CLIMATE CHANGE   www.epa.ie Research Programme
 
 
 
Financing Climate Change: Climate Action at the EIB   EPA Climate Change Conference Dublin, 30 June 2010 Andrea Pinna Euro...
The Impact of Climate Change <ul><li>Unequivocal proof of the human footprint on the global climate and the adverse impact...
<ul><li>Keeping global warming within 2° C requires atmospheric CO2 stabilization at 400-450 ppm  </li></ul><ul><li>This r...
EU Leadership Role in the Global Fight against  Climate Change <ul><li>The EU has set for itself the most ambitious climat...
The EIB Framework for Climate Change Action 6 Action Areas <ul><li>Continuing to align the Bank corporate objectives, targ...
1: Supporting EU Climate Policy <ul><ul><li>Supporting the EU Energy and Climate package 2008 (20-20(30)-20 by 2020), UNFC...
2: Scaling-up lending for climate change  <ul><ul><li>Climate change now a Key Performance Indicator in EIB, with annual v...
<ul><li>Climate change is a growing course of action for EIB in four major sectors of activity: </li></ul>2: Scaling-up le...
05/07/10 European Investment Bank EIB´s RE Lending 2005-2009: €10,128m 2: Scaling-up lending for climate change
05/07/10 European Investment Bank EIB´s RE Lending 2005-2009: €10,128m 2: Scaling-up lending for climate change
Global reach of EIB action in climate change Direct investments 05/07/10 European Investment Bank
<ul><li>Energy efficiency  is the most cost-effective way of reducing emissions and improving the security of energy suppl...
<ul><li>The EIB is scaling up support to accelerate the development, commercialization and diffusion of cost-effective ear...
Offshore wind 05/07/10 European Investment Bank <ul><li>Belwind Project </li></ul><ul><li>Capacity:  165MW (55 wind turbin...
Concentrated Solar Power 05/07/10 European Investment Bank * *   Contractually guaranteed load factor taking into account ...
Concentrated Solar Power 05/07/10 European Investment Bank Promoter:  Abengoa Installed capacity:  11MW and 20MW Storage: ...
Concentrated Solar Power 05/07/10 European Investment Bank Gemasolar - Central Solar Receiver   First tower mounted centra...
4: Deploy New Financing instruments The EU Dimension <ul><li>Risk-Sharing instruments including the Risk-Sharing Finance F...
<ul><li>ESF, Facility for Energy Sustainability and Security of Supply  (€ 3bn in 2007-2013 on top of existing external ma...
5. Adaptation <ul><li>Climate change pose significant risks to many types of projects financed by the EIB. These risks are...
6: Adaptation 05/07/10 European Investment Bank Adaptation also a business opportunity Examples of adaptation projects fin...
6: Mainstreaming Climate Change <ul><li>Assessing the induced carbon footprint of financed projects, according to sector-s...
For more information… <ul><li>Thank you! </li></ul><ul><li>[email_address] </li></ul><ul><li>Tel: (+352) 43 79 - 82554 </l...
 
EPA Climate Change Conference 2010 Advancing national climate policy development Owen Ryan Climate Change Policy Departmen...
Climate Change Agenda <ul><li>International agenda </li></ul><ul><ul><li>UN Framework Convention on Climate Change (1992);...
Ultimate objective <ul><li>Ultimate objective of UN convention: </li></ul><ul><ul><li>stabilisation of atmospheric greenho...
A short history over a long-time  <ul><li>1992: UNFCCC finalised in response to 1st assessment report published by the IPC...
Article 3.9 review of Kyoto Protocol <ul><li>Kyoto Protocol came into effect in 2005. </li></ul><ul><li>A 3.9 requirement ...
Further Action under Convention <ul><li>Bali Action Plan adopted at COP 13 in 2007. </li></ul><ul><li>Launched comprehensi...
Bali Action Plan <ul><li>Decision 1/CP.13 – key elements: </li></ul><ul><ul><li>shared vision for long-term cooperative ac...
Ongoing international negotiations <ul><li>Focused on finding a successor international treaty to the Kyoto Protocol. </li...
Copenhagen Accord <ul><li>Positive provisions include: </li></ul><ul><ul><li>recognition of 2 ˚ C objective; </li></ul></u...
