Transcript M09P01Globalization

CP551 Sustainable Development
“The need of a constantly expanding market
for its products chases the bourgeoisie over
the entire surface of the globe.”
- Karl Marx and Friedrich Engels [1848]
The Communist Manifesto
“Environmentalism as a norm has become
truly global, but so has mass consumerism.”
- A. Najam, D. Runnalls and M. Halle [2007]
Environment and Globalization: Five Propositions
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Module 9:
Globalization
and its impact on
Sustainable Development.
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What is Globalization?
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What is Globalization?
Source: http://en.wikipedia.org/wiki/Globalization
Globalization
as Internationalization: Cross-border relations between countries
as Liberalization: Removing government imposed restrictions on
movements between countries.
as Universalization: Spread of ideas and experiences across the
globe so that aspirations and experiences around the
world become harmonized.
as Westernization/
modernization: Global spread of the social
structures of modernity (capitalism, industrialism, etc.).
as Deterritorialization: Social space overcoming territorial places,
territorial distances and territorial borders.
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Source: Scholte, J.A., 2000. Globalization: A Critical Introduction.
Globalization of the Economy
Four key dimensions of economic globalization involve
the flows across national boundaries of:
- goods & services
- financial capital (FDI)
- labor (human migration and otherwise)
- technology & knowledge
R. Shanthini
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Source: http://www.darkseptemberrain.com/ideas/advantages.htm
Globalization of the Economy - positives
Increased free trade between nations.
Investors in developed nations investing in developing
nations.
Corporations have greater flexibility to operate across
borders.
Opportunities have increased so is competition.
R. Shanthini
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Source: http://www.darkseptemberrain.com/ideas/advantages.htm
Globalization of the Economy - negatives
Increased flow of skilled and non-skilled jobs to outsiders
as corporations seek out the cheapest labour.
Increased likelihood of economic disruptions in one
nation effecting all nations.
Corporate influence far exceeds that of civil society
organizations and average individuals.
Threat that control of world media by a handful of
corporations will limit cultural expressions.
R. Shanthini
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Source: http://www.darkseptemberrain.com/ideas/advantages.htm
Globalization of the Economy – negatives cont.
Spread of materialistic lifestyle and attitude that sees
consumption as the path to prosperity.
International bodies like the World Trade Organization
(WTO) infringe in national and individual sovereignty.
Increase in the chances of wars for limited resources.
Decreases in environmental integrity as polluting
corporations take advantage of weak regulatory rules in
developing countries.
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Source: http://www.darkseptemberrain.com/ideas/advantages.htm
Globalization of the Economy – negatives cont.
Multi National Corporations (MNCs) commodify,
commercialize, & exploit all sources of profit.
For example, since 1990, six water utility firms won contracts
to privatize public waterworks affecting 300M people in 56
countries.
These MNCs – Bechtel (U.S.), Suez, Vivendi Environnement,
Saur (France), United Utilities (UK), Thames Water (Germany)
– claim to be more efficient in providing cheaper, clean water
than often-corrupt public utility companies.
R. Shanthini
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Source: http://www.darkseptemberrain.com/ideas/advantages.htm
Globalization of the Economy – negatives cont.
Working with the World Bank, water barons lobby governments,
trade & standards INGOs to change municipal and trade laws.
By 2020 these firms may monopolize 67% of current public
water.
“Critics say they are predatory capitalists that ultimately
plan to control the world’s water resources and drive up
prices even as the gap between rich and poor widens.
The fear is that accountability will vanish, and the world
will lose control of its source of life.”
(Center for Public Integrity: www.icij.org)
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Source: http://www.darkseptemberrain.com/ideas/advantages.htm
Globalization of the Economy contd.
Pro-globalization lobby argues that globalization brings
about increased opportunities for almost everyone, and
increased competition is a good thing since it makes
agents of production more efficient.
Two most prominent pro-globalization organizations:
- World Trade Organization (WTO)
- World Economic Forum
R. Shanthini
18 Feb 2013
Source: http://www.investorwords.com/2182/globalization.html
Globalization of the Economy contd.
Anti-globalization lobby argues that increased competitive
pressure does not benefit certain groups of people (who are
deprived of resources, for example).
New opportunities have not been created for all.
Globalization has put pressures on the global environment
and on natural resources.
It can also enhance global inequities.
R. Shanthini
18 Feb 2013
Sources: A. Najam, D. Runnalls and M. Halle (IISD) 2007
Environment and Globalization: Five Propositions
and http://www.investorwords.com/2182/globalization.html
Globalization of the Economy contd.
