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Society for Bangladesh Climate Justice Seminar on Climate Change Impacts on Bangladesh University of British Columbia 9 December 2009 Global – and Domestic – Responsibilities for Climate Change in Bangladesh John Richards Graduate Public Policy Program Simon Fraser University Visiting Faculty IUBAT – International University of Business Agriculture and Technology, Dhaka [email protected] “There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to institute a new order of things” – Machiavelli World Emissions, 2006 (% change in selected countries 2005/06, million tonnes of CO2) QuickTime™ and a decompressor are needed to see this picture. 2 QuickTime™ and a decompressor are needed to see this picture. QuickTime™ and a decompressor are needed to see this picture. The essentials in Copenhagen UN climate chief Yvo de Boer hopes the conference will reach agreements on four political essentials … 1. How much are the industrialized countries willing to reduce their emissions of greenhouse gases? 2. How much are major developing countries such as China and India willing to do to limit the growth of their emissions? 3. How is the help needed by developing countries to engage in reducing their emissions and adapting to the impacts of climate change going to be financed? 4. How is that money going to be managed? 3 Historical (In)equities (1) QuickTime™ and a decompressor are needed to see this picture. 4 Historical (In)equities (2) QuickTime™ and a decompressor are needed to see this picture. 5 World map of hazard hotspots and countries most affected from 1998-2007 according to the Climate Risk Index QuickTime™ and a decompressor are needed to see this picture. 6 Climate change factors external to Bangladesh (1) • Glacier melting • Deforestation QuickTime™ and a decompressor are needed to see this picture. Deforestation in Nepal – “100-year” monsoon floods occurred in 1988 and 2004 • Changes in monsoon patterns 7 Climate change factors external to Bangladesh (2) QuickTime™ and a decompressor are needed to see this picture. QuickTime™ and a decompressor are needed to see this picture. QuickTime™ and a decompressor are needed to see this picture. • Rising sea temperature – more intense cyclones and sea surges in Bay of Bengal – Rising sea volume and hence sea levels 8 QuickTime™ and a decompressor are needed to see this picture. Bangladesh to demand 15pc of adaptation fund: Hasan 9 December 2009 Bangladesh will demand at least 15 percent of the global climate change adaptation fund -- proportionate to its population -- at the Copenhagen summit. State Minister for Environment and Forests Hasan Mahmud said this yesterday explaining Bangladesh's stand at the summit. 9 Bangladesh's role at Copenhagen climate convention (Daily Star, 24 November 2009) “At a recent conference at Harvard University on Bangladesh, I proposed the following measures to form the cornerstone of Bangladesh's efforts to combat climate change: QuickTime™ and a decompressor are needed to see this picture. -Invest in renewable energy, -Initiate quantitative targets for carbon reduction, Abdullah Shibli, economist -Improve energy efficiency, -Reward conservation, innovation, and mitigation efforts, -Develop domestic and non-fossil energy sources, -Research and promote an alternative low-carbon development strategy, -Institute cost-benefit approach for mitigation and abatement projects, -Impose a carbon tax on imported fuel, -Raise our voice in international climate forums and participate in sequestration projects, and -Appoint a climate change czar to advise the PM and coordinate policy.” 10 Nepal to Burma – 400 million living in fragile states with poor governance QuickTime™ and a decompressor are needed to see this picture. 11 Corruption Perception Index Transparency International Year 2005 Bangladesh rank 158 Number of countries ranked 158 2006 156 163 2007 162 179 2008 147 180 2009 139 180 12 Bangladesh Governance Indicators 1996 (bottom) - 2008 (top) QuickTime™ and a decompressor are needed to see this picture. QuickTime™ and a decompressor are needed to see this picture. 13 Generic Options 1. Regulations Advantages • simple to design Disadvantages • high compliance costs (role for performance standards) • limited ability of developing country governments to enforce Examples: • Canadian rising insulation standards in building codes • US new car manufacturers’ fleet mileage constraints • Dhaka ban on 2-stroke “baby taxis” and substitution of CNG-powered equivalent QuickTime™ and a decompressor are needed to see this picture. 14 Generic Options 2. Efficiency (Pigovian) taxes/subsidies Advantages • internalize externalities without need to impose regulations Disadvantages • administrative complexity of tax/subsidy design • political conflict arising due to redistributive effects Example: • Carbon taxes • 150 million Chinese subsidized coal stoves • road pricing in various cities (e.g., Singapore, London) 15 Generic Options 3. Markets in “goods and bads” Advantages • exploit efficiency of market exchange by allocating “abatement” to least cost provider Disadvantages • administrative complexity of market design • political conflict arising due to redistribution effects (e.g., is initial tradable permit allocation by grant or purchase?) • High variability of permit price Examples: • Renewable portfolio standards in US, UK and elsewhere • European Union (EU) cap and trade market 16 Generic Options 4. Redefinition of property rights Advantages • Provide strong incentives to agents to “internalize” • minimize government supervision Disadvantages • Transaction costs Examples: • Unitization of oil fields in early years of US oil developments • Creation of property rights (private or communal) QuickTime™ are decompressor needed toand seeathis picture. over forests in Nepal 17 Potential domestic adaptationmitigation strategies (1) • Disaster preparation QuickTime™ and a decompressor are needed to see this picture. Bangladesh village cyclone shelter – Cyclone shelters and village warning systems • Forestry – Protection of remaining forest cover (e.g., Sunderban) – Forestation of coastal land – Urban parks (shade and breeze) 18 Potential domestic adaptationmitigation strategies (2) • Power sector QuickTime™ and a decompressor are needed to see this picture. Improved Chinese stove (left), traditional stove (right) – Village coal distribution for domestic heating (to avoid use of biomass fuels) – Expanded power capacity • Population planning – Good but not good enough (current fertility rate: 2.7) 19 Potential domestic adaptationmitigation strategies (3) QuickTime™ and a decompressor are needed to see this picture. CNG taxis issue less CO2 per liter than gasoline-powered cars • Sensible pricing of carbon-intensive activities – – – – – Import duties on petroleum products High automobile licence fees Tax on hydrocarbon fuels based on emissions (carbon tax) Congestion road taxation in Dhaka and Chittagong Cost-recovery pricing for Power Development Board 20