Climate Action 2014-2015

www.climateactionprogramme.org 

Produced for: COP20 United Nations Climate Change Conference 

Lima, Peru, 1 – 12 December 2014 2014-2015 

Supported by:

PublISHed by CLIMATE ACtioN 

IN partnership with the 

United NatioNS EnviroNMENt ProgrAMME 

(UNEP) 

ISBN: 978-0-9928020-2-8 

PublISHed NoveMBer 2014 

Editor-iN-Chief: 

WillIAM BrittleBANk 

Sub Editor: 

JoHN Saunders 

dESign: 

dANIel BroWN 

Printer: 

Buxton PreSS 

The Publishers wish to thank all the individuals 

and organisations who have contributed to 

this book. In particular we acknowledge the 

following people from UNEP for their help 

and advice in producing Climate Action: Achim 

Steiner, Naysan Sahba, Fanina Kodre-Alexander 

and other UNEP staff UNEP does not 

necessarily endorse the organisations that have 

included advertisements in this publication 

ClIMAte Action 

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In June 1992, the United Nations Framework Convention on Climate Change 

(UNFCCC) was signed at the Earth Summit in Rio de Janeiro, and members have been 

meeting annually since 1995 at Conferences of the Parties (COP) to take on the global 

threat of climate change. 

COP20 now brings us to Peru, and Lima presents a crucial opportunity for world leaders 

to lay the groundwork for the binding agreement scheduled to be finalised in Paris next 

year. Stabilising greenhouse gas emissions, the advancement of climate finance mechanisms 

and the Post 2015 Development Agenda, will be brought into sharp focus. 

Launched in 2007 at the UNFCCC COP13 in Bali we now present the eighth edition 

of Climate Action; the leading platform for Ministers of Environment and Energy, United 

Nations leadership, industry figureheads and finance experts to expound on climate change 

solutions and the technologies and mechanisms that are driving the green economy. 

Featuring world-class thought leadership, the publication aims at identifying the urgent 

topics in the climate change debate, encouraging consensus on international decision 

making and catalysing decisive action to effect change. 

Produced in partnership with the UNEP, the publication provides concrete steps that 

both governments and businesses can take to reduce carbon footprints through ongoing 

dialogue and dedicated actions. We hope you find it a stimulating and enlightening read. 

For further information on Climate Action please visit 


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climateactionprogramme.org 1

CONTENTS 

6/ FOREWORD 

Achim Steiner, UN Under-Secretary-General and Executive Director of the UN 

Environment Programme (UNEP) 

12/ TELLING MY STORY - PARRYS RAINES 

COP 20 AND BEYOND 

17/ PERU: A TRANSFORMATIVE GLOBAL AGENDA 

Manuel Pulgar-Vidal, Minister for the Environment, Peru, and President of COP20-CMP 10 

20/ NEW COMMITMENT TO RISE TO THE CLIMATE CHALLENGE 

Lila Karbassi, Head, Environment and Climate, UN Global Compact 

22/ TECHNOLOGY: A KEY COMPONENT ON THE ROAD FROM LIMA TO PARIS 

Jukka Uosukainen, Director, Climate Technology Centre and Network (CTCN) 

CLIMATE FINANCE 

24/ CLIMATE FINANCE AND TRUST 

Héla Cheikhrouhou, Executive Director, Green Climate Fund (GCF) 

27/ REGIONE ABRUZZO: A BOTTOM-UP APPROACH THE WAY TO SUCCESS 

28/ EUROPEAN INVESTMENT BANK: UNLOCKING FINANCE FOR CLIMATE ACTION 

30/ PRICING CARBON IN CHILE: GREEN TAX REFORM 

Pablo Badenier Martinez, Minister of the Environment, Chile 

33/ CLIMATE FINANCE FROM AN MDB PRACTITIONER’S PERSPECTIVE 

David Wilk, Inter-American Development Bank (IDB) 

38/ NAFINSA: PROVIDING DEVELOPMENT FINANCE FOR MEXICO’S ENERGY INFRASTRUCTURE 

39/ THE WBCSD URBAN INFRASTRUCTURE INITIATIVE 

Peter Bakker, President, World Business Council for Sustainable Development (WBCSD) 

43/ CTX: GLOBAL CARBON INFRASTRUCTURE 

44/ GEARING UP CLIMATE ACTION IN THE ASIA-PACIFIC 

Bindu N Lohani, Asian Development Bank 

48/ CAIXA ECONÔMICA FEDERAL: SUSTAINABLE BANKING 

50/ PRECON ENGENHARIA: INNOVATION, INDUSTRIALISATION AND SUSTAINABILITY 

MITIGATION AND ADAPTATION 

51/ BRAZIL’S NATIONAL POLICY FOR LOW CARBON SUSTAINABLE DEVELOPMENT 

Izabella Teixeira, Minister of the Environment, Brazil 

54/ AVINA: CATALYSING TRANSFORMATIONAL CHANGE 

55/ RENEWABLES: THE BEST VALUE ENERGY SOLUTION 

Adnan Z Amin, Director-General, International Renewable Energy Agency (IRENA) 

58/ SOLARRESERVE: CONCENTRATING SOLAR POWER 

60/ ENERGY AT THE CENTRE OF THE CLIMATE CHANGE EQUATION 

Marie-José Nadeau, Chair, World Energy Council (WEC) 

63/ FIRST SOLAR: LATIN AMERICA, A PROMISING NEW FRONTIER FOR SOLAR 

64/ PTP: COLOMBIA’S PRODUCTIVE TRANSFORMATION PROGRAM 

2

CONTENTS 

66/ NEW HOLLAND AGRICULTURE: SUSTAINABLE AGRICULTURAL MECHANISATION 

68/ HUNGER-FREE LATIN AMERICA AND THE CARIBBEAN 

Raúl Benítez, Food and Agriculture Organization of the United Nations (FAO) 

72/ SEALEDAIR: FOOD WASTE, CREATING A BETTER WAY FOR LIFE 

74/ TACKLING THE CLIMATE CHALLENGE WITH ICTS 

Dr Hamadoun I Touré, Secretary-General, International Telecommunication Union (ITU) 

76/ IPN: INNOVATIVE TECHNOLOGIES TO HELP PROTECT COASTAL AREAS 

78/ ENERGY EFFICIENCY – KEY TO CLOSING THE EMISSIONS GAP 

Mark Radka, UNEP DTIE, and John Christensen, UNEP DTU Partnership 

81/ SABMiller: SHARED ACTION WITH WATER USERS 

RESILIENT CITIES 

82/ CITIES ARE LEADING THE FIGHT AGAINST CLIMATE CHANGE 

Eduardo Paes, Mayor of Rio de Janeiro and Chair, C40 Cities Climate Leadership Group 

88/ ADDRESSING CLIMATE CHANGE THROUGH PLANNED CITY EXTENSIONS 

Dr Joan Clos, United Nations Under-Secretary-General and UN-Habitat Executive Director 

94/ PERU 2021: A CREATIVE SUPPORT FOR VISION 2050 

96/ BMWi: DRIVING THE FUTURE OF (E-) MOBILITY 

98/ SMARTER CARS IN SMARTER CITIES 

Erik Jonnaert, Secretary General, European Automobile Manufacturers’ Association 

102/ GREEN OUR WORLD INDUSTRIES: EMPTYING LANDFILLS AND CLEANING OIL SPILLS 

103/ GIST ADVISORY: SUSTAINABILITY CONSULTANTS AND HOLISTIC PERFORMANCE METRICS 

104/ GLOBAL PARTNERSHIPS, GLOBAL SOLUTIONS 

Jane Henley, Chief Executive Officer, World Green Building Council (WorldGBC) 

107/ GOTHENBURG: green bonds bring climate-smart solutions 

108/ DOUBLING THE EFFICIENCY OF THE GLOBAL VEHICLE FLEET 

Rob de Jong, UNEP DTIE 

112/ ISA: CLIMATE STRATEGY, CHALLENGES AND ACTIONS 

114/ SUPPORT SERVICES FOR CLIMATE CHANGE MITIGATION AND ADAPTATION 

DEFORESTATION AND REDD+ 

115/ LANDSCAPE RESTORATION - A WINNING STRATEGY IN A WARMER WORLD 

Dr Andrew Steer, President and CEO,World Resources Institute 

118/ ContourGlobal: POWER GENERATION FOR A SUSTAINABLE WORLD 

120/ THE FUTURE FOR FORESTS AFTER THE NEW YORK DECLARATION 

Helen Clark, Administrator, United Nations Development Programme (UNDP) 

127/ CLIMATE-KIC: HOW OPEN INNOVATION ADDRESSES CLIMATE CHANGE 

128/ MAINSTREAMING EMISSION REDUCTIONS ACROSS THE LANDSCAPE 

Peter Holmgren, Director General, Center for International Forestry Research (CIFOR) 


WARNING 

SHOT 

35,000 walruses were forced 

to come ashore in October on 

a beach in Alaska with experts 

blaming the loss of Arctic sea 

ice and climate change. The 

phenomenon occurred at Point 

Lay, a village north-west of 

Anchorage, and was noticed 

by the National Oceanic and 

Atmospheric Administration 

(NOAA). Walruses use ice 

sheets to rest and scientists 

have linked the gathering to the 

loss of summer sea ice forcing 

the animals onto dry land. 

4

Source: National Oceanic and Atmospheric Administration (NOAA) 


FOREWORD 

By Achim Steiner, UN Under-Secretary-General and Executive Director of the 

UN Environment Programme (UNEP) 

With a little over a year to go before COP 21 in Paris, the twentieth conference of the 

Parties to the United Nations Framework Convention on Climate Change in Lima is a critical 

opportunity to ensure that we are on track to achieve a legally binding and universal 

agreement on climate change by the 2015 deadline. 

The United Nations Climate Summit in 

New York in September this year, helped to 

raise political momentum for a meaningful, 

universal climate agreement by mobilising 

new coalitions, money and markets, by 

strengthening resilience, and by advancing 

climate action on carbon pricing. More 

than 800 leaders from business, finance and 

civil society joined world leaders in what 

was an unprecedented show of support for 

climate change action. 

What is remarkable about the chorus of 

voices calling for a universal agreement 

on climate change is that they are now 

widely representative of our entire society, 

with the Climate Summit welcoming 

commitments made by the financial 

sector on a scale never before witnessed. 

For example, a new coalition of 

governments, business, finance, 

multilateral development banks and 

civil society leaders announced their 

intent to mobilise over US$200 

billion for financing low-carbon and 

climate-resilient development. While 

at the national level, countries strongly 

reaffirmed their support for mobilising 

public and private finance to meet the 

US$100 billion dollar goal per annum by 

2020, with developing countries promised 

mitigation commitments of US$3 billion 

from the European Union, and the Green 

Climate Fund receiving a multi-billion 

dollar injection of capital from half a 

dozen countries worth US$2.3 billion. 

However, as the recently published 

Emissions Gap Report makes clear, to 

stay within the 2°C limit, total global 

greenhouse gas emissions must peak and 

start declining within the next few years. 

To ensure that this happens we must do 

more - and quickly - to transition from 

a carbon intensive, to an inclusive green, 

economy. We cannot make this shift 

without the support of the private sector 

and an enabling policy environment. 

Lima presents our best opportunity to 

create the first draft of a meaningful 

and universal climate agreement which 

balances support for adaptation and 

mitigation, and enables governments to 

outline what strategies and policies they 

will adopt to maintain consistency with 

a less than 2 degree pathway. 

Many leaders from across the world 

and from both developed and emerging 

economies are already laying the ground 

work for a new agreement on climate 

change, by committing their own 

economies to considerable emissions 

reductions. The European Union 

countries have committed to a target 

of reducing emissions to 40 per cent 

below 1990 levels by 2030, and leaders 

from more than 40 countries, 30 cities 

and dozens of corporations launched 

large-scale commitment to double the 

rate of global energy efficiency by 2030 

through vehicle fuel efficiency, lighting, 

appliances, buildings and district energy. 

The private sector and financial 

institutions are showing increasing signs 

of their willingness to redirect resources 

for a low carbon green economy 

transition, with some leaders from 

private finance calling for the creation of 

an enabling environment to undertake 

the required investments in low-carbon 

climate resilient growth. 

The impact of an effective and clear 

policy signal can be seen in many 

6

FOREWORD 

countries – most recently in South 

Africa. Following the introduction of 

a renewable energy policy, South Africa 

succeeded in mobilising US$14 billion 

in investment capital, in three successive 

auctions (2011-2013), for new wind and 

solar power generation capacity. 

Other signals that indicate that a green 

economy transition is underway include 

the falling costs of clean, climate-friendly 

solutions – notably renewable energies 

– as technology improves and business 

models sharpen; financial markets are 

also on the move as they prepare for 

a shift, as evidenced by the rapidly 

growing green bond market. 

These are welcome and necessary trends, 

as Trucost puts the annual cost of failing 

to transition to a low-carbon economy 

at roughly US$7.3 trillion a year. The 

cost of greening economic sectors is 

estimated at just 2 per cent of global 

GDP a year, or US$1.3 trillion, out of 

the US$225 trillion total stock of assets 

in the global financial system. 

Other notable voices that have decisively 

joined the call for climate action are those 

of Small Island Developing States (SIDS). 

Many SIDS are being severely impacted 

by climate change, and some are now 

taking a lead in transitioning to models 

of sustainable development, underpinned 

by renewable energy efficiency and 

responsible natural resource management. 

SIDS, along with other emerging 

economies, have a crucial role to play 

in the formulation and implementation 

of both the climate agreement, and the 

Sustainable Development Goals, both of 

which must set us firmly on the path to 

an inclusive and sustainable future. 

This will require us to chart new 

pathways for climate finance, address 

shortfalls in mitigation and adaptation 

efforts, make energy efficiency a top 

priority, and take decisive steps to curb 

deforestation and forest degradation 

through REDD+. The New York 

Declaration on Forests, launched and 

supported by more than 150 partners, 

including 32 government, 20 subnational 

governments, 40 companies, 16 

indigenous peoples groups, and 49 NGO 

and civil society groups, aims to halve the 

COP20 in Lima is a critical opportunity to ensure that we are on 

track to achieve a legally binding agreement by the 2015 deadline 

"Lima presents our best 

opportunity to create the first 

draft of a meaningful and 

universal climate agreement." 

loss of natural forests globally by 2020, 

and strive to end it by 2030. Given that 

deforestation and forest degradation is 

currently contributing about 17 per 

cent of greenhouse gas emissions; such 

a contribution is of decided import to 

global climate change mitigation efforts. 

Activities to adapt to the impacts of 

climate change come with a range of 

costs and associated implications for the 

need for financial investments. By 2015 a 

plan must be in place to enable countries 

to implement a universal climate change 

agreement which will help facilitate a 

transition to an inclusive green economy. 

All indications suggest that the private 

sector and financial institutions are 

willing to get on board to facilitate the 

mobilisation of financial resources to ensure 

that a 2015 climate agreement can be 

successfully implemented. With the support 

of all sectors of society, and the financial 

resources to make the implementation of a 

new climate agreement possible, it is more 

than feasible to keep the promise we made 

at Rio+20 for the future we want. 

Achim Steiner was elected as the Executive 

Director of UNEP in 2006 and was reelected 

for another four-year term in 2010 

on the proposal of the UN Secretary-General 

Ban Ki-moon. Before joining UNEP, Mr 

Steiner served as Director General of the 

International Union for Conservation of 

Nature (IUCN) from 2001 to 2006, 

and prior to that as Secretary General of 

the World Commission on Dams. His 

professional career has included assignments 

with governmental, non-governmental and 

international organisations in different parts 

of the world including India, Pakistan, 

Germany, Zimbabwe, USA, Vietnam, South 

Africa, Switzerland and Kenya. 

The United Nations Environment 

Programme (UNEP) is the voice for the 

environment in the United Nations system. It 

is an advocate, educator, catalyst and facilitator, 

promoting the wise use of the planet’s natural 

assets for sustainable development. UNEP’s 

mission is “to provide leadership and encourage 

partnership in caring for the environment by 

inspiring, informing, and enabling nations and 

peoples to improve their quality of life without 

compromising that of future generations”. 


SUPPORTERS 

THANKS TO OUR 

SUPPORTERS 

82 24 

C40 CITIES CLIMATE LEADERSHIP GROUP 

The C40 Cities Climate Leadership Group (C40) is a 

network of large and engaged cities from around the world 

committed to implementing meaningful and sustainable 

climate-related actions locally that will help address climate 

change globally. C40 was established in 2005 and expanded 

via a partnership in 2006 with President William J. Clinton’s 

Climate Initiative (CCI). The current chair of the C40 is Rio 

de Janeiro's Mayor Eduardo Paes; the 108th Mayor of New 

York City Michael R. Bloomberg serves as President of the 

Board. Eduardo Paes, Chair of the C40 Cities, highlights how 

cities are leading the fight against climate change on page 82. 

www.c40.org 

GREEN CLIMATE FUND 

The Green Climate Fund is a new multilateral fund that 

was established by Parties attending the 2010 UNFCCC 

Conference in Cancun, Mexico. The Fund is designed as an 

operating entity of the Convention’s financial mechanism. 

The Fund’s purpose is to promote the paradigm shift towards 

low-emission and climate-resilient development pathways 

by providing support to developing countries to help limit 

or reduce their greenhouse gas emissions and to adapt 

to the unavoidable impacts of climate change. Ms Héla 

Cheikhrouhou, Executive Director of the fund, addresses the 

key topics in the climate finance arena on page 24. 

www.news.gcfund.org 

8

SUPPORTERS 

104 115 

WORLD GREEN BUILDING COUNCIL 

The World Green Building Council (WorldGBC) connects 

a global coalition of more than 100 national Green Building 

Councils and their 27,000 member companies with a single 

mission: to transform the building industry and ensure our 

buildings and cities are healthy, efficient, productive and sustainable. 

