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COP24 Approves Paris Climate Accord Guidelines

Participants in a civil society action organized by Corporate Accountability International call for ambition and equity at COP24, presenting the "People's Demands for Climate Justice." Dec. 4, 2018, Katowice, Poland (Photo courtesy Earth Negotiations Bulletin) Used with permission.

Participants in a civil society action organized by Corporate Accountability International call for ambition and equity at COP24, presenting the “People’s Demands for Climate Justice.” Dec. 4, 2018, Katowice, Poland (Photo courtesy Earth Negotiations Bulletin) Used with permission.

By Sunny Lewis

KATOWICE, Poland, December 18, 2018 (Maximpact.com News) – Glaciers are still melting, sea levels are still rising, extreme weather is still causing floods and droughts, but the planet may be better able to withstand these consequences of climate change now that delegates at the UN’s COP24 climate change summit in Poland have adopted implementing guidelines for the 2015 Paris Accord.

The nearly 200 governments gathered in Katowice early Sunday adopted the guidelines that will breathe life into the Paris Agreement, which is aimed at keeping global warming below 2°C compared to pre-industrial levels.

As the Katowice Climate Package is adopted, delegates cheer and Michal Kurtyka, COP 24 President, jumps for joy. December 16, 2018, Katowice, Poland (Photo courtesy Earth Negotiations Bulletin) Used with permission.

As the Katowice Climate Package is adopted, delegates cheer and Michal Kurtyka, COP 24 President, jumps for joy. December 16, 2018, Katowice, Poland (Photo courtesy Earth Negotiations Bulletin) Used with permission.

He thanked the hundreds of delegates in the room for their “patience,” noting that the last night “was a long night.” Laughter rippled through the hall as the big screens showed a delegate yawning profoundly.

The meeting had been scheduled to wrap on Friday, December 14. But the conference continued Saturday, as delegates consulted throughout the day to finalize the decisions for the Paris Agreement Work Programme. The final plenary session was gaveled to a close early Sunday morning.

Agreement was not unanimous. The United States, Saudi Arabia, Kuwait and Russia are not onboard with the views of the majority of governments at COP24.

Judith Garber, principal deputy assistant secretary with the U.S. Bureau of Oceans and International Environmental and Scientific Affairs, delivered the U.S. National Statement, saying, “As President Trump announced last year, the United States intends to withdraw from the Paris Agreement, absent the identification of terms that are more favorable to the American people. He also made clear that the United States will continue to be a leader in clean energy, innovation, and emissions reduction.”

But many delegates at COP24 did not believe that the Trump administration’s championship of “clean coal” is the way to avert climate change.

On December 10 in Katowice, as the United States hosted a side event focused on the role of “clean coal,” carbon capture and storage technologies, delegates stormed out of the event and flooded the hallways, calling on the United States to “keep fossil fuels in the ground.”

That action followed a split last week among delegates over the Intergovernmental Panel on Climate Change’s special report on the disastrous consequences if average global temperatures rise by 1.5°Celsius, and how to ensure they don’t go higher.

The IPCC report was widely regarded as a wake-up call for policy makers when it was released in October. Almost all the nearly 200 countries present in Katowice had wanted to “welcome” the IPCC report, making it a benchmark for future action.

But the United States sided with Russia, Saudi Arabia and Kuwait in blocking endorsement of the study, calling for it to be “noted” but not “welcomed.”

“The United States was willing to note the report and express appreciation to the scientists who developed it, but not to welcome it, as that would denote endorsement of the report,” the U.S. State Department said in a statement. “As we have made clear in the IPCC and other bodies, the United States has not endorsed the findings of the report.”

The objections of the four governments to the IPCC report was based on its suggestion that fossil-fuel use must be phased out by 2050 to avoid the worst catastrophes of climate change. Coal, oil and gas are major sources of carbon dioxide, which traps heat in the atmosphere close to the planet.

Blasting the efforts of the United States, Saudi Arabia, Kuwait and Russia to undermine climate science as a “suicide mission” and “criminal enterprise,” California Governor Jerry Brown sent a video message imploring the world’s leaders to “wake up” and “take action now.”

In addition, several other alarming climate studies have been released during the past two months, including the

Global Carbon Budget 2018” published in this month’s issue of the journal “Earth System Science Data.” In this study, an international team of scientists shows that the concentration of carbon dioxide (CO2) in the atmosphere has increased from roughly 277 parts per million in 1750, the beginning of the industrial era, to 405 ppm in 2017.

“Over the last decade we have seen unprecedented changes in the human and biophysical environments (e.g. changes in the growth of fossil fuel emissions, Earth’s temperatures, and strength of the carbon sinks), which call for frequent assessments of the state of the planet and a growing understanding of and improved capacity to anticipate the evolution of the carbon cycle in the future.”

This means that a continuous stream of accurate data is necessary to allow scientists to understand and governments to have some control over climate warming.

What Is the Paris Agreement Work Programme?

One of the key components of the Katowice agreement approved by delegates is a detailed transparency framework, meant to promote trust among nations. It sets out how countries will provide information about their national climate action plans, including the reduction of greenhouse gas emissions as well as mitigation and adaptation measures.

In Katowice, agreement was reached on how to uniformly count greenhouse gas emissions and that, too, is part of the Paris Agreement Work Programme.

On the difficult question of financing from developed countries in support of climate action in developing countries, the Katowice guidelines set a way to decide on new, more ambitious targets from 2025 onwards, from the current commitment to mobilize US$100 billion a year as of 2020.

