I was one of the architects behind the CPLC, and have recently moved to a new position to help the International Finance Corporation promote private sector-led development. Departing put me in reflective mode: how did this unique, impactful initiative come to exist? And can a bottom-up, public-private initiative, provide lessons to those seeking new models to tackle other global challenges?
Pricing carbon risk provides a strategic link between environmental and financial performance, strengthening the business case for proactively mitigating climate-related risks.
Worldwide, the private sector is increasingly acknowledging the business case for investing in climate business opportunities and climate risk management. However, the question of which management approaches are most appropriate for each company is still being explored.
In a recent webinar on designing and implementing internal carbon pricing hosted by the Carbon Pricing Leadership Coalition (CPLC), the World Economic Forum (WEF) and Yale University, Unilever - one of the largest consumer goods company in the world - discussed some approaches that businesses can take, and have already taken, to implement such measures.
Our experience illustrates the transformational innovation of this multilevel, multilateral coalition: non-governmental organizations, governments, UN agencies, businesses, banks, and universities, come together around one table, and work as peers to design and to facilitate the deployment of smart carbon pricing, across the world. Such multilevel collaboration is essential to achieving the optimal timeline to full-spectrum inclusive climate prosperity.
People often ask me what the CPLC does and what sets us apart among all those advocating for climate action. My response is that the CPLC is unique because of the myriad backgrounds, experiences, and perspectives of its partners, as well as the ways in which the richness of this diversity is incorporated into its leadership style.
The Indian government has adopted some of the world’s most ambitious renewable energy targets, which are a centerpiece of its strategy to address climate change. Now, 40 Indian companies are joining the national effort by setting a price on their internal carbon emissions, which can facilitate greener decision-making.
While inland transport was included in the 2015 Paris Agreement and international air transport followed suit in 2016, progress in the international shipping sector, which carries 80% of the world’s trade volume, has been more modest. Back in 2011, the International Maritime Organization (IMO) did adopt a set of operational and technical measures to increase the energy efficiency of vessels. Realistically though, it may take about 25-30 years to renew the world’s entire fleet and make all new vessels fully compliant with IMO’s technical requirements.
Setting sail. To ensure ambitious contribution by the shipping sector to the Paris Agreement’s temperature goals, France initiated the Tony de Brum Declaration in December 2017. Presented by Hilda Heine, President of the Marshall Islands, at the One Planet Summit in Paris, the Declaration has been signed today by 38 countries already.
To address the global development risks posed by climate change, a major technological shift leading to a substantial reduction in the global greenhouse gas (GHG) emissions will be necessary. In parallel, the substantial global economic and development distortions - that lead to inequality - do not enable the technological and financial transfers needed for a sustainable and equitable global economy. This brings us to a fundamental question: when climate change only imposes an additional threat of unseen scale, how can we change the economic status-quo?
The Carbon Pricing Leadership Coalition (CPLC) held a high-level roundtable event in Bonn, on Finance Day at the COP23. The meeting was an important opportunity for the Coalition membership to share views, provide updates on new and emerging efforts, and discuss ways to intensify the market signal sent by existing policies.
Statoil has been operating in a market where an external carbon price has existed since the early 1990s. Due to CO2 tax and other regulatory measures the oil and gas industry in Norway has adopted emission-reduction measures corresponding to more than five million tonnes of CO2 per annum since 1996. Consequently, Norwegian oil and gas production is in the global premier division for low GHG emissions and the average amount emitted per unit produced is about half the world average.
And then there were three. As of January 1st, 2018, Ontario has joined California and Québec, linking their respective carbon markets. In a post-Paris world of bottom-up climate policy, linking of climate policy matters. It provides a concrete step forward on the Paris Declaration on Carbon Pricing in the Americas. It shows that, while the U.S. federal government is dismantling much-needed climate protections, states, together with Canadian provinces, are moving forward. Linking, if done right, can be a powerful enabler of greater ambition. It also raises important questions.
An exclusive report from the EcoAct Group shows more CAC40 companies are adopting an internal carbon price. Two years after COP21, global greenhouse gas emissions are again on the rise in 2017. The challenge now is to move from statements of alignment with the Paris Agreement to real action towards decarbonizing our economy. How are French companies approaching this issue? To explore the answer this question, the EcoAct Group conducted research on the climate performance of CAC 40 companies and published the findings in an exclusive report.
Today’s climate challenge is so far beyond our collective experience that it demands a radically different kind of engagement from senior leadership teams in the private sector. The threats that climate change poses to business, markets, and, indeed, capitalism are peculiarly hard for most top teams to spot, let alone act on.
Last month, at the fourth annual Climate Business Forum, hosted in New Delhi by the International Finance Corporation (IFC), part of the World Bank Group, there was a buzz in the air about business opportunities in clean solutions, as Indian government ministers, leading companies and investors presented their plans to scale up solar, green buildings and distributed energy storage using disruptive business models and innovative financing.