In preparing for a climate agreement in Paris, countries all over the world are planning their domestic strategies for cutting emissions. This often requires new policies to create incentives for low-carbon development, and for that, governments need accurate and comprehensive emissions data.
One important building block is a greenhouse gas reporting program, which a growing number of countries are working on. Mexico, for example, is gathering information from its newly established emissions reporting program to support its mitigation policies. The European Union’s and California’s reporting programs are essential to their emissions trading systems, and China’s reporting program will underpin its national trading system, planned for launch in late 2016.
At Carbon Expo today in Barcelona, the World Bank Group’s Partnership for Market Readiness with the World Resources Institute released the Guide for Designing Mandatory GHG Reporting Programs. Drawing on 13 existing and proposed greenhouse gas emissions reporting programs, the report looks at successful ways to build a strong data collection system and showcases best practices. It provides step-by-step guidance on developing and implementing these reporting programs.
Only a few years ago, the failure to properly quantify and communicate the risks of a widely traded commodity, mortgage-backed securities, caused major damage to the US and ultimately the global economy. According to the IMF, total losses will approach $4 trillion (pdf). A significant share of the losses were incurred by pension funds and insurance companies typically viewed as among the more risk-averse and cautious segments of the investment community.
A new report by the Carbon Tracker Initiative and the Grantham Research Institute on the Environment and Climate Change evaluates the failure to properly value the risks of climate policy to companies with major fossil fuel reserves and finds a similar potential for massive financial fall-out. They conclude that “Between 60-80% of coal, oil and gas reserves of publicly listed companies are ‘unburnable’ if the world is to have a chance of not exceeding global warming of 2°C.” (A short video explaining the research and mapping the amounts of investment at stake in different countries is available online).
Hopenhagen – that magical place of bright future days – is a few weeks behind us and the public interest in climate change is in slow decline – at least according to Google Trends . This is normal. Big meetings create lots of news and expectations and there is often disappointment and exhaustion in their wake. Couple that with the recent concerns about some of the results of specific scientific research, and it seems that the debate on climate change is in a bad place, doomed to irrelevance.
Well, it should not be. Regardless of overcrowded meetings and leaked emails in academic departments, the world’s climate is changing fast (NASA reports that 009 ties with a cluster of other years as the second-warmest year on record since 1880 and the decade 2000-2009 was the warmest 10-year period). Climate change will add pressures to our already difficult development challenges. We care about climate change because it can derail several development efforts undertaken in recent decades.
The channels linking climate change to development are numerous but most of them involve water (or the lack of it). Droughts, floods, storm surges and changes in rainfall patterns affect the livelihoods of poor people, their nutrition, their security, their future opportunities and probably those of their children. Poorly designed policies to reduce the threat of climate change can exacerbate the problem. One such policy is carbon-intensive economic growth; as mentioned in the first chapter of the World Development Report, “countries cannot grow out of harm’s way fast enough to match the changing climate.” Economic growth is necessary for development, but it needs to become less greenhouse-gas intensive.
The World Bank's Sustainable Development Network held its annual forum over the past two weeks in Washington DC with World Development Report 2010’s theme of 'Act now, Act together, Act differently'. Hundreds of World Bank staff convened to discuss the way forward on climate action with colleagues, clients and climate experts. With the Copenhagen Accord leaving many important issues of international climate policy unresolved, development experts focused on the positive actions that can be taken to foster ‘climate-smart’ development. In a high-level plenary discussion, international experts discussed how green investments stimulate economic recovery and climate-smart growth, as in Korea and China, and the role of rich and poor countries in sharing the global atmospheric commons going forward. We asked Sunita Narain, one of the panelists—and Director, Centre for Science and Environment, New Delhi—about what actions she thinks need to be taken now at the global level, and about the role of international development institutions in putting climate-smart development into practice.