A stumbling block at COP 23 – Finance

huddle-Fiji-in-BonnThe cost of mitigating climate change is estimated at 200-350 billion Euros (236-413 Billion USD) per year by 2030. It is a manageable sum in terms of a global burden, only 1% of global GDP. In terms of who pays and how much to pay, however, it becomes a disputed figure. For example, developed countries agreed in 2010 to “mobilize” 100 billion USD annually by the year 2020 in paragraph 98 of the COP16 decision 1/CP.16. Unresolved issues regarding this commitment remain, even in 2017.

Philosophically, this divide has on one side the developed countries as having the ability and the responsibility to pay. Developed countries use more energy than under developed countries. On the other side, the underdeveloped countries need financing and the know-how to ensure that future development in their countries is environmentally friendly and sustainable.

At COP23, this issue came to the forefront where it stopped the APA closing plenary dead in its tracks on Wednesday afternoon, the day the APA was scheduled to close. Negotiations lasted through the night. The underdeveloped countries, led by the G77, wanted developed countries to make concrete commitments through the biennial communication requirements as required by Article 9.5 of the Paris Agreement. The G77 also referred to Paris Agreement Articles 13 (transparency) and 15 (compliance) to make this requirement enforceable.greendollars

In response the developed countries argued that Article 9.5 is a procedural matter and that the G77 countries want to discuss the dollar commitments. They argued that this is beyond the scope of the Paris Agreement.

The result was to urge both sides to act on their commitments and to refer this matter to a High Ministerial Dialogue for further discussion.  In other words, onwards to 2018.

 


COP21 Begins in 24 Hours: Will a Paris Agreement [Decrease] [Solve] [Do Nothing On] Climate Change?

imagesIf all politics are local, but greenhouse gases find their way into the atmosphere’s international space, how can the global community act collectively on climate change? In 1992, the solution was to adopt an international treaty. The United Nations Framework Convention on Climate Change (UNFCCC) declared climate change a “common concern of mankind,” and committed 166 countries to tackling it. Most UNFCCC parties were developing countries, who had contributed relatively few emissions given their pre-industrial poverty but were nonetheless already experiencing the irreversible, negative effects of climate change. Under the convention’s principle of “common but differentiated responsibilities and respective capacities” (CBDRRC), developed countries and top greenhouse gas emitters like the European Union and the United States agreed to take the lead.

Yet, progress has been slow. In 2007, this leadership took the form of the UNFCCC’s Kyoto Protocol, which placed clear greenhouse gas emission limits on developed countries while imposing none on developing countries. When the United States refused to ratify, its emissions, along with those of rapidly industrializing developing countries like China, India, and Brazil, escaped international regulation. Consequently, when negotiations for continuing the protocol beyond its first 2008-2012 period faltered at COP15 in Copenhagen, a new approach to international limits on greenhouse gas emissions began to CO2take shape. It gained momentum at the two subsequent conferences of parties (COPs) held in Cancun and Durban. Now, almost six years on, there is emerging agreement that all parties—developed and developing countries—should make individual, international climate change mitigation pledges determined by each party’s national government.

At COP21 in December, the current 196 UNFCCC parties will decide if they can sign on to this new paradigm of international climate change regulation. The Durban Mandate requires the parties to “develop a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties” by the end of 2015. In Paris from Nov. 30 to Dec. 11, 2015, the parties will have their last opportunity to shape the international climate change law that will take the place of the Kyoto Protocol when it ends in 2020.

copDuring four negotiation sessions this year, the parties drafted a “Paris Package” that consists of a core legal agreement based on a system of nationally determined contributions and several COP decisions addressing implementation and political issues. The current 31-page draft agreement outlines how parties’ individual contributions will be internationally measured, reviewed, and verified. These pledges no longer focus solely on mitigation. Consistent with appeals from the developing world, the draft agreement pays almost equal attention to adaptation and finance actions. Likewise, it sets out conditions for transparent international reporting. Under it, parties take responsibility for determining whether their national efforts collectively keep global temperature rise below the Intergovernmental Panel on Climate Change (IPCC)’s recommended upper limit of 2 degrees Celsius.

This new system of national pledges that are internationally made and scrutinized for sufficiency had a World Resources Institutetrial run this year. By Oct. 1, 2015, 147 parties had submitted their Intended Nationally Determined Contributions (INDCs), covering approximately 86 percent of total global emissions. While each INDC derives from national priorities, overall they tend to include substantive contributions on mitigation, adaptation, and finance, as well as important process pledges on reporting and verification, technology transfer, and capacity building. Developed countries have pledged absolute mitigation targets and resources for vulnerable developing countries. Higher-income developing countries like Brazil, China, and Mexico have made concrete greenhouse gas mitigation pledges. Other developing countries have described their mitigation and adaptation efforts and goals, but made them conditional on receiving financial assistance. Transparency in this pledging process has been prioritized: INDCs are publicly available at the UNFCCC website and have been reviewed closely by the UNFCCC secretariat, non-governmental organization (NGOs), and the press.

