The science economics equity and politics of global warming

The science, economics, equity and politics of global warming Bob Watson Fleagle Lecture University of Washington Seattle May 1, 2007 a The science is robust Don’t expect the problem to go away Climate Change • Climate change is both a development and global environmental issue, which undermines: • environmental sustainability • poverty alleviation and the livelihoods of the poor • human health • personal, national and regional security • Climate change is an inter- and intra-generational equity issue: • developing countries and poor people in developing countries are the most vulnerable • the actions of today will affect future generations because of the long life-times of the greenhouse gases and the inertia within the climate system Climate Change Resilient Development  Climate change resilient development requires implementation of cost-effective mitigation and adaptation strategies It requires integrating considerations of current climate variability and projected changes in climate in sector and national economic planning – project and policy design While there is a need to minimize the emissions of greenhouse gases, it must be recognized that access to affordable energy in developing countries is a prerequisite condition for poverty alleviation and sustainable economic growth –therefore, the challenge is to develop and utilize cost-effective lowcarbon energy technologies (production and use)   Climate Change • The composition of the atmosphere, and the Earth’s climate has changed, mostly due to human activities (highly certain), and is projected to continue to change, globally and regionally: Increased greenhouse gases and aerosols Warmer temperatures Changing precipitation patterns – spatially and temporally Higher sea levels – higher storm surges Retreating mountain glaciers Melting of the Greenland ice cap Reduced arctic sea ice More frequent extreme weather events • heat waves, floods and droughts • More intense cyclonic events, e,g., hurricanes in the Atlantic • • • • • • • • Temperature Records (Deviation from 1951- 1980 mean) Source: NASA Goddard Institute for Space Studies Surface Temperature Analysis at data.giss.nasa.gov/gistemp/ Ice Melt in Greenland Source: http://cires.colorado.edu/science/groups/steffen/greenland/melt2005/ Andean Glaciers Source: http://news.bbc.co.uk/1/shared/spl/hi/picture_gallery/05/sci_nat_how_the_world_is_changing/html/1.stm Hurricane Trends Source: Webster et al, SCIENCE 16 September 2005 Observed temperature change over North America, Asia and Europe and model simulation with natural and man-made factors Temperature change C 1.0 North America Asia Europe 0.5 0 -0.5 1900 2000 1900 Natural factors 2000 Natural + man observations The Global Climate of the 21st Century …and temperature Source: IPCC, Climate Change, 2001 Some Areas are Projected to Become Wetter, Others Drier Annual Mean Precipitation Change: 2071 to 2100 Relative to 1990 Recent Concerns  Compared to the IPCC TAR, there is greater clarity and reduced uncertainty about the impacts of climate change A number of increased concerns have arisen: • Increased oceanic acidity likely to reduce the oceans capacity to absorb carbon dioxide and effect the entire marine food chain • A regional increase of 2.7oC above present (associated with a temperature rise of about 1.5oC above today or 2oC above preindustrial level) could trigger a melting of the Greenland ice-cap • Possible destabilization of the Antarctic ice sheets becomes more likely above 3oC – the Larson B ice shelve is showing signs of instability  • The North Atlantic Thermohaline Circulation may slow down or even shut down Climate change is already affecting natural and social systems Why Climate Change is a Serious Development Issue All countries are vulnerable to climate change but the poorest countries and the poorest people within them are most vulnerable. They are the most exposed and have the least means to adapt. In this decade over 3 billion people in developing countries are likely to be affected by climate related disasters People in developing countries are affected at 20 times the rate of those in developed countries 4,000 Number affected (Millions) 3,000 Dev'ed 2,000 CIT Dev'ing LDC 1,000 - 1970s 1980s 1990s 2000s Source: World Bank analysis based on CREDA data. Climate variability is already a major impediment to development Ethiopia 25 20 15 10 5 0 0 -5 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1982 1983 1984 1985 % -20 1986 2000 -10 -15 -40 rainfall variability -20 -25 -60 -80 GDP growth Ag GDP growth -30 year Preliminary results from : A Country Water Resources Assistance Strategy for Ethiopia From Claudia Sadoff Climate Change Human-induced climate change is projected to:  Decrease water availability and water quality in many aridand semi-arid regions – increased risk of floods and droughts in many regions (the Stern Report concluded that the fraction of land in extreme drought at any one time could increase from 1% to 30%) Decrease the reliability of hydropower and biomass production in some regions Increase the incidence of vector- (e.g., malaria and dengue) and water-borne (e.g., cholera) diseases, as well as heat stress mortality, threats nutrition in developing countries, increase in extreme weather event deaths    Decrease agricultural productivity for almost any warming in the tropics and sub-tropics and adverse impacts on fisheries Adversely effect ecological systems, especially coral reefs, and exacerbate the loss of biodiversity  Changes in available water Source: Maarten de Wit and Jacek Stankiewicz, Science 31 March 2006, http://www.sciencemag.org/cgi/content/figsonly/311/5769/1917 Crop yields are projected to decrease in the tropics and sub-tropics, but