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Public transport and Carbon Trading – some reflections
Overview 1 An overview of GHG and the Kyoto Mechanisms 2 EUTS and other cap and trade emission trading systems – a global approach? 3 UITP activities in this field 4 Potential for Public Transport actors 5 Debate .
Clean Development Mechanism (CDM) .Joint Implementation (JI) .An overview of GHG and the Kyoto Mechanisms .Emissions trading such as the EUTS -The difference between the Kyoto mechanisms and the EUTS is .Transactions and gains are usually higher from this market .EUTS is a cap and trade system based on setting the level of emissions allowed from a particular sector -The voluntary market requires different verification such as ‘Gold Standard’ . -Three main financing mechanisms within the protocol are: .Kyoto is a based on offsetting (financing an equivalent of emission reductions with another actor in another place) .7 Gases covered – Methane and Carbon dioxide most important to the transport sector -The Kyoto protocol came into force in Feb 2005 and will run out in 2012 and the next agreement period will be a key output of the UNFCCC meeting in December in Copenhagen.
frequent clean transport options that increase their quality of life Other sectors such as energy. power generation or cement are already trading several mechanisms. Over the past two years the carbon market has doubled in value reaching 120 billion US$ (twelve times its value in 2005) .The Carbon Market is a ‘virtual’ marketplace where emissions are traded for money CO2 Framework Politicians and Decision Makers Looking to reduce emissions from transport and investment in PT Operators and Industry Looking to show the most promising and affordable technologies and modal shift towards public transport World Citizens Looking for affordable.
C A T E G O R Y Technical Behaviour change Fuel efficiency Fleet composition Running environment Pricing Land use Education Transport supply A C T I O N Source of electrical power e. vehicle efficiencies) and behavioural change solutions (e. mode shift). Hybrid buses CNG Bio gas Segregated ROW Off-peak PT pricing Congestion /road pricing Zoning & Implementation Run more PT services to engender a mode shift Public ‘Soft’ actions Information/ eg travel smart communication campaigns .g.g.Usual priority initiatives for managing PT to reduce future GHG emissions Strategies generally fall into two categories: technical solutions (e.g.
CDM and trading are also a sort of offset) and occur mainly at organisational/company level e. UK and France all at various stages …. . oil and gas. New Zealand. mining and manufacturing) a mandatory credit and baseline system with relative targets at an entity level or the recent revenue neutral carbon tax introduced in British Columbia Japan – small voluntary trading scheme have been introduced but huge opposition from industry USA – not ratified Kyoto but will certainly play a major role in the post 2012 regime and already there are a variety of voluntary or mandatory local and regional schemes (Regional GHG Initiative RGGI and the Climate Action Registry) … Australia.Examples of Carbon Schemes .g. Selling/ auctioning credits or offsetting carbon from air travel .Carbon exchanges – Bluenext.CO2 tax (+/.Voluntary offset schemes – covers a wide range of schemes (note: the Kyoto mechanisms of JI.6€) applicable if CO2 reductions are not achieved or companies can opt to join a C&T scheme Canada – covering large stationary emitters (power-thermal electricity.National Schemes – Switzerland . Chicago Climate Exchange CCX usually at a county or provincial level (eg King County USA) .7.
Main type of ‘credits’ available depending on the scheme Name ER VER REC CFI CER Related to mandatory ‘C&T’ mechanisms Central Authority Emissions Reduction None Verified Emissions Reduction Renewable Energy Certificate Carbon Financial Instrument Certified Emissions Reduction Verification by a third party Various voluntary or mandatory usually US or Australia based Chicago climate exchange United Nations within scope of CDM ERU NGAC Emissions Reduction United Nations within scope of JI Unit New South Wales Greenhouse Credit New South Wales Greenhouse Gas Abatement Scheme .
. .Both the CDM and the JI projects need support at national governmental level but the ‘The Bali Road Map’ approved in Dec 2007 opened the way for a sectorial approach. health. .g.Main focus is on technology based reductions and there is limited methodologies available to monitor. measure and report long term behaviour change such as ‘eco driving’. however: . or to include stationary facilities or should co benefits be included such as displaced trips.Stationary transport infrastructure will most likely be included in some national schemes (e.Aviation will be included into the EUTS (2011) . UK).Major hurdles on setting the base line and agreeing the boundaries of calculating the emissions (only ‘tailpipe’ or scope 1 based on energy use for operations.Public transport and carbon trading In general transport is ‘excluded’ and urban public transport in particular. .Almost no JI projects from transport and only 2 in CDM . air quality etc).
