Climate change, the Kyoto Protocol and the Solution - Jonathan Köhler

The role of SP in achieving sustainable energy use - John Bunzl

Link to Cambridge Sustainable City initiative


Climate change, the Kyoto Protocol and the Solution

Presentation by Jonathan Köhler, Cambridge University Department of Applied Economics and Tyndall Centre for Climate Change Research

(Notes taken by Mike Brady)

Climate change due to the influence of the human race has been generally accepted as a real phenomenon for about the past five years. It’s impact will see low-lying islands disappear. Ice sheet melt may lead to the collapse of the Gulf Stream, meaning that the UK would become 5oC cooler. There will be more extreme flooding, of the type witnessed in Germany last year. Some research suggests that freak winds and hurricanes will become more commonplace.

The way to address climate change is to reduce emissions of carbon dioxide (CO2) and methane, particularly CO2, which is very inert and stays in the atmosphere for a long time. It spreads around the globe, far from its point of production, meaning this is truly a global problem requiring a global solution.

Reducing UK emissions makes little difference. The main problem countries are the United States and Russia, followed by India and China.

The solution requires collective and long-term action over a time scale of 50 years. This is difficult to achieve as governments think short term and there is no international governance.

Emissions stem from the following sources:

  • 25% Transport – mostly cars
  • 50% Buildings – houses and offices
  • 25% Industrial processes – this contribution is declining

Air conditioning is increasingly becoming a contributor and air transport, which if growth occurs as predicted, will contribute 15-18% of emissions in 2030.

Big industry is not a big problem. Buildings are a big problem as in the UK they are very energy inefficient. The situation will get worse if plasma televisions become widely owned as these use typically 450 W as compared to about 75W for conventional TVs.
Transport requires tough questions to be asked. Do we want to carry on increasing the number of passenger kilometers traveled? Reducing emissions of transport to zero is unlikely to be achieved. Now China is beginning to switch to a motorized economy the impact of the motor car globally will increase.

Power generation is another area requiring attention. Switching to renewable sources of energy is desirable. Nuclear energy can also make a contribution if it is politically feasible and other environmental and risk factors can be satisfactorily addressed.
As a global problem, multilateral negotiation is required to solve it. So far this has produced the Kyoto Protocol.

The Kyoto Protocol

The Kyoto Protocol aims to reduce emissions by 8-12% of 1990 level by 2010. There are three mechanisms to achieve this:

  1. Clean development. Industrialised countries will receive credits under the system for transferring ‘clean’ or ‘energy efficient’ technology to poor countries.
  2. Joint implementation mechanism. All countries work to reduce emissions.
  3. Carbon trading mechanism. Countries can trade their allotted quota of emissions.

Carbon trading allows countries to trade their permits setting out how much carbon dioxide they can emit. The trading aspect of Kyoto was introduced at the insistence of the United States (which is still refusing to sign the finalized treaty). The US was keen to be able to increase the amount of carbon dioxide it could produce and Russia supported it as it was keen to sell its permits as its industry and emissions had reduced since the benchmark year of 1990 and so it wouldn’t need its full allocation. Russia has still to sign the treaty, however [it has been reported elsewhere that advisors to President Putin of Russia have suggested the effects of global warming will be good for Russian agriculture and economy].

There are some positive aspects of the Kyoto Protocol. The fact it exists shows that climate change has become a policy issue. Virtually all nations have engaged in the policy negotiations, even the US. The only parallel is perhaps the Montreal Protocol on pollutants damaging to the ozone layer (it has been suggested that the US supported the Montreal Protocol as US company duPont had developed technology to seize the opportunities it presented).

Kyoto has prompted the UK Government to introduce ambitious targets in its most recent energy white paper, aiming to cut carbon emissions by 60% by 2050.

There are however fundamental problems with the Kyoto Protocol.

Firstly, the treaty comes into force when countries responsible for 55% of emissions have signed it. With the US refusing to sign and Russia prevaricating, this will not be achieved.

Secondly, the targets are too weak. The UK Government target is more realistic, but its energy white paper is very light on the policies required to deliver such a drastic reduction in emissions. It will require re-ordering of society. Simply putting extra taxes on high emission activities, such as on fuel, will not solve the problem. The experience with tax on fuel for cars is that people complain, but do not change their habits, largely because society is structured around high car use.

