General International Trends and Efforts in Coping with Climate Change

General trends and efforts in coping with climate change and progress at international level

Renato Roldao

Supporting the Design and Implementation of Emissions Trading Systems in China -中欧碳交易能力建设项目

Beijing, 25th of April 2016

This project/programme is funded by the European UnionProject implemented by: ICF International together with Sinocarbon, SQ Consult and Ecofys

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Table of Contents

1. International context

2. China context

3. Update of EU-China ETS Project



International Context



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1. Paris Agreement

SUPPORTING THE DESIGN AND IMPLEMENTATION OF EMISSIONS TRADING SYSTEMS IN CHINA -中欧碳交易能力建设项目

The agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C.

The agreement is due to go into force in 2020.

Mitigation: reducing emissions

– Governments agreed

• a long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels;

• to aim to limit the increase to 1.5°C, since this would significantly reduce risks and the impacts of climate change;

• on the need for global emissions to peak as soon as possible, recognising that this will take longer for developing countries;

• to undertake rapid reductions thereafter in accordance with the best available science.

– Before and during the Paris conference, countries submitted comprehensive national climate action plans (INDCs). These are not yet enough to keep global warming below 2°C, but the agreement paves the way to achieving this target.

http://unfccc.int/focus/indc_portal/items/8766.php

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1. Paris Agreement


Transparency and global stocktake

– Governments agreed to

• come together every 5 years to set more ambitious targets as required by science;

• report to each other and the public on how well they are doing to implement their targets;

• track progress towards the long-term goal through a robust transparency and accountability system.

Adaptation

– Governments agreed to

• strengthen society‘s ability to deal with the impacts of climate change;

• provide continued and enhanced international support for adaptation to developing countries.

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1. Paris Agreement


Loss and damage

– The agreement also

• recognises the importance of averting, minimising and addressing loss and damage associated with the adverse effects of climate change;

• acknowledges the need to cooperate and enhance the understanding, action and support in different areas such as early warning systems, emergency preparedness and risk insurance.

Support

The EU and other developed countries will continue to support climate action to reduce emissions and build resilience to climate change impacts in developing countries.

Other countries are encouraged to provide or continue to provide such support voluntarily.

Developed countries intend to continue their existing collective goal to mobilise USD 100 billion per year by 2020 and extend this until 2025. A new and higher goal will be set after this period.

http://ec.europa.eu/clima/policies/international/finance/index_en.htm

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2. Signature of Paris Agreement and way ahead


• A total of 175 countries are reported to have signed the Agreement, with 15 of those countries going a step further and actually submitting “instruments of ratification, acceptance or approval". This breaks the record for first-day signatures held by any international treaty.

• China and The European Union were among the Parties that signed the Paris Agreement on climate change on Friday 22 April in New York. The signing ceremony, convened by UN Secretary-General Ban Ki-moon, followed the adoption of the world's first universal climate change agreement by 195 countries in Paris on 12 December 2015.

• Signature means first and foremost that the Parties are signing up to the commitments made in Paris. It sent also a clear signal that the world is signing up to a fundamental and ground-breaking transition to a low-carbon economy and society.

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3. Time for action and high level of ambition


Domestic Context



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1. China Nationally Determined Contribution (NDCs) and Actions in the context of post-Paris Agreement


• On 30 June 2015, the Chinese government submitted its Intended Nationally Determined Contribution (INDC), detailing its commitment to climate change mitigation and adaptation for the post-2020 period. Highlights of the INDC include specific goals such as:

• To achieve peak carbon dioxide emissions by approximately 2030 or sooner as best efforts allow;

• To lower carbon dioxide emissions per unit of GDP by 60% to 65% from 2005 levels;

• To increase the share of non-fossil fuels in the primary energy mix to approximately 20%;

• To increase the volume of forest stock by approximately 4.5 billion cubic meters over 2005 levels, and;

• To continue to proactively adapt to climate change through: enhanced mechanism-and capacity-building; the effective management of climate change risks in sectors such as agriculture, forestry, and water resources, and in regions including urban, coastal, and ecologically vulnerable areas; improved early warning and emergency response systems, disaster prevention and mitigation mechanisms.

