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1.
ABSTRACT

Forest and agricultural sector response to comprehensive climate policy is well represented in the literature. Less analysis has been devoted to piecemeal solutions. We use the Forest and Agriculture Sector Optimization Model with Greenhouse Gases (FASOMGHG) to project the individual and combined effect of three existing U.S. Department of Agriculture programmes with potential to increase greenhouse gas (GHG) mitigation. We find that a combined policy scenario may achieve greater mitigation than individual constituent programmes, suggesting the possibility of complementary spillover effects in some periods. Mitigation varies over time, however, and some periods experience net emissions as markets and management practices respond to initial policy shocks. The regional distribution of GHG mitigation also varies between policy scenario. Differences in the magnitude and imputed cost of mitigation under each scenario, generating negative values for some programmes and time periods, reinforces the need to evaluate portfolio design to cost-effectively achieve near-term GHG mitigation.

Key policy insights
  • Increased near-term GHG mitigation in the forest and agriculture sectors in the US may be possible by expanding or refocusing the emphasis of existing programmes.

  • Implementing several such forest and agricultural programmes simultaneously may lead to greater GHG mitigation than when implemented separately, indicating the possibility of positive spillover effects.

  • Programmes targeted to agricultural management may hold outsized potential to achieve near-term GHG mitigation; Policies aimed at influencing land use conversion appear to be more vulnerable to reversion and subject to larger inter-annual swings.

  • The staged implementation of programmes could also be useful, helping to encourage increased mitigation (or the retention of already achieved mitigation) over time as markets re-equilibrate to initial shocks.

  • Though the particular scenarios assessed here are unique to the US, our findings may be applicable to other locations outside the US where land management is influenced by individual market actors and there is competition between forest and agricultural land uses.

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2.
Globally, adaptation policies and programmes are being formulated to address climate change issues. However, in the agricultural sector, and particularly in least developed countries (LDCs), concerns remain as to whether these policies and programmes are consistent with farmers’ preferences. This study empirically investigates Nepalese farmers’ willingness to support the implementation of adaptation programmes. To this end, we first developed suggested adaptation programmes in accordance with the adaptation measures identified by LDCs in their National Adaptation Programmes of Actions. We then employed a choice experiment framework to estimate farmers’ willingness to pay (WTP) for adaptation benefits. The findings indicate that the substantial benefits of the adaptation programmes for farmers result in a sizeable WTP to participate, which would appear to justify the programmes’ widespread implementation.

Key policy insights

  • Farmers are willing to participate in, and contribute to, the suggested adaptation programmes in the form of increased access to climate adaptive crop species and varieties, improved soil quality and irrigation and the provision of training in climate adaptive farming.

  • Key socio-economic factors influence farmers’ support of adaptation programmes. Older farmers, those households closer to government extension services, larger land holders, those involved in household labour exchange, farmers located in drought and flood-prone regions and those who perceive that the climate has changed are more likely to participate.

  • The more farmers are aware of climate change impacts, the greater their preference for adaptation programmes. Increasing farmer awareness prior to implementation of such programmes is therefore an obvious means of further raising participation rates.

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3.
Food-insecure households in many countries depend on international aid to alleviate acute shocks and chronic shortages. Some food security programmes (including Ethiopia’s Productive Safety Net Program–PSNP – which provides a case study for this article) have integrated aid in exchange for labour on public works to reduce long-term dependence by investing in the productive capacity and resilience of communities. Using this approach, Ethiopia has embarked upon an ambitious national programme of land restoration and sustainable land management. Although the intent was to reduce poverty, here we show that an unintended co-benefit is the climate-change mitigation from reduced greenhouse gas (GHG) emissions and increased landscape carbon stocks. The article first shows that the total reduction in net GHG emissions from PSNP’s land management at the national scale is estimated at 3.4 million?Mg?CO2e?y?1 – approximately 1.5% of the emissions reductions in Ethiopia’s Nationally Determined Contribution for the Paris Agreement. The article then explores some of the opportunities and constraints to scaling up of this impact.