Nations also agreed on how to collectively assess the effectiveness of climate action in 2023 and how to monitor and report progress on the development and transfer of technology.

“The guidelines that delegations have been working on day and night are balanced and clearly reflect how responsibilities are distributed amongst the world’s nations,” said Patricia Espinosa, who heads the UN Framework Convention on Climate Change, UNFCCC, secretariat.

“They incorporate the fact that countries have different capabilities and economic and social realities at home, while providing the foundation for ever increasing ambition,” said Espinosa.

There was one key issue upon which delegates could not agree – the matter known as “Article 6,” about carbon markets or carbon trading, which enable countries to buy and sell their emissions allowances to meet a part of their domestic mitigation goals.

The Paris Agreement recognizes the need for global rules on this matter to safeguard the integrity of all countries’ efforts and ensure that each tonne of emissions released into the atmosphere is accounted for.

But agreement was not reached in Katowice, and the issue will be back on the table at the next UN climate change conference, COP25, set to take place next December in Chile.

Commenting on the adoption of the Paris Agreement Work Programme, Chair of the Least Developed Countries Group, Gebru Jember Endalew of Ethiopia, said, “While there are parts of the package that could and should have been stronger, the implementation guidelines adopted today provide a strong basis to start implementing the Agreement. The next step, of course, is for countries to take urgent, ambitious action to fulfil their Paris Agreement commitments.”

“This year, it has been made very clear that no country is immune to the impacts of climate change, but it is the nearly one billion people living in the 47 least developed countries that are often hit the hardest, suffer the most, and have the least capacity to cope,” said Endalew.

“Parties need to revise and enhance their Nationally Determined Contributions before 2020 in line with their fair share,” he said. “It is well known that current pledges will not be nearly enough to limit warming to 1.5°C. To achieve the visions and the goals of the Paris Agreement, countries must commit to greater levels of climate action and support, and follow through on those commitments.”

Ambition Cruicial, But Achievement Relies on Funding

“From now on, my five priorities will be: ambition, ambition, ambition, ambition and ambition,” said UN chief António Guterres told delegates at the closing planery through spokeswoman Espinosa. “Ambition in mitigation. Ambition in adaptation. Ambition in finance. Ambition in technical cooperation and capacity building. Ambition in technological innovation.”

To achieve this, the UN Secretary-General is convening a Climate Summit on 23 September, at UN Headquarters in New York, to engage governments at the highest levels.

Some financial engagement is already underway. The Green Climate Fund has to date funded 93 climate-calming projects and the Fund’s first replenishment drive received top-level support from both developing and developed nations during COP24.

In October, the Green Climate Fund Board approved over US$1 billion of new projects and programs to support climate action in developing countries.

The most costly of the newly approved projects is US$280 million for Transforming financial systems for climate in Benin, Burkina Faso, Cameroon, Cote d’Ivoire, Ecuador, Egypt, Kenya, Madagascar, Mauritius, Morocco, Namibia, Nigeria, Senegal, South Africa, Tanzania, Togo, and Uganda with the Agence Française de Développement.

Another high-dollar project approved in this round is US$100 million for the Indonesia Geothermal Resource Risk Mitigation Project with the World Bank. See the entire list here.

The two-week climate conference began on a positive note for the Green Climate Fund with an announcement by the German Government it will double its pledge to GCF to €1.5 billion. This was followed by Norway’s announcement that it will double its contribution to GCF’s replenishment. Ireland also indicated that it will commit additional financing to the Fund by the end of this year.

Other encouraging financial commitments for climate action were made. The World Bank announced it would increase its commitment to climate action after 2021 to $200 billion; and the Climate Adaptation Fund received a total of $129 million.

The private sector showed strong engagement with the goals of the Paris Agreement. Among the highlights of this COP, two major industries – the sports and the fashion worlds – joined the movement to align their business practices with the goals of the Paris Agreement, through the launch of the Sports for Climate Action Framework, and the Fashion Industry Charter for Climate Action.

The COP24 Presidency announced the Driving Change Together – Katowice Partnership for Electromobility and the associated partnership between Poland and the United Kingdom.

The Driving Change Together Partnership will establish a platform for cities, regional and national governments, as well as nongovernmental organizations to develop and exchange their knowledge and experiences of e-mobility and foster establishing new practical initiatives at local and international levels.

Civil Society Critical of Progress in Katowice

UN Secretary-General António Guterres and UNFCCC Executive Secretary Patricia Espinosa, Dec. 14, 2018, Katowice, Poland. (Photo courtesy Earth Negotiations Bulletin) Used with permission.

UN Secretary-General António Guterres and UNFCCC Executive Secretary Patricia Espinosa, Dec. 14, 2018, Katowice, Poland. (Photo courtesy Earth Negotiations Bulletin) Used with permission.

In addition to the political negotiations among UNFCCC Member States on the Paris guidelines over the past two weeks, the halls of COP24 were packed with 28,000 participants exchanging views, sharing innovative ideas, attending cultural events, and building partnerships for cross-sectoral and collaborative efforts.

Fossil Free, a worldwide campaign to end the age of fossil fuels, says country delegates “failed to deliver a strong enough set of guidelines.”

“Our movement has shown that we’re ready to fill the ambition gap – from the growing wave of kids’ school strikes to the way we’ve blown through a major milestone with over 1,024 divestment commitments” from institutions announced at COP24.

