World perspective on carbon trading

United Nations climate chief, Yvo de Boer, recently warned of possible failure at the world climate change talks to be held in Copenhagen later this year.

Last week’s six-day meeting in Bonn made little progress towards trimming the 200-page draft treaty.

De Boer said a new global treaty on climate change was unlikely unless negotiations accelerate, and that delegates spent too much time arguing over procedures and technicalities.

So exactly how are other countries dealing with their responsibilities under the Kyoto Pact due to expire in 2012?

• The European Union ETS implemented since 2005 plans to cut emissions by 8 per cent from 1990 levels by 2012. The EU Environment Commissioner said they had to show leadership to convince other nations, especially Australia and the US, that carbon trading schemes work.
• As a result of its Climate Change Act in November 2008, the UK is committed to cutting its greenhouse gas emissions by at least 34 per cent by 2020 and 80 per cent by 2020.
• The USA has not introduced carbon trading but renewable energy accounts for 12 per cent of energy generated in the United States. Wind power installed capacity exceeds 25 GW; several solar thermal power stations, including the new 64 MW Nevada Solar One, have been built; and its Department of Energy recently announced a program to provide $2.3 billion in tax credits for manufacturers of clean energy equipment.
• China invested $12bn in renewables during 2007. China’s target is to increase investment in low carbon technologies from 8 per cent in 2006 to 15 per cent by 2020. A spokesman said China’s industrial revolution would not repeat the pollution, environmental damage and resource depletion that western nations created during their period of rapid growth.
• India has no trading scheme but said the new global climate change agreement should not allow trade barriers to be put up by rich countries against those that refuse to accept limits on their carbon emissions. An official at the Bonn talks pointed out:”India is a country where half the rural population does not have a light bulb in its home, or a gas ring”.
• South Korea recently took the lead among nations not bound by the Kyoto Protocol and pledged to set a 2020 emissions reduction target ahead of the meeting in Copenhagen.
• Brazil will hold its first auction to sell carbon credits in September.

India and China (36 per cent of the world’s population) say the developed world has an historic debt to pay and must pick up the vast majority of the bill for tackling climate change. John Prescott noted in The Guardian last week:”The fact is that the West has poisoned the world and left continents such as Africa in poverty. The West will have to stump up the cash for clean technology.”