Posts

Cities Seek US$1 Trillion for Low-Carbon Construction

C40ForumWomen

Women at the C40 Financing Sustainable Cities Forum, from left: Naoko Ishii, CEO and chairperson of the Global Environment Facility; Sue Tindal, chief financial officer at Auckland Council; Val Smith, director, Corporate Sustainability at Citi; Shirley Rodrigues, Deputy Mayor of London for Environment and Energy.

By Sunny Lewis

LONDON, UK, April 12, 2017 (Maximpact.com News) – The world’s largest cities are not sitting around waiting for national governments to hand them a climate-safe future. They are taking the initiative to build their own low-carbon opportunities.

To address climate change arising from urban development, there are over 3,000 low-carbon infrastructure projects in the planning stages across a network of 90 of the world’s megacities known as C40 Cities .

Cities have reported costs for just 15 percent of these projects, but even this small percentage amounts to US$15.5 billion in required investment.

There are 90 megacities in the C40 Cities network. They include: Durban, Nairobi, Lagos, and Addis Ababa in Africa; Delhi, Hong Kong, Bangkok, and Tokyo, in Asia; Auckland, New Zealand in Oceana; Amman, Jordan in the Middle East; Copenhagen, Paris, Rome, London, Berlin, Athens and Amsterdam in Europe; Bogota, Rio de Janeiro, Sao Paulo, and Buenos Aires in South America; and in North America, Houston, New York, San Francisco, Washington, DC, and Vancouver.

Roughly one in every 12 people in the world lives in a C40 city, and these 90 cities generate about one-quarter of the world’s wealth, as expressed by GDP, or Gross Domestic Product.

These numbers highlight an enormous opportunity for collaboration between cities and the private sector to invest in sustainable projects, and also the need to accelerate investment and development in sustainable infrastructure to deliver a climate-safe future.

Rachel Kyte, chief executive, Sustainable Energy for All, an initiative of the United Nations Secretary-General, has said, “Buildings account for one-third of global energy use and with cities growing rapidly, there’s an urgent need for partnerships that help cities and citizens use energy better.”

Recent C40 research, contained in the report “Deadline 2020,” estimates that C40 cities need to spend US$375 billion over the next four years on low carbon infrastructure in order to be on the right track to meet the ambition of the Paris Agreement on Climate that took effect in November 2016.

Under this agreement, world governments pledged to keep Earth’s temperature increase to less than two degrees Celsius above pre-industrial levels.

Deadline 2020” estimates before 2050, C40 cities will need to invest over US$1 trillion on new climate action and in renewing and expanding infrastructure to get on the trajectory required to meet the goal of the Paris Agreement.

But how are the megacities to attract this mega-investment?

On April 4, the C40 Financing Sustainable Cities Forum gathered over 200 delegates from cities, investors, national governments, academics, private sector experts, civil society groups and technology providers to identify the key barriers in financing sustainable urban infrastructure.

The Forum was hosted in London by the C40 Cities Climate Leadership Group and the Greater London Authority, with the support of the Citi Foundation and World Resources Institute’s Ross Center for Sustainable Cities.

City action can deliver 40 percent of the Paris goal,” Mark Watts, executive director, C40 Cities, said at the Forum.

Participants looked at unlocking finance for low-carbon investments in cities. They agreed that cities must improve project development information in order to accelerate climate action, a conclusion articulated in a new report, “The Low Carbon Investment Landscape in C40 Cities.

They recognized that accessing and attracting finance are some of the biggest barriers that mayors face in delivering their climate change plans, especially in developing countries and emerging economies with a lack of expertise in securing investment.

To help solve this problem, the C40 Cities Finance Facility was launched during COP21, the 2015 United Nations Climate Change Conference in Paris, where the Paris Agreement on Climate was approved by world governments.

The C40 Cities Finance Facility will provide US$20 million of support by 2020 to help unlock and access up to US$1 billion of additional capital funding, by providing the connections, advice and legal and financial support to enable C40 cities in developing and emerging countries to develop more financeable projects.