The issue of permanence of emission reductions is not resolved .Difficulties in setting the baseline and in showing additionality to apply for UNFCCC approved projects . . in voluntary market and at a national level – is not resolved (not only for transport) .Verification and costs of registration (range for a CDM project is 5 000 – 30 000€ just for registration and sometimes if it is verified by the UNFCCC it can cost more to verify than the credits generated…making smaller projects more attractive as costs are lower) often accompanied by a two year wait in the ‘pipeline’.Calculation of CO2 emissions – in absolute terms or for offsetting .At present the amount of money generated is minimal .What are the stumbling blocks for transport and PT in particular? .Guarantee of single sale of emission reductions (reductions should not be double counted i.e.
maintenance. It is often easier to calculate and then compare the emissions that are created during operation. overestimating the occupancy rate can radically reduce the emissions per passenger. Vehicle Fleet Composition and Characteristics: Even within modes.g. this will have implications when comparing modes where one has little or no direct emissions (see ‘energy generation’ below). It should be clear which of these elements are included within a comparison. speed variations. However. CO2 versus Greenhouse Gases: CO2 makes up a large proportion of the greenhouse gases emitted from transport. accelerating and decelerating.Barriers to setting the base line and comparing CO2 emissions Occupancy Rate/Load Factor: As emissions are generally calculated as g/pkm. the many variables ultimately affect the amount of CO2 emitted. Accurate occupancy rates are therefore required to give a realistic estimations of tonnes of CO2 avoided but there are difficulties in collecting actual occupancy/load data. including hydroelectric (low CO2). As a wide variety of vehicle makes and models are often used by an operator. cruising and breaking sometimes to do with driving style or traffic conditions. . operation. Public transport operators do not necessarily have any influence over power generation. Driver Characteristics: The way in which a vehicle affects the fuel consumption. rail). This includes driving speed. These variables include engine size. particularly for modes with little or no direct emissions during the operation stage (e. Using average emissions over a fleet means that this cannot be correlated with the driving routes for a high or lower emitting vehicle leading to inaccuracies. the manufacture of raw materials and energy generation. tyre pressure etc. Electricity sources may also vary greatly. Care that the larger impact of other greenhouse gas emissions are not neglected (methane). and therefore CO2 emissions. fuel type. making collecting and managing data a resource intensive job. nuclear (low CO2) and coal-fired (high CO2). Whole Life Costs: Full life cycle analysis can includeCO2 emissions including vehicle manufacture. Energy Generation: The energy generation element is extremely important in inter-modal comparisons of emissions.
. it is a matter of when and how much…. air. .Risks and opportunities for the Public Transport sector RISKS .There seems widespread agreement that there will be a price on carbon.As an actor in the transport sector we may be penalised due to the poor performance of others (road. .Urban transport does not yet benefit from the Carbon funds…. .We need to better understand the risks or opportunities in this complex but emerging market …… . maritime) so we should be well prepared so we do not end up ‘paying for others’…..We don’t have the proper information to influence….
Risks and opportunities for the Public Transport sector OPPORTUNITIES -The market is immature giving an opportunity to influence …. .(Call for action to UITP members) . -The Bali Road Map opens the door to sector/ programmatic possibilities and “First in kind’ approaches..Opportunity to engage with the carbon funds.The developing world sets to gain most as … .We need to leverage arguments to gather statistics following a common methodology ‘bundling’ similar projects to gain economies of scale ….The voluntary market is growing faster than the primary market and may provide the most interesting opportunities … . .. Urban transport could benefit from city wide measures …. the voluntary market and other actors ….
5% Road transport emissions have risen by 29% in industrialised countries and 61% in the other countries (mainly developing countries or countries in transition (IEA. There are real risks for PT not to be recognised as being part of the solution! . India and Indonesia. with the biggest increase in developing countries. with the biggest increase in developing countries. Challenges Greenhouse gas emissions are very likely to be the main cause of current and future climate change The proportion of emissions being produced in developing countries is increasing rapidly. particularly in countries such as China.Outlook The Future Carbon dioxide emissions from the world’s transport sector have risen by 36. 2006) World CO2 emissions from the transport sector are projected to increase by 140 % from 2000 to 2050. World CO2 emissions from the transport sector are projected to increase by 140 % from 2000 to 2050.
European Activities … Priority 2 of response to the Green Paper on Urban Transport ‘Binding requirement to regulary measure CO2 emissions in agglomerations (job-catchment areas) -Creating a partnership with the EU Covenant of Mayors . .A climate change inventory in preparation – linking city or metropolitan climate change action plans with transport measures .Ongoing .UITP working group on Communications and Climate Change (SD Commission) and the Climate Change Communications Gallery .Attended the UNFCCC meetings ( exhibition stand and side events) COPs 2002 .UITP playing a role in the climate change debate .2007… present active partnership Bridging the Gap (see presentation on Climate Change) .Focus Paper – a Low Carbon Future with Public Transport (Oct 2006) ..
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