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“Fostering Economic Growth through Low Carbon Initiatives in Thailand” Developments in sustainability policy in France P. Criqui AFD Bangkok Seminar February 25-26, 2010 LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 1 The Commission on the Measurement of Economic Progress and Social Performance (Sen-Stiglitz-Fitoussi, 2008-2009) 1. Classical GDP issues: - 2. Quality of life and measurements: - 3. Subjective measures Objective measures (health, education, insecurity …) Sustainable development and the environment: - - Improving the measurements (govt. services, defensive expenses …) Bringing out the households’ perspective (income, distribution issues) Dashboards, composite indexes, adjusted GDP Focus on overconsumption or underinvestment (Adjusted Net Savings: is the global stock of resource left to future generations increasing or decreasing ?) Distinguish between measurement of current well-being and its sustainability in the future « A monodimensional view of sustainability remains certainly out of reach. But we want to end up at most with a limited set of indicators – a ‘micro’ dashboard – and one that is specifically dedicated to the sustainability issue » LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 2 A comprehensive legal and regulatory framework: the Grenelle de l’environnement or Environmental New Deal, #1 and #2: For Buildings: - Confirmation of all existing energy and climate policies such as Factor 4 reduction in 2050 emissions, 23% Renewables in TPES for 2020 (European 3x20), implementation of the Plan for Buildings with less than 50 kWhEP/m2/yr in new buildings after 2012, Climate Plans for Cities For Transports: - Modal shift to freight transport - Accelerated programmes for collective transports and high speed trains For Biodiversity, Agriculture, Forest and the Sea: - Confirmation of the Green and Blue Belts, with integrated management of agriculture, forests and sea resources - Measures to stop biodiversity losses in every sectors … Health and environment … Waste management policies … Governance and information … Sustainable development in Overseas French territories LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 3 Roadmaps for 17 Green technologies 1. Biomass / energy 2. Biomass / materials 3. Biofuels / transport 4. Green chemicals 5. Waste recycling 6. Wind energy 7. Energy from the sea 8. Industrial process optimization LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 4 Roadmaps for 17 Green technologies 9. Geothermal 10. CO2 Capture and Storage 11. Photovoltaic 12. Zero Carbon Vehicle 13. Smartgrids 14. Metrology and instrumentation 15. Logistics and flow management 16. Energy efficiency in building 17. Electricity storage and batteries LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 5 Developing a system of economic instruments or giving a price to carbon: 1. emission quotas for large industries Since 2005, about 1100 industrial establishments, representing 1/3 of GHG emissions in France are covered by the European Emission Trading System Industries are provided with quotas for a given period and then have to respect their total emissions or buy quotas from other participants to the market The first phase of implementation (2005-2007), with free quotas has shown some flaws, with low and unstable price But these initial difficulties should be superseded in the second and third phases (2008-2012 and 2013-2020), with the introduction of more severe endowments and of the auctioning of quotas for non exposed industries LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 6 Developing a system of economic instruments or giving a price to carbon: 2. the Carbon tax for diffuse emissions The introduction of a carbon tax for diffuse emissions (building, transport, small industries) is considered in France since many years now A series of government commissions, have prepared the project, including for the identification of the right level (CAS [French NESDB] : 32 €/tCO2 in 2010, 100 €/tCO2 in 2030) Last autumn, the project has been adopted by the parliament … but unexpected political and constitutional difficulties arose in the implementation Now the government is redefining the scheme … for now, the problem of the social and political acceptability of the carbon tax have not been solved LEPII, Fostering Economic Growth through Low Carbon Initiatives in Thailand” , Bangkok, 25-26 February 2010 7