1.0 Lecture 1 – Environment and Energy Policy

1.1 Content and Rationale

Overlap between energy and environmental law Prudent and rational utilization of natural resources (non-renewable resources, waste/cost,

energy security, energy/environmental justice). Preserving, protecting and improving the quality of the environment. Protecting human health. Worldwide environmental problems, in particular combating climate change

o anthropogenic activities, “Greenhouse effect”, Global warmingo Since industrial revolution (mid-18th Century), most significant in last half century

Mitigate and adapt: see 2011 and 2012 Special Reports of the IPCC.

1.2 Development of Policy and Law UN Climate Change Convention

Intergovernmental Panel on Climate Change (IPCC) First IPCC Report in 1990 – provided scientific basis for action endorsed by international

community of states in New York in 1992 resulting in the UN Framework Convention on Climate Change (Climate Change Convention)

Over 190 Parties including EC. Ultimate objective: “to achieve … stabilization of greenhouse gas concentrations in the

atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” (see art. 2 of the Climate Change Convention)

Aim to return to 1990 levels of greenhouse gas emissions (see art. 4(2) (b)). But, no commitment

Conference of the Parties (COP) – decision making body Third COP in 1997 in Kyoto: parties agree the Kyoto Protocol

1.3 Kyoto Protocol to the Climate Change Convention (1997):

Background

“establishment of a global response to climate change, stimulation of an array of national polices, and the creation of an international carbon market” (IPCC’s Fourth Report)

Second IPCC Report in 1995 – important milestone in efforts to negotiate the 1997 Kyoto Protocol

Entered into force on 16/2/2005

1.4 Kyoto Protocol: Key Features

Article 3:

“The Parties included in Annex I shall, individually or jointly, ensure that their aggregate anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed in Annex A do not exceed their assigned amounts, calculated pursuant to their quantified emission limitation and reduction commitments inscribed in Annex B and in accordance with the provisions of this Article, with a view to reducing their overall emissions of such gases by at least 5 per cent below 1990 levels in the commitment period 2008 to 2012.”

Emission reduction to 5% below 1990 level in period 2008 to 2012 Specified targets for Developed Countries (Annex 1/B): Australia, Canada, European Community, Iceland, Japan, Liechtenstein, Russian Federation, New Zealand, Norway, Ukraine, United State of America (not Brazil, India, China).

8% reduction for EU and of that Ireland contributes +13% Variety of sectors including, controversially, land use, land-use change and forestry

(LULUCF) – carbon sinks – Removal Units (RMUs) Flexible mechanisms

o Joint Implementation (JI)o Clean Development Mechanism (CDM)o Emissions trading

1.5 Kyoto Protocol: Flexible Mechanisms

Key to implementation of Protocol Annex 1/B states can get credits for emission reduction in other states Can be better emission reduction per investment in underdeveloped countries (e.g.

CDM) Marrakesh Accords: flexible mechanism should supplement domestic action Public funding and private sector funding/investment Carbon credits/International Carbon Market

1.6 Flexible mechanisms: Joint Implementation (JI)

Article 6 of Kyoto Protocol (see articles 3 and 6(1)(a-b)) Targeted at developed nations Project based Emission Reduction Units (ERUs) Invest in other Annex 1/B states’ projects which reduce greenhouse gases or enhance

carbon sinks Must be additional to that which would otherwise occur Market forces: more technologically-efficient sponsor less Track 1: host country verifies emission reductions. Host must meet eligibility

requirements. Track 2: Joint Implementation Supervisory Committee accredits and “independent entity”

to verify Verified emission reductions result in issued ERUs which are transferred to sponsor

nation

1.7 Flexible mechanisms: Clean Development Mechanism (CDM)

Article 12 of Kyoto Protocol Targeted at developing nations Project based Certified Emission Reductions (CERs) Host is a party not included in Annex 1 Cost effective investment for Annex 1 Countries Unilateral CDM: sell CERs from self financed CDM project on the international carbon

market. “Operational entities” validate projects and certify emission reductions.

1.8 Flexible mechanisms: Emissions Trading

Article 17 of Kyoto Protocol (see article 3 and 17) Annex 1 states trade in Assigned Amount Units (AAUs) Annex 1 state can sell greenhouse gas unused quotas to other Annex 1 states which can be

used by the later to contribute to its emission reduction commitment under the Kyoto Protocol.

Marrakesh Accords extended tradable units to included CERs, ERUs and Removal Units (RMUs) obtained from LULUCF forestry management and agriculture projects.

Logged and tracked within a system of registries to maintain a record of transactions in the carbon market.

Feed into the International Transaction Log (ITL) administered by the Secretariat of the Climate Change Convention.

