Select Committee on Environmental Audit Minutes of Evidence


Examination of Witness (Questions 62-79)

MR AUBREY MEYER

1 DECEMBER 2004

  Q62 Chairman: Good Afternoon. Welcome Mr Meyer; sorry about the slightly late start. Am I right in thinking that you have a few introductory remarks you would like to make to the Committee?

  Mr Meyer: Yes, please.

  Q63 Chairman: Please go ahead.

  Mr Meyer: Thank you. Good afternoon. I have three brief points to make. The first is to thank you for existing. This is a really important Committee as I see it. The second is, especially for your recent report on sustainable development, which is excellent and finally, the opportunity of this hearing and report itself. Climate change is so serious, that it subsumes all areas of policy making. What this means is this: committees with a focus on developing climate policy, my own principle, subsume the agendas of committees that have not yet acquired this focus of policy making. I am thinking of normally senior partners perhaps such as Defence, Security, Treasury and so on. In other words, what I am saying is, EAC, the Environmental Audit Committee, is far more important than is popularly perceived. The final point to say is that C&C, which is essentially why I feel I am here, is a rational full-term framework—and I am stressing the word full term and I am hoping that you are finding that in evidence you have had from government institutions in Whitehall—and to make this slightly pre-emptive point that it is not just feasible, I say that it is inevitable the moment we realise the seriousness of the predicament that we are actually in with climate change. In respect of leadership on whatever occasion it may be, soon or late, leadership is defined by C&C compliance. Thank you.

  Q64 Chairman: Thank you. Just to make it clear for the record, C&C is contraction and convergence, which is an ideal which you yourself developed and, if I may say in the light of your very nice words about our Committee, congratulations to you for coming up with an interesting and original idea and having the tenacity to continue to pursue it, so that it has now gained credibility in many different parts of the world as one option. Can we just explore this a little bit further? Whilst I think most of us here would agree that contraction and convergence is a logical proposition and a very interesting idea, it is, as well as those things, a mechanism for achieving the sort of outcome that we want. Or is it just an idea?

  Mr Meyer: Well first let me say thank you for your kind remarks. Second, let me say, yes, it is both the means and in a sense the ends of the situation that we are trying the deal with and it certainly is an idea. As I think Michael Meacher, one of your former members, said, an incredibly powerful idea towards which we are moving inexorably.

  Q65 Chairman: What I think we are trying to explore is how you actually see it developing in practice. The idea is a sound and logical idea, there is no question about that, but how does it get implemented?

  Mr Meyer: Well, the answer that I will give would apply no less to any other putative approach to solving climate change. The problems of implementation of even the Kyoto Protocol, let alone the climate convention are almost apparently insuperable. We are in deep difficulty of not strictly speaking being Kyoto compliant. If I remind you that many of the features of the Kyoto Protocol, such as the reduced targets, the inclusion of flexibility mechanisms, CDM and especially emissions trading are there at the behest of the Americans who are no longer part of the arrangement. They are continuing to rehearse their objection as of the last 15 years that unless everybody is involved, they are not. So in respect of the problems of C&C implementation, obviously they are very considerable, but I would say they are no more considerable than anything else and in some measure, not so considerable as everything else for the simple reason that actually being logical is in fact relevant to the basis of the politics we now have to construct. The fault, if you like, amongst the competition is that it is what I would generically classify as guess-work in comparison with the contraction and convergence framework.

  Q66 Chairman: OK. I am sorry to harp on about it, but I am still looking for ways in which this thing can be delivered. There are various different options open to governments. There is the emissions trading idea, which is gaining currency, there is the possibility of taxing, international taxation to ensure compliance with an agenda, there are all sorts of regulatory opportunities. Does your idea depend on any one of those or on mix and match or is an emissions trading scheme an essential part of achieving contraction and convergence?

  Mr Meyer: I see all of those things that you have described, taxation, emissions trading and various institutional and technological developments, as being integral to C&C. I would go further than that and I would say that by definition each and every one of those things has a fundamental C&C dependency. What do I mean by that? The objective of the convention has been clearly agreed since 1992 as stabilising greenhouse gas concentrations in the atmosphere at a level which is non-dangerous. We are already internationally legally committed to achieving that objective; I cannot believe that we are only committed to hoping that we achieve it because not to achieve it in effect is to go to a kind of extinction event. The secretariat to the convention itself has said, a little loosely I grant you, that achieving the objective of a convention depends, by definition, I think the words were "inevitably requires contraction and convergence". So the issue is not whether it is contraction and convergence or not, the issue is much more about the question of how we actually, as you were saying, get that in place. It specifically requires therefore not being seen to be in opposition to these apparently alternative contending positions. It is revealing that they are in effect subsumed within the total full-term description of what the solution actually is in respect of this crucial, crucial, crucial issue of sharing the use of the global commons in the form of the atmosphere. The trading, by definition, depends on these arrangements. You cannot trade if you have not capped. You cannot trade if you have not established ownership; so capping and ownership are crucially inter-dependent here. Doing this rationally, other than making it up on the hoof as you go along, is, I would say, fundamentally a pre-requisite to success.