CAT_thermometer_20141207That’s the good news. The bad news is that, at least in the short term, these intended contributions do not add up to keeping atmospheric warming below the 2-degree Celsius goal. A Nov. 1, 2015, UNFCCC report concluded that while the INDC pledges—if fulfilled—would slow down the global rate of greenhouse gas emissions, they will not maintain the global temperature increase below 2 degrees Celsius. Likewise NGOs like Climate Action Tracker (CAT) and Climate Interactive reach the same conclusion. CAT calculates that achieving the unconditional INDC pledges would still likely lead to a 2.7-degree Celsius increase. Climate Interactive’s math adds up to a predicted 3.5-degree Celsius increase.

So how could COP21’s Paris Package address this shortfall and result in a new international agreement that leads parties to bend the global emissions curve to a 2-degree Celsius or lower pathway?

  • First, it would use these INDCs as a starting point only and include provisions in the new agreement that require all parties to increase their contributions in regular, transparent cycles. In this way, COP21 serves as “a way station in this fight, not a terminus,” as Bill McKibben recently wrote.
  • Second, it would emphasize the need for all parties to adapt to changes already locked in by historical emissions, and recognize the permanent loss and damage experienced by the most vulnerable developing countries.
  • Third, to achieve these first two, it would show agreement on the amount and kind of financing available for developing countries to achieve their pledges. COP15’s promise of mobilizing $100 billion per year by 2020 for mitigation and adaptation activities is still on the table. A recent OECD report indicates that climate finance reached $62 billion in 2014. But many note that mobilizing private finance is not the same as pledging public funds, and call for developed country governments to do more.
  • Fourth, it would include a COP decision that ramps up the INDC pledges before the new agreement takes effect in 2020. From now until then, non-state actors like cities, states, and provinces, as well as businesses and consumer groups, have focused their subnational powers on renewable energy and energy efficiency actions intended to narrow the emissions gap.
  • Fifth, it would reflect a new understanding of CBDRRC. While this core principle no longer translates into developing countries getting a bye on greenhouse gas emissions limits, it also does not exempt developed countries from their historical responsibility for climate change and their capacity to provide finance and technology for low- or no-carbon development. The deep tension over how to fairly bring all parties into a common framework that recognizes different starting points permeates the draft text through heavily [bracketed] language.

The UNFCCC requires consensus to lift these brackets. The negotiations thus far have produced little of it. Instead, despite its fractured international politics, the G77+China has flexed its negotiation muscle IMG_0920through disciplined coordination of member countries that otherwise align with the diverse agendas of the Africa Group, Arab Group, and Like Minded Developing Countries (LMDCs). AOSIS, which represents low-lying countries whose very existence is threatened by sea level rise, works with the least developed countries group (LDCs) to press for strong adaptation and loss and damage provisions. The E.U. and U.S. are committed to market mechanisms for achieving mitigation reductions and private climate financing along with government contributions. Two negotiating groups, the Environmental Integrity Group (EIG) and AILAC, seek to find common ground. The EIG is the only group that includes both developed and developing countries. AILAC’s members are middle-income Central and South American countries that are growing rapidly yet can still reorient toward low-carbon pathways. But these national negotiators can go only so far: While they are masters of the technical details and crafting precise legal language, it appears that the true power to compromise resides in their national capitals.

Leading up to COP21, weekly meetings of heads of state and their environmental, foreign affairs, and finance ministers have taken place. In this way, local politics are actively engaged on the international problem of climate change. All parties preparing for Paris have said clearly what they want to avoid—no repeat of COP15, no “ghosts of Copenhagen” haunting COP21. It will be a day-by-day proposition with some bumpy rides along the way. Follow the journey here till its finish!

 


More on the High Level Panel Event on the Land Use Sector and Forests

This post adds a bit more detail to Chris Knowles’ earlier post. The President of the Conference of Parties convened a “High-level panel event on the land use sector and forests” on Monday 18 November at COP19 . The President himself was in attendance, but his representative opened the meeting emphasizing the importance of the land use sector in both sources and sinks of greenhouse gases.

“It is clear we need to continue to include the land use in future agreements,” a representative read on behalf of the President. “This week we have the opportunity to have an open dialog on the land sector. We can send a strong signal that the land sector is important to all parties of the conference… The outcomes of this meeting will be shared with the COP President and ADP co-chairs.”

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Co-chairing the meeting were the Minister of Environment of Finland and the Special Envoy for Climate Change in Indonesia. It was made clear that the point of the meeting was not to interfere with ongoing negotiations on other tracks (such as the REDD+ draft decision language that was recommended by SBSTA to COP for consideration), but rather to share ideas.  It appeared to be a boundary-less discussion of all three distinct land-use issues before the COP in Warsaw.

