Transcript No Slide Title

Ways and Means for Achieving
Climate Change Mitigation
Jayant Sathaye
CLA, WGIII
Lawrence Berkeley National Laboratory,
Berkeley, CA, USA
18 July 2001
Key Messages
• Many barriers prevent the realization of the
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potentials noted earlier.
Identification of barriers can help in the
development of sharper and targeted
policies, measures, and instruments.
Cost of barrier removal increases estimated
bottom-up costs.
Explicit consideration of barriers and the
no regret opportunities linked to them can
reduce top-down cost estimates.
2010 Mitigation Potential
(under $100 per t C)
• Energy and other technological
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options
– 1.9 -- 2.6 Gt C/yr
Land use, land-use change and
forestry
– about 1 Gt C/yr
Opportunities and Barriers
Realizing these Potentials Requires
Overcoming Many Barriers to their
Implementation
• Barriers add to the cost of implementation,
and reduce the realizable potential
• Removal of barriers during capital stock
turnover and periods of rapid social change
can minimize disruption and mitigation
costs
Opportunities and Barriers -A Classification
Mititgation Potential
Physical potential
Knowledge gap
High costs
Technological
potential
Values, attitudes,
social barriers
Socio-economic
potential
Market failures
Economic potential
Market (Achievable)
potential
Time
Market and Institutional Barriers
(Market Failures) to
Achieving Economic Potential:
Examples
• Lack of information
• Lack of access to capital, especially for
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smaller firms
Absence of full-cost pricing
Risk aversion in financial institutions,
including Multilateral Development Banks
Trade barriers, such as tariffs or export
restrictions
Social and Cultural Barriers to
Achieving Socioeconomic Potential:
Examples
• Individual behavior
• Social values and preferences
• Cultural traits and norms
• Gender issues
Mitigation Opportunities for a Given
Country May be Found in the Removal
of Any Combination of Barriers
• Most countries could benefit from innovative
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financing, institutional reform and removing
barriers to trade.
Developed countries: Removing social and
behavioral barriers.
Economies in transition: Price rationalization
Developing countries: Price rationalization,
increased access to data and information,
availability of advanced technologies, financial
resources, and training and capacity building.
Policies, Measures and
Instruments: Sectoral Level
• Market based instruments (taxes, tradable
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permits, subsidies, deposit/refund systems)
Standards, product bans, energy mix
requirements
Voluntary agreements
Information, and labeling programs
Government investment/ R&D spending
Sectoral PMIs Only As Effective As Allowed
by Macro Conditions
Policies, Measures and Instruments
International and Macro Levels
• Macro policies -- Examples
– Reform of the legal system
– Create open and competitive markets
– Develop physical and communications
infrastructure
– Improve land tenure
– Improve macro-economic stability
• International co-ordination can address
competitiveness, international trade rules,
and “leakage”
Conclusions
• Importance of barriers differs by region and
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sector
Setting appropriate macro-conditions can
contribute more to mitigation than improving
sectoral policies, measures, and instruments
Cost of barrier removal increases bottom-up
mitigation cost estimates, and can reduce topdown cost estimates
IPCC review shows a major gap in research
– Few studies explicitly identify barriers and ways
to overcome them, and estimate the cost of their
removal