For developing markets, public-private partnerships are key to getting sustainable projects off the ground,” said Val Smith, director, Corporate Sustainability at Citi.

But the financial industry tells C40 Cities that they are experiencing a lack of corporate understanding of the low carbon technology being deployed.

They lack understanding of the financing models cities use to fund low carbon infrastructure and, in addition, financiers are seeing inadequate capacity within city governments to form partnerships and collaborate on sustainable infrastructure projects.

CDP’s Matchmaker program aims to overcome these challenges by engaging cities early in the project development process and standardizing how these projects are disseminated to the market.

CDP, formerly the Carbon Disclosure Project, is a not-for-profit that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

Since the Paris Agreement was adopted in 2015, CDP says they have seen a 70 percent increase in cities disclosing their carbon emissions.

CDP says this year’s disclosures reveal that many cities are actively looking to partner with the private sector on climate change. Cities highlighted a total 720 climate change-related projects, worth a combined US$26 billion, that they want to work with business on.

Matchmaker will publicize these low-carbon infrastructure projects to CDP’s growing number of investor signatories that currently represent over US$100 trillion in assets.

And these are by no means all of the opportunities for sustainable investment in urban low-carbon construction.

On April 4, at a meeting of the Sustainable Energy for All Forum in New York City April 3, five new cities and districts committed to improve their buildings by adopting new policies, demonstration projects and tracking progress against their goals.

They joined the Building Efficiency Accelerator (BEA), a public-private collaboration that now includes over 35 global organizations and 28 cities in 18 countries.

The cities and districts joining the BEA are Kisii County, Kenya; Merida, Mexico; Nairobi City County, Kenya; Pasig City, Philippines; and Ulaanbaatar, Mongolia.

World Resources Institute (WRI) leads the BEA, convening businesses, nonprofits and multilateral development organizations to support local governments in implementing policies and programs that make their buildings more efficient.

Jennifer Layke, global director, Energy Program, World Resources Institute, encapsulated the push for sustainable construction, saying, “People want schools, homes, and offices that are healthy and comfortable without the burden of high energy costs due to inefficiency. Prioritizing efficiency in buildings can save money and reduce pollution. Our new Building Efficiency Accelerator partners are signaling their intent to avoid the lock-in of decades of inefficient development.

Supporting these new members are ICLEI – Local Governments for Sustainability, the India Green Building Council, the Kenya Green Building Society, Pasig and WRI Mexico.

We must transform our urban systems to meet the challenges of sustainability and climate,” said Naoko Ishii, CEO and Chairperson of the Global Environment Facility, a funding organization. “Through this partnership, we can provide awareness raising, policy advice and technology transfer directly to sub-national governments ready to take action.”

Follow C40 Cities on Twitter


Featured Image: Duke Energy Center in Charlotte, North Carolina is a LEED Certified Platinum building, the highest sustainability rating awarded by the U.S. Green Building Council. (Photo by U.S. Green Building Council) Posted for media use

Billboard- 970x250-min-min

Create sustainable construction  projects through Maximpact’s Advisory and discover project services for all types of business and organizations.  Find a sustainable construction expert for your projects through Maximpact consulting network.  Contact us at info(@)maximpact.com and tell us what you need.

US$100 Billion to Finance Climate Triage

climatesignmalawi

Clever Kanga works for the Foundation for Irrigation and Sustainable Development in the central African country of Malawi, working to install solar powered irrigation projects, April 2016. (Photo by Trocaire) Creative Commons license via Flickr.

By Sunny Lewis

WASHINGTON, DC, November 3, 2016 (Maximpact.com) – Finance is always a hot button issue at the UN’s annual climate negotiations, and this year’s 22nd Conference of the Parties to the UN Framework Convention on Climate Change, COP22, will focus even more intently on financing – this time to support the first global greenhouse gas limitation pact, the Paris Agreement on Climate Change.

At COP22 in Marrakech, Morocco, taking place November 7-18, nations are expected to continue strengthening the global response to the threat of climate change, with the central focus placed on enhancing ambition, promoting implementation and providing support, especially financial support.