Looking forward <ul><li>COP-16, Cancun 2010; </li></ul><ul><ul><li>fundamental objective unchanged, i.e. a robust and lega...
Existing EU policy for 2020 <ul><li>Unilateral EU target to reduce greenhouse gas emissions by 20% by 2020. </li></ul><ul>...
EU – stepping up to 30% <ul><li>Live issue – as reflected in recent Commission Communication. </li></ul><ul><li>Timing not...
Broader EU 2020 agenda <ul><li>Commission communication (March ‘10) on  Europe 2020: a strategy for smart, sustainable & i...
Ireland’s GHG targets <ul><li>EU target under Kyoto Protocol – reduce GHG emissions by 8% (compared to 1990) over the comm...
Ireland’s 2020 target in context <ul><li>To achieve the EU unilateral 20% target for 2020, total GHG emissions must be cut...
National Policy Development <ul><li>National Climate Change Strategy 2007-2012 (published April 2007) </li></ul><ul><ul><l...
Stakeholder input to policy <ul><li>Opportunities for stakeholder input on Climate Change Bill when details of Heads are a...
Conclusion <ul><li>Climate change – threat, challenge and opportunity. </li></ul><ul><li>Key cross-cutting policy issue fo...
Upcoming SlideShare
Loading in …5
×

Financing Climate Change - Dr Andrea Pinna, EIB - EPA CC Conference June 2010

2,377 views
2,253 views

Published on

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,377
On SlideShare
0
From Embeds
0
Number of Embeds
523
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Financing Climate Change - Dr Andrea Pinna, EIB - EPA CC Conference June 2010

  1. 1. CLIMATE CHANGE www.epa.ie Research Programme
  2. 5. Financing Climate Change: Climate Action at the EIB EPA Climate Change Conference Dublin, 30 June 2010 Andrea Pinna European Investment Bank 05/07/10 European Investment Bank
  3. 6. The Impact of Climate Change <ul><li>Unequivocal proof of the human footprint on the global climate and the adverse impacts that will ensue </li></ul><ul><ul><li>Climate change is a major threat to environmentally and socially sustainable development in all regions of the world </li></ul></ul><ul><ul><li>Significant damages are expected in the EU at a temperature increase of about 3° C. </li></ul></ul><ul><ul><li>Developing countries, and the poorest amongst them, least are being hit soonest and hardest </li></ul></ul>05/07/10 European Investment Bank
  4. 7. <ul><li>Keeping global warming within 2° C requires atmospheric CO2 stabilization at 400-450 ppm </li></ul><ul><li>This requires strong mitigation by all </li></ul><ul><ul><li>Global emissions need to be reduced by at least 50% from 1990 levels by 2050 which means they need to peak by 2020 and fall by between 1-3% per year thereafter. </li></ul></ul><ul><ul><li>Industrialized countries must take the lead in the global fight against climate change </li></ul></ul><ul><ul><ul><li>For instance, the EU acknowledges that while the power sector around the world would have to be at least 60% de-carbonised by 2050, the bigger proportion of de-carbonisation needs to occur in rich countries (80 to 90%). </li></ul></ul></ul><ul><li>Shift in the world energy system away from fossil fuels </li></ul><ul><ul><li>RE, EE, CCS, nuclear </li></ul></ul><ul><li>Huge investments necessary on a global scale </li></ul><ul><ul><li><EUR 7t by 2030 according to IEA </li></ul></ul>Financing Mitigation 05/07/10 European Investment Bank
  5. 8. EU Leadership Role in the Global Fight against Climate Change <ul><li>The EU has set for itself the most ambitious climate reduction targets in the world. By 2020 it committed to: </li></ul><ul><ul><li>Achieve unilateral 20% greenhouse gas emission reductions with respect to 1990 levels. This could be increased to a 30% reduction in the context of an ambitious new global climate agreement; </li></ul></ul><ul><ul><li>Ensure that 20% of the overall EU energy consumption will be from renewable energy sources; </li></ul></ul><ul><ul><li>Increase energy efficiency in the EU so as to save 20% of energy consumption </li></ul></ul>05/07/10 European Investment Bank