On Thursday in Katowice, a press conference celebrated the divestment commitments spanning 37 countries since 2012: cities like New York, Berlin and Cape Town; medical institutions like the American Public Health Association; faith groups like the Diocese of Assisi; insurance giants and investment funds like Norway’s sovereign wealth fund and the country of Ireland.

“To keep warming below 1.5°C we demand an immediate freeze on all new fossil fuel projects and a rapid and just transition to 100 percent renewable energy for all,” says Fossil Free.

Answering Swedish schoolgirl Greta Thunberg’s call for school strikes, youth in Poland, Switzerland, Germany, Sweden, and Australia skipped school for the climate. And the #climatestrike continues to spread.

And back in the United States, more than 1,000 young people flooded the halls of Congress to demand action on a Green New Deal before the end of the year, resulting in over 100 arrests. And the call for a Green New Deal has spread to Canada.

A day before the start of COP24, 75,000 people marched in Brussels, Belgium and 35,000 came out in Berlin and Cologne, Germany. On December 8, activists staged a peaceful march in Katowice and took actions to sound the climate alarm around France and Europe.

The Paris Agreement, unanimously agreed by world leaders in 2015, has already produced positive results. According to the United Nations, notable achievements include:

  • At least 57 countries have managed to bring their greenhouse gas emissions down to the levels required to curb global warming.
  • There are at least 51 “carbon pricing” initiatives in the works; charging those who emit carbon dioxide per tonne emitted.
  • In 2015, 18 high-income countries committed to donating US$100 billion a year for climate action in developing countries. So far, over $70 billion has been mobilized.
  • The Paris Agreement, which provides the world with the only viable option for addressing climate change, has been ratified by 184 parties, and entered into force in November 2016.

The commitments contained in it are:

– Limit global average temperature rise to well below 2°C and pursue efforts to limit the temperature increase to 1.5°C.

– Ramp up financing for climate action, including the annual $100 billion goal from donor nations for lower-income countries.

– Develop national climate plans by 2020, including their self-determined goals and targets.

– Protect beneficial ecosystems that absorb greenhouse gases, including forests.

– Strengthen resilience and reduce vulnerability to climate change.

– Finalize a work program to implement the agreement in 2018.

That last point, the Paris Agreement Work Programme, was indeed finalized by delegates at COP24 in Katowice, despite some disagreements.

Chile will host the next UN climate summit, working with Costa Rica and other Latin American nations.

Brazil withdrew its candidacy to host the COP25 conference citing budget limitations, but environmental groups believe the move is a favor to the incoming government led by the far-right Jair Bolsonaro, who has threatened to pull Brazil out of the Paris Agreement.

The next summit was expected to take place between November 11 and 22, 2019, but Chilean President Sebastian Piñera now says COP25 will be held in January 2020.


Maxtraining

Wallets Open for Climate at Poland’s COP24

COP24 President Michal Kurtyka, State Secretary in Poland's Ministry of Energy, welcomes the delegates during the conference's opening plenary session, December 2, 2018, Katowice, Poland. (Photo courtesy Earth Negotiations Bulletin) Used with permission.

COP24 President Michal Kurtyka, State Secretary in Poland’s Ministry of Energy, welcomes the delegates during the conference’s opening plenary session, December 2, 2018, Katowice, Poland. (Photo courtesy Earth Negotiations Bulletin) Used with permission.

By Sunny Lewis

KATOWICE, Poland, December 4, 2018 (Maximpact.com  News) – Heads of state and government, diplomats and climate scientists, economists and bankers have gathered in Katowice for the UN’s annual climate conference, and this one is anything but routine. Known as COP24, it has a daunting task.

Over the next 12 days, negotiators are expected to finalize the rules for implementation of the Paris Agreement on climate change, unanimously agreed by 196 world leaders three years ago.

The Paris Agreement requests that each country outline and communicate their post-2020 climate actions, known as Nationally Determined Contributions.

The goal is to limit global warming to 1.5 to 2 degrees Celsius above pre-industrial levels.

COP24, formally the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change, opened today under extreme pressure. A blizzard of dire climate science reports from the United Nations, the Intergovernmental Panel on Climate Change, even the U.S. government, have all come out within the past two months warning that time is running out quickly to do anything about the climate crisis.

Extreme weather, droughts, wildfires, floods, sea level rise, wildlife displacement, melting glaciers, tropical disease spread, hunger, water scarcity, and climate migrants desperate to escape these disasters – all are being forecast for the near future – to appear in a decade or two at most.

COP24 President Michal Kurtyka, Poland’s Energy Secretary, said, “The 2015 Paris Agreement entered into force faster than any other agreement of its kind. I now call on all countries to come together, to build upon this success and to make the agreement fully functional.”

“We are ready to work with all nations to ensure that we leave Katowice with a full set of implementation guidelines and with the knowledge that we have served the world and its people,” Kurtyka said.

The Paris Agreement is voluntary, no country is forced to do anything, countries do only what they agree to do.

U.S. President Donald Trump, for instance, has decided to pull the world’s second largest emitter of greenhouse gases out of the Paris Agreement altogether.

World Bank Pledges $200 Billion

Most countries want to participate, but for many the barriers are financial. The World Bank Group is stepping up to help them.

In 2018, the World Bank Group provided a record-breaking $20.5 billion in finance for climate action, doubling delivery from the year before the Paris Agreement and meeting its 2020 target two years ahead of schedule. Now the Bank has set a new target.

The World Bank Monday announced the doubling of its current five-year investments for 2021-2025 to around $200 billion in support of ambitious climate action to boost adaptation and resilience in the world’s poorest countries.