Key policy insights
  • Food security programmes (FSPs) can contribute to climate change mitigation by creating a vehicle for investment in land and ecosystem restoration.

  • Maximizing mitigation, while enhancing but not compromising food security, requires that climate projections, and mitigation and adaptation responses should be mainstreamed into planning and implementation of FSPs at all levels.

  • Cross-cutting oversight is required to integrate land restoration, climate policy, food security and disaster risk management into a coherent policy framework.

  • Institutional barriers to optimal implementation should be addressed, such as incentive mechanisms that reward effort rather than results, and lack of centralized monitoring and evaluation of impacts on the physical environment.

  • Project implementation can often be improved by adopting best management practices, such as using productive living livestock barriers where possible, and increasing the integration of agroforestry and non-timber forest products into landscape regeneration.

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4.
Climate policy uncertainty significantly hinders investments in low-carbon technologies, and the global community is behind schedule to curb carbon emissions. Strong actions will be necessary to limit the increase in global temperatures, and continued delays create risks of escalating climate change damages and future policy costs. These risks are system-wide, long-term and large-scale and thus hard to diversify across firms. Because of its unique scale, cost structure and near-term availability, Reducing Emissions from Deforestation and forest Degradation in developing countries (REDD+) has significant potential to help manage climate policy risks and facilitate the transition to lower greenhouse gas emissions. ‘Call’ options contracts in the form of the right but not the obligation to buy high-quality emissions reduction credits from jurisdictional REDD+ programmes at a predetermined price per ton of CO2 could help unlock this potential despite the current lack of carbon markets that accept REDD+ for compliance. This approach could provide a globally important cost-containment mechanism and insurance for firms against higher future carbon prices, while channelling finance to avoid deforestation until policy uncertainties decline and carbon markets scale up.

Key policy insights

  • Climate policy uncertainty discourages abatement investments, exposing firms to an escalating systemic risk of future rapid increases in emission control expenditures.

  • This situation poses a risk of an abatement ‘short squeeze,’ paralleling the case in financial markets when prices jump sharply as investors rush to square accounts on an investment they have sold ‘short’, one they have bet against and promised to repay later in anticipation of falling prices.

  • There is likely to be a willingness to pay for mechanisms that hedge the risks of abruptly rising carbon prices, in particular for ‘call’ options, the right but not the obligation to buy high-quality emissions reduction credits at a predetermined price, due to the significantly lower upfront capital expenditure compared to other hedging alternatives.

  • Establishing rules as soon as possible for compliance market acceptance of high-quality emissions reductions credits from REDD+ would facilitate REDD+ transactions, including via options-based contracts, which could help fill the gap of uncertain climate policies in the short and medium term.

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5.
Current country-level commitments under the Paris Agreement fall short of putting the world on a required trajectory to stay below a 2°C temperature increase compared to pre-industrial levels by the end of the century. Therefore, the timing of increased ambition is hugely important and as such this paper analyses the impact of both the short and long-term goals of the Paris Agreement on global emissions and economic growth. Using the hybrid TIAM-UCL-MSA model we consider the achievement of a 2°C target against a baseline of the Nationally Determined Contributions (NDCs) while also considering the timing of increased ambition of the NDCs by 2030 and the impacts of cost reductions of key low-carbon technologies. We find that the rate of emissions reduction ambition required between 2030 and 2050 is almost double when the NDCs are achieved but not ratcheted up until 2030, and leads to lower levels of economic growth throughout the rest of the century. However, if action is taken immediately and is accompanied by increasingly rapid low-carbon technology cost reductions, then there is almost no difference in GDP compared to the path suggested by the current NDC commitments.

Key policy insights

  • Delaying the additional action needed to achieve the 2°C target until 2030 is shown to require twice the rate of emissions reductions between 2030 and 2050.

  • Total cumulative GDP over the century is lower when additional action is delayed to 2030 and therefore has an overall negative impact on the economy, even without including climate change damages.

