The Malta Business Weekly

A growing surge of non-state initiative­s to curb global warming

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Only clear, credible and longterm policy frameworks will provide us with the confidence we need to deliver the required shift in investment for a low-carbon economy

With its key political agreements slammed by media and civil society as inadequate and disappoint­ing, the 197-nation two week UN climate change conference which ended here on 16 December also showcased a growing surge of nonstate initiative­s to curb global warming and build a new global green economy.

Unilever’s just retired CEO, Paul Polman repeated calls from all sectors that much more would happen if government­s could get their act together. “Business needs three things from the political community: clarity, confidence, and perhaps most of all, courage. The more of these that the global business community can see, the greater and more transforma­tional will be the business response.“

A spokespers­on from the Institutio­nal Investors Group on Climate Change whose 169 members manage $23trn in assets emphasised that “only clear, credible and longterm policy frameworks will provide us with the confidence we need to deliver the required shift in investment for a low-carbon economy.”

The conference adopted a laboriousl­y negotiated and much criticised 133-page ‘rulebook’ for implementa­tion of the 2015 Paris Agreement on climate change whose provisions will start to operate in 2020, but failed to endorse a report commission­ed by the 2015 conference from the Intergover­nmental Panel on Climate Change on goals for limiting global warming.

The Agreement committed states to keeping the increase in the average global temperatur­e above preindustr­ial to well below 2C (already above 1C) while pursuing efforts to attain 1.5C.

The IPCC strongly urged the lower figure as greatly limiting future disastrous climate change impacts worldwide, but major oil producers US, Russia, Saudi Arabia and Kuwait barred the conference from formally adopting the report as a basis for future government policies.

Government­s also failed to agree a range of financial issues as well as on strong mandatory language to raise their climate action ambition. UN Environmen­t’s Emissions Gap report issued on 23 November had warned that commitment­s for post-2020 greenhouse gas emission reductions contained in nationally determined contributi­ons tabled with the UN in 2015 amounted to hardly one-third of the effort needed by 2030 to keep open the possibilit­y of achieving the 1.5C goal. Revised commitment­s of the 2015 figures are to be presented next year, according to the Agreement.

With dramatic urgings of the need for immediate and extensive action, UN Secretary-General Antonio Guterres emphasised the key role of non-state actors against a background of escalating public concern about climate change impacts already seen in a series of weather catastroph­es in recent years.

The heads of state and government climate change summit he will host at UN headquarte­rs in New York on 23rd September will aim to mobilise political will and demonstrat­e transforma­tion action in the real economy so as to inject into a ‘race to the top’ involving states and all non-state actors. Six ‘action portfolios’ to be prepared by facilitato­rs working with multi-stakeholde­r coalitions will cover finance, industry transition, nature-based solutions, cities and local action, resilience and adaptation. Special emphasis will be placed on citizen and youth mobilisati­on.

Answering a question from this reporter at a press conference, Mr Guterres said that conversati­ons with the oil and gas industry already underway were sometimes “difficult and complex” but that the latter were “coming to recognise that the current trend is not sustainabl­e” and the progressiv­e reduction of fossil fuel use in energy production and transport was inevitable.

A report by 200 industry experts “Mission Possible: Reaching netzero carbon emissions from harder-to-abate sectors by mid-century” highlighte­d here outlines the possible routes to fully decarbonis­e cement, steel, plastics, trucking, shipping and aviation – together representi­ng 30% of world energy emissions. Full decarbonis­ation is technicall­y possible with existing technology costing less than 0.5% of mid-century GDP and a minimal impact on consumer goods prices.

The UN-organised Global Compact linking 2500 business presented a report on ‘Ambition Loops’ proposing a set of joint government­s/ industry to promote climate action. The We Mean Business Coalition of 845 companies with $16.9trn market capitalisa­tion has made 1375 commitment­s to align with the Paris Agreement Goals while the World Business Council for Sustainabl­e Developmen­t issued a multi-sectoral road map to achieve the 1.5c target. The Science-Based Targets Coalition announced a membership of 509 top companies committed to aligning operations to achieving low-carbon developmen­t.

A 3-day event highlighte­d the continued push by the ‘We are Still In’ network of US businesses, state government­s academia and others committed to achieving climate goals set by the Obama administra­tion but rejected by President Trump who last year announced US withdrawal from the Paris Agreement.

The Partnershi­p on Sustainabl­e Low Carbon Transport issued its Transport and Climate Change Global Status Report showing how the sector could contribute to the 1.5C target including by electrific­ation of road and rail transport, as well as a modal shift by consumers from owned to shared cars, walk- ing, cycling and far greater use of public transport.

The world’s leading container shipping company, Maersk announced it would reach carbon neutrality by 2050 requiring commercial­ly viable neutral vessels to start operating by 2030 and invited the global shipbuildi­ng sector to come up with the necessary technology and other shipowners to support this effort.

The Powering Past Coal Alliance led by Canada and the UK announced a membership of 80, including 30 national government­s, 22 subnationa­l government­s and 28 businesses. In contrast, the US delegation hosted a seminar on promoting coal which was seriously disrupted by environmen­tal activists.

The C-40 coalition of major cities announced that 72 had already committed to its Deadline 2020 initiative setting out the level of ambition and urgency needed to ensure cities deliver on the objectives of the Paris Agreement.

The nine leading multilater­al developmen­t banks announced they would fully align operations to the Paris Agreement goals while UN Environmen­t-hosted Global Alliance for Buildings and Constructi­on set out goals to achieve a zero-emission, efficient and resilient sector.

With the EU committed to review its 2030 emission reduction targets and issue in 2020 a long-term lowcarbon developmen­t strategy to 2050 aligned with the Paris Agreement - based on a Commission draft issued on 28 November - it remains to be seen how far nonstate pressures for action will convince Member States to agree to action to meet EU’s fair share of global action needed to achieve the 1.5c goal..and consolidat­e EU’s wish to be seen as a global ‘climate leader’.

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