COP21 Business update: Companies urge now for carbon pricing as coal is still a big issue

UNFCC COP21 Paris 2015As the Paris COP21 is rapidly getting close to its conclusion, one thing is becoming clearer than ever: the role that businesses will play. The role of  the global finance world has in order to get to a substantial change, is crucial.

Basically, it is unlikely that an effective agreement will be possible without a meaningful resolution to the “question of finance”. Many actions were already taken and financial institutions say they are determined this time to deliver concrete actions to reduce greenhouse gas emissions. Let’s try to analyse how thing are going and what still the main open questions may be around the meeting rooms of the north-eastern suburb of Paris.

Climate changes and business

The World Bank last Monday declared that 26 financial institutions from developing and developed countries signed the voluntary “Principles to Mainstream Climate Action within Financial Institutions”, pledging to integrate climate considerations into their investment portfolio.

These principles lay out a clear “pathway for financial institutions to integrate climate change into their operations” with the aim to deliver “more sustainable, short and long term results, both developmentally and financially”, as stressed by Rachel Kyte, World Bank Group Vice President and Special Envoy for Climate Change.

Norway’s commitment

On the same day, Norwegian Prime Minister Erna Solberg announced plans to scale up Norway’s commitments to the Green Climate Fund. Speaking at the Paris climate conference, Prime Minister Solberg stressed the importance of climate finance and Norway’s support for the Fund.

“The Green Climate Fund is now ready for business. I am pleased to announce today that Norway will significantly increase its contributions”, she stated. “If the Fund secures verified emission reductions from deforestation and forest degradation in developing countries, we will double our contribution by 2020,” she then added.

A Green Bank Network

Like the Green Climate Fund, which opened its initial resource mobilization in October 2014, another institution gathered the attention of both media and the delegates that are working in Paris, the so-called “Green Bank Network”. Green banks basically are public entities which are created to partner and work closely with the private sector to increase clean energy investment and bring renewable energy financing into the mainstream. On December 7, six green banks and two nonprofit groups announced they are formally establishing a Network to enlarge their possibilities to bring funds to the green sector, something that has been seen as a major breakthrough as it has never been done before.

India and France’s pledge for solar energy

Moreover, a few days ago, India and France launched an International Solar Alliance to boost solar energy in developing countries. The initiative, which was launched on 30 November by Indian Prime Minister Narendera Modi and French President Francois Hollande, includes now 120 countries.

UN Secretary-General Ban Ki-moon, who attended the launch, said it must send a clear enough signal to investors to encourage the scaling up of solar and other renewable forms of energy and urged all the governments meeting in Paris to work in a spirit of cooperation and compromise to conclude an effective agreement.

Coal and the developing countries

But although the atmosphere around the temporary town of pavilions and stands in Le Bourget, Paris, is quite optimistic, some big questions are still open, or probably just one which is still the biggest. Despite many efforts and complex discussion, coal still represents the main source to generate robust economic growth and try to carry millions of people away from poverty in developing countries. All efforts to make those countries use carbon-free sources of energy must take into keen consideration that. Carbon is the key, once again.

Introducing carbon pricing

What businesses are currently discussing and asking for as a first action toward this problem is carbon pricing. Indeed the question is an old one, and it is quite simple. The idea is to make investments on low-carbon or carbon-free technologies more attractive by putting a cost on carbon use to be paid at the source. It’s basically shifting the costs to the source of the pollution, encouraging polluters to reduce emissions and invest in clean energy and low-carbon growth.

Now the introduction of a framework for favouring global carbon pricing through a system of permits, would ensure that emissions are cut with less government interference, many business players are reportedly saying, in a truly efficient way. A COP21 side event held on December 5 was focused entirely on that delicate matter. “Putting a price on carbon is essential for success in the international response to climate change”, said participants in an official statement.

“A necessary thing”

What carbon-pricing backers believe is that without a price, to be set by recognizing the damaging effects of emitting greenhouse gases, efforts to address climate change “will be inefficient and likely too slow to avoid its worst effects”, as the statement reports. Pricing carbon is “not the only thing, but a necessary thing,” underscored Ms. Kyte from the World Bank Group, involved also on the carbon pricing side. “We have to take carbon pollution out of our growth model,” she continued.

A greater space for business

All in all, after many concrete actions and the efforts Paris COP21 brought together, as described above, it seems that only a real shared plan will deliver concrete moves to tackle climate changes. So besides the fact that carbon may be the biggest problem we have, finding a common plan seems to be quite a knot as well.

In that scenario, businesses claim they haven’t had enough space in the UN-sponsored talks in Paris, where governments dominated the scene. “We need to have a greater say in this process,” Norine Kennedy, from the US Council for International Business, told the Financial Times.