  • Increased ratcheting of the NDC commitments should therefore be undertaken sooner rather than later, starting in conjunction with the 2023 Global Stocktake.

  • Early action combined with cost reductions in key renewable energy technologies can reduce GDP losses to minimal levels (<1%).

  • A 2°C future with technological advancements is clearly possible for a similar cost as a 3.3°C world without these advances, but with lower damages and losses from climate change.

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6.
Coral reefs are highly vulnerable to the impacts of rising marine temperatures and marine heatwaves. Mitigating dangerous climate change is essential and urgent, but many reef systems are already suffering on current levels of warming. Geoengineering options are worth exploring to protect the Great Barrier Reef (GBR) from extreme warming conditions, but we contend that they require strong governance and public consultation from the outset. Australian governments are currently funding feasibility testing of three geoengineering proposals for the GBR. Each proposal involves manipulating ocean or atmospheric conditions to lower water temperatures and thereby reduce the threat of mass coral bleaching events. Innovative strategies to protect the GBR and field testing of these is essential, but current laws do not guarantee robust governance for field testing of these technologies. Nor do they provide the foundation for a more coherent national policy on climate intervention technologies more generally. Responsible governance frameworks, including detailed risk assessment and early public consultation, are necessary for geoengineering research to build legitimacy and promote scientific progress.

Key policy insights

  • Marine heatwaves pose a serious threat to coral reefs, including Australia’s iconic Great Barrier Reef.

  • Australian governments have recognized the threats of warming waters, and are funding research of geoengineering options for the Great Barrier Reef.

  • The limited earlier field testing of geoengineering demonstrates the need for specific governance to manage risks, build legitimacy and maintain public support.

  • Australia requires a framework to govern geoengineering research and development before deployment of such technologies.

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7.
Studies show that the ‘well below 2°C’ target from the Paris Agreement will be hard to meet without large negative emissions from mid-century onwards, which means removing CO2 from the atmosphere and storing the carbon dioxide in biomass, soil, suitable geological formations, deep ocean sediments, or chemically bound to certain minerals. Biomass energy combined with Carbon Capture and Storage (BECCS) is the negative emission technology (NET) given most attention in a number of integrated assessment model studies and in the latest IPCC reports. However, less attention has been given to governance aspects of NETs. This study aims to identify pragmatic ways forward for BECCS, through synthesizing the literature relevant to accounting and rewarding BECCS, and its relation to the Paris Agreement. BECCS is divided into its two elements: biomass and CCS. Calculating net negative emissions requires accounting for sustainability and resource use related to biomass energy production, processing and use, and interactions with the global carbon cycle. Accounting for the CCS element of BECCS foremost relates to the carbon dioxide capture rate and safe underground storage. Rewarding BECCS as a NET depends on the efficiency of biomass production, transport and processing for energy use, global carbon cycle feedbacks, and safe storage of carbon dioxide, which together determine net carbon dioxide removal from the atmosphere. Sustainable biomass production is essential, especially with regard to trade-offs with competing land use. Negative emissions have an added value compared to avoided emissions, which should be reflected in the price of negative emission ‘credits’, but must be discounted due to global carbon cycle feedbacks. BECCS development will depend on linkages to carbon trading mechanisms and biomass trading.

Key policy insights

  • A standardized framework for sustainable biomass should be adopted.

  • Countries should agree on a standardized framework for accounting and rewarding BECCS and other negative emission technologies.

  • Early government support is indispensable to enable BECCS development, scale-up and business engagement.

  • BECCS projects should be designed to maximize learning across various applications and across other NETs.

  • BECCS development should be aligned with modalities of the Paris Agreement and market mechanisms.

