Syndicate content

Rachel Kyte's blog

Shaping the Next Generation of Carbon Markets

Rachel Kyte's picture

 Smoke coming out of two smokestacks at a factory in Estonia. - Photo: World Bank/Flickr

Right now, the carbon markets of the future are under construction in all corners of the world.

China is determined to pursue low-carbon development and is embracing the market as the most efficient way to do so. Wang Shu, the deputy director of China's National Development and Reform Commission, told us this week that he sees the "magic of the market" as the most efficient way to drive China's green growth.

Five Chinese cities and two provinces are piloting emissions trading systems with the goal of building a national carbon market. Chile is exploring an emissions trading system and focusing on energy efficiency and renewable energy. Mexico is developing market-based mechanisms in energy efficiency that could cut its emissions by as much as 30 percent by 2020. Costa Rica is aiming for a carbon-neutral economy by 2021.

Each of the countries pioneering market-based mechanisms to reduce their domestic carbon emissions are leaders. Bring them together in one room, and you begin to see progress and the enormous potential for a powerful networking domestic system that could begin to produce a predictable carbon price -- a sina que non for the speed and scale of climate action we need.

That's happening this week at the World Bank.

{C}

Talking to the UN Security Council about Climate Change

Rachel Kyte's picture

Flags at the United Nations. UN Photos

Last week, I had the honor of speaking to the UN Security Council about an increasingly dangerous threat facing cities and countries around the world, a threat that, more and more, is influencing everything that they and we do: climate change.

World Bank President Jim Kim was in Russia talking with G20 finance ministers about the same thing – the need to combat climate change. Every day, we’re hearing growing concerns from leaders around the world about climate change and its impact.

If we needed any reminder of the immediacy and the urgency of the situation, Australia Foreign Minister Bob Carr and our good friend President Tong of Kiribati spoke by video of the security implication of climate effects on the Pacific region. Perhaps most moving of all, Minister Tony deBrum from the Marshall Islands recounted how, 35 years ago, he had come to New York as part of a Marshall Islands delegation requesting the Security Council’s support for their independence. Now, when not independence but survival is at stake, he is told that this is not the Security Council’s function. He pointed to their ambassador to the UN and noted that her island, part of the Marshall Islands, no longer exists. The room was silent.

Doha: keeping hope alive - just

Rachel Kyte's picture


COP President Abdullah bin Hamad Al-Attiyah gavels through the decision text. Photo courtesy IISD

The UN climate conference in Doha this past week kept the fight to combat global warming alive – 194 countries agreed to extend the Kyoto Protocol and to put in place a new agreement by 2015. The extension avoids a major setback in climate negotiations, but it does not fully reflect the urgency of the problems facing the warming planet.

To understand the true scale of those problems, read the new report Turn Down the Heat: Why a 4°C Warmer World Must Be Avoided. Its review of the latest climate science provides a powerful snapshot of what the future could be and warns that the world is on path to a 4°C (7.2°F) warmer world by century’s end if we don’t take action.

The report was referenced repeatedly during COP 18 and is one of several reports helping to put science at the center of policy making.

As is often the case in large international conferences these days, the greatest signs of momentum in Qatar were not inside the negotiating rooms but in the meeting halls where the informal process was underway. The World Bank played a key role in several agreements that will form a part of our ongoing commitment to step up to the climate challenge.

Working Coalitions

Increasingly like-minded coalitions are forming, across dividing lines of developed and developing countries, public, private sectors and civil society, in order to get on with the business of emissions reductions. One highlight of the conference was the meeting of the Climate and Clean Air Coalition, a remarkable group of countries united to reduce SLCPs, short-lived climate pollutants - methane, HFCs, black carbon.

Climate Lessons from a Hotter Arab World

Rachel Kyte's picture

Photo credit: Curt Carnemark/World Bank

This week in Doha, the marble corridors of the Qatar National Convention Center resonate with voices from around the world. Over half way through the conference, as ministers arrive and the political stakes pick up, a sense of greater urgency in the formal negotiations is almost palpable. But in the corridors, negotiations are already leading to deals and dreams and action on the ground.

