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Sharing Global CO2 Emission
    Reductions among 1 Billion High
    Emitters.

        S. Chakravarty (PEI), A. Chikkatur (Harvard), H.
        de Coonick (ECN), S. Pacala (PEI), R. Socolow
        (PEI) and Massimo Tavoni (FEEM and PEI)


        International Energy Workshop
        Venice, 18th June 2009




1
The challenge of sharing the burden




               Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it


    Source: Raupach M. R. et.al. PNAS 2007;104:10288-10293




1
What is a fair distribution of emission
            allowances among countries?

    •   Based on a negotiated outcome? (Kyoto)
    •   Based on cumulative historical contribution to climate change?
    •   Or perhaps on future contribution to the climate problem?
    •   Based on the reduction potentials (geography, climate)?
    •   Based on national per capita greenhouse gas emissions?

    • Based on the emissions of the individuals in a country?


                Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
What this paper does (and does not) do


    It does:
       – Treat every individual in the world the same, regardless of
         the country they live in
       – Provide an ordering principle on which to base emission
         allocation to countries
    It does not:
       – Does not include historical responsibility, land use
         emissions and non-CO2 gases


               Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
How to measure individual emissions ?
    - Large empirical literature based (Lenzen, Peters,
       Serrano, Hereenden etc.) points to strong relation
       between energy/emissions and income
       – Elasticities from surveys 0.8/1
       – Panel from data in this paper 0.72


    - Use income distribution data from WB and UN to
       derive the global distribution of emissions



               Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
Building Carbon Emission Distribution
    •   We fit income/consumption distributions using the sum of two Gamma
        pdfs on quintiles or deciles data at the country level.
    •   We rescale them to match their nation per capita GDP (in PPP) of 2003.
    •   Assuming income and emissions are related by a power law, we translate
        them into emission distributions, ensuring that the averages match the
        national emission inventories.

    We attribute all production-based national emissions to their individuals on
      the basis of their income. That is, we assume that the emissions generated
      by government consumption and the investments in the economy are
      attributed to individuals according to their income, in the same way those
      deriving directly or indirectly from consumption. The scheme ignores
      emissions embedded in inter-regional trade.`

                   Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
From income to carbon distributions




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1
Rank all people in the world, highest
                to lowest emission-wise




    50% 75%

       Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
Mitigating from 2030 BAU




           Total emissions: 43 GtCO2




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1
People ranked by personal emissions




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                                                                                                            9




1
Determine globally applicable personal
                            emissions cap


                                                             Individual Emissions Cap




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                                                                                                          10




1
Some people exceed personal cap



                                                             Individual Emissions Cap




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                                                                                                          11




1
People in a nation determine national cap


    Required
                   =                   +                                  Individual Emissions Cap
    Reductions




     National
    Emissions      =                   +              +              +             +              +
      Target




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                                                                                                                       12




1
Choose a global target:
                                           30 GtCO2 in 2030




            Reduction: 13 GtCO2


                     = 10.8 tCO2/person/yr
                                 Target 30 GtCO2


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1
Other global targets in 2030




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1
Regional distributions in 2030


                                   China
                                Rest of world

                                Rest of OECD


                                                   30 Gt global cap, 10.8 t individual cap

                                     30 Gt global cap, 10.8 individual cap
                                         U.S.


    For a 30 GtCO2 Magenta 63, 20123cap- Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it on
                Corso
                      global Milano in 2030, similar population
                 which targets are based for four groupings




1
Headroom for the poor

    • Climate and poverty agenda
    • Allow carbon poor to raise their emissions to 1 tCO2/cap*yr
    • What does 1 tCO2/person/yr mean
       –   Electricity: 800 kWh coal-fired power;
       –   Transport: 65km/day;
       –   Cooking: 14 kg LPG/month
       –   X 2 for indirect emissions




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1
Combine global-emissions cap and
           individual-emissions floor


                            “30P” in 2030: 30 GtCO2 global
                        emissions cap plus 1 tCO2 floor on
                                      individual emissions
                                               Individual cap:
                                           without floor: 10.8 t CO2
                                           with floor:     9.6 t CO2

    1

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1
Regional targets in 2030




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1
Conclusion
    • Focus on individuals to determine national mitigation efforts
    • Computing carbon emission distributions globally shows large
      inequalities. Go beyond national averages.
    • Assuming an individual capping policy, a global target of 30
      GtCO2 in 2030 results in about 1 billion people having to
      reduce emissions, equally found in the US, rest of OECD, China
      and rest of non-OECD.
    • The energy needs of the poorest 2.7 billion people can be
      accommodated with a rather small impact on climate
      mitigation
    • In 2030, industrialized countries bear the highest mitigation
      job, but China (and to less extend Russia and the Middle East)
      are also held responsible.
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1
backup




    Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
Emissions embedded in trade
                  (production minus consumption)

                  MtCO2             % of                                                          MtCO2              % of
                                    country                                                                          country
                                    emissions                                                                        emissions

    US            -439              -7.3%                              China                      585                17.8%


    Switzerland   -63               -122%                              India                      71                 6.9%


    Australia     57.9              16.5%                              Mozambique                 -2.8               -172.4%


    ANNEX B       -822              -5.6%                              NON                        822                8.1%
                                                                       ANNEX B
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                   Source: Peters and Hertwich, 2007




1
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1
U.S.




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1
A rapidly changing world…


                                                            China/US ratio


                                Total Emissions                    Per Capita Emissions
                Rio:1992                    0.48                                     0.10

              Kyoto:1997                    0.55                                     0.12

                  2007                      1.13                                     0.26

                  2030                      1.75                                     0.44




                           Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it

    Source: EIA for the 1992, 1997 and 2030 projections. 2007 estimate is from MNP and BP


                                                                                                                                 24




1
Per-capita energy related CO2 emissions
                                      (2005)




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    Source: IEA WEO 2007




1
Per-capita energy related CO2 emissions
                                   (2030)




                           Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it



    Source: IEA WEO 2007




1
Use income distribution data to arrive
        at individual carbon distributions




                               Country
                             CO2 intensity




       Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




1
Emissions-income elasticity from household surveys and
                                         input-output tables




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                                                                                                                   28




1
Ci = Ai *Ix

    We will proceed with elasticity of x = 1.0 as the basic
                    idea is independent of the elasticity.




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                                                                                                                     29




1
From income to carbon distributions
Data Source: World Bank’s national surveys on income distribution
             Population      0         0.1          0.2           0.4           0.6          0.8           0.9           1.0

             Income share    0       0.036         0.084         0.20          0.36          0.57         0.71           1.0




                                     Consider Indonesia in 2003
                                Population (millions)     214.7
                            GDP per capita (2000 $ PPP)    3167
                            emissions per capita (tCO2/yr) 1.34




                                 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




                                                                                                                                       30




   1
Procedure for Projections
    • Add country level distributions to obtain regional emissions
      distributions
    • Project forward to 2030 using EIA IEO 2007.
    • Derive a universal individual cap from global target and timetable.
    • Apply individual caps to regions/countries to obtain
      regional/national targets.




                       Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it




                                                                                                                             31




1
Emission path over time for a trajectory that peaks at 33 Gt in 2020 and
                                                    reduces to 30 Gt in 2030




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                                                                                                                         32