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8.
Deliberation over how to adapt to short or long-term impacts of climate change takes place in a complex political setting, where actors’ interests and priorities shape the temporal dimension of adaptation plans, policies and actions. As actors interact to pursue their individual or collective interests, these struggles turn into dynamic power interplay. In this article, we aim to show how power interplay shapes local adaptation plans of action (LAPAs) in Nepal to be short-term and reactive. We use an interactional framing approach through interaction analyses and observations to analyse how actors use material and ideational resources to pursue their interests. Material and ideational resources that an actor deploys include political authority, knowledge of adaptation science and national/local policy-making processes, financial resources and strong relations with international non-governmental organizations and donor agencies. We find that facilitators and local politicians have a very prominent role in meetings relating to LAPAs, resulting in short-termism of LAPAs. Findings suggest that there is also a lack of female participation contributing to short-term orientated plans. We conclude that such power interplay analysis can help to investigate how decision making on the temporal aspects of climate adaptation policy takes place at the local level.

Key policy insights

  • Short-termism of LAPAs is attributed to the power interplay between actors during the policy design process.

  • Improved participation of the most vulnerable, especially women, can lead to the preparation of adaptation plans and strategies focusing on both the short and long-term.

  • It is pertinent to consider power interplay in the design and planning of adaptation policy in order to create a level-playing field between actors for inclusive decision-making.

  • Analysis of dynamic power interplay can help in investigating climate change adaptation controversies that are marked by uncertainties and ambiguities.

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9.
Abstract

Radiative measurements were carried out continuously during a cruise from Australia to Antarctica during austral summer 1995/96. Both shortwave and longwave radiative fluxes were measured. Some of the results are:
  • The incoming solar radiation had a mean value of 217 W m–2; this was a relatively weak value due to the large amount of fractional cloud cover observed. The sun was, for a large part of the trip, above the horizon for 24 hours a day.

  • The reflectivity varied widely, not only as a function of sea‐ice concentration, but also as a function of ice type.

  • Snow covered pack ice gave the highest albedo values (<70%), while flooded sea ice and thin ice reflected much less (<30%).

  • For each sea‐ice type, short term observations showed a good relationship between albedo and ice concentration.

  • The albedo increased with decreasing solar elevation.

  • The net longwave radiation was negative (mean –27 W m–2); this small absolute value is due to a high amount of fractional cloud cover. There was a weak diurnal variation with a maximum loss (–33 W m–2) in the early afternoon.

  • On the average, the net radiation was positive for 17 hours, and negative for 7 hours a day. However, the duration of a positive balance depended strongly on the surface albedo.

  • For the observed albedo values, modelling results showed that the net radiation was always positive when averaged over a day. The magnitude, however, depended strongly on the surface albedo, varying by more than the factor of three.

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10.
Since the UK introduced a Climate Change Act (CCA) in 2008, similar legislation has followed in a number of states, with each having a slightly different take. What unites these examples is that they all represent framework legislation that aims to facilitate climate change mitigation by creating continuous policy processes whereby mechanisms for the reduction of greenhouse gas (GHG) emissions are developed and implemented. This article is concerned with the extent to which they are living policy processes or rather symbolic gestures. We analyse seven European CCAs with regard to GHG emission reduction targets, planning/implementation mechanisms, and feedback/evaluations prescribed by the laws. These three features correspond with three aspects of climate policy integration (CPI): interpretations of CPI as a norm; CPI as a process of governing; CPI as a policy outcome. We show that CCAs address all three aspects of CPI and constitute living policy processes, although to varying extents. However, CCAs are also policy processes in that they are part of a political system, affected by political forces external to the legislation, positively and negatively.

Key policy insights

  • CCAs can provide a normative basis for policymaking on climate change at the national level, especially through quantitative emission reduction targets.

  • Whilst CCAs can bring some stability and predictability to policymaking on climate change (mainly because legislation is more difficult to amend or remove than policy strategies), they are still vulnerable to political developments.

  • Most CCAs lack either short/medium-term (Denmark, Finland, Ireland, Sweden) or long-term (Austria) targets. Given EU Member States’ aim to decarbonise in the next three decades and the Paris Agreement's global goal of pursuing efforts to limit warming to 1.5°C, states need to find ways to guide this process. One approach could be the inclusion of short-term, medium-term and long-term targets in their CCAs.

