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IPCC carbon budgets set the new bottom line for an international climate deal
posted by Damien on 1st Oct 2013

The new IPCC report provides a clear scientific limit on the volume of CO2 we can emit to avoid 2°C. Sandbag argues that the 2015 agreement must not only incorporate this carbon budget, but begin the tougher job of dividing it fairly between countries.

Yesterday saw the Intergovernmental Panel on Climate Change publish its full report evaluating the physical science behind climate change. This report provides the clearest link yet between anthropogenic greenhouse gas emissions and global warming, and gives clear injunctions to rapidly and radically reduce these emissions if we are to avoid dangerous climate change. Not only does it find that it’s “extremely likely” (95-100% probability) that human activities are causing global warming, it finds that we must keep our remaining CO2 emissions below 990 billion tonnes total to have a “likely” chance (66-100% probability) of avoiding 2°C of global warming. This budget provides a clear framework for governments negotiating an international climate deal in 2015 if they are serious about fulfilling their pledges to avoid 2° under the Copenhagen Accord. This call to formally acknowledge the IPCC global carbon budget in the international negotiations has already been picked up by economist, Lord Stern and by EU Climate Commissioner, Connie Hedegaard.

But while setting a global carbon budget is an essential first step, it still leaves the fundamental political question unanswered: how should that carbon budget be divided between nations? So far, national targets, where they exist, have been set in a politically haphazard way, with little regard to how these all stack up under a collective two degree carbon budget. Now with that budget clearly in view, we are obliged, in the words of Bill McKibben to “Do the math”.

The simplest and, in our view, the fairest way of carving up that carbon budget is to divide it evenly between countries based on population. Carbon pollution space is a new scarce global resource that does not respect the conventional national boundaries by which natural resources are usually divided and therefore better lends itself to a per capita distribution. Because territorial accounting of “smokestack” emissions has been recorded since 1990 under the UNFCCC, we argue that it is best to adhere to this system if we are to take account of the relative efforts of different nations to curb their emissions since the dangers of climate change were made widely known (i.e. by the first IPCC report). This is particularly important when we consider that 37% of the carbon budget available from 1990 has already been used up, with OECD countries using a very disproportionate share of that (i.e. 50% while only accounting of 20% of 1990 population). These historical emissions cannot be easily captured by upstream approaches that focus on fossil-fuel producers or downstream approaches that focus on end-consumers of carbon-intensive goods and services.

This “budgets approach” was first clearly formulated by the esteemed German Advisory Council on Global Change (WBGU) ahead of the Copenhagen climate conference in 2009; but despite being widely circulated and positively received, this approach has been systematically under-represented in effort-sharing discussions since. Instead the discussions have been monopolised by approaches which implicitly award the largest historical emitters a disproportionate share of the future emissions space. In an effort to reverse that trend and revive the budgets approach, Sandbag prepared a special report The Sovereign Emissions Rights Framework as our response to the European Commission’s consultation on a 2015 climate deal. For this report we calculated the carbon budgets remaining for every single country out until 2050. The new carbon budgets announced by the IPCC allow us to update that research to ascribe each country their total carbon budget not just out to 2050, but for all time. This budget breakdowns is provided in full in the attached spreadsheet: SERF IPCC 5AR budgets . A short overview of key countries and country groups is provided below in the table below:

Viewed through the lens of this budgets approach, there is a very real danger that the current piecemeal approach to target setting will lead to rich countries expropriating carbon assets that properly belong to poorer ones. Sustained inaction in some large developed emitters (e.g. North America, Australia) has let them already exceed their fair share of the carbon space and finds them encroaching on the emissions space of other countries without properly compensating them. Indeed, most developed countries are coming rapidly to the end of their budgets and will need to buy emissions rights from developing nations to cost-effectively meet their responsibilities (or meet them at all).

As international negotiations advance towards a 2015 climate deal, countries will naturally strive for the best possible outcome for themselves. To prevent the most political powerful countries from shirking their responsibilities or deflecting them on to other countries, it is essential that civil society keeps questions of fairness and equity at the forefront of the climate negotiations and in the setting of national targets. The budgets approach is a powerful measure of this.