Thirdly, Kyoto does not provide sufficient incentives for developing countries to join in as they attempt to industrialise. China is presently building many coal and gas-fired power stations. Industrialised countries are not setting an example. Prior to the Rio Earth Summit, George Bush Sr. said, “The American way of life is not up for negotiation.” That view continues. Europe, despite its willingness to support the Kyoto Protocol is not on target to hit its weak targets and European countries remain bad.

The Solution

There needs to be renewed political effort at a global level, involving all countries and drawing developing countries into the process to provide economic growth without increased global emissions. This will inevitably require deep-rooted social change.
The present President Bush said he would not do anything that could harm the US economy when he refused to sign the Kyoto Protocol. However, the advice he is receiving from his economists that doing so would harm the US economy is not necessarily correct. While that may be the case in the short term, new technologies could boost the economy and replace old industries. There is great scope to export low-carbon technology to developing and other countries. Renewable energy sources currently account for less than 1% of energy production. If this grew to 10%, say, that presents a massive market.

Efforts must continue to persuade politicians to take action now even though the positive impact will be seen in decades to come.

The role of the Simultaneous Policy in achieving sustainable energy us

[Presentation by John Bunzl, Director International Simultaneous Policy Organisation

Good evening.

Jonathan has given us an excellent summary of the various problems associated with global warming and has given some important pointers to ways we can solve this globally threatening phenomenon.

In the brief time I have to explain the Simultaneous Policy and how it is likely to be relevant to our efforts to reduce global warming emissions, I’d firstly like to ask you to step back and take a more general perspective on what we have already heard this evening. I’d like to suggest that, in looking at the broader view, we can actually split all the various actions and policies that are needed to solve the climate problem into two broad categories. This categorisation is vitally important because, as I shall explain, each requires a very distinct and different implementation strategy. Indeed, one important reason why we seem not to be getting very far with the climate problem is very probably because we largely fail to make this vital distinction and therefore fail to select the right implementation strategy.

Now, the first of these two categories is what I will call the “positive” category. It consists of any action or policy that can be undertaken by any nation on its own – or by any restricted group of nations such as the EU - without impairing its international competitiveness or attractiveness to international markets or corporations. An example of such a policy would perhaps be government subsidies for the development of new sustainable energy technologies. Indeed, such a policy would probably enhance a nation’s competitiveness because it would give its domestic producers an advantage over foreign competitors. Clearly, any nation contemplating a policy likely to enhance its competitive advantage will want to implement it immediately in advance of other nations in order to benefit from that advantage. This category is therefore called “positive” because the policies would have a positive or neutral effect on a nation’s competitiveness if implemented unilaterally.


The second category, by contrast, would encompass all those policies that would likely have a negative impact on a nation’s competitiveness or capital markets if implemented unilaterally by any single nation or group of nations. An example for this category could, perhaps, be higher taxes on polluting industries or tighter environmental standards, both of which would increase industry’s costs and thus risk their competitiveness compared with industries in other countries. Clearly for this negative category of policies, a transnational approach is required because no nation can move first for fear of economic competitive disadvantage. It is only this negative category to which the Simultaneous Policy – SP for short – would be relevant. So I will call this category the “negative” or “SP” category.

Having said that, I think you can already start to see that many of the policies needed to solve not just global warming but many of our other global problems – from arms control to corporate power and from global poverty to tighter environmental standards – all largely fall into this negative, or SP category. Any nation unilaterally attempting to increase corporate taxes or to tighten environmental regulations or to redistribute wealth from rich to poor puts itself in danger of becoming “uncompetitive” as global investors, corporations or other vested interests would promptly switch employment or investment to some other economy. So all the many vital measures needed to solve global problems would be bundled together into the Simultaneous Policy.

The Kyoto Protocol, I suggest, is likely to be another SP-type policy. This is because, not only do we have the problem of getting the world’s most polluting nation, the USA, to participate, we also have the problem that the Protocol’s stipulation of a 5% reduction in emissions below 1990 levels is miserably inadequate and will do little to ameliorate climate change anyway. Jonathan has said he thinks economists who advise that reducing carbon emissions would be bad for the economy of a country are incorrect, but what is important is the view that politicians and business interests have formed. The argument of competition between nations still applies.