increase at high latitudes Percentage change in average crop yields for a mid-range climate change scenario Even as soon as 2020 crop yields in SSA and parts of Asia are projected to decrease by up to 20% Drivers of biodiversity loss growing Consequences of Ecosystem Change for Human Well-being Climate Change and Conflict • Tens of millions of people displaced   • Food shortages where there is hunger and famine today • Water shortages in areas already with water shortages • Natural resources depleted (e.g., coral reefs, forests), loss of ecological goods and services • Increased incidence of disease • Increased incidence of severe weather events Low lying deltaic areas Small Island States Climate Change, coupled with other local and global environmental issues can lead to local and regional conflict Mitigating Climate Change The Economic and Financing Challenge What is Dangerous Anthropogenic Interference with the Climate System?  Deciding what constitutes “dangerous anthropogenic interference to the climate system” is a value judgment determined through socio-political processes informed by scientific, technical and socio-economic information  The basis for determining what constitutes “dangerous anthropogenic interference” varies by region and sector and depends upon: • the impacts of climate change, which depends on the rate and magnitude of climate change, and • adaptive and mitigative capacity Emissions Paths to Stabilization Source: Stern Review Projected Impacts of Climate Change Source: Stern Review Largest Emitters: Developed & Developing The Stabilization Triangle 14 Billion of Tons of Carbon Emitted per Year Easier CO2 target ~850 ppm 7 Historical emissions Stabilization Triangle O Flat path O Interim Goals 2.0 0 1955 2005 2055 2105 Today and for the interim goals, global per-capita emissions are ≈ 1 tC/yr. Developed Country Per capita Emissions far Exceed Developing Country Per Capita Emissions OECD and non-OECD shares 50-year view +140% +60% +60% -60% SourceI Socolow and Pacala, Scientific American, September 2006, p.56 GHG Flow Diagram: Global Emissions Source: WRI, Baumert et al, 2005 Potential technological options • Efficient production and use of energy: coal plants (e.g., repowering old inefficient plants and developing IGCC); vehicles (e.g., fuel cell cars) and reduced use of vehicles (e.g., mass transit and urban planning), buildings, and industries • Fuel shift: coal to gas • Renewable Energy and Fuels: Wind power; solar PV and solar thermal; small and large-scale hydropower; bio-energy • CO2 Capture and Storage: Capture CO2 in the production of electricity followed by geological storage (e.g., IGCC – CCS) • Nuclear fission: Nuclear power • Forests and Agricultural Soils: Reduced deforestation; reforestation; afforestation; and conservation tillage • Other GHGs: Methane, nitrous oxide, halocarbons and tropospheric ozone precursors Costs of Reducing Carbon Dioxide Emissions relative to sub-critical coal (life-cycle) US$/ t-CO2 -20 0 Supercritical Coal Geothermal Nuclear Large Hydro Biomass Steam Wind CCGT Small Hydro CCS IGCC Solar Thermal Solar PV 280 to 465 20 40 60 80 100 120 A key challenge is to reduce the cost of IGCC and CCS, which are still pre-commercial Baseline and low-carbon projected energy scenarios for non-OECD countries TWh 16000 TWh 35000 30000 25000 20000 15000 10000 5000 0 2000 2010 2020 2030 2040 2050 wind hydro nuclear gas-cs gas oil coal-cs coal 12000 8000 4000 0 -4000 -8000 -12000 -16000 2010 2020 2030 2040 2050 wind hydro nuclear gas-cs gas oil coal-cs coal Baseline Low carbon scenario CO2 would stabilize at about 450 ppm in the low carbon scenario, requiring an investment of ~$30 billion/year in electricity generation Funding for mitigation activities  Only three sources of funding for mitigation are available: (i) voluntary actions, (ii) international grants, e.g., GEF (iii) carbon trading.  Resource levels and funding strategies limit GEF’s ability to scale up market transformation and bring-down capital costs of technologies for shift to a low carbon economy - to play a significant role in transitioning the world to a low-carbon economy would require an increase in funds by a factor of ten or more  Carbon trade is likely to confer the biggest flow of funds to developing countries - between US$20 and $120 billion per year, but requires a long-term global regulatory framework (i.e., a 2050 target) with differentiated responsibilities – with intermediate targets - new business models are needed  New financial instruments are required, especially to ensure market continuity post 2012 - EU has sent a vital signal by extending the time-frame of their carbon trading system Summary of the Major Mitigation Challenges  International policy  A long-term (2030 – 2050) global regulatory framework, involving all major emitters, with an equitable allocation of responsibilities – with intermediate targets  Kyoto plus 5 years will not provide the right signals to the private sector or national governments  Expand range of eligible CDM activities, including avoided deforestation, green investment schemes, energy efficiency standards, and exploring sectoral and programmatic approach  Key challenges include engaging USA, China and India  Opposition by some OECD countries to provide financial assistance to rapidly developing countries, e.g.,China  Adoption of low-carbon technologies with an emphasis on energy efficiency, the commercialization of CCS and second generation bio-fuels • increase investment in public and private sector energy R&D Adapting to Climate Change Development Perspective on Adaptation  The risks associated with a changing and more variable climate are increasing (e.g., storms, floods, droughts), resulting in both economic losses and loss of human life