Dec. 1 (Bloomberg) -- Japan said it won’t help extend the Kyoto Protocol accord to curb greenhouse-gas emissions after it expires in 2012, saying that instead a new global agreement is necessary to combat climate change.

The Kyoto treaty is “outdated” because it only regulates 27 percent of global emissions, Kuni Shimada, special adviser to Japanese Environment Minister Ryu Matsumoto, said yesterday in an interview at United Nations climate talks in Cancun, Mexico.

Failing to extend Kyoto through a UN-brokered agreement may put the organization’s $2.7 billion annual market for emissions credits at risk of collapse. The world’s second-biggest greenhouse-gas market is defined in the Kyoto accord and the credits are generated to help polluters around the world meet emissions targets laid down in the 1997 agreement.

“This is the firmest Japan has been,” Jake Schmidt, international climate policy director in Washington at the Natural Resources Defense Council, said in an interview in Cancun. “The fate of the Kyoto Protocol is going to cast a shadow over what we’re trying to do here on all the other building blocks of a climate agreement.”

The agreement negotiated in Kyoto, Japan, binds 37 developed nations and the European community to cut emissions from 1990 levels by a collective 5.2 percent in the five years through 2012. The U.S. never ratified the treaty, and developing countries such as China aren’t included.

Traders this year have sold UN credits on concern Kyoto may not be extended beyond 2012.

Credit Spread Widening

Credits for 2012 that were created under the UN program, called the Clean Development Mechanism and set up after the Kyoto accord, traded at 4.25 euros ($5.56) less than those in the European Union’s cap-and-trade program as of Nov. 30. That compares with a 2.39 euro discount at the start of the year.

CDM credit issuance contracted 59 percent last year to $2.7 billion, according to a World Bank report.

Talks to extend Kyoto’s emission targets to the U.S. and China, the world’s biggest emitters, failed at the 2008 UN climate-protection summit in Poznan, Poland.

In Copenhagen last year, negotiators were hoping to write a global treaty replacing Kyoto. The talks collapsed over differences between the U.S. and China over the scale and monitoring of emissions cuts.

“China and India want to make sure the Kyoto Protocol is not dead, and you’ve got Japan and Russia and Canada saying no chance unless the U.S. and China are onboard,” Schmidt said.

The U.S. isn’t likely to be able to agree to binding targets until at least 2013 because it needs to have domestic legislation in place first, Shimada said.

Depth of Division

“Without the active participation of the two biggest emitters, namely China and the United States, it’s not a global effort,” said Shimada, who was formerly Japan’s lead negotiator at the talks. “Whatever happens, under any kind of conditions we do not accept a second commitment period.”

The comments indicate the depths of divisions that have prevented a new treaty on climate change. UN officials leading the current round of talks are aiming for more incremental progress on protecting forests, channeling funds to poor nations and on verifying reductions in emissions blamed for damaging the Earth’s atmosphere.

Agreeing to an extension for the Kyoto Protocol is a key demand by developing countries including China and the 43-nation Alliance of Small Island States. The 27-nation European Union has said it’s open to a second commitment period, though it also wants action by the U.S. and China.

Pershing, Japan Slammed

Jonathan Pershing, chief of the U.S. delegation, said earlier this week that the Obama administration stands by its commitment to reduce its emissions of heat-trapping gases by 17 percent for the 15 years through 2020. He said President Barack Obama still thinks legislation is the right approach even after Congress this year failed to pass a climate change law and Obama’s Democrats lost control of the House of Representatives.

“We think it may be not necessarily be only comprehensive legislation, but perhaps elements in energy or elements in other environmental activities that could also move us in that direction,” Pershing said.

Environmental and non-profit groups slammed Japan’s refusal to accept a second commitment period.

“It’s shocking that at a time when the whole world is seeking to strengthen the climate regime, Japan wants to kill the treaty that bears its name,” Mohamed Adow, senior climate change adviser at Christian Aid, said in an e-mailed statement.

The collapse of the UN-backed CDM carbon offset market would impact the source of funding for renewable energy projects in developing countries in Asia, Haruhiko Kuroda, president of the Asian Development Bank, said at a briefing today in Tokyo.

“The truth is that the carbon trading market has already been impacted,” Kuroda said. If the CDM collapses, “a very important pillar of the financing mechanism for climate change mitigation efforts in developing countries is going to be disappearing.” (By Alex Morales and Stuart Biggs)

--With assistance by Ben Sills in Madrid. Editors: Peter Langan, Todd White

To contact the reporters on this story: Alex Morales in London at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Stuart Biggs in Tokyo at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

To contact the editor responsible for this story: Reed Landberg at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

© 2010 Bloomberg L.P. All Rights Reserved.