EU’s Community Independent Transaction Log (est’d 2005) linked to the ITL since October 2008

1.9 Daho Amendment to the Kyoto Protocol

Agreed at the UN Climate Change Conference in Doha, Qatar in December 2012. Established the second commitment period from 2013 to 2020 Voluntary pledges by more than 80 countries, including the United States, China,

India, South Africa and Brazil, to limit their emissions by 2020. EU agreed to 20% reduction by 2020 compared with 1990 levels. (Ireland: 20%

reduction compared with 2005 levels) These pledges, together with the formal targets of the 38 Parties taking part in the

Kyoto Protocol's second commitment period, mean that more than 80% of global emissions are covered by targets or pledges up to 2020.

1.10 UN Climate Change Conference in Warsaw

November 2013 Governments took further essential decisions to stay on track towards securing a universal

climate change agreement in 2015 (beyond 2020). The objective of the 2015 agreement is twofold:

o First, to bind nations together into an effective global effort to reduce emissions rapidly enough to chart humanity's longer-term path out of the danger zone of climate change, while building adaptation capacity.

Second, to stimulate faster and broader action now.

1.11 UNCCC in Lima (COP 20)

14 December 2014 A new 2015 agreement on climate change, that will harness action by all nations, took a

further important step forward in Lima following two weeks of negotiations by over 190 countries.

Nations concluded by elaborating the elements of the new agreement, scheduled to be agreed in Paris in late 2015, while also agreeing the ground rules on how all countries can submit contributions to the new agreement during the first quarter of next the year.

These Intended Nationally Determined Contributions (INDCs) will form the foundation for climate action post 2020 when the new agreement is set to come into effect.

During the two week 20th Conference of the Parties, countries also made significant progress in elevating adaptation onto the same level as action to cut and curb emissions.

1.12 Paris Agreement of COP21

To stop the negative consequences on climate change, the 196 Parties to the UN Framework Convention on Climate Change adopted the Paris Agreement on 12 December 2015 at the UN Climate Change Conference in France.

The agreement will be open for signature in New York on 22 April 2016 at UN Headquarters for one year, thereafter it can be ratified and comes into force once at least 55 Parties have ratified it.

A goal driven process agreement Parties committed to take ambitious action to keep global temperature rise to below 2

degrees Celsius (1.5 targeted) by the end of the century. Focus also on ‘climate resilience’ and ‘finance flows’. (Article 2)

Common but differentiated responsibilities of countries. COP will do a ‘Global stock take’ every 5 years 188 countries representing close to 100 percent of global emissions submitted their

Intended Nationally Determined Contributions. NDC will be progressive and every five years.

1.13 EU Measures in the Energy Sector

1. Legal basis derives mainly from articles 191(1) and 191(2) of the Treaty on the Functioning of the European Union (TFEU):

2. “Article 191 (ex Article 174 TEC)1. Union policy on the environment shall contribute to pursuit of the following

objectives:o preserving, protecting and improving the quality of the environment,o protecting human health,

o prudent and rational utilization of natural resources,o promoting measures at international level to deal with regional or worldwide

environmental problems, and in particular combating climate change.2. Union policy on the environment shall aim at a high level of protection taking into

account the diversity of situations in the various regions of the Union. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay …”

1.14 EU Measures in the Energy Sector

One of the most advanced policy areas of EU Kyoto Protocol

o Decision 280/2004/EC concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol

Emissions Tradingo Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance

trading within the Communityo Directive 2008/101/EC amending so as to include aviation activitieso Directive 2009/29/EC amending so as to improve and extend the greenhouse gas

emission allowance trading scheme of the Community (the New EU Emissions

Trading System Directive). Part of the EU Climate Change Package in 2009. Combined heat and power

o Directive 2004/8/EC on the promotion of cogeneration based on a useful heat demand in the internal energy market

o Directive 2006/32 on energy end use efficiency and energy serviceso Directive 2012/27/EU on energy efficiency repealed Directives 2004/8/EC and

2006/32/EC since June 2014) and amended Directive 2009/125/EC (see below).

1.15 EU measures in the energy sector: Climate Change Package

First attempt to create a comprehensive European legal regime covering the carbon and renewable energy sectors

Covers carbon trading, renewable technologies, biofuel, carbon capture and storage Directive 2009/29/EC (see above) Decision No 406/2009/EC on the effort of Member States to reduce their greenhouse gas

emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020

Directive 2009/28/EC on the promotion of the use of energy from renewable sources Directive 2009/31/EC on the geological storage of carbon dioxide (note: outside energy

sector) Directive 2009/30/EC introducing a mechanism to monitor and reduce greenhouse gas

emissions (Biofuel Directive) Regulation (EC) No 443/2009 as amended setting emission performance standards for

new passenger cars (Emissions Standards Regulation)

Alsoo Directives and Regulations on the energy labeling of applianceso Directive 2009/125/EC establishing a framework for the setting of eco design

requirements for energy-related productso Energy Performance in Buildings Directive (DIRECTIVE 2010/31/EU)