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Mike cloud on 2nd Oct 2013:
Damien, Interesting and thought provoking. A couple of thoughts: Are you able to provide national GDP/Capita in 1990 and 2011 ( I guess against constant 1990 populations as you have done for Co2 budgets) and compare these results to the global average for 1990 ? This would allow analysis through the lens that emissions and their increase is created by economic growth [a suggested hypothesis not a proven fact!] Those who apparently have post 2011 headroom by the individual CO2 budget calculations but are unlikely to grow economically to the 1990 global GDP/Capita average over the period until an unallocated global 990 b tonnes is reached could identify spare emissions capacity to be managed if your proposal of national C02 budgets being fixed . At least this could create a debate about how much those who have (high 1990 GDP/Capita) are needing to forego in future growth to let those who have not (low GDP/Capita even in 2011 against 1990 average) grow whilst still managing or reducing global emissions?
Alex on 4th Oct 2013:
Why is the start year 1990? The UNFCCC recognises historical responsibility and as that was drafted in 1990 it must have been referring to a time prior to its agreement, so States have acknowledged the importance of pre-1990 emissions, which have substantially determined how much of the budget is remaining…
Damien Morris on 7th Oct 2013:
Mike, We have not provided GDP data, partly because we seek to keep considerations of wealth or poverty out of the debate about historic climate responsibility and access to future emissions rights. There is, no doubt, a strong historic correlation between emissions and growth, though it is one that many developed economies have started to break since 1990. Not least in the EU and UK. We'd hesitate, then, to make long-term predictions about the growth and emissions trajectories of developing countries and the headroom this might afford them in their carbon budgets…especially when there are complicated feedbacks that might be engineered through boosting development (and sometimes emissions) through the sale of emissions rights.
Damien Morris on 7th Oct 2013:
Alex, While the UNFCCC recognises the indisputable fact of historical emissions prior to the convention, it never indicates that these should be considered in countries' "common but differentiated responsibilities". By establishing an international scientific consensus on climate change and its risks that was formally acknowledged by governments, we feel the first IPCC report in 1990 constitutes an important epistemological and moral milestone from which to assign historic responsibility. It is only from that point that emissions space was recognised as a scarce global resource. In our view, states cannot be held culpable for emissions before they were known (beyond reasonable doubt) to be harmful, especially when these had such clear positive externalities in driving development and technological innovation.
Alex on 9th Oct 2013:
The principle of CBDR comes from Rio principle 7 which recognises that the responsibility arises from the different contributions of countries in putting pressure on eco-systems. Similarly the wording of the Art 3.1 (the fact that capability is a separate element for example) makes clear it is referring to responsibility deriving from historical emissions/historical contribution to the problem. Further evidence of this might be the US reservation that they don't accept this interpretation (if the US is claiming exception to it, it's probably the norm!). But regardless of the legal argument, as a moral argument, don't you think there's a distinction between 'responsibility' and 'culpability'? Nobody is suggesting that developed countries (or all countries) are 'punished' or 'fined' for their historical emissions, just that it is recognised in someway and that they are 'responsible' for them. If we had a lake and a corporation was pouring a previously thought safe chemical into (and making money while doing so) would you say the Corporation should not be 'responsible' for the subsequent poisoning? It's not clear that 'knowledge' is always an element of attributing responsibility or 'liability' in our legal system. Inversely you could consider the beneficial value of the historical use that developed countries have from their emissions in terms of infrastructure and human capital, shouldn't they 'pay' for that, not excessively but the 'fair' price? As Henry Shue asks – if a tailor made your mother a dress and she never paid for it and you now discovered it had never been paid for would you consider it moral not to pay the tailor, even though you know she's never had her fair dues, just because it happened to someone else related to you (and you have the beneficial interest)? Finally, if you are not prepared to countenance 'full' responsibility in that 'a tonne is a tonne' perhaps a discounting rate would be appropriate to also consider the returns of energy one got from a tonne of carbon in 1850? I also wonder if an earlier start date might be more appropriate given the precautionary principle? It's not the case that 1990 is the point at which policy-makers/society had any warning of this problem is it? Perhaps as the precautionary principle was crystallized as a principle in 1972 and the science was significantly consolidated by then that might offer a better start date?
Damien Morris on 15th Oct 2013:
Alex, Thanks for this thoughtful contribution. I guess a key question is whether (to pursue your analogy) the dress hasn't already been paid for. The key role of positive externalities is rarely acknowledged in this debate. It isn't just countries like Britain and the United States which have benefitted from historic emissions. The exponential economic and technological growth initiated by the industrial revolution has basically invented “development” as we conceive it today: a kind of prosperity undreamt of in earlier times. This is one of the reasons we argue that knowledge of harmfulness is a key parameter: until climate change was recognised as an issue, no developing or emerging country could begrudge developed nations their exploitation of cheap fossil energy. They just wanted similar levels of fossil-fuelled prosperity for themselves (as many still do). Finally, it might, as you suggest, be possible to identify an earlier scientific watershed than 1990. But the scientific authority of the IPCC and the involvement of governments in vetting it before publication does, at least, make it fairly unambiguous that the dangers of climate change had been brought to governments' attention by that point.