  • Since sanctioning mechanisms are lacking across all the CCAs analysed here, it is not clear what will happen if legally binding targets are not met. Just as it is difficult to imagine speed limits and speed cameras without accompanying penalties, it is hard to imagine how CCAs without sanctions can deliver decarbonization.

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11.
We live in a rapidly advancing digital information age where the ability to discover, access and utilize high-quality information in a reliable and timely manner is often assumed to be the norm. However, this is not always the experience of researchers, practitioners and decision makers responding to the challenges of a rapidly changing climate, despite the billions now being made available for investment in climate change adaptation initiatives throughout the world and particularly in developing countries. In recognition of the importance of information in adaptation planning, Article 7.7 of the Paris Agreement sets out clear guidance for parties to develop, share, manage and deliver climate change knowledge, information and data as a means to strengthening cooperation and action on adaptation. This article provides some key lessons and insights on climate change information and knowledge management (IKM) in small island developing States (SIDS) from the perspective of Pacific SIDS. A situation analysis of current climate change IKM practices in Fiji, Tonga and Vanuatu was conducted and key barriers to effective climate change IKM identified. The outcome of this article is a range of pragmatic policy considerations for overcoming common barriers to climate change IKM in the Pacific, which may be of value to SIDS more widely.

Key policy insights

  • The partnership approach of co-investigating climate change IKM barriers in collaboration with Pacific SIDS generated considerable trust, a shared purpose and therefore rich IKM lessons and insights.

  • Turning climate change IKM aspirations into practice is significantly more complicated than expected, and requires a long-term commitment from both national governments and development partners.

  • Pacific SIDS need to establish national guiding climate change IKM Frameworks that leverage rather than duplicate growing national investments in whole-of-government IKM.

  • Reframing climate change IKM in the Pacific towards demand and user needs will be critical to ensuring widespread ownership and participation in IKM solutions that lead to greater adaptation and resilience outcomes.

  • It is also critical that IKM activities in SIDS support the development of national capacity to scope, develop, deploy and maintain decision support systems.

  • Federated IKM systems are ideal for encouraging greater IKM collaboration.

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12.
ABSTRACT

The Paris Agreement requires mitigation contributions from all Parties. Therefore, the determination of additionality of activities under the market mechanisms of its Article 6 will need to be revisited. This paper provides recommendations on how to operationalize additionality under Article 6. We first review generic definitions of additionality and current approaches for testing of additionality before discussing under which conditions additionality testing of specific activities or policies is still necessary under the new context of the Paris Agreement, that is, in order to prevent increases of global emissions. We argue that the possibility of ‘hot air’ generation under nationally-determined contributions (NDCs) requires an independent check of the NDC’s ambition. If the NDC of the transferring country does contain ‘hot air’, or if the transferred emission reductions are not covered by the NDC, a dedicated additionality test should be required. While additionality tests of projects and programmes could continue to be done through investment analysis, for policy instruments new approaches are required. They should be differentiated according to type of policy instrument. For regulation, we suggest calculating the resulting pay-back period for technology users. If the regulation generates investments exceeding a payback period threshold, it could be deemed additional. Similarly, carbon pricing policies that generate a carbon price exceeding a threshold could qualify; for trading schemes an absence of over-allocation needs to be shown. The threshold should be differentiated according to country categories and rise over time.

Key policy insights
  • Without additionality testing, market mechanisms under the Paris Agreements might lead to an international diffusion of ‘hot air’. To avoid this, an independent assessment of NDC ambition is in order. Otherwise, activities under the mechanisms need to undergo specific additionality tests.

  • Additionality testing of projects and programmes should build on the experience developed under the Kyoto Protocol mechanisms.

  • Bold approaches are needed for assessing additionality of policies. To avoid cumbersome assessment of all activities triggered by such policies, highly aggregated approaches are suggested, ranging from payback period thresholds for technologies mandated by regulation to minimum price levels triggered by carbon pricing policies. Over time, the stringency of threshold values should increase.

