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MB%About the Center for Clean Air Policy&&  Founded in 1985, the Center for Clean Air Policy (CCAP) is a recognized world leader in air quality and climate policy and is the only independent, nonprofit think tank working exclusively on those issues at the local, national and international levels. www.ccap.orgb      NCIDialogue on Future International Actions to Address Global Climate ChangeJJ  Brings together senior climate negotiators from some 15 developed and 15 developing countries and a limited number of companies Informal, off-the-record forum to discuss mitigation and adaptation options for a possible post-2012 international framework for climate policy CCAP produces working papers on options and quantitative analyses (e.g. Brazil, China, India Analysis) Discussions focus on practicality and implementation:"  ^DFuture Actions Matrix: Major Elements of the Future Actions DialogueEE  cG%Range of Structural Options Discussed&& Developing Country economy-wide GHG intensity targets  Greening Investment Flows from Multilateral Financial Institutions, ECAs and the private sector Technology Strategies  Positive Incentives for Reducing Deforestation More Stringent Annex I commitments Sector-Based Approaches Sustainable Development Policies and Measures (SD-PAMs) Sectoral CDM F`#E),|Z!DIALOGUE OPTION IN DEPTH PROFILE"" 0 Sectoral Approach to Post-2012 GHG Reductions(// 'a3Power of Unilateral Actions by Developing Countries44 cNew CCAP study shows: Brazil, China and India are making significant unilateral GHG reductions based on new policies 70% of these unilateral reductions in Brazil and China are outside the CDM, 30% in India Unilateral reductions are comparable to those of the US voluntary intensity program and roughly equal to 40% of EU actions within Europe through 2010Nd`ESector-Based Approaches -- Advancing Sustainable Development Goals --"F.Z Recognizes and encourages unilateral efforts by developing countries to reduce GHG emissions Helps produce co-benefits (improved energy security, public health from improved air quality) Improves upon the Clean Development Mechanism by encouraging technological innovation Helps explicitly mobilize public & private sector technology financing D^" Y918What is a Sectoral Approach to Post-2012 GHG Reductions?99 -Bottom-up method for encouraging sector-wide actions in developing countries & for deriving economy-wide targets in developed countries Based on analysis of what is technologically feasible and economically cost-effective in each industrial sector both globally and in each country In each sector, developing countries pledge to achieve a carbon intensity level and are rewarded for beating the target but not punished for falling short For Annex I countries, carbon intensity goals are the basic building blocks for the next national tonnage targets " Z" Z" Z" Z" Z%Z+XREstablishing the  No-Lose Sector Target ** A voluntary  no lose intensity target (e.g., ton CO2 / ton of steel) is established4V%Z5J #!Z Technology Financing and Assistance Package .. VTo encourage developing countries to take on more aggressive no-lose targets: Industrialized countries, International Financial Institutions (IFIs), Export-Credit Agencies (ECAs) provide: A package of technology finance and assistance incentives Designed to encourage demonstration of more expensive innovative technologies like IGCC/CCS O" Pn" P" P:" P] 9] W6Government Policies Can Drive Technological Innovation77  :5Negotiation ProcessRNegotiation of the program could proceed as follows: Agree on which countries will participate  minimum global coverage needed in each sector Independent agency defines energy intensity benchmark for a given sector as starting point for negotiations Negotiate a GHG intensity using such factors as the energy intensity benchmark, fuel mix, and cost  one for new facilities and one for existing facilities in each sector66ZtldZ6t{ONegotiation Processb Link the program to a technology finance package  assistance from tech finance is incentive to stronger pledge levels Link to Annex I target-setting process Agree on how the sectoral approach is linked to trading CDM continues for countries not involved in the sectoral approach and for all countries in non-industrial sectors. Countries electing the sectoral approach for key industries still play in CDM in other sectors. pPldPldPlP>PUC;4,How Many Developing Countries Need to Play ?-- =Top 10 developing countries in each sector emit 80-90% of CO2">< b Which Sectors Should Be Covered?'Start with electricity and major industrial, internationally competitive sectors These sectors are roughly 1/3 of developing country (excluding LULUCF) GHG emissions and 1/3 of global emissions Could expand to auto manufacturing, fuels, appliance standards etc. Prefer a country-based approach 8(M  70N Sectoral Approach + Stringent Annex I Targets in 2020 = 550 ppm CO2e possible*OC   If the six highest-emitting developing countries follow a sectoral approach in three key sectors and: EU et al achieve emissions 30% below 1990 levels by 2020 US achieves 1990 emissions level by 20200fZbZfbD9;Lessons for International Policy from the Sectoral Approach<< * Build on developing country unilateral actions Build targets from the bottom-up Focus on internationally competitive industries first Seek industrial level playing field  Rely on energy intensity benchmarks as starting point ZZ&Z7ZZ/Y&7[ Lessons for International Policy!! 