UN Secretary-General Ban Ki-moon opened the discussions by saying we need optimism, because without optimism there are no results. He reminded us all that Superstorm Sandy was a tragic awakening. He reiterated the call for a second commitment period of the Kyoto Protocol, a global agreement and 100 billion in climate finance by 2020.

Meanwhile our focus was firmly on the region ...

When we look at the Middle East and North Africa, the challenges of climate change are evident. Farmers have been planting in drylands and dealing with climate variability and water shortages since the beginning of agriculture. They understand adaptation here, but no one is prepared for what we could face if the world doesn’t act to stop human-induced climate change now.

We published a report last week examining the science of climate change, and the findings should be alarming to anyone. If governments don’t take action to reduce greenhouse gas emissions, globally we’re headed for a 4 degree Celsius increase. The rise will be even higher across the Arab world, and the effects on water, agriculture, and livelihoods will be far more pronounced than what people here already face. Climate models show that over the last 30 years, temperatures in the Middle East and North Africa have increased 50 percent faster than the global average.

Aggressive mitigation is needed to slow greenhouse gas emissions, but here and in much of the world, adaptation is now critical to survive the changes that are already underway.

In a new report released today, Adaptation to a Changing Climate in the Arab Countries, we draw on the knowledge and expertise of the Arab world in adapting to changing climates. The authors, the majority of whom are from the region, consulted with civil society, academia, and governments, and worked in partnership with the League of Arab States.

A Wake Up Call

Rachel Kyte's picture

Photo courtesy IISD

This week, negotiators from nearly 200 countries have gathered at the UN Climate Conference in Doha to try to hammer out an agreement on a second commitment period of the Kyoto Protocol.

Once again, the gathering of the parties to the Framework Convention on Climate Change highlights the lack of action on climate change, and the subsequent threat to the prosperity of millions. Climate change may roll back decades of development.

Several reports in the last month have reached the same conclusion. First, the science is unequivocal: humans are the cause of global warming, and major changes can be observed today. Second, time for action is running out – if we don’t act, we could experience a 4°C warmer world this century, with catastrophic consequences.

The World Bank commissioned the Potsdam Institute for Climate Impact Research and Climate Analytics to better understand the potential impact of a 4°C warmer world on developing countries. Turn Down the Heat provides a stark picture of the state of the planet in a 4°C warmer world and the disruptive impacts on agriculture, water resources, ecosystems and human health. It also gives a snapshot of changes already observed. 

Global mean temperatures are about 0.8°C above pre-industrial levels. Current greenhouse gas emission pledges place the world on a trajectory for warming of well over 3°C, even if the pledges are fully met. 

It’s a make-or-break decade for action on climate change

Rachel Kyte's picture


Photo: Climate Group 

As world leaders descended on Manhattan this week for the UN General Assembly, the blocks around 44th street got ever more gridlocked and noise decibels from the omnipresent motorcades tested the patience of locals and visitors alike.

Away from the main hubbub, Monday I joined Tony Blair, Prince Albert of Monaco, Twitter co-founder Evan Williams and a number of Chairman and CEOs from top companies to talk about climate change and efforts to get the world onto a cleaner growth path.

Tuesday, hosted by Bloomberg L.P., I was in conversation with Commissioner Connie Hedegaard and Cristiana Figueres. The discussion covered the role of the UNFCCC past, present and future in what has happened and needs to happen to arrest climate change. From the need to change the narrative, accounting systems, risk appetites and ambition, to whether the convention is an umbrella for action, or should encourage actions outside its framework, to where will the funding come from for adaptation and resilience as climate change bears its teeth, it was a great conversation showing sensible hope.

Climate Week, an annual event here in New York City organized by The Climate Group is calling for an American “Clean Revolution.” At their opening session they issued a report saying such a revolution could grow the US economy by $3 trillion. 

While climate change seems to be a “non-issue” in the US election, jobs and competitiveness are not. Competitiveness in the global green economy is not an issue for the US alone. 

Faced with conclusive scientific evidence of the impacts of climate change, especially on the world's poorest, and a new global agreement some years off, we're in a ‘make-or-break’ decade for action on global climate change.