CEO Jane Henley addresses key global partnerships and solutions 

in the green building sector on page 104. 

www.worldgbc.org 

WORLD RESOURCES INSTITUTE 

The World Resources Institute (WRI) is a global research 

organisation that spans more than 50 countries, with offices in 

the Brazil, China, Europe, India, Indonesia, and the United States. 

Our more than 450 experts and staff work closely with leaders 

to turn big ideas into action to sustain our natural resources—the 

foundation of economic opportunity and human well-being. Dr 

Andrew Steer, President and CEO of WRI, addresses winning 

strategies for landscape restoration on page 115. 

www.wri.org 


www.cemig.com.br 

Cemig knows that to guarantee quality services it has to innovate. Always. That is why 

the Company invests in renewable sources of energy, such as wind power, solar power and 

biomass, and in new technologies, as in the Smart Grids project. More than just protecting the 

environment, Cemig believes in transforming the world into an even better place than it is today.

Brought to you by 

Green Investment Potential in Latin America 

Latin America and the Caribbean are made up of 41 

countries where 570 million people live. 

Some experts consider the region to be the epicentre 

of unsubsident solar and this alone, makes this region 

a natural home for clean energy investment. 

Investment in Clean Energy for Latin America 

Over the past 20 years 

Latin America has 

embraced the challenge 

of green growth 

And while obstacles remain, its successes pay 

testament to the region’s commitment 

to a greener and more sustainable Latin America 

Latin America is fast creeping 

up the global energy ranks, 

capturing 6% of global clean 

energy investment in 2012 

US$4.6 

BN 

2012 

Clean energy investment is booming in Latin 

America with a huge US$4.6 billion recorded 

in 2012, signalling the region’s potential to lead 

the global clean revolution 

$7.5 bn 

raise 164% 

Investment into countries 

outside Brazil skyrocketed 

by 164% between 2011 and 

2012 to $7.5bn 

In 2012, the region received 

$16.8bn in clean energy 

financing, which brought 

cumulative investment 

to $110bn since 

the start of 2006 

$16.8bn 

$110bn 

2011 2012 

$400 m 

A total of 63 green microfinance institutions are 

operating in Latin America and the Caribbean 

helping expand energy access in the region and 

around $400m has been disbursed to date 

The climate in Latin America 

favours such growth – and copious 

sunshine means the development 

doesn’t need any additional 

government support

"I want to inspire my 

generation to be more 

proactive in protecting 

the environment, 

because we are going 

to inherit a planet less 

healthy than past 

generations have had." 

TELLING MY STORY 

PARRYS RAINES 

Parrys Raines is a 19 year old Australian otherwise known as Climate Girl. An environmental 

educator, writer and blogger, Raines is also a film-maker, a public speaker and an 

environmental law student. She has worked with and been an ambassador for many 

different organisations that are committed to the protection of the environment, animals 

and most importantly people. The list includes Sculpt the Future Foundation, WWF, Earth 

Hour, Billabong, Cool Australia, Enviroweek, Kids Teaching Kids, The Australian Museum and 

Aim for the Stars Foundation. In 2009, aged 14, she launched her educational website 

www.climategirl.com.au. 

“I founded Climate Girl because I felt 

that young people needed to know 

and learn the simple facts about the 

environment,” says Raines. “It also helps 

them to understand the importance 

of living sustainably. I want to inspire 

my generation to be more proactive in 

protecting the environment, because we 

are going to inherit a planet less healthy 

than past generations have had. I want to 

ensure that my generation and the next 

will inherit a planet that is able to meet 

our needs. Climate Girl is not political 

but is inclusive, optimistic, energetic, 

supportive, understanding and tenacious.” 

TAKING ACTION 

The primary focus for Climate Girl is 

to educate young people, to inspire and 

motivate them to take action locally 

on sustainability issues that ultimately 

benefit the communities they live in. 

Benefits gained from these sustainable 

actions, Raines believes, will ensure a 

healthy planet, healthy people and a 

sustainable future. 

“My passion for the environment started 

when I was six years old and over the last 

13 years I have worked extremely hard 

on increasing my knowledge and sharing 

this knowledge with schoolchildren here 

in Australia and from around the world,” 

continues Raines. To help spread the 

awareness of environmental issues and 

sustainability she gives talks and runs 

workshops at schools for free. “I do this 

as a way to give back to the community 

and my goal is to foster the next 

generation to be better informed about 

environmental issues so that they can 

make informed decisions now and in the 

future. I Skype with other young people 

from around the globe who want to ask 

for advice or want to share information. 

12

“I am a three-time Australian 

representative to the United Nations 

Environment Programme (UNEP), Tunza 

Programme and was a keynote speaker at 

their conferences in Norway, South Korea 

and Java. 

In addition, I was a Partner and 

Australian Representative for the 

International Youth Accord on 

Biodiversity. 

“I was a team member of the Plastiki 

expedition. What I learnt as part of this 

experience enabled me take action locally 

and address the issues of plastics in our 

oceans. My proposal to have the single use 

plastic water bottle banned at my school 

was accepted by the school’s principal and 

executive. My three recommendations 

were implemented: (i) install water bottle 

filling stations; (ii) revamp the school’s 

bubblers; and (iii) provide each student 

and teacher with a stainless steel drinking 

bottle with the school’s emblem on it. 

This was the first school in Australia 

to provide drinking bottles as part of 

the solution. Two other schools have 

implemented my model also.” 

INTERGENERATIONAL 

EQUITY 

Raines is working to try to change 

the perception that developing green 

sustainability initiatives and moving 

to a low carbon economy comes at a 

high cost to businesses and families. 

“All generations use our earth and all 

generations must play a part in caring 

for the earth,” she points out. “But the 

present generation must pass on to us, 

the next generation, a planet and all its 

natural resources in as good or better 

condition than they received it; or else 

our future needs will not be met. 

“My work to educate other young 

people and those in my community is 

about bringing climate change issues 

more to the forefront and to discuss 

these issues with decision-makers and 

work alongside them to ensure that 

intergenerational equity is an integral 

part of their decision-making. I would 

like to see the implementation of 

concrete measures that will ultimately 

protect the rights of future generations, 

especially those from developing nations. 

"All generations use our 

earth and all generations 

must play a part in caring 

for the earth." 

“I want intergenerational equity to 

become part of everyday language and 

the main motivation behind every 

business, school and government agency 

decision-making process.” Raines 

hopes that this will encourage more 

intergenerational communication 

and bi-partisan leadership. “I believe 

young people should be part of 

all decisions that impact them 

today, but most importantly in the 

future. Intergenerational equity and 

intergenerational communication are 

vital to a sustainable future. 

“I would also like to see environmental 

laws strengthened to ensure that longterm 

sustainable solutions and initiatives 

are implemented and protected. I want 

to encourage more young people to 

push for low carbon, sustainable, climate 

resilient developments alongside the 

necessary economic solutions. This 

would ensure that future generations 

will be better protected from the 

impacts of climate change. I want to 

see intergenerational equity demanding 

all decision processes be ambitious and 

equitable. All generations have different 

responsibilities and capabilities, and 

current local leaders need to ensure 

and understand that is imperative that 

the decisions they make in terms of 

sustainable development are made with 

future generations in mind and are fair, 

equitable, transparent and economically 

sound. 

“I am optimistic that our global 

community will be able to change 

the political will that is required for a 

cleaner, smarter and sustainable future – 

because if we don’t, we face irreversible 

damage to the planet and that is not 

acceptable.” 


Combating climate change 

SUPPORTING C 

AND REGIONS 

Throughout the world, cities and regions 

are central to the energy transition. 

Recognising the crucial role they can play 

in the move to a low-carbon economy, 

the EDF Group provides them with 

concrete, customised solutions that help 

combat climate change. 

As a leading producer of low-carbon energy with an 85%(1) 

carbon-free energy mix, the EDF Group concurs with the view that 

cities and regions have a central role to play in fighting climate 

change. CO 2 

emissions are a global issue but reducing them calls 

primarily for local solutions that are tailored to local conditions and 

therefore more effective and more acceptable to the public. 

With their expanding populations and growing economies, 

cities – both old and new – must now take a comprehensive 

approach to energy that encompasses quality of life, mobility, 

housing, poverty reduction, social inclusion and biodiversity. This 

approach applies to all their projects, large and small. Meanwhile, 

regions are also taking the new approach on board to meet the 

challenges of ensuring social cohesion, secure energy supply and 

regional development while reducing environmental impact 

and energy spending. To address all these issues, the EDF Group 

considers it has a duty to do more than simply supply power. 

(1) 95.9% in France 

EDF AND THE R20 

The EDF Group believes in working with regions 

and cities to test innovative energy solutions. The 

Group has been a partner of the R20 – Regions for 

Climate Action since the organisation’s inception. 

The work of the R20 ties in with two of EDF’s 

major concerns: low carbon electricity to fight 

climate change and the local and regional focus of 

its activities. 

REGIONAL OUTREACH AS PART OF EDF’S DNA 

Founded in France in 1946, whilst building a vast hydropower 

programme in order to supply a devastated mainland France with 

the energy needed for post-war reconstruction, EDF was born. 

The resulting regional focus shaped the way EDF operates and 

underpins its overall assessment of challenges and goals, vision of 

the public interest, ability to address issues on different scales and 

attention to resource sharing and dialogue. 

As the world moves to bring about the energy transition in order 

to tackle climate change, EDF’s longstanding relationship with the 

regions is again coming into its own. The Group works closely with 

elected officials and the public at large – its primary stakeholders – 

to devise and provide local energy solutions tailored to the specific 

features of the regions with which it works. 

In eastern Morocco, for example, the Group and its partners are 

engaged in renewable energy and energy efficiency projects. 

The focus is on building performance, consumption reduction 

and street lighting. But combating climate change requires more 

than technical solutions; it also involves changing behaviour. The

ITIES 

EDF Group is therefore working in partnership with ADEME and 

its Moroccan counterpart ADEREE to support these Moroccan 

projects by raising public awareness of energy and climate issues 

and the need to control energy spending. EDF and its partners are 

also drawing up guidelines in line with the country’s new thermal 

regulations to ensure that buildings are designed from the outset 

to be more energy efficient and consume less. 

INNOVATING ACROSS THE BOARD 

In France’s north-eastern Moselle department, 150,000 people 

commute to Luxembourg every day by car. To help cities and 

regions achieve their sustainable mobility goals, the EDF Group 

is engaged in a programme aimed at switching from fossil fuels 

to electricity, focusing transport policy on electric systems and 

reducing CO 2 

emissions in cross-border areas. 

As part of the European Lites (LED-based intelligent street lighting 

for energy saving) research programme, EDF is working with the 

city of Bordeaux to introduce a new automated street lighting 

system. The programme will install 44 new all-LED street lights 

in the Jardins de Carreire pilot site in the city’s western suburbs. 

The light level will be regulated according to the presence of 

people in the area. The technology delivers security and safety 

while reducing CO 2 

emissions and cutting the electricity bill by an 

expected 70%. 

In Chambéry, a Group subsidiary, EDF Optimal Solutions, has just 

refurbished more than 41,000 m2 of buildings belonging to the 

French Ministry of Defence. Over a period of two years, work was 

carried out to insulate the premises, install a heating network 

supplied by a wood-fired boiler and lay solar carpets on all 

roofs to heat water. A building management system controls all 

installations. The estimated gains are a 50% cut in CO 2 

emissions 

and a 46% cut in energy consumption. If these targets are not met, 

the EDF subsidiary makes a commitment to pay the difference. 

A CENTRE OF EXCELLENCE 

FOR SUSTAINABLE CITIES 

IN SINGAPORE 

For the Housing and Development Board in 

Singapore, EDF developed an urban modelling 

tool that encompasses and combines a 

number of goals: renewable energy use in 

buildings, energy network management, 

water management and sustainable mobility. 

The software uses virtual augmented reality 

to simulate a range of scenarios that help 

local elected officials and their technical 

departments gain a better overview of the 

issues and support their decision making 

process. In addition, EDF has opened an 

Asian Sustainable Cities Centre of Excellence 

in Singapore. 

THE EDF GROUP WORKS TO 

PROMOTE UNITED NATIONS 

RECOGNITION OF CITIES 

AS A NEW SUSTAINABLE 

DEVELOPMENT OBJECTIVE 

Photo credit : EDF – Philippe Eranian design

THE FUTURE IS PRICELESS - 

WE HAVE THE POWER TO KEEP 

GLOBAL WARMING BELOW 2°C 

In 2013, the United Nations Environment Programme initiated a joint project with Magnum Photos, entitled 

“WE HAVE THE POWER”, to showcase some of the solutions already being implemented to stay within the 

2°C limit. 

This collaboration harnessed the talents of some of the best photographers in the world to capture activities 

by the United Nations Environment Programme (UNEP), the United Nations Framework Convention on Climate 

Change (UNFCCC), UN-Habitat, the Climate and Clean Air Coalition to Reduce Short-Lived Climate Pollutants 

(CCAC), the Copenhagen Centre on Energy Efficiency (C2E2) and their partners to mitigate climate change 

through renewable energy, energy efficiency, sustainable transport and reduction of short-lived climate 

pollutants such as methane. 

From market transformation for energy efficient lighting in Chile to bus rapid transit improvements in Lima, 

these stories show solutions being enacted, but which need to be scaled up and replicated around the world 

to help close the gap in climate action. 

WHERE: Plaza Mayor, Jirón de La Unión Cuadra 3, Lima, Peru 

WHEN: From 1 to 12 December 2014


PERU: 

A TRANSFORMATIVE 

GLOBAL AGENDA 

By Manuel Pulgar-Vidal, Minister of State for the Environment, Peru, and 

President of COP20-CMP 10 

For the last 20 years, Peru’s economy has grown at an average yearly rate of 5.4 per cent. At 

the same time, poverty and extreme poverty rates have dropped dramatically, by 35 and 12 

per cent respectively. These extraordinary figures explain why Peru is considered a model 

country and one of the success stories in Latin America. Now, to maintain this growth, Peru 

needs to align its internal economic interests and processes with global tendencies, which 

are increasingly leading down the path of a green economy and sustainable development. 

Pursuing a sustainable development 

path implies the introduction of 

clean technologies and more efficient 

productive and industrial processes, 

while taking into account the country’s 

own natural resource endowments. 

It also means, in the short term, that 

we must align our economic, social 

and environmental agendas with the 

upcoming sustainable development 

goals in the post-2015 world. By 

pursuing this clear and conscientious 

economic growth path, Peru will 

remain an international model albeit, 

this time, an international sustainable 

development model. 

LEADING THE CHANGE 

It is no coincidence that Peru took on 

the Presidency of 20th session of the 

Conference of the Parties (COP20). 

We have a clear and present interest 

in adopting a sustainable development 

model that mitigates emissions and 

increases resilience and adaptation, 

not only because 95 per cent of all 

natural-disaster-related deaths occur in 

"We have a clear and 

present interest in adopting a 

sustainable development 

model that mitigates 

emissions and increases 

resilience and adaptation." 

developing countries but, particularly 

in our case, because Peru is the third 

most vulnerable county to climate 

change worldwide. Floods, droughts, 

landslides and other natural disasters – 

triggered by seasonal variations and by 

El Niño’s southern oscillation – threaten 

infrastructure, food safety, clean water 

availability and the provision of basic 

services. Peruvian glaciers have also 

experienced a rapid retreat, having lost 

40 per cent of their land surface since 

the 1970s, impacting water availability 

and energy generation. 

Short- and long-term welfare and 

growth are intrinsically linked to 

the adoption of climate friendly and 

sustainable policies. Peru is facing this 

challenge head on, assuming a lead 

role by taking on the Presidency of 

COP20, but also by assuming the Co- 

Presidency of the Green Climate Fund, 

cornerstone of the new global financial 

architecture. 

Green investment, mostly focused 

on energy and city infrastructure, is 

rapidly changing the global investment 



Peru has a plan to install half a million solar panels to families in the rural Andes and Amazon 

landscape, fostering innovation in new 

markets and critical industries such as 

energy, and spurring a high level of 

economic dynamism. The effect is to 

create highly productive jobs, while at 

the same time stemming or reducing 

emissions. 

235MW, Peru has a plan to install half 

a million solar panels to families in the 

rural Andes and Amazon, thus improving 

the lives of our most vulnerable 

population and setting up the framework 

for a low emissions future. 

MAJOR POLICY ADVANCES 

COP20 represents an opportunity to 

consolidate and bring to the forefront 

advances made in our internal climate 

agenda. For example, since deforestation 

For developing countries, and especially 

for rural areas not currently connected 

to national energy grids, renewable 

energy projects increasingly represent a 

competitive and low-emission solution 

to providing basic services to the most 

vulnerable population. In addition to 

launching solar plant projects to produce 

"One of the key schemes in 

place to promote mitigation is 

the national forest investment 

programme." 

18


WORKING FOR TANGIBLE 

PROGRESS 

COP20 represents not only 

Peru’s vision for a sustainable 

future, but it encapsulates the 

whole Latin American region’s 

commitment to development, 

growth, environmental 

stewardship and inclusion. 

In order to successfully fulfil 

the Presidency role, Peru is 

seeking clear advances in the 

negotiations, to get as a result 

a draft of the new climate 

agreement to be signed in 2015. 