  Q67 Chairman: Can you have a successful C&C programme without trading? That is another way of asking the question.

  Mr Meyer: That is a more interesting question. The way that I would answer that is as follows: I cannot see a solution to climate change without C&C and I cannot see a successful trade regime existing without C&C. I recognise that in the various appetites for and against emissions trading, some people are completely for it, some people are completely against it and there is a vast and complex grey area in between those two things. C&C in effect embraces both positions. It is saying to the people who are opposed to trade, "You will need these arrangements regardless of whether you support trading or not" and to the trading people "You will need a full-term framework focused on the successful outcome in order for the trade to be meaningful". The only thing that we are really disposed to negotiate about here is the rates at which contraction and convergence actually unfold. So C&C is not pushing trade any more than it is hindering trade: it is trying to service all the positions as a sort of meta-position. Reconciliation lies here.

  Q68 Chairman: You used the term "full-term solution" a couple of times already this afternoon. Just for the record, could you explain what you mean by that?

  Mr Meyer: Yes, I am happy to do that. The convention's objective is stable concentrations in the atmosphere. What we have known with a reasonable degree of accuracy since the IPCC's first assessment report was published in 1990, is that different levels of stable concentrations in the future are associated with different integrals of fossil fuel emissions into the future and that whenever the IPCC science group, in the time since then until now, have portrayed those carbon integrals, they have done them in effect as budgets in a contraction curve. They are by definition getting less over time, because that is what is required to stabilise the atmosphere. In so far as we can contemplate a situation in the future where concentrations have become stable, the end of the emissions profile will be the full-term completion of a carbon contraction process globally. So "full term" specifically means that this is not just open-ended hoping and guessing and praying for as long as we have time to draw breath, it specifically means recognising an end point now, stable at, for arguments sake, 450 parts per million CO2 and working back from that end point now and counting out crucially the carbon contraction process from then until now, or from now until then if you like, and crucially applying international convergence procedures proposing it as a constitutional basis on which to reconcile all the parties to the convention, in other words all the nations of the world, in what is a UN full-term constitutional rights based agreement to share what is safe that is left to consume.

  Q69 Mr Challen: With C&C there is a timescale over which incremental changes will be made to various countries' carbon emissions and during the early stages of that timescale, is it not possible that developing countries which have at the moment very low emissions could be permitted to increase their emissions? We are not talking about a system where everybody starts off where they are and reduces: we are talking about a convergent process. Does that not possibly legitimise developing countries actually using whatever means they like to generate energy to perhaps increase, albeit maybe slightly, carbon emissions?

  Mr Meyer: I can you answer you slightly indirectly here. I think what legitimates this process is recognising that, in principle, the equal rights to the use of the commons globally, the atmosphere, is the only conceivable basis on which you could expect to construct political consent, consistent with solving the problem. In respect of the specific point you make about legitimising or allowing or appearing to be permissive towards, I would say, future developing country emissions, in so far as C&C expressly permits or admits emissions trading, what C&C in principle is forecasting is a totality of emissions distributed as permits to emit, which, should parties decide to do this, are tradable. So it is crucially distributing entitlements, equal entitlements to emit. That does not, by definition, obligate anybody to emit consistent with the volume of their entitlements; that is a crucial point. In respect of how the game actually plays out, the trading will be a function of the capping, not the other way around. C&C in effect pre-emptively establishes a stable basis on which to unfold this programme into the future. In respect of the very, very real problem of impending developing country emissions, the US, and frankly others, have quite rightly pointed out repeatedly that even if the US, which is 25% of annual emissions in any one year, even if they were unilaterally to take their emissions to zero, this would not protect us against dangerous rates of climate change. So they have, for 15 years, repeatedly said that all countries need to be involved, specifically, obviously, with an eye on India and China. India and China, when they were confronted with the proposition of emissions trading at the Kyoto negotiations in 1997, did not reject emissions trading. What they and the Africa group formally said was "If you want emissions trading, we want a contraction and convergence based allocation of this asset which is being created. That is the only basis on which we can see this actually being supported by everybody". I do not believe they substantially have changed that position. I have evidence with me today of the fact that at least two of those are specifically coming back with exactly that same agenda point now.

