Reducing CO2 and other emissions from shipping - Environmental Audit Committee Contents


Examination of Witnesses (Question Numbers 164-179)

DR TERRY BARKER AND DR ALICE BOWS

18 NOVEMBER 2008

  Q164 Joan Walley: Thank you both very much indeed for coming along. We value the contributions that Tyndall has actually made to our Committee. The Government has repeatedly affirmed that its overall climate change goal is limiting the rise in global temperatures to no more than 2°C, but to help set our current inquiry into context, could you briefly describe the scale and urgency of the cuts in annual emissions required by countries such as the UK in order for us to have a good chance of meeting this target? We really need to know what urgency there is about meeting the targets on an incremental level?

  Dr Bows: The issue of aiming for 2°C means that when you apportion emissions to different nations you need to be aware of the cumulative amount of emissions over a particular amount of time that can be released by each country in order to meet that 2°C goal. If you look at what that actually means, if you look at what has come out of the latest IPPC report, they produce a carbon budget, if you like, for the century and if you know what your emissions are now and you know what the emissions are that you have released in the first few years of the century, you can work out what you have left for the remainder. What the results seem to illustrate is that if we do not peak our emissions globally by around 2015 then the kind of emission reductions that will be required post-2015 will be extremely challenging and we will essentially need to be decarbonising by between 2030 and 2050 globally to meet this 2°C target. What that will mean for countries like the UK that release a lot of emissions already, so per capita emissions are very high, is that the sooner we start to reduce those emissions the better and really we need to be looking at peaking our emissions within the next five years or so, otherwise the emission reductions that will be required per year within the UK will need to be between 6-10% per year, so extremely challenging and far in excess of those percentages that we are currently discussing.

  Q165  Joan Walley: If what you are saying is so clearly supported by the evidence, which I think certainly our Committee accepts is the case, can you help us understand why national targets in this country and elsewhere are so far apart from the very steep emission cuts in the years to 2030? If what you are saying is based on the evidence, and that makes sense about the need to get there in this incremental way, why do we still have this gap?

  Dr Bows: One of the problems is that what we are not doing is looking at the emissions that we have already released and also the emissions as they are growing at the moment. The emissions in the last six years have grown globally at around 3.3% per year, I believe it is, which is greater in percentage terms per year than it has been in the last 100 years on average. Thus the rates of growth are increasing but often when people do an analysis they will assume that emissions can start to decrease from next year and because it is the accumulative emissions that are important, so because the area under the curve matters, if you like, between now and some future date, say, 2050 or 2001, if you do not account for the fact that the emissions are still rising and eating up a proportion of that budget very rapidly then your end point target will not be consistent with the climate change goal for which you are aiming. You need to account for those emissions in the short term and we tend to forget that emissions are still growing and we tend to forget that the emissions are already very high. In addition to that, we generally omit from our budgeting international aviation and shipping which will also eat up a proportion of our budget, and within the UK that is a reasonable proportion, so for aviation it is around 6% in any one year and shipping it is difficult to say based on the data but it could be between 5 and 6% as well.

  Q166  Joan Walley: Did you want to add to that, Dr Barker?

  Dr Barker: First of all, I would like to thank the Committee for inviting me to give evidence this morning. Secondly, I would say that my evidence is based on the Summary for Policymakers of the Fourth Assessment Report of the IPPC Working Group III, which I have worked on over the last four or five years. The Summary for Policymakers has a chart in it which shows the 2°C target and its relationship with greenhouse gas concentrations and emissions. The main thing to be said about this chart is the degree of uncertainty and risk between trying to achieve a 2°C target and the profile of emissions to achieve that target, and so there are uncertainties throughout the global climate system, from the scale of emissions right through to the effect of the damage at the end. As you know, the UNFCCC Framework for Climate Change has as its objective the "avoidance of dangerous climate change", and the European Commission has interpreted that as the 2°C target and the UK Government has signed up to this 2°C target. Going from 2°C to the emission profile is fraught with uncertainties and indeed the science is far from complete. There were not enough studies covered at the time of the Fourth Assessment Report to say anything with certainty or even with reasonable scientific reliability. What we could say is something about a target which was much weaker than the 2°C. This is a question of the probability of achieving that 2°C. In fact, the evidence on the basis of the studies that have been done gives us, for the lowest category of studies, a 50% or less chance of achieving 2°C. Since we are talking about dangerous climate change we want to have a much higher probability of achieving it. In my view, it should be more like a 80 or 90% chance of achieving it but to do that we would have to have a much lower concentration level, probably more like 350 ppm CO2 equivalent which is the kind of target that somebody like Jim Hanson would advocate and the group 350°C, which is a group which was formed earlier this year. The issue really is that there is not enough scientific evidence on the modelling of these more stringent targets.