We will pursue: 

The recognition and 

systematisation of good 

practices worldwide on 

mitigation in order to 

consolidate successful 

measures 

The establishment of 

a worldwide agenda 

for adaptation to the 

consequences of climate 

change 

The promotion of green 

financing for climate change, 

capitalising and mobilising 

funds from the Green Climate 

Fund 

The strengthening of 

preparations for the Intended 

Nationally Determined 

Contributions process, and 

The consolidation of advances 

made so far in protecting 

the world’s forests (including 

REDD+). 

and land-use change are the leading 

source of emissions of greenhouse 

gases in Peru, and in many developing 

nations, one of the key schemes in place 

to promote mitigation is the national 

forest investment programme, which is 

designed to protect 54 million hectares 

of forested lands. This plan works with 

"The Innovation Forum is one 

of the crucial spaces in which 

governments’ climate ambitions 

can be matched with the private 

sector’s aspirations." 

indigenous peoples and small farmers to 

stem the ultimate social and economic 

drivers of deforestation and achieve 

the right balance between sustainable 

management and protection. Peru is 

signing agreements worth hundreds 

of millions of dollars with developed 

nations, such as Norway, through a Forest 

Investment Program that will provide 

the funds to implement the national 

forest protection agenda. 

Peru is also making major strides in 

consolidating and finalising a National 

Climate Change Strategy, a Biological 

Diversity Strategy, a Strategy against 

Desertification and Drought, and the 

National Strategic Plan on Forests and 

Climate Change, which will coordinate 

many initiatives already under way. 

Peru is also advancing rapidly with 

its Intended Nationally Determined 

Contributions and a Green Growth 

Strategy, establishing precise targets 

for mitigation and clear policies for 

adaptation, both underpinned by 

PlanCC, a major study of current 

opportunities for mitigation across 

critical industrial sectors. 

THE WORLD MOVES 

FORWARD 

Governments, civil society and 

the private sector must all come 

together to articulate their positions 

and contribute resolutely to the 

global decision-making process that 

is essential to tackling head-on the 

causes and consequences of climate 

change. A sustainable future, but 

even more urgently, our Pre-2020 

ambition, requires dynamism and 

concrete actions, and this is precisely 

where the private sector plays a key 

role. Lima seeks to be recognised as 

providing the opening for other sectors 

to be included in the debate, and for 

their voices to be heard. In order to 

coordinate this work and take concrete 

steps to achieve the Pre-2020 ambition, 

Peru intends to launch a transformative 

programme for action, an innovative 

coordination effort designed to make 

strides on these and other issues 

discussed in the Workstream 2 of the 

Durban Platform for Enhanced Action. 

The Innovation Forum is one of the 

crucial spaces in which governments’ 

climate ambitions can be matched 

with the private sector’s aspirations, 

in order to design workable solutions 

to mitigation and adaptation. Such 

coordination is essential to prevent us 

from surpassing the 2°C threshold. 

Manuel Pulgar-Vidal is Minister of State 

for the Environment in Peru and a lawyer 

specialising in environmental law and policy. 

Former positions have included Executive 

Director, Peruvian Society for Environmental 

Law; President, Inter-American Association 

for Environmental Defense; President, 

Permanent Seminar on Agricultural Research; 

Director, National Fund for Natural Areas 

Protected by the State, PROFONANPE; 

and Alliance Director, Tropical Andes. He 

teaches environmental law, natural resources 

management and mining, energy and the 

environment, and is Programme Coordinator 

at the Pontifical Catholic University of Peru. 

The Ministry of Environment, Peru, 

endeavours to promote environmental 

conservation, and in particular to ensure 

the sustainable, responsible and ethical use 

of natural resources. Moreover, it aims to 

contribute to social, economic and cultural 

development in relation to the environment, 

thereby ensuring that future generations are 

able to enjoy a balanced and sustainable life. 



NEW COMMITMENT 

TO RISE TO THE 

CLIMATE CHALLENGE 

By Lila Karbassi, Head, Environment and Climate, UN Global Compact 

Our collective will to rise to the climate challenge has never been stronger. The major 

challenges of climate change are now well understood. Scientists have shown that if 

nothing is done, we will collectively face great climate insecurity. However, there are five 

trends that inspire new hope for global progress towards meaningful action and a binding 

climate agreement. 

World governments have pledged to 

limit the increase in global average 

temperature to 2°C above pre-industrial 

levels. However, with the current 

trajectory of greenhouse gas emissions, 

we will have even warmer temperatures 

by 2100 – 3-4°C above the base level. 

The consequences of climate change are 

already being felt around the world, and 

an increase of 3-4°C would cause even 

more pronounced impacts related to 

food security, water supply, the frequency 

and intensity of storms, drought, and the 

displacement of people in particular in 

the most vulnerable countries. 

FIVE MAJOR TRENDS 

The question that arises is, are we able 

to cope with this challenge? There is no 

universal answer. However, here are five 

trends that have led me to believe that our 

collective will to rise to the challenge of 

climate change has never been stronger: 

Citizens are mobilising. The People’s 

Climate March in September 2014 

saw 400,000 people in the streets of 

New York, and thousands of others in 

cities around the world, collectively 

demanding action on climate change. 

Citizens have been mobilised on 

climate change in the past, but this is 

the first time people from all regions 

of the world publicly demonstrated in 

a collective manner their willingness to 

influence political decisions on climate 

action. 

Major countries are committing to reduce 

emissions. China, the largest emitter 

of greenhouse gases in absolute terms, 

expressed for the first time that it was 

ready to act, and pledged in September 

2014 to cut its emissions by 45 per cent 

compared to 2005 levels. The USA, the 

biggest per capita emitter, has pledged 

to implement more stringent emission 

standards to cut carbon pollution from 

power plants. Together, China and the 

USA, which represent over 40 per cent 

of global greenhouse gas emissions, have 

engaged in historic bilateral agreements 

on climate issues. The European 

Union also recently strengthened its 

commitment on climate change by 

agreeing to a 40 per cent reduction of 

emissions by 2030. 

Solutions have gone to scale. Lowcarbon 

solutions are expanding quickly 

and at competitive rates. 20 per cent of 

energy consumption worldwide comes 

from renewable energy, including 10 

per cent from modern technologies 

such as solar and wind. As pointed out 

at the UN Private Sector Forum, the 

cost of solar photovoltaic electricity is 

now equal to or less than the cost of 

electricity from other sources powering 

electric grids in at least 79 countries. 

What were once seen as emerging 

solutions – hybrid and electric vehicles, 

LED lights, wind turbines – have gone 

mainstream and are now part of our 

everyday lives. 

Finance recognises the risks. For the first 

time, a coalition of investors representing 

US$500 billion of capital has committed 

to measure and report on the carbon 

intensity of their investments and 

redirect part of their capital towards 

low-carbon businesses by 2015. This 

goes hand in hand with new financial 

mechanisms that are taking hold. For 

example, so-called ‘green bonds’ – issued 

by commercial banks, investment and 

20


development funds – allow for ‘green’ 

investments to be made on a larger scale. 

Companies are positioning themselves 

as Climate Champions. A fraction of 

multi-national companies on the market 

are positioning themselves as leaders 

in the fight against climate change. 

For instance, a group of 35 companies 

are engaging strongly for the first 

time through the Caring for Climate 

initiative on the issue of carbon pricing 

– one of the most effective economic 

measures to address climate change. 

These companies have committed to set 

an internal carbon price high enough to 

significantly influence their investment 

decisions and reduce their emissions, 

publicly support policy mechanisms 

that lead to a carbon price on the 

market, and communicate transparently 

on progress in these two areas. And, 

again for the first time, large companies 

and industrial groups are taking steps 

to leave chambers of commerce and 

business associations that oppose 

progressive policies on climate. 

These five trends – citizen engagement, 

action from major emitting countries, 

the mainstreaming of low-carbon 

technologies, investor action and 

concrete commitments from the private 

sector – did not exist in 2009 when 

countries came together in an attempt 

for a new climate agreement. They do, 

however, exist today. 

PROSPECTS FOR COP21 

An effective and binding agreement 

to be reached at COP21 in Paris 

in 2015 is possible. Much depends 

on countries’ willingness to reduce 

greenhouse gas emissions, to finance 

an energy transition, to put in place 

fiscal mechanisms. However, much also 

depends on companies. Business has a 

key role in climate action. Throughout 

next year, the UN Global Compact 

will mobilise businesses and organise 

the Caring for Climate Business Forum 

during COP21. More than 1,500 

companies will be gathered to show 

that they are ready for a new global 

economy that accounts for climate 

change. A preparatory business meeting 

to COP21 will take place in May 2015 

at UNESCO in Paris. 

The collective will to rise to the 

challenge of climate change has never 

been stronger – the world is eager 

for meaningful action on climate 

change. Business leaders are invited 

to join Caring for Climate, become 

champions of carbon pricing, support 

climate policies, reduce greenhouse 

gas emissions in line with the science, 

and come to the Caring for Climate 

Business Forum in December 2015 

during COP21 in Paris. 

"Much depends on 

countries’ willingness to 

reduce greenhouse gas 

emissions, to finance an 

energy transition, to put in 

place fiscal mechanisms." 

The People’s Climate March in September 2014 saw 400,000 

people in the streets of New York, and thousands of others in cities 

around the world, collectively demanding action on climate change 

Lila Karbassi is Head of Environment 

and Climate at the United Nations Global 

Compact, the UN’s corporate responsibility 

initiative for businesses that are committed to 

aligning their operations and strategies with 

ten universally accepted principles in the areas 

of human rights, labour, environment and 

anti-corruption (over 12,000 participants 

from over 145 countries). Ms. Karbassi has 

extensive experience in the field of environment 

and climate change. She was in charge of the 

Rio+20 Corporate Sustainability Forum 

and currently oversees Caring for Climate, 

the UN's business leadership initiative aimed 

at advancing the role of the private sector 

in climate change. Caring for Climate is 

comprised of 400 companies from 60 countries. 

Caring for Climate was launched by UN 

Secretary-General Ban Ki-moon in 2007, and 

is the UN Global Compact, UN Environment 

Programme and the secretariat of the UN 

Framework Convention on Climate Change’s 

initiative to advance the role of business 

in addressing climate change. It provides a 

framework for business leaders to implement 

practical climate change solutions and help 

shape public policy. Chief executive officers who 

endorse the initiative are prepared to set goals, 

develop and expand strategies and practices, and 

to publicly disclose emissions. The Caring for 

Climate Business Forum is held every year at 

the UN Climate Change Conference (COP/ 

CMP), providing a platform for dialogue and 

action among business, investors, civil society, 

the UN and Government officials. Caring for 

Climate is endorsed by nearly 400 companies 

from 60 countries. 

www.caringforclimate.org 



TECHNOLOGY: 

A KEY COMPONENT 

ON THE ROAD FROM 

LIMA TO PARIS 

By Jukka Uosukainen, Director, Climate Technology Centre and Network 

(CTCN), Copenhagen 

Negotiations for the new global climate deal are intensifying by the day and governments 

are convening in Lima, Peru for the last official political negotiations before the Paris 

Climate Conference in December 2015. 

This year, the Parties discussed for the 

first time in the Convention’s history, 

substantive technical issues in the form 

of Technical Expert Meetings (TEMs) 

under the Ad Hoc Working Group on the 

Durban Platform for Enhanced Action 

(ADP). Policies and actions regarding 

renewable energy, energy efficiency, 

urban structures, carbon capture and 

storage, and methane and HFCs, etc. were 

debated between governments and other 

important stakeholders. Meetings were 

very welcomed events, where the leading 

companies and institutions from private 

sector and civil society were able to 

present their solutions and views on key 

mitigation and adaptation issues. 

The general perception of those 

meetings was very positive. Governments 

learned about relevant technologies and 

successful policies, as well as about some 

challenges and barriers related to finance 

and technology transfer. In the end, there 

was overwhelming support for these 

meetings to be continued until Paris and 

even beyond. 

TECHNOLOGY MECHANISM 

READY TO SERVE 

Many participants referred to the fact 

that discussions should be more clearly 

linked to the existing Technology 

Mechanism of the UNFCCC, namely 

the Technology Executive Committee 

(TEC) and the Climate Technology 

Centre and Network (CTCN). 

Representatives of these bodies have 

indeed already contributed to the 

Technical Expert Meetings and provided 

status reports. 

Both the TEC and the CTCN stand 

ready to include the outcomes of the 

TEM meetings in their own work 

programs and actions. When working 

with the developing countries to 

respond to their climate technologyrelated 

requests, the CTCN can inform 

the National Designated Entities (the 

national CTCN focal points selected 

by each country) about relevant policy 

options, which could enhance the 

transfer and dissemination of climate 

technologies in their countries. As these 

policies have already been debated by the 

Parties, they enjoy large support among 

most countries. It is then for the country 

itself to choose appropriate options 

according to its national circumstances. 

Let me emphasise here, that the assistance 

CTCN provides to developing countries 

is based entirely on a country-driven 

principle. That means that any developing 

country may submit a climate technology 

related request or question to the CTCN, 

and the Centre will mobilise experts 

from among its global network to provide 

specialist services (at no cost to the 

country), including: 

developing analytical tools, policies 

and plans; 

providing tailored capacity building; 

and 

facilitate linkages with countries 

or initiatives with valuable, relevant 

experience. 

22


Requests for assistance can by conveyed 

by the NDE on behalf of a local, national 

or regional entity – be it an academic 

centre, NGO, private or public institution 

- as long as it is deemed relevant to 

a country’s national climate change 

strategy. CTCN is already working with 

over twenty developing countries to 

provide technology solutions, and more 

requests are arriving weekly. The themes 

of the requests correlate well with areas 

under discussion in the negotiations: 

assessing policies for energy efficiency; 

linking climate actions to urban air 

pollution; climate resistant land use in 

rural communities; climate proof waste 

management; and green cooling. Many of 

these technical assistance initiatives will 

lead to concrete climate investments with 

the support of financial partners such as 

the Global Environment Fund (GEF) and 

the regional development banks. 

CLIMATE TECHNOLOGY 

NETWORK TO CONVENE 

ALL CENTRES OF 

EXCELLENCES 

But outcomes of the Technical Expert 

Meetings (TEMs) should also result in a 

more sustainable and long lasting impact 

on the structure of the climate convention 

and its negotiation processes. All of those 

who contributed to the dialogues between 

governments and stakeholders should 

systematically be engaged in the future 

negotiation processes beyond the Paris 

agreement. In 2010, the Parties in Cancun 

mandated that the CTCN facilitate a 

network of national, regional, sectoral 

and international technology entities, 

organisations and networks to support 

the work of the Convention’s Technology 

Mechanism. We have begun to collaborate 

with numerous Climate Technology 

Network members, including international 

organisations such as the World Intellectual 

Property Organization (WIPO) and the 

Renewable Energy and Energy Efficiency 

Partnership (REEEP), national NGOs, 

and private sector entities. Many of the 

Network members actually serve as centres 

of excellence in the exact themes discussed 

at the TEM meetings. It is therefore 

natural, that further and more structured 

inputs from specialised organisations could 

be arranged through the architecture of 

the Technology Mechanism. 

CTCN is providing tailored 

capacity building in Small 

Island Developing States 

including Samoa 

ACCESSIBILITY 

TO TECHNOLOGY 

INFORMATION 

During recent meetings, many Parties 

expressed their concern that information 

on relevant climate polices as well as 

proven technical solutions should be 

made available, especially to developing 

countries, in an easily accessible manner. 

Some suggested a special web-based 

service to be launched. 

One of the three main services that 

the Parties have mandated the CTCN 

to deliver is a comprehensive online 

information service for developing 

country authorities. Thus, the CTCN 

will launch the first phase of this online 

resource, ctc-n.org, during the Lima 

COP20. The information service serves 

as an easy, accessible platform for Parties, 

and guides them through relevant and 

objective climate technology information 

from multiple existing sources and 

providers. Naturally, the system also serves 

as an entryway to all CTCN services as 

well. I hope that those participating in the 

Lima COP will have an opportunity to 

familiarise themselves with this resource. 

FUTURE OPTIONS FOR 

THE CONVENTION’S 

TECHNOLOGY MECHANISM 

For COP21 in Paris to be successful, 

and in order to respond with urgency 

to the technology challenges of climate 

change, we must move faster and work 

more extensively in our joint efforts 

for technology transformation. Signals 

from many developing countries in the 

negotiations already provide us with 

some direction. In providing technology 

assistance, we must be able to serve all 

countries in a language in which they can 

communicate. We need to build awareness 

of our service offerings so that countries 

can avail themselves of useful and relevant 

assistance. We need to understand and take 

into account endogenous technologies 

and their potentials. And we need to 

build and support capacities for climate 

technology transfer that are customised 

for local circumstances. 

The CTCN has allocated considerable 

resources for convening different 

technological communities and 

stakeholders on a regional basis in 

order to learn from existing efforts 

and needs. Similarly, we have recently 

launched a special program to support 

least developing countries in building 

their capacity to assess and define their 

national climate technology needs, 

so that they can best make use of the 

assistance of the CTCN and its many 

partners. Furthermore, we respond 

to assistance requests in all six UN 

languages in order to make it as easy as 

possible to access our services. 

We now ask developing countries to come 

forward, utilise available services, encourage 

your academic, NGO, and private sector 

partners to join climate-oriented networks, 

and engage with initiatives, such as the 

CTCN, to contribute to our common and 

urgent effort. 

Jukka Uosukainen has worked in 

international environmental fields for 

more than two decades. He worked as the 

Environmental Advisor for the Finnish Official 

Development Cooperation in 1990’s and then 

joined the Ministry of the Environment of 

Finland as a senior negotiator and Director for 

International Affairs Unit. In this position he 

has served as facilitator and chairman at several 

climate UNFCCC negotiations and UNEP 

conferences. In early 2014, Jukka Uosukainen 

was nominated as the first Director for the 

Climate Technology Centre and Network. 