  6. 9. The EIB Framework for Climate Change Action 6 Action Areas <ul><li>Continuing to align the Bank corporate objectives, targets, principles and standards with the evolving EU and international climate policy </li></ul><ul><li>Scaling-up lending for climate change </li></ul><ul><li>Financing the accelerated development, commercialization and diffusion of cost-effective early-stage low-carbon technologies </li></ul><ul><li>Deploying new financing instruments </li></ul><ul><li>Scaling up lending and TA in vulnerable sectors (e.g. water) and constituencies where adaptation is urgently needed </li></ul><ul><li>Gradually mainstreaming climate change considerations into Bank operations, building staff awareness, capacity, and expertise </li></ul>05/07/10 European Investment Bank
  7. 10. 1: Supporting EU Climate Policy <ul><ul><li>Supporting the EU Energy and Climate package 2008 (20-20(30)-20 by 2020), UNFCCC commitments (KP and beyond), and Copenhagen pledges </li></ul></ul><ul><ul><ul><li>$ 30bn until 2012 for adaptation and mitigation and $ 100bn/yr by 2020 </li></ul></ul></ul><ul><ul><li>Implementing EIB Revised Environmental and Social Statement </li></ul></ul><ul><ul><ul><li>RE, EE, adaptation </li></ul></ul></ul>05/07/10 European Investment Bank
  8. 11. 2: Scaling-up lending for climate change <ul><ul><li>Climate change now a Key Performance Indicator in EIB, with annual volume targets (20, 22, and 25% of total lending for 2010, 2011, and 2012 respectively). </li></ul></ul><ul><ul><li>Lending for climate change in 2009 was € 16.9bn or ~20% of total lending </li></ul></ul>05/07/10 European Investment Bank
  9. 12. <ul><li>Climate change is a growing course of action for EIB in four major sectors of activity: </li></ul>2: Scaling-up lending for climate change 05/07/10 European Investment Bank <ul><ul><li>Renewable Energy </li></ul></ul><ul><ul><li>Energy Efficiency </li></ul></ul><ul><ul><li>Sustainable transport </li></ul></ul><ul><ul><li>RD&I </li></ul></ul>
  10. 13. 05/07/10 European Investment Bank EIB´s RE Lending 2005-2009: €10,128m 2: Scaling-up lending for climate change
  11. 14. 05/07/10 European Investment Bank EIB´s RE Lending 2005-2009: €10,128m 2: Scaling-up lending for climate change
  12. 15. Global reach of EIB action in climate change Direct investments 05/07/10 European Investment Bank
  13. 16. <ul><li>Energy efficiency is the most cost-effective way of reducing emissions and improving the security of energy supply </li></ul><ul><li>Lending for projects involving improvements in energy efficiency has totalled € 730mn in 2008 (first year when new definition was introduced) and was over € 1.5bn in 2009 </li></ul><ul><li>The EIB systematically screens projects to identify energy efficiency opportunities, and require that projects make use of BAT </li></ul><ul><li>The EIB will only finance new coal and lignite power stations when they replace existing ones and provide for a decrease of at least 20% in carbon intensity </li></ul>05/07/10 European Investment Bank 2: Scaling-up lending for climate change
  14. 17. <ul><li>The EIB is scaling up support to accelerate the development, commercialization and diffusion of cost-effective early-stage low-carbon technologies such as: </li></ul><ul><ul><ul><li>Photovoltaics </li></ul></ul></ul><ul><ul><ul><li>Off-shore wind </li></ul></ul></ul><ul><ul><ul><li>Concentrated solar power </li></ul></ul></ul><ul><ul><ul><li>2nd generation biofuels </li></ul></ul></ul><ul><ul><ul><li>Carbon capture and storage </li></ul></ul></ul><ul><li>Recent further emphasis to RDI activities such as; </li></ul><ul><ul><li>Engine and fuel technologies which reduce emissions from cars and airplanes </li></ul></ul><ul><ul><li>Energy-efficient smaller cars </li></ul></ul><ul><li>Lending for CC-related RDI has grown considerably and reached about € 4.7bn in 2009 </li></ul>3: Supporting early-stage low-carbon technologies 05/07/10 European Investment Bank
  15. 18. Offshore wind 05/07/10 European Investment Bank <ul><li>Belwind Project </li></ul><ul><li>Capacity: 165MW (55 wind turbines, 3MW/ unit) </li></ul><ul><li>Location: 46 km off the Belgium coast, depth 20-37 m </li></ul><ul><li>Sponsors: Colruyt, Econcern, Financial Investors </li></ul><ul><li>Total project cost : EUR 619.4 M </li></ul><ul><li>Construction contracts: Vestas & Van Oord </li></ul><ul><li>Long term O&M by Vestas </li></ul>
  16. 19. Concentrated Solar Power 05/07/10 European Investment Bank * * Contractually guaranteed load factor taking into account molten salt storage and auxiliary firing on natural gas. Promoter : ACS/Cobra & Solar Millennium EIB financing : EUR 120m direct risk (RSFF), EUR 109.2m interm.
