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COP23 Fertilizes Climate-Smart Agriculture

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COP23 leaders, from left: UNFCCC Executive Secretary Patricia Espinosa of Brazil; President Emmanuel Macron, France; Frank Bainimarama, prime minister of Fiji and COP 23 president; Chancellor Angela Merkel, Germany; and UN Secretary-General António Guterres at the opening of the High-Level Segment of the conference, November 15, 2017 (Photo courtesy Earth Negotiations Bulletin) Posted for media use

By Sunny Lewis

BONN, Germany, November 21, 2017 (Maximpact.com News) – New commitments and initiatives in the agriculture and water sectors were announced as nearly 200 countries gathered at the United Nations Climate Conference (COP23) hosted by the government of Fiji in Bonn, November 6-17.

Delegates made concrete progress on turning the historic 2015 Paris Agreement into action on the ground across the world, ahead of next year’s UN climate conference in Katowice, Poland.

COP23 delegates aimed at motivating greater climate action by public and private stakeholders as the Paris Agreement, adopted in 2015, enables countries to combat climate change by limiting the rise of global temperature below 2 degrees Celsius and strive not to exceed 1.5 degrees Celsius higher than pre-industrial levels.

About one degree of that rise has already happened, increasing the pressure on governments and the private sector to progress further and faster to cut the greenhouse gases responsible for global warming.

For the first time in the history of UN climate negotiations, governments reached an agreement on agriculture that will help countries develop and implement new strategies to both reduce emissions from agriculture and build resilience to the effects of climate change.

“Agriculture is a key factor for the sustainability of rural areas, the responsibility for food security and its potential to offer climate change solutions is enormous,” said Christian Schmidt, Germany’s federal minister of food and agriculture.

Investing more quickly and broadly in agricultural climate action and to support the sustainable livelihoods of small-scale farmers will unlock much greater potential to curb emissions and protect people against climate change, sector leaders and experts said.

New COP23 initiatives include a US$400 million fund established by the Government of Norway and the corporation Unilever for public and private investment in business models that combine investments in high productivity agriculture, smallholder inclusion and forest protection.

The European Investment Bank will provide US$75 million for a new US$405 million investment program by the Water Authority of Fiji. The plan will strengthen resilience of water distribution and wastewater treatment following Cyclone Winston, the world’s second strongest storm ever recorded, which hit Fiji in February 2016.

The Green Climate Fund (GCF) and the European Bank for Reconstruction and Development signed up to free US$37.6 million of GCF grant financing in the US$243.1 million Saïss Water Conservation Project to make Moroccan agriculture more resilient.

The nonprofit World Resources Institute announced a landmark US$2.1 billion of private investment to restore degraded lands in Latin America and the Caribbean through Initiative 20×20.

“Climate change is a fundamental threat to the Sustainable Development Goal 2 that aims to end hunger, achieve food security and improve nutrition,” said José Graziano da Silva, director-general of the UN’s Food and Agriculture Organization (FAO)  at a high-level event on hunger at the conference.

“To achieve SDG2 and effectively respond to climate change, we require a transformation of our agriculture sectors and food systems,” he said.

According to FAO’s “State of Food Security and Nutrition in the World 2017” report, hunger has grown for the first time in over a decade, mainly due to conflicts and climate change. An estimated 815 million people are now hungry.

Extreme climate impacts come down hard on small-scale farmers and pastoralists as well as fishing and forest communities, who still provide the bulk of the planet’s food.

Supporting these communities with innovative solutions to reduce their emissions and protect their communities meets many of the objectives of every one of the 17 Sustainable Development Goals.

Over 70 percent of the world’s extreme poor live in rural areas. They are also the most vulnerable to hunger and malnutrition, natural resource scarcity, conflict, and climate impacts.

“The rural poor are part of a comprehensive response to climate change,” said da Silva. “They are key agents of change who need to be strengthened in their roles as stewards of biodiversity, natural resources and vital ecosystem services.”

Requests to direct more resources to the agriculture sector as a key strategy to meet the goals of the Paris Climate Change Agreement and the 2030 Agenda for Sustainable Development were made during Agriculture Action Day November 10.

“Countries now have the opportunity to transform their agricultural sectors to achieve food security for all through sustainable agriculture and strategies that boost resource-use efficiency, conserve and restore biodiversity and natural resources, and combat the impacts of climate change,” said René Castro, FAO assistant-director general.

In the livestock sector, for example, FAO estimates that emissions could be readily reduced by about 30 percent with the adoption of best practices.

At COP23, the FAO released a new “Sourcebook on Climate-Smart Agriculture,” which recommends scaling up public and private climate finance flows to agriculture, spurring public-private partnerships, strengthening a multi-sector and multi-stakeholder dialogue, investing in knowledge and information, and building capacity to address barriers to climate action.

The book features knowledge and stories about on-the-ground projects to guide policymakers and program managers to make the agricultural sectors more sustainable and productive, while contributing to food security and lower carbon intensity.