Important anti-globalization organizations:
- Friends of the Earth
- Greenpeace
- Oxfam
- G77 (third world government organizations)
- European Farm Lobby (and other business
organizations and trade unions whose
competitiveness is threatened by globalization)
- Australian and U.S. trade union movements
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Source: http://www.investorwords.com/2182/globalization.html
Anti-Globalization Demonstration
(continued)
India in 2009
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Anti-Globalization Demonstration
(continued)
Hong Kong in 2005
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Anti-Globalization Demonstration
(continued)
Montreal, Canada in 2003
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Anti-Globalization Demonstration
(continued)
Doha in 2001
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Anti-Globalization Violence
Seattle, USA in 1999
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What’s wrong with WTO?
WTO ruled against in 2011 against U.S. “dolphin-safe” tuna
labels, a U.S. ban on clove, candy and cola flavored cigarettes,
and the highly popular U.S. consumer policy, country-of-origin
labeling (COOL) for meat cuts and products.
See the handout for top reasons to oppose WTO….
And, see WTO’s responses to the above in
http://www.wto.org/english/thewto_e/minist_e/min99_e/english/
misinf_e/00list_e.htm
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Globalization of Knowledge
As economies open up, information, culture, ideology and
technology spreads across the globe.
New technologies can solve old problems,
but they can also create new ones.
Technologies of environmental care can move across
boundaries quicker,
but so can technologies of environmental extraction.
Information flows can connect workers and citizens across
boundaries and oceans (e.g., the rise of global social
movements as well as of outsourcing),
but they can also threaten social and economic networks at the
local level.
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Source: A. Najam, D. Runnalls and M. Halle (IISD) 2007
Environment and Globalization: Five Propositions
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Source: http://www.offshoringmanagement.com/BlinderOffshoring.htm
Globalization of Governance
Globalization places great stress on existing patterns of global
governance; the expanding role of non-state actors; and the
increasingly complex inter-state interactions.
The global nature of the environment demands global
environmental governance.
But many of today’s global environmental problems have
outgrown the governance systems designed to solve them.
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Source: A. Najam, D. Runnalls and M. Halle (IISD) 2007
Environment and Globalization: Five Propositions
Globalisation of Sri Lanka
by Dr. S. Colombage
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Source: A. Najam, D. Runnalls and M. Halle (IISD) 2007
Environment and Globalization: Five Propositions
Let’s take a look at how globalization
assists in combating global warming.
Global warming is said to have caused by
greenhouse gases (GHG).
GHGs are gases in an atmosphere that absorb
and emit radiation within the thermal infrared
range. This process is the fundamental cause of
the greenhouse effect.
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The Greenhouse effect
A
SUN
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T
M
O
S
P
H
E
R
E
The main GHGs in the Earth's atmosphere
are water vapor, carbon dioxide, methane,
nitrous oxide, and ozone.
Without GHGs, Earth's surface
would be on average about
33°C colder than at present.
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Rise in the concentration of four GHGs
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Global Warming Potential (GWP) of different GHGs
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The burning of fossil fuels, land use change
and other industrial activities since the
Industrial revolution have increased the
GHGs in the atmosphere to such a level that
the earth’s surface is heating up to
temperatures that are very destructive to life
on earth.
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Time taken to reach equilibrium after the emissions peak
Magnitude of response
Sea level rise due to ice
melting takes several
millennia
CO2 emissions peak
0 to 100 years
Sea level rise due to
thermal expansion takes
centuries to millennia
Temperature
stabilization takes a
few centuries
CO2 stabilization takes
100 to 300 years
CO2 emissions
Today 100 years
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1000 years
So there was an urgent need for
global action to reduce GHGs.
United Nations Framework
Convention on Climate Change
(UNFCCC)
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Kyoto
Protocol
One
global
treaty
Another
global
treaty
United Nations Framework Convention on Climate Change
(UNFCCC)
UNFCCC sets an overall framework for
intergovernmental efforts to tackle the challenge posed
by climate change.
It recognizes that the climate system is a shared
resource whose stability can be affected by industrial
and other emissions of carbon dioxide and other GHGs.
The objective of the treaty is to stabilize GHG
concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the
climate system.