  Q167  Joan Walley: So there is not enough scientific evidence?

  Dr Barker: Scientific evidence to look at the more stringent targets. We have done a meta- analysis of what there is to work out the costs of going to the more stringent targets, and we have worked out that the costs are a very wide range of costs including benefits depending on the policies being followed whether the revenues from carbon taxes and auctions were recycled or not, and even that excludes some extremely substantial potential benefits, for example improvements in air quality in developing countries' urban areas.

  Q168  Joan Walley: You are saying there is not enough scientific evidence. Are you involved in any further research?

  Dr Barker: We are indeed. There is a major initiative by the European Commission's Directorate for Environment looking at 400 ppm CO2 equivalent. That is probably not sufficiently stringent but it is much better than the 450 and 550 which had been looked at in the earliest days. This is being complemented by work elsewhere. The different modelling approaches attempt to achieve these targets using the models and this yields different profiles of the emissions over the next century. There are widely different profiles possible. For example, at the moment we are at the beginning of a major global depression which may be greater than the Great Depression. During the Great Depression in 1929-32 global CO2 emissions fell by 35%. In my view, it is possible that global CO2 emissions could fall by 40 or 50% if the policies are going to be followed by world governments as we have been seeing. In other words, we might achieve the target much more quickly than we expect but in a most unfortunate and damaging way to the world's economy.

  Q169  Joan Walley: This particular inquiry is about shipping and so in the context of what you have just referred to could I just move on to shipping because we were very much aware that previously you had criticised the Climate Change Bill for not including international aviation and shipping. This Committee is very interested in your views on the very welcome announcement that the Government is going to take these emissions into account when setting UK carbon budgets. We would be very interested in your response to that.

  Dr Bows: Personally I would like to know what "taking them into account" means and how they are actually going to be considered. We often club aviation and shipping together as though they are one very similar entity and my view is that they are quite different. We have a lot better understanding of the emissions from the aviation sector and how perhaps to apportion them to a nation whereas international shipping is more problematic due to the kind of routing that you get so there is often not just a start and a destination, there might be many points in between which, makes it much more problematic. Personally I would welcome the idea that we are going to be considering international aviation and shipping emissions when budgeting and it is therefore important to make as best an approximation as possible as to the emissions in order that we can tell how well the other sectors are doing in relation to our overall climate change goal. That does not necessarily mean that you would have to have a sophisticated method of emissions apportionment for aviation and shipping but just to have an idea of the quantity so that you can also look at the quantities from the other sectors and see how they are reducing over time. In my view, I think that we could actually put international aviation into the Climate Change Bill sooner than international shipping simply because we have a better understanding of the overall emissions from aviation.

  Q170  Joan Walley: In terms of understanding all of that in relation to shipping, whose role would you see that as being?

  Dr Bows: To improve the data?

  Q171  Joan Walley: Yes.

  Dr Bows: My understanding—and Gillian Reynolds will be able to give more information on this—is that there is a lot of information and data that is collated or gathered from different shipping organisations perhaps the International Chamber of Shipping or some intermediary would have a role in gathering this data for the purposes of something such as this. They could take the data from the shipping organisations and gather it in such a way that it is useful.

  Dr Barker: There are differences between aviation and shipping but I think it is probably wise to treat them together for various reasons. The first one is that they are both outside the Kyoto Protocol and are not covered in the negotiations so they needed to be treated together. They both concern international waters and airspace and of course they both have activities in remote areas of the globe and pollute the environment in remote areas which are not covered by the usual national protocols and treaties. The most important reason is that there is actual substitution between them, particularly on freight. If you look at the relationship between the carriage of freight you will find that the huge increase in freight by aviation is partly because of a substitution away from shipping. There is a possibility of substitution between them and so from an economic point of view it makes it quite important to treat them together, particularly if we are decarbonising. I do have various other reasons for arguing that they should be treated together. I suspect if there is a scheme to decarbonise international transport it will be much more efficient and the effect of having lower costs if shipping is treated with aviation. I have various arguments about that which are in this paper.