Entering the plenary hall, (from left) María Fernanda Espinosa Garcés, President, UN General Assembly; UN Secretary-General António Guterres; Poland's President Andrzej Duda, December 3, 2018, Katowice, Poland. (Photo courtesy Earth Negotiations Bulletin) Used with permission.

Entering the plenary hall, (from left) María Fernanda Espinosa Garcés, President, UN General Assembly; UN Secretary-General António Guterres; Poland’s President Andrzej Duda, December 3, 2018, Katowice, Poland. (Photo courtesy Earth Negotiations Bulletin) Used with permission.

“Climate change is an existential threat to the world’s poorest and most vulnerable. These new targets demonstrate how seriously we are taking this issue, investing and mobilizing $200 billion over five years to combat climate change,” World Bank Group President Jim Yong Kim said.

“We are pushing ourselves to do more and to go faster on climate and we call on the global community to do the same,” urged Kim. “This is about putting countries and communities in charge of building a safer, more climate-resilient future.”

The $200 billion across the Group is made up of $100 billion in direct finance from the World Bank, and $100 billion of combined direct finance from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency and private capital mobilized by the World Bank Group.

“There are literally trillions of dollars of opportunities for the private sector to invest in projects that will help save the planet,” said IFC CEO Philippe Le Houérou. “Our job is to go out and proactively find those opportunities, use our de-risking tools, and crowd in private sector investment. We will do much more in helping finance renewable energy, green buildings, climate-smart agribusiness, urban transportation, water, and urban waste management.”

Multilateral Banks Join Forces

In a joint declaration issued on opening day, the nine multilateral development banks (MDBs) committed to working together in key areas considered central to meeting the goals of the Paris Agreement.

“The global development agenda is at a pivotal point,” the banks declared. “There is international consensus on the urgent need to ensure that policy engagements and financial flows are consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.”

“To realize this vision, we are working together to develop a dedicated approach,” the banks said.

The MDBs plan to break their joint approach down into practical work on: aligning their operations against mitigation and climate-resilience goals; ramping up climate finance; capacity building support for countries and other clients; plus an emphasis on climate reporting.

This approach builds on the ongoing MDB contribution to climate finance, which, in 2017, amounted to $35 billion to tackle climate change in developing and emerging economies, while mobilizing an additional $52 billion from private and public sector sources.

The MDBs will report back to next year’s COP25 gathering on their progress.

The nine MDBs are: the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, the Islamic Development Bank, the New Development Bank, and the World Bank Group.

Africa in the Spotlight

Today, the opening day of COP24, was devoted to Africa Day, a joint initiative of the African Development Bank, the African Union Commission, the United Nations Economic Commission for Africa and the New Partnership for Africa’s Development.

They estimate that Africa would need US$3 trillion to implement the adaptation and mitigation targets in their Nationally Determined Contributions by 2030.

But in reality Africa is receiving much less. Sub-Saharan Africa received an average of US$12 billion a year in 2015 and 2016.

The Africa Day meetings were focused on enhancing Africa’s access to funding, capacity-building, technology development and transfer.

As of November 2018, 49 African countries out of 54 – 90 percent – had ratified their Nationally Determined Contributions (NDCs), demonstrating the continent’s level of awareness of and commitment to fight climate change.

“The People’s Seat” Initiative

British broadcaster Sir David Attenborough used his opening day speech to launch a new UN campaign – “The People’s Seat” initiative. Working through ActNow.bot, the campaign is designed to give people the power and knowledge to take personal action against climate change directly on the Facebook Messenger Platform.

The speech was preceded by a video produced with social media content posted in advance of COP24 using the hashtag #TakeYourSeat.

Attenborough called “The People’s Seat” initiative the result of new activism shaped by people from around the world. The initiative allows people from around the world to send direct messages to decision makers by posting contributions on social media.

“In the last two weeks,” Attenborough said of ActNow.bot, “the world’s people have taken part in creating this address, answering polls, creating videos and voicing their opinions.”

“The world’s people have spoken and their message is clear – time is running out. They want you, the decision makers to act now,” Attenborough declared.

“The people are behind you, supporting you in making tough decisions, but they are also willing to make sacrifices in their daily lives,” Attenborough said. “To make this even easier, the UN is launching the Act Now bot. Helping people to discover simple everyday actions that they can take, because they recognise that they too must play their part.”

What’s Next?

During COP24 action events will be held on human settlements, industry, transport, water, oceans and coastal zones, energy, forests, agriculture and land use. A high-level event on education will take place.

Roundtables will be held on:

Finance and climate action;

Resilience and climate action;

Land use, water and energy;

Oceans and coastal zones and transport; and

Three of the 17 Sustainable Development Goals:

SDG 8 (decent work and economic growth) and climate;

SDG 9 (industry, innovation and infrastructure) and climate.

SDG 12 (responsible consumption and production) and climate;

Other groups will meet on: intergenerational inquiry; the fashion industry charter for climate action; sports for climate action; and tourism for climate action

Patricia Espinosa, the UN’s Climate Chief, told the opening day audience, “This year is likely to be one of the four hottest years on record. Greenhouses gas concentrations in the atmosphere are at record levels and emissions continue to rise. Climate change impacts have never been worse. This reality is telling us that we need to do much more – COP24 needs to make that happen.”

The outcome – a finalized set of implementation guidelines – is expected to unleash practical climate actions with respect to all the targets and goals of the Paris Agreement – adapting to climate change impacts, reducing greenhouse gas emissions and providing financial and other support to developing countries.

