Hill Heat

1. Bali: In addition to setting a timetable for negotiating a comprehensive post-2012 agreement, the Parties should agree in Bali on four pathways for negotiation that address mitigation, adaptation, technology, and finance. Initial draft articles should be presented to the Conference of the Parties in 2008 as a first step towards concluding a new and comprehensive agreement in 2009.

2. UNFCCC: Given the scale of response required, and in order to avoid the most adverse impacts of climate change, there should be a comprehensive post-2012 agreement under the auspices of the UNFCCC. Targeted agreements – for example, on industrial sectors, energy efficiency, renewable energy, and technology cooperation – should be encouraged and incorporated within a new comprehensive agreement.

3. Targets and timetables: All countries should commit to reduce collectively global emissions by at least 60% below the 1990 level by 2050. Developed countries should take the lead in emissions reduction by adopting effective targets and timetables. As a first step, this could include a commitment to reduce their collective emissions by 30% by 2020. Rapidly industrializing countries should commit to reduce their energy intensity by 30% by 2020 (an average of 4% per year) and agree to emissions reduction targets afterwards. Other developing countries should commit to an energy intensity target differentiated by their responsibilities and capabilities. The international community should develop a monitoring and review system and clear criteria for determining when and how various categories of countries should assume stronger climate commitments.

4. Renewable energy and energy efficiency: Long-term policies, as well as measurable and verifiable targets, should be adopted by all countries to increase substantially the use of renewable energy and to promote greater efficiency in energy production and use. In addition, global standards for end-use efficiency should be developed and adopted.

5. Avoided deforestation: To reduce the emissions of carbon dioxide cost-effectively, a full range of interventions to create and maintain biological sinks of carbon should be included in a post-2012 climate change regime in order to capture the many co-benefits of sustainable livelihoods, land management, forestry, and biodiversity conservation.

6. Carbon pricing: In order to deliver the greatest climate benefits efficiently and effectively, a carbon price should be set through carbon taxes or trading. The preferable mechanism is a system of harmonized, universal carbon taxes. For a cap-and-trade system, well functioning and financially linked carbon markets need to be developed across the globe, incorporating various national and regional cap-and-trade programs. Emissions allowances should be auctioned, thus raising resources that can be allocated by national governments for other purposes, such as clean energy development and adaptation.

7. Adaptation: A post-2012 climate agreement should address both mitigation and adaptation. Adaptation should be seen as part of sustainable development and strategies to alleviate poverty. It should include vulnerability assessments, enhancing resilience to climate impacts, access to information and best practices, building human and institutional capacity, and making public and private investments in developing countries less susceptible to climate change. A substantial package of financial support, including public and private funds, should be established (see Recommendation 11). Centers for Adaptation in Agriculture should be established, particularly by the Consultative Group on International Agricultural Research in Africa.

8. Energy R&D: Recent declines in investments for energy research and development should be reversed. Research, development and demonstration of more efficient and less costly energy technologies, such as advanced solar thermal technologies, as well as carbon capture and storage, should be a high priority. Aggregate public expenditures should be increased to US$20 billion per year.

9. Clean energy deployment: In order to tackle climate change at the requisite scale, clean energy technologies should be made available and utilized by all countries. All developing countries, especially rapidly industrializing countries, should have access to clean energy technologies on preferential terms. The barriers that hamper the dissemination of such technologies in developing countries, such as intellectual property rights and competitive rules, should be overcome. In order to encourage collaboration on a “clean technology revolution,” the formation of a “Consultative Group on Clean Energy Research” should be considered as part of a global climate agreement. Innovation targets to bring new technologies to market, as well as incentives for meeting them, should also be considered.

10. Sustainable development financing: The Clean Development Mechanism should be reformed in order to deliver its full potential during the 2008-2012 commitment period, and in the post-2012 regime an additional market mechanism should support sectoral approaches capable of transforming whole sectors of rapidly industrializing countries at a speed commensurate with the challenge of taking emissions reductions to global scale.

11. Funding: Finance is a critical element of any strategy to address climate change effectively. A climate fund of additional resources, starting at US$10 billion and growing to US$50 billion per year, should be established to support climate change activities in developing countries (adaptation, avoided deforestation, and clean energy development and deployment) and should include both public and private resources. It should have an innovative structure and governance that is transparent and inclusive. In addition, existing mechanisms, such as the Global Environment Facility and the Multilateral Development Banks, should be strengthened and their resources enhanced to continue their important work in demonstrating new approaches, building human and institutional capacity, and leveraging private finance.