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What have been the Russian Negotiating Positions on the Kyoto mechanisms?
Oppose
Quantitative restrictions on
Kyoto mechanisms
Taxes on the implementation of Kyoto mechanisms
Special status of CDM as it discriminates against emissions trading and JI
Treating RussiaÕs emission surplus as Òhot airÓ
ÒSupplementarity owing to negative effects on development of market
Support
Early start of JI & emissions trading
Flexible approach to compliance
Forests as carbon sinks
International support for capacity-building in EITs
Regulatory role for state & government involvement
Reinvestment of emission trading revenues into climate change mitigation projects
Banking of carbon credits and forward contracts

What have been the arguments in Russia for and against ratifications of Kyoto Protocol?
For
Climate change impacts: permafrost, sea level rise
Enhanced FDI from JI
Revenue from likely sales of RussiaÕs emission surplus
Investments via Kyoto mechanisms could support modernization & innovation in energy sector
Improvements in energy efficiency crucial for future economic growth
GHGs reductions could improve domestic physical-ecological environment
Russian ratification of Kyoto could improve RussiaÕs image as a supporter of global multilateralism
Ratification and implementation may smooth the way for RussiaÕs entry into the WTO

What have been/were the arguments in Russia for and against ratifications of Kyoto Protocol?
Against
Climate change impacts may be positive for high Latitude Russia
Extent of anthropogenic climate change is (very) uncertain
Revenues from ratification and compliance are likely to be low
Costs would be too high for domestic compliance
Kyoto Protocol unfair because not all countries have taken on emission (reduction) commitments
Second phase or post-2012 GHG limits could conflict with RussiaÕs ambitious economic growth goals
US withdrawal, makes Kyoto Protocol nearly pointless
Kyoto Protocol is at best ineffective and more radical approaches are necessary

Who were/are RussiaÕs Kyoto stakeholder players?
What has been RussiaÕs history regarding Kyoto?
Duma (2003) WWF (Dec. 2003) survey of Duma - <25% favor, >50% ratification possible, >25% opposed
2003  250 RAS members sign NGO petition favoring adoption of Kyoto
Jan. 2004 Chair State DumaÕs international affairs committee says parliamentary hearings would be held spring 2004
Lots of controversy late winter to autumn 2004
May 2004, Putin has  WTO accession talks with EU
Sept 23, 2004, Ministry of Natural Resources formally recommends Kyoto Approval
Sept 27, 2004, Illarionov compares Kyoto Protocol to Fascism
Sept 30, 2004, Russian Cabinet of Ministers approves federal law to ratify Kyoto
Nov 18, 2004, Russia ratifies Kyoto
Feb 16, 2005, Kyoto Protocol enters into force
Feb 2006 161 nations have ratified Kyoto Protocol

Andrei Illarionov, still frame from NTV channel
Meeting of the Russian Cabinet of Ministers / Frame from NTV Channel
Why did Russia ratify the Kyoto Protocol?
Marrakech 2002, Russian bargains hard for 30% drop below
    1990 baseline levels for calculating Òcarbon creditsÓ, due to
    steep economic decline
Emissions trading, ~$10 Billion over next 10 years
AAUs - Assigned Amount units
JI - Joint Implementation
CDM - Clean Development Mechanism
Renewal energy projects, geothermal, winds, biomass
Decision probably more political process than scientific or policy debate
EU support for WTO membership

Cap and Trade:
 Data for Two Case Studies
Carbon Intensity by Region, 2001-2025 (Metric Tons of Carbon Equivalent per Million $1997)
Impacts of Economic Reform  & Technical Energy Savings on Energy Consumption
Scenarios for Russian CO2 emissions assuming growth rates of 2, 4, 6, and 7.2% (GDP doubling in 10 years) for fast and slow intensity improvements
Kyoto Cross
Russian GDP and Energy Intensity Projections
World energy-related CO2 emissions in 2003, by country (25.2 GtCO2)
RUSSIAN FEDERATION Fossil Fuel CO2 Emissions (in 1000s metric tons C).
        Total      GAS     Liquid     Solid     Gas       Cement     Per Capita     Bunker
Year     CO2      Fuels    Fuels      Fuels    Flaring  Production  Emission Rate*   Fuels
1992    541511    226466   168274    134640     3740       8391          3.65           0
1993    494142    217281   143272    123856     2947       6786          3.34           0
1994    427246    195526   110672    113536     2453       5059          2.89           0
1995    410370    194628    99767    108308     2704       4964          2.78        7857
1996    407559    198815    90714    111693     2556       3781          2.76        7436
1997    402240    194597   100541    100982     2489       3631          2.73        7303
1998    396036    194221   101599     94191     2489       3536          2.70        6859
1999    394887    196469    94826     97308     2422       3862          2.71        7090
2000    401144    199245    95968     99170     2354       4406          2.73        7454
2001    400068    203194    97113     94960        0       4801          2.77        7666
2002    397964    203398    94670     94770        0       5127          2.76        7954
2003    415454    213981   100359     95539        0       5576          2.90        8082
2004    415951    216517    95241     92427     5551       6215          2.89        8201
*metric tons of C
Source: Gregg Marland, Tom Boden & Robert J. Andres, ÒNational CO2 Emissions from Fossil-Fuel Burning, Cement Manufacture, and Gas Flaring: 1751-2004,Ó Carbon Dioxide Information
Analysis Center(CDIAC), Oak Ridge National Laboratory, Oak Ridge, Tennessee 37831-6335, August 17, 2007.

