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Implications of Paris agreement on developing countries

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Rabia Ghani

on 25 September 2016

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Transcript of Implications of Paris agreement on developing countries

Implications of Paris Agreement on Power Industry in Developing Countries
by Engr. Rabia Ghani
The Paris Agreement:
"A universal pact that sets the world on a course to a zero-carbon, resilient, prosperous and fair future. "


PARIS, FRANCE.
Years have passed since the first treaty, signed at the 1992 Rio Earth Summit, when countries agreed to limit their emissions of greenhouse gases. The intervening years have seen far reaching changes in the understanding of, and response to, climate change. Increasing knowledge of climate change impacts has prompted extensive responses from governments, business and civil society


Nine out of ten Europeans, for example, now think that climate change is a serious
problem. Many countries have developed comprehensive legislation on climate.
The UK was the first country, with its historic 2008 Climate Change Act, to set statutory targets for emissions reduction.
Mexico now has a General Law on Climate Change;
Nigeria has a National Climate Change Policy and Response Strategy;
China will shortly consult on a national climate change law.
Altogether, 66 countries, which represent around 88 per cent of global emissions, now have climate legislation in place.


Indonesia is reorienting energy production from serving primarily export markets to meeting its growing domestic consumption. Indonesia's energy industry has faced challenges in recent years from regulatory uncertainty and inadequate investment.
Indonesia, with a population of 253 million people in 2014, the fourth most populous country in the world, behind China, India, and the United States.
Formerly a net oil exporter in the Organization of the Petroleum Exporting Countries (OPEC) for several decades, Indonesia now struggles to attract sufficient investment to meet growing domestic energy consumption because of inadequate infrastructure and a complex regulatory environment.
INDONESIA
According to the characteristics stated previously, developing countries would face obstacles in following the Paris Agreement due to the reasons of them being categorized as "developing".
The most polluted cities in the world are in Asia. Metropolitan centers have pollution levels that exceed 5-6 times the level recommended by WHO, which makes Asia the most polluted continent.
The reason behind this fact is that developing countries are using different ways to generate energy which is causing harm to their environment such as burning of fossil fuels.
Developing countries cannot afford the use of renewable energy.
Even though, renewable energy lasts longer, is reliable and is environment friendly, its one time cost and maintenance is quite expensive.
Paris agreement & Developed countries
A strong international agreement will:
• Allow countries to push ahead with strategies and policies for carbon
emissions reduction, knowing that others are doing likewise;
• Provide a predictable framework for a global low carbon economy;
• Allow developing countries to pursue low carbon development strategies
and adapt to the effects of climate change;
• Improve international efforts to protect the natural environment.
Why is The Paris Agreement important?
The Intergovernmental Panel on Climate Change published its Fifth Assessment in 2014, summarising the work of thousands of scientists across the world.
Concentrations of carbon dioxide and other greenhouse gases are now higher than they have been for nearly a million years, long before human society began. The burning of fossil fuels is the main reason behind this increase.
Without strong action, temperatures are very likely to exceed the 2 degree celsius target that governments have committed to. This will result in sea level rises, heatwaves, loss of snow and ice cover, disruptions to agriculture and food production, and greater extremes of drought and rainfall.
In its 2013 report, for the first time the IPCC put a number on the total amount of carbon that can be emitted, while keeping within the 2 degree celsius target.
Keeping within this limit would require the emission of no more than 880 gigatonnes of carbon. This is, in effect, a global carbon budget.
Yet, by 2011, 530 gigatonnes, or nearly two thirds of the total budget, had already been spent.
Emissions must peak soon, and then decline steeply, to stay within the 2 degree celsius limit.
Why 2 degree celsius?
How did we reach to the Paris agreement?
What is the broader national action taken over the years?
Timeline
Out of all the United Nations Member Countries, 196 countries of the world are now signatory to the UN Framework Convention on Climate Change (which was born at the Earth Summit in 1992) and have finally come to a consensus agreement on climate change at the Paris summit.
Participation in the
Paris Agreement 2015
Twenty-three years after the Earth Summit of 1992, it took just a few minutes for the Paris climate agreement to be adopted on December 12th at COP21.
Afghanistan
Albania
Algeria
Andorra
Angola
Antigua and Barbuda
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Central African Republic
Chad
Chile
China
Colombia
Comoros
Democratic Republic of the Congo
Republic of the Congo
Cook Islands
Costa Rica
Côte d'Ivoire
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
European Union
Fiji
Finland
France
Gabon
Gambia
Georgia
Germany
Ghana
Greece
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
Hungary