1

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Individual Foot Print

  • 1. Sharing Global CO2 Emission Reductions among 1 Billion High Emitters. S. Chakravarty (PEI), A. Chikkatur (Harvard), H. de Coonick (ECN), S. Pacala (PEI), R. Socolow (PEI) and Massimo Tavoni (FEEM and PEI) International Energy Workshop Venice, 18th June 2009 1
  • 2. The challenge of sharing the burden Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it Source: Raupach M. R. et.al. PNAS 2007;104:10288-10293 1
  • 3. What is a fair distribution of emission allowances among countries? • Based on a negotiated outcome? (Kyoto) • Based on cumulative historical contribution to climate change? • Or perhaps on future contribution to the climate problem? • Based on the reduction potentials (geography, climate)? • Based on national per capita greenhouse gas emissions? • Based on the emissions of the individuals in a country? Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 4. What this paper does (and does not) do It does: – Treat every individual in the world the same, regardless of the country they live in – Provide an ordering principle on which to base emission allocation to countries It does not: – Does not include historical responsibility, land use emissions and non-CO2 gases Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 5. How to measure individual emissions ? - Large empirical literature based (Lenzen, Peters, Serrano, Hereenden etc.) points to strong relation between energy/emissions and income – Elasticities from surveys 0.8/1 – Panel from data in this paper 0.72 - Use income distribution data from WB and UN to derive the global distribution of emissions Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 6. Building Carbon Emission Distribution • We fit income/consumption distributions using the sum of two Gamma pdfs on quintiles or deciles data at the country level. • We rescale them to match their nation per capita GDP (in PPP) of 2003. • Assuming income and emissions are related by a power law, we translate them into emission distributions, ensuring that the averages match the national emission inventories. We attribute all production-based national emissions to their individuals on the basis of their income. That is, we assume that the emissions generated by government consumption and the investments in the economy are attributed to individuals according to their income, in the same way those deriving directly or indirectly from consumption. The scheme ignores emissions embedded in inter-regional trade.` Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 7. From income to carbon distributions Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 8. Rank all people in the world, highest to lowest emission-wise 50% 75% Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 9. Mitigating from 2030 BAU Total emissions: 43 GtCO2 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 10. People ranked by personal emissions Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 9 1
  • 11. Determine globally applicable personal emissions cap Individual Emissions Cap Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 10 1
  • 12. Some people exceed personal cap Individual Emissions Cap Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 11 1
  • 13. People in a nation determine national cap Required = + Individual Emissions Cap Reductions National Emissions = + + + + + Target Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 12 1
  • 14. Choose a global target: 30 GtCO2 in 2030 Reduction: 13 GtCO2 = 10.8 tCO2/person/yr Target 30 GtCO2 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 15. Other global targets in 2030 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 16. Regional distributions in 2030 China Rest of world Rest of OECD 30 Gt global cap, 10.8 t individual cap 30 Gt global cap, 10.8 individual cap U.S. For a 30 GtCO2 Magenta 63, 20123cap- Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it on Corso global Milano in 2030, similar population which targets are based for four groupings 1
  • 17. Headroom for the poor • Climate and poverty agenda • Allow carbon poor to raise their emissions to 1 tCO2/cap*yr • What does 1 tCO2/person/yr mean – Electricity: 800 kWh coal-fired power; – Transport: 65km/day; – Cooking: 14 kg LPG/month – X 2 for indirect emissions Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 18. Combine global-emissions cap and individual-emissions floor “30P” in 2030: 30 GtCO2 global emissions cap plus 1 tCO2 floor on individual emissions Individual cap: without floor: 10.8 t CO2 with floor: 9.6 t CO2 1 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 19. Regional targets in 2030 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 20. Conclusion • Focus on individuals to determine national mitigation efforts • Computing carbon emission distributions globally shows large inequalities. Go beyond national averages. • Assuming an individual capping policy, a global target of 30 GtCO2 in 2030 results in about 1 billion people having to reduce emissions, equally found in the US, rest of OECD, China and rest of non-OECD. • The energy needs of the poorest 2.7 billion people can be accommodated with a rather small impact on climate mitigation • In 2030, industrialized countries bear the highest mitigation job, but China (and to less extend Russia and the Middle East) are also held responsible. Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 21. backup Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 22. Emissions embedded in trade (production minus consumption) MtCO2 % of MtCO2 % of country country emissions emissions US -439 -7.3% China 585 17.8% Switzerland -63 -122% India 71 6.9% Australia 57.9 16.5% Mozambique -2.8 -172.4% ANNEX B -822 -5.6% NON 822 8.1% ANNEX B Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it Source: Peters and Hertwich, 2007 1
  • 23. Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 24. U.S. Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 25. A rapidly changing world… China/US ratio Total Emissions Per Capita Emissions Rio:1992 0.48 0.10 Kyoto:1997 0.55 0.12 2007 1.13 0.26 2030 1.75 0.44 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it Source: EIA for the 1992, 1997 and 2030 projections. 2007 estimate is from MNP and BP 24 1
  • 26. Per-capita energy related CO2 emissions (2005) Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it Source: IEA WEO 2007 1
  • 27. Per-capita energy related CO2 emissions (2030) Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it Source: IEA WEO 2007 1
  • 28. Use income distribution data to arrive at individual carbon distributions Country CO2 intensity Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 1
  • 29. Emissions-income elasticity from household surveys and input-output tables Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 28 1
  • 30. Ci = Ai *Ix We will proceed with elasticity of x = 1.0 as the basic idea is independent of the elasticity. Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 29 1
  • 31. From income to carbon distributions Data Source: World Bank’s national surveys on income distribution Population 0 0.1 0.2 0.4 0.6 0.8 0.9 1.0 Income share 0 0.036 0.084 0.20 0.36 0.57 0.71 1.0 Consider Indonesia in 2003 Population (millions) 214.7 GDP per capita (2000 $ PPP) 3167 emissions per capita (tCO2/yr) 1.34 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 30 1
  • 32. Procedure for Projections • Add country level distributions to obtain regional emissions distributions • Project forward to 2030 using EIA IEO 2007. • Derive a universal individual cap from global target and timetable. • Apply individual caps to regions/countries to obtain regional/national targets. Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 31 1
  • 33. Emission path over time for a trajectory that peaks at 33 Gt in 2020 and reduces to 30 Gt in 2030 Corso Magenta 63, 20123 Milano - Italia - Tel +39 02.520.36934 - Fax +39 02.520.36946 - www.feem.it 32 1