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A proposal to integrate biospheric emissions/removals into future policy regimes

Annette Freibauer 1 Niklas Höhne 2 Anke Herold 3 Ernst-Detlef Schulze 1

1 Max-Planck-Institute for , Jena, Germany 2 ECOFYS, Cologne, Germany 3 Öko-Institut, Berlin, Germany

Biosphere in future climate regimes

Contents

• Biospheric specifics

• Challenges for future periods

• Proposal to integrate biospheric Biospheric Specifics emissions and removals

Challenges

Proposal • Implications

Implications

Biosphere in future climate regimes

1 Biospheric Specifics

• Fast C losses versus slow C uptake • Conflicting roles in mitigation • Regional and -specific hotspots – use change – – change in Biospheric • Regional with climate Specifics • C stocks at risk hardly protected under the Challenges : Proposal – <30% of C stocks in Annex-I countries – <1% of C stocks in mandatory accounting Implications

Biosphere in future climate regimes

Key questions

• What framework will maximize global emission reductions?

• How to protect C stocks in the biosphere?

• How can countries with small C losses from the biosphere share the responsibility, Biospheric Specifics and assist other countries in protecting C stocks?

Challenges

Proposal Criteria and Principles Implications

Biosphere in future climate regimes

2 New Proposal

• Maximum flexibility in the global emission trading for emissions and removals in order to promote high targets

Biospheric • Buffered by a control to conserve Specifics national biospheric C stocks

Challenges in order to ensure environmental integrity

Proposal

Implications

Biosphere in future climate regimes

1. Two Interrelated Targets

a) “GHG Flux Target” Reducing net GHG emissions in all sectors including biospheric GHG fluxes; with international emission trading.

b) “C Stock Target” Biospheric Specifics Conserving the existing C stocks in the biosphere at national level; Challenges domestic target Proposal

Implications

Biosphere in future climate regimes

3 2. Definitions

• Merging of all LULUCF activities into "Managed land" with a new definition in line with IPCC-GPG-LULUCF:

"Managed land is

Biospheric all land subject to human use, Specifics including production, social and ecological

Challenges functions, even at very low frequency or intensity, or subject to any kind of direct Proposal human disturbance" Implications

Biosphere in future climate regimes

3. Scope

a) Mandatory full GHG accounting of "managed land" in line with the IPCC Guidelines

b) Optional full GHG accounting of

Biospheric "unmanaged land" Specifics

Challenges

Proposal

Implications

Biosphere in future climate regimes

4 4. Accounting rules

a) GHG Flux Target: Accounting for GHG fluxes against a base period for all sectors including the biosphere ("net-net" accounting):

increases every commitment period

Biospheric a) C Stock Target: Specifics Mean national biospheric C stock in all Kyoto pools Challenges on all accounted in base period; nationally differentiated according to expected growth Proposal of C stock or capacity to reduce C losses: Implications relatively constant over

Biosphere in future climate regimes

5)

a) : GHG Flux Target: fully tradable C Stock Target: NOT tradable

b) Projects: GHG Flux Credits accounted in investor country as under present rules. Eventual related changes in the biospheric C stocks of the Biospheric Specifics host country considered in its C Stock Target

Challenges c) Full fungibility of GHG Flux Credits between biosphere and Proposal other sectors No fungibility between C Stocks and C Fluxes, but Implications consistency check via C stock changes in biosphere

Biosphere in future climate regimes

5 Example: Accounting

Country A Country A GHG Flux Accounting C Stock Accounting (Domestic fluxes) (Domestic biosphere)

Biosphere

Co ) n sis ten cy at start CO2 Sources CO2 Biospheric + ( C stocks

N O stocks

GHGs other sectors 2 C Specifics of Commitment Period CH4 ∆C CO2 ∆ Challenges C CO2 (C loss) - (Sinks) Proposal A: Debit from selling C A: Credit from buying C Implications CO2 „Reduced C emission from biosphere“ trading

Emission B: Credit from buying C B: Debit from selling C Biosphere in future climate regimes

600 Example: 500

400 Targets

300 C-equivalents C-equivalents -1 200 Country B: C from biosphere

Tg year Country B: GHGs from Other sectors 100 GHG Flux Target (sum of arrows) 0

2 9 Target 90 9 93 94 96 9 00 9 9 9 9 0 1 1991 19 1 1 1995 1 1997 1998 19 2 period

375000 Biospheric 374000 Specifics 373000 372000 Challenges 371000 Tg C 370000 Proposal 369000 Country B: C stocks in biosphere 368000 C Stock Target Implications 367000

2 5 9 Target 91 9 94 9 98 9 9 9 9 9 1990 1 19 1993 1 1 1996 1997 1 19 2000 period

Biosphere in future climate regimes

6 7) Compliance • GHG Flux Target: – not met: emission trading – no postponing! – exceeded: sell credits in international

• C Stock Target – not met: Biospheric • domestic target – no trade! Specifics • encourage projects to help meeting target! Challenges • meet target in next period (+fine?)

Proposal • C losses automatically in E/R – exceeded: automatic creditts in GHG Flux Target Implications

Biosphere in future climate regimes

Implications

• Stronger role of biosphere!

• Theoretically, – more sinks to meet commitments – more sources as risk factors – more uncertainties? Biospheric Specifics • Practically, Challenges – towards a cost-efficient global GHG market

Proposal – towards higher commitments (PRECONDITION) – towards better protection of regional C stocks Implic- ations

Biosphere in future climate regimes

7 Implications

•Art. 3.1 UNFCCC: – Protecting the – Equity, sovereignty – Common but differentiated responsibilities • Sound scientific basis: measure, verify

Biospheric • Environmental integrity Specifics • Ease of implementation Challenges – consistent with present rules (MA) Proposal – consistent with present reporting formats Implic- ations • Simplicity, flexibility: Ease of negotiation

Biosphere in future climate regimes

Summary

• GHG Flux Target – same rules for all sectors – fully fungible sectors – fully tradable emissions and removals – all managed land mandatory – compliance by trade within commitment period

• C Stock Target for biosphere – separate target for conservation – domestic – all managed land mandatory – compliance supportable by projects and external investment

Biosphere in future climate regimes

8 Thank you

Biosphere in future climate regimes

5) Flexible mechanisms

Host Country Investor Country

LULUCF Activity GHG emission/ GHG emission/ removal debits C stocks for removal debits C stocks for and credits for C Stock Target and credits for C Stock Target GHG Flux Target GHG Flux Target

ARD (Art. 3.3)

Forest management accountable, can buy net accountable no credits (Art. 3.4) tradable credits without

Cropland, cap Biospheric grassland Specifics management (Art. 3.4)

Challenges accountable: net reduction in can buy net Avoided accountable credits without no credits deforestation Proposal emissions, cap tradable Implications Conservation of Zero, no net C existing C stocks accountable no relevance no credits stock change in the biosphere

Biosphere in future climate regimes

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