy Qualitative assessment of the scenarios CO2 emissions under the scenarios

India – a wider potential role for renewable energy CO2 emissions under the scenarios

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. South Africa – carbon capture and storage

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. Why include an SD-PAM in an international agreement?

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.

Thank you! Rob Bradley

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. How would SD-PAMs work? Part 1