Featured image source: Sir David Attenborough delivers “The People’s Seat” address to delegates at COP24, December 3, 2018, Katowice, Poland (Photo courtesy Earth Negotiations Bulletin) Used with permission


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Nations Step Up Climate Action Ambitions

Participants in the Talanoa Dialogue share their stories and insights regarding climate change in one of seven dialogue rooms in Bonn, Germany. May 6, 2018 (Photo courtesy Earth Negotiations Bulletin) Used with permission

Participants in the Talanoa Dialogue share their stories and insights regarding climate change in one of seven dialogue rooms in Bonn, Germany. May 6, 2018 (Photo courtesy Earth Negotiations Bulletin) Used with permission

By Sunny Lewis

BONN, Germany, May 8, 2018 (Maximpact.com News) – “We need to dramatically increase our ambitions. We are witnessing the severe impacts of climate change throughout the world,” said Executive Secretary of UN Climate Change Patricia Espinosa of Brazil, at a news conference in Bonn.

“Every credible scientific source is telling us that these impacts will only get worse if we do not address climate change, and it also tells us that our window of time for addressing it is closing very soon,” she warned.

Espinosa was speaking at the latest round of United Nations climate change negotiations taking place in Bonn. Talks, which opened April 30 and run through May 10, are focused on developing the operating manual for implementing the landmark 2015 Paris Agreement.

The accord aims to keep temperature rises this century well below 2 degrees Celsius as compared with pre-industrial levels.

The UNFCCC chief outlined three priorities:

First, all stakeholders, including governments, nongovernmental organizations, businesses, investors and citizens, must accelerate climate action by 2020.

Second, she said, the international community must complete the Paris Agreement guidelines, or operating manual, to unleash the potential of the accord.

Third, conditions must be improved to enable countries to be more ambitious in determining their own national policies to slow down global warming.

At the UN Climate Change Conference (COP23) held last November under the leadership of Fiji, nations agreed to accelerate and complete their work to put in place the guidelines, officially known as the Paris Agreement Work Programme, at COP24 in Katowice, Poland this coming December.

At this Bonn meeting, governments are drafting texts to be finalized at COP24.

Prime Minister Frank Bainimarama, and COP 23 President, Fiji, and UNFCCC Executive Secretary Patricia Espinosa speak in a hallway at the Bonn Climate Conference, May 7, 2018 (Photo courtesy Earth Negotiations Bulletin) Used with permission

Prime Minister Frank Bainimarama, and COP 23 President, Fiji, and UNFCCC Executive Secretary Patricia Espinosa speak in a hallway at the Bonn Climate Conference, May 7, 2018 (Photo courtesy Earth Negotiations Bulletin) Used with permission

Espinosa said, “To reach success at COP24, it is essential that nations begin working towards draft negotiating texts at the May meeting. This will provide a solid foundation for work in the second half of 2018 and help them to deliver a strong result.”

Finishing the operating manual is necessary to assess whether the world is on track to achieve the goals of the Paris Agreement – limiting greenhouse gas emissions, while pursuing efforts to keep the temperature rise to less than 1.5°C.

Throughout this year, countries will focus on how they can scale up their climate ambition and implementation in the pre-2020 period. All countries share the view that climate action is essential prior to 2020 when implementation of the Paris Accord begins.

Talks focused on the financial support needed to make the Paris Agreement work. By one estimate, the annual un-avoided damages of climate change will cost $50 billion by 2020, growing to $300 billion in 2030.

Bloomberg Covers USA’s Paris Agreement Obligations

Michael Bloomberg, the billionaire philanthropist, former Mayor of New York City, and UN Special Envoy for Climate Action, pledged last June to make up the funding shortfall of the Climate Change Secretariat, the UNFCCC. The shortfall was caused by U.S. President Donald Trump’s announced withdrawal from the Paris Agreement on climate change.

In late March, the United States Congress announced that it was cutting funding to the UNFCCC for this year by $4.5 million; from $7.5 million, down to $3 million.

Bloomberg’s $4.5 million contribution will go towards general operations, including assisting countries to meet targets for cutting greenhouse gas emissions in line with the Paris Accord, agreed by 193 States in the French capital.

Bloomberg announced his contribution on the CBS television program “Face the Nation,” saying that, “America made a commitment and as an American, if the government’s not going to do it, we all have a responsibility.”

Bloomberg said he will make additional funds available to the UN Climate Change Secretariat should the U.S. government continue to fail to pay its share of the UN climate budget in 2019.

Bloomberg also provided the majority of funding for the U.S. Climate Action pavilion in Bonn, Germany at COP23 when the federal government failed to provide the traditional exhibition space for American climate leadership.

At COP 23, Bloomberg and California Governor Jerry Brown launched the phase 1 America’s Pledge report – a footprint analysis of greehouse gas emissions in the United States – and formally submitted it to the UN in place of the federal Nationally Determined Contribution. They plan to release the phase 2 later this year and formally submit it, as well.

UN Secretary-General António Guterres said on Twitter that he was “very grateful to Michael Bloomberg, not only for his generous support to the United Nations, but also for his global leadership on climate action.”

The Talanoa Dialogue for Climate Ambition

An important objective of the May session in Bonn is holding the Talanoa Dialogue. The Fiji-led Talanoa Dialogue is facilitated by the UNFCCC Secretariat and will enjoy the presence of high-level officials from Fiji, including Prime Minister Frank Bainimarama, who is the President of COP23.