Celebrating 25 Years of the Montreal Protocol - and Looking Ahead

Rachel Kyte's picture

The world’s leaders set a high bar when they adopted the Montreal Protocol, which has helped protect the Earth’s protective ozone layer for the last 25 years. Even with its ambitious goals, the treaty won universally ratification – 197 parties have agreed to legally binding reduction targets to phase out ozone-depleting gases, and they have stuck to them.

The result: we, as a global community, have almost completely phased out the use of 97 substances that were depleting the ozone layer.

It’s a success worth celebrating, but we can’t rest on our laurels. We phased out CFCs, once used for cooling most refrigerators on the planet, but some of their replacement gases have become a climate change problem we still have to contend with.

The CFCs story showed that the world can move at speed and scale to reduce environmental threats. Scientists realized that CFCs were depleting the ozone layer in 1974. The ozone hole over Antarctica became common knowledge in the 1980s and helped drive global action which led to the Montreal Protocol being adopted in 1987.

Making carbon finance work for the poor

Rachel Kyte's picture

During this week in Durban, we announced two new financial initiatives designed to help the least-developed countries access financing for low-carbon investments and enable them to tap into carbon markets after 2012 - the Carbon Initiative for Development (Ci-Dev) and the third tranche of the BioCarbon Fund (BioCF T3).

The funds, focused on agriculture and access to energy, are designed to strengthen links to private sources of capital via carbon markets for some of the world's poorest communities.

The new instruments will help client countries to buy carbon credits from a range of projects including household biogas systems in Nepal, cook stoves in Africa, reforestation in the Democratic Republic of Congo, soil carbon in Kenya, and municipal solid waste in Uganda.

Ci-Dev, aiming to raise USD 120 million, is a partnership of donor and recipient countries, where public and private sector are pledging their support to capacity building and carbon market development in the poorest countries of the world.

The second initiative, the BioCF T3, will focus on reforestation and agriculture projects.

The agriculture projects are another example of the climate-smart agriculture we have been talking about all week – and deliver a triple win of increased food security and resilience through reduced soil erosion and increased land fertility as well as the access to new carbon markets.

Stuck Between Doha and Durban?

Rachel Kyte's picture

One of those small but important agreements that would mean that Durban had moved the ball forward in the search of an international, comprehensive approach to climate change is a forum to discuss trade issues.

As countries seek lower emissions development, and plan out pathways to greener growth, they are considering introducing different forms of “green subsidies”, border tax arrangements, embedded carbon footprint standards which many in the developing world feel will be exclusionary.

A new generation of new tariff and non-tariff barriers is feared.

This is complicated by the question of where to resolve this - in the WTO or the UNFCCC. So, in order to move forward, start looking at the issues in a practical way, learn lessons from different approaches: the idea of a forum.

The success of such a forum could be an important input to the growing body of work around how to make greener growth for all, or as Ban Ki Moon said today at a meeting of heads of UN agencies and minister of environment, “sustainable green growth.”

We are keeping up the pressure for inclusion of language that would allow a work program on agriculture to start up. While some delegations object to agriculture’s inclusion for fear it dilutes the agenda, others fear the carbon content of agri-products and green standards, on top of existing phyto-sanitary standards and other aspects of agriculture trade.

While today only 15% of the global food supply is subject to international trade, that is expected to double as the world population rises from 7 to 9 billion.

Follow Rachel Kyte's tweets (@RKyte365) at her liveblog from the COP17 conference in Durban 

Working together on adaptation-based mitigation

Rachel Kyte's picture

Over the weekend the business community held its meetings coinciding with CoP17.

In Copenhagen, the business community, especially in Europe, had mobilized for a deal and arrived in force. Even the financial and investor communities turned up. But then the negotiation process came unraveled and some blamed the business community for not mobilizing enough.

In Cancun, having licked its wounds and learned lessons, the business community adopted the classic entrepreneurial behavior of “don’t ask permission, just apologize afterwards” i.e. don’t wait for a deal- if it makes business sense go ahead.

There, the focus was on action on the ground, strategies, and innovations for firms across the world.

In Durban, things have moved on yet again – here, there is a greater focus on adaptation and, while the stories of success are powerful, there was a call for action again - for the public sector to set the conditions necessary to move ahead at speed and scale.

Pages