Global Compact International Yearbook Ausgabe 2013

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“ Progressive corporations must speak loudly and call for climate action. ” on aviation emissions through the International Civil Aviation Organization (ICAO) is within reach this year, but it will require progressive businesses to support it. Without an adequate ICAO agreement, the EU’s Emissions Trading Scheme (ETS) will be weakened – and woe to the businesses that continue their negative campaigns against aviation in the EU ETS. Studies have shown Europe’s frequent flyers are educated and concerned about climate change. It would not take much for this group to switch allegiances from a dinosaur airline acting against effective regulation to reduce emissions to an airline that is helping to build a green, low-carbon future. Other ways to provide certainty to businesses are through market standards. The United Nations Framework Convention on Climate Change (UNFCCC) could roll out environmentally rigorous standards for market mechanisms across the world. The UNFCCC could monitor, manage, and approve which instruments could be used in a compliance market in order to ensure the system maintains environmental integrity. Businesses should encourage governments to be proactive here. After all, corporate social responsibility is much easier with effective standard-setting by governments in place. No one wants to be caught with meaningless credits, especially when factoring in the damage that can be done to corporate reputations from such a situation. No one knows better than businesses that money makes the world go around. International climate negotiations are no different. It is clear that developing countries will need to undertake much more adaptation and mitigation than they can afford – much, much more. For example, the World Bank estimates that over the next 20 years, reducing emissions in developing countries could cost $ 240 - $ 600 billion a year, while adapting to climate impacts could cost $ 10 - $ 90 billion a year. Furthermore, the International Energy Agency calculates that an additional $ 430 billion – or 0.5 percent of global GDP – will need to be spent on energy infrastructure annually by 2020. Clearly, there are opportunities for businesses in these markets. But first, governments need to deliver the $100 billion in public money they promised in Copenhagen. Once the public funds are delivered, the amounts of private finance that will be necessary in developing countries can be leveraged. To unlock these opportunities, businesses should advocate – at the UNFCCC, the G20, and at home – for governments to deliver on this promise. Furthermore, businesses should work collaboratively with NGOs and governments to ensure that both public and private funds are deployed effectively – for the climate and for poor people. Another area in which positive action could open new markets in developing countries is the international negotiations surrounding intellectual property rights (IPR). Even though least-developed countries are not expected to have to conform with the World Trade Organization’s regime on IPR (Agreement on Trade Related Aspects of Intellectual Property Rights – TRIPS), many developing countries with slightly higher income levels could be priced out of the climate technology market, especially for adaptation technologies. To 44 Global Compact International Yearbook 2013
Agenda Climate Change meet this need, businesses can participate in internationally coordinated research and development on climate technologies. They can support regulation to back up technological solutions, such as feed-in tariffs for renewable-energy power projects. Encouraging the sharing of technologies, which can put developing countries on a low-carbon development pathway, is an effective, relatively low-cost means toward our long-term climate goal. A report released last year by the International Energy Agency warned that we need to keep two-thirds of our remaining fossil fuel reserves in ground if we are to keep climate change within acceptable levels. But the Unburnable Carbon report from Carbon Tracker found that many businesses are wasting capital by continuing to search for and exploit fossil fuels that will never be able to be used – generating what many have described as a carbon bubble that will soon burst. To avoid this and to retain social license, businesses can wise up to the fact that the future will necessarily be fossil fuel-free. They can stop new fossil fuel exploration, and call for regulation to keep fossil fuels in the ground (ensuring a level playing field). Banks, financial institutions, and others with large stock holdings can divest from companies that persist with inflating the carbon bubble. Perhaps most important is standing up to – and going public against – the businesses that are actively working against effective action on climate change. Progressive corporations that see the opportunities that climate action affords and that recognize the shared responsibility we all have must speak loudly and call for climate action – internationally, nationally, and locally. Climate change is a challenge that far exceeds any sector’s ability to deal with it on its own. UN agencies, governments, businesses, and civil society all have a role to play in ensuring a low-carbon, sustainable, equitable future. We all have a responsibility to help our leaders make the right choices to deliver this future. This is much more important than putting someone on the moon – this is delivering an inhabitable planet for our children. Julie-Anne Richards is International Policy Coordinator at the Climate Action Network International. Global Compact International Yearbook 2013 45
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