The Pacific island concept of Talanoa was introduced by Fiji, which held the Presidency of the COP23 UN Climate Change Conference. It aims at an inclusive, participatory and transparent dialogue.

Traditional in the Pacific region, the purpose of Talanoa is to share stories, build empathy and to make wise decisions for the collective good. The Talanoa method purposely avoids blame and criticism to create a safe space for the exchange of ideas and collective decision-making.

The consultative dialogue will check progress, reaffirm the goals of the Paris Agreement and aim to help countries increase their ambition now and in the next round of their voluntary national climate action plans, known as Nationally Determined Contributions.

The Talanoa Dialogue made history when countries and non-party stakeholders, including cities, businesses, youth, indigenous peoples, workers, investors and regions, engaged in interactive story-telling around current and future ambitions for the first time.

Hilda Heine, president of the low-lying Marshall Islands, tweeted, “The #Talanoa4ambition is not some bureacratic box-ticking exercise for my country. It’s the first step for giving us the pathway to survival the #ParisAgreement promised us.”

Alberto Saldamando, speaking for the Indigenous Environmental Network, US/Canada, said, “It is well understood that Indigenous Peoples are most directly and severely affected by climate change. Catastrophic weather events affect us worldwide – the Amazon forest, the Himalayan Mountains, the Arctic, North America, the Pacific and

Caribbean, Latin America, Africa and Asia.”

“Rising oceans cause a loss of our habitat, territory and food sovereignty and security. Our indigenous peoples in all regions experience severe storms, droughts and flooding. These events detrimentally affect not only our food sovereignty and security but our very existence, our cultures and identity as indigenous peoples,” said Saldamando.

“Defenders of our food security, our ecosystems, territories and cultures, and Sacred Water are criminalized, facing intimidation, imprisonment and assassination. Negotiations have yet to fairly address human rights and the rights of indigenous peoples,” he said.

“The Talanoa Dialogue must result in substantially increased pre-2020 ambitions in the mitigation of greenhouse gases. The Dialogue must also provide political momentum for substantially increased ambition for NDCs to be communicated by parties in 2020,” he said.

The content of these story-telling conversations will feed into the Talanoa Dialogue’s political phase at COP24. The political phase will bring together government ministers and high-level officials for conversations with a view to generating political momentum to check the warming climate.

Climate Change as a Public Health Emergency

The World Health Organization (WHO) has warned that records for extreme weather events are being broken at an unprecedented rate, and that there is a real risk that the planet could lose its capacity to sustain human life if the climate is further altered by adding ever more heat-trapping greenhouse gases.

WHO officials expressed the warning while presenting new data at the UN Climate Change Conference in Bonn that shows that nine out of 10 people breathe air containing high levels of pollutants and that around seven million people every year die from exposure to fine particles in polluted air.

The figure could be surpassed by deaths caused by rising global temperatures and extreme weather if emissions, primarily caused by the burning of fossil fuels and deforestation, are allowed to rise at their present rate.

Dr. Diarmid Campbell-Lendrum, WHO Team Lead on Climate Change and Health, said, “We see the Paris Agreement as a fundamental public health agreement, potentially the most important public health agreement of the century.”

“If we don’t meet the climate challenge, if we don’t bring down greenhouse gas emissions, then we are undermining the environmental determinates of health on which we depend,” said Dr. Campbell-Lendrum. “We undermine water supplies, we undermine our air, we undermine food security.”

Featured image: Tomasz Chruszczow, COP 24 Presidency, Poland (left), and Incoming COP 24 President Michal Kurtyka, Poland at the climate talks in Bonn, May 5, 2018 (Photo courtesy Earth 


Green Bond Surge Expands

SolarPowerChina

Solar photovoltaic power generation in Hong Kong, China. (Photo by WING / Electrical and Mechanical Services Department Headquarters) Creative commons license via Wikipedia.


By Sunny Lewis

LONDON, UK, April 18, 2017 (Maximpact.com News) – The market for Green Bonds is developing rapidly, proving effective at channeling money into environmental projects. Offering insights into this fledgling, but fast-growing, market, “Environmental Finance,”the London-based online news and analysis service, has just announced its latest Green Bond Award winners.

The 25 awards recognize best practices, or significant issues in the development of the green bond market, during 2016. The winners were selected by a panel of judges made up of some of the world’s biggest green bond investors.

Poland was honored for the first ever issuance of Green Bonds by a national government. The world’s first sovereign green bonds, issued in December, will finance environmental projects in the country. Poland has been heavily reliant on coal as its energy source; its green bond auction represents a shift to more sustainable energy production.

Deputy Finance Minister Piotr Nowak said the green bonds would allow Poland to further diversify its investor base.

Global law firm White & Case, which advised the Polish Ministry of Finance on the €750 million issuance of its Green Bonds, took the award for best law firm.

Winners include the Dutch mortgage corporation Obvion, which won the title of best asset-based bond for its landmark green residential mortgage-backed security.

The Dutch bank Rabobank took the top spot for the second year running as the best bank issuer of green bonds. Rabobank is a major financier of both onshore and offshore wind farms, holding a Top 10 position worldwide and is the market leader in the United States, Canada and the Netherlands.

Rabobank has developed a Green and Sustainability Bond Framework for the two different types of bonds. Green bonds fund environmental projects, while sustainability bonds fund projects with a social impact that may or may not have environmental benefits.

Rabobank Green Bonds fund renewable energy projects such as solar and wind, while Rabobank Sustainability Bonds fund loans provided to small and medium-sized enterprises with sustainability certifications on products, processes or buildings.