The COP23 meeting agreed that land needs to be managed in ways to increase soil carbon, particularly in grasslands, and that robust protocols for assessing and monitoring carbon stocks need to be developed with stakeholders.

Rehabilitating agricultural and degraded soils can remove up to 51 billion tonnes of carbon from the atmosphere, according to some estimates.

For the livestock sector, FAO estimates that emissions could be readily reduced by about 30 percent with the adoption of best practices.

Tom Driscoll, director of conservation policy with the U.S. National Farmers Union, says, “Farming is one of the few professions with the ability to not only reduce ongoing greenhouse gas emissions, but to also remove existing greenhouse gases from the atmosphere. National Farmers Union supports policies and programs that maximize agriculture’s GHG elimination potential by offering value to farmers for either climate-smart or emissions-reducing and carbon-sinking production and conservation practices.”

Cap-and-trade programs, which limit ongoing emissions from major sources of greenhouse gas emissions, are one means of offering farmers value for climate-smart practices.

Cap-and-trade programs can drive emissions reductions where they can happen in the most cost-effective manner, and farmers can often achieve emissions reductions and sequester atmospheric greenhouse gases for less money than the emitters these programs primarily regulate, says Driscoll on the NFU website.

The state of California has implemented a cap-and-trade program that allows for the creation and transfer-for-value of offset credits that meet regulatory criteria. Regulated entities may meet up to eight percent of their triennial compliance requirements by purchasing these credits.

In California, each credit must be quantified using a compliance offset protocol approved by the California Air Resources Board. Currently, ARB will approve credits some U.S. farmers create by capturing and destroying methane from manure management systems.

The Climate and Clean Air Coalition (CCAC), an organizer of COP23’s Agriculture Action day, announced that the Coalition will work in the next few years to create the conditions for greater agricultural climate action.

The voluntary partnership of more than 100 governments, intergovernmental organizations, businesses, scientific institutions and civil society organizations aims to help give countries the confidence to set realistic yet ambitious targets through the next revision of their national climate plans – the Nationally Determined Contributions.

“Agriculture is a large source of powerful greenhouse gases like methane and other short-lived climate pollutants but has great potential to store carbon and reduce greenhouse gases in our lifetime, that’s why we support and advocate for countries to improve their livestock emissions inventories,” said Helena Molin Valdes, head of the CCAC Secretariat.

CCAC partners signed onto the Coalition’s Bonn Communiqué which prioritizes initiatives to reduce methane and black carbon emissions from agriculture and municipal solid waste.

These initiatives support broader efforts to reduce air pollution, end hunger, and build sustainable cities and communities, while helping to limit global warming.

James Shaw, New Zealand Minister for Climate Change, said he was pleased with the Communiqué’s focus on agriculture as it was a large source of his country’s greenhouse gases.

“We hope this encourages partners to develop policies to reduce emissions from agriculture, while at the same time improving the productivity, resilience and profitability of farmers,” said Shaw.

Other agriculture-based solutions for addressing climate change were also presented at COP23. Discussions involved people from governments, civil society, the private sector, small scale and young farmers centered on livestock, traditional agriculture systems, water, soil, food loss and waste, and integrated landscape management.

Among the recommended actions and initiatives were to:

  • Scale up public and private climate finance flows to agriculture, and use them in a catalytic manner. Climate finance flows continue to favor mitigation over adaptation, and focus overwhelmingly on energy systems and infrastructure. These imbalances should be addressed.
  • Incentivize public-private partnerships. Strong dialogue and collaboration between the public and private sectors is key to ensure alignment between public policy and private sector investment decisions in agriculture and throughout the entire food system.
  • Strengthen a multi-sector and multi-stakeholder dialogue towards more integrated approaches to landscape management. This will require enhanced coordination of policy and climate action across multiple public and private entities.
  • Invest in knowledge and information. Additional analyses are needed to better identify the institutional barriers and market failures that are inhibiting broader adoption of climate-resilient and low-emissions agricultural practices in individual countries, regions and communities.
  • Build capacity to address barriers to implement climate action. Agricultural producers require additional capacities to understand the climate risks and vulnerabilities they face, and respond accordingly.

In the water sector, most national climate plans with an adaptation component prioritize action on water, yet financing would need to triple to US$295 billion per year to meet such targets, said experts at COP23.

“Sustainable use of water for multiple purposes must remain a way of life and needs to be at the center of building resilient cities and human settlements and ensuring food security in a climate change context,” said Mariet Verhoef-Cohen, president of the Women for Water Partnership.

The international water community co-signed what it called a “nature based solution declaration” to encourage the use of natural systems in managing healthy water supplies.

Around 40 percent of the world’s population will face water shortages by 2050, accelerating migration and triggering onflict, while some regions could lose up to six percent of their economic output, unless water is better managed, warned Verhoef-Cohen.

She said, “Involving both women and men in decision making and integrated water resources initiatives leads to better sustainability, governance and efficiency.”


