Developing Countries

Benefits to developing countries start with the common but differentiated responsibility principle comprehensively fulfilled, at both collection and distribution points.
The scheme is also

  • both global (as per the IMO)
  • and differentiated (as per the UNFCCC) in that the regime applies only to the emissions associated with cargo destined for Annex I Parties (in the current regime)
See the proposed Global but Differentiated principle how both goals are reconciled, especially for how the principle of common but differentiated responsibilities and respective capabilities is achieved.

Benefits to developing countries

    The benefit areas for developing countries include (assuming that only emissions attributable to Annex I countries are in scope):
  1. Adaptation: Major funding for adaptation to climate change in developing countries
    • Estimated at $2.5bn+ per annum (assuming equal split of funds between mitigation and adaptation, and carbon market price of $30/tCO2)
    • This innovative approach to reduce the gap in financing of adaptation seems essential. Thus far the international community has promised approximately $200m for adaptation measures, but the required funds are estimated at tens of $billions (circa 100:1 gap ratio)
  2. Mitigation: Significantly increased demand for REDD, CDM & JI projects
    • The additional global demand estimated in excess of 150MtCO2 in 2012
    • The current oversupply of CDM/JI drives the prices down, while lack of major funding does not stimulate REDD
  3. Technology benefits
    • Significant increase in financing of maritime R&D, estimated at $1bn (stimulation of innovation globally)
    • Transfer of technologies to developing countries