Hi folks
 
The major problem with K2, apart from it's operational and strategic faults, many of which could probably be ironed out in time, is that Contraction and Convergence is the real deal. The government are basing their approach on it, the international negotiators are concentrating on it, it has the track record and the substantial benefit of being likely to work.  This makes K2 a distraction.  Someone described an analogy to me that went like: If you go fishing and get a bite on the line, you start reeling the fish in.  You don't suddenly put the rod down in order to check another line to see if the bait has been taken.  If you do, you risk losing the fish already on the hook.
 
I cannot criticise Oliver's sterling efforts to find another way that might work, but to support K2 at this time is counter-productive, and may even cost us the success in Copenhagen that all of us want so much.
 
Regards, Tom
From: Discussion list for the Crisis Forum [[log in to unmask]] On Behalf Of Oliver Tickell [[log in to unmask]]
Sent: 14 March 2009 13:17
To: [log in to unmask]
Subject: Re: [Fwd: Eliminating international competitiveness concerns in climate policy]

Hi Jim, the K2 upstream approach does not preclude democratic accountability - it just puts in place an over-arching global mechanism within which there is enormous scope for people and governments to go above and beyond. The UK could run its own carbon rationing system if it wanted to alongside, no problem. Though it's not obvious what the benefit would be.
 
Your Brent Spar example is unfortunate. The environmental hazard it posed was pretty minor and it was a clear case of campaign priorities taking over from rationality or any real sense of environmental purpose. If that is how democratisation of climate policy would look, then it will be all about misplaced priorities, poor spending decisions, and the triumph of presentation over substance.
 
Trouble about relying on ordinary citizens is that 99% of them have priorities in their lives other than climate change. Most of them think that if climate change is so important then the government should do something about it, the same way it does about other important things like health, education and defence. In these areas we do not rely on voluntarism for the simple reason you can't run schools, hospitals and the military on volunteers.
 
Cheers, Oliver, Kyoto2.

From: Discussion list for the Crisis Forum [mailto:[log in to unmask]] On Behalf Of Save our World
Sent: 08 March 2009 19:36
To: [log in to unmask]
Subject: Re: [Fwd: Eliminating international competitiveness concerns in climate policy]

Sorry to be so late catching up with this correspondence.
 
You also need to give the downside of the upstream approach, Oliver, despite your enthusiasm for it!
 
Thr huge downside consideration is lack of democratic accountability.  It is all so remote from ordinary citizens, and as has become more and more apparent with carbon trading, governments simply cannot be trusted to regulate it properly.  That is why it should be in the hands of consumers, on the same principle that we can simply refuse to accept what we do not want - which worked so well over the Brent Spar platform, and could be made to work with carbon rationing or allowances.
 
Cheers from Jim Scott
 
Visit: http//:www.save-our-world.net (global) and www.save-our-world.org.uk
Registered charity no. 1111210 in England & Wales
 
 Please note new e-mail address [log in to unmask]
----- Original Message -----
From: [log in to unmask]" href="mailto:[log in to unmask]"> Oliver Tickell
To: [log in to unmask]" href="mailto:[log in to unmask]"> [log in to unmask]
Sent: Tuesday, January 27, 2009 5:31 PM
Subject: Re: [Fwd: Eliminating international competitiveness concerns in climate policy]

To regulate GHG emissions in a clear and consistent way, there are two choices - to go to the original source of the emissions (upstream) such as fossil fuel production, or to the point of final consumption of the product or service embodying GHG emissions (downstream).
 
Philosophically both are essentially equivalent. Either way, the price ends up being paid by the consumer, either directly (downstream) or with the upstream cost passed on downstream via the supply chain.
 
The difference is that the upstream approach is quick cheap and simple to put into effect, principally by controlling fossil fuel production at or close to source, for example at oil refineries. The downstream approach involves a massive, expensive and fraud / error prone carbon accounting exercise. For this practical reason the upstream approach is by far the best option. It is also equally effective at eliminating concerns over international competitiveness, provided that the upstream controls are applied equally to all producers anywhere in the world. This is all explored in greater detail in my book Kyoto2.
 

