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The Implementation of Climate Change Mitigation Policy after Paris Agreement

The Implementation of Climate Change Mitigation Policy after Paris Agreement
A Comparative Study on EU, AU, China and Korea
Kim, Eun JungStefan WeishaarAnil BhattaXiaoping Zhang
KLRIGroningen UnivCarbon Market AdvisoryCentral University of Finance and Economics
Publication Year
1. 本院의 承認없이 轉載 또는 譯載를 禁함. Ⓒ
2. 이 보고서의 내용은 본원의 공식적인 견해가 아님.
INDCs; ETS; Paris Agreement; Emissions Reduction; Climate Change; Renewable Energy; Energy Efficiency; Carbon Market Linkage
Research Report
기후변화법제 연구, 16-19-③
261 p.
Ⅰ. Background and Purpose
□ With its clear goal, universal participation and innovative mechanism, Paris Agreement is a major step forward beyond Kyoto Protocol under UNFCCC.
○ As the world largest carbon emitters, the developed countries or fuel fossil exporters, EU, AU, China and Korea are the integral actors in any movement that will stabilize the global climate at conditions suited to sustainable development for Environmental protection and quality of life around the world.
○ For a better understanding of their climate laws and policies as well as a better cooperation among those countries and other countries in the world, a comprehensive study of the evolvement of the chosen 4 countries’ climate regime at pre and post-Paris era is of great importance both in theory and in practice.
□ Many countries such as EU, AU, China and Korea have signed the Paris Agreement and have ratified this Agreement.
○ They are going to plan and operate (Intended) Nationally Determined Contributions that are to be implemented between 2020 and 2030.
○ It is very meaningful to understand other NDCs and analyze their implementations for 2030 to find out the application of the most effective ways.

Ⅱ. Major content
□ The European Union and seven Member States have ratified the Paris Agreement.
○ The European Union committed itself to reduce greenhouse gas emissions by 40% below 1990 levels by 2030.
○ The target constitutes a significant strengthening of the emission reduction targets.
○ This chapter reviews the European Union’s climate change policy including the EU Emissions Trading System, Fluorinated Gases, Energy efficiency, Renewable energy and transportation and the diverse measures taken or planned by the European legislator.
○ The European Union has already initiated the legislative procedures in the Emissions Trading sector. In the area of the non-covered sector emissions will be reduced through a multitude of measures. The measures here are in a less advanced state. Sometimes they are in the legislative process, other times they are yet to be proposed.
□ Australia has committed to emissions reduction targets under the Kyoto Protocol (1997) and the Paris Agreement (2015).
○ Under the Paris Agreement, Australia has committed to reduce greenhouse gas (GHG) emissions by 26 per cent to 28 per cent below 2005 levels by 2030, which is way below the target (i.e. 45 to 65 per cent below 2005 levels) recommended to the Government by the Australian Government Climate Change Authority.
○ The Government aims to achieve its 2030 target mainly through the implementation of Emissions Reduction Fund (ERF), which is funded by tax payers’ money, and its Safeguard Mechanism.
○ However, existing climate policy of Australia is unlikely to meet its 2030 target under the Paris Agreement.
□ Climate Change policy in Australia is the most contentious and divisive issues in Australian politics.
○ The country has witnessed numerous climate change policy designs and the repeal of carbon tax law.
○ Australia will need a stable, comprehensive and committed climate change policy accepted by major political parties to meet its emissions reduction obligations under the Paris Agreement.
○ Therefore, bipartisan support for climate change policy is vital to drive down Australia’s emissions and achieve its international obligations under the Paris Agreement.
□ The political responses to climate change in China is a reinforcing process.
○ Due to the comprehensive nature of addressing climate change, China adopted a two-tier structural institutional design. Since 2007, China has adopted a series of policies regarding adjusting industrial structure, increasing energy efficiency, optimizing energy structure, carbon sink, launching emission trading system, and adaptation.
○ China’s approach to climate change are characterized by policy-drive, relying on command-and-control, and top-down regime. In China, climate change law is a fragmental system, with several environmental and energy laws that have indirect impacts on climate change and lacking a comprehensive and fundamental climate change law.
□ China impressed the world by making substantial pledges and figure out convincing action plans in the NDC submitted to the Paris Conference.
○ This marked a significant turn of China’s climate change policies from a follower to a leader. Technically, China’s INDC has some unique features which may attract concerns and criticisms. Considering its huge population, ongoing urbanization, and coal-dominated energy structure, there are enormous challenges and difficulties in achieving China’s INDC targets.
○ China is preparing to adopt Environmental Protection Tax and launching a nationwide ETS. A strict and powerful accountability system is promising to ensure the implementation of the climate policies.
○ Although Paris Agreement is a paradigm shift of global climate governance, China still insist the principle of common but differentiated responsibilities and win-win approach to enhance international cooperation.
○ As always, China imbeds the topic of climate change into economic development, and explores with great effort a low-carbon development model which will benefit China and the world.
□ In Korea, there are a variety of discussion for a rational and economical system for execution of the emissions reduction, while preventing the side-effects that can occur by inducing economic rationality under Paris agreement
○ Under the motto of Green Growth, The Framework Act on Low Carbon, Green Growth was enacted as an act integrating the regulations in various fields like environment, energy, and economics, enacted to accomplish different policy purposes, under the comprehensive policy goal of low carbon, green growth as well as ETS.
○ Korean ETS has been operating since 2015 for efficiently reaching the 2020 national greenhouse gas reduction target (30% reduction compared to BAU), and tried to make the carbon market more activated and stabilized.
○ Based on the energy plan and INDC, it is focused on the foundation for invigorating green technology development through investment in facilities and development of new and renewable energy.

