Carbon pricing was the center of discussion as Carbon Expo got underway in Barcelona on May 26. World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte was asked by RTCC about the changing views toward carbon pricing as a policy tool in the fight against climate change and how business leaders responded to carbon pricing during Climate Week Paris the previous week.
By Magdalena Andersson, Minister for Finance, Sweden
and Isabella Lövin, Minister for International Development Cooperation, Sweden
Sweden is proud to join forces with Sustainable Energy for All (SE4All), convening in New York this week. Energy is one of the most decisive issues of our age. Without secure access to energy, we won’t achieve real and lasting poverty reduction. Without the expansion of clean energy, we won’t be able to stop climate change.
With business as usual and no significant carbon emission cuts, we have only 15 years left before we have emitted enough CO2 to make this planet more than 2 degrees warmer. Then we will see a dramatic increase in droughts, floods, storms and species extinction – and we will have changed the conditions for every generation to come. And we know that it is the poorest who will be hit the hardest by the effects of climate change.
This is not a political statement but a scientific one. Fifteen years left.
So we must start changing our energy systems, going from fossil to renewable, now.
Gérard Mestrallet is chairman and CEO of ENGIE, formerly GDF Suez. He spoke at the World Bank Group about his company's support for carbon pricing and the involvement of Europe's energy companies in reinvigorating the EU's emissions trading system.
British Columbia Premier Christy Clark spoke at the World Bank Group about the effectiveness of her Canadian province's carbon tax and the role of subnational governments in setting policies that can address climate change.
"We’ve had a pure carbon tax for seven years in BC. It covers 72 percent of emissions in the province, so it is very broad. It is now at about 30 dollars a tonne. So we have seen it operating for a long time.
I don't know if we are unique in the world, but we are proud of the fact that we have taken 100 percent of the revenues that we have collected through the carbon tax, which is over 6 billion dollars, and we have invested that plus some in tax cuts.
The Canadian Province of Ontario announced last month that it would join California and Quebec in linking their cap-and-trade programs to curb greenhouse gas emissions. The move was met with approval by carbon market watchers, as local governments showed how they could avoid the lengthy political battles sometimes faced by national governments preparing submissions to the United Nations Framework Convention on Climate Change.
At a time when governments are looking for ambition, could this sort of local government action be the start of something much bigger?
Last week, I attended the Navigating the American Carbon World (NACW) event in Los Angeles to explore whether the momentum we are seeing to price carbon is evident on the ground. I found a lot of local government leadership on climate change.
If you think that climate change is a distant and future threat, you are in for a rude awakening. I just returned from Zambia, where I witnessed how communities in the Barotse basin located in the western province are coping with varying weather conditions. On the one hand, high temperatures and drought led to the loss of their maize crops while delayed and fluctuating rainfall patterns challenged rice planting in the wetter plains, devastating the livelihoods of communities in the region.
Such changing weather patterns and the impacts of rising temperatures, already evident at a global mean temperature increase of 0.8°C above pre-industrial levels, are not likely to relent anytime soon. In fact, according to the recent World Bank report Turn Down the Heat – Confronting a New Climate Normal, things are going to get worst. The report suggests that, even with very ambitious mitigation action, we may be locked into warming close to 1.5°C above pre-industrial levels by mid-century. Unfortunately, while everyone will be affected by a changing climate, it is the poor and the most vulnerable and those least able to adapt who are hardest hit. Clearly, we cannot ignore the increasing climate risks and continue on a business-as-usual approach to development.
With this in mind, the International Development Association, the World Bank’s fund for the poorest, has recognized climate change as one of the major issues to be addressed in order to maximize and safeguard development impact. In response, the World Bank has developed and launched a set of online Climate and Disaster Risk Screening Tools. These tools provide a systematic and consistent way of considering short and long-term climate and disaster risks at an early-stage of project and national/sector planning processes. Screening is a first but essential step to make sure that these risks are assessed and managed in development planning.
- Climate Change
Fossil fuel subsidies are bad economic policy, bad social policy and bad for the environment. Yet, many countries have some type of fossil fuel subsidy. In 2013, those subsidies added up to nearly $550 billion.
Why are so many countries spending so much on what is simply bad policy? And how can they reform these subsidies? This is what a panel of government ministers who have implemented reforms debated during the IMF/World Bank Group Spring Meetings in an event organized by ESMAP and co-hosted by the World Bank Group, the United States, and Friends of Fossil Fuel Subsidy Reform.
The panelists – representing countries as different as Angola, Egypt, Honduras, and Ukraine – described the countries’ varied experiences, but out of these varied experiences, four common messages emerged:
At this year's climate ministerial of the World Bank Group/IMF Spring Meetings, 42 finance and development ministers discussed phasing out fossil fuel subsidies, putting a price on carbon and mobilizing the trillions of dollars in finance needed for a smooth, orderly transition to a low-carbon economy. World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte describes the conversations in the room and the key takeaways.
Feike Sijbesma is CEO of Royal DSM, a health, nutrition, and materials company that has evolved from its original purpose (it was established by the Dutch government in 1902 to mine coal) into a science-based company that develops sustainable materials. It takes its name from the original Nederlandse Staatsmijnen, or Dutch State Mines.
“I think, first of all, we need to agree that climate change is real.