Syndicate content

private sector

How civil society and others achieved the Paris Climate Agreement

Duncan Green's picture

Michael JacobsA brilliant analysis by Michael Jacobs of the success factors behind last year’s Paris Climate Agreement appeared in Juncture, IPPR’s quarterly journal  recently. Jacobs unpacks the role of civil society (broadly defined) and political leadership. Alas, it’s over 4,000 words long, so as a service to my attention deficit colleagues in aid and development, here’s an abbreviated version (about a third the length, but if you have time, do please read the original).

The international climate change agreement reached in Paris in December 2015 was an extraordinary diplomatic achievement. It was also a remarkable display of the political power of civil society.

Following the failed Copenhagen conference in 2009, an informal global coalition of NGOs, businesses, academics and others came together to define an acceptable outcome to the Paris conference and then applied huge pressure on governments to agree to it. Civil society effectively identified the landing ground for the agreement, then encircled and squeezed the world’s governments until, by the end of the Paris conference, they were standing on it. Four key forces made up this effective alliance.

The scientific community: Five years ago the Intergovernmental Panel on Climate Change (IPCC) was in trouble. Relentless attacks from climate sceptics and a number of apparent scandals – the ‘climategate’ emails, dodgy data on melting Himalayan glaciers, allegations surrounding its chairman – had undermined its credibility. But the scientists fought back, subjecting their work to even more rigorous peer-review and hiring professional communications expertise for the first time. The result was the IPCC’s landmark Fifth Assessment Report, which contained two powerful central insights.

First, the IPCC report introduced the concept of a ‘carbon budget’: the total amount of carbon dioxide the earth’s atmosphere can absorb before the 2°C temperature goal is breached. At present emission rates, that would be used up in less than 30 years. So cutting emissions cannot wait.

The other insight was that these emissions have to be reduced until they reach zero. The IPCC’s models are clear: the physics of global warming means that to halt the world’s temperature rise, the world will have to stop producing greenhouse gas emissions altogether.

The economic community: But it was a second set of forces that really changed the argument. Since the financial crash in 2008–2009, cutting emissions had fallen down the priority lists of the world’s finance ministries. The old orthodoxy that environmental policy was an unaffordable cost to the economy reasserted itself. A new argument was required.

Tackling inequality is a game changer for business and private sector development (which is why most of them are ignoring it)

Duncan Green's picture

Oxfam’s private sector adviser Erinch Sahan is thinking through the implications of inequality for the businesses he interacts with.

Mention inequality to a business audience and one of two things happens. They recoil in discomfort, or reinterpret the term – as social sustainability or doing more business with people living in poverty. Same goes for the private sector development professionals in the aid community (e.g. the inclusive business crowd).

A good example is the UN Global Compact, which steers companies on how to implement the SDGs. They completely side-step the difficult implications of inequality on business and redefine the inequality SDG as boiling down to social sustainability or human rights / women’s empowerment goal. All good things that we at Oxfam also fight for, but these can all happen simultaneously with increasing concentration of income and wealth amongst the richest – i.e. rising inequalityWe know that rising inequality is one of the great threats to our society and economy. So why is business and the aid world so uncomfortable with tackling it head on?

Man picks tea leaves at Kitabi Tea Processing FacilityInequality is a relative rather than an absolute measure. This often makes it a zero-sum game – to spread wealth and income more equally, someone probably has to lose. But the intersection of business, sustainability and development has become locked into an exclusive focus on win-win approaches where there are no trade-offs and everyone gets their cake and eats it too. Addressing inequality often hits the bottom line – meaning changes to the prices paid to farmers, wages paid to workers, taxes paid to government and prices charged to consumers. But there is hope. Through a new lens (or metric) that should drive how business addresses inequality: share of value.

Don’t confuse this with Creating Shared Value, which is focused on the win-win (without commenting on how the created value is shared). What I’m proposing is a measure that compares businesses on how they share value with workers, farmers and low-income consumers. In fact the concept dates back to the original principles underpinning the fair trade movement some decades ago.

Stirred, not shaken: blended finance for climate action

Kruskaia Sierra-Escalante's picture
 Ivelina Taushanova / World Bank Group
Photo: Ivelina Taushanova / World Bank Group


Today, over 80 million tons of CO2 will be emitted from economies around the world. Tomorrow will be the same, as will the day after that. The emitted amounts of CO2 will likely stay in the atmosphere for hundreds, if not thousands of years, further compounding the challenges in reversing the current and expected effects of climate change.

This past December, in Paris, leaders of 195 nations of the world agreed that this trend must be reversed, signaling a historic turning point in the global fight against climate change. The Paris Agreement ratified a global consensus to limit the global average temperature rise to ‘well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.’ Developing nations were at the forefront of this agreement, with almost every one of them setting carbon reduction goals. While the public sector will play a major role in helping achieve the ambitious targets, the sheer volume of investment required to support low-carbon energy, transportation, and agriculture projects throughout the developing world leaves a gap of hundreds of billions of dollars that only the private sector is in a position to fill.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.