Industrial Bank of China was named as the biggest bank issuer, and Bank of America Merrill Lynch as the biggest underwriter.

Green Bonds enable capital-raising and investment for new and existing projects with environmental benefits. In the past, most green bond issuers have been development banks and financial services firms.

In the United States green bonds have been issued by municipalities, power companies and a few other corporate entities.

Now this year, Environmental Finance Bond of the Year winners are U.S. corporate giants Starbucks and Apple.

In February 2016, Apple, headquartered in California’s Silicon Valley, issued a $1.5 billion green bond, boosting the young market’s prospects for attracting corporate issuers.

In May 2016, the Seattle-based coffee chain Starbucks issued a first-of-its-kind $500 million U.S. corporate sustainability bond. The funding will enhance sustainable coffee supply chain management and the operation of farmer support centers in eight coffee growing regions, as well as loans to farmers made through Starbucks Global Farmer Fund.

Bank of America Merrill Lynch was named again this year as the winner of both Best underwriter: corporate, and Best underwriter: municipality.

Click here to read about all the winners.

Environmental Finance also publishes the Green Bond Database, a table listing the 25 most recently issued green bonds.

Meanwhile, Canada is emerging as a green bond market force.

The Royal Bank of Canada (RBC) Capital Markets Green Bond Conference in Toronto on April 10 saw release of a report showing Canada’s capacity for green bond issues will be at least $56.3 billion in fiscal 2017/18.

The figures reported by the award-winning “clean capitalism” magazine “Corporate Knights,” are based on an analysis of the capital requirements, debt-raising capacity, and intended uses of proceeds on the part of 21 of Canada’s largest public and private bond issuers.

There’s clear momentum in green bond markets, but it’s still seen as a niche and perhaps even challenging financing tool,” says “Corporate Knights” CEO Toby Heaps. “A billion dollars worth of bonds formally labeled as green are currently being issued in Canada annually. This analysis shows there’s potential for exponential growth.

The analysis took a bottom-up approach to quantifying potential bond issues and is the first of its kind in Canada.

The report shows that in 2017/18, the 21 potential bond issuers have a need and capacity to fund $23.60 billion worth of “explicitly green projects” such as public transit, renewable energy, and loans for electric vehicle purchases and green power projects.

The Canadian potential bond issuers have a further need and capacity to fund $32.7 billion worth of “potentially green projects” such as energy efficient construction or retrofitting of public buildings and installation of broadband.

In Latin America, the Mexican government’s development bank Nacional Financiera, or Nafin, has tapped the green bond market with a issuance of $500 million in a deal that was five times oversubscribed.

China, too, is busily developing its green bond market.

More than 500 green finance experts from regulators and industry gathered at the annual Green Finance Summit in Beijing on April 15, the surging number of attendees reflecting the increased attention being placed on greening the financial system, reports Andrew Whiley, writing for Climate Bonds Initiative, an investor-focused not-for-profit based in London.

The Green Finance Summit has been held annually since 2015 by the China Financial Society’s Green Finance Committee which operates under the auspices of the People’s Bank of China.

Major issues on the summit’s agenda this year included:

  • opportunities and challenges facing green credit and green bond markets
  • establishment of green financial systems at a local level
  • innovation in green financial products

The summit saw the debut of the “Study of China’s Local Government Policy Instruments for Green Bonds” report.

Prepared by Climate Bonds & Syntao Green Finance, the new report examines green bond developments at a local government level and sets policy recommendations for growth.

Tracking the rapid growth in Chinese green bond issuance from almost zero in 2015 to RMB 238 billion (US$36.2 billion) or 39 percent of all green bonds issued around the world in 2016, the report outlines the policy steps taken by government regulators and stock exchanges in supporting such rapid growth.

China’s new Guidelines, issued by seven Chinese government ministries last September, call for government ministries and financial institutions to collaborate on the development of a wide range of financial instruments to move money from high-polluting to low-polluting sectors, including green credits, green bonds, green insurance, green equity indices, green development funds and carbon finance.

The guidelines are contained in the report “Establishing China’s Green Financial System” written by the Green Finance Task Force of the People’s Bank of China.

Two recommendations are particularly relevant to the international community’s current concerns about China’s financial system, wrote the World Resources Institute’s Shouqing Zhu last September.

The first relates to green bonds. Since the People’s Bank of China and the National Development and Reform Commission separately issued their directives on green bonds at the end of 2015, the market has witnessed exponential growth.

Following this rapid growth, there have been concerns about “greenwashing,” or businesses using green bonds to finance polluting projects instead of green ones due to a lack of a solid reporting and verification system.

Zhu writes, “The Guidelines call for harmonization of the two domestic green bond standards and development of third-party verification bodies in line with international practices.

International best practices are defined by the International Capital Market Association (ICMA) a UK-based industry membership association that publishes the Green Bond Principles .

Updated as of June 2016, the Green Bond Principles (GBP) are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond.

The Green Bond Principles provide issuers guidance on the key components involved in launching a credible Green Bond. They are intended to aid investors by ensuring availability of information necessary to evaluate the environmental impact of their Green Bond investments. They assist underwriters by moving the market towards standard disclosures which will facilitate transactions.


Featured image: Trianel Windpark Borkum is an offshore wind farm of 40 turbines in the North Sea off the north coast of The Netherlands near the German border. A second stage of development is planned to start delivering power in 2019. It was financed in part by Rabobank. (Photo courtesy Trianel.com) Posted for media use. 