Source: Bloomberg

Some rights for the image is reserved under Creative Commons license

As negotiators arrive in Cancun for the next round of global climate talks, speculation once again hovers around China’s positions. China is a tough negotiator, and we can once again see it expressing concern about its core issues, including developed country mitigation commitments, technology transfer and the adequacy of financing. But as we look to negotiating positions, it is also worth stepping back for a minute to reflect on what China is doing domestically and how China’s efforts to promote energy efficiency and low carbon technologies can contribute to the global effort to combat climate change.

China’s commitments for emissions control over the next decade – its 40-45% carbon intensity reduction target by 2020, as well as forestry and renewable energy goals – are not contingent on the international negotiations or on commitments by any other country. China bound its commitment domestically through a State Council decision even before last year’s Copenhagen meeting, and it has said that the 40-45% carbon intensity reduction target will also be incorporated into its 12th Five Year Plan to be adopted by its National People’s Congress in March 2011. The Five Year Plan is the key tool for directing policy at all levels of government.

In the past year China has been moving forward on domestic policy implementation, and key developments include:

So in arriving at Cancun, China would appear to have quite a bit to offer, and yet it often ends up appearing defensive. Part of the reason is illustrated in the discussion posted by the China Dialogue Beijing Office Director Meng Si, November 29 . Meng interviews China’s Climate Minister Xie Zhenhua, who speaks frankly about China’s growing understanding of the importance of transparency, but also about his frustration in getting China’s message out into the press. All sides of the climate debate seem to understand the importance of transparency, and Xie showed interest in using that to help resolve issues surrounding measuring and reporting. One point to keep in mind is that greater transparency is also needed on accounting for developed country emissions reductions and on the financial support to be given to developing countries. My WRI colleagues suggest new approaches to these issues in two new papers here and here.

As Chinese negotiators have become more open with the press, the Chinese press has also become more interested in the climate negotiations. China’s major dailies and television stations now send reporters to the major climate meetings, and a number are now providing continuous web coverage. Interest in the issue is strong in China in part because many see the opportunities from improving efficiency and investing in new technologies, rather than focusing only on the costs. (By Deborah Seligsohn)

Source: ChinaFAQs

Some rights for the image is reserved under Creative Commons license

Protect us from becoming an 'endangered species' say small island states as UN report shows devastation from sea level rise.

Small island states are calling for a ‘climate change insurance fund’ to protect their people from ‘going extinct’ as a new UN report warned sea level rise will make whole nations uninhabitable.

The study of climate change impacts in the Caribbean warned that sea levels could rise by up to 6.5ft (2m) by the end of the 21st Century if global warming continues. There is also an increased risk of hurricanes and storm surges.

According to the Oxford University research this would mean that 260,000 people are displaced from the islands, one million would be at risk of flooding and billions of dollars would be lost every year from the tourism industry alone.

As 194 nations meet in Cancun, Mexico for the latest round of UN talks on global warming, small island states are calling for tougher measures to stop climate change.

Antonio Lima, Vice Chairman of the Association of Small Island States (Aosis), said whole nations will be washed away by sea level rise.

He said the people of Kiribati, Tuvalu, most of the Cook Islands, the Marshall Islands and the Maldives, that are just a few metres above sea level now, could be lost as a race.

“We are going to be the first human species endangered in the 21st century. We are going to be in danger of going extinct,” he said.

“We do not want to be the forgotten of the 21st century. We do not want to be sacrificed. We want to survive and to survive we need solidarity from those who can do something about the weather.”

As well as cuts in emissions to stop global warming, the small island states are calling for a ‘global insurance fund’ to be set up that would help vulnerable nations cope with the effects of climate change.

Poor nations at risk of sea level rise would pay an annual premium, but a large chunk of the money would come from climate change aid provided by rich nations. Like a normal insurance fund, the money would be invested privately so that there are hundreds of billions of pounds available in the event of a crisis.

The fund would pay out according to damage, as it is impossible to prove weather is directly caused by climate change. However the insurance would only be available to nations that are affected by global warming and do not have the capacity to protect themselves. Also they would have to first take reasonable preventative measures, such as building coastal defences, so that the money is only used for extreme events.

The insurance pay-outs could help whole nations pay for a new ‘homeland’ if sea level rise means it becomes impossible to live on their own island. It could also be used to repair airports, roads and hotels.

Aosis are calling for the insurance fund to be part of any global deal on climate change.

The group of more than 40 nations argue it would not only protect vulnerable states but motivate them to put in place preventative measures.