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A!] Lessons for International Policy Build on private sector momentum  harness private sector investment flows Focus on removing financing and policy barriers in developing countries to cost-effective EE/RE options Agree on global emissions budget for 2020 consistent with long term atmospheric concentration goals Agree on more stringent developed country targets for 2020 to set carbon price signal q )/9):;\kCreating Incentives to Reduce Greenhouse Gas Emissions Post 2012: Options from the Future Actions Dialogue,lk  gFor More Information about the Future Actions Dialogue and The Sectoral Case Study Visit: www.ccap.org$hZ[  F@      /ljkmw   ` ̙33` ` ff3333f` 333MMM` f` f` 3>?" dd@$?lKd@` d33  @lA` d33 n?" dd@   @@``PP    @ ` ` p@@ ^ V  (      `l> xaxa1 ?"`   T Click to edit Master title style! !N  ZA xaxa1 ?"   RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  0E  "     b*0fB  0D?"fB  0D33>?"  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A  |Developing Country s Contribution to Protecting the Atmosphere?0 ?  <1? `  IEligible for Sale0 F  P0P  P P  HeA ?1? P0P    HG HA1?"`     BH<1?"`     Z/ A ?1?"`   H  0޽h ? ka___PPT10i.d@+D=' f= @B +  P 6(  r  S 0     S \P0   eH  0޽h ? ka___PPT10i.Bz+D=' f= @B +  p](  r  S `   l  6A 1?"`P p7  <X1?`c Source: Schmidt et al. 2006. Sector-Based Approach to the Post-2012 Climate Change Policy Architecture. CCAP Future Actions Dialogue Working Paper.0  H  0޽h ? ka___PPT10i.DO+D=' f= @B +  F(  x  c $`     c $ 0  " `PpH  0޽h ? ka___PPT10i.B F+D=' f= @B +  @F( fitotacinoi @x @ c $ &`  &  @ c $&p@ & " `PpH @ 0޽h ? ka___PPT10i.B F+D=' f= @B +=  H@(  x  c $T      < &1?`= lSource: Author s calculation; see Schmidt et al., 200670 27 r  S !&P &   BA ?1?"`p` H  0޽h ? ka___PPT10i.B G$+D=' f= @B +}  $(  r  S /&`  & r  S 4& & H  0޽h ? ka___PPT10i.U }+D=' f= @B +5  @8 l(  l~ l s *5&0`  &  l s *4F&   &  e l <TK&1?  zSource: Hhne et al., 20050 2   l BA ?1?"`  <  H l 0޽h ? ka___PPT10i.Bz+D=' f= @B +   $(  r  S Y&`  & r  S `Z&pp & H  0޽h ? ka___PPT10i.#`g`+D=' f= @B +}  @$(  r  S &`  & r  S `&  & H  0޽h ? ka___PPT10i.M+D=' f= @B +  P0(  x  c $&`  & x  c $&  & H  0޽h ? ka___PPT10i.M+D=' f= @B + `6(  ~  s * &`  & x  c $ܙ&P ` & H  0޽h ? 33___PPT10i..$I+D=' f= @B +B 0 |p( p R  3 `P     C 0 @0   " H  0.k ? 3380___PPT10.\Os2C 0 XP( D R  3 `P   V  C  @0b  JB___PPTMac11   hnamd` Arial&Monotype Typography   I changed  Involves to  Brings together and added  a before  limited H  0.k ? 3380___PPT10.\Os$pG 0  (  R  3 `P      C ,  @0   I changed  Country-wide to  Country economy-wide  is this what you meant?H  0.k ? 3380___PPT10.\Os]1 0   ,( Axobtvcaa ,R , 3 `P    , C d @0T  <4___PPT9 nBottom-up method for encouraging developing country sectoral (e.g. steel, cement, electricity) pledges and for deriving Annex I country targets Based on analysis of what is technologically feasible and economically cost-effective in each industrial sector both globally and in each country For developing countries, goal is no-lose target  pledge to reach intensity level in given sector, rewarded if achieved, no penalty if not achieved I changed  Annex 1 to  Annex I and reworded some of the other bullet points(%N%4H , 0.k ? 3380___PPT10.hOsp 9 0   0T ( emantneWseirsesY TR T 3 `P   &  T C Dp& @0l  &TL___PPT9.& Sectoral No-Lose target approach can maintain needed progress in 2020 to stay on course for 450 ppm CO2 concentration goal provided A1 countries take strong targets for 2020 No-lose target has political and cost-effectiveness attractions  simplifies current CDM issues Helps realize the full potential of market-based opportunities and advances sustainable development by: Recognizing and encouraging  unilateral actions by developing countries (e.g., China s vehicle efficiency standard) Addressing leakage and competition since all the major players in a given sector participate and starting point for target setting is same energy intensity benchmark Covering all facilities in a given sector (not just the ones reducing emissions as in the CDM) Encouraging developing country  contributions to the atmosphere Providing specific and targeted technology finance for advanced and more expensive technologies Potentially viable for other sectors as well, e.g.: Vehicle efficiency Appliance and lighting efficiency I made the last three bullet points to be sub-bullets of the sectoral approach bullet point.%PhPP4P5P%P]f J  h  4 5  ]6XH T 0.k ? 3380___PPT10.pOs&\X 0 @l(  ^  S `P     c $ @0l  TL___PPT9.& Emission reductions that developing nations to meet their  no lose target no penalties for not meeting the target are their contribution to the atmosphere. Any additional reductions can be traded. Emissions reductions beyond the  voluntary pledge are eligible for sale As emissions reductions credits (ERCs) for sale to developed countries Voluntary intensity target effectively becomes the country s crediting ( CDM ) baseline I added  ton between  e.g. and  CO2 and  Protecting to the text to the right of the figure. I also moved the figure and the green bullet point.@I%4I42H  0.k ? 3380___PPT10.]Os*:! 0 `J(  X  C `P     S   @0   L8I capitalized the text of IFI and ECA and added a hyphenH  0.k ? 3380___PPT10.(B`%W 0 5(  X  C `P     S  @0   7#Do we need a source for the figure?H  0.k ? 3380___PPT10.t~5 0 (  X  C `P   &  S @& @0  & |I added  facilities after  existing in the last bullet pointH  0.k ? 3380___PPT10.?%JO 0 Z(  X  C `P   &  S & @0  & \HI added a hyphen to  target setting H  0.k ? 3380___PPT10.4 0 /'(  X  C `P   &'  S )& @0  & I moved the title down a bit and subscripted the 2 in CO2 in the bullet point. Can we make the numbers darker in the dark blue hashed areas? They are a bit hard to read. 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