Semida Silveira

12.1. THE CHALLENGE OF MITIGATING CLIMATE CHANGE

The climate change problem results from the concentration of greenhouse gases in the atmosphere, mainly an effect of industrial development and fossil fuel utili­zation over the last two centuries. The initial milestones in addressing climate change were the signature of the Climate Convention (UNFCCC) in 1992, and the nego­tiation of the Kyoto Protocol in 1997. The overarching objective of the Climate Convention is the stabilization of greenhouse gas emissions at levels that can prevent dangerous human interference with the climate system (UNFCCC, 1992). The Kyoto Protocol defines steps in the implementation of the Climate Convention (Kyoto Protocol, 1997). Besides defining the emissions reduction target of 5 per cent compared with 1990 levels, the Kyoto Protocol sets the institutional basis for the formation of greenhouse gas markets, and creates mechanisms for the full parti­cipation of all parties to the Convention and the Protocol in the implementation of agreed objectives.

Today, many governments consider the mitigation of climate change the most difficult challenge of the next few decades. One of the underlying difficulties is the broad nature of the problem which refers not only to the globality of the natural phenomena that affects climate on earth, but also to the implications that climate change mitigation and adaptation may have on the international economy and development in general. Another difficulty is that the issue of environmental sus­tainability, climate change included, requires the scrutiny of development strategies, technologies, consumption behavior, life styles, and even the institutions that have served as the basis to build modern society. Thus the climate change problem requires global solutions, and efforts from all nations.

Measures to mitigate climate change touch the basis of economic development, as mitigation measures are likely to have impact on the way major sectors such as energy, transportation, agriculture and forestry operate and are further developed. It is difficult to calculate with precision the overall costs of mitigating climate change, although many efforts have been made in this direction. Initially, mitigation measures were perceived as very costly and extremely risky for the global economy

169 Bioenergy — Realizing the Potential

© 2005 Dr Semida Silveira Published by Elsevier Ltd. All rights reserved.

due to the number of interventions and coordination of efforts necessary. This made many corporations, governments and specialists extremely negative about the whole issue. However, after a decade of debates and initial attempts to implement mitigation measures, a consensus has evolved around the need to incorporate climate change issues into public and private development strategies.

This general consensus has served not least to engage the private sector into the climate change debate in a fruitful way. Yet, many efforts are still needed to make a quantitative change in the current scenario of greenhouse gas emissions. In a world of unequal development, a major challenge is to find a fair way of distributing the burden of measures among nations. How to shift the development path so as to achieve a scenario of emissions stabilization without constraining the development of poor nations? The projected growth of developing countries implies significant increases in greenhouse gas emissions which will have to be partly mitigated through the choice of low-emissions technology systems and partly compensated with reduced emissions in industrialized nations. How to accomplish that?

In an initial effort, the Kyoto Protocol attempts to create an institutional plat­form for cooperation among nations in measures to mitigate climate change. Three mechanisms, the so-called flexible mechanisms, are created: emissions trading (ET), joint implementation (JI), and clean development mechanism (CDM). The operation of these three mechanisms aims at reducing mitigation costs and accelerating the pace of emissions reduction. Emissions trading allows for carbon credits to be traded among companies and countries to facilitate meeting emissions reduction targets. Joint implementation provides the basis for industrialized countries and economies in transition to collaborate in achieving targets jointly. Finally, the CDM provides the opportunity for developing countries to participate in projects to reduce actual or expected greenhouse gas emissions.

The work on flexible mechanisms has engaged many academics and specialists intensively, and the literature on the subject is already vast. We make no attempts to review all the issues involved in the climate change debate, or to analyze possible outcomes of the flexible mechanisms. This chapter provides only a brief introduction to the context of the global climate change agenda and to CDM in particular. Together with Chapter 13, we hope that it will help readers appreciate the examples of CDM projects provided in Chapters 14, 15 and 16. The latter are pioneer projects developed in Brazil and Ghana which give an idea of how CDM can contribute to promote bioenergy in developing countries.