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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.

Time to engage the private sector on climate finance

Alan Miller's picture

I was at the Climate Investment Funds meetings in Cape Town last week with several other representatives from development banks, NGOs and governments to discuss results, impacts and the future of this financial mechanism. One of many themes cutting across meetings in Cape Town was the importance and challenge of engaging the private sector in climate finance. The private sector is by far the largest source of investment, the dominant provider of technology, and often essential for implementation of mitigation and adaptation measures. However, based on the discussions this week, it’s apparent there is much to learn about what is actually expected or sought from the business community. Here are some of my observations from the meeting:

  1. In my experience references to “the” private sector are common but largely meaningless and often confusing in failing to distinguish between entities as different as major multinational manufacturers, international financiers, and locally- based entrepreneurs. Some speakers even used the term more broadly to encompass markets, including policies directed at consumers.
  2. There are some unavoidable tensions between emphasizing country plans and priorities and the promotion of markets for climate-friendly products and services. This is particularly true in smaller and poorer countries. Control of donor resources is fundamental for many governments but sometimes difficult to reconcile with the flexibility, consistency, and speed required by investors. Public-private partnerships (the focus of a Cape Town session) is one solution but not always appropriate or workable.   Finding models which can blend the two, as in the collaborative IFC/World Bank Lighting Africa project, will be increasingly important. The World Bank was able to build a relationship with energy ministries while IFC focused on helping businesses. Together, they have been able to address a wide range of issues from regulatory systems to that of supply chain development.