The Climate Technology Centre and 

Network (CTCN) is the operational arm 

of the UNFCCC Technology Mechanism 

and it is hosted and managed by UNEP in 

collaboration with UNIDO and with the 

support of 11 Centres of Excellence located in 

developing and developed countries. 



CLIMATE 

FINANCE 

AND TRUST 

By Héla Cheikhrouhou, Executive 

Director, Green Climate Fund (GCF) 

There are two key issues that need to be on everyone’s 

agenda throughout the next twelve months: climate finance, 

and trust. Further pledges on climate finance will build the 

trust needed for full cooperation between developed and 

developing countries, and allow successful negotiations to 

culminate in an effective international climate agreement. 

It will come as no surprise to anyone 

that climate finance should be identified 

as one of the major issues for 2015. 

After all, the Green Climate Fund was 

set up precisely to unlock global finance 

and investment for both mitigation and 

adaptation. Funding the global response 

to climate change is a critical part of the 

global negotiations on climate change, 

and the Fund will play a leading role in 

support of the aim of keeping the average 

global temperature increase below 2˚C. 

Climate finance is already growing, 

although not fast enough – in 2013 

just over US$240 billion was invested 

in new clean energies, up from $80 

billion in 2005. But we need to trigger 

further massive investments, particularly 

in the developing world, and developed 

countries have pledged that concessional 

climate finance to developing countries 

should be significant, every year. 

All of this climate financing will support 

a paradigm shift towards low-emission 

and climate-resilient development – 

something that we hope to achieve 

through innovative funding models and 

the deployment of new technologies. The 

"The Green Climate Fund 

was set up precisely to unlock 

global finance and investment 

for both mitigation and 

adaptation." 

Fund is also committed to spending 50 

per cent of its resources on adaptation 

projects, with a particular focus on 

supporting those developing countries 

that are most vulnerable to the devastating 

impacts of climate change, such as small 

island developing states, least developed 

countries and African states. 

This Fund will catalyse climate finance 

flows from the developed to the 

developing world. These flows will 

come from developed countries, but also 

from private investments, and indeed one 

24


It is expected that by the time COP21 takes place at the end of 2015 in Paris, many countries will have 

made pledges to the Fund 

of the innovative elements of the Fund 

is the focus on promoting private sector 

climate investment through our Private 

Sector Facility, identifying and helping to 

overcome barriers to investment so that 

private capital can drive transformational 

change. But we need deeply concessional 

public funds from developed countries, 

and this is what we are seeking in our 

resource mobilisation which remains 

open to additional contributors – 

pledges from contributing countries 

that will allow us to welcome funding 

requests in early 2015. 

"The Fund is committed 

to spending 50 per cent 

of its resources on 

adaptation projects." 

The good news is that some countries 

have already demonstrated their 

backing to the Fund. Other nations are 

preparing to follow suit with the size 

of their support commensurate with 

their responsibilities for climate change 

and their capabilities in respect to their 

economies. We confidently expect that 



by the time COP21 takes place at the 

end of 2015 in Paris, other countries 

will have declared their intentions to 

contribute to the Fund, and will have 

announced pledges. 

BUILDING TRUST 

The Green Climate Fund is not the 

only piece of the puzzle of course. We 

need ambitious and progressive national 

strategies, as well as enlightened investors 

and banks, and various support systems. 

Most of all, we need political harmony 

between the countries that are part of 

the UNFCCC agreement that will need 

to be based upon trust. That brings me 

to the second key issue for next year’s 

agenda on climate change: how to build 

trust between countries – the trust that 

will allow us to overcome differences and 

commit to an ambitious international 

agreement where everyone can benefit. 

It is easy to describe the international 

progress on climate change as lengthy. 

We often see only the roadblocks and 

the setbacks. We also see that developing 

countries expect that everyone will 

contribute fairly to solving this 

global problem – and that fairness is a 

prerequisite for trust. 

But I am optimistic about the prospects 

for agreement. And that optimism comes 

precisely from my work with the Board 

of the Green Climate Fund. 

The Fund has been set up as an 

operating entity of the financial 

mechanism of the UNFCCC. Put 

more simply, we are a joint endeavour 

between developed and developing 

countries – equally represented on our 

Board. There have been some tough 

negotiations about how to structure the 

Fund, about the balance of priorities, the 

principles, approaches, and rules that will 

govern our operations. We have had to 

balance the needs of all – from the small 

island states at risk of rising sea levels 

to the large developed countries. And 

progress has only been possible through 

sometimes hard-fought consensus. 

But we have agreed all of the essential 

elements that were needed in order to 

open our initial resource mobilisation 

and open the Fund for business. The 

Fund is therefore not only a means to 

support global action on climate change; 

it is also already a good example of what 

can be achieved through international 

cooperation, when countries work 

together, and in doing so, they build 

trust. 

THE NEED FOR ADDITIONAL 

PLEDGES 

It is our success in achieving consensus 

to build a new financial institution from 

scratch that gives me confidence that on 

a larger scale the 2015 Conference of 

the Parties in Paris can move towards an 

ambitious deal that can save the world 

from the threat of damaging climate 

change. 

"We have had to balance 

the needs of all – from the 

small island states at risk of 

rising sea levels to the large 

developed countries." 

"Developing countries 

expect that everyone will 

contribute fairly to solving 

this global problem – and 

that fairness is a prerequisite 

for trust." 

In the meantime, we need to secure 

additional pledges from contributing 

nations to the Green Climate Fund, and 

we need to build greater trust between 

countries. Climate finance and trust: 

those two elements are inextricably 

linked. Pledges on climate finance 

will build the trust we need for an 

international agreement. 

Ms Héla Cheikhrouhou is the Executive 

Director of the Green Climate Fund. 

With close to 20 years of experience in 

project and development finance, she has 

extensive knowledge of international 

investment flows. In June 2013, the GCF 

Board appointed Cheikhrouhou as the first 

Executive Director of this global financial 

mechanism. In her initial year, she and the 

Board established the Fund’s Headquarters 

at Songdo, Republic of Korea. Ms 

Cheikhrouhou kick-started the Fund’s first 

resource mobilisation process, and reached 

out to developing countries to get ready 

to access the Fund. Her top priority is to 

secure significant pledges from contributing 

countries, foundations and individuals for 

the Green Climate Fund, to start delivering 

programmes and projects that advance the 

Fund’s objectives. 

The Green Climate Fund is a new 

multilateral fund that was established by 

Parties attending the 2010 UNFCCC 

Conference in Cancun, Mexico. The Fund 

is designed as an operating entity of the 

Convention’s financial mechanism. The 

Fund’s purpose is to promote the paradigm 

shift towards low emission and climate 

resilient development pathways by providing 

support to developing countries to help limit 

or reduce their greenhouse gas emissions and 

to adapt to the unavoidable impacts of climate 

change. (See http://news.gcfund.org/) 

26

A BOTTOM-UP APPROACH 

THE WAY TO SUCCESS 

Regione Abruzzo is strongly convinced 

that local governments can play a 

decisive role in the mitigation of the 

effects of climate change, especially if 

we consider that 80 per cent of energy 

consumption and CO 2 

emissions are 

associated with urban activities. 

For this reason a ‘bottom-up’ strategy is 

a top priority, one that starts from the 

base, from individuals and individual 

communities to achieve a strong, 

practical impact in the fight against 

climate change. In this framework, the 

regional governments play a strategic 

role as an intermediate body that 

is aware of the different needs and 

approaches at local level, and coordinates 

actions to meet these specific needs. The 

multilevel governance involves regions, 

provinces and all municipalites. 

Because of its unique characteristics 

– with the involvement of local and 

regional authorities in order to achieve 

the European objectives – the Covenant 

of Mayors is considered by the European 

institutions as an outstanding model of 

multi-level governance and a tool of 

great potential. 

To translate their political commitment 

into concrete measures and projects, 

all 305 Municipalities and the four 

Provinces of Abruzzo have joined 

the Covenant, providing a Baseline 

Emission Inventory (BEI) of the 

territory and committing to submit, 

within one year after the signing, a Plan 

of Action for the Sustainable Energy 

(SEAP) in which they outline the 

main actions hat they intend to take to 

achieve the general objectives laid down 

in the Covenant of Mayors, and the 

specific objectives that emerged from 

the BEI. 

The Covenant of Mayors has produced 

extraordinary results in Abruzzo to date: 

All 305 municipalities in the region 

have implemented concrete actions 

of the Covenant of Mayors, actively 

involving their technical facilities and 

the population 

All four provinces have taken concrete 

actions within the Covenant of 

Mayors and supported municipalities, 

especially the smaller ones, in the 

implementation of the EIB, the 

SEAP and early interventions for the 

reduction of CO 2 

emissions. 

All 305 municipalities and four 

provinces have obtained a first loan 

in an amount proportionate to 

the resident population, and have 

completed about 700 actions carried 

out throughout the region, focusing 

as a priority on the energy efficiency 

measures for schools. 

More than 700 schools in the region 

have benefited from at least one 

intervention of the Covenant of 

Mayors, and this has allowed us to 

disseminate the programme themes 

in schools, in synergy with the 

Energiochi competition. 

In this context, Regione Abruzzo is 

developing a new experimental initiative 

in a municipality of the regional 

territory to quantify the absorption of 

agro-forestry CO 2 

in the region, in order 

to certify local carbon credits, and for the 

creation of platform for a local market of 

voluntary carbon credits from the agroforestry 

area. The objective is to foster 

good practice through remuneration 

systems of voluntary activities aimed at 

the reduction of atmospheric carbon and 

quantified on the basis of additional tons 

of CO 2 

absorbed or not emitted. 

www.regione.abruzzo.it 

"All 305 Municipalities 

and the four Provinces of 

Abruzzo have joined the 

Covenant of mayor’s." 


THE EUROPEAN INVESTMENT 

BANK, UNLOCKING FINANCE 

FOR CLIMATE ACTION 

By Jonathan Taylor, Vice President, European Investment Bank (EIB) 

Attracting private 

investment in climaterelated 

projects through 

leveraging public funds 

is crucial to addressing 

the investment challenges 

associated with globally 

important responses to 

climate change. As the 

largest provider of climate 

finance worldwide, and with 

unique experience in both 

developed and emerging 

markets, the EIB plays a 

significant role. 

at scale also depends on engaging 

institutional investors – portfolio 

investors such as asset managers, pension 

funds, insurance companies and others. 

We have developed innovative climate 

finance products targeting capital 

markets audiences. 

Responding to climate policy imperatives 

and the need to scale up financial market 

involvement, we launched the first ever 

Green Bond in July 2007. Importantly, 

the launch of green bonds by the EIB has 

pioneered the earmarking of proceeds to 

match disbursements for climate action 

projects and provided investors with a 

transparent link between climate action 

lending and funding. The exclusive focus 

of our Green Bonds (Climate Awareness 

Bonds or CABs) have been projects in 

renewable energy and energy efficiency 

– ranging from wind, solar, hydropower 

and geothermal energy generation and 

transmission, to the upgrading of housing 

for energy efficiency purposes. 

Through this approach investors take 

no project risk, as their exposure is to 

the EIB and yields are the same as for 

EIB’s standard bonds. They also have the 

possibility to monitor closely how funds 

are actually disbursed. We have been 

actively engaged in promoting awareness 

of this transparent approach among 

market players, and the Green Bond 

market has welcomed this model, with 

Green Bonds typified by reporting on 

use of proceeds. 

I am particularly proud that the EIB 

has been one of the largest issuers of 

Green Bonds historically, with over 

€7bn equivalent raised to date, across 10 

currencies. The €2.6bn CAB due 2019 

has been the largest outstanding bond in 

the market. 

Over the past seven years, CABs have 

supported 55 projects in 19 countries 

across the globe. One of our success 

stories is a three-year renewable energy 

investment programme in Italy, covering 

the installation of small to medium scale 

wind farms and photovoltaic plants. 

Diversifying the sources of production 

brings substantial environmental benefits 

by helping to increase the share of 

renewables in the energy mix. 

Building on the experience and expertise 

gained through projects worldwide, the 

EIB is uniquely positioned to foster 

knowledge sharing between vastly different 

markets, encouraging others to match our 

traditional long-term investment. One 

of our latest success stories is the €200m 

The EIB recognises that addressing 

the climate finance challenge requires 

mobilisation of long-term capital from a 

broad range of financing sources. Public 

funds alone are insufficient to address the 

issue, and it is clear that the vast majority 

of the financing will have to come from 

the private sector. 

Given constraints facing commercial 

banks, mobilisation of long-term capital 

"The launch of green bonds 

by the EIB has pioneered the 

earmarking of proceeds to 

match disbursements for 

climate action projects." 

28

CABs supported the Enel Green Power project: a 3-year renewable energy investment programme, 

840 MW of new renewable energy capacity installed in 50 locations throughout Italy 

"The EIB has the 

experience, know-how and 

advisory expertise to make its 

tangible contribution in 

delivering climate finance at 

global level." 

Jonathan Taylor has been a Vice President 

of the European Investment Bank since 

January 2013. He is a member of the EIB’s 

Management Committee which draws up the 

Bank’s fi nancial and lending policies, oversees 

its day-to-day business, and takes collective 

responsibility for the Bank’s performance. 

Mr Taylor has particular responsibility for 

the Bank’s activities in Denmark, Finland, 

Ireland, Sweden and the United Kingdom. 

He also leads the Bank’s work in energy, 

climate action, and in other environmental 

lending policies. 

loan to the largest single wind farm in 

sub-Saharan Africa, the Lake Turkana Wind 

Power, expected to generate around 20 

per cent of Kenya’s power and provide 

300MW of reliable, low cost wind power 

to the Kenyan national grid. 

We also play a catalytic role to mobilise 

private finance for climate action each 

time we invest in innovative equity 

private funds. A significant although 

relatively small example is our €25 

million investment in the Althelia 

Climate Fund, which has recently 

invested in the National Reserve of 

Tambopata and National Park Bahuaja- 

Sonene, ‘biodiversity hotspots’ in Peru. 

By restoring 4,000 hectares of degraded 

lands, at least 3,200 tonnes per annum 

of certified zero-deforestation organic 

and fairtrade cocoa will be produced, 

thereby helping to improve the 

livelihoods of 1,100 small farmers and 

their families. 

Building on a unique experience of 

evaluating and financing green investment 

worldwide, we now aim to raise political 

momentum for a meaningful universal 

climate agreement at the UNFCCC COP 

in Paris in 2015. We want to galvanise 

transformative action in all countries to 

reduce emissions and build resilience to 

the adverse impacts of climate change. 

The EIB has the experience, know-how 

and advisory expertise to make its tangible 

contribution in delivering climate finance 

at global level. 

www.eib.org 

The European Investment Bank is the bank 

of the European Union (EU). As the largest 

multilateral borrower and lender, the EIB has 

provided fi nance and expertise for sound and 

sustainable investment projects since 1958. 

The Bank is owned by the 28 member states 

of the EU and the projects it supports help 

to implement EU policy objectives. Support 

to low-carbon and climate resilient growth 

globally is a key priority for the EIB. In 

2013, we invested €19bn in climate action 

projects, and this fi gure reaches €88bn for the 

period 2009-2013. 



PRICING CARBON 

IN CHILE: 

GREEN TAX REFORM 

By Pablo Badenier Martinez, Minister of the Environment, Chile 

Since ratifying the United Nations Framework Convention on Climate Change (UNFCCC) in 

1994 and signing the Kyoto Protocol in 2002, Chile has actively engaged in the establishment 

of robust national policies in response to climate change. The recent ‘green’ legislation has 

many innovative aspects and is establishing Chile as a leader in equitable taxation. 

In 1996, the Government of Chile 

established a National Advisory 

Committee for Global Change, which 

played an important role in formulating 

initial national positions for international 

negotiations and creating national policy 

instruments for climate change. Fifteen 

years later, in 2010, the Climate Change 

Office (OCC) of the Ministry of the 

Environment was established and has 

continued with progress in relevant 

environmental legislation. Now Chile is 

committed to further positive action. 

Progress on climate change initiatives 

in Chile has been especially significant 

recently, and unique in the region. We 

have successfully established a permanent 

national greenhouse gases (GHG) 

inventory system, recursively updated 

as a result of the committed work of 

the ministries and agencies that manage 

critical data to support sectoral policies. 

We have advanced the implementation 

of Nationally Appropriate Mitigation 

Actions (NAMAs, as defined by the 

Convention). Finally, we have conducted 

a national survey to identify public 

needs and support – financial resources, 

capacity building, technical assistance and 

technology transfer – available from the 

international community and deployed 

in the country in the fight against 

climate change. 

CARBON TAX PROVISIONS 

This article particularly discusses an 

important milestone – our recently 

enacted carbon tax law, a cornerstone 

for mitigation actions in our country. 

Our ministry, in close collaboration 

with the Ministry of Finance and under 

the guidance of President Bachelet, has 

introduced a ‘green tax’ as a strong signal 

of our commitment to an equitable, 

sustainable, resilient and, above all, low 

carbon development path. 

"Today it is clear that 

climate change affects such 

aspects as national security, 

social development, 

competitiveness, job creation 

and equity." 

The Bill taxes emissions from stationary 

atmospheric CO 2 

, SO 2 

, NO X 

and 

particulate matter (PM) sources. It 

is aimed at facilities with boilers or 

turbines that, together, add up to a heat 

output of at least 50 megawatts thermal 

(MWt). Specifically, Chile’s CO 2 

tax 

targets large factories and the electricity 

sector, covering about 55 per cent of 

the nation’s carbon emissions. In my 

view, pricing carbon is a crucial element 

in any attempt – local or international 

30


President Michelle Bachelet has noted that equity and justice should be central elements of Chile’s 

climate action 

– to cut emissions and to stabilise the 

atmosphere to secure GHG levels. This 

was one of our main drivers in the 

design of the green tax package. 

