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.
This week in London, the Prince of Wales brought together representatives from government, the private sector, and civil society around the goal of protecting and restoring tropical forests. The gathering took stock of forest commitments made at the UN Secretary-General's Climate Summit last September and identified priority actions for 2015 – a critical year for advancing progress on the inseparable issues of development, poverty, and climate change.
With all eyes on a new climate agreement in Paris later this year, healthy forests and landscapes are seen as critical to cutting greenhouse gas emissions to net zero before 2100. The key underlying question is how to best achieve a true transformation in how we manage our forest landscapes, which are still degrading at a rapid rate.
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).
We’re doing a lot of talking and listening here at COP 20 in Lima about climate finance – how hundreds of billions of dollars were invested globally last year to clean up the air, get efficient energy to more people, make agriculture more productive, and build resilience to extreme weather events.
We all know and acknowledge much more still needs to be done – the International Energy Agency and others believe we need at least $1 trillion dollars of new investment each year to address climate change.
There’s no way that public money alone can meet that goal. We need to find ways to catalyze the limited public funds we have to unlock private investment. That, of course, means investors need to have the confidence that the right policies are in place to make long-term investments for the climate.
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.
Mats Andersson, CEO of Swedish pension fund AP4, spoke at the World Bank Group about the importance of transparency for investors and the impact of a carbon price in shifting investment to cleaner, more sustainable development.
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.