The additional up-front investment required for a sustainable infrastructure pathway by 2030 is estimated at less than 5% above baseline levels, and is very likely to be more than “offset” by the resulting energy and fuel savings from modern clean energy and energy efficiency, with large additional benefits resulting from avoided climate impacts and air pollution related health costs, as well as reduced risk of stranded assets. Present externalities of and subsidies to burning fossil fuels amount to a staggering 6.5% of global GDP.
It is estimated that fossil fuel subsidies contributed up to 36% of global emissions between 1980 and 2010, while also exacerbating health problems, air and water local pollution. Limiting their use is a key step towards reducing inequality and achieving inclusive growth, since fossil fuel subsidies disproportionately benefit the middle and upper classes. Fossil fuel subsidies constitute an inefficient use of scarce public funds, and inhibit the market penetration of price-competitive renewables. While subsidies more broadly can be used as an effective tool to support the poor and promote a particular industry for the benefit of larger good, an industry that is well-established should not be the beneficiary of limited public resources, especially when cost-effective and healthier alternatives are available.
In the Kigali Amendment to the Montreal Protocol adopted in 2016, parties agreed to phase-down hydrofluorocarbons, the fastest growing climate pollutants. Once implemented, this phase-down could prevent emissions of 80 GtCO2e by 2050, reducing global warming by up to 0.5ºC by the end of the century compared to business as usual.
In addition, the HFC phasedown under the Montreal Protocol will, as has always been the case in the past, provide the opportunity to improve energy efficiency in air conditioning and refrigeration systems, potentially in the range of 30 to 60%. In the room air conditioning sector alone, improving energy efficiency of equipment by 30% while simultaneously transitioning to low-GWP alternatives could save an amount of electricity equivalent to up to 2,500 medium-sized power plants globally by 2050, while providing climate mitigation of nearly 100 Gt CO2-eq by 2050 from this sector.
Delivering the Sustainable Development Goals (SDGs) by 2030 requires some $90trn of investments over the next 15 years. The issue is not availability of capital: our global financial system today is nearly $300trn strong and growing. Rather, the challenge is aligning financial regulation with sustainability objectives to shift financial flows and unleash green finance. Success would result in more than just meeting SDGs. It would create a more resilient, sustainable and inclusive global economy, while at the same time adding approximately $12trn a year to global GDP – and possibly more. In their current form, however, financial markets do not price in the externalities of investments at a level strong enough to shift investments decisions; nor do they provide enough public information to market players regarding their exposure to sustainability-related risks and opportunities. More work is also needed to scale up green finance.
The Paris Agreement calls for countries to formulate long-term low-GHG emission development strategies, in line with pursuing efforts to limiting global temperature increase to 1.5ºC. With the 2016 adoption of Agenda 2030, countries are also beginning to implement policies to fulfil the sustainable development goals (SDGs).
Long-term strategies create a framework within which the implications of short-to-medium-term decisions that impact both greenhouse gas emission trajectories and development pathways can be coherently planned and adjusted where necessary. Developing and implementing these strategies ensures alignment with the long-term goals of the Paris Agreement, in a way that fosters increased prosperity for citizens, reduces the risk of locking-in unsustainable and high-emission infrastructure, and will help to avoid stranded high-carbon assets.
Careful long-term planning also provides an opportunity to maximize socio-economic benefits, such as cleaner air and water, improved security for jobs and energy access, and better health. If well done, these strategies can identify such opportunities, as well as challenges, open a space for democratic consultation on these implications, and secure a just transition for workers and communities which depend today on a fossil-based economy.
Climate Action Network International (CAN) and Bond Development and Environment Group welcome the call by COP 22 to propose possible activities for the five-year rolling work plan of the Executive Committee. This submission outlines proposed activities for the specific strategic workstream on enhancing action and support, including finance, technology and capacity-building, as mandated by decision 3/CP.22.