In 2009 Chile voluntarily announced 

its willingness to join a global effort 

to mitigate GHG emissions, pledging 

to take actions to reduce, by 2020, 20 

per cent of projected emissions from 

2007 through nationally appropriate 

mitigation actions. The challenge, in 

fact, goes beyond a national effort in the 

context of international negotiations. 

There is currently a growing 

conviction, which Chile shares, among 

UNFCCC parties and the international 

community that all countries must 

shift towards resilient low carbon 

development, especially in light of the 

dire consequences climate change has 

in store for the least advantaged. Today 

it is clear that climate change affects 

such aspects as national security, social 

development, competitiveness, job 

creation and equity. Therefore, as noted 

by President Michelle Bachelet, equity 

and justice should be central elements of 

our climate action. 

Hence, among other things, our tax 

reform aims to internalise a negative 

externality, at the same time as showing 

Chile’s political commitment to 

contribute. Chile is a highly vulnerable 

country, and despite our marginal 

"The design of the tax 

considers the social cost and 

recognises the differences in 

the carrying capacity of the 

local area." 

responsibility in global GHG emissions, 

we are ready to lead the way towards 

resilient low carbon development. 

APPLICATION OF GREEN 

TAXES 

Starting January 2017, a tax will be 

levied on global and local pollutants 

from vehicles and stationary sources. 

Consistent with Chile’s international 

commitments and the observed global 

trends in carbon pricing, Chile has 

set the CO 2 

tax at US$5 per tonne of 

CO 2 

emissions. For local pollutants 

(PM, NO X 

, SO 2 

), the design of the tax 

considers the social cost and recognises 

the differences in the carrying capacity 

of the local area where the polluting 

source is located (maximum people per 

surface area) and the exposed population, 

making it a pioneer tax instrument 

across the world. This translates into a tax 

per tonne that varies by pollutant and 

municipal commune (district). 

Green taxes are recognised internationally 

as a central policy instrument in 

environmental management, since they 



"President Bachelet has 

noted that equity and justice 

should be central elements of 

our climate action." 

have proved to be an ideal way to deliver 

appropriate signals to the market and 

modify behaviours that are harmful to 

the environment. The implementation 

of green taxes is a breakthrough in 

environmental issues in Chile, as it will 

allow producers to internalise negative 

externalities, and improve environmental 

conditions by reducing emissions of 

greenhouse gases. 

But the initiative is not only important 

in itself, by reducing emissions from 

stationary sources; the legislation will 

also provide a clear signal to the private 

sector of the government’s commitment 

to decarbonise the energy matrix. 

Moreover, the implementation of 

this tax will have enormous learning 

benefits. The tax generates not only a 

price signal but also, perhaps even more 

important, requires the state to build 

new institutional infrastructure that will 

boost our monitoring, reporting and 

verification capabilities. 

This type of green tax has a number 

of advantages from the perspective of 

environmental management. It burdens 

the emitter with the external effects 

produced, allowing for the application of 

the ‘polluter pays’ principle. Also, these 

taxes generate the incentive to internalise 

the pollution source that produces 

externalities. More specifically, green 

taxes: 

Recognise the social cost 

(environmental damage) of pollutants 

and emissions 

Correct perverse incentives to pollute 

Promote the application of the 

environmental policy principles 

of polluter pays, efficiency and 

responsibility 

Establish a direct connection between 

pollution and human health problems 

Differentiate territorially, recognising 

the ‘carrying capacity’ of different 

ecosystems, and 

Contribute to the reduction of GHG 

emissions. 

President Bachelet has noted that equity 

and justice should be central elements 

of our climate action. Many have raised 

questions as to how the tax will actually 

affect energy prices in Chile, or how 

the electricity generating companies can 

absorb the tax levy. In the short term, 

we expect companies will absorb the tax 

given the fact that in Chile, the electrical 

market is mostly regulated. Moreover, 

the tax has been constructed as such that 

it is not considered over the variable 

cost of the marginal operation, which 

determines the marginal cost. 

In the long term, after new tenders 

in the electricity sector include tax 

considerations, it is expected that energy 

prices would increase by 0.25 per cent, 

assuming that all other aspects of the 

negotiation stay the same, and that the 

bidders factor in the higher variable costs 

of paying the tax. 

Currently, about 40 countries and more 

than 20 sub-national jurisdictions are 

implementing some type of economic 

instrument to curb CO 2 

emissions. 

Together, these instruments cover 

pricing for almost 6 gigatonnes of CO 2 

equivalent, that is about 12 per cent of 

annual global GHG emissions (World 

Bank Group 2014). In countries such 

as Canada, Denmark, Finland, France, 

Mexico, Norway, Sweden, Switzerland 

and the UK, green taxes are applied 

to global pollutants. In addition to 

seasonal fluctuations, carbon prices 

vary over a wide range depending on 

the implemented scheme, from the 

tax established in Mexico with at least 

US$3.5/t CO 2, 

to US$168/t in the case 

of the similar tax in Sweden. At US$5 

per tonne of carbon dioxide emitted, 

Chile’s tax could be expected to 

provide a low incentive to decarbonise. 

However, we believe the value is 

actually a balanced first attempt to 

provide for a credible price signal. In 

contrast with some other legislations, 

our levy is fixed within a balanced 

international price, between the EU 

ETS value and the Mexican CO 2 

tax. 

This value can of course be increased 

over time, always bearing in mind our 

country’s capacity and our relative 

contribution to global GHG. 

The expected revenue from this tax 

package is estimated around US$163 

million annually by 2018. Consistent 

with our national policy, the tax is levied 

on the more polluting global emissions 

(CO 2 

: 84 per cent) and more polluting 

fuels (coal: 91 per cent). 

Pablo Badenier Martínez was appointed 

Environment Minister of Chile in March 

2014. He is a marine biologist with degrees 

from the University of Valparaiso and the 

University of Chile. He is a published 

author, and has served as Regional 

Director of the National Commission on 

the Environment (CONAMA) for the 

metropolitan area, Executive Secretary for 

the Environment and Land Use at the 

Ministry of Public Works, and Research 

Associate of the Centre for Development 

Studies. Twitter @pbadenierm 

The Climate Change Office (OCC) 

of the Ministry of the Environment, 

Chile, was established in 2010 and 

tasked with a variety of responsibilities, 

both at the national and international 

level: international negotiations at the 

UNFCCC; coordinating the Committee 

of the Clean Development Mechanism’s 

Designated National Authority; serving 

as focal point for the Intergovernmental 

Panel on Climate Change (IPCC) and as 

technical focal point of the Adaptation Fund; 

technical leader for climate change for the 

Global Environment Facility (GEF) and 

technical secretary of the inter-ministerial 

committees on climate change. 

32



FROM AN MDB 

PRACTITIONER’S 

PERSPECTIVE 

By David Wilk, Acting Chief, Climate Change and Sustainability Division, 

Inter-American Development Bank (IDB) 

Multilateral development banks (MDBs) such as the Inter-American Development Bank play 

a key role in climate finance. These institutions channel resources provided by donors, both 

bilateral and large scale initiatives such as the Climate Investment Funds, aiming to catalyse 

and leverage additional funding from international and domestic sources, both public and 

private. This article explains how the IDB takes on its role as a provider and intermediary of 

climate finance to support climate action in the Latin America and Caribbean region. 

MDBs are practitioners of climate 

finance, operating at the interface 

between priorities defined 

internationally by stakeholders and 

donors on the one hand, and clients 

among countries and the private sector 

on the other hand. While climate 

finance is important in its own right 

as a means to facilitate resources for a 

low-carbon/climate resilient transition, 

it is also a critical component of the 

United Nations Framework Convention 

on Climate Change (UNFCCC) 

negotiations taking place at the COP20 

in Lima and towards a final agreement at 

the COP21 in Paris. 

"The focus by contributors 

and clients alike is on the 

need to shift development and 

investment pathways of whole 

sectors and economies, 

contributing to 

transformational change." 

Relative to other investments, climatefriendly 

technologies are often associated 

with barriers that include higher upfront 

costs, a perception of technology 

risks, policy frameworks that favour 

existing carbon-intensive systems, and 

sometimes incremental costs that partly 

result from externalities not being taken 

into account. Barriers are specific to 

countries, to sectors, to different stages 

of the project cycle, and to the relevant 

investor – so there is no individual 

silver bullet. It is clear that a large-scale 

transformation overcoming these barriers 

takes more than access to finance, a fact 

that has led to an increased focus on 

enabling environments and the ‘financial 

ecosystem’. 

The role of MDBs and other facilitators 

of climate finance thus goes beyond 

administering climate funds and 

investing wisely in individual projects. 

Increasingly the focus by contributors 

This article benefitted from the collaboration of Asger Garnak, Secondee at IDB´s Climate Change and Sustainability Division 



"It is imperative to factor in 

climate change mitigation and 

adaptation in all long-term 

investment decisions across the 

IDB’s wide portfolio." 

and clients alike is on the need to shift 

development and investment pathways 

of whole sectors and economies, 

contributing to transformational change. 

This poses new challenges to MDBs, 

which must take a more comprehensive 

approach to collaboration with 

government and private sector clients. 

As responsive climate finance institutions, 

MDBs therefore have to engage in a 

range of initiatives including: building 

capacity and supporting enabling 

environments; strengthening climate 

finance in public and private financial 

institutions; and leveraging and deploying 

climate finance, in particular catalysing 

private finance. Doing all this in a 

coherent manner requires an institutional 

strategy for mainstreaming climate change 

in MDB operations, as well as specific 

measures to ensure transparency and 

accountability, including through tracking 

of climate finance. 

IDB operates in the Latin America 

and the Caribbean region (LAC), 

which is both committed to and has 

vast opportunities for low-carbon 

development, at the same time facing 

pressing needs to enhance climate 

resilience and take measures to adapt 

to unavoidable climate change. There 

is widespread understanding in LAC 

of the multiple benefits of actions that 

simultaneously address climate and 

national priority concerns such as 

competitiveness, energy security, health 

and environmental protection; in short, 

advancing towards sustainable economic 

development. The IDB approach to 

addressing climate change is reflected in 

the IDB Climate Strategy and its Action 

Plan (2012-2015) (see http://publications. 

iadb.org/handle/11319/2065?localeattribute=en). 

It is imperative to factor in climate 

change mitigation and adaptation in all 

long-term investment decisions across 

the IDB’s wide portfolio. Thus, a key 

challenge we face is mainstreaming 

climate change across sectors and linking 

it to cross-cutting priorities such as 

indigenous people and gender issues. 

An important tool to make this happen 

is our environmental safeguard policies, 

whose goal is to systematically reduce 

the climate impacts of all projects and 

ensure that climate change-related issues 

are identified and addressed early on in 

the project cycle. 

ASSISTANCE FOR 

INSTITUTIONAL REFORM 

Enabling environments are needed to 

encourage investments in climate change 

mitigation and adaptation. The IDB 

provides assistance for macroeconomic, 

sectoral and institutional reforms required 

to ensure the development of strong 

regulatory frameworks. These frameworks 

provide the necessary incentives to 

integrate climate change in national 

development planning, and promote 

investments in low-carbon and climate 

resilient activities. Interventions may: 

Improve the analytical basis for 

policy development (identifying 

low-carbon and climate-resilient 

investment opportunities, and 

factoring in economics of climate 

change, vulnerability assessments and 

greenhouse gas inventories). 

Identify institutional gaps and the 

need for capacity building and 

strengthening programmes. 

Promote policy transformation through 

programmatic policy-based loans. 

A programmatic policybased 

loan in Peru. This 

programme helps consolidate 

the country’s institutional 

and regulatory framework, 

while mainstreaming climate 

change in development 

planning and investment, and 

building capacity in the leading 

institutions including the 

development of standardised 

management tools. Three 

loans totalling US$75 million 

have facilitated the active 

engagement of the Ministry of 

Economy and Finance and the 

development of sector climate 

change strategies in key line 

ministries. For example, the 

programme helps pave the 

way for and move forward 

with a US$704 million risk 

management and climate 

change adaptation plan in the 

agricultural sector for 2012-2021. 

A comprehensive fiscal 

sustainability and climate 

change adaptation 

programme in El Salvador. A 

US$200 million loan supports 

the El Salvador government in 

strengthening the integration 

of climate change adaptation 

and disaster risk management 

in the strategies of key 

ministries. This will help the 

government respond to 

natural disasters, which are 

particularly damaging to 

agriculture and infrastructure, 

two of El Salvador’s most 

vulnerable sectors. 

ClimateScope. An initiative 

piloted by the IDB to enable 

policy-makers, investors and 

financiers to assess policy, 

regulatory and investments at a 

country level, the ClimateScope 

index provides structured 

information for low-carbon 

clean energy stakeholders 

across value chains. The tool is 

now being expanded to have a 

global reach. 

34


The planetBanking platform is 

targeted at commercial financial 

institutions to spur the sector’s 

proactive involvement in green 

sectors, combining green financing 

(lending and guarantees), technical 

assistance and capacity building to 

financial institutions. Focus areas 

include steps to reduce climate 

change-derived risk in bank 

portfolios and the development of 

products and services addressing 

climate change mitigation and 

adaptation. Examples of funding 

realised by financial intermediaries 

as a result of the planetBanking 

interventions include certified 

energy efficient buildings in 

Panama and micro hydroelectric 

plants in Honduras. The platform 

has been co-funded by IDB grants 

and co-financed by local partners. 

Energy efficiency financing 

programme for the services 

sector in Colombia. The program 

is an example of a strategic 

IDB partnership with a national 

development bank. The program 

provides a coherent package of 

interventions aimed at scaling 

up the EE market in Colombia 

and raising the demand for 

EE investments by addressing 

investment risks and strengthening 

EE service providers. A combination 

of instruments are applied, 

comprising a concessional 

financing line, an innovative 

insurance instrument guaranteeing 

energy savings, standardised 

contracts for sharing investments 

and energy savings, third-party 

technical review and MRV, and 

extensive outreach to local financial 

institutions and beneficiaries. 

The programme funding of 

US$31 million is a combination of 

concessional and grant funding 

for technical cooperation from 

the Clean Technology Fund, loan 

resources from IDB and from 

Bancoldex, Colombia’s national 

development bank. 

Raise awareness among key private 

and public sector actors of the 

necessity to transform markets and 

scale up mitigation and adaptation 

initiatives. 

Introduce innovative technological 

solutions that incorporate renewable 

energies of a transformative nature. 

SCALING UP FINANCE 

PROVISION 

The IDB plays an important role in 

enabling partner countries’ financial 

sectors to scale up their financing of 

climate initiatives. The IDB works with 

local financial institutions such as national 

development banks and commercial 

banks, which are also key in facilitating 

investment by the private sector. The 

interventions combine the provision 

of targeted financing instruments with 

technical assistance – often made possible 

by grants from donor countries – to 

financial institutions, assisting them in 

areas such as: 

Assessing and structuring potential 

markets for climate-friendly 

investments 

Designing green financing lines and 

risk-mitigation instruments 

Managing climate change risks in 

their operations 

Establishing environmental and social 

safeguard systems, and 

Developing and structuring demand 

for climate-friendly investments, often 

through innovative financial products 

and services geared toward climaterelated 

investments. 

While working with financial 

institutions, it is very clear that to 

transform markets and scale up 

"to transform markets 

and scale up low-carbon 

investments, the whole 

‘ecosystem’ of players needs 

to be mobilised." 

low-carbon investments, the whole 

‘ecosystem’ of players needs to be 

mobilised, engaging not only the 

financial system, but also end-users/ 

investors, technology and service 

providers, and government regulators. 

National development banks (NDBs) 

are increasingly requesting support 

for developing financing strategies 

for sectoral climate change mitigation 

programmes. Currently the IDB is 

financing more than US$1 billion 

in 30 green finance lines for NDBs, 

supporting projects in a variety of 

sectors including sustainable transport, 

renewable energy, energy efficiency 

and sustainable agriculture and forestry. 

NDBs can play a catalytic role in scaling 

up private investments given their 

specific knowledge of local markets, 

outreach and involvement with local 

private financial institutions. 

The Green Climate Fund (GCF) is 

expected to become a key player in 

channelling climate finance in the 

future. The IDB is actively engaging 

with the GCF Secretariat to support 

its outreach and readiness work in the 

LAC region. We will also be taking the 

necessary steps to be able to act as an 

intermediary and implementing entity 

for the GCF in support of public and 

private sector initiatives in LAC, and in 

response to the needs and requests of 

our partners in the region. 



Concentrating Solar Power 

(CSP) in Chile. The project – a 

110 MW CSP tower plant with up 

to 17.5 hours storage capacity – 

constitutes the first CSP power 

plant with storage capacity in 

South America. It will bring down 

the cost of electricity and engage 

energy developers and local 

large-scale offtakers. The financing 

package comprises contributions 

from the Clean Technology Fund 

(CTF), the IDB-managed Canadian 

Climate Fund for the Private Sector 

in the Americas (C2F), the KfW 

Development Bank and the local 

financial sector. Total financing will 

rise to US$420 million, including 

US$200 million from the IDB. 

ECOCASA. A sustainable housing 

programme in Mexico, ECOCASA 

is providing US$210 million to 

boost low-carbon housing in about 

26,600 energy-efficient social 

housing units. The programme 

provides financial incentives and 

technical assistance to housing 

developers, and was recognised 

by the UNFCCC as a ‘Lighthouse 

Activity’. The programme, 

developed by Mexican mortgage 

lender Sociedad Hipotecaria 

Federal, the IDB, the EU and KfW, is 

expected to reduce GHG emissions 

by more than 1 million tons over the 

lifetime of the housing units. 