  17. 20. Concentrated Solar Power 05/07/10 European Investment Bank Promoter: Abengoa Installed capacity: 11MW and 20MW Storage: no Project site: Seville Net electricity production: 22.3 GWh and 46.4 GWh/year EPC price: EUR 48.5m for PS10 and EUR 95.35m for PS20 EIB financing: EUR 50m direct risk (RSFF), EUR 78m intermediated. Solucar – Central Solar Receiver PS10 and PS20 First tower mounted central receiver solar thermal plants in europe and the first in the world in commercial operation.
  18. 21. Concentrated Solar Power 05/07/10 European Investment Bank Gemasolar - Central Solar Receiver First tower mounted central receiver solar thermal plant using molten salt as thermal fluid and energy storage. <ul><li>Promoter: Sener / Abu Dhabi </li></ul><ul><li>Installed capacity: 17MW </li></ul><ul><li>Storage: 15h </li></ul><ul><li>Project site: Fuentes de Andalucía ( Seville) </li></ul><ul><li>Net electricity production: 96 GWh/year </li></ul><ul><li>EPC price: EUR 200 m </li></ul><ul><li>EIB financing: EUR 80m direct risk (RSFF). </li></ul>
  19. 22. 4: Deploy New Financing instruments The EU Dimension <ul><li>Risk-Sharing instruments including the Risk-Sharing Finance Facility (RSFF) : aims at promoting research and innovation investments; </li></ul><ul><li>European Clean Transport Facility : provides funding for investments, from R&D to production of more fuel efficient vehicles; </li></ul><ul><li>MARGUERITE : a joint fund of the EIB and other European Financial Institutions to support the European Economic Recovery Plan, providing equity and quasi equity for projects in the Energy/Climate, Renewables and Transport sectors; </li></ul><ul><li>European Local Energy Assistance (ELENA) : € 15 million grant fund of the European Commission reserved to accompany the EIB’s operations in developing the potential of urban projects for renewable energy and energy efficiency. </li></ul>05/07/10 European Investment Bank
  20. 23. <ul><li>ESF, Facility for Energy Sustainability and Security of Supply (€ 3bn in 2007-2013 on top of existing external mandate), promotes cleaner energy growth paths by promoting the transfer of clean technologies between the EU and developing countries </li></ul><ul><ul><li>Examples, € 500m China Climate Change FL, € 141mn Panama Dos Mares Hydroelectric Plant, € 79mn Mexico La Venta III Windfarm </li></ul></ul><ul><li>GEEREF (€ 200mn target) is a fund of funds aimed at investing in regional risk capital funds catalyzing private investment in energy efficiency and renewable energy projects in developing countries and economies in transition </li></ul><ul><li>Six existing carbon funds (Multilateral Carbon Credit Fund, Carbon Fund for Europe, EIB/KfW Carbon Purchase Programme, Post 2012 Carbon Fund, Carbon Fund Morocco, EIB/KfW II), with combined capital in excess of € 550mn). Mediterranean Carbon Fund being considered </li></ul><ul><li>CCTAF: Climate Change Technical Assistance Facility . 5 million TA facility to cover carbon crediting activities of projects expected to be financed by the EIB </li></ul>4: Deploy New Financing instruments Outside the EU 05/07/10 European Investment Bank
  21. 24. 5. Adaptation <ul><li>Climate change pose significant risks to many types of projects financed by the EIB. These risks are not just environmental, but also credit, insurance, reputational and possibly even legal risks </li></ul><ul><ul><li>Projects at risk, examples: Projects in risky sectors (esp. projects exposed to water cycle); projects located in vulnerable areas (e.g. costal zones); projects potentially affecting livelihoods already near the limit of tolerance (e.g. the Sahel) </li></ul></ul>05/07/10 European Investment Bank
  22. 25. 6: Adaptation 05/07/10 European Investment Bank Adaptation also a business opportunity Examples of adaptation projects financed in last decade: Sub-sector Project countries Total project cost (€bn) EIB loans (€bn) Flood risk management Germany, Netherlands, Czech Republic 1.94 0.95 Coastal and riverbank protection Italy, Bulgaria, Russia 5.30 1.57 Erosion and landslide prevention Poland 0.07 0.05 Total 7.31 2.57