“Humankind is dependent on productive land resources,” the delegate from Finland explained. “Without the ability of trees and other vegetation, we would have already missed out ability to meet our 2° goal. This sector is too significant to be ignored.”

The Indonesian co-chair emphasized the importance of rural livelihoods to the economies and sustainability of many nations and protecting the rights of forest-dwelling and indigenous peoples.

What are we talking about?
Many countries stated that REDD+ is an important mechanism (Mozambique, Slovenia, Norway, Switzerland, Canada, Uganda, Brazil, and Gabon). There were nuances in the statements made regarding mechanisms for the land use sector in the future. Many emphasized the need for a REDD+ agreement with an established measurement, reporting, and verification system in the upcoming 2015 agreement, recommending that it be incorporated in the ADP negotiations (Namibia, Mexico, Ireland, Norway, and France).

Russia, the United States, Australia and New Zealand, on the other hand, talked about a “post-2020 new agreement”. In some ways, you might think that they are saying the same thing; the agreement to be made in 2015 is expected to go into effect in 2020. However, the United States’ statement gives you more of an impression of “kicking the can down the road”: “Formal negotiations on land sector should start after the framework of the 2015 agreement is clear.” This seems ominous.
This group of countries, all part of “The Umbrella Group”, also all mentioned the need to include all parties, or “include new parties”, a nod to the post-Durban agenda of moving away from the Annex I / developed vs non-Annex I / developing country split which has caused such strife with the Kyoto Protocol, as China, India, and other major economies were not considered “developed” at the time. The U.S., Canada, and Australia also all mentioned that the focus should be on man-made (“anthropogenic”) changes in land use. I suspect this is due to the large forest fires that the US and Australia are prone to, and the large quantity of permafrost in Canada which, when it melts, will emit huge amounts of methane, which has 34x the global warming potential of carbon dioxide.

Quite a few common themes emerged from the statements given by the various countries regarding any new land sector mechanism:
  • The need for technical and financial support, and calling on Annex I countries to meet their commitments in this realm (Philippines, Uganda, Kenya, Bolivia, Papua New Guinea, Ecuador, Slovenia, Norway)
  • Simplicity (USA, Russia, Canada, Kenya, Papua New Guinea, Slovenia, Japan)
  • Flexibility (USA, Norway, Japan, and Gabon)

Themes that reflected some of the wisdom from the Global Landscapes Conference included:

  • Include both mitigation and adaptation; land sector projects have a strong synergy with both (Philippines, Portugal, Lithuania, Bolivia, Ireland, Austria, Gabon)
  • Take a holistic approach (Lithuania, Bolivia, Papua New Guinea, Mexico, New Zealand, Austria)
  • Use local methods, connect the grassroots to national policies, support for Traditional Ecological Knowledge for adaptation and mitigation (Philippines, Brazil, Kenya, Namibia)

Indonesia, Bolivia, Ecuador and the Philippines all spoke to the need to protect indigenous rights. Indonesia in particular sees REDD+ as an opportunity to benefit indigenous peoples. Canada spoke of “aboriginal involvement” but stopped short of mentioning rights or protecting indigenous lands.

Some very unique statements included Belarus’s emphasis that soils, and wetland/peatland rewetting, needed to be included; Sweden’s desire to link the land sector with energy sector, particularly in terms of biofuels; New Zealand and Ireland’s concerns that inclusion of agriculture not be detrimental to their agriculture-based economies; and Bolivia’s criticism of market-based approaches as “further commodification of Mother Earth”. More on this later.


Negotiations Breakdown?

COP 15 President Connie Hedegaard

COP15 President Connie Hedegaard about to start 3pm meeting after suspension of the plenary re-opening the session

The morning started out with a flurry of activity.  After some discussion about the logo and how certain parties felt it represented the end of Kyoto, the COP plenary commenced with the Tuvalu delegation proposing a contact group to review its protocol, which was proposed and tabled six months ago.  As proposed, the Tuvalu protocol is a legally binding agreement meant to complement Kyoto through amendments, as well as the creation of a new protocol entitled the Copenhagen Protocol.  In no uncertain terms, Tuvalu stated it was here to “seal the deal” and wanted nothing less than a legally binding document.

In response to the request for a contact group, many of the AOSIS countries expressed great enthusiasm noting they are the states most impacted by the effects of climate change.  As Cape Verde stated, “we will be the first to diasappear…in this climate crisis.”  Other countries strongly opposed the creation of a contact group, most notably, China, India, Saudi Arabia and Venezuela.  The opposition was clear in expressing their feeling that the parties’ focus should not be on new texts.   The United States was unsurprisingly quiet.  Most alarmingly, however, countries within the G77 that had formerly been aligned were clearly divided.  Continue reading