Innovative REDD+ financing 

mechanisms targeting rural 

communities and SMEs in Mexico. 

Two complementary projects, one 

focusing on small and medium 

enterprises (SMEs) and one on 

rural communities known as 

‘ejidos’, are financed with US$21 

million through a combination of 

grant and loan financing from the 

IDB’s Multilateral Investment Fund, 

the Climate Investment Funds’ 

(CIF) Forest Investment Program 

and the IDB. Financing will be 

made available to finance lowcarbon 

activities in forested areas, 

addressing one of the drivers of 

deforestation. Forest-based SMEs 

will receive assistance to raise 

their productivity while preserving 

their areas’ natural capital. This 

is the first private sector project 

under the CIF’s Forest Investment 

Program and is expected to 

develop models for future global 

replication. 

PROADAPT Sertao in Brazil. This 

project will build climate resilience 

in rural value chains in northeastern 

Brazil’s arid Sertao region 

by offering technological, financial 

and training resources to poor 

farmers and local agricultural 

credit providers. The project 

benefits small-scale agricultural 

producers through six agricultural 

cooperatives and also works with 

local lenders to promote credit 

lines for farmers who invest in 

resilience activities. The project is 

the first initiative under the IDB’s 

umbrella program PROADAPT, 

which is supported by the Nordic 

Development Fund with US$11.6 

million. 

Green Bond securitisation in 

Mexico. The Green Bond project 

being developed by the IDB and the 

International Finance Corporation 

(IFC) with support from the Clean 

Technology Fund involves the 

securitisation of a pool of energy 

efficiency projects developed 

by energy service companies, 

enabling the bundling of relatively 

small scale projects. Through this 

innovative project, the IDB will 

contribute to the development 

of the green bond markets in 

Mexico, encouraging investments 

by different types of investors 

such as institutional or impact 

investors. The proposed Green 

Bond opens a new funding channel 

and helps narrow the gap of longterm 

financing for small-scale 

energy efficiency and self-supply 

renewable energy. IDB involvement 

includes a US$58 million partial 

credit guarantee for the bond, 

making the investment attractive to 

a greater number of investors. The 

structure could subsequently be 

replicated in other capital markets 

in Latin America. Total funding for 

the project is US$127 million. 

Integrated public transit system 

transformation programme in 

Bogota, Colombia. Colombia’s 

capital city will improve its 

public transport system with a 

combination of a US$40 million 

loan made available by the Clean 

Technology Fund, turning a 

hallmark bus system into a more 

efficient and cleaner service. The 

project will finance 282 new hybrid 

or electric buses, reduce fleet 

operating costs by 35 per cent and 

cut greenhouse gas emissions by 

7,000 tons/year – a 46 per cent 

drop. This fleet will provide access 

to improved low-carbon transport 

for some 33,000 passengers per 

day. In a separate initiative, the 

adoption of electric battery buses 

in Colombia is being piloted via 

an investment grant of US$1.5 

million addressing the financial, 

awareness and technological 

barriers limiting the adoption of 

these modern vehicles by private 

bus operators in Colombia. 

The IDB leverages climate finance from 

international and bilateral sources with 

its own resources and funding from 

other sources, thereby mobilising climate 

finance at scale to its client countries. 

IDB has thus contributed to a rapid 

channelling of climate finance to its 

partner countries from a range of sources 

including the Global Environment 

Facility, the Climate Investment Funds 

and other multilateral and bilateral 

sources. Funding is distributed through a 

variety of channels including government 

budgets, public and private entities. 

In 2013, the IDB approved US$1.22 

billion worth of climate finance. As much 

as 82 per cent of the financing came 

from the Bank’s own resources, which 

were boosted with US$222 million 

from external sources, as detailed in the 

Joint Report on MDB Climate Finance for 

36


"The IDB is constantly 

adapting to evolving climate 

finance landscapes, looking 

for ways to stimulate climate 

finance." 

2013. Nearly 90 per cent of our climate 

finance went to mitigation projects 

and programmes. As a reflection of this 

and recognising the need to improve 

the balance between adaptation and 

mitigation, adaptation has been identified 

as the priority focus area in the IDB’s 

climate action plan for 2012-15. 

The private sector is indispensable when 

it comes to mobilising the investments 

needed for the low-carbon transition. 

The IDB uses concessional public 

climate finance to mobilise investments 

from the private sector through 

targeted instruments that address risks 

and barriers which keep the private 

sector from investing in climatefriendly 

projects. Our engagement 

also includes international exchanges 

of emerging and innovative practices 

through collaboration with other 

MDBs as well as with national and local 

financial institutions – both public and 

private – and through participation 

in international initiatives such as 

Sustainable Energy for All. 

We are increasingly looking for smart 

and cost-effective ways to overcome 

barriers. These are often related to risks 

rather than investment costs. The largest 

potential for cost-effective mitigation is in 

energy efficiency, and instruments such as 

insurance and guarantees can be effective 

in addressing risks, when combined with 

other measures such as information and 

strengthening of supply chains. 

Mobilising finance for adaptation and 

enhanced resilience poses a special 

challenge, not least the private sector 

financing of adaptation measures. It is 

difficult but by no means impossible to 

interest the private sector in adaptation 

investment. After all, it is in the selfinterest 

of private sector actors to 

protect their assets and make them 

more resilient. 

FINANCE TRACKING 

The IDB and other MDBs are 

committed to transparent and robust 

climate finance reporting. We are jointly 

developing and publishing our shared 

climate finance tracking methodology, 

and have been using it for joint MDB 

reporting since 2012. To further 

encourage the scaling up of climate 

finance globally, MDBs are committed 

to upholding transparency in tracking 

and reporting the climate finance we 

provide and to continuously improve 

the consistency and comparability of 

our published climate finance data, with 

tracking of adaptation finance being an 

area that requires further development. 

MDBs dedicate a substantial share of 

overall lending to climate action, having 

collectively financed between US$23.8 

billion and $26.8 billion a year in climate 

actions since we began jointly tracking 

our climate finance flows in 2011. 

Our stakeholders’ focus on climate 

change is reflected in a decision that by 

2015, 25 per cent of the IDB’s lending 

(currently at US$10-12 billion per 

year) will support operations in climate 

change, environmental sustainability and 

sustainable energy, as stipulated by the 

IDB’s 2010 9th General Capital Increase. 

While the IDB has set objectives and 

targets for financing of climate changerelated 

activities, the concrete projects 

and initiatives will always be countrydriven 

and contribute to national climate 

change strategies. The Bank has provided 

between US$1.3 billion and US$2.1 

billion a year in climate finance for the 

past three years. 

As an MDB, IDB is also committed to 

understanding the GHG emissions of 

our financing portfolio. We are working 

with other international financial 

institutions to harmonise our approach 

and methodologies for estimating these 

emissions. Work is expected to continue 

in an effort to harmonise approaches for 

different project types. 

The IDB is constantly adapting to 

evolving climate finance landscapes, 

looking for ways to stimulate climate 

finance and to contribute effectively to 

the necessary low-carbon and resilient 

transition on the ground within our 

region. Like others, we are always 

adjusting our approaches, ‘building 

the ship as we sail it’. We do this by 

working with other MDBs, engaging in 

exchanges on emerging practices, and 

responding to priorities and requests 

from our member governments, national 

development banks and commercial 

financial institutions in our partner 

countries, civil society, donors and 

international organisations including the 

UN system. We cannot claim that we 

have found the Holy Grail of climate 

change, but are eager to share our 

experience, learn from others and discuss 

how we can move forward together. 

David Wilk joined the IDB in 2001 

and currently works as lead climate change 

specialist and interim manager of the Climate 

Change and Sustainability Division. David 

led the development of the Sustainable Energy 

and Climate Change Initiative and Funds in 

2006-07, spearheaded the Bank´s Climate 

Change Strategy and its Action Plan. 

The Inter-American Development Bank 

was established in 1959, and is the leading 

source of development financing for Latin 

America and the Caribbean. The Inter- 

American Development Bank (IDB) is 

helping borrowing member countries adapt 

to climate change impacts and reduce GHG 

emissions through lending operations, technical 

cooperation, and knowledge generation. By 

2015, 25 percent of total Bank lending 

will support operations in climate change, 

environmental sustainability, and sustainable 

energy, as stipulated by the IDB’s 2010 

Ninth General Capital Increase. The IDB is 

working to meet this goal through its Climate 

Change Strategy. 


NAFINSA, PROVIDING 

DEVELOPMENT FINANCE 

FOR MEXICO’S ENERGY 

INFRASTRUCTURE 

Mexico has resolved to embark on 

a series of new legislative reforms to 

make the way for the modernisation 

of all strategic sectors, particularly 

energy, finance, education, labour and 

telecommunications. In the energy 

field, profound reforms have taken 

place in 2014 that will promote growth 

in Mexico, and will require large 

investments in infrastructure for the 

production, transport and distribution of 

energy within the next 15 years. 

In this enterprise, Nacional Financiera 

(Nafinsa), the main development bank in 

Mexico, is undertaking the financial lead 

within the reforms in the energy sector 

including electricity generation, transport 

and distribution. Renewable energies are 

an important priority for Nafinsa. 

Within the Investment Banking 

Division, the Sustainable Projects Area 

is responsible for a project finance 

portfolio covering more than 2GW, 

with a total investment of US$5 billion 

in the renewable energy area such as 

solar, wind, hydro and co-generation. As 

well as energy, the Investment Banking 

Division is also involved in infrastructure, 

such as gas pipelines and industrial plants. 

We work with other development banks 

in Mexico for big projects, not only in 

the energy sector, but other types that 

require large amounts of investment such 

as water infrastructure. 

SPREADING THE RISK 

Nafinsa is renowned as a bank that 

focuses on small businesses, to whom 

it provides funds and guarantees. We 

are involved in the value chains of 

small and medium enterprises, with 

different products such as funding and 

guarantees that work through financial 

intermediaries, banks and non-banks. For 

small projects we rely on commercial 

banks, sharing up to 50 per cent of the 

credit risk through credit guarantees. 

Renewables are high impact projects, not 

only because energy is produced without 

the use of carbon-rich fuel, but in terms 

of technology innovation. We work with 

new and proven technologies in Mexico, 

but also promote the achievement of 

the objectives declared in the Energy 

Reform. Interest in projects of this 

kind is high because companies want to 

obtain green credentials and work for 

long-term stability in energy prices; this 

is a key consideration, because the main 

cost for many companies is energy. 

Finance has now become available, 

through specialised investment funds and 

private equity, that was not obtainable 

two or three years ago in Mexico. Now 

these type of projects are competing on 

a level playing field with other industrial 

or commercial products. 

Nafinsa also provides long-term 

funding not only directly for projects, 

but also to support commercial banks 

that participate in the development of 

renewable energy schemes. 

Nafinsa will continue to participate in 

large-scale renewable energy projects in 

Mexico in conjunction with the most 

important financial institutions, national 

and international, including multilateral 

agencies. The development of energy 

infrastructure, in support of energy 

reforms, is one of the most important 

priorities for Nafinsa. 

www.nafin.com 

38


THE WBCSD URBAN 

INFRASTRUCTURE 

INITIATIVE 

By Peter Bakker, President, the World Business Council for Sustainable 

Development (WBCSD). 

It has become clearer than ever that cities are key to driving real action on climate change. 

One of the most prominent features of cities is that they are taking action now, regardless 

of what happens in global negotiations, involving both public and private sectors. The 

WBCSD’s groundbreaking Urban Infrastructure Initiative (UII) has shown how effectively the 

collaboration between cities and business can work. 

By 2050, 70 per cent of the world’s 

population will live in cities; and cities 

are where the battle for a sustainable 

future for humanity will be won or lost. 

City governments around the world 

are rising to this challenge by pursuing 

ambitious sustainability visions that will 

make them more competitive, resource 

efficient, resilient and inclusive. 

The role of city governments is 

increasingly recognised within 

international negotiations as cities become 

key ‘non-state actors’. In addition, business 

is aware of the exciting opportunity 

city–business collaboration represents and 

an increasing number of leading solution 

providers are working to make lowcarbon 

cities a reality. The WBCSD works 

to catalyse business innovation and action 

for low-carbon cities. 

LATIN AMERICAN 

RESPONSES 

With COP20 taking place in Lima, Peru, 

it is a prime opportunity to focus on 

Latin America. With 80 per cent of its 

population living in cities today, Latin 

America is more urbanised than any other 

region in the developing world. This share 

is expected to rise to 85 per cent by 2025. 

The shift from country to town has 

contributed significantly to Latin 

America’s growth, as economies of 

scale have boosted the productivity of 

expanding cities and reduced the cost 

of delivering basic services to their 

inhabitants. Despite this positive progress, 

important complex challenges remain, 

often linked to the negative consequences 

of rapid growth such as congestion, air 

quality problems, social exclusion and 

public safety issues. Recent extreme 

weather events have also highlighted the 

vulnerability of urban centres across the 

region to a changing climate. 

Luckily, there are excellent examples 

among Latin American cities making real 

progress on addressing these challenges. 

The recent transformation of Medellin in 

Colombia, the successful development of 

the Bogota Bus Rapid Transit system, and 

the City of Rio’s Intelligent Operations 

Center are developments that cities from 

all over the world come to learn from. 

THE NEED FOR A BROAD 

APPROACH 

However, addressing complex sustainability 

issues in practice remains a daunting 

challenge for city leaders. Solutions 

often necessitate major transformations 

in a city’s infrastructure systems – 

including buildings, energy, mobility, 

telecommunications, water, sanitation 

and waste management services – and 

optimising the links between these systems. 

These challenges are coming at a time 

when cities face major difficulties in 

financing infrastructure, particularly in 

view of the constraints on public sector 

resources and commercial debt in the 

wake of the financial crisis. A 2013 report 

from McKinsey, Infrastructure Productivity: 

how to save $1 trillion a year, estimates that 

the world will require US$57 trillion in 

infrastructure investment by 2030 – more 

than the current value of the worlds’ 

existing infrastructure – with the majority 

of investment needed in urban centres. 

This is a global issue: as advanced 

economies need to maintain and replace 



ageing infrastructure, fast-growing cities 

in the developing world need major 

investments to be able to provide basic 

levels of service to their rapidly growing 

populations. 

Furthermore, a system-wide perspective 

becomes particularly important as new 

infrastructure technologies evolve and 

become increasingly connected. For 

example, many cities are experiencing 

the simultaneous deployment of lowor 

zero-energy buildings, renewable 

energy technologies suitable for the 

urban environment, the development of 

smart electrical grids, and the growing 

market uptake of electrically-charged 

vehicles. Individually, such developments 

can generate opportunities for major 

reductions in energy use and emissions 

while improving resilience. However, 

these elements are inter-linked and their 

co-evolution needs to be considered 

holistically if cities are to fully optimise 

the overall benefits of evolving lowcarbon 

urban infrastructure systems. 

Forward-looking companies that 

are committed to sustainability and 

experienced in delivering effective 

solutions can help cities navigate these 

challenges and turn a high-level vision 

into practical and implementable action 

plans. Business can play a vital role not 

only in providing specific infrastructure, 

technology, services and financing 

solutions, but also in contributing to 

the definition of the strategy that will 

support the overall optimisation of urban 

systems to drive sustainability. 

Many leading businesses are building their 

long-term strategies around providing 

integrated solutions to complex problems 

facing the world’s cities. A number of these 

solution types are focused on improving 

the efficiency of existing infrastructure 

(e.g. smart grids, smart water networks, 

intelligent transport systems) hence 

delivering major environmental benefits, 

improved operational performance, while 

avoiding or delaying the need for new 

major capital investments. 

EARLY ENGAGEMENT OF THE 

PRIVATE SECTOR 

Cities have long sourced solutions 

and services from the private sector 

and have engaged businesses to 

design, build, operate and maintain 

major infrastructure. However, under 

this traditional model, businesses are 

generally involved at a later stage in the 

city’s planning/implementation life cycle, 

when the opportunities to promote 

innovation and provide valuable strategic 

input are limited. 

There are several common factors that 

appear to limit early engagement with 

businesses, including: 

Lack of suitable engagement processes. 

Cities may not have processes in place 

that enable strategic engagement 

with business early in the planning 

cycle, or they may be unsure of how 

such a process could be established or 

integrated into existing regulations or 

stakeholder engagement and planning 

processes. 

Perception of biased input. City 

officials may not have full confidence 

that business representatives will give 

input that is in the city’s best interests 

and assume that they will use an 

engagement only as means to pursue 

their own commercial interests. 

Regulatory constraints. Regulations – 

in particular those relating to public 

procurement – can limit interactions 

between cities and the private sector. 

Such regulations are intended to 

"Fast-growing cities in the 

developing world need major 

investments to be able to 

provide basic levels of service." 

A MAJOR MISSED 

OPPORTUNITY 

While there are already 

excellent examples of cities and 

business working together at 

the strategic level, this is the 

exception rather than the rule, 

representing a major missed 

opportunity. The WBCSD 

strongly believes that cities and 

businesses need to develop new 

models of collaboration early in 

the planning process with a view 

to leverage the full capability 

of the private sector to drive 

innovative solutions and support 

effective decision-making. 

ensure the integrity and effectiveness 

of public procurement and planning 

processes. However, these rules (or 

more importantly, how they are applied 

and perceived in practice) may have 

the unintended consequence of losing 

valuable input from business that could 

benefit the city and its citizens. 

