At the Aspen Ideas Festival, World Bank Vice President and Special Envoy for Climate Change Rachel Kyte talks about climate resilience and how it can create opportunities for all people while protecting all people. Women and children make up a large number of the extreme poor, who are among those most at risk from the impacts of climate change.
Rachel Kyte's blog
This weekend, the leaders of the G7 committed to a series of actions that mark their first serious recognition of the economic transformation that is ahead of us.
Collectively, they recognized the need to decarbonize the global economy, enshrining in economic cooperation what the scientists in the IPCC told us last year in their Fifth Assessment Report. They called for ambition at the Paris climate talks this year – not new, but they recognized that they, individually and collectively, need to be in the upper part of the ambition bracket and that that means at least a “transformation of the energy sector by 2050.”
They talked about the mobilization of capital for this transformation, as well as ending the increasingly profligate use of harmful fossil fuel subsidies. Recognizing the need for an orderly transition to low-carbon growth as quickly and as smoothly as possible, they took on some degree of leadership around the pledge to provide $100 billion in climate finance for developing countries from public and private sources before 2020. More on that in a moment.
Carbon pricing was the center of discussion as Carbon Expo got underway in Barcelona on May 26. World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte was asked by RTCC about the changing views toward carbon pricing as a policy tool in the fight against climate change and how business leaders responded to carbon pricing during Climate Week Paris the previous week.
At this year's climate ministerial of the World Bank Group/IMF Spring Meetings, 42 finance and development ministers discussed phasing out fossil fuel subsidies, putting a price on carbon and mobilizing the trillions of dollars in finance needed for a smooth, orderly transition to a low-carbon economy. World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte describes the conversations in the room and the key takeaways.
Also available in: Português
World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte talks about Brazil's shift toward green, inclusive growth and how innovative practices developed there have gone global. The next challenge: developing business models to invest in the restoration of degraded land.
Five months after the UN Climate Leadership Summit, with its unprecedented call to action for putting a price on carbon, low oil prices have provoked governments to look again at whether they have prices right and to consider how to exploit a golden opportunity to reset signals within their economies for lower-carbon growth.
Business leaders in closed-door and public sessions in Davos last month talked of the inevitability of effective prices on carbon and the need for an orderly transition to lower-carbon growth. There was a sense that business, not normally reticent when pointing out how policy can negatively affect operations, needs to use its voice to urge smart, early policy action on carbon pricing. The bottom line was that this price signal will be essential, if insufficient on its own, to steer economies closer to a pathway that can keep warming below 2 degrees Celsius.
The voices were CEOs, from all sectors of the economy and all regions of the world. They recognize the risks climate change poses to their supply chains and businesses.
Last week, we heard those arguments again as organizations that have come together since the summit into a Carbon Pricing Leadership Coalition (CPLC) met to assess progress and plan for 2015.
In the corridors and sessions at the UN climate talks in Lima over the past two weeks, there has been extraordinary power and energy. We’ve seen material action as the financial sector starts to transform how it thinks about long-term risk. Coalitions are working together on tax reform, regulatory reform, and putting a price on carbon, and country after county is saying that they have been able to clean up their regulatory framework and put themselves in a position to grow.
The Paris negotiations where the world will be writing a new international climate agreement are just a year away, and here in Lima, delegates from around the world are discussing their national commitments and contributions that will largely determine the level of ambition in that 2015 deal.
As we trace the path to a resilient and decarbonized economy, we must keep in mind that the Paris agreement will set a framework for the period post-2020. What happens until then?
The science tells us that, even with very ambitious mitigation action, we have already locked-in warming close to 1.5°C above pre-industrial levels. Climate change impacts such as heat-waves, droughts, storms, and other weather extremes may be unavoidable.
The high-level segment of the UN climate talks is starting here in Lima. It's a different mood today than in previous climate talks and a different conversation, with both a sense of urgency and clarity of objective. There has been a lot of discussion around carbon pricing, in particular, with representatives from countries, cities, states and industry saying the question now is how quickly we can move.
The latest report from the Intergovernmental Panel on Climate Change (IPCC) tells us that to rein in climate change and keep global warming under 2°C, we will have to start reducing emissions now and get to near net zero emissions within this century.
That won’t happen without healthy forests and soil storing carbon, and it won’t happen without climate-smart land-use practices that can keep carbon in the ground.
Together, agriculture, forestry and other land use changes account for about a quarter of anthropogenic greenhouse gas emissions. The sector can be a powerful source of emissions, but it is also a powerful carbon sink that can absorb carbon dioxide, providing a pathway to negative emissions. The IPCC authors estimate that with both supply-side and demand-side mitigation efforts – including reducing deforestation, protecting natural forests, restoring and planting forests, improving rice-growing techniques and other climate-smart agriculture methods, changing diets, and reducing the immense amount of global food waste – we can effectively reduce a large percentage of emissions from the sector and increase carbon storage to move the needle toward net zero.