2-DAY GRANT

Featured Image: G.H. MUMM champagne 2017 harvest in champagne vineyard near Verzenay, France, September 7, 2017 (Photo by Intercontinental Hong Kong) Creative Commons license via Flickr

Green Grow the Climate Awareness Bonds

By Sunny Lewis

LUXEMBOURG, October 29, 2015 (Maximpact News) – The European Investment Bank is the first issuer to link its individual green bonds to the projects they finance for the sake of transparency and accountability ahead of the Paris climate talks.

As the planet warms, growing cities and developing countries need airports, roads, buildings, water systems and energy generation that can withstand rising temperatures and extreme weather.

Green bonds, called Climate Awareness Bonds or CABs, are a new and increasingly popular source of climate-friendly funding for these expensive projects.

Green bonds were created to increase funding by accessing the $80 trillion bond market and expanding the investor base for sustainable projects. They are dedicated exclusively to climate mitigation and adaption projects, and other environmentally beneficial activities.

The EU’s nonprofit long-term lending institution, the European Investment Bank (EIB), the world’s largest issuer of green bonds, has just announced that it is enhancing the transparency of its reporting on Green Bonds by showing bondholders precisely what their money does.

The bank is going this direction to be in step with the Paris Climate Summit set for November 30 through December 11. There, world leaders will sign a legally-binding universal agreement to limit global warming to 2 degrees Celsius above pre-industrial levels.

Bertrand de Mazières, director general of finance, European Investment Bank, said, “Ahead of the Paris climate conference, COP 21, EIB is supporting EU’s leadership in climate policy through innovation in the green bond market.”

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“Green bond issuance has grown substantially, and has the potential to contribute significantly to addressing the 2 degree Celsius target,” said de Mazières.

Transparency and accountability are key themes of the European Union’s position for the Paris climate conference, as adopted by the EU Council on September 18.

“The Paris Agreement must provide for a robust common rules-based regime, including transparency and accountability rules applicable to all Parties…” the EU Council declared.

In harmony with this declaration, earlier this month the EIB extended its transparency effort by reporting on the allocations of proceeds from individual CABs to individual projects, beginning with allocations made in the first half of 2015.

De Mazières explained why, saying, “Granular transparency on the allocation of the CAB-proceeds helps this process by bringing investors more precise insights and promoting best practice.”

The disclosure of the allocation of individual CAB-proceeds to individual projects establishes a direct link between the two.

EIB can deliver this level of information due to an upgrade of its internal procedures and IT-infrastructure following extensive due diligence in 2014 and 2015.

Today, the bank records CAB-eligible disbursements and allocates CAB-proceeds to them on a daily, first-in first-out basis.

This enables detailed monitoring and reporting of allocations, and helps to complete the set of information available to investors.

Eila Kreivi, EIB’s director and head of Capital Markets, said, “Investors are increasingly eager to receive clear information on the use of proceeds and the impact of eligible projects. EIB’s launch of detailed reporting in these areas this year has established an important reference.”

“Transparent management and reporting are essential to further grow the green bond market,” she said. “At the same time, one must be careful not to overload issuers with administrative hurdles. Striking the right balance will be a key challenge for the market.”

EIB’s first Climate Awareness Bond pioneered the green bond segment in 2007 and the EIB is the largest issuer of Green Bonds to date.

In September 2014, together with other multi-lateral development banks, the EIB committed to maintaining a developmental role to spur further sustainable growth of the green bond market.

In response to a recommendation in the Green Bond Principles “to help establish a model for impact reporting that others can adopt and/or adapt to their needs,” the African Development Bank, International Bank for Reconstruction and Development and the International Finance Corporation (IBRD) have joined EIB in a first harmonization proposal for bonds that fund renewable energy and energy efficiency projects. It is now being circulated for discussion.

Meanwhile, the EIB is popularizing its CABs across the world, entering the Canadian market for the first-time this week.

The Climate Change Support Team, working for United Nations Secretary General Ban Ki-moon has described green bonds as very attractive to institutional investors, with demand for green bonds much larger than the supply.

EIB’s issuance of €2.7 billion equivalent in Green Bonds this year to date has brought total CAB issuance to over €10 billion and confirms EIB’s position as the world’s largest issuer of Green Bonds.


Award-winning journalist Sunny Lewis is founding editor in chief of the Environment News Service (ENS), the original daily wire service of the environment, publishing since 1990.

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Slide Show images: a) Gemasolar, a 15 MW solar power tower that uses molten salt for receiving and storing energy, is located in the city of Fuentes de Andalucia, Seville, Spain. (Photo by Markel Redondo/Greenpeace under creative commons license via Flickr). b) Wind turbines generate electricity at Europoort, an area of the Port of Rotterdam and the adjoining industrial area in The Netherlands.  (Photo by Frans de Wit under creative commons license via Flickr)
Image 01: Bertrand de Mazières, director general of finance, European Investment Bank (Photo by Crédit Agricole, sometimes called the Green Bank, a French network of cooperative and mutual banks)