The process is energized by the unexpectedly rapid entry into force of the Paris Agreement on November 4, just before the opening of COP22.

The Paris Agreement was adopted at the UN climate conference in December 2015. To enter into force, at least 55 Parties accounting for at least 55 percent of global greenhouse gas emissions were required to join the pact, which enters into force 30 days later.

On October 5, those thresholds were reached. Countries joining the Agreement include the biggest and smallest greenhouse gas emitters, as well as the richest and the most vulnerable nations.

The Paris Agreement is clear that all finance flows – both public and private – must become consistent with a low-emission and climate-resilient development path.

Several new studies make clear that meeting the agreement’s central goal of holding temperature rise to well below 2 degrees C (3.6 degrees F), and aiming for 1.5 degrees C (2.7 degrees F), requires quickly shifting investments from fossil fuels and other high-emissions activities towards clean energy, green infrastructure and climate resilience.

In the United States, 2016 is the first year that investment in renewable energy sources has outpaced investment in fossil fuels, said John Morton, director for energy and climate change for the National Security Council, speaking to reporters today on a conference call.

At COP 22 in Marrakech, work to develop the rules that deliver on this goal continues.

Here are five key climate finance issues to watch as outlined by the World Resources Institute, a global research organization that spans more than 50 countries, with offices in Brazil, China, Europe, India, Indonesia, Mexico, and the United States, where it is headquartered in Washington, DC.

1. Pathway to US$100 Billion

In Paris last December, developed countries were asked for a concrete roadmap for mobilizing US$100 billion in climate finance for developing countries by 2020. This roadmap – which can help build trust that developing countries will be supported in taking urgent climate action – is now being finalized, with the aim of presenting it at a “pre-COP” gathering of ministers next week.

In Copenhagen in 2009 and in Cancún in 2010, developed countries committed to jointly raising $100 billion annually from 2020 to 2025 to help developing countries cope with climate change by building low carbon and climate resilient economies. This pledge was re-affirmed in the Paris at COP21.

This sum may come from bilateral or multilateral, public or private sources, including innovative financing, for example, the French contribution to the financial transaction tax.

Public financing may take several forms: multilateral funds such as the Green Climate Fund; multilateral or regional institutions such as the World Bank; government contributions; and bilateral institutions such as the Agence Française de Développement, the French Development Agency.

The $100 billion in funding should not be confused with the Green Climate Fund; only part of this sum will pass through the Fund.

On October 17, developed countries released a Roadmap for how they will mobilize climate finance between now and 2020.

The Roadmap “aims to provide increased predictability and transparency about how the goal will be reached, and sets out the range of actions developed countries will take to meet it.

An analysis of the Roadmap by the Organization for Economic Cooperation and Development (OECD) finds that by 2020, developed countries are expected to have mobilized between $90 billion and 92 billion of climate finance, depending on how effective public finance is in mobilizing private finance.

By comparison, the overall total for mobilized public and private finance in 2014 was $62 billion.

The OECD analysis predicts that the $100 billion goal will be reachable for 2020, due to increased leverage ratios for private finance.

2. What Counts?

Determining progress towards the $100 billion goal is tricky, say WRI analysts, since countries have never agreed on what counts as climate finance.

After considering this issue at climate negotiations earlier this year, countries agreed to hold a workshop in Marrakech to advance progress on the Paris commitment to develop modes for accounting of climate finance.

Consistency in finance reporting will help all countries to accurately track progress on commitments and ensure improved quantity and quality of climate finance flows.

3. Rules for Reporting Finance

Countries will be developing formats for how finance will be reported, based on these reporting mandates:

  • Developed countries must report projected levels of finance they will provide to developing countries and finance they already have provided to developing countries. Other countries providing finance are encouraged to report voluntarily.
  • Developing countries should report on finance needed and received.

These requirements build on earlier rules, but have the potential to be more comprehensive and systematic. Countries need to ensure the reports provide useful information for the global stocktaking process under the Paris Agreement that will assess progress every five years.

4. Scaling Up Adaptation Finance

The Paris Agreement called for a balance between support for adaptation and mitigation, but there remains some way to go.

