Global Compact International Yearbook 2014

The growing level of global carbon emissions is due to our lifestyles.
Industrialized countries are unwilling to abandon their materialintensive
and wasteful lifestyles, whereas emerging economies are
intent on avoiding any mandatory commitments that could block
their chances of copying the Western consumerist model. It is the same
dilemma that the Club of Rome described in “The Limits of Growth”
four decades ago. It seems that mankind is not learning as fast as is
needed. Or is it?
Figueres: The challenge and opportunity we face is the transformation
of the growth paradigm that we have followed
over the past 100 to 150 years. Our growth has been based
on burning fossil fuels, but today we know that this can no
longer be an option. Therefore, we need to try and transform
the growth paradigm that we have used in the past. We need
a new paradigm for the next decades – in particular for
developing countries – that allows for sustainable growth
and also helps in eradicating poverty and providing for the
well-being of all citizens. But that growth must be low-carbon
and high-resilience growth, which is not the model that has
been used for the past 150 years. So we are looking for a
new growth model and we are beginning to see it emerge
in some countries.
Let us talk about instruments to mitigate and adapt to climate change.
The discussion always highlights a global carbon market with an
emissions trading scheme as being a good instrument. Can you briefly
explain to our readers the current state of discussions?
Figueres: There are several components to this. The established
markets are in developed countries under the Kyoto Protocol.
Those markets are admittedly suffering from a lack of demand.
When you do not have demand, then supply is irrelevant. But
I am confident that as soon as we have a global agreement,
the role of the markets will be recognized. Established global
market mechanisms such as the Clean Development Mechanism
and the European Union’s Emissions Trading Scheme
contrast remarkably with the growth of markets in other
jurisdictions. At the end of June, China launched its seventh
regional-based market. China is experimenting with seven
pilot projects with a view toward entering a national carbon
market within the next few years.
The same can be said for about 12 to 16 other countries, all of
which are experimenting with carbon pricing or carbon markets
as potentially effective tools for reducing greenhouse gas
emissions. What we see is a mushrooming of markets around
the world that are speaking to the very specific national circumstances
of particular jurisdictions. They are increasingly
exchanging information among themselves and see a future
for these markets in which they receive funding, and perhaps
are linked to each other. So there is a lot of work under way in
these markets, but it still remains to be seen where all these
activities are leading.
Another instrument brought into the discussion during your time as
Executive Secretary is the Green Climate Fund (GCF). The idea is to
have at least $10 billion available for climate projects in developing
countries. Will the fund be launched?
Figueres: The Green Climate Fund has actually been launched,
in the sense that all the designs and decisions have been decided
upon by the board in order to have an operating entity ready.
What we are looking at now – particularly for September
for the Climate Summit called by UN Secretary-General Ban
Ki-moon – is the beginning of the capitalization phase of the
GCF. That is not going to occur in one day, but with capitalization,
the Green Climate Fund could begin to operate.
What time frame do you have in mind?
Figueres: That is not clear yet. The expectation is that some
announcement will come in September. But whether it is 6
or 12 months is still unclear.
Recently, Ecuador asked for financial support to protect its biodiversity
and its rain forests. The global community declined to help. So how
realistic are REDD + (Reducing Emissions from Deforestation and
Forest Degradation in Developing Countries) programs in light of this
response to Ecuador?
Figueres: The Ecuadorian project was a proposal that Ecuador
would be compensated for not extracting the oil that is underneath
Yasuni Park. That did not yield as much as Ecuadorians
had hoped, although it was a very interesting proposal. The
financial instruments put together to finance REDD+ activities
are fundamentally different in nature – they do not deal
with the non-extraction of oil but rather with the protection of
the forest cover. Different sources put out different numbers,
but I think it is safe to say that somewhere between $2 and
$3 billion has been committed to the developing countries
that are working on their programs and plans to protect the
forest cover. The climate convention has established a very
rigid procedure and methodology to account for the tons of
carbon that are protected by law. So with methodological
and environmental integrity and vigor on one side, and with
funding on the other side, there is a very good potential for
developing countries to contribute toward the fight against
climate change through the protection of forest cover.
Working on climate protection is not only a duty for governments but
for all of us. What do you want from businesses? What kind of initiatives,
commitments, and solutions would you like to see from them?
Figueres: Business sectors can do a couple of things. First, they
can help to increase energy efficiency to a maximum. Second,
there is the challenge of what kinds of products and services
are offered by these companies. They can move toward lowercarbon
products and services if they want to be at the forefront
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Global Compact International Yearbook 2014