Category: Previous Issues Articles

4 Years is Long Enough! Time for Loss and Damage Finance

From the devastating Atlantic hurricane season to catastrophic flooding across South Asia, 2017 has delivered harrowing reminders of the human cost and grave injustice of climate change. Loss and damage from climate change is not a future hypothetical but a growing current reality, affecting millions around the world.

 

AOSIS, LDCs, G77, Africa Group, AILAC – we heard you loud and clear at the opening of SBI and the past days’ consultations and couldn’t agree more! We simply cannot let this COP – the ‘Pacific COP’ – go by without real progress in action and support on loss and damage.

 

First, it is long past time to elevate loss and damage within the negotiations. This means making it a permanent agenda item of the subsidiary bodies and under the CMA negotiation process. We must link work on loss and damage to all elements of the Paris Agreement, including the Global Stocktake and the Transparency Framework, in a clever but effective way. Permanent agendas are critical because other than annual reports of the Executive Committee on its work, there is currently no way for Parties to oversee the larger Warsaw International Mechanism on Loss and Damage (WIM) aspirations or the achievement of Article 8 of the Paris Agreement.
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Meet the U.S. People’s Delegation

ECO welcomes a new delegation at the COP this year.

 

The delegation represents a country whose people are deeply committed to climate action. A country with universities, businesses, cities, and states that are pushing forward with plans to achieve bold climate targets like 100% renewable energy. A country that believes in science, respect, and the importance of the global community. A country that currently has a President and Administration who believes in none of these things.

 

Meet the U.S. People’s Delegation, a delegation of climate activists and community leaders from across the United States who have come to COP23 to represent the true spirit of the nation and to push for bold climate action that goes above and beyond the Paris Agreement.

 

The U.S. People’s Delegation is stepping in to fill the void left by the Trump Administration, which announced its intention to exit the Paris Agreement. This administration is here at the climate talks not on behalf of the American people, it seems, but on behalf of their friends in the fossil fuel industry (the main side event hosted by the “official” U.S. delegation this year is an infomercial for “clean” coal).

 

Instead of speaking for this fossil fuel driven and dirty past, the U.S.
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Fossil of the Day – France

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The Fossil of the Day goes to France for postponing its target for dropping the share of nuclear energy in its power mix. France therefore sends a bad signal on its ability to meet its already agreed to energy transition targets at home and its shift towards a 100% renewable future.

 

France, you’ve been doing good so far on the international stage! You helped shape the Paris Agreement at COP21, and since then you’ve been working to achieve ambitious outcomes at UNFCCC conferences. Congratulations on this — keep up the good work!

 

But guess what? Strong ambition at international meetings is not enough. “Making our Planet Great Again” also requires national policies that live up to international rhetoric. Backsliding from agreed upon commitments cannot happen if you want to remain the gatekeeper of the Paris Agreement.

 

Yesterday, your government announced that you would not honour your 2025 target of phasing nuclear down from 75% to 50% of your electricity mix, delaying your ambition from 5 to 10 years. This target was part of a law for energy transition, passed after 3 years of inclusive dialogue with French civil society and ahead of COP21. ECO reminds you that your newly elected President Emmanuel Macron made the promise to respect and implement the energy transition as such.
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Are Developing Countries Satisfied with Half Filled Promises?

Last week’s UN Environment Emissions Gap Report showed that the world’s ‘distance to target’ on carbon emissions continues to grow. The gap between current NDCs and the 1.5 and 2 degree trajectories ranges between a huge 11 and 19 gigatons of CO2 equivalent emissions for 2030, 20-35% of present emissions.

 

Scientists suggest that the even with full implementation of current NDCs 80% of the carbon budget for 2 degrees will be depleted by 2030, and would be fully depleted for the 1.5 degree target. And that is if countries actually fulfill their NDC commitments, which is in doubt for the US, Indonesia, Australia, and several others.

 

The conclusion is that current NDCs are not enough. Governments already know that their combined pledges for 2030 are insufficient, particularly those of industrialised countries. The IPCC Special Report in autumn 2018 will show this ever more clearly, but governments should not wait for this to act.

 

There is good news, however. Global CO2 equivalent emissions — not just energy-related CO2 — seem to have plateaued between 2014 to 2016. Moreover, there is growing potential for cost-effective carbon cuts, defined as below $US100/ton CO2, until 2030. This means that the number of policies with minimal or even negative costs have been growing significantly.
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Emissions Gap Report Highlights Need for Higher Ambition

Last week’s UN Environment Emissions Gap Report showed that the world’s ‘distance to target’ on carbon emissions continues to grow. The gap between current NDCs and the 1.5 and 2 degree trajectories ranges between a huge 11 and 19 gigatons of CO2 equivalent emissions for 2030, 20-35% of present emissions.

Scientists suggest that the even with full implementation of current NDCs 80% of the carbon budget for 2 degrees will be depleted by 2030, and would be fully depleted for the 1.5 degree target. And that is if countries actually fulfill their NDC commitments, which is in doubt for the US, Indonesia, Australia, and several others.

The conclusion is that current NDCs are not enough. Governments already know that their combined pledges for 2030 are insufficient, particularly those of industrialised countries. The IPCC Special Report in autumn 2018 will show this ever more clearly, but governments should not wait for this to act.