  23. 26. 6: Mainstreaming Climate Change <ul><li>Assessing the induced carbon footprint of financed projects, according to sector-specific methodologies </li></ul><ul><li>Accounting for the cost of carbon emissions of thermal power generation projects for the purpose of calculating their economic rate of return </li></ul><ul><li>Assessing the carbon impact of road projects by measuring the carbon emissions of the vehicles that will use them </li></ul><ul><li>Systematically screening projects for climate risks and requesting promoters to effect design changes where appropriate </li></ul><ul><li>Systematically screening early stage projects to identify potential for generating carbon credits and provision of TA to promoters to seize these opportunities </li></ul>05/07/10 European Investment Bank
  24. 27. For more information… <ul><li>Thank you! </li></ul><ul><li>[email_address] </li></ul><ul><li>Tel: (+352) 43 79 - 82554 </li></ul>05/07/10 European Investment Bank
  25. 29. EPA Climate Change Conference 2010 Advancing national climate policy development Owen Ryan Climate Change Policy Department of the Environment, Heritage & Local Government
  26. 30. Climate Change Agenda <ul><li>International agenda </li></ul><ul><ul><li>UN Framework Convention on Climate Change (1992); </li></ul></ul><ul><ul><li>Kyoto Protocol (1997); </li></ul></ul><ul><ul><ul><li>(Commitment period 2008-2012) </li></ul></ul></ul><ul><ul><li>IPCC – 4th scientific assessment report (2007). </li></ul></ul><ul><li>EU agenda </li></ul><ul><ul><li>European Climate Change Programme; and </li></ul></ul><ul><ul><li>2008 Climate and Energy Package. </li></ul></ul><ul><li>National agenda </li></ul><ul><ul><li>1st National Climate Change Strategy published 2000. </li></ul></ul><ul><ul><li>2 nd Strategy (2007-2012) published April 2007. </li></ul></ul><ul><ul><li>Programme for Government commitment to Climate Change Bill 2010. </li></ul></ul>
  27. 31. Ultimate objective <ul><li>Ultimate objective of UN convention: </li></ul><ul><ul><li>stabilisation of atmospheric greenhouse gas concentrations at levels that would prevent dangerous anthropogenic interference with the climate system. </li></ul></ul><ul><li>Convention strengthened by Kyoto Protocol in 1997; but Protocol targets expires at end 2012. </li></ul>
  28. 32. A short history over a long-time <ul><li>1992: UNFCCC finalised in response to 1st assessment report published by the IPCC in 1990. </li></ul><ul><li>1995: COP-1; agreed the “Berlin Mandate” as basis of KP, i.e. developed countries lead on emissions reduction. </li></ul><ul><li>1997: COP-3 (Kyoto); adoption of the Kyoto Protocol with legally-binding targets for developed countries & flexible mechanisms. </li></ul><ul><li>2005: COP-11 (Montreal), KP in force and start of talk about talks, i.e. future of process beyond 2012. </li></ul><ul><li>2007: Bali Action Plan agreed. </li></ul><ul><li>2009: Copenhagen Accord agreed at COP 15. </li></ul>
  29. 33. Article 3.9 review of Kyoto Protocol <ul><li>Kyoto Protocol came into effect in 2005. </li></ul><ul><li>A 3.9 requirement to initiate consideration of further commitments for Annex I Parties “at least seven years before the end of the first commitment period”. </li></ul><ul><li>COP 11 (Montreal) established the Ad Hoc Working Group on further commitments for Annex I Parties under Kyoto Protocol. </li></ul><ul><li>AWG-KP to complete its work by end 2009. </li></ul>
  30. 34. Further Action under Convention <ul><li>Bali Action Plan adopted at COP 13 in 2007. </li></ul><ul><li>Launched comprehensive process to enable full, effective and sustained implementation of the Convention – through long-term co-operative action now, up to and beyond 2012 . </li></ul><ul><li>Established Ad Hoc Working Group on Long-term Cooperative Action under the Convention: </li></ul><ul><ul><li>complete its work in 2009 and present outcome for adoption at COP 15 in Copenhagen. </li></ul></ul>
