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The concept of sector 'no-lose' targets |
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Written by CEL
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Sectoral crediting mechanisms, especially sector ‘no lose’ targets have attracted considerable interest in the informal processes of the international climate negotiations for commitments after 2012. The concept of such targets is that developing countries would pledge to achieve voluntary sector “no lose” targets for certain sectors (e.g. electricity, steel, cement, transport, pulp and paper). expressed as an intensity target (e.g., CO2/ton of cement or CO2/kWh). Tradable emission reduction units would be issued for emission reductions beyond the agreed sector baseline. However, no penalty would apply in case the country failed to meet the intensity target (therefore called ‘no-lose’ target). The sectoral crediting baseline would be set at a conservative (low) level. Thus, the baseline would include national contributions or external support beyond the reference scenario (See Figure). It is the prospective revenue from the emission credits that helps mobilise the necessary financing for the countries, and their entities, to make the climate friendly investments in technologies, systems, programmes and policies to overachieve the sector crediting baselines.
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Last Updated on Thursday, 22 July 2010 17:19 |
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Written by CEL
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With the concept of sector no-lose targets in mind, a key issue becomes how developing countries will prepare their proposals for sectoral crediting baselines so they
- can be understood by the other countries in the process;
- will be seen as a credible starting point with the right ambition level; and
- provide a means to negotiate them through analysis of specific underlying elements and drivers.
The 'Sectoral Proposal Templates' aim at facilitating this process. The concept of these templates is to systematically step through all the elements that would go into understanding what a reasonable crediting baseline might be for the sector in question. These elements obviously are of a technical, social and economic nature and are very sector and country-specific. Moreover, given that a crediting baseline is essentially a projection for a future multi-year period, it will be important to understand the current trends in emissions and associated dynamic ‘metrics’ for the sector and drivers for these trends.
By combining qualitative and quantitative information on the sector and the relevant circumstances in the country in a structured way, the template provides the maximum level of transparency necessary for the negotiation of a sectoral crediting baseline at the international level.
Although mainly directed towards the negotation of sector targets, the templates can as well be used as an input to the discussion on sectoral CDM. |
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Last Updated on Saturday, 24 July 2010 11:56 |
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Written by CEL
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Ecofys and GtripleC have developed draft 'Sectoral Proposal Templates' which have been road-tested in Mexico and China (and in the future maybe Argentina and other developing countries). The goal of this road-testing has been to improve the understanding of the concept of sectoral crediting baselines and to learn about data availability and data collection needs. A revision of the templates will take into account the lessons learned from the road-testing phase. Findings from the road-testing were frist presented at COP/MOP in Bali in December 2007 and at subsequent climate meetings and special events globally. |
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Last Updated on Saturday, 24 July 2010 12:01 |
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