The founding document of the Warsaw International Mechanism for Loss and Damage (WIM), agreed at COP 19 in 2013, identified the facilitation and mobilisation of support as a priority. The first three years of the WIM focused on its other functions of: a) enhancing knowledge; and, b) strengthening dialogue and coordination. Thereby the WIM laid important groundwork, on which key conclusions for the way forward still need to be drawn. However, now it is time to address the more difficult areas which have lacked attention, including e.g. climate-related migration, but in particular action and support. In light of the growing loss and damage actually happening, we propose that the WIM should treat finance as a priority for the coming two years - dedicating as much time and resources to the finance (support) workstream as to the other work streams combined. The ExCom should identify the objectives and key activities to reach across 2017 and 2018 as outlined below. Though the 5-year work plan is expected to run into 2021, CAN regards it as crucial to make an ambitious start and deliver activities which make a difference on the ground as soon as possible, and not only by 2021.
Whilst estimates of loss and damage finance needs vary, it is clear that needs are already high and likely to grow. Studies indicate that by mid-century economic global losses and damages costs may exceed $1 trillion per year, with developing countries shouldering the majority of the burden. These loss and damage costs are on top of the costs of adaptation. In this context, and given the WIM mandate to facilitate and mobilise support, the overall objective of this workstream should be to urgently generate finance from predictable, adequate and sustainable sources at a scale of billions of dollars to address loss and damage in developing countries before 2020, and growing after 2020, at a scale sufficient to address the problem over and above the finance provided for adaptation. This will require enhancing the understanding of the nature, types and scales of finance developing countries require. It should also lead to enhanced support for addressing loss and damage immediately and in the near-term, in particular for the poorest and most vulnerable populations.
We propose the following activities for the finance-related work stream as part of the 5-year rolling work plan. Where necessary, this may involve the work of other bodies such as the Standing Committee on Finance, however in an effective manner which does not slow down urgently needed progress on raising funds. Many of these activities should be kick-started as early as possible, at the forthcoming ExCom5 meeting (March 2017).
CAN welcomes the opportunity to provide its views on the organization of the 4th in-session Dialogue on Action for Climate Empowerment held in May 2016 and regarding the agenda of the upcoming 5th in-session Dialogue on Action for Climate Empowerment to be organized in May 2017 in Bonn.
● The dialogue should aim at supporting the implementation of the Doha Work Programme on ACE with its agenda reflecting the action suggested in the work programme and during its intermediate review. Relevant actors identified in these documents should be invited to share information regarding their contributions, including good practices and barriers faced.
● The dialogue should be co-facilitated by a member from the civil society with recognised expertise on the issue at the agenda of the dialogue to fully reflect the participatory and multi-stakeholders nature of the Doha Work Programme on ACE.
● The agenda of the Dialogue should be focused and include linkages with parallel streams of works under the UNFCCC. This would inform the implementation by parties of their existing commitments and the integration of ACE therein. Potential subjects for the 5th dialogue could include the integration of climate education and training in the NDCs or education and training as means to strengthen climate adaptation - including in relation to the National Adaptation Plans (NAPs).
● The GEF should be invited to provide an update during the dialogue with regards to the support that it makes available to parties for the implementation of actions related to ACE.
CAN thanks the Parties for the opportunity to present our initial thinking on the scope and modalities for the Periodic Assessment (PA) of the Technology Mechanism (TM).
Our KEY IDEAS:
1.The Technology Framework should provide guidance for the regular evaluation of the TM through the Periodic Assessment (PA). The Assessment must include metrics and indicators developed from the mandate of the TM.
2.The TM has the opportunity to play a central role in supporting the Nationally Determined Contributions (NDCs) of developing countries within its existing mandate, but in order to meet the scale of Parties’ needs, the TM must further build cooperation among institutions that have capacity to work in this space.
3.The PA should assess the mandates of the TEC in terms of how its guidance is actually having influence on appropriate technology decisions in developing countries and how well the outcomes of Technology Needs Assessments (TNAs) and Technology Action Plans (TAPs) are mainstreamed into planning at various levels, and translated into bankable projects.
4.The PA should assess the ability of the CTCN to meet its mandate in providing technical assistance to NDEs, ensuring that the knowledge generated is accessible and actionable by others, and provides adequate support for developing country NDCs.
The PA should assess the effectiveness of the TM to create and maintain the linkages with other institutions needed to ensure that technology-related climate action can be implemented at scale.