  31. 35. Bali Action Plan <ul><li>Decision 1/CP.13 – key elements: </li></ul><ul><ul><li>shared vision for long-term cooperative action; </li></ul></ul><ul><ul><ul><li>achieve ultimate objective of convention; </li></ul></ul></ul><ul><ul><ul><li>Fundamental principle – common but differentiated responsibilities and respective capabilities. </li></ul></ul></ul><ul><ul><li>enhanced action on mitigation; adaptation; technology development & transfer; and provision of financial resources and investment. </li></ul></ul><ul><li>Two year programme of work to be completed in time for COP 15 in 2009. </li></ul>
  32. 36. Ongoing international negotiations <ul><li>Focused on finding a successor international treaty to the Kyoto Protocol. </li></ul><ul><li>EU pressing for a comprehensive treaty based on keeping global temperature within 2 ˚ C of pre-industrial levels; </li></ul><ul><ul><li>must be broader in scope that KP and reflect both tracks of ongoing negotiations. </li></ul></ul><ul><li>Copenhagen Accord (Dec ’09) contains positive commitments on action but falls well short of EU ambition for a post-2012 international treaty; </li></ul><ul><ul><li>not legally binding! </li></ul></ul>
  33. 37. Copenhagen Accord <ul><li>Positive provisions include: </li></ul><ul><ul><li>recognition of 2 ˚ C objective; </li></ul></ul><ul><ul><li>continuation of both Ad Hoc Working Groups; </li></ul></ul><ul><ul><li>Parties accounting for 80+% of global GHG emissions have associated or expressed support; </li></ul></ul><ul><ul><li>new mechanisms on forestry and technology; </li></ul></ul><ul><ul><li>financial commitments by developed countries – short and longer-term; </li></ul></ul><ul><ul><li>Copenhagen Green Climate Fund; </li></ul></ul><ul><ul><li>quantified nationally appropriate mitigation actions (NAMAs) from many developing countries; and </li></ul></ul><ul><ul><li>implementation review by 2015. </li></ul></ul>
  34. 38. Looking forward <ul><li>COP-16, Cancun 2010; </li></ul><ul><ul><li>fundamental objective unchanged, i.e. a robust and legally-binding global agreement; </li></ul></ul><ul><ul><li>stepwise approach, building on Copenhagen Accord; </li></ul></ul><ul><ul><li>integrate political guidance in CA into formal negotiating texts; </li></ul></ul><ul><ul><li>decisions needed at COP 16 to anchor CA in UNFCCC negotiating process and address remaining gaps. </li></ul></ul><ul><li>COP-17, South Africa 2011; </li></ul><ul><ul><li>agreement on new post-2012 international treaty? </li></ul></ul>
  35. 39. Existing EU policy for 2020 <ul><li>Unilateral EU target to reduce greenhouse gas emissions by 20% by 2020. </li></ul><ul><ul><li>underpinned by the 2008 EU Climate and Energy legislative package. </li></ul></ul><ul><li>Conditional offer to step up to 30% as part of a global & comprehensive international agreement for the post-2012 period: </li></ul><ul><ul><li>provided other developed countries commit to comparable reductions and developing countries contribute adequately according to their responsibilities and respective capabilities. </li></ul></ul>
  36. 40. EU – stepping up to 30% <ul><li>Live issue – as reflected in recent Commission Communication. </li></ul><ul><li>Timing not right for step up; EU conditions have not been met at an international level. </li></ul><ul><li>Analysis important for informed discussion as Europe exits the economic downturn. </li></ul><ul><li>Council to revert to the issue later in the year; in advance of COP-16. </li></ul><ul><li>More detailed analysis to be undertaken by Commission on policy options, costs and benefits – including at Member State level, as appropriate. </li></ul><ul><li>Key preparations in anticipation of right time to step up. </li></ul>
