This weekend, the leaders of the G7 committed to a series of actions that mark their first serious recognition of the economic transformation that is ahead of us.
Collectively, they recognized the need to decarbonize the global economy, enshrining in economic cooperation what the scientists in the IPCC told us last year in their Fifth Assessment Report. They called for ambition at the Paris climate talks this year – not new, but they recognized that they, individually and collectively, need to be in the upper part of the ambition bracket and that that means at least a “transformation of the energy sector by 2050.”
They talked about the mobilization of capital for this transformation, as well as ending the increasingly profligate use of harmful fossil fuel subsidies. Recognizing the need for an orderly transition to low-carbon growth as quickly and as smoothly as possible, they took on some degree of leadership around the pledge to provide $100 billion in climate finance for developing countries from public and private sources before 2020. More on that in a moment.
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.
In January, World Bank Group President Jim Yong Kim urged the audience at the World Economic Forum in Davos to look closely at a young, promising form of finance for climate-smart development: green bonds. The green bond market had surpassed US$10 billion in new bonds during 2013. President Kim called for doubling that number by the UN Secretary-General's Climate Summit in September.
Just a few days ago—well ahead of the September summit—the market blew past the US$20 billion mark when the German development bank KfW issued a 1.5 billion Euro green bond to support its renewable energy program.
In the climate negotiations under the United Nations framework, we are used to seeing geographical blocs and other blocs at loggerheads. The tension draws attention, but it isn’t the only story of blocs at the climate conference.
In Warsaw Thursday, members of the Climate and Clean Air Coalition – 75 countries and international organizations working together – met and talked about their progress so far and work for the future to slow climate change.
What do these countries – among them, Nigeria, Sweden, the United States, Ghana, Mexico, the United Kingdom, Chile, Morocco, and Canada – have in common?
Answer: The firm belief that we can work together and substantially reduce black carbon, methane, and other short-lived climate pollutants.
Today, three countries – Norway, the United Kingdom and the United States – pledged $280 million to the World Bank’s BioCarbon Fund, kicking off a groundbreaking initiative for sustainable forest landscapes.
Their significant commitment to land and forest preservation is important for two reasons.
The new Initiative for Sustainable Forest Landscapes will manage landscapes in a holistic fashion by working across sectors, rather than in “silos.” It also brings in the private sector already in the design phase, recognizing that many private firms are committed to “greening” and securing their supply chains from the impact of climate change.