We also need to ask why are the targets in the Kyoto Protocol so inadequate? I suggest it’s precisely because of this problem of international competitive disadvantage; a problem that can be summarised as “destructive international competition”.

Indeed, the Protocol is likely to proceed without the USA’s participation only because the present reductions it requires are so pathetically minimal. As such, the loss of competitive advantage likely to be suffered by those nations proceeding with the Protocol is not likely to be significant compared to nations such as the United States who will likely not proceed with it. But were the provisions of Kyoto to require emissions reductions of 50 or 60% – as most climate experts agree would be needed if a really significant impact on global warming is to be achieved – it is unlikely that any major nation would be willing to proceed unless all did likewise because the significant additional costs their industries would have to bear compared to those of nations not participating would not be economically sustainable: the competitive disadvantage would simply be too great.

So, if we are to have a Kyoto Protocal and other international agreements that have a really significant effect on the environmental or economic problems they’re supposed to solve, we are unlikely to get them unless all, or virtually all, nations implement them simultaneously. And that, ladies and gentlemen is precisely what SP aims to achieve: the simultaneous implementation by all or sufficient nations of really significant policies to solve global problems. And as I shall shortly explain, it is ordinary citizens around the world – not politicians or governments - who can use SP to lead and direct this process.

But why should citizens lead and not governments? After all, don’t we elect governments to take care of these things for us? Well, I’m afraid citizens must now take the lead quite simply because national governments around the world are stuck in a race to the bottom in which all politicians, regardless of party, must, once in power, implement only market and business friendly policies for fear of investment and jobs moving elsewhere. This destructive international competition effectively puts all politicians into a policy straitjacket that prevents them from implementing the bold measures our world predicament so clearly requires. It’s little wonder, therefore, that many have already rightly concluded that we no longer live in genuine democracies but merely in pseudo-democracies: an electoral charade in which whatever party we vote for, much the same market and business-friendly policies get implemented and nothing much changes except that our problems only get worse.

This policy straitjacket thus explains why the world’s former left-of-centre parties, such as Old Labour, have all become virtually Thatcherite New Labours; and why even Green parties, when they have come to power in countries like Germany, are forced to jettison their key Green policy planks as they, like all other parties, find themselves forced to maintain their nation’s “international competitiveness” in the global market.
So with all parties doing much the same when they come to power, the public is quite right to ask: what on earth is the point of voting? Indeed, citizens all over the world have increasingly – and quite rightly - been demonstrating their frustration by not bothering to vote at all. This, therefore, is how the destructive international competition of the global market has made our votes substantially meaningless. But strange and paradoxical as it may sound, SP potentially offers voters and apathetic voters alike a new and potentially very effective way in which we can use our right to vote to act at the global level to put an end to pseudo-democracy and to destructive competition; a way we can, all act at the global level.

We citizens therefore need to recognise that we can no longer look to governments to solve these problems on their own. We need a political tool or technology that allows us to lead governments to implement the necessary policies at the global level. In doing so, we will not only solve those global problems, we’ll also restore genuine democracy to nation states and real political meaning to our votes. And SP, I humbly suggest, is just such a tool or technology.

So what exactly is SP? Well, at the risk of boring those of you here who already know, SP is two things. As I have already hinted, it is firstly a range of policy measures consisting of all and any measure that fall into the SP category. But SP is also a political process for bringing about the implementation of those policies by all or virtually all nations simultaneously.

As a policy, therefore, SP will likely include measures such as the re-regulation of global capital markets, the taxation of transnational corporations, the cancellation of Third World debt, the establishment of higher world environmental standards and measures to promote local economies. Apart from a vastly strengthened Kyoto Protocol, another measure, for example, could be a global tax on fossil fuels which would make long-distance transportation much more costly, thus making locally produced goods more competitive and so boosting local economies all over the world and reducing emissions into the bargain. By the same token, SP could redistribute the tax revenues mainly to poorer countries to help them out of poverty and to enable them to meet higher standards. One could perhaps say that SP would consist of all the measures the Global Justice Movement is presently calling for - but with the key condition that they are each to be implemented by all, or virtually all, nations simultaneously.