Middle-Class Heroes: The Best Guarantee of Good Governance
Foreign Affairs
The two economic developments that have garnered the most attention in recent years are the concentration of massive wealth in the richest one percent of the world’s population and the tremendous, growth-driven decline in extreme poverty in the developing world, especially in China. But just as important has been the emergence of large middle classes in developing countries around the planet. This phenomenon—the result of more than two decades of nearly continuous fast-paced global economic growth—has been good not only for economies but also for governance. After all, history suggests that a large and secure middle class is a solid foundation on which to build and sustain an effective, democratic state. Middle classes not only have the wherewithal to finance vital services such as roads and public education through taxes; they also demand regulations, the fair enforcement of contracts, and the rule of law more generally—public goods that create a level social and economic playing field on which all can prosper.
 

Humanitarian reform: What's on - and off - the table
IRIN News
As pressure mounts to come up with concrete proposals for the future of humanitarian aid, horse-trading and negotiations have begun in earnest behind the scenes in the lead-up to the first ever World Humanitarian Summit (WHS), to be held in Istanbul in May. The release this week of the UN secretary-general’s vision for humanitarian reforms marks one of the last stages in a multi-year process that has seen consultations with some 23,000 people around the world on how to improve crisis response. (See: Editor’s Take: The UN Secretary General’s vision for humanitarian reform)  Hundreds of ideas are floating around. Which are now rising to the top? And which are being pushed to the side? Here’s our take on the emerging trends:
 

"Every time I see a problem, I create a social business to solve it"

Marta Milkowska's picture

(c) Marta Milkowska“Every time I see a problem, I create a social business to solve it,” renowned Nobel Prize laureate Muhammad Yunus said to an overflowing room at the World Bank Group’s Headquarters in Washington, DC this summer. “Set up a social business.”

“The poor are like Bonsai trees,” the founder of Grameen Bank explained, “When you plant the best seed of the tallest tree in a six-inch-deep flower pot, you get a perfect replica of the tallest tree, but it is only inches tall. There is nothing wrong with the seed you planted; only the soil-base you provided was inadequate. Poor people are bonsai people. There is nothing wrong with their seeds. Only society never gave them a base to grow on."

Achieving trillions out of billions

Bertrand Badré's picture


The release of the joint statement “From Billions to Trillions: Transforming Development Finance” at the World Bank-IMF Spring Meetings is one of the most satisfying moments during my two-year tenure as Managing Director and World Bank Group CFO.

My one regret is that the title should have been Billions for Trillions.

Why?

By the numbers: Tracking finance for low-carbon & climate-resilient development

Barbara Buchner's picture
CPI's Landscape of Climate finance Flows Chart


Barbara Buchner is senior director at the Climate Policy Initiative and lead author of the Global Landscape of Climate Finance reports.

In December 2015, countries will gather in Paris to finalize a new global agreement to tackle climate change. Decisions about how to unlock finance in support of developing countries’ low-carbon and climate-resilient development will be a central part of the talks, and understanding where the world stands in relation to these goals is a more urgent task than ever.

Climate Policy Initiative’s Global Landscape of Climate Finance 2014 offers a view of where and how climate finance is flowing, drawing together the most comprehensive information available about the scale, key actors, instruments, recipients, and uses of finance supporting climate change mitigation and adaptation outcomes.

Preparing for a price on carbon: Lessons from 3 companies

Xueman Wang's picture
 
Oil platform. Glenn Beltz/Flickr Creative Commons CC-BY-2.0


New carbon pricing systems are being developed in China, Chile and other countries to help reduce greenhouse gas emissions and encourage clean energy and sustainable development. This will mean new reporting requirements and regulations for an increasing number of national and multi-national companies.
 
To help corporate leaders prepare, we studied the experiences of three companies that are already operating within one or more carbon pricing systems and the steps they took to prepare for a world where greenhouse gas emissions have a price.
 
Our report released today by the Partnership for Market Readiness describes the impacts of a changing climate on business strategies, analyzes risks and opportunities as new climate policies are implemented, and distills lessons learned by Pacific Gas and Electric Company, Rio Tinto, and Royal Dutch Shell. The three companies represent a variety of energy-intense industries, including oil, gas, metals, mining and energy generation, transmission and distribution. Two operate in more than one jurisdiction with emissions trading.

Innovation in procurement: why and how

Enzo de Laurentiis's picture
Photo: © Arne Hoel/The World Bank

For governments to carry out their day-to-day functions, procurement -- or their ability to purchase goods and services -- is critical. It is both a service function and a strategic policy tool which can help achieve a broad range of social and economic welfare objectives. It cuts across all areas of public administration and builds on cooperation among multiple public and private stakeholders.

For procurement to better contribute to institutional effectiveness, then, it needs to innovate. Promoting innovation in procurement means processes that are transparent and efficient, and that facilitate equal access and open competition. Innovative solutions to public service needs are instrumental to delivering better services with long-term value for money.

Alstom exec: Carbon pricing & technology innovation are symbiotic

Amy Ericson's picture
_


Amy Ericson, U.S. country president for technology company Alstom, spoke at the World Bank Group about the interplay between carbon pricing and innovation that can lower carbon emissions for cleaner, more sustainable development. Alstom is involved in the Carbon Pricing Leadership Coalition.


Pages