Sustainable Developments |
5th UNCTAD/Earth Council
Policy Forum on Trade and Climate Change (Rio Policy Forum): |
Update for Thursday 30 August 2001:
 Delegates
to the Rio Policy Forum met in the morning for the official Opening of
the meeting and heard opening remarks from Rubens Ricupero (Secretary
General of UNCTAD), Maurice Strong (Chairman of Earth Council
Institute), Paulo Protasio (Chairman of IETA), Minister Ronaldo
Sardenberg (Ministry of Science and Technology) and Philippe Reihstul
(Executive President of Petrobras). In the afternoon and evening
delegates continue to hear panel presentations. Left photo: The
dias during the opening session |
| Opening session: |
 The
opening session of the Rio Policy Forum, which officially started on
Thursday, August 30, was entitled “Climate Change, energy crisis and
globalization” and aimed to address the questions how can bottom-up
climate change initiatives converge with top-down negotiations and
whether private sector and civil society need to wait for Governments to
act. Mr. Lucas Assunção, UNCTAD (right), was the policy forum co-ordinator and
chaired the event.
Listen to Lucas Assunção's opening remarks in Real Audio |
 Listen
to Rubens Ricupero's opening remarks in Real Audio
The opening session on climate change, energy crises & globalization asked how can bottom-up climate change initiatives converge with top-down negotiations and whether the private sector and civil society need to wait for governments to act?  Listen
to Maurice Strong's opening remarks in Real Audio
|
| The Kyoto Protocol Negotiations: What next? |
|
Keynote
speaker Mr. Tahar Hadj-Sadok (right), Deputy Executive Secretary, Climate
Change Secretariat (UNFCCC), highlighted developments made at COP6 Part
II. |
 Paul
Fauteux (right), Canada, noted that of the four main issue clusters, Kyoto
Mechanisms was the least elaborated in Bonn. He said Bonn provides clarity
on the general framework for the Kyoto Mechanisms market. The level of
clarity, at least with respect to Mechanisms, should be sufficient for
Parties to make their ratification decision in the coming year, but
resolution of operational details for the Mechanisms will take us to COP
7, and in some cases beyond.
Listen
to Paul Fauteux' presentation in Real Audio
|
 Everton Vargas, Brazil, noted the emerging carbon market has far reaching consequences for many sectors of society. Not only does it present a new tool for environmental policy, it is also changing the nature of international relations. |
| KEYNOTE ADDRESS: |
 Richard
Sandor, Environmental Financial Products LLC (right), gave a keynote
address. Sandor has gained first hand knowledge on how markets evolve and
explained how the Acid Rain Trading Program in the United States, which
started in 1990, represents the latest trend in the commoditization of
natural resources. There is no inherent difference between the right to
trade a ton of wheat and to trade the right to emit a ton of SO2.
As long as the legal entitlements are well defined, emissions credits can
be traded like any other commodity.
|
| THE STATE OF THE GHG MARKET: VIEWS OF GHG OFFSETS IMPORTING COUNTRIES |
 This
session, moderated by Gao Pronove, UNCTAD, considered the provisions for
the purchase of project-based GHG offsets from abroad and the criteria and
requirements for their trade within emerging national systems. A panel of
European countries discussed their experiences with domestic emissions
trading systems.
|
 Peer Stiansen, Norway (right), said that while Norway does not have an emissions trading scheme yet, his country has started discussions on the merits of a national system. Norway attempted to levy an environmental tax on heavy industry, which is largely responsible for GHG emissions, but met much resistance. |
 Margaret
Mogford, British Gas (right), spoke on her participation in the working
group in the United Kingdom on setting up an emissions trading scheme. A
pilot-scheme started off with 28 companies, several government ministries,
brokers, and environmental NGOs. Companies started to accept the political
reality that some form of climate change policy was inevitable and largely
cooperated. The scheme is designed as a dual system.
|
 Hans
Sterh, Danish Ministry of Environment and Energy (right), explained that
Denmark had an aggressive target to reduce CO2 emissions from
power plants before the Protocol specified new targets. Under the EU
burden-sharing agreement, Denmark has to reduce its GHG emissions to 21
percent below 1990 levels. Denmark�s emissions from power plants, the
majority of which are coal-fired, are heavily influenced by its
interconnections with other countries, particularly Norway. Norway is 99
percent dependent on hydro electricity, and in a dry year, such as in
1996, it must import electricity from Denmark.
|
 Lex
de Jonge, Netherlands Ministry of Housing, Spatial Planning and
Environment (right), said The Netherlands must reduce its GHG emissions to
6 percent below 1990 levels. It aims to achieve these reductions through a
combination of domestic cuts and use of the flexible mechanisms of the
Protocol, mainly through the CDM. Only at a later stage will The
Netherlands participate in an emissions trading scheme.
|
 Jurgen
Lefevere, Foundation on International Environmental Law and Development
(right), spoke on the development of an EU emissions trading scheme,
scheduled to be implemented in 2005. While he was not speaking on behalf
of the EU, his organization is involved in the consultation process and
was asked to speak on this topic. The exact scope of the EU system is
still under consideration, and no formal proposals have been put forward,
but the core of the several proposals that have been leaked suggest the
scheme would be relatively straightforward. Initially, only larger
emitters would be included, approximately 4,000 � 5,000 in total,
covering only CO2 emissions.
|
| PRIVATE SECTOR VIEWS OF GHG OFFSETS IMPORTING COUNTRIES: |
 This
session, introduced by Andrei Marcu, IETA, considered the specific
attributes of GHG offset projects that would attract private investment,
the specific project characteristics that have attracted investment, and
what motivates multinational companies to invest in GHG offset projects in
developing countries.
|
| John Mogford, British Petroleum (BP), discussed BP�s approach to climate change. He noted they first set an internal target in their operations and have learned much since. Since 1997, BP has reduced emissions by about 7.5%, using an internal cap and trade scheme. He noted BP�s influence in efficiency and substitution, policy debate involvement, research investment and learning by doing. |
 Paul Vickers, TransAlta, highlighted a chart showing the evolution of market instruments and noted their use in achieving environmental outcomes and the sophisticated body of knowledge on what already exists and works. He emphasized TransAlta�s high volume of CO2 emissions and noted they are developing renewables and other measures so that they don�t just rely on offsets. |
 Frede Cappelen, Statoil, noted GHG emission trends in Norway and highlighted Statoil�s profile, noting their efforts to find possible reductions throughout the business. He said there is currently no proposal for pilot emission trading Norway. On Statoil�s position on emission trading, he noted their management infrastructure is in place |
 Cindy Kohuska, SwissairGroup (left), highlighted the interface between the Kyoto Protocol and the aviation industry, and noted International Civil Aviation Organization (ICAO) recommendations as they relate to Kyoto. ICAO projects that emissions from the airline industry are set to increase significantly. |
 Bernt
Rydgren, NRG (right), noted that NRG is the third largest independent
power company in the world and highlighted their vision for the future in
terms of high growth and responsibility. On expectations, he noted the
Kyoto flexibility mechanisms provide win/win outcomes and stressed it all
comes down to risk management. Dependability and the ability to forecast
are key. He said that the risk factors were really the same as in regular
business. Expectations of credits include that they be verifiable,
guaranteed and tradable.
|
EARTH
COUNCIL