  Q70 Mr Challen: Just to put this in a different way, in the sense that politicians tend to look at things, we had before us some time ago, a former secretary of state for international development who had publicly expressed on a number of occasions that we were in no position to tell developing countries how to go about pursuing the wider use of energy in their countries and if that meant that they would have a fossil fuel burning power station, we should not be thrusting down their throats our green solutions to try to keep their emissions down to what we would like them to be in an ideal world. Could people perhaps use C&C as an argument? Perhaps they will not have fully comprehended C&C but perhaps they could still point to it and say that actually this legitimises that approach as expressed by that much lamented former secretary of state for international development.

  Mr Meyer: I believe you are talking about Clare Short.

  Q71 Mr Challen: I was not going to mention any names.

  Mr Meyer: When, before the Labour Party came to power in 1997, we went to see her on the eve of her appointment to the position that she held nobly for a very long time, we made the C&C argument to her and her staff. I remember her response to this. She lit up with an expression of absolute delight and started explaining it to her staff. I was delighted she was doing this. She said "Ah, you see this is the green synthesis". She in no sense was discouraging C&C. Can I ask you please, if you have copies of the evidence that we submitted with you at the moment, to look there at an image which I specially put it in with this kind of questioning in mind. It is on page 17. This is in annex 3 and this is an extract from an inter-governmental document preparing for IPCC's fourth assessment report, which is due to be published possibly in 2007. This is an event which took place in Colombo in the middle of last year, it was attended by the Indian Prime Minister who spoke at it and he was immediately followed by a man whose name is listed here as Kirit Parikh. In the formal output from that meeting, and bear in mind this is a full inter-governmental meeting, this is not just an Indian-only event, he expressly drew attention to contraction and convergence in the graphs. Those are his graphs on the right-hand side of page 17 at the top. He called it unfair convergence and contraction and "equitable" contraction and convergence. You will see from the words on the left and the point that he is making visually, if contraction and convergence were just a sort of slow process on the never-never where countries theoretically gradually came together over time as a result of God knows what, he would regard that as unfair. On the other side of the argument, he is saying that it is fair if developing countries, in principle, have the rights to emit at the same levels as developed countries. He drew those pictures by hand. If in fact you actually model it out, if you do all the full arithmetic, which is what the C&C model has intended always to do, you will see explicitly what that means. In my judgment this draws attention to the most important feature of C&C in the negotiating context, which is that you can contemplate the notion of convergence being accelerated relative to the rate of contraction, precisely because these are entitlements which are tradable rather than emissions per se. So we can accommodate developing country complaints about historic responsibilities, but still within an envelope of future consumption which makes it possible, to some extent, as it were to buy ourselves out of that particular bit of the difficulty.

  Q72 Mr Challen: I want to move on swiftly, so a couple of questions on the clean development mechanism. Do you have a view on whether that mechanism, providing for development assistance, should have been kept out of Kyoto?

  Mr Meyer: Yes, I do.

  Q73 Mr Challen: Why do you take that view?

  Mr Meyer: It was originally proposed once again I think by the Brazilians in this case, who called it the clean development fund, people have forgotten this. At the last moment, once again courtesy of the Americans, they adroitly converted it into a mechanism as opposed to a fund. This may or may not have been a good thing, but it was seen at the time as part of Kyoto; they have since withdrawn and everybody else has bought this possibly malformed baby. The difficulty here is that in addition to being, as it were, inadequate, its inadequacy has been imported into the bounded conditions of Kyoto compliance. So you can in effect import almost limitless, I am not saying that it is going to be done like this, but theoretically it can be done, you can import almost an infinite amount of credit into Kyoto to relax once again these already inadequate targets that people are working to. I am not saying that it should not be done: clean development is next to Godliness, I am sure that it is. However, to make this into international law and a basis on which we are going to solve climate change, I think is reaching beyond reality.

  Q74 Mr Challen: Do you think that developing countries would have the capacity to get actual benefit from the CDM? Is that going to be a big issue? It usually is in other global contexts.

  Mr Meyer: They are being pretty heavily pressured to accept all sorts of conditionalities that go with these programmes and that is probably par for the course no matter what is actually going to happen. The key point here is, in relation to the prior point that you raised in these graphs, whether in principle developing countries have the capacity to deal with C&C. I think it is somewhat inappropriate to suggest that they do not have the desire, let alone the capacity, to see the obvious benefits which C&C confers on everybody, but obviously starting with them.

