Methods for quantifying the benefits of sustainable development policies and measures (SD-PAMs)

CLIMATE POLICY 8 (2008) 119–134 doi:10.3763/cpol.2007.0433 © 2008 Earthscan ISSN: 1469-3062 (print), 1752-7457 (online) www.climatepolicy.com How can the concept of sustainable development policies and measures (SD-PAMs) be operationalized in a multilateral climate regime? The strategic approach is to focus on policies and measures that are firmly within the national sustainable development priorities of developing countries but which, through the inclusion in an international climate framework, recognize, promote and support means of meeting these policy priorities on a lower-carbon trajectory. The concept of SD-PAMs is further elaborated in two ways: (1) possible methods for quantifying SD-PAMs and (2) policy design. An important step in operationalizing the concept of SD-PAMs is the examination of available methods to quantify their benefits. Four ways to quantify the effect of SD-PAMs on development and emissions are identified: (1) case studies, (2) national energy modelling, (3) analysis of sectoral data and (4) inclusion of policies in global emission allocation models. Each of the methodological approaches has its strengths and weaknesses, but these approaches are demonstrated as being capable of quantifying the effect of SD-PAMs on development and emissions. Formalizing the commitment of SD-PAMs could be aided by more fully elaborating these methodologies. Formal recognition could be given either by listing countries in an Annex to the Convention or by including the pledged policies in a dedicated register. Regular reporting on the sustainable development and climate benefits of SD-PAMs could take place through national communications or a separate reporting mechanism. Incentives for SD-PAMs could come from both climate and non-climate funding. Development funding through other agencies could also be mobilized. International finance will be critical, as will the mobilization of domestic investment.