Climate change is an additional risk in developing countries which are already stressed, adversely impacting on water resources, agriculture, human health, coastal zones and ecological systems Poverty reduction agenda: Failure to adapt adequately to climate variability and change is a major impediment to poverty reduction – chronic losses are as important as catastrophic losses Adaptation to climate change must be recognized as part of the development process and not separate from it– adaptation is a process A climate risk management approach: take account of the threats and opportunities arising from both current and future climate variability in project design The process must be country driven and focus on national needs and local priorities      Cost of Adaptation  Estimates of the costs of inaction cover a huge range:  $10Bs to $100Bs per year in developing countries by mid century  GDP losses range up to about 10% for developing countries for a doubling of atmospheric CO2  A preliminary assessment shows that tens of billions dollars per year of ODA & concessional finance investments are exposed to climate risks  Comprehensive project planning and additional investments to climate-proof development projects will require at least $1 billion per year  Primary public financial instruments available, which are technically adequate –but funds flowing through them need to be substantially increased  ODA – currently only a few percent directly for adaptation  GEF special funds for adaptation – rising to c. $100M pa  Adaptation Fund funded by a 2% tax on the CDM – < $100M pa  The political issue is who pays – industrialized or developing countries The Political Situation The Kyoto Protocol • All industrialized governments, except the US and Australia have ratified the Kyoto Protocol, which contains: • • • • A commitment to reduce GHG emissions, on average, by about 5% between 2008-2012 relative to 1990 The flexibility mechanisms – carbon trading Land-use, land-use change and forestry activities (limited) Funding mechanisms to assist developing countries • The US stated that the Kyoto Protocol was flawed policy because it was neither fair nor effective and not in the best interests of the US • scientific uncertainties – Article 3 (precautionary principle) • high compliance costs – inconsistent with IPCC • ineffective without the participation of the large developing countries Differentiated Obligations  It has argued by the US that the Kyoto Protocol is neither fair nor effective because developing countries are not obligated to reduce their emissions, i.e., its not in the self-interest of the US energy companies • Fairness - This is an equity issue - the Parties to the Kyoto Protocol will have to decide what is fair and equitable, recognizing that:  about 80% of the total anthropogenic emissions of greenhouse gases have been emitted from industrialized countries (US is currently about 25% of the global emissions – 36% of Annex I emissions);  per capita emissions in industrialized countries far exceed those from developing countries;  developing countries do not have the financial, technological and institutional capability of industrialized countries to address the issue; and  increased use of energy is essential for poverty alleviation • Effectiveness - Long-term stabilization of the atmospheric concentration of greenhouse gases cannot be achieved without global reductions, hence the issue is whom should do what in the short-term recognizing the long-term challenge Beyond Kyoto • Without the US taking real action to limit their GHG emissions it is doubtful that there will be a second commitment period – some OECD countries will withdraw and large developing countries, i.e., China and India will not be willing consider any commitments • Without a commitment of governments to limit GHG emissions beyond 2012 (the end of the first commitment period) the carbon market will remain soft and the private sector is unlikely to enter in a meaningful manner The real question for governments is whether to: • set an emissions target for a second commitment period (2013-2017) or whether to set a long-term stabilization target for climate change (e.g., 2oC above the preindustrial level) or some other long-term framework – a long-term target is needed to send the appropriate signal to the private sector and the carbon market • this would require a global emissions target – the challenge would be to agree on intermediate emissions targets and an equitable allocation of emissions rights • US Situation  No meaningful action by US Administration Bipartisan draft legislation in Congress – House and Senate State action – California and NE States    Evangelicals promoting action Most Presidential candidates pro-action Major multi-national companies adopting voluntary targets Movement in the right direction, but a long way to go   Overall Conclusions  Increased access to energy is critical for poverty alleviation and economic growth – hence a major challenge to engage China and India Climate change undermines development, environmental sustainability and the Millennium Development Goals There are cost-effective and equitable solutions, but political will and moral leadership is needed The future is in our hands - we can limit changes in the Earth’s climate, but the changes in policies, practices and technologies required are substantial and not currently underway Public amd private sector decision-makers need to take a longer-term perspective Advances in science and technology are required, with the emphasis on multi-disciplinary research – S&T capacity must be strengthened in developing countries The scientific community needs to learn to communicate better with civil society, decision-makers and the media       Directions for the World