Iceland
India
Indonesia
Iran
Iraq
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kiribati
North Korea
South Korea
Kuwait
Kyrgyzstan
Laos
Latvia
Lebanon
Lesotho
Liberia
Libya
Liechtenstein
Lithuania
Luxembourg
Namibia
Nauru
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
Niue
Norway
Oman
Pakistan
Palau
Palestine
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
South Sudan
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Syria
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Tuvalu
Uganda
Ukraine
United Arab Emirates
United Kingdom
United States
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Yemen
Zambia
Zimbabwe
UN member countries
Main Objectives of
Paris Agreement 2015
Limiting climate change in the long term
Limit temperature rises to less than 2 degree celsius, much less 1.5 degree celsius, above pre-industrial levels.
Emissions reduction pledges for the period up to 2020 have been made by more than 90 countries but, added together, these are, in the words of the UN, “far from sufficient to close the emissions gap.
The Paris agreement was distributed on 12th December 2015 at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21/CMP11).
It consists of 29 Articles which are needed to be followed by the countries which are signatory to the UN Framework Convention on Climate Change
What does the Paris Agreement include?
According to The World Bank, a developing country is one in which the majority lives on far less money—with far fewer basic public services—than the population in highly industrialized countries. Five million of the world's 6 billion people live in developing countries where incomes are usually under $2 per day and a significant portion of the population lives in extreme poverty (under $1.25 per day).
Definition of a developed country
Characteristics of a developed country
That is largely rural or with a population that is migrating to poorly equipped cities, with a low-performing economy that is based primarily on agriculture and where non-agricultural jobs are scarce and low-paying;
Where the populace is often hungry and sorely lacks education, where there is a large knowledge gap and technological innovation is scarce;
Where health and education systems are poor and/or lacking and where transportation, potable water, power and communications infrastructure is also scarce;
Where the amount of government debt is unsustainable;
Where the land mass, population, and domestic markets are small and far disbursed, often on remote islands or in island groups, susceptible to natural disasters, with limited institutional capacity, limited economic diversification; and/or
Where government has collapsed and armed conflict has left a fragile state with weak institutions and policies, either unwilling or unable to provide basic social services, especially for the poor. It is estimated that a third of people living in absolute poverty around the world live in fragile states in a vicious cycle of poverty and conflict.
For this presentation, one Asian country has been chosen to discuss the implications of Paris Agreement on Power Industry in Developing countries. And it is,
INDONESIA
Paris agreement & Developed countries
Energy Mix - Indonesia
Indonesia's total primary energy consumption grew by 43% between 2003 and 2013, according to the Indonesian government.
The country's petroleum share, although decreasing, continues to account for the highest portion of Indonesia's energy mix at 38% in 2013.
In the past decade, coal consumption more than doubled, surpassing natural gas consumption and becoming the second most consumed fossil fuel as Indonesia turned to less expensive sources of indigenous fuels.
Indonesia intends to reduce its reliance on petroleum in its energy consumption portfolio to a 25% maximum share while raising the coal and natural gas portions to at least 30% and 22%, respectively, by 2025.
Energy consumption and trade
Indonesia's energy sector continues to influence the economy to a large degree, although the decline in oil and natural gas production during the past few years has lowered its impact.
Oil and natural gas alone constituted 15% of merchandise exports in 2014, a decline from 23% in 2000.
In addition, revenue from the oil and gas sector, which historically accounted for about 20% of total state revenues, fell below 20% after 2008 and were less than 12% in 2014, despite high oil prices during most of the year.
The significant drop in global crude oil prices, which started in June 2014, is expected to reduce Indonesia's oil and gas revenues by at least one-third in 2015.
A combination of healthy growth, some market reforms, higher hydrocarbon prices, and a stable government encouraged rapid investment, particularly in the commodity sector until around 2010.
Factors that have greatly hindered foreign investment in the past few years include more technically challenging oil and natural gas plays, rising domestic energy demand and accompanying limitations on exports, higher taxes on exploration and production, and lengthier processes to procure and renew contracts.
Energy consumption and trade
As it is observed from the previous slides how the major part of the economy of Indonesia as well as most of the developing contries depends on the energy resources, which are responsible for carbon products and greenhouse gases in result.
Countries have already agreed to scale climate finance up to $100 billion a year by 2020.
Therefore, developing countries would be needing assistance from the Green Climate Fund, which is established as the delivery mechanism for a significant portion of that funding.
Conclusion
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