The WBCSD established the UII to 

advance the urban sustainability agenda 

by showcasing the critical role that 

business can play as a solution provider, 

and by constituting a platform for 

collaborative strategic engagement 

between cities and business. The UII 

brings together 14 leading WBCSD 

member companies with an array of 

knowledge and skills to help unlock 

opportunities for urban authorities to 

create cities that are more sustainable, 

efficient and livable. 

This multi-sector, multi-company group 

worked with the following leading 

cities: Turku (Finland); Tilburg (The 

Netherlands); Ahmedabad, Rajkot, Surat 

and Vadodara in Gujarat State (India); 

Yixing (China); Kobe (Japan); Guadalajara 

(Mexico); and Philadelphia (USA). 

In each city, the UII mobilised a multidisciplinary 

team of company experts 

to work collaboratively with senior city 

officials. These teams took an integrated, 

cross-sector approach to analysing the 

city’s major sustainability challenges and 

40


CASE STUDY – UII IN LATIN 

AMERICA: GUADALAJARA 

(MEXICO) 

Guadalajara is Mexico’s second 

largest city, capital of the State of 

Jalisco and seat of the Municipality 

of Guadalajara. The Guadalajara 

Metropolitan Area includes six 

adjacent municipalities and has 

a total population of more than 

4.4 million. City officials have a 

vision to transform the city into a 

modern, sustainable metropolis 

that offers a high quality of life. 

A multi-company, multi-sector 

team from the UII with expertise 

worked with city officials over 

several months in 2012. Initial 

dialogue identified priorities 

towards a comprehensive vision 

to tackle inadequate public 

transport, the perception that 

Guadalajara is a violent, insecure 

city, depopulation of the centre, 

and inadequate waste handling. 

These priorities represented four 

broad themes to be targeted 

during the collaboration. UII 

worked in a series of workshops 

to develop a total of 20 solutions 

across the four categories. They 

included: 

Expanding and modernising the 

public transport system 

Implementing an integrated 

traffic management system 

Establishing a citizen 

participation programme – 

GuadalajaraConvive 

Relocating dwellings in high-risk 

areas through a programme of 

low-cost housing 

Revitalising public spaces and 

urban facilities, and 

Segregating solid urban waste. 

UII recognises that the different 

challenges cities face require 

strategies that respond to the 

interconnections. The team 

developed proposals using an 

integrated approach, with a 

system-wide view from the start. 

This approach generated crosscutting 

solutions which tackle 

issues that either directly or 

indirectly contribute to the city’s 

overall transformation as well as 

handling specific topics. 

Collaborating with city officials 

and other stakeholders active in 

Guadalajara’s urban development 

demonstrated the value of 

incorporating early business 

input into the city’s thinking. This 

enabled city representatives 

to consider a variety of ideas, 

and to engage with businesses 

collectively in a broad context 

– rather than just in relation to 

specific tenders. 

Francisco Ayón López, the mayor 

of Guadalajara during this project, 

commented: “The sustainability 

of cities cannot be achieved by 

isolated efforts, but requires the 

involvement of governments, 

society and business. Together, 

we can develop high-impact 

integrated solutions that generate 

immediate results for the people 

... Guadalajara has developed 

together with the WBCSD a 

transformation plan with a 

comprehensive, modern and 

far-reaching vision.” 

More information can be found 

in the UII Guadalajara Report 

(available in both Spanish and 

English): A Solutions Landscape 

for Guadalajara. 

to developing an innovative ‘solutions 

landscape’ (i.e. a portfolio of practical 

solutions) to address these challenges. 

These engagements were facilitated 

by respected ‘bridging organisations’ 

including ICLEI – Local Governments 

for Sustainability, and the Urban Land 

Institute. 

The case study on Guadalajara, Mexico, 

is a great example of the UII in practice 

in Latin America. 

While the UII is a pilot project that has 

worked with a relatively small number 

of leading cities, the recently-published 

UII Final Report summarises the evidence 

– particularly the perspectives of city 

leaders – which suggests that the early 

involvement of business can be of 

real benefit to any city administration 

aiming to advance sustainability. It has 

demonstrated how leading businesses can 

take a demand-driven and collaborative 

approach to understanding and addressing 

a city’s challenges, and can provide 

objective, technology- and vendor-neutral 

advice on potential solutions. 

We are using this model for advancing 

collaboration on other key urban 

sustainability issues. The WBCSD Energy 

Efficiency in Buildings project has been 

working with major cities including 

Warsaw and Shanghai, convening key 

local stakeholders along the buildings 

value chain to diagnose and tackle 

key barriers to energy efficiency. 

Our Sustainable Mobility Project is 

collaborating with key demonstratorcities 

– including Bangkok in Thailand 

and Campinas in Brazil – to support 

the development of their sustainable 

mobility plans, accelerating progress 

towards delivering universal access to safe 

and low-impact mobility for both goods 

and people. 

A WIN-WIN SITUATION 

In conclusion, the WBCSD sees an 

enormous win-win opportunity to 

drive transformational global action on 

climate change through bringing city 

and business leadership together – but 

early engagement is crucial for success. 

Cities will win by getting practical, 

cost-effective solutions to realise their 

ambitious sustainability visions. Leading 

businesses will win through growing 

markets for innovative new solutions 

that will be essential for delivering 

transformational change. 



WBCSD’s Sustainable Mobility Project is collaborating with Campinas, Brazil 

"Cities will win by 

getting practical, 

cost-effective solutions to 

realise their ambitious 

sustainability visions." 

The UII has given a clear indication that 

this innovative new approach can address 

priority public policy objectives while 

increasing the likelihood that urban 

sustainability planning produces real 

shifts towards cost-effective low-carbon 

infrastructure pathways. 

At the WBCSD, we are not stopping 

here. Based on the success and lessons 

of the UII, we are now building an 

ambitious new programme focusing 

on zero-emissions cities. We will bring 

together innovative cities and leading 

solutions providers to collaborate 

towards making a city with no net 

emissions a reality. Watch this space. 

Peter Bakker is the President of the 

World Business Council for Sustainable 

Development. Until June 2011 Mr 

Bakker was CEO of TNT NV. Under 

his leadership TNT rose to the forefront 

of Corporate Responsibility via a groundbreaking 

partnership with the UN World 

Food Program and ambitious CO 2 

reduction 

targets from its Planet Me initiative, holding 

multiple-year top-ranking positions in 

the Dow Jones Sustainability Index. Mr 

Bakker is the recipient of the Clinton Global 

Citizen Award (2009); SAM Sustainability 

Leadership Award (2010); and has been an 

Ambassador Against Hunger for the UN 

World Food Programme since 2011. In 

addition he is the Chairman of War Child 

Netherlands; Co-Chair, Redefining the Role 

of Business for Sustainable Development, 

UN Sustainable Development Solutions 

Network; and Vice-Chairman, International 

Integrated Reporting Council. 

The World Business Council for 

Sustainable Development (WBCSD), 

a CEO-led organisation of some 200 

forward-thinking global companies, applies 

its respected thought leadership and effective 

advocacy to generate constructive solutions 

and take shared action. Leveraging its 

strong relationships with stakeholders 

as the leading advocate for business, the 

council helps drive debate and policy 

change in favour of sustainable development 

solutions. The WBCSD provides a forum 

for its member companies – who represent 

all business sectors, all continents and a 

combined revenue of more than US$8.5 

trillion, with 19 million employees – 

to share best practices on sustainable 

development issues and to develop 

innovative tools that change the status quo. 

The council also benefits from a network of 

70 national and regional business councils 

and partner organisations, a majority of 

which are based in developing countries. 

42

GLOBAL CARBON INFRASTRUCTURE 

By Wayne Sharpe, Chairman and Founder, Carbon Trade Exchange 

Climate change is the greatest risk 

and the greatest opportunity of this 

century. As the effects of global warming 

become increasingly apparent and ahead 

of United Nations, World Bank and 

scientific forecasts, we are seeing action 

by governments and major corporations 

across the world to price carbon and 

provide investment in low carbon 

solutions. To ensure that nations are 

capitalising on this through investment 

in renewable energy, low carbon 

technology and land-based sequestration, 

they need the development of efficient 

carbon market-based mechanisms. 

Carbon Trade Exchange (CTX) is a 

wholly owned subsidiary of Global 

Environmental Markets (GEM) and was 

founded in 2009 to operate spot exchanges 

in multiple global environmental 

commodity markets, including carbon, 

renewable energy certificates (RECs) 

and water. CTX currently operates the 

largest exchange in the world for Verified 

Emissions Reductions (VERs), bringing 

unrivalled liquidity to the global voluntary 

carbon market. 

More recently CTX has launched 

exchange markets for regulated carbon in 

multiple jurisdictions, RECs and water. 

GEM can build and license technology 

to operate exchanges in environmental 

commodities in any country, any 

language, for any carbon or environmental 

instrument or allowance (or both), under 

the rules that country desires for its market. 

A GLOBAL TECHNOLOGY 

SOLUTION 

Technology plays an integral role in 

environmental markets, providing a 

platform and mechanism for markets 

to operate efficiently and effectively. 

Exchange technology infrastructure is 

fundamental to building deep, liquid, 

transparent and secure carbon and 

environmental markets. 

The unique technology infrastructure we 

can provide to any carbon market features: 

Online solution – web-based 

customer access allowing anyone, 

anywhere access to an exchange, with 

ability to link globally to any market 

authorised to do so 

Security – comprehensive security 

features which track the ownership and 

point of origination of any commodity 

Safety – clearing house mechanisms 

for no counterparty risk 

Banking and registry interfaces – 

providing the ability to electronically 

interface with any bank or registry, 

ensuring seamless transfer of funds and 

commodities 

Trade management console – brokers 

and members to manage their trading 

activity 

Accountability – full audit and 

transaction logs. 

The robust, scalable and commercialised 

technology requires minimal capital 

expenditure to expand into any 

international market and additional 

environmental commodities. The unique 

infrastructure is industry-best, meeting 

our customers’ demands for price 

transparency, reliability, risk management 

and transaction efficiency. 

STAKEHOLDER 

CONNECTIVITY 

Exchanges link key stakeholders, 

including the private sector, government 

organisations, registries, banks, carbon 

emitters and project originators – plus 

buyers and sellers. Exchanges also have the 

ability to converge fragmented or regional 

markets and provide international linkage 

allowing market participants to trade 

domestic and global environmental 

commodity markets, including carbon. 

A combination of innovative technology 

solutions and international linkage will 

help to provide a path towards a global 

low carbon economy. 

www.carbontradexchange.com 

How Exchanges Drive a Market (EU ETS) 

Source: Point Carbon Market Data 



GEARING UP 

CLIMATE ACTION IN 

THE ASIA-PACIFIC 

By Bindu N Lohani, Vice-President for Knowledge Management and 

Sustainable Development, Asian Development Bank 

Reducing the greenhouse gas emissions that are at the core of climate change is no longer 

an option – it is a necessity. Even if we stop emitting greenhouse gases, we shall still have to 

deal with the climate change caused by past emissions, so adaptation to climate change is 

also of paramount importance. We must recognise that there are limits to adaptive capacity, 

particularly in developing countries, and especially among the poor and vulnerable. The 

Asian Development Bank (ADB) is constantly striving to be a better partner to developing 

member countries in the fight against climate change. In 2013, ADB delivered more than 

US$3.3 billion in climate investments. 

In Asia-Pacific, 1.6 billion people still 

live on less than US$2 a day and are 

highly susceptible to economic and 

environmental shocks and natural hazards. 

More than 60 per cent of the region’s 

population works in agriculture, fisheries 

and forestry, the sectors most at risk from 

climate change. Seven of the ten nations 

most vulnerable to climate change are in 

the Asia-Pacific region, and burgeoning 

cities such as Kolkata, Mumbai, Dhaka, 

Guangzhou, Ho Chi Minh City, Shanghai, 

Bangkok, Yangon and Manila are among 

those most threatened by coastal flooding. 

On the other hand, developing Asia 

accounts for 33 per cent of world 

energy demand, and by 2035 this 

will increase to 41 per cent. Its share 

of worldwide energy-related carbon 

dioxide emissions more than doubled 

from 17 per cent in 1990 to 37 per cent 

in 2011. Without aggressive efforts to 

make growth less carbon-intensive, this 

will be 46 per cent by 2035. 

Given Asia-Pacific’s rising greenhouse 

gas emissions and its very many highly 

vulnerable people, the global battle 

against climate change will be won or 

lost in this region. 

Over the past year, ADB has undertaken 

a mid-term review of our corporate 

strategy, and committed ourselves to the 

following strategic priorities on climate 

change: 

Supporting clean energy investments 

Increasing assistance for sustainable 

transport 

Scaling up support for climate adaptation 

"More than 60 per cent of 

the region’s population works 

in agriculture, fisheries and 

forestry, the sectors most at 

risk from climate change." 

Strengthening integrated disaster risk 

management 

Promoting natural resource 

management 

Strengthening policies and capacity, and 

Facilitating access to global and 

regional funds. 

44


We strongly support measures to 

mobilise finance for scaled-up 

investment in low-carbon, climateresilient 

infrastructure. The 2013 World 

Economic Forum Green Investment 

Report estimates that US$700 billion per 

year is needed to make infrastructure 

‘green’, on top of an underlying 

investment need of US$5 trillion, mostly 

in developing countries, to build that 

infrastructure. This is a huge challenge 

before global mean temperatures rise 

more than 2°C and our window for 

action closes; and will only be possible 

through a committed partnership 

between the public and private sectors, 

and, indeed, between developed and 

developing countries. 

THE ROLE OF 

GOVERNMENTS AND THE 

PRIVATE SECTOR 

Many governments in Asia-Pacific 

are implementing national climate 

action plans and pledging to reduce 

greenhouse gas emissions. But even if 

global emission-reduction pledges are 

realised, the 2013 Emissions Gap Report 

by the United Nations Environment 

Programme forecasts that we will still 

be emitting 8-12Gt of greenhouse 

gas emissions per year more than we 

should if we are to comply with the 2°C 

target in 2020. This means that we must 

redouble our efforts to reduce emissions. 

"Governments must use 

their limited public funds 

wisely, design the right type 

of financial instruments, 

and create a conducive 

environment for green 

investment and green growth." 

As such, governments must use their 

limited public funds wisely, design the 

right type of financial instruments, and 

create a conducive environment for 

green investment and green growth. 

Ultimately, though, it is the private 

sector that will provide the bulk of funds 

in the fight against climate change and 

we must find ways to unlock further 

private investment by helping countries 

establish effective regulatory frameworks 

and prepare bankable projects. 

ADB is working on both fronts. 

For example, we recently signed a 

Memorandum of Understanding on 

climate change with the National 

Development and Reform Commission 

(NDRC) of the People’s Republic of 

China, to jointly develop innovative 

climate change-related approaches 

and projects. ADB also supported the 

establishment a year ago of the Tianjin 

emissions trading scheme, one of seven 

city-level pilot schemes which will 

anchor the national carbon market set to 

start in 2016. 

ADB is also targeting private sector 

development and private sector 

operations to reach 50 per cent of its 

annual operations by 2020. In the last 

three years, about 38 per cent of ADB 

energy projects were private sector 

projects, many of them ground-breaking. 

A series of solar power projects in 

Thailand demonstrates the commercial 

viability of private sector utility-scale 

energy generation projects. Earlier this 

year, ADB, ORIX Corporation and 



Robeco launched Asia Climate Partners, 

a US$400 million joint venture that 

will make private equity investments 

in environment- and climate-friendly 

companies and transactions. Our newly 

established Office of Public Private 

Partnership to provide governments with 

independent advice on shaping publicprivate 

partnerships (PPPs) will also be 

a key conduit for greater infrastructure 

investment in developing Asia. Designing 

PPPs to help finance low-carbon, 

climate-resilient infrastructure will be an 

ADB priority in the years to come. 

OPPORTUNITIES FOR 

DECARBONISATION 

Over the past decade, developing Asia’s 

greenhouse gas emissions have been 

rising about 5.4 per cent yearly, faster 

than the global average of 2.2 per cent. 

But energy demand is set to grow too. 

Recent figures from the Climate Policy 

Initiative indicate that Asia and the 

Pacific will require US$17 trillion in 

energy-related investment in upstream 

coal, gas and oil production, power 

generation, transport and buildings from 

2015 to 2030. An additional US$4.8 

trillion will have to be spent to deploy 

low-energy infrastructure options and 

stay within the 2°C limit. This is a 

huge challenge, but creates significant 

opportunities for green investment. 

There are many low-hanging fruits. In 

2010, greenhouse gas intensity – tons of 

carbon dioxide equivalent per US$1,000 

of gross domestic product – in Asia- 

Pacific was 1.2 compared with the 

world average of 0.8, suggesting there is 

considerable potential for efficiency gains 

and emissions reductions. Our mid-term 

strategy review will see ADB continue 

to invest at least US$2 billion annually 

in clean energy, including in energy 

efficiency, particularly in manufacturing 

plants, households, buildings and 

transport. In line with the multilateral 

development bank commitments made 

at the 2012 Rio+20 conference, ADB 

will invest US$30 billion in transport 

by 2021, thereby helping improve the 

sustainability of the transport sector in 

our developing member countries. 

Ensuring energy is used more efficiently 

may be difficult for some governments. 

Eliminating fossil fuel subsidies in 

particular may be tough even though 

ADB estimates show that the subsidies 

in just three countries – India, Indonesia, 

and Thailand – cost over US$91 

billion in 2012 alone. Decarbonisation 

brings many other benefits such as an 

improvement in human health and 

the environment through reduced air 

pollution which outweigh most of the 

implementation costs. In other words, 

it makes economic sense to invest in 

climate action. This message was also at 

the heart of a landmark report – Better 

Growth, Better Climate: The New Climate 

Economy – issued earlier in 2014 by the 

Global Commission on the Economy 

and Climate. 