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2. China and the context of post-Paris Agreement


• China is shifting to a ‘new normal’, powered by an ‘innovative development pathway’

• China’s NDC is a key vehicle in driving the shift onto the innovative development pathway and towards the ‘new normal’

• However, China faces tremendous uncertainty and challenges in achieving its targets

• To meet the global goal of restricting temperature increases below 2°C, significant emission reductions will be required beyond 2030, by both China and its international partners

• As the world's largest developing country, China’s plans and actions can serve as amodel for many other developing countries

• A wide range of policies and measures will be needed to help meet the NDC targets anddrive China’s transition towards the innovative development pathway

• Low-carbon policies are projected to have a net positive impact on employment.

Update of EU-China ETS Project



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1. Description of the action: Objectives / Beneficiaries / target groups


• 3 year project (Jan. 2014 – Jan. 2017) • Objectives: to support China in meeting the environmental, energy- and carbon-intensity

targets defined in the 12th Five Year Development Plan [and the targets expected in the 13th Five Year Development Plan (2016-2020)]. • To provide technical assistance to support design and implementation of emissions trading systems

in China

• To assist China in its efforts to meet its emission reduction targets and low carbon development in designing and implementing successful emissions trading pilots that lead over time to successful nationwide action.

• Beneficiaries: NDRC and local DRC as the project will have a strong focus on National ETS, but will also engage and take into account ETS Pilots and non-pilots

• Target Groups: • Representatives for all of stakeholder groups:

– National level authorities – Local level authorities – Research Institutes– Other authorities – Enterprises/ Sectoral associations– Third parties

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Results driven project approach


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Key Project Components and Activities flow diagram


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Activities implemented in China (BJ + SH) and 3 EU Member States (UK, GER, BEL)

Experts from:

China

Austria, Belgium, Germany, Hungary, the Netherlands, Portugal and UK

AWP1: 12 activities

AWP2: 8 activities

AWP3 + Extension activities (10 activities)

Total 30 project activities (estimated by end of 2016)

1500+ trainees (estimated by end of 2016)

250+ training materials, technical presentation and papers (estimated by end of 2016)

Project in Numbers

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May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15

TA Activity topic Activity Code Building Block Activity type

Component I: Training and Information Materials

1st two Regional Training on ETS A to Z - Accelerating support for

roll-out of national ETS) - Level 1 A.1/AWPI/C1.B1-B6.

All building

blocks

Training & Info

MaterialsP P P D

2nd two Regional Training on ETS A to Z - Accelerating support

for roll-out of national ETS) - Level 1A.2/AWPI/C1.B1-B6.

Training & Info

MaterialsP P D

Processes and techniques for design and operation of cap-setting

including emissions data and BAU projectionsA3/AWPI/C1.B2. Cap-setting

Training & Info

MaterialsP P D

Economic modelling of cap-setting and allocation options A.4/AWPI/C1.B2-B3 Cap-setting and

Allocation

Training & Info

MaterialsP P D

Design options for allocation A.5/AWPI/C1.B3. AllocationTraining & Info

MaterialsP P D

Benchmark development A.6/AWPI/C1.B3. Training & Info

MaterialsP P D

Development, implementation and improvements to Monitoring

and ReportingA.7/AWPI/C1.B4.

Monitoring &

Reporting

Training & Info

MaterialsP P D

Monitoring and reporting requirements for sectors I A.8/AWPI/C1.B4. Training & Info

MaterialsP P D

Evaluation of effectiveness of ETS implementation A.9/AWPI/C1.B1-B6. overall/ other Training & Info

MaterialsP P D

Strategic ETS design considerations A.10/AWPI/C1.B1-B6. Training & Info

MaterialsP P D

Component II: Study assignments and experts exchange

ETS Cap Setting, allocation and regulatory framework (1st group

of participants)A.22/AWPI/C2.B2-B3. Allocation Study Assignment P P D D

ETS Cap Setting, allocation and regulatory framework (2nd group

of participants)A.23/AWPI/C2.B2-B3. Allocation Study Assignment P P D D

P = Preparation of activities

D = Delivery of activities

PHASE II: IMPLEMENTATION PHASE

AWP 1

AWP1

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AWP2

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Activity # Building Block Activity type TA Activity topic dates (Estimated)

A.21/AWPIII/C1.B1-B6. MRVA, Registry, allocation and other/

overall Train the Trainers 2nd China National ETS Train the trainers technical workshop P P D F&W

200 2 trainers Activity start in the Week of April 25th

Ext. E.2 other/overall China/ EU joint research groups Joint research activity on 5 topics + internship at appropriate places P D F&W P D F&W