Ⅲ. Expected effects
□ This paper presents the evolution of climate change policy in EU, AU, China and Korea.
○ In EU, it is expected that the cost-burden of abatement will differ considerably between the covered and the non-covered sectors as well as among the non-covered sectors, and this gives rise to inefficiencies. Therefore, the costs of meeting the Paris Agreement could be reduced by relying more heavily on the EU ETS sector.
○ In AU, it is expected that Australia has tried to make some policy and legislation amended or enacted considering its past and present climate change policies and legislations, and it is for Australia’s INDC and its implementations under the Paris Agreement including carbon market linking opportunities.
○ In China, it offers an insider’s understanding and a bird view of climate change law and policy in China on the view of China’s political and institutional context to illustrate the dynamics of evolvement with inspiring insights.
○ In Korea, it has considered to make more investment for renewable energy and the improvement of energy efficiency under INDC at Paris agreement, and could be expected to make the carbon market linked with the international market after 2020 or further.
Table Of Contents
Chapter 1 15

Chapter 2 European Union 19
1. Background on the European Union 19
2. EU’s past-climate change policy and legislation 21
3. INDC key issues 39
4. Implementations under the Paris agreement regarding environmental effectiveness and economic efficiency including linking 44
5. EU’s recommendations 64

Chapter 3 Australia 65
1. Overview 65
2. Past-climate change policy and legislation - A convoluted journey 67
3. Implementations under the Paris agreement regarding environmental effectiveness and economic efficiency including linking 91
4. Recommendations and future plans 105

Chapter 4 China 107
1. Past-climate change policy and legislation 107
2. INDC key issues 165
3. Implementation under the Paris agreement regarding environmental effectiveness and economic efficiency including linking 176
4. Recommendations and future plans 190

Chapter 5 Korea 195
1. Past-climate change policy and legislation 195
2. INDC key issues 202
3. Implementations under the Paris agreement regarding environmental effectiveness and economic efficiency including linking 209
4. Recommendations and future plans 213

Chapter 6 Conclusion 231
References 237
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