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Europe’s Microcredit Providers Have It EaSI

Europes Microcredit Providers Have It EaSIBy Sunny Lewis

BRUSSELS, Belgium, February 28, 2017 (Maximpact.com News) – The European Investment Fund and Nest Bank earlier this month signed a microfinance agreement aimed at supporting micro-businesses in Poland under the new EU Programme for Employment and Social Innovation (EaSI).

EaSI is a new source of funding, offered by the European Investment Fund and the European Commission, to help micro-credit and social enterprise finance providers develop their businesses.

The EaSI guarantee plan provides support to financial intermediaries that offer microloans to entrepreneurs or finance to social enterprises that would not have been able to obtain financing otherwise due to risk considerations.

The goal is to increase access to microfinance for vulnerable groups who want to set up or develop their business and micro-enterprises, through loans of up to €25,000.

EaSI aims to contribute to the implementation of the Europe 2020 strategy by supporting the EU’s objective of high level employment, guaranteeing adequate social protection, fighting against social exclusion and poverty and improving working conditions.

The new EaSI Capacity Building Investments Window will reinforce the capacity of selected financial intermediaries in the areas of microfinance and social enterprise finance.

Through equity investments such as seed financing and risk capital, EaSI will support the development of these finance providers in their efforts to do things such as open a new branch, invest in human resources, develop a new IT tool or finance expenses.

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Dorota Zys is a Polish entrepreneur in the field of Internet and mobile applications with extensive experience in website design and digital marketing consultancy. She has advised professionals and trained over 100 companies in Inbound Marketing principles and their application. (Photo courtesy Bitspiration 2016) Posted for media use.


In Poland, with the financial backing of the European Commission, the European Investment Fund is providing a guarantee that will enable Nest Bank to provide over €9 million worth of loans on favorable conditions to about 1,300 microbusinesses in Poland over the next three years.

Earlier this month, France became the first EU Member State to benefit under EaSI from the support of the European Fund for Strategic Investments, the heart of the Investment Plan for Europe.

This guarantee will allow Initiative France to award more than €10 million in interest-free loans to more than 500 French microenterprises over the next three years.

The European Investment Fund is using its EaSI guarantee to support Initiative France in the context of its Initiative Remarquable unsecured loans intended for businesses taking an economically responsible approach and creating jobs.

Announcing the new capacity building project, EU Commissioner for Employment, Social Affairs, Skills and Labour Mobility Marianne Thyssen said in December, “Ultimately, these investments will help increase the offer and opportunities for micro-borrowers and social enterprises.”

“It responds to the needs of financial institutions that want to build up their capacity and reinforce the offer on the market,” Thyssen said. “Through this instrument, we confirm our commitment to give a boost to jobs and growth and help the most vulnerable people in the labour market.

At the signature event in Paris in December, EIB Vice-President Ambroise Fayolle said “The Juncker Plan continues to develop in France, with 46 operations signed in France so far, accounting for a total amount of €3.1 billion, which is expected to generate an additional €15.9 billion.

This new agreement with Initiative France marks an important milestone in the EIB Group’s support for small French firms,” said Fayolle. “By extending the scheme to businesses in the weakest regions, to job creators in priority districts and young student entrepreneurs, we will further develop our financing and support aims.”

The 222 platforms of the Initiative France associative network of creative financing and corporate buyers provide unsecured loans to 19,000 entrepreneurs each year.

At least 60 percent are unemployed. They are expected to create and develop over 16,000 businesses, creating more than 40,000 jobs.

The progress of 55,000 entrepreneurs is being followed, and 9,000 of them are being mentored.

Louis Schweitzer, president of Initiative France, explained, “This new support from the European Investment Fund confirms the effectiveness of the unique Initiative France model in general and of the Initiative Remarquable program in particular.  We are also very proud to be the first beneficiaries in Europe of EU support under its EaSI program.

In 2015, €176 million of unsecured loans led to over €1 billion in bank loans. These local associations, well-integrated into their local areas, have 950 staff and 16,180 volunteers, including 4,640 business mentors to support new entrepreneurs.

The combination of the mentoring, the loans, and the banking services has helped these enterprises to achieve a 88 percent survival rate over three years, compared with a national rate of 70 percent, according to the French National Institute for Statistics and Economic Studies.

EIF Chief Executive Pier Luigi Gilibert, said, “I am confident that the EaSI Capacity Building Investments Window will be instrumental in strengthening the operational and institutional capabilities of micro-credit and social finance providers.”

Capacity building is fundamental for finance providers to be able to deliver on their investment objectives in an effective and sustainable manner,” Gilibert emphasized. “I am pleased to see that EIF will support those finance providers in creating an investment friendly environment.”

Gilibert said the EaSI Capacity Building Investments Window reflects the European Commission’s “strong commitment” to launch initiatives aiming at boosting jobs, growth and investment.

Launched in June 2015, EaSI is managed directly by the European Commission. The total budget for 2014-2020 is €919,469,000 in 2013 prices.

Also, for the first time, the European Commission is helping social enterprises through investments of up to €500,000.

The European Commission is reinforcing the social dimension of the European Fund for Strategic Investments for both microfinance and social entrepreneurship. Overall, the total amount of support to these areas is expected to increase from €193 million under the EaSI program to about €1 billion, mobilizing roughly €3 billion in additional investment.

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance.

In this role, EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. EIF aims to foster EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.


Featured image: The European Commission is investing in micro-businesses to create jobs and support new entrepreneurs. (Photo by Peter Linke) Creative Commons license via Flickr

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