Carbon capture and storage plant in Germany. © Vattenfall

Article by Guest Contributor: Natalie Antonowicz

During the second week of negotiations at the Cancun Conference, delegates made progress regarding the designation of carbon capture and storage (CCS) projects as applicable for funding under the Clean Development Mechanism (CDM). Under the CDM, developed countries may gain emissions reduction credit by undertaking environmentally sound projects in developing countries.

At Cancun, the United Nations approved CCS projects as means of carbon offsetting for firms in developed countries. A decision on integrating CCS into the CDM largely has been postponed since 2005, because the voting options regarding it have generally been phrased as ‘yes or no’ questions. At the 2010 Cancun Conference, however, the Subsidiary Body for Scientific and Technological Advice (SBSTA) has approved options for integrating CCS. In draft conclusions prepared by delegates, two possible options for CCS integration exist.

The first option stipulates that “CCS would be funded if concerns about carbon leakage from underground geological formations, environmental risk, legal liabilities and monitoring are addressed” by the SBSTA at its next meeting. The second option states that “CCS would be deemed ineligible for funding until and unless such issues are resolved in a satisfactory manner by Kyoto Protocol signatories”.

However, CCS remains controversial, as it does not result in an outright reduction of emissions, and instead stores carbon emitted from point sources underground or under the ocean floor. Many remain concerned that the experimental technology is not proven to be safe, and that leakages or other negative environmental ramifications are possible. Additionally, stakeholders have voiced concerns about legal liability, as it pertains to the possible negative effects of carbon capture and storage.

The major proponents of integrating CCS into the CDM are Norway, Saudi Arabia and the United Kingdom. These countries argue that doing so will “allow countries to keep using fossil fuel while ensuring greenhouse gases aren’t spewed into the atmosphere”. Saudi Arabia, and its OPEC allies have stated that the Cancun Conference “should not produce an accord that works against traditional energy sources”. CCS, they argue, will allow traditional energy sources to operate without sharp cost increases or efficiency decreases, while still avoiding the release of emissions. Opponents of CCS integration argue that it is “a way of effectively subsidizing the oil industry”. Instead, they favour the development of renewable energy.

The AOSIS group of South American states had been vocally opposed to CCS integration, but has backed down at Cancun. Environmental activists, however, remain opposed to CCS, as they argue that its long-term implementation timeframe is incompatible with the time-sensitive nature of environmental degradation. Despite the progress of negotiations in favour of CCS integration, opposition from Brazil and its allies has “render[ed] it ineligible for CDM funding inserted into a draft Kyoto Protocol text for 2012″.

Canada, Japan and Russia have advocated for the removal of the Clean Development Mechanism and the Joint Implementation program from the general Kyoto Protocol. These countries advocate “shift[ing] [carbon markets] intro a different track of the UN climate talks”.

Overall, progress on the Clean Development Mechanism has been made at Cancun, but controversies and debates remain. While states did agree to integrate carbon capture and storage into the mechanism, the full details of how this is to be done have not yet been decided upon. Additionally, many members of the Conference of Parties remain skeptical about the ability of carbon capture and storage technology to adequately address climate change.

On 11 March 2010 French President, Nicolas Sarkozy, opened an international conference on deforestation in Paris. The main focus of the International Conference on the Major Forest Basins was funding for REDD+ (reducing emissions from deforestation and forest degradation in developing countries, plus conservation, sustainable management of forests, and stock enhancement) activities during 2010-2012.

France and Norway are leading this effort to foster new climate partnership in 2010.

“Forests are in danger,” France’s Ecology Minister, Jean-Louis Borloo, said at a press conference. France intends to play a major role in saving the world’s forests, Borloo said, thanks to its “expertise in science and forestry.”

“The idea is to establish a partnership of everyone who wants to be included [in safeguarding forests], stated Norway’s Environment Minister, Erik Solheim. According to Solheim, the initiative will be transparent and “it will be open to everyone, even if you don’t contribute one single dollar, even if you don’t have a single tree.”

The conference brought together representatives from 54 countries, representing the main forest basins in the world as well as potential donor countries. The major focus was on the collective pledge for nearly US$3.5 billion in initial funding for REDD+ over the period 2010-2012 by Australia, France, Japan, Norway, the UK and the US (made in Copenhagen in December 2009).

Not many details on this first conference are available, but there is expectation the throughout a series of conference mechanisms will be established to go through the United Nations, the World Bank, and bilateral channels. Norway has existing bilateral agreements, which may serve as a model in the process. For example, Norway plans to include up to $1 billion for Brazil from 2008-2015, up to $280 million for Guyana from 2010-2015 and about $83 million for Tanzania. But, each of these contributions schemes also come with strings attached, depending on performance.

During the Conference, participants engaged in three sessions on: pledges of initial funding and action for forests; coordination of initial funding and action for forests; and organization of long-term international action concerning REDD+. A second conference will be organized in Oslo, Norway, in May 2010

Many developing countries with forests to protect seem pleased with the arrangement of having France and Norway in a leadership role. Norway has a strong donor performance for forest issues, while France, and President Sarkozy in particular, has been an advocate for partnerships and open dialogue in REDD+ negotiations, before and after Copenhagen (e.g. France-Brazil initiative in November 2009).