  Q75 Mr Challen: Does it create any problems in the path of introducing C&C on a global scale? We still have a lot of convincing to do, obviously, but does it create any problems for C&C if we have lots of other things developing? Kyoto is an obvious example, but also possibly bilateral agreements which often happen. It happened with the WTO free trade agreements when America forged ahead with its agenda by using the bilateral route rather than always being terribly helpful at a global level and therefore you do not end up with a global fair trade system. Could that also be the fate of C&C if we go down a bilateral path?

  Mr Meyer: Well, I am going to be bullish and say no. They are not commensurable. The previous agendas of trade and debt and all the rest of it did not, by definition, have to be solved. It was not a threat to human destiny if world trade remained unfair or developing countries remained permanently indebted or even bankrupt. I do not think there is a bunch of bleeding hearts in the IMF going to have a sort of religious conversion if those things happen. They did not even get worried when Argentina went bust. The point about climate change is that it is potentially an extinction event if we fail to avoid it. The problem that the people you are holding up with alternative ideas actually have, is that you are somehow, by virtue of some kind of accident, going to aggregate a path integral which is consistent with C&C without it. Take the example of Kyoto, talking now about the so-called second budget period. I believe some people gave evidence to you only the other day during the course of which they said they were going into these negotiations, or everybody was going into these negotiations, with no pre-conceptions whatsoever about where this process was actually going to go. I mean, I have been attentive to your advice in printed form to avoid intemperate language, but I would suggest that this is inviting a suicide pact. To walk blindfold into this future is completely irresponsible; let us put it in temperate language like that.

  Q76 Mr McWilliam: That puts me in mind of a verse from Dylan Thomas. We tend to accept equal per capita distribution of emission rights within a society and we accept economic inequality in other respects: income, wages, things like that. Why should things be any different internationally?

  Mr Meyer: It is the same answer again, is it not? If the imperative is to deliver justice, I am all for it, but I do not see it happening. If the imperative is to deliver survival and this is the means to it, then I think it gains traction. I will tell you this for the record. I have had a long and friendly relationship with many of the American negotiators over the last 15 years and prior to Kyoto they asked me to do two things. One was to go and persuade the Chinese to accept contraction and convergence, which in effect we did, but that is a long story. The second point was to ask whether I honestly think we can ever reduce these negotiations to the two fundamentals, in other words the rate at which we contract and the rate at which we converge. I said yes. He said "But Aubrey, think of the precedent that would create for other situations." I said to him that it applies to carbon emissions; how far this actually goes is dependent on all sorts of things and I will not give you the exact example that I quoted to him at the extreme end of not wanting to share things equally per capita. He took the point: it is inclusive. The point I am trying to make eventually here is that it is the logic of our situation. We have to come up with something more robust than this, than just trying to guess our way through with a lot of flag waving and direction. I think the phrase of the Indian minister was "dither and drift", D&D. C&C is a cure for that.

  Q77 Mr McWilliam: What you are suggesting requires a major change in the kind of political outlook that we have not experienced before. As politicians, our time lines tend to be election to election. In my case, I am exempt from that; I am not even going to stand as a dog catcher. Do you not think that this is asking an awful lot of my colleagues who are not used to thinking in that way? How can we persuade them?

  Mr Meyer: I do not want to make any assumptions here about how you and your colleagues think.

  Q78 Mr McWilliam: I do not mean these colleagues.

  Mr Meyer: It is climate change which is imposing the challenge on us. Climate change is the problem: C&C is the solution. It is generically in the area called solution. The issue depends on how much we want to do what we have been very good at for the last several, probably tens of thousands of years and that is surviving. Historically, the pattern has been the sort of genetic programming characterised by things like the Selfish Gene. But Richard Dawkins wrote a chapter at the end of that book, which nobody seems to have read, or few people, which is the possibility to learn by means, by "mimetic" behaviour. And he explicitly made the point all those years ago, that if learning to cooperate is what it takes to survive, we will learn to do it. This is what people learn. C&C is about that, co-operation. It supersedes the competitive effort to which I suspect you and your colleagues may be still captive. Climate change is rearranging all of that: absolutely not C&C. I would also say this: if C&C does admit emissions trading, and I think in principle, subject to these rules, it should, it in no sense precludes the continuation of what we will call competitive behaviour. On the contrary, I would it would sharpen it intensely.

  Q79 Chairman: The problem is that we have been aiming at the same question now for about 20 minutes and the answer is always the same, which is that if we do not do it, we are all doomed basically and because we are all doomed if we do not do it, we will do it. That is the logic of your position.

  Mr Meyer: Do you disagree with it?


 
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