Oliver Tickell
Kyoto2 - for an effective Climate Protocol
www.kyoto2.org/

 

From: Discussion list for the Crisis Forum [mailto:[log in to unmask]] On Behalf Of CHRIS KEENE
Sent: 27 January 2009 10:48
To: [log in to unmask]
Subject: [Fwd: Eliminating international competitiveness concerns in climate policy]



-------- Original Message --------
Subject: Eliminating international competitiveness concerns in climate policy
Date: Mon, 26 Jan 2009 10:11:56 +0100
From: Glen Peters <[log in to unmask]>
Reply-To: Glen Peters <[log in to unmask]>
To: Climate Change Info Mailing List <[log in to unmask]>


 


Eliminating international competitiveness concerns in climate policy*

Countries introducing emissions trading or carbon tax policies typically ‘carve out’ large areas of economic activity, and provide ‘compensation’ particularly to trade-exposed and energy-intensive industries.  This is based on concerns about international competitiveness being eroded, and the resulting assumption that there’s a ‘trade-off’ between cutting greenhouse gases and cutting jobs.

Job losses imply activity shifting to other countries not applying carbon policies.  Jobs and emissions shift overseas, leading to clear economic costs and job losses for those countries applying such policies, but little or no global reduction in emissions.  This is no ‘trade-off’.  It’s just a really bad deal.

This so-called ‘trade-off’ arises because such policies target national production of emissions.  This production model only works when all countries act together.  They haven’t, and they won’t.  In fact the Kyoto Protocol itself said that they won’t.  History attests to this reality.

Even if the supporters of the UNFCCC and Kyoto did not see it then, we can see it clearly now.  The production model has failed, both within Europe and Australia (because of major policy ‘carve-outs’ and exemptions), and more generally (because countries like the USA, China, India, etc, have not adopted similar climate policies). 

This is basic economics.  When nations act at different times or to different degrees, production models undermine trade competitiveness of early movers compared with others.  Late movers don’t follow suit so they can milk trade gains out of early movers.  This ruins chances for a global deal.

But we can do better.  This ‘trade-off’ is completely avoidable.  Countries can reduce greenhouse gases without any carbon or jobs leakage by targeting their consumption of embedded emissions rather than production.

By definition, global emissions production equals global emissions consumption.  So we have two roads to get to the same goal:  reduction in global emissions.  The production road only works when all countries act together.  In contrast, the consumption road works even if countries act unilaterally.  Why?  Because it is designed to eliminate international competitiveness concerns. 

So why pursue a production-based model given its now-long history of failure?  It’s even less likely to work as the world economy slides into recession.  Countries won’t want to suffer more job losses. 

The emissions consumption model is practical.  It starts with the production information required under current policies.  It can use existing value-added tax (or similar) systems to pass carbon cost signals transparently down the supply chain to consumers; exports are zero-rated; and it imposes a trade competitiveness-neutral border tax adjustment on competing imports. This system is already applied in countries with VAT or similar taxes.  Like such systems, it is trade competitiveness neutral.

A consumption model gets us to the same global end-point as a production model.  But basic economics tells us that it’s much more likely to get us there.  Isn’t it high time for the UNFCCC to move to ‘Plan B’ – a consumption model?  ‘Plan A’ isn’t working.

*       This is a modified and shortened version of an article published in The Australian Financial Review on 15 January 2009.

For further reading:

See attachment

http://www.onlineopinion.com.au/author.asp?id=5613

http://onlineopinion.com.au/documents/articles/GCA_Policy_Note01.pdf

http://onlineopinion.com.au/documents/articles/GCA_Policy_Note02.pdf

http://onlineopinion.com.au/documents/articles/GCA_Policy_Note03.pdf

http://dx.doi.org/10.1021/es072023k

http://dx.doi.org/10.1007/s10584-007-9280-1

For more information contact:

Geoff Carmody, [log in to unmask]

Glen Peters, [log in to unmask]

Glen Peters

Senior Research Fellow

Center for International Climate and Environmental Research - Oslo (CICERO)

P.O. Box 1129 Blindern

N-0318 Oslo

Norway

Phone: +47 2285 8780

Cell: +47 9289 1638

Fax: +47 2285 8751

E-mail: [log in to unmask]


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