Transport Co-benefits Guidelines: Overview Presentation

1. Transport Co-benefits Guidelines:Overview Presentation Eric Zusman Co-benefits in Asia’s Transportation Sector Manila, Philippines 27-28 October 2010

2. Presentation Roadmap • What are co-benefits? • Why are co-benefits important? • Research • Climate negotiations • Development assistance • Why is your input important? • Development planning • Usability and ownership

3. 1. What are co-benefits?:IPCC • “The benefits of policies that are implemented for various reasons at the same time—including climate change mitigation acknowledging that most policies addressing greenhouse gas mitigation have other…equally important rationales.” Intergovernmental Panel on Climate Change (IPCC) (Third Assessment Report). Climate Change, 2001: Mitigation. B. Metz, O. Davidson, R. Swart. and J. Pan. (eds.) Cambridge: Cambridge University Press, 2001. p. 711.

4. 1. What are co-benefits?:Examples Transportation Policies Development Needs Climate Concerns • Dieselization • Public Transport Upgrades • Emissions Standards Climate Co-benefits

5. 2. What are co-benefits:Diagramming Co-benefits Source: Adapted from Krupnick et al, 2001

6. 2. Why are co-benefits important?:Research Source: CAI-Asia 2010

7. 2. Why are co-benefits important?:Research

8. 2. Why are co-benefits important?:Research Source: USEPA, 2007

9. 2. Why are co-benefits important?:Research • Co-benefits estimated to offset mitigation costs in developing Asia—though varying greatly in magnitude United States Europe Latin America Asia Source: IGES, 2008

10. 2. Why are co-benefits important?Climate negotiations Kyoto Protocol Article 12.2-CDM is to assist developing countries in achieving sustainable development Source: IGES, 2009

11. 2. Why are co-benefits important?:Climate negotiations • 1.b.(ii) Nationally appropriate mitigation actions (NAMAs) by developing country Parties…. • supported and enabled by….. • in a measurable, reportable and verifiable manner (MRV)…. Bali Action Plan

12. 2. Why are co-benefits important?: Climate negotiations NAMAs MRV

13. 2. Why are co-benefits important?: Climate negotiations

14. 2. Why are co-benefits important?:Development assistance • Global Environmental Facility (GEF) • GEF 4 (2006–10) climate change strategy “sustainable innovative systems for urban transport” • Climate Investment Funds/ Climate Technology Fund (CIF/CTF) • CTF priority sectors include transport; improving efficiency/modal shifts can be funded • Asian Development Bank (ADB)-Sustainable Transport Initiative (STI) • Holistic approaches for sustainable transport development

15. 3. Why is your input important?:Development planning Climate Development

16. 3. Why is your input important?:Development planning

17. 3. Why is your input important?:Development planning • The Philippines National Framework Strategy on Climate Change 2010-2022 • Promote models to improve the transport sector's efficiency and modal shifts • Conversion of public utility vehicles to LPG and renewable energy sources, and the expansion of/shift to more efficient mass transport systems • Integrate climate change to the formulation of energy and transport policies e.g. formulation of a national EST Strategy

18. 3. Why is your input important?:Usability and ownership • Policymaking systems are often left as black box Policymaking Systems

19. Why is your input important?:Usability and ownership Policymaking Systems

20. Summary • Research, climate change negotiations, and development planning are trending towards considering a range of development and climate benefits • Co-benefits may not only offset the costs of greenhouse gas (GHG) mitigation but bring carbon finance to development needs • A user friendly tool to measure/monetize co-benefits will become increasingly important—especially in the transportation sector • Stakeholder input will be critical building such a tool

21. Appendix: Why are co-benefits important? The benefits of GHG mitigation are global, long-term, and uncertain The costs of GHG mitigation are local, near-term, and certain Reducing cost concerns can accelerate the timing of climate actions

22. Appendix: Why are co-benefits important?:Research

23. Appendix: Why are co-benefits important? 1. Create a list of potential impacts of a policy/project • What should be included and excluded can be tricky in practice • repercussions of impacts: usually secondary effects are excluded to avoid double counting 2. Predict quantitative impacts • Limited availability of relevant data may impose serious problems • CBA is typically data intensive (and time consuming) 3. Value of statistical life may be too low • US$4,000 - $17,000 in China (Hammitt and Zhou 2006) vs EPA’s recommendation of US$6.1 million in 1999 dollars 4. Discount for time to find present values • The choice of discount rate for long-term projects is highly controversial and has a significant effect on PV estimates

24. Appendix: Why are co-benefits important? • Partnership for Sustainable Low Carbon Transport (SloCAT) • Climate action in the transport sector should recognize co-benefits • World Health Organization (WHO) • Calls for inclusion of the language referencing co-benefits in seven places in the text all of which are potentially relevant to transport. • Bridging the Gap Initiative • Recommended “…recognize that nationally appropriate mitigation actions by developing country parties in the context of sustainable development , ‘leading to co-benefits including better air quality and human health, less traffic congestion and energy security’” • United Nations Environment Programme (UNEP) • “Give preferential support for transport projects and policies that reduce GHG emissions and have co-benefits or other sustainable development objectives, such as reductions in air pollution, noise, and congestion.” • CCAP • Create a transportation “window” in the Copenhagen Green Climate Fund with dedicated, sector-specific …sustainable development co-benefits (e.g., economic development, public health)