  Q172  Joan Walley: Assuming that all of this could be done, and that the UK's share of international shipping emissions could be assessed and audited in that way, how do you think that would affect the size and the urgency of the carbon cuts that our country should be making in any case?

  Dr Bows: If you have a set budget then obviously if you start from a higher value because you have included international aviation and shipping then you will be using up your budget more rapidly. I would imagine that you would be looking at an increase in the percentage reductions per year depending on the period over which you look at your carbon budget. I do not know the actual detail on that but I think the idea is that you will be using up your budget more rapidly so you would need to account for that and make sure that you consider that when looking at your interim targets.

  Q173  Mark Lazarowicz: Dr Barker, you proposed earlier this year a Global Emissions Trading Scheme in international shipping and aviation (GETS). What has been the reaction to your proposal since you put it forward?

  Dr Barker: There has been considerable interest in developing countries basically because of the potential for large flows of incomes to fund Clean Development Mechanism projects or adaptation projects in developing countries. I do not know exactly what was put on the table at the G-20 but I would not be surprised if there was some mention of our scheme. The G-20 meeting is in progress or has just taken place. There are various developing countries that have shown great interest. We have had a lot of interest also of course from the IMO and the aviation bodies, IATA, which is a private body and then the UNFCCC body which ICAO are on.

  Q174  Mark Lazarowicz: How would that differ from the strategy of moving forward by linking to regional schemes?

  Dr Barker: The linking to regional schemes is complementary to the international schemes. The scheme is for international transport, ie it is outside national boundaries. I include in national boundaries the fictional boundary there is above us in the air. Your Committee might have come across these rather odd definitions of what is an emission and whether it comes to a country or whether it suddenly goes into the world atmosphere. The scheme as here is about international emissions and that is outside national boundaries. That would be complemented, for level playing field arguments, by national schemes which would cover aviation and shipping within national jurisdictions. Obviously you would not want any difference between the two and the great advantage of complementing it is that the large continental economies such as China, the United States, Russia, which have got huge aviation fleets with very substantial emissions, which until the Greater Depression, as I am calling it, would appear to be growing out of control (there is a 20% per annum growth rates in Latin American countries) could be covered by such a scheme and yield very large amounts of revenues as the growth is curtailed by the Emissions Trading Scheme now.

  Q175  Mark Lazarowicz: Have you had any sympathy to these proposals in precisely those countries?

  Dr Barker: No, we have not. The countries which are most interested are countries which tend to be desperately in need of funds.

  Q176  Mark Lazarowicz: Can you clarify under your proposal what size of cuts would need to be made from the shipping sector itself, ie rather than buying credits from other sectors?

  Dr Barker: From shipping?

  Q177  Mark Lazarowicz: Yes, I mean, is it an integrated shipping and aviation scheme?

  Dr Barker: Yes it is and we have not done any in depth studies. My work has been dominated by the events of the credit crunch, but we have very great plans to work on looking at the effects of decarbonising transport. We intended to do some of it but events took hold.

  Q178  Mark Lazarowicz: In which case you may not be able to answer this question fully at this stage but can you give us your assessment of how very ambitious cuts in shipping would require new technology rather than more incremental type of improvements?

  Dr Barker: That is a very interesting question. Typically if there is no carbon price at all, there is no price signal, then industry sectors like shipping do not care about CO2 emissions, it is just not in their budget. As soon as there is a carbon price, even a tiny one, there will be remarkable changes because they will suddenly look at things that they had never thought of before and start doing them and old, very wasteful emitting ships will suddenly disappear from the fleets, especially at a time when the fleets are being reduced because of a global depression. I do not know if the Committee is aware that, for example, shipping rates have collapsed, things like this are happening on the most frightening scale at the moment. If there was a carbon price in there or a signal was put into the system, then you would find there would be enormous differences in how the system responded in the face of the cut down in the trade. In other words, they would focus much more on high CO2-emitting shipping. That would be what would go first because why would you keep that going and have to pay prices on it when the others would be much less?

  Q179  Mark Lazarowicz: I am interested in what you say because we have had other evidence submitted to the Committee which has suggested that whether you use a levy system or a market-based system, shipping companies would be able to pass the cost quite easily on to the end consumer precisely because it is fairly small part of the overall cost.

  Dr Barker: Absolutely.



 
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