Greenhouse gases (in CO2 equivalents) in Russian Federation
 by sectors, 1990 & 2004.
Illustration 2. Share of different greenhouse gases in total discharge in Russia (in CO2 equivalents), 1990 & 2004.
Fig. 5.  Dynamic discharge of greenhouse gases 1990, 1998, 2000-2004, without consideration of land use, land use change and forestry.

Source: 4th National Communication in Compliance with Articles 4 & 12 of the Framework Convention of United Nations about Climate Change and Article 7 of the Kyoto Protocol (Moscow 2006), p. 9. In Russian.
Discharges of Green House Gases in million of metric tons
 Table I.13.  Characteristics of Scenarios of Emissions of Kyoto Gases in the Russian Federation to 20201
Estimated GHG emissions in 2004 & potential for reductions in RussiaÕs natural gas sector & gas flaring
Import Economic Growth factors
Per-capita economic & emission growth rates for Economies in Transition, 1995-2001.
Key Kyoto mechanisms
International Emissions Trading (IET)
    Trading of assigned amount units (AAUs) amount
    Annex B countries
Joint Implementation (JI) Jointly agreed project investments by one Annex 1 country in another, leading to emission reductions.  Emissions savings (in ERUs) credited to investing country, debited against host country
Clean Development Mechanism (CDM) Jointly agreed project investments by Annex 1 countries in non-Annex (developing) countries.  Resulting emissions savings classified as certified emission reductions (CERs) , investing country can use to offset against Kyoto commitments.
Marrakech Accords 2001
Track 1 projects - host country approves
Track 2 projects - evaluated by independent organization

Generic  potential JI project types by sector
What are/were the elements/needs for Russian institutional compliance?
PAMs - implement domestic policies and measures
Implement annual GHG inventories according to IPCC guidelines
Establish a registry to track domestic emissions and implementation of the Kyoto mechanisms and commitments under Kyoto
Report all of above to UNFCCC Secretariat

Status and Importance of Regional GHG Inventories in Russia
What were/are the Russian major compliance/data gap problems?
Forestry inventories not consistent with IPCC requirements, quality varies between regions
Data for gas flaring and coal-mine methane not available
Data for waste sector not available
Data for agriculture not available
Some problems with industrial activity data
Lack of data for transport, municipal and residential fuel consumption

Russian Kyoto Compliance Summary
Russian Challenges to Creation of a Strong Climate-Change-Related Policy and Strategy
Revamping the Economy
Perfecting market policy
Fighting corruption
Raising peopleÕs well-being
Strengthening civil society institutions (rule of law)
Conflicting perspectives and approaches regarding (regional) development
Conflicting perspectives and approaches to environmental problems and management
The harsh environment, especially ÒThe NorthÓ
Much of country has average temperature <5¼C
High energy expenditures for heating and transport
Energy needs are and for foreseeable future will be met by traditional CO2 emission-heavy hydrocarbon sources

Significant Results Arising from Russian Ratification of Kyoto
More laggard nations motivated to ratify Kyoto treaty – 18 countries ratified between 18 November 2004 and April 2005, including 7 OPEC countries
Helped launch the regime of obligatory quantified limitations on GHG emissions by most Annex I countries
Provided vigorous momentum to creation of the market for carbon credits
Provoked and diversified further international dialogue on responding to climate change

Benefits to Russia from Kyoto Ratification
Elevated Russia as international power player
Reinforced RussiaÕs diplomatic positions at multilateral climate change talks
Better positions Russia for influence in post-2012 climate negotiations
Mechanism for boosting technological renovation of national economy
GIS and CDM investments
Revenue for sale of carbon credits
May raise climate change issue in Russian economic and political priorities

Key Challenges to Russia as a Result of Its Ratification of Kyoto Protocol
Significant economic burden
Potential serious conflicts with RussiaÕs economic growth targets
Future losses in Russian oil sector – largest source of RussiaÕs foreign currency
Uncertain market for Russian carbon credits
Competition from East European nations and Ukraine
Reduced demand without U.S. accession to Kyoto
Technological, institutional, legal, organizational limitations and difficulties with compliance
Need to marry and bring into alignment all climate change policy components with other strategic development goals and tasks

Some unanswered Big Questions
How would Russia affect the EU Emission Trading Scheme?
How would have RussiaÕs ÒHot AirÓ affect the price of GHG credits?
Carbon trading & social justice
Clean Development Mechanism vs Clean Development Fund
International ÒHot AirÓ trading
Will Role of U.S. as Kyoto opponent change
What Will Be Role of World Bank

Focusing forward
Russian energy issues will dominate over climate change issues
In near term Russian political considerations with dominate over economic ones as long as Russia is not well integrated into the global economy - a mixed blessing
Russia will move slowly on Kyoto implementation institutions and given the USÕs intransigence on Kyoto and climate change issues this is not surprising
Ukrainian actions could speed up Russian implementation
Other foreign pressure e.g., EU will likely not be productive
Russia will remain skeptical of market approaches, entitlement issues, mismatch with developed countries regarding institutional and legal clarity

Climate Change in the Arctic:
Beating a retreat

The Economist
September 24th, 2011
p. 99
http://www.economist.com/blogs/dailychart/2011/09/melting-arctic-sea-ice-and-shipping-routes
The North-South Ecological Space Problem
What is the major obstacle to effective climate change control?
Military spending
2007 U.S. Domestic Budget Proposal


News from the Climate Talks (COP-17) in South Africa
EEZ Boundaries
Gorbachev calls
for new vote
in RussiaÕs
disputed elections
Not What Mr. Putin Planned
Natural Gas
Map of Transneft and CIS Main Oil Pipelines
Russian Natural Gas Production