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.
By Nicolette Bartlett, Prince of Wales’s Corporate Leaders Group and CISL
Developing effective carbon pricing mechanisms can and will play a key part in tackling climate change, facilitating the much needed investment cost-effectively and at scale. Specifically, “cap and trade” policies or emissions trading schemes (ETS) have been widely adopted in recent years because of their potential to foster greenhouse gas emissions reductions.
Over the past few years, carbon pricing has risen on the corporate agenda – from the Prince of Wales’s Corporate Leaders Group’s (CLG) Carbon Price Communiqué to the UN Climate Leadership Summit in September, where 73 countries and over 1,000 companies came together to publically lend their support for carbon pricing. Here at COP20 in Lima, many businesses and civil society organisations are asking what role carbon pricing will have in the Paris 2015 Climate Agreement.
One Brazilian business group that CLG has been partnering with is taking a novel approach. Empresas Pelo Clima (EPC) implemented an ETS Simulation using live corporate data to engage Brazilian companies in discussions around what a robust cap and trade market might entail and how it could be designed and implemented. The ETS Simulation is delivered in partnership between the Rio de Janeiro Green Stock Exchange (BVRio – Bolsa Verde do Rio de Janeiro) and EPC through the Center for Sustainability Studies of the Business Management School at the Getulio Vargas Foundation (FGV-EASP).
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 Province of Québec in Canada and the U.S. State of California held their first joint auction of greenhouse gas emissions allowances on Nov. 25. Québec Premier Philippe Couillard talked ahead of the auction about the value of a price on carbon in building a cleaner economy.
Over the next few months, governments worldwide will be preparing their national contributions to our collective need to combat climate change. These plans will form the foundation of a new international climate agreement to be agreed in Paris in one year’s time. Collective ambition matters now more than ever. We all have a responsibility to make the choices that will lower the risks created by decades of greenhouse gas emissions and usher in an era of job-rich, more-inclusive, cleaner economic development.
Scientists have provided us with a remarkable consensus. We believe that with this evidence, we have the strong foundation for action. That’s good news, because climate action has to scale up now.
This week and next at the UN climate negotiations in Lima (COP20), there is a sense that gridlock may be easing. The U.S. and China – the world's two largest emitters – set a strong pace last month when Presidents Barack Obama and Xi Jinping stood together and jointly announced their top-line commitments for cutting emissions. Their pledges, along with commitments from the European Union and donor support for the Green Climate Fund, auger well for the Lima talks. But this was always billed as the finance COP, and how we finance the transition to deep decarbonization and lasting resilience requires a coming together that has eluded us to date.
By Kerry Adler, President and CEO of SkyPower
The fundamental inequality that exists between emitters of carbon and the victims of its devastating byproduct requires global cooperation and intervention beyond our willingness to act thus far. Today, we have the necessary technology, ingenuity and global monetary tools to incentivize a shift to cleaner energy.
Placing a price on carbon enhances the competitive position of renewable energy technologies, such as utility-scale solar, relative to fossil energy, thus encouraging migration away from high-carbon fuels. It is an important step, and it can be supported with other initiatives to ensure accountability.
In the private sector, transparency regarding carbon emissions is essential. With the advent of the Internet and the plethora of information available today, it is not only possible, but imperative that emitters of carbon are held accountable in a public forum.
Philippe Desfossés is the CEO of ERAFP, the French Public Service Additional Pension Scheme. He spoke about carbon pricing from an investor's perspective.
“I support putting a price on carbon because it fixes a market failure. Without carbon pricing, the market has no way to address the costs associated carbon emissions. These costs end up being borne by everyone, including companies and societies.
Sitting on the train heading back from New York to Washington D.C., gazing out of the window at stressed watersheds, I had some time to reflect on a very special Climate Week. What does it all add up to? Where does it leave us as a global community needing speed and scale in our climate action?
Much is being written. Let me add a perspective. Here are three thoughts amid my swirl of memories, moments and impressions.
Climate osmosis – the street reaches the hallowed halls
It was difficult to stand in the canyon that is 6th Avenue, with a sea of people stretching in both directions – environmental activists, nurses, pensioners, business people, every possible faith community, moms, a sprinkling of celebrity and a dash of statesmen – and not be moved. On the Sunday before the Summit, more than half a million people took to the streets in People’s Climate Marches in New York and more than 160 countries across the globe. The marchers demanded climate action from their leaders, suggesting that the politics of climate action, once considered too hard to handle, might no longer be as difficult as leaders think.
The reverberations continued for 48 hours and became a point of reference in almost every speech at the UN Secretary-General’s Climate Leadership Summit. More than 120 heads of state and government came to hint and in some cases pledge action on climate change. New coalitions of governments, businesses, investors, multilateral development banks and civil society groups announced plans to mobilize over $200 billion for low-carbon, climate-resilient development. Forests and cities were big winners, landing pledges of around $450 million for forests and bringing together more than 2,000 cities in a new Compact of Mayors to help improve accounting of urban greenhouse gas emissions and the actions cities are taking to reduce them.
In a video shown at the UN Climate Leadership Summit on Sept. 23, 2014, German Chancellor Angela Merkel talks about her country's support for carbon pricing and how it can drive low-carbon growth.
Fred Krupp is the president of the Environmental Defense Fund, one of several civil society organizations supporting a price on carbon. He spoke ahead of the UN Secretary-General's Climate Leadership Summit about how a price on carbon could bring shared propserity and economic growth.