Adaptation refers to making changes in the way humans respond to changes in climate.

Mitigation refers to controlling emissions of greenhouse gases so that the total accumulation is limited.

Developed countries’ most recent reporting to the UN shows that 14 percent of bilateral funding went to adaptation in 2014. An additional 17 percent went to both adaptation and mitigation.

In Paris, countries called for increasing adaptation finance. A clear commitment for how adaptation funding will be increased up to 2020 would bolster confidence that the most vulnerable countries’ most urgent needs will be supported.

Proposed options include a 50:50 allocation between mitigation and adaptation, a doubling of the current share of adaptation finance and a doubling of the amount of adaptation finance from current levels.

5. Adaptation Fund, Renewed?

One mechanism for channeling adaptation finance to developing countries is the Adaptation Fund, which was created at the 2001 COP in Marrakech, to serve the Kyoto Protocol. With the Kyoto Protocol’s commitment period ending in 2020, the Fund’s future is uncertain.

Countries are considering whether and how the Adaptation Fund can support the Paris Agreement.

The Adaptation Fund has a good niche in supporting relatively small-scale adaptation projects and prioritizing direct access to funding. It can provide money directly to national institutions in developing countries, without going through international intermediaries.

Creating a mandate for the Adaptation Fund to serve the Paris Agreement in Marrakech would give it a new lease on life to continue supporting vital adaptation efforts around the world.

What is Being Done Today?

Financial institutions have already been busy finding and allocating funding to climate projects.

The two operating entities of the UNFCCC Financial Mechanism, the Green Climate Fund (GCF) and the Global Environment Facility (GEF) approved more than two dozen projects in recent meetings.

Water provision in Ali Addeh camp in Djibouti. A combination of high food prices, water scarcity, climate change and reduced pasture has increased food insecurity. This year’s El Niño has led to even dryer weather. Humanitarian funding from the European Commission provides refugees with access to clean water and sanitation as well as shelter, protection, nutrition and health care. May 2016 (Photo by European Commission DG ECHO) Creative Commons license via Flickr.

The GCF Board approved funding proposals for 10 projects, totaling US$745 million, and the GEF Council approved its Work Program, comprising 16 project concepts and three programmatic frameworks, with total resources amounting to US$302 million.

In addition, the Adaptation Fund Board approved two new projects totaling US$7 million,

World Bank Head Calls for Slowing Down Coal Finance

Speaking at the World Bank-International Monetary Fund Annual Meetings 2016 Climate Ministerial meeting in October, World Bank Group President Jim Yong Kim called on ministers to accelerate the transition to low carbon power sources, noting that the Paris Agreement goals cannot be met if current plans for coal-fired stations are implemented.

Kim called for concessional finance that is well targeted and “follows the carbon,” is leveraged and blended to crowd in the private sector, and is available quickly, at scale and easily deployed.


Billboard- 970x250-min-min

Ashoka Honored for Human Capital Management

By Sunny Lewis

ASHOKAARLINGTON, Virginia, June 16, 2016 (Maximpact.com News) – Ashoka, the world’s largest network of social entrepreneurs, has been recognized as the winner of the Human Capital Management category in FinancialForce’s 360 Customer Excellence Awards this year.

Known formally as Ashoka Innovators for the Public, nearly 3,000 Ashoka Fellows in over 70 countries are putting their system-changing ideas into practice on a global scale.

Ashoka Fellows are social entrepreneurs who have innovative solutions to social problems and the potential to change patterns across society.

Founded by Bill Drayton in 1980, Ashoka has provided start-up financing, professional support services, and connections to a global network across the business and social sectors, and a platform for people dedicated to changing the world.

Ashoka takes credit for launching the entire field of social entrepreneurship and has activated multi-sector partners throughout the world to look at new ideas to solve social problems.

The Human Capital Management (HCM) category of these awards recognizes FinancialForce customers, such as Ashoka, who have demonstrated innovation and success in human capital management, including onboarding, recruiting, benefits management, records management, talent management, and driving employee engagement while leveraging the power of FinancialForce HCM and the Salesforce Platform.

