Transcript Background on the emergence of carbon labeling

Emergence of Carbon Labeling:
Why all the trouble?
Jiseok Kim
Commissioned Researcher
APEC SME Innovation Center
Consequences of a wrong price tag
Out of Business
Price of dumping CO2 in atmosphere?
Very low or ZERO
It doesn’t sound like much.
Index
Status
Global CO2
concentration
Up by 40% (@393 PPM)
Global temperature
Up by 0.7 ℃
Moisture content
Up by 5%
Ocean acidity
Up by 30%
 But consequences can be very expensive
Hurricane Sandy
Everyone knew it was coming…
People had taken measures to prevent damage
Cuba (Oct. 26 2012)
New Jersey, U.S.
New Jersey U.S.
New York, U.S.
Hurricane Sandy damage assessment
The costs could not be avoided
Droughts can be expensive too. And they now last much longer.
2012 UK winter flood with serious economic implications
It can be like a subprime mortgage crisis
DEFRA may not renew
their agreement for flood
defense in 2013.
 200,000 homes will
have no insurance
 No mortgage
 Slower economy
…and UK droughts
Life-threatening
Property-damaging
Dry places get drier. Wet places get wetter
Queensland
Sydney
Melbourne
Queensland: Once in a hundred-year flood in 2010 and 2011
Queensland flood (2010-2011)
Damage: $5.6 billion
$2.8 billion raised for flood relief by
budget cuts
$1 billion additional fund by delaying
infrastructure projects
Flood levy implemented (2011) for
everyone who earns more than
$50,000 per year
Flood insurance or relief fund become
mandatory for state government
Burden on Society
Life without climate change
Life with climate change
Solution:
Implement policies and
measures to achieve carbon
reduction.
Steady reduction in carbon emission need to be made
Delivery tools
Type
Example
Binding National reduction target
UK: 80%
Carbon tax
Australia: $23 USD (2012-2013)
Cap and Trade on large emitters
California, Australia, EU
Vehicle CO2 emission standard
US, EU
Dedicated ministry
Australia: Department of Climate
Change and Energy Efficiency
New Power plant emissions standard
UK: 450g/kwh
National CCS
None yet
Zero CO2 electricity future with
Renewables, Nuclear power, and Clean fossil fuels
Electricity imports /
exports
900
800
Non-thermal
renewable
generation
Nuclear power
700
TWh / year
600
500
Combustion + CCS
400
Unabated thermal
generation
300
200
100
0
2007
unabated use
(grey) of fossil
fuel must be
gone
2020
Domestic demand
2035
2050
29
National level policies are important but not enough
Emission unrelated to
consumer choice
Emission related to
consumer choice
Consequences of a wrong price tag
Benefits of carbon label
- Help consumers make more conscious choice
- Raise consumer awareness
- Improve business management
- Enhance business competitiveness
- And more
Carbon label:
An important complement to our incomplete price tag
$329
$399
$499
95 kg CO2e
105 kg CO2e
170 kg CO2e
Carbon label:
an important factor for b2b business as well
9 kg
CO2e
12 kg
CO2e
10 kg
CO2e
5 kg
CO2e
It can get much worse if we don’t take action
www.metoffice.gov.uk/climate-change
Change is happening but happening too slowly
“The transition to a low-carbon, inclusive
green economy is happening far too slowly
and the opportunity for meeting [scientific
advice on emissions targets] is narrowing
annually,”
- Achim Steiner, executive director of UNEP.
Carbon labeling can accelerate the transition.
Thank you
Contact: [email protected]