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Source: http://unfccc.int/essential_background/convention/items/2627.php
United Nations Framework Convention on Climate Change
(UNFCCC)
Under the Convention, governments:
- gather and share information on GHG emissions, national
policies and best practices
- launch national strategies for addressing GHG emissions
and adapting to expected impacts, including the provision of
financial and technological support to developing countries
- cooperate in preparing for adaptation to the impacts of
climate change
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Source: http://unfccc.int/essential_background/convention/items/2627.php
United Nations Framework Convention on Climate Change
(UNFCCC)
May 09, 1992: The Convention was adopted at the
United Nations Headquarters, New York.
June 1992 – June 1993: It was open for signature at the
Earth Summit (held in Rio de Janeiro) and thereafter at
the United Nations Headquarters, New York.
March 21, 1994: The Convention entered into force.
Currently, there are 194 Parties (193 States and 1 regional
economic integration organization) to the UNFCCC.
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Source: http://unfccc.int/essential_background/convention/
status_of_ratification/items/2631.php
Kyoto Protocol
The Kyoto Protocol is an international agreement linked to
the UNFCCC, and it is adopted at third Conference of
Parties (COP) to the UNFCCC in Kyoto, Japan, in 1997.
The major distinction between the Protocol and the
Convention is that while the Convention encouraged
industrialised countries to stabilize GHG emissions, the
Protocol commits them to do so.
Recognizing that developed countries are principally
responsible for the current high levels of GHG emissions in
the atmosphere as a result of more than 150 years of
industrial activity, the Protocol places a heavier burden on
developed nations under the principle of “common but
differentiated responsibilities.”
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Source: http://unfccc.int/kyoto_protocol/items/2830.php
Kyoto Protocol
Dec 11, 1997: The Kyoto Protocol was adopted in Kyoto,
Japan.
Feb 16, 2005: Protocol entered into force.
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Kyoto Protocol
The major feature of the Kyoto Protocol is that it sets
binding targets for Annex I parties for reducing the
emissions of the following GHGs:
- Carbon dioxide (CO2)
- Methane (CH4)
- Nitrous oxide (N2O)
- Sulphur hexafluoride (SF6)
- Hydrofluorocarbon (HFC) group of gases
- Perfluorocarbon (PFC) group of gases
The binding targets of Annex 1 parties amount to a
total of 5.2% below that of 1990 levels over 2008-2012.
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Source: http://unfccc.int/kyoto_protocol/items/2830.php
Annex 1 parties to Kyoto Protocol
Australia,
Bulgaria,
Denmark,
Germany,
Ireland,
Liechtenstein,
Netherlands,
Portugal,
Slovenia,
Turkey,
Austria,
Canada,
Estonia,
Greece,
Italy,
Lithuania,
New Zealand,
Romania,
Spain,
Ukraine,
Belarus,
Belgium,
Croatia,
Czech Rep.
Finland,
France,
Hungary,
Iceland,
Japan,
Latvia,
Luxembourg, Monaco,
Norway,
Poland,
Russia
Slovakia,
Sweden,
Switzerland,
UK,
USA
Countries with economies in transition to a market economy.
Annex II countries which is a subgroup of Annex 1 countries.
USA has no intention to ratify the Protocol.
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Emission trend of Annex 1 parties in 2005
Decreased emissions
(1990 baseline)
Increased emissions
(1990 baseline)
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Kyoto Protocol
USA, which was expected to cut the emissions 7% below
the 1990 level, has no intention to ratify the Protocol.
Since USA, which roughly contributes a quarter of the
world’s GHGs, has not ratified the Protocol and since a
number of parties to the Protocol has not so far met their
Protocol emissions target, the success of the Kyoto
Protocol is questionable.
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The Kyoto Mechanisms
Under the Treaty, countries must meet their targets
primarily through national measures.
However, the Kyoto Protocol offers them an additional
means of meeting their targets by way of three marketbased mechanisms, which are the following:
Emissions trading (ET), known as “the carbon market"
Clean development mechanism (CDM)
Joint implementation (JI)
The mechanisms help stimulate green investment and help
Parties meet their emission targets in a cost-effective way.
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18 Feb 2013
Source: http://unfccc.int/kyoto_protocol/items/2830.php
The Kyoto Mechanisms
ET - Emissions Trading
AAU (Assigned Amount Units) are exchanged between
Annex I countries
JI - Joint Implementation
Annex I investors receive ERUs (Emission Reduction
Units) by investing in a project in another Annex I nation
which reduces GHG emissions
CDM - Clean Development Mechanism
Annex I investors receive CERs (Certified Emission
Reductions) by investing in a project in a non-Annex I
nation which reduces GHG emissions
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Source: http://unfccc.int/kyoto_protocol/items/2830.php
Clean Development Mechanism (CDM)
CDM is a mechanism to ensure that Annex I countries can
meet their emission reduction target in a cost effective way by
financing GHG emission reduction in developing countries.