30 102 researchers Activity start in the Week of April 25th and to

wrap up in the week of October 17th

NEW.A.31/AWPIII.C1.B1-B6Multiple building blocks: Including

Monitoring and Reporting, other/ overallTraining & Info Materials Training for Industry P D F&W P D F&W

120 2 Industry/ SOE One day in April and one day in October

NEW.A.32/AWPIII.C1.B1-B6

Multiple building blocks including MRVA,

Registry and Market Oversight, other/

overall

Technical working group

discussion

Training for DG and Senior Directors of local DRCs: role, functions and

legislation (follow up from AWP1 and AWP2 study assignments)P D F&W

80 2 DRC-DG/SD July

NEW.A.29/AWPIII. C1.B1-B6. other/ overall Peer to Peer and technical working

group discussion

Senior Experts roundtable discussion assessment/review of the effectiveness

of an ETSP D F&W

30 1 senior experts Activity in the Week of October 17th

NEW.A.30/AWPIII. C1.B1-B6. MRVA Peer to Peer and technical working

group discussion

Senior Experts roundtable on Data, data collection and their verification

including emission data verification P D F&W

30 1 senior experts Activity start in the Week of April 25th

Ext. E.3 MRVA Peer to Peer training Peer to Peer training on Verification of GHG Emissions P D F&W

30 10 senior experts

July

Ext. E.4 other/ overall public report Project Report/ publication P D

general public/ public

outreach to be launched back to back with the October

activities and the closing event of the project

Ext. E.1 other/overallPolicy Study Tour/ High level

political dialogue visit to Brussels

High level policy makers dialogue on ETS: "EU ETS Reform and China

National ETS" in Germany + BrusselsP P D F&W

15 8 policy makers

October/ November

A.28/AWPIII.C2.B1-B6. other/overallStudy assignment/ Train the

trainers UK Study assignment "Acelarating readiness for China National ETS" P P P P D F&W

15 14 trainers

September

550 142

Component II: Study assignement and experts exchange

# of participants No. of

daysTarget audience

Component I: Training and Information Materials

F&W = Follow up and wrap up/ post-activity tasks

AWP2PHASE II: IMPLEMENTATION PHASE

AWP3

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Designing and implementing China’s national ETS is a complex and a joint effort of many stakeholders (domestically and internationally).

In the following slides, you will find areas of interest: these are areas where the project team have contributed positively to the policy design and implementation via this technical assistance project.

Impacts and Institutional Capacity

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On a regular basis the project team supports the Chinese officials responsible for designing China national ETS Policy (and its technical building blocks) as well as those that will be implementing it/rolling it out post-2017

It is remarkable to assist China in the development of its ETS system that reflects its own characteristics and circumstances. However, there are multiple technical building blocks emerging with similarities to the EU ETS

China National ETS is now considered the single most important policy tool in China to reduce GHG emissions and to allow the country to go through a necessary industrial and economic reform as well as supporting INDC to meet its

The China ETS is a work in progress. The achievements so far are very relevant (examples next slide)


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Key highlights

The importance of developing roadmaps and actions plans combined with the roles and functions of the competent authorities has been gradually addressed from the first regional training to the last study assignment. China is now in the process of preparing and rolling out “implementation plans” nationwide

Senior roundtable discussions on ETS co-benefits, MRV, legislation, sectoral coverage, financial products and instruments, data collection and emissions data verification, etc

Improvements in monitoring and reporting (e.g. including the use of monitoring plans)

Third party verification system for National ETS

Improvement of the effectiveness of ETS and of allowance allocation approaches

From the beginning China has decided to include the national ETS, a stability mechanism that is similar to the EU ETS MSR (to start from 2019 only)

Train the trainers activities have contributed to the deepening and enlargement of China’s ETS knowledge basis

Strategically supported the development of institutional capacity at industry and sectoral association level

To build strong institutional capacity for local DRCs, research institutes and other local entities supporting the local governments


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1000+ participants directly trained

Visibility and outreach events

Newsletter

Project Banner/ Rollups

WeChat groups

LinkedIn group

Slideshare

China ETS Knowledge Management Platform (provide content that can be utilised in a platform that is under preparation)

Eurobiz article

Project Communications, visibility and outreach

Thank You!

Renato Roldao, Consulting Director, ICF International, Team Leader EU-China ETS Project [email protected]

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Environment

General International Trends and Efforts in Coping with Climate Change