Market-generated solutions

Indeed COP21 has been a huge “market place” of different interests and voices, where more than 180 countries are currently publishing climate action plans. The need of a market-inspired solution and the involvement of businesses are slowly becoming important aspects that should be considered not only toward concrete moves but also for future major events on climate changes.

“Top-down” government plans, which are always painful and complex, will only partially bring good results, both for the economy and for the planet. In the green “market place” there is always though the strong will to preserve the economic development.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

European Commission: the LED lights of your Audi A6 shall save our planet

How ‘small’ is Europe in Big Data?

Cyprus Parliament says no to blackmail

Tusk fights back while charismatic Boris goes against everybody in Brussels pushing the UK to leave the EU now or never

MWC 2016 LIVE: EC adds Brazil to partner tally

IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

The next 48 hours may change the European Union

VW emissions scandal: EU unable to protect its consumers against large multinationals

Can the national and age groups pockets of unemployment cause irreparable damages to Eurozone?

Gender Equality as a platform to improve Medicine

Russia won’t let Ukraine drift westwards in one piece

Who is responsible for public health? The tendencies and its benefits –or not– on Health Education around the world

The Commission offers exit from the EU budget stalemate

Trade protectionism and cartels threaten democracy

Trump ostracized by his party and world elites but still remains in course; how can he do it?

Europe provides financial support to African countries while Turkey denies to change terrorism laws jeopardising the EU deal

Investment, not debt, can kick-start an entrepreneurial Europe

Tsipras bewildered with Berlin’s humiliating demands; ECB expects political sign to refinance the Greek banks

IMF to teach Germany a Greek lesson

EU decides “in absentia” of civil society

A Sting Exclusive: “Infrastructure can lay the groundwork for the Sustainable Development Goals” by Mr Fulai Sheng, UN Environment Senior Economist

World Retail Congress announces Dubai 2016 Hall of Fame Inductees

Fake news and Freedom of Press: can the EU ever find the fine line?

ECB to play down IMF’s alarms for deflation danger in the EU

G20 to Germany: Abandon miser policies

Eurozone stuck in a high risk deflation area; Draghi expects further price plunge

Real EU unemployment rate at 10.2%+4.1%+4.7%: Eurostat Update

Climate negotiations on the road to a strong Paris agreement rulebook

EU continues targeting on Chinese steel imports instead of the revival of its own economy

The great challenge of the 21st century is learning to consume less. This is how we can do it

EU regional differences betray an unjust arrangement

It’s Brexit again: Nigel Farage launches a personal campaign to lead the ‘No’ front

Draghi drafts a plan to donate more money to bankers, the era of ‘money for nothin’ is flourishing

Future Forces Forum: Prague will be hosting the most important project in the field of Defence and Security

Whose interests are protected by the new Mortgage Directive?

EU Trade Ministers come together in a desperate attempt to save TTIP

JADE Spring Meeting 2017– day 1: Excellence awards, panel discussion, keynote speeches

The EU can afford to invest trillions in support of employment

EU takes again positive action on migration crisis while Turkey asks for dear favors in exchange for cooperation

A new world that demands new doctors in the fourth industrial revolution

Bankers don’t go to jail because they are more equal than us all

Neelie Kroes at the European Young Innovators Forum: Unconvention 2014

Energy Union: EU’s effort towards a cleaner climate with integrated energy market

Markets are more sensitive to Greece’s woes than Merkel

Trump badly cornered at home by agribusiness and steel consumer lobbies: Trade

G20 LIVE: “This was not an attack against France, this was an attack against the universal human values!”, EU President Juncker cries out from G20 in Antalya Turkey

G20 LIVE: “Our response needs to be robust…otherwise we will only find the fire we are trying to put out”, UN Secretary General Ban Ki-moon just lit up G20 in Antalya Turkey

The inhumane face of crisis mirrored in numbers

European Court of Justice to Google: It is #righttobeforgotten but not #righttoberemembered

Yellen and Draghi tell Trump and markets not to expedite the next crisis

Berlin cannot dictate anymore the terms for the enactment of the European Banking Union

Eurozone: Statistics don’t tell the whole story

Is Britain to sail alone in the high seas of trade wars?

The Sichuan Province of China presents its cultural treasure to the EU

EU’s Finance Ministers draft plan to raise tax bills of online giants like Google and Amazon

ECB’s unconventional monetary measures give first tangible results

COP21 Breaking News: “There is an ecological debt that the world needs to pay back to Africa”, French President Francois Hollande promises 2 Billion euros by 2020 from Paris

Can Eurozone’s uncertain growth answer the challenges that lie ahead?

Commission: Raising the social issues that can make or break the monetary union

G20 LIVE: World Leaders in Turkey for G20 Summit. Global Economy will be discussed in Antalya

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s