2. International Climate Change Taskforce Established by the Center for American Progress (USA), the Institute for Public Policy Research (UK), and the Australia Institute in 2004 Co-chaired by Sen. Olympia Snowe and Rt Hon. Stephen Byers MP International cross-sector collaboration, including leaders from public service, science, business and civil society in both developed and developing countries

3. Summary of Main Recommendations Establish a long-term objective of preventing global average temperature from rising more than 2°C (3.6°F) above the pre-industrial level Building on UNFCCC and Kyoto Protocol, adopt a global framework for the post-2012 period G8 governments adopt renewable portfolio standard of at least 25% by 2025 G8 governments double funding for energy- efficiency and clean energy research, development and demonstration G8 and other major economies form a G8+ Climate Group

4. Summary of Main Recommendations G8 countries shift their agricultural subsidies from food crops to biofuels, especially from cellulosic materials All developed countries introduce national cap-and- trade systems for carbon emissions Governments increase investment in renewable energy and energy-efficiency through Export Credit Agencies Developed countries help vulnerable countries adapt to climate change and pursue the establishment of international compensation fund Commit to raising public awareness of climate change

5. Post-2012 Global Framework Overview Builds on UNFCCC and Kyoto Protocol Developed countries take on deeper legally binding reduction commitments which would be periodically negotiated Place the US and Australia on a parallel track with the aim of integrating them after 2012 Establish a three-stage process for developing countries, which aligns climate and development objectives as their national circumstances permit

6. US and Australia Integration Establish domestic emission caps Adopt cap-and-trade schemes, which could be harmonized with EU or Kyoto trading system Participate in Clean Development Mechanism and similar assistance programs to help developing countries

7. Developing Countries Integration Three stage process: –First stage: align development and climate goals, adopt policies that decouple economic growth from emissions growth –Second stage: Commit to reducing the carbon intensity of selected economic sectors; move towards carbon intensity targets –Third stage: Take on binding emission targets

8. Developing Countries Integration Potential criteria for moving through stages: Capability to mitigate – GDP per capita Potential to mitigate – degree of energy efficiency, emissions per unit GDP, emissions per capita

9. Global Framework Flexibility The framework would continue to develop in accordance with three further considerations: The need to meet a long-term climate objective, by ensuring that short-term targets are linked to and consistent with the long-term goal The gradual transition over the long-term towards a system of equal per capita rights to use the absorptive capacity of the atmosphere Developments in climate science and technological innovations

10. Recommendations for the G8 Double spending on research, development and demonstration of energy efficiency and low- or no-carbon technology by 2010 Establish national renewable portfolio of 25% by 2025 Establish national cap-and-trade programs Establish a G8+ Climate Group

11. Emissions Trading Policy Domestic programs outside of the Kyoto system could be tailored to allow for their integration into a common international emissions trading regime, as long as parity of the credits could be achieved. Pending the establishment of national programs in the US and Australia, programs on the regional and state level have the potential to make large reductions in CO 2 emissions.

12. Emissions Trading Policy: the G8’s role Recommend that all members develop and implement national “cap and trade” programs Promote the development of common standards for measurement and reporting of reductions as well as clear and compelling domestic compliance mechanisms to facilitate integration of trading systems Promote the development of common standards in their national systems for project-based offsets

13. G8+ Climate Group G8 countries in tandem with other critical countries, including developing countries like China, India, Brazil. The world’s largest 6 developed countries and the largest 6 developing countries represent over 80% of world GDP, 70% of global emissions and 60% of population. Small enough to effectively negotiate an accord

14. G8+ Climate Group Technology Partnerships Stimulating the market penetration of highly efficient vehicles Promoting biofuels, especially from cellulosic material, through the diversion of agricultural subsidies Loan guarantees for CO 2 -capture-ready integrated gasification combined cycle (IGCC) power plants

15. Helping HEVs High Efficiency Vehicles (HEVs) have emerged from new (hybrid-electric engines) and mature (diesel engines) technologies. They offer attractive near-term options for making significant reductions in fuel consumption and CO 2 emissions. However, even with fuel savings cost, their higher initial cost remains a barrier to their wider adoption.

16. Helping HEVs: the G8’s role Take steps to increase the deployment of HEVs for the long term Possible policy options include: –Efficiency standards –Price incentives –Government purchases Explicitly seek to engage key auto manufactures in G8 countries as well as in China, India and Korea

17. Promoting Biofuels Globally the transport sector accounts for ~ 1/3 of global CO 2 emissions, of which the G8 countries emit 60%. Many countries – including some large developing countries – import a significant fraction of their oil supply, creating major foreign policy and environmental issues. An increased use of biofuels can reduce oil demand and help alleviate international and environmental problems.

18. Promoting Biofuels Currently, biofuels are only a minor component of fuel in most countries because biofuels are more expensive compared to fossil fuels. Most G8 countries already subsidize biofuel crops under food programs so the application of these subsidies to biofuel production should be fairly straightforward. Refocusing subsidies could make biofuels price- competitive with gasoline, as well as reduce food overproduction and lessen the distortion of international food markets.

19. Promoting Biofuels: the G8’s Role Adopt a commitment to develop proposals for shifting subsidies from food production to biofuel production Individual countries’ actions need not be harmonized Common action would focus attention, and make a strong statement of international political will, in favor of biofuel programs

20. Cleaning Up Coal While we should aim to reduce subsidies to fossil fuel projects over time and prioritize support for renewables and energy efficiency, coal is expected to retain a major role in the power sector in several important parts of the world for some time Without some strategy for dealing with emissions from the coal sector, it may be impossible to address climate change in these countries.

21. Cleaning Up Coal IGCC plants provide the only cost effective way to capture CO 2 while using coal. They also offer near-term public health benefits because their emissions of traditional pollutants are far lower. However, IGCC plants are not currently cost competitive with conventional plants. An incentive is needed to spur the construction of IGCC plants now.

22. Cleaning Up Coal: the G8’s role Commit to supporting IGCC through loan guarantees under their Export Credit Agencies (ECAs) Funds could come from diverting existing ECA support to coal projects and in new money, although not at the expense of renewable or energy efficiency projects.