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13.
The recent change in US presidential administrations has introduced significant uncertainty about both domestic and international policy support for continued reductions in GHG emissions. This brief analysis estimates the potential climate ramifications of changing US leadership, contrasting the Mid-Century Strategy for Deep Decarbonization (MCS) released under the Obama Administration, with campaign statements, early executive actions, and prevailing market conditions to estimate potential emission pathways under the Trump Administration. The analysis highlights areas where GHG reductions are less robust to changing policy conditions, and offers brief recommendations for addressing emissions in the interim. It specifically finds that continued reductions in the electricity sector are less vulnerable to changes in federal policy than those in the built environment and land use sectors. Given the long-lived nature of investments in these latter two sectors, however, opportunities for near-term climate action by willing cities, states, private landowners, and non-profit organizations warrant renewed attention in this time of climate uncertainty.

Key policy insights

  • The recent US presidential election has already impacted mitigation goals and practices, injecting considerable uncertainty into domestic and international efforts to address climate change.

  • A strategic assessment issued in the final days of the Obama Administration for how to reach long-term climate mitigation objectives provides a baseline from which to gauge potential changes under the Trump Administration.

  • Though market trends may continue to foster emission declines in the energy sector, emission reductions in the land use sector and the built environment are subject to considerable uncertainty.

  • Regardless of actions to scale back climate mitigation efforts, US emissions are likely to be flat in the coming years. Assuming that emissions remain constant under President Trump and that reductions resume afterwards to meet the Obama Administration mid-century targets in 2050, this near-term pause in reductions yields a difference in total emissions equivalent to 0.3–0.6 years of additional global greenhouse gas emissions, depending on the number of terms served by a Trump Administration.

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14.
Stable forests – those not already significantly disturbed nor facing predictable near-future risks of anthropogenic disturbance – may play a large role in the climate solution, due to their carbon sequestration and storage capabilities. Their importance is recognized by the Paris Agreement, but stable forests have received comparatively little attention through existing forest protection mechanisms and finance. Instead, emphasis has been placed on targeting locations where deforestation and forest degradation are happening actively. Yet stopping deforestation and forest degradation does not guarantee durable success, especially outside the geographic scope of targeted efforts. As a result, today’s stable forests may be at risk without additional efforts to secure their long-term conservation.

We synthesize the gaps in existing policy efforts that could address the climate-related benefits derived from stable forests, noting several barriers to action, such as uncertainty around the level of climate services that stable forests provide and difficulties describing the real level of threat posed. We argue that resource and finance allocation for stable forests should be incorporated into countries’ and donors’ comprehensive portfolios aimed at tackling deforestation and forest degradation as well as resulting emissions. A holistic and forward-looking approach will be particularly important, given that success in tackling deforestation and forest degradation where it is currently happening will need to be sustained in the long term.

Key policy insights

  • Climate policies, finance, and implementation have tended to focus on areas of recent forest loss and near-term threats of anthropogenic disturbance, resulting in an imbalance of effort that fails to adequately address stable forests.

  • In some contexts, policy measuresintended to secure the climate-related benefits of stable forests have competed poorly against more urgent threats. Policymakers and finance mechanisms should view stable forests as a complementary element within a holistic, long-term approach to resource management.

  • International mechanisms and national frameworks should be adjusted and resourced to promote the long-term sustainability and permanence of stable forests.

  • Beyond additional resources, the climate benefits of stable forests may be best secured by pro-actively designing implementing policies that recognize the rights and interests of stakeholders who are affected by land management decisions.

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15.
Changes in labour productivity feed through directly to national income. An external shock, like climate change, which may substantially reduce the productivity of workers is therefore a macroeconomic concern. The biophysical impact of higher temperatures on human performance is well documented. Less well understood are the wider effects of higher temperatures on the aggregate productivity of modern, diversified economies, where economic output is produced in contexts ranging from outdoor agriculture to work in air-conditioned buildings. Working conditions are at least to some extent the result of societal choices, which means that the labour productivity effects of heat can be alleviated through careful adaptation. A range of technical, regulatory/infrastructural and behavioural options are available to individuals, businesses and governments. The importance of local contexts prevents a general ranking of the available measures, but many appear cost-effective. Promising options include the optimization of working hours and passive cooling mechanisms. Climate-smart urban planning and adjustments to building design are most suitable to respond to high base temperature, while air conditioning can respond flexibly to short temperature peaks if there is sufficient cheap, reliable and clean electricity.