Based in San Francisco with offices in Canada and Europe, FinancialForce works to upgrade the world of back-office applications by building new “customer-centric” business applications that help companies generate profitable growth.

Human Capital Management is an approach to employee staffing that perceives people as assets, or human capital, whose current value can be measured and whose future value can be enhanced through investment.

 Human Capital Management is central to FinancialForce, because people are the company’s core value.

Jeremy Roche FinancialForce CEO and one of the Customer Excellence Awards judges, said, “When we launched FinancialForce.com in 2009 we had big dreams of becoming a top player in the enterprise cloud application space. Those dreams have become reality and we’ve done it as a team every step of the way. I have never been part of a more creative, collaborative, and spirited team that can make the long, hard days seem easy.

 Ashoka received the same award in 2014.

Ashoka is known globally as an innovative leader in the field of social entrepreneurship and social change,” said Ashoka President Diana Wells.

This award is recognition that our internal innovations and systems are also leading the way,” said Wells. “We are grateful to FinancialForce for this award.

Ashoka was honored on May 11 at Community Live in Las Vegas, FinancialForce’s fourth annual and largest customer conference to date. The awards recognized outstanding customer achievements across all FinancialForce solution lines.

Congratulations to Ashoka and all of this year’s 360 Customer Excellence Award winners and finalists,” said Adrian Ivanov, chief customer officer at FinancialForce. “Hearing the big picture visions and successful implementation stories from customers worldwide throughout the awards process has been inspiring.

The judges selected Ashoka for its success metrics with FinancialForce HCM, profiled in several case studies.

First, Nucleus Research, an investigative research firm, calculated that Ashoka realized nearly 250 percent return on its investment with FinancialForce from 2013-2015.

Also, Constellation Research, a disruptive technology market research firm, highlighted Ashoka’s swift 90-day implementation and worldwide adoption of the FinancialForce HCM software.

 Operations Director for Global Talent at Ashoka, Asha Aravindakshan, was a presenter at Community Live in the HCM Customer Showcase: Learn, Share, Exchange Best Practices. She also participated in the inaugural meeting of the FinancialForce HCM Customer Advisory Board.

The stories of a few of the Ashoka Fellows demonstrate the nature and scope of the organization’s work.

In Nicaragua, Ashoka Fellow Sarah Otterstrom works with the organization Paso Pacifico. Collaborating with the government, private and citizen sectors, she is involving the citizen sector in conserving Nicaragua’s biologically diverse dry tropical forest. She has adapted the concept of environmental corridors so it continues to support biodiversity, and also integrates human thriving as a part of ecosystem health.

In India, Ravi Agarwal works with the group Srishto Toxics Link. He is changing the urban waste management system in India by involving local communities and the informal sector of rag pickers in waste disposal, and by advocating for a cleaner materials policy in industry.

In Nepal, Ashoka Fellow Megh Ale works with the Nepal River Conservation Trust transforming the way people understand the value and economic potential of Nepal’s rivers. Ale is saving the rivers of Nepal through ecotourism, conservation, and cleanup. He and other like-minded river guides are creating a new standard for eco-tourism in Nepal that protects and advocates for Nepal’s river ecosystems

Now, seven years after it was founded, Ashoka’s mission has evolved beyond catalyzing individual entrepreneurs to enabling an “everyone a changemaker” world. This means “equipping more people, including young people, with the skill set and a connection to purpose so that they can contribute ideas and effectively solve problems at whatever scale is needed in their family, community, city, workplace, field, industry, country.

Drayton, Ashoka founder and CEO, says, “Social entrepreneurs are not content just to give a fish, or teach how to fish. They will not rest until they have revolutionized the fishing industry.

AshokaStorytellingWorkship

During the first five-day storytelling workshop at the African School of Excellence in Johannesburg, South Africa, students learned the basic skills of script writing, storyboarding, video making, vlogging, and video interviewing to be able to tell the changemaker stories of their school and their community. (Photo by lettera27) www.lettera27.org Creative Commons License via flickr