Ultimately, they argue, the aid money used to set up the fund and pay the insurance premiums would be far less than paying for the clean up costs if countries are left unprotected.

Already there has been a meeting about how the insurance fund would work at Oxford University earlier this year attended by small island states, academics and representatives from the insurance industry.

UK officials said it was too early to make an insurance fund part of a global agreement on climate change. But they agreed that the UN should order an investigation into the issue so that it can be included in a deal if it is feasible.

Asad Rehman, Friends of the Earth’s International Climate Campaigner, said rich countries have a responsibility to protect the poor from the impacts of climate change.

“As they have done the most to cause climate change, rich countries, including the UK, must also provide more money for developing countries to adapt to the impacts – including sea-level rise – which will have a devastating impact on communities worldwide,” he said.

“It might be tempting to focus on the loss of tourist resorts and beaches – but behind that will be an ocean of shattered livelihoods, homes and families.”

‘Modelling the Transformational Impacts and Costs of Sea Level Rise in the Caribbean’ focuses on 15 islands including holiday favourites St Kitts, Antigua, the Bahalmas and Barbados.

Dr Murray Simpson, Senior Research Associate, Oxford University Centre for the Environment, who led the study, said 300 tourist resorts will be devastated.

He said this would not only drive hundreds of thousands of people from their homes but deprive them of their livelihoods.

He said that just a metre is sea level rise will cost at least £188 ($300) billion by 2100 if sea level rises by 6.5ft (2m) with tens of billions spent every year repairing roads, hotels and airports. Even sea level rise of 3ft will cost up to £3 billion per annum by 2050, rising to £8 billion by 2100.

“This highlights the extreme vulnerability of small islands states and the need for urgent action,” he said.

Chris Huhne, Climate Change and Energy Secretary, said a global insurance fund should be carefully studied as a way of providing funds.

“The insurance industry already ‘gets’ climate change. It poses a unique risk to our environment and our economies and most businesses realise that inaction is not an option,” he said.

“During this fortnight of climate negotiations, we aim to make progress across a range of issues to get us closer to a legally binding treaty and ambitious emissions cuts.” (By Louise Gray)

Source: The Telegraph

JULIA Gillard has declared Australia "must decide" on a way of pricing carbon next year, warning against waiting longer.

Laying out her agenda for the year in a speech to the Committee for Economic Development of Australia conference today in Sydney, the Prime Minister will warn that Labor "must walk the reform road" regardless of the limitations of minority government.

She will nominate fiscal consolidation, cutting the company tax rate, superannuation and health reform, and the National Broadband Network, as key priorities.

She is predicting a price on carbon will be the major debate of next year.

"The parliament is now the master of its own destiny. But for the government, I say we must decide in 2011 on a way of pricing carbon that is supported by a broad enough consensus that it can be legislated," Ms Gillard will say.

"Climate change was first discussed in our parliament in the 1980s. I promise you, no responsible decision maker will be able to say next year that they need more time or more information on climate change. In 2011, there will be nowhere to hide."

Ms Gillard will also say incentives and proposals are required to tackle ageing of the population and unemployment.

"And the government will be moving from discussion to decision," she says.

Climate Change Minister Greg Combet will lead the Australian delegation at the 16th meeting of the Conference of Parties to the UN Framework Convention on Climate Change in Cancun, Mexico. "The world needs to take strong and credible action to move to a low-pollution future and limit global temperature increase to less than two degrees Celsius," Mr Combet said yesterday.

"Australia seeks a legally binding outcome that includes as many countries as possible. To achieve lasting emissions reductions, all major emitters must be part of the global solution."

A final international agreement is not expected at Cancun, but Canberra will work hard on key issues, including adaptation, reducing emissions from deforestation and forest degradation, transparent reporting, and climate financing.

Responding to reports that former maritime union heavyweight John Coombs was backing nuclear power following his experience with wind power schemes as a property owner at Crookwell, NSW, Mr Combet said wind power was not a silver bullet.

"No one has ever suggested the wind power alone will be a silver bullet" for our energy needs and climate change, he said.

"This is why a carbon price is essential to allowing all technologies to compete to give us least cost abatement in our economy."

"(But) Australia has some of the best wind resources in the world and wind power will be an important part of meeting our growing need for power while reducing the carbon pollution from the electricity sector."

Britain's chief scientist has dismissed hopes for a deal at the UN climate change conference starting today in Cancun,, and said people should start preparing for a warmer world. (By Samantha Maiden)

Copyright 2010 News Limited.

Source: The Australian

Some rights for the image is reserved under Creative Commons license