  37. 41. Broader EU 2020 agenda <ul><li>Commission communication (March ‘10) on Europe 2020: a strategy for smart, sustainable & inclusive growth . </li></ul><ul><li>Three mutually reinforcing priorities: </li></ul><ul><ul><li>smart growth , developing an economy based on knowledge and innovation; </li></ul></ul><ul><ul><li>sustainable growth , promoting a more resource efficient, greener and more competitive economy; and </li></ul></ul><ul><ul><li>inclusive growth , fostering a high-employment economy delivering social and territorial cohesion. </li></ul></ul><ul><li>Mainstreams climate change agenda, and underscores importance of transition and environmental sustainability. </li></ul>
  38. 42. Ireland’s GHG targets <ul><li>EU target under Kyoto Protocol – reduce GHG emissions by 8% (compared to 1990) over the commitment period 2008-12; </li></ul><ul><ul><li>under internal EU burden-sharing, Ireland to limit total national emissions to 13% above 1990 levels. </li></ul></ul><ul><li>Under 2008 EU Climate & Energy Package: </li></ul><ul><ul><li>installations participating in EU-ETS to reduce overall GHG emissions by 21% compared to 2005 by 2020 period; and </li></ul></ul><ul><ul><li>Member States to address other (non-ETS) emissions at national level; Ireland required to reduce GHG emissions not covered by ETS (transport, waste, agriculture, commercial and residential, etc) by 20% compared to 2005. </li></ul></ul>
  39. 43. Ireland’s 2020 target in context <ul><li>To achieve the EU unilateral 20% target for 2020, total GHG emissions must be cut by 14% on 2005 levels, which has been translated into: </li></ul><ul><ul><li>21% reduction in ETS emissions, and </li></ul></ul><ul><ul><li>10% reduction in non-ETS emissions; individual Member State targets in a range from +20% to -20% - Ireland has strictest target at -20%. </li></ul></ul><ul><li>Land use, land use change and forestry (forest sink, etc) not factored into 2020 target; commitment to revisit unilaterally if no international agreement by end 2010. </li></ul><ul><li>EU-ETS to be administered by Commission from 2013. </li></ul>
  40. 44. National Policy Development <ul><li>National Climate Change Strategy 2007-2012 (published April 2007) </li></ul><ul><ul><li>addressed both mitigation and adaptation; </li></ul></ul><ul><ul><li>target based approach – emission reductions supplemented as necessary by purchased carbon units. </li></ul></ul><ul><li>Annual Carbon Budget </li></ul><ul><ul><li>Introduced 2007 to progress policy development. </li></ul></ul><ul><li>Climate Change Bill to provide, i.a.: </li></ul><ul><ul><li>statutory basis for policies and principles; and </li></ul></ul><ul><ul><li>national mitigation and adaptation plans. </li></ul></ul>
  41. 45. Stakeholder input to policy <ul><li>Opportunities for stakeholder input on Climate Change Bill when details of Heads are announced. </li></ul><ul><li>Bill will address policies and principles on both mitigation and adaptation. </li></ul><ul><li>Potential impact of historic and current greenhouse gas emissions: </li></ul><ul><ul><li>major issue for Ireland, e.g. agriculture and forestry sectors; and </li></ul></ul><ul><ul><li>underscores the link between global mitigation and local adaptation. </li></ul></ul><ul><li>Outline of national adaptation framework to be announced with details of Heads of Bill. </li></ul>
  42. 46. Conclusion <ul><li>Climate change – threat, challenge and opportunity. </li></ul><ul><li>Key cross-cutting policy issue for the Irish Government and the EU. </li></ul><ul><li>Global GHG emissions must be halved by 2050; developed countries in aggregate must reduce emissions by 80% or more. </li></ul><ul><li>EU targets determine minimum level of ambition for Ireland. </li></ul><ul><li>Transition to a low-carbon, climate-resilient and resource-efficient future essential. </li></ul><ul><li>CC Bill – next major step in national policy development; effective engagement & input of stakeholders welcome. </li></ul>

×