Key policy insights

  • The effect of heat stress on labour productivity is a key economic impact of climate change, which could affect national output and workers’ income.

  • Effective adaptation options exist, such as shifting working hours and cool roofs, but they require policy intervention and forward planning.

  • Strategic interventions, such as climate-smart municipal design, are as important as reactive or project-level adaptations.

  • Adaptation solutions to heat stress are highly context specific and need to be assessed accordingly. For example, shifting working hours could be an effective way of reducing the effect of peak temperatures, but only if there is sufficient flexibility in working patterns.

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16.
States will disagree about deployment of solar geoengineering, technologies that would reflect a small portion of incoming sunlight to reduce risks of climate change, and most disagreements will be grounded in conflicting interests. States that object to deployment will have many options to oppose it, so states favouring deployment will have a powerful incentive to meet their objections. Objections rooted in opposition to the anticipated unequal consequences of deployment may be met through compensation, yet climate policy is inhospitable to compensation via liability. We propose that multilateral parametric climate risk insurance might be a useful tool to facilitate agreement on solar geoengineering deployment. With parametric insurance, predetermined payouts are triggered when climate indices deviate from set ranges. We suggest that states favouring deployment could underwrite reduced-rate parametric climate insurance. This mechanism would be particularly suited to resolving disagreements based on divergent judgments about the outcomes of proposed implementation. This would be especially relevant in cases where disagreements are rooted in varying levels of trust in climate model predictions of solar geoengineering effectiveness and risks. Negotiations over the pricing and terms of a parametric risk pool would make divergent judgments explicit and quantitative. Reduced-rate insurance would provide a way for states that favour implementation to demonstrate their confidence in solar geoengineering by underwriting risk transfer and ensuring compensation without the need for attribution. This would offer a powerful incentive for states opposing implementation to moderate their opposition.

Key policy insights

  • States favouring deployment of solar geoengineering will need to address other states’ objections—unilateralism is implausible in practice

  • This might be partially achieved using parametric climate risk insurance based on objective indicators

  • A sovereign risk pool offering reduced-rate parametric insurance underwritten by states backing deployment could facilitate cooperation on solar geoengineering deployment

  • States favouring deployment would demonstrate their confidence in solar geoengineering by supporting the risk pool

  • Opposing states would be insured against solar geoengineering risks and proposing states would be incentivized to guard against overconfidence

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17.
Brianna Craft 《Climate Policy》2018,18(9):1203-1209
The Paris Agreement establishes a global goal on adaptation which will be assessed through the global stocktake, the first attempt by the international climate change regime to measure collective progress on adaptation. This policy analysis identifies four main challenges to designing a meaningful assessment. These are: designing a system that can aggregate results; managing the dual mandate of reviewing collective progress and informing the enhancement of national level actions; methodological challenges in adaptation; and political challenges around measurement. We propose a mixed-methods approach to addressing these challenges, combining short-term needs for reporting with longer-term aims of enhancing national adaptation actions.

Key policy insights

  • Broad domains of adaptation activity could be identified within each of the objectives of the adaptation goal and progress could be measured and aggregated through simple scorecards.

  • The goal should have both process and outcome indicators as well as some narrative linking activities to outcomes over time.

  • Reporting could be a compilation of national data using qualitative and quantitative sources, aligning with the global stocktake’s aim of enhancing national actions over time and reducing immediate reporting burdens.

  • There would be a complementary role at least in the short term for an expert assessment of priority areas.