There is good news, however. Global CO2 equivalent emissions — not just energy-related CO2 — seem to have plateaued between 2014 to 2016. Moreover, there is growing potential for cost-effective carbon cuts, defined as below $US100/ton CO2, until 2030. This means that the number of policies with minimal or even negative costs have been growing significantly.
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Brazil Considers Massive Oil Subsidy

Picture a country where renewables make up nearly 50% of the energy mix, where sustainable biofuels are commonplace, and where huge strides have been taken to reduce wasteful carbon emissions; more so than any other country over the last decade. One may think such a country would be poised to lead the world in developing a green economy. But Brazil has apparently chosen to change course and become a petrostate instead.

 

Ever since it discovered large offshore oil deposits, Brazil has reduced support for ethanol and doubled down on dirty energy. About 70% of all its energy investments in the next decade are earmarked for fossil fuel projects, mostly offshore oil and gas. As if this weren’t bad enough, President Michel Temer is now supporting a tax break for oil companies that could amount to US$300 billion over the next 2 decades – even as the country flounders in the worst recession in its history. 

 

While Brazilian negotiators in Bonn vow more climate ambition and peddle biofuels as a climate mitigation solution, President Temer has sent a welcome package for oil majors, an emergency bill (Medida Provisória ), to Congress. It has a deadline of December 15 for approval. If it clears Congress, oil companies will flow into Brazil like an oil slick.
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It’s time to end the CDM in 2020

While walking the corridors of the Bula and Bonn zones, ECO is hearing an old tune – but it’s not a lieder by Beethoven, it’s the siren song for the continuation of the Clean Development Mechanism (CDM) after 2020. This is very disappointing and ECO is confused as to why this is still being presented as an open issue. In the interests of protecting environmental integrity, a key principle of the Paris Agreement, it is essential to start with a clean slate and make its Article 6 fit for purpose.

The CDM provides a wealth of experience, both positive and negative, which should not be forgotten. At the same time, it should not be allowed to undermine the ambition of the Paris Agreement. Here are a couple of points to respond to discussions on the CDM:

First and foremost, the Paris Agreement calls for more ambition. The recent UN Environment Emissions Gap report highlighted the necessity for more and faster action in all sectors. The zero-sum exercise of pure offsetting such as in the CDM – shifting emissions from one place to another – is simply passé. If markets are still to play a role they have to go beyond this framework.
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Fossils of the Day: Australia and Poland

Crikey, Australia, you’re stinking up the Pacific! Why are you considering funding a mine that would sharply increase the country’s GHG emissions, endanger the already fragile Great Barrier Reef, and further impact the vulnerable Pacific Islands?!

Both the Australian Queensland state and the federal government have given approval for the Adani mine in the Galilee Basin. The only thing missing for this devious plan to come into effect is funding. Not to worry, Adani has applied for nearly US$1 billion in handouts from the government-backed Northern Australian Infrastructure Fund and are also seeking funding from Chinese banks!

Not only would funding this mine be catastrophic for at least four threatened species, several vulnerable habitats, and the Great Barrier Reef, it would also release heaps of emissions. The annual emissions from the Adani coal mine would be greater than the annual sum emissions of all 14 independent Pacific island countries.

Our second Fossil of the Day goes to Poland for obstructing negotiations and trying to subsidize coal, rather than phasing it out.

With great power comes great responsibility. Unfortunately, Poland isn’t keen on the responsibility part.

The host of the next COP is trying to turn the EU’s flagship climate tool into the world’s largest coal subsidy scheme.
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Germany: a Climate Leader or a Climate Laggard?

ECO was pleased to hear the German environment minister announcing a new pledge of €50 million for the Adaptation Fund (and the development minister adding another €50m for the Least Developed Countries Fund). This has been a welcome signal on day 1 of the COP23 – and all the other rich countries now have nearly two weeks to contemplate if they follow suit.

What the minister did not mention in her opening speech is that the current government has slowed down renewable energy expansion and failed to agree on a phase-out plan for coal. This is at odds with the majority of the German population who favour a coal exit. Last Saturday, Bonn saw the largest climate march ever in Germany, with people demanding climate justice and a rapid coal phase-out. It may have slipped some delegates’ attention, but Bonn is not even 50km from the Rhineland coalfields, Europe’s largest source of carbon pollution with huge open-pit lignite mines and coal power stations.

In fact, German greenhouse gas emissions have not gone down for the past 8 years. Germany is going to miss its domestic 2020 reduction target of 40% compared to 1990 levels by a wide margin if the new government does not act decisively.
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Bula! Tor the Talanoa Dialogue

ECO read the informal note prepared by COP22 and COP23 Presidencies on the features of the facilitate dialogue in 2018 (a.k.a “Talanoa Dialogue”) with great interest and believes that the note reflects rich consultations they had with Parties throughout the year. It can serve as a good start for discussion to finalize the “design” of the dialogue at this COP.

The dialogue will be the first opportunity for Parties to recognize the gap we have and to explore ways to ramp up their ambition.  The increase of ambition could take various forms but one thing is clear: the Dialogue has to inspire Parties to take concrete actions to put us back on the right track to achieve the Paris Agreement’s purpose.

ECO finds it a great idea to have both COP23 and COP24 Presidencies navigate the Dialogue.  We trust both presidencies to conduct the Dialogue in a “Talanoa” style, meaning, in an “inclusive, participatory and transparent” manner. We also welcome the fact that the note recognizes the role of non-Party Stakeholders in convening national, regional or global events as well as in preparing analytical and policy relevant inputs. There are still some issues to be resolved in the design but we also recognize that we do not have much time left till the end of this COP.
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