But the measures I have mentioned remain only provisional because SP is not a policy ‘cast in stone’ but, rather, a ‘policy-in-the-making’: a policy, the measures of which all our members will gradually define with help of independent policy experts in an open, flexible and democratic fashion as the SP campaign progresses. Indeed, this meeting on sustainable energy use is part of the process for discussing and identifying what SP’s policy content should be. So that, in a nutshell, is SP as a policy.

But before explaining the other side of SP - SP as a political process - please remember that the stipulation of “implementation by all nations simultaneously” should not be understood as a rigid, inflexible pre-condition. Because, by removing governments' and business’s key objection of uncompetitiveness and their fear of ‘first-mover disadvantage’, SP represents a new and vital consensus-building strategy. It provides the critical basis upon which governments can readily say “yes” instead of “no” to policies like the Tobin Tax or any other policy whose unilateral implementation might threaten their international competitiveness. With SP they can say ‘yes’ because simultaneous implementation removes everyone’s risk of losing out. We can thus build a consensus, if not of all nations, then of sufficient nations.

As I have said, however, SP is also a process; a political process by which politicians and political parties around the world can gradually be brought to adopt SP in principle and then, finally, to implement it, simultaneously, when all other nations do likewise. I say ‘brought to adopt SP’ because many politicians will not willingly adopt SP of their own volition. We citizens will have to force them to do so and, fanciful as it may at first seem, this can, I suggest, be achieved by citizens around the world – you and me - simply signing a piece of paper confirming our adoption of SP.

Adopting SP means that we each make a personal commitment to vote in future elections for ANY political party or politician – within reason – who also adopts SP. Or if, unlike me, you still have a strong party-political preference, adopting SP signifies your desire for your party to adopt it. So instead of choosing passively between the largely redundant policy programmes served up to us by today’s political parties, by adopting SP, we’re turning the tables by saying to all politicians, “we’ll vote for ANY OF YOU, within reason, that adopts SP”.

Now, with more and more parliamentary seats – and even entire elections - around the world being won or lost on very small margins, this novel method of citizens pledging to vote for any politician (within reason) that adopts SP should be capable of presenting politicians in all countries and constituencies with an attractive, yet compelling, “carrot and stick” proposition. Since SP is only to be implemented simultaneously, there’s absolutely no political risk to politicians who adopt it. Indeed, they can adopt SP while continuing to pursue their existing policy programmes until such time as all nations have adopted and implementation proceeds. But failing to adopt SP could cost them dearly, especially if they’re fighting closely contested elections, for they’ll likely lose to rivals who have adopted SP to attract the SP voting bloc. So SP’s growing number of adopters – even if relatively few - could make the vital difference between politicians winning or losing their seats, or even an entire election. ….

So, as I’m sure you will have recognised, SP is a campaign likely to appeal strongly to the world’s largest and fastest growing political constituency: the apathetic/protest voter! By not being a political party but instead by bringing existing parties into competition with one another to adopt SP, the International Simultaneous Policy Organsation hopes – with the help of NGOs and activist groups around the world - to become a novel and decisive political phenomenon capable of ushering in a new era of global cooperation and mature international community in which individual nations are freer than they are today to pursue independent economic and social objectives that protect local economies, local communities and our planet.

I therefore hope you’ll want to investigate the SP technology further. The SP campaign is operating now in over 20 countries around the world, local SP campaign groups are starting in parliamentary constituencies around the UK, the Cambridge SP Adopters Group being one of them. And just recently we got the news that SP came in the top 10 in the PoliticsOnline worldwide survey of initiatives changing the world of politics through the internet. So, I hope you’ll want to join us by adopting SP if you haven’t already. As the PoliticsOnline survey suggests, SP is one very useful way you can now act globally while continuing with any locally-focused campaigns or actions you may already support. Instead of merely thinking globally and acting locally, with SP we can now use our votes to act globally as well!

Thank you very much for your patience and attention and I look forward to any questions you may have and to a lively debate.

John Bunzl – Founder and Director. January 2000

The discussion forum on the BBC iCan site can be used to post comments and suggestions prompted by these articles.