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18.
Environmental policies may have important consequences for firms’ competitiveness or profitability. For the European Union Emissions Trading System (EU ETS) the empirical literature documents that significant emissions reductions have resulted from it. Surprisingly, however, the literature shows that there have been hardly any concurrent negative effects on firms’ competitiveness during the first two phases of the scheme (2005–2012). We show that the main explanations for the absence of negative impacts on competitiveness are a large over-allocation of emissions allowances leading to a price drop and the ability of firms to pass costs onto consumers in some sectors. Cost pass-through combined with free allocation, in turn, partly generated windfall profits. In addition, the relatively low importance of energy costs indicated by their average share in the budgets of most manufacturing industries may have limited the impact of the EU ETS. Finally, small but significant stimulating effects on innovation have been found so far. Several factors suggest that over-allocation is likely to remain substantial in the upcoming periods of the scheme. Therefore, we expect to see no negative competitiveness effects from the EU ETS in Phases III and IV (2013–2030).

Key policy insights

  • Empirical literature on the EU ETS shows that there have been hardly any effects on firms’ competitiveness or profitability.

  • One main explanation is a large over-allocation of emissions allowances leading to a price drop. This reduced incentives for innovation.

  • Moreover, firms were able to pass costs on to consumers in some sectors which partly generated windfall profits.

  • Innovation effects have so far been small but positive.

  • We expect to see no negative competitiveness effects on regulated firms in the near future suggesting that no further reliefs for regulated firms are required.

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19.
ABSTRACT

Based on research into multiple types of climate change mitigation and adaptation (CCMA) projects and policies in Cambodia, this paper documents intersecting social and environmental conflicts that bear striking resemblance to well-documented issues in the history of development projects. Using data from three case studies, we highlight the ways that industrial development and CCMA initiatives are intertwined in both policy and project creation, and how this confluence is creating potentials for maladaptive outcomes. Each case study involves partnerships between international institutions and the national government, each deploys CCMA as either a primary or supporting legitimation, and each failed to adhere to institutional and/or internationally recognized standards of justice. In Cambodia, mismanaged projects are typically blamed on the kleptocratic and patrimonial governance system. We show how such blame obscures the collusion of international partners, who also sidestep their own safeguards, and ignores the potential for maladaptation at the project level and the adverse social and environmental impacts of the policies themselves.

Key policy insights
  • Initiatives to mitigate or adapt to climate change look very much like the development projects that caused climate change: Extreme caution must be exercised to ensure policies and projects do not exacerbate the conditions driving climate change.

  • Safeguards ‘on paper’ are insufficient to avoid negative impacts and strict accountability mechanisms must be put in place.

  • Academic researchers can be part of that accountability mechanism through case study reports, policy briefs, technical facilitation to help ensure community needs are met and safeguards are executed as written.

  • Impacts beyond the project scale must be assessed to avoid negative consequences for social and ecological systems at the landscape level.

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20.
With poverty alleviation and sustainable development as key imperatives for a developing economy like India, what drives the resource-constrained state governments to prioritize actions that address climate change impacts? We examine this question and argue that without access to additional earmarked financial resources, climate action would get overshadowed by developmental priorities and effective mainstreaming might not be possible. A systematic literature review was carried out to draw insights from the current state of implementation of adaptation projects, programmes and schemes at the subnational levels, along with barriers to mainstreaming climate change adaptation. The findings from a literature review were supplemented with lessons emerging from the implementation of India’s National Adaptation Fund on Climate Change (NAFCC). The results of this study underscore the scheme’s relevance.

Key policy insights
  • Experience with NAFCC implementation reveals that states require sustained ‘handholding’ in terms of financial, technical and capacity support until climate change issues are fully understood and embedded in the policy landscape.

  • Domestic sources of finance are critically important in the absence of predictable and adequate adaptation finance from international sources.

  • The dedicated window for climate finance fosters a spirit of competitive federalism among states and encourages enhanced climate action.

  • Enhanced budgetary allocation to NAFCC to strengthen the state-level adaptation response and create capacity to mainstream climate change concerns in state planning frames, is urgently needed.

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