If an Annex I country finance an emission reduction project in
a Non-Annex I country, the project participants will be granted
”Certified Emission Reductions” (CERs), also called carbon
credits.
The number of CERs granted reflects the emission reduction;
an emission reduction equal to one metric ton of CO2 gives
one CER.
The CERs are tradable, and they can be used to supplement
national GHG emission reductions.
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18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
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Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
Annex I countries can not base all their emission reductions
on CERs.
The European Trading System (ETS) limits emission
reductions covered by CERs to 10 to 30 percents; the rest
must be real emission reductions in the home country.
There are two reasons for this limit; (1) to ensure that there
are not too many CERs on the market and (2) to ensure that
Annex I countries do not base all their emission reduction on
buying CERs without reducing emissions at home.
Only projects that contribute to sustainable development in
developing countries are accepted as CDM projects.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
Only projects that would not have taken place without the
CDM will be accepted as a CDM projects, and this is
referred to as the Additionality criteria. An example of
additionality is a wind power project that is not profitable
without the CDM, but with the added value of CERs it will be
profitable.
A financial and/or technical analysis has to be performed to
document additionality. The analysis has to highlight all
reasons why the project would not happen without the CDM,
and all technical, legal and infrastructural barriers must be
described.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
The idea behind additionality is to ensure that CDM projects
results in real emission reductions that would not have
happened in a business-as-usual scenario.
Another prerequisite for CDM projects is that there exists a
recognised method for calculating emission reduction. This is
referred to as the Methodology criteria.
Finally, CDM projects must also meet the host country’s criteria
for sustainable development.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
The complicated framework for registration of CDM projects
has lead to criticism because several sustainable projects find
the cost of CDM registration as a main barrier for the project.
As an example, several smaller solar energy projects in
developing countries have not taken place because of an
expensive and complicated process of CDM registration.
However, a new procedure called Programmatic CDM will
reduce this barrier because it allows similar projects to be
evaluated in one common process instead of several individual
processes.
Another problem is that many potential CDM projects do not
apply for CDM status due to lack of knowledge about the CDM
registration process.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
CDM projects include energy efficiency, renewable energy
production, methane emission reduction, and fuel switch
projects.
There are CDM projects within several industrial sectors
including power production; steel, cement and paper plants;
renewable energy; forestation; hydropower; and biomass.
Some projects are controversial, like large water dam projects
for hydropower and HFC23 projects (HFC23 is a GHG with a
global warming potential 11.700 times higher than CO2). The
HFC23 projects have so far been extremely profitable, and it is
therefore discussed to exclude HFC23 projects from the CDM.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
Clean Development Mechanism (CDM)
There are large commercial risks due to the uncertainty of
future CERs prices, since Kyoto protocol expires in 2012 and it
is highly uncertain what happens with CDM post Kyoto.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
There is a common international
understanding that there is a need for a
mechanism like CDM also beyond 2012, but
one challenge is to establish a mechanism
that all countries can agree on, including the
U.S. and other countries that have not
ratified the Kyoto protocol.
The world failed to reach any such global agreement in
Copenhagen, Denmark, in the 15th Conference of
Parties to the UNFCCC (COP15) on Dec 19, 2009.
R. Shanthini
18 Feb 2013
Source: http://www.bellona.org/factsheets/1191918665.67
16th Conference of Parties to the UNFCCC
(COP16) was the main climate change
conference of the year held
in Cancun, Mexico
from November 29 to December 10, 2010.
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Source: http://www.justmeans.com/COP15-is-over-when-is-COP16/
10292.html
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The outcome of the summit was an agreement, not a
binding treaty, which calls on rich countries to reduce
their greenhouse gas emissions as pledged in the
Copenhagen Accord, and for developing countries to
plan to reduce their emissions, to limit global warming
to less than 2 degrees celsius above pre-industrial
levels. The agreement includes a proposed $100
billion a year fund to assist poorer countries finance
emission reductions and adaptation.
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The New York Times described the agreement as follows:
"major step forward" - given that international negotiations had
stumbled in recent years
"fairly modest" - as it did not require the changes that scientists
say are needed to avoid dangerous climate change.
how the proposed climate fund will be financed is not
specified.
The legal form of and the level of emission reductions required
were deferred for other meetings.
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18 Feb 2013