CATALYSING CLIMATE- 

RESILIENT INVESTMENTS 

Unmitigated climate change poses great 

risks to human security. Hurricane Sandy 

and Typhoon Haiyan (Yolanda) are two 

recent reminders of how windstorms, 

which may be exacerbated by climate 

change, can have devastating impacts. 

In the aftermath of Typhoon Haiyan 

(Yolanda), ADB stood side by side 

with the Philippine people and their 

government, committing over US$1 

billion for immediate relief assistance, 

post-disaster rehabilitation and 

reconstruction, restoration of basic 

services, and other programmes. ADB’s 

STRENTHENING 

INSTITUTIONS TO BUILD 

RESILIENCE 

ADB is helping increase the 

climate resilience of societies 

and communities throughout 

the region by strengthening 

institutions, generating and 

disseminating knowledge, 

and building the climate 

resilience of vulnerable 

sectors by investing in 

infrastructure, governance, 

education, and health. In 

2013 alone, ADB approved 

19 technical assistance 

programmes and 23 projects 

focused on climate change 

adaptation or with significant 

adaptation components. Our 

total adaptation support was 

US$896 million in 2012 and 

around US$1 billion in 2013. 

We aim to double this by 2016. 

ADB is also implementing 

a systematic approach for 

climate risk screening and 

assessment so climate risks are 

identified and addressed in the 

early stage of project design. 

Typhoon Yolanda Response Team, 

including 40 senior staff members with 

expertise in post-disaster situations, 

continues to coordinate ADB assistance 

locally via our field office in Tacloban, 

the city hardest hit by the typhoon. 

We will certainly continue to help 

countries cope with disasters. But 

sustainable economic growth and 

human development cannot take 

place in Asia-Pacific without building 

climate resilience to safeguard all other 

development gains. 

"Decarbonisation brings 

many other benefits such as an 

improvement in human health 

and the environment." 

Governments have a key role in 

addressing climate risks. They 

can help by integrating climate 

resilience and adaptation objectives 

in development strategies, policies, 

and investment programmes. They 

also have a responsibility to help poor 

and vulnerable groups better cope by 

providing new livelihood opportunities, 

46


increasing awareness and participation, 

and improving health systems and basic 

education. 

The private sector is also intrinsic to 

overcoming the growing adaptation 

deficit. Our estimates suggest US$40 

billion a year is necessary just to climateproof 

critical infrastructure in the region. 

With the right incentives, the private 

sector can help mobilise the required 

finance, as well as deploy the relevant 

technologies for adaptation. 

PROMOTING LIVEABLE 

CITIES FOR FUTURE 

COMPETITIVENESS 

Currently, more than 40 per cent of Asia’s 

population resides in urban areas – with 

over 520 million living in urban slums, 

with poor services – but by 2050, twothirds 

of Asia’s population will be urban. 

Urban areas also account for 60 to 80 per 

cent of the region’s energy consumption 

and 75 per cent of its carbon emissions. 

Many cities are also regular victims of 

climate-related hazards, such as floods 

and storm surges. Helping cities become 

more resilient to climate change is critical 

to protect lives and infrastructure, but 

would also boost investment and longterm 

economic growth. 

In urban development, ADB promotes 

integrated planning and development 

of cities through three interrelated 

approaches: 

‘Green Cities’, focusing on mitigating, 

adapting, and building resilience to 

climate change 

‘Inclusive Cities’, supporting 

improvements in urban housing, 

infrastructure such as water supply, 

sanitation, waste management and 

transport, and livelihood development, 

and; 

‘Competitive Cities’, promoting 

economic clusters which contribute to 

inclusive economic development. 

With Asia-Pacific cities on the front line of 

climate change, ADB is putting a stronger 

focus on urban climate change mitigation 

and urban resilience. In 2013, we 

established a US$141 million Trust Fund 

for Urban Climate Change Resilience 

with the Rockefeller Foundation and the 

UK and US governments to strengthen 

resilience in secondary cities in Asia. 

Meanwhile, ADB’s Urban Financing 

Partnership Facility has provided US$53 

million for 31 projects targeting better 

access to drinking water, sanitation, 

transport and solid waste management for 

about 200 million people. 

GOING FORWARD 

The UN Climate Summit in September 

created significant momentum for 

climate action which will hopefully 

carry over to COP21 in Paris, where 

a comprehensive international climate 

agreement for global climate action 

after 2020 must be reached. The summit 

again underlined that action by all – 

developed and developing country 

governments, the private sector, and 

civil society – is required. Delaying 

mitigation and adaptation efforts will 

substantially increase the cost and 

difficulty of transitioning to a lowcarbon 

and climate-resilient economy. 

Further delay risks irreversible and 

devastating climate change. 

We have a huge opportunity right now 

to benefit from a shift towards a lowcarbon, 

climate-resilient development 

trajectory. Many forward-looking 

private sector players and some public 

sector decision-makers are already 

seizing that opportunity. However, in 

order to mobilise the needed financing, 

governments need to put in place 

the right mix of policies and deploy 

their limited public funding in a way 

that encourages private investment. 

A smart partnership of the public and 

private sectors which draws from and 

leverages the strengths of both is needed. 

ADB stands ready to work with all 

our partners to ensure a cooperative 

and effective climate response in the 

developing countries in Asia and the 

Pacific. The region, and the world, will 

benefit from that. 

Bindu N Lohani is Vice-President for 

Knowledge Management and Sustainable 

Development at the Asian Development 

Bank. Mr. Lohani is responsible for ADB’s 

Economics and Research Department 

(Office of the Chief Economist), Office of 

Regional Economic Integration, Regional 

and Sustainable Development Department 

(RSDD), and the Office of Information 

Systems and Technology. Prior to this position, 

he was Vice-President for Finance and 

Administration. 

The Asian Development Bank (ADB), 

based in Manila, is dedicated to reducing 

poverty in Asia and the Pacific through 

inclusive economic growth, environmentally 

sustainable growth and regional integration. 

Established in 1966, it is owned by 67 

members – 48 from the region. 


CAIXA ECONÔMICA FEDERAL: 

SUSTAINABLE BANKING 

Founded by Emperor Dom Pedro II 

in 1861 as a bank to encourage savings 

by the population, CAIXA has grown 

into a public institution for stimulating 

Brazil’s development with the mission 

of promoting the Brazilian people’s 

well-being. 

CAIXA’s role is decisive for urban 

development and democratic access to 

full citizenship, directly contributing 

to improving people’s lives through its 

constant involvement in sectors such as 

housing, sanitation, infrastructure and 

financial services. 

The company provides basic banking 

services and implements and follows 

through on federal government 

initiatives in housing finance, urban 

development, commercial lending, 

investment fund management, and the 

handling of social programmes and 

income transfers. 

CAIXA is also responsible for the 

management of labour benefits such 

as the Employee Severance Indemnity 

Fund, Social Integration Programme and 

unemployment benefits. The company 

also manages government funds and 

initiatives such as the Wage Variation 

Compensation Fund, Residential Leasing 

Fund, Supportive Lending Programme, 

Student Financing Programme, Social 

Development Fund and National Fund 

for Social Interest Housing, plus housing 

insurance for the National Housing 

Finance Scheme. 

Based in Brasília, CAIXA is under the 

aegis of the Ministry of Finance. It is 

part of the Brazilian national financial 

system and assists with the federal 

government’s credit policy, subject to 

the decisions and regulations of the 

competent body and supervision by the 

Brazilian Central Bank and the Federal 

Audit Court. 

ENVIRONMENTAL 

PERFORMANCE 

Committed to social-environmental 

issues since 2005, CAIXA has 

adhered to the Green Protocol, an 

agreement between the Ministry of 

the Environment and state-owned 

financial institutions, aimed at defining 

innovative model banking policies 

and practices of social-environmental 

responsibility. 

Institutionally, CAIXA has adopted a 

series of initiatives that keep it updated 

with the best global social-environmental 

responsibility practices. The bank 

adhered to the Global Compact in 2003 

and, in 2009, it became the first financial 

"The company provides 

basic banking services and 

implements and follows 

through on federal 

government initiatives." 

"Committed to socialenvironmental 

issues since 

2005, CAIXA has adhered to 

the Green Protocol." 

institution in the Americas to embrace 

the Business and Biodiversity Initiative 

– a movement to stimulate the business 

sector to adopt management systems 

designed to protect biodiversity. 

Of the 62,000 CAIXA service 

points, 3,500 are branches and 

banking services, and 33,600 

are outlets including CAIXA Aqui 

outlets. The rest of the network 

comprises 24,900 terminals 

installed in ATM posts and halls. 

In addition to this infrastructure, 

CAIXA offers services through 

its mobile units: 18 truck-based 

branches and 117 units until 

2015. Chico Mendes and Ilha 

de Marajó riverboat (pictured) 

branches travel the Amazon 

region’s to serve less accessible 

municipalities in sparsely 

populated and economically 

disadvantaged areas. 

More information: 

www.caixa.gov.br 

48

CORPORATE 

ENVIRONMENTAL 

POLICY MILESTONES 

2004/05: 

Corporate Environmental 

Policy approved and 

Committee established. 

2007: 

Social-environmental 

Responsibility, Sustainable 

Development and Environment 

departments created. 

Lending Policy reviewed, 

setting out principles, 

guidelines and standards to 

ensure economic, financial, 

social and environmental 

sustainability of lending 

operations. 

2008: 

Corporate Social Responsibility 

Committee established. 

2009: 

Commitment to the Equator 

Principles. 

2010: 

Selo Casa Azul guide launched. 

Social-Environmental Fund 

(FSA) set up. 

2011/12: 

Tendering carried out under 

the FSA. 

2012: 

Commitment to the Natural 

Capital Declaration (first major 

Brazilian bank to join). 

2013: 

Adherence to GHG Protocol. 

"A survey carried out by 

Adbank in 2012 showed a 

significant increase in the 

number of Brazilians who 

consider CAIXA the bank that 

has contributed the most to 

environmental preservation." 

CAIXA signed up to the Equator 

Principles in 2009, thereby accepting 

the social-environmental standards of 

the International Finance Corporation 

(IFC), a private arm of the World Bank, 

for the analysis of social-environmental 

responsibility parameters in all project 

finance operations involving more than 

US$10 million. 

Having made a commitment to the 

National Policy on Climate Change 

(PNMC), CAIXA is also implementing 

a series of measures to combat or 

mitigate greenhouse gas (GHG) 

emissions, such as the financing of 

environmental sanitation and Clean 

Development Mechanism (CDM) 

projects, as well as the adhesion to the 

GHG Protocol, developed by the World 

Resources Institute (WRI). 

CAIXA believes that the future of 

financial activities is based on the 

need to reconcile profitability with 

environmental sustainability. The bank’s 

principles aim to promote regional 

sustainable development, with the 

interests of both current and future 

generations at heart. Its Corporate 

Environmental Policy thus includes the 

following guidelines: 

Financing development geared to 

sustainability 

Considering social-environmental 

impacts and costs when extending 

credit 

Promoting the sustainable 

consumption of natural resources, and 

materials derived from them, in all 

internal processes 

Continuously informing, promoting 

awareness and engaging stakeholders 

in CAIXA’s sustainability policies and 

practices 

Promoting the sustainable 

development of cities. 

The continued efforts to comply with 

these guidelines satisfactorily have already 

had an effect. A survey carried out by 

Adbank in 2012 showed a significant 

increase in the number of Brazilians 

who consider CAIXA the bank that has 

contributed the most to environmental 

preservation. The bank is at the top of 

the 2012 ranking of the Brazil’s five 

largest financial institutions. 

www.caixa.gov.br 

"CAIXA is implementing 

measures to combat or 

mitigate greenhouse gas 

(GHG) emissions." 



PRECON ENGENHARIA 

INNOVATION, 

INDUSTRIALISATION 

AND SUSTAINABILITY 

The regional market leader in precast 

concrete and a reference in industrialised 

and sustainable real estate development, 

Precon Engenharia has more than 50 

years’ experience in the construction 

industry, bringing its innovative DNA to 

important works in Brazil. 

The company develops constructive 

solutions in precast concrete structures 

for complex works of many different 

types, such as infrastructure, logistics 

sheds, commercial and industrial 

buildings, special structures for mining, 

and the oil and gas segment. 

PRECON’S HOUSING 

SOLUTION 

After 20 years of research and 

development, the company has mastered 

a unique technology that enables the 

use of industrialisation in residential civil 

construction. Precon’s Housing Solution 

(SHP), patented in 2010, takes the 

concepts of the automotive industry and 

adapts them to civil construction. 

In the SHP system, buildings are 

produced in industrial plants and 

assembled at construction sites. 

This innovative method, which has 

sustainability as one of its key elements, 

has been rigorously tested and approved 

by the Ministry of Cities to be used 

throughout the Brazilian territory. 

Among the many sustainable benefits is 

the reduction of waste generation. In the 

whole process, Precon generates around 

81 per cent less waste than the average 

Brazilian civil construction works, 

which brings significant gains to the 

community. 

The SHP system has been in operation 

for four years, delivering excellent 

performance and achieving important 

national and international recognition. 

The SHP was turned into a case in 

Fundação Dom Cabral (FDC), the 

most trusted and recognised business 

school in Brazil, for being a milestone 

in industrialised and sustainable 

construction for the country. The 

company was also the first in Brazil to 

have a project approved in the Minha 

Casa Minha Vida (MCMV) programme, 

with Caixa’s Blue Sustainability Stamp. 

We are also proud to highlight the Eco 

Sustainability Award of the American 

Chamber of Commerce, won in 

2012 and 2013; the CBIC Award for 

Innovation and Sustainability, created 

by the Brazilian Chamber of the 

Construction Industry; and the relevant 

Ethos Award 2013, in the sustainable 

cases category. As the highlight of this 

issue, CEO of Precon Engenharia, 

Marcelo Miranda, was invited and 

presented this case at the World Forum 

Lille – Responsible Economy, held in 

France in 2013. 

Regarding social sustainability, the 

company has taken important steps 

by including female labour with 

competence in technology and 

ergonomics. This action has been 

awarded nationally and today is part of 

the good sustainable practices manual 

of the Brazilian Chamber of the 

Construction Industry (CBIC). 

The company also makes significant 

investments in corporate governance. 

In 2012, Bovespa chose Precon and 

two medium-sized companies, which 

are references in corporate governance 

and have great growth potential, to 

participate in the presentation to the 

capital market. Aiming to continue 

its growth in a sustainable manner, it 

is important to Precon to maintain 

partnerships with new investors to 

finance its new growth cycles. 

The company continues to invest in 

developing sustainable technologies for 

the construction industry. Together with 

the Brazilian innovation agency FINEP, it 

initiated in 2014 a new stage of research 

for developing technologies to improve 

the sustainability and productivity 

performance of its system. 

www.precon.com.br/ 

preconengenharia 

50


BRAZIL’S NATIONAL 

POLICY FOR 

LOW CARBON 

SUSTAINABLE 

DEVELOPMENT 

By Izabella Teixeira, Minister of the Environment, Brazil 

Following the Copenhagen climate change conference, Brazil announced its Nationally- 

Appropriate Mitigation Actions (NAMAs) to reduce its projected greenhouse gas emissions 

by 2020. The country’s voluntary emission reduction target, between 36 and 39 per cent, 

formed the basis of Brazil’s national policy on climate change, approved at the end of 2009, 

to ensure that national economic and social development is compatible with the Brazilian 

contribution to protecting the global climate system. 

Since 2010, Brazil has implemented its 

five NAMAs to reduce deforestation; 

to promote a low carbon emission 

agriculture; to deploy an energy plan to 

increase the use of hydropower, biofuels, 

renewables, and energy efficiency; and to 

stimulate more efficient production and 

use of charcoal for the iron/steel industries. 

Additionally, in 2013 the Brazilian 

government approved four new sector 

plans for industry (aluminium, cement, 

paper & pulp, chemistry, glass, and iron/ 

steel sectors), mining, transport, and health 

(to increase preparedness and decrease 

vulnerability of the public health system). 

These plans go beyond merely reducing 

emissions; they also serve as the basis to 

increase the efficiency and competitiveness 

of important economic sectors in Brazil. 

COORDINATED DECISION- 

MAKING 

The climate change policy has promoted 

a better coordination of efforts among 

governmental institutions: the Ministry 

of the Environment coordinates the 

steering committee for national policy, 

which responds to the inter-ministerial 

committee for climate change, under 

the coordination of the Chief of Staff 

of the Presidency, therefore achieving 

the highest levels of decision-making on 

climate change policy in Brazil. 

The policy also benefits from qualified 

contributions of the Brazilian Forum 

on Climate Change, chaired by the 

President of Brazil, with a broad 

participation of governmental and nongovernmental 

representatives, created to 

raise awareness and mobilise Brazilian 

society to discuss and take positions 

on climate change. The Forum also 

assists the Brazilian Government in the 

incorporation of climate change issues at 

various stages of public policy. 

There is also a strong academic 

contribution to the policy, particularly 

from the Brazilian Panel on Climate 

Change, a national scientific body that 

aims to gather, synthesise and evaluate 

scientific information on the relevant 

aspects of climate change in Brazil after 

the publication of National Assessment 

Reports, and form a scientific climate 

network that gathers over 300 national 

experts running publicly funded research 

in 15 different thematic areas. 



The Brazilian Government has also 

deployed financial instruments to 

support the implementation of the 

climate policy, such as the Climate 

Change Fund, the Amazon Fund, the 

low carbon emission agriculture credit 

line, supplemented by international 

programmes such as the Forest 

Investment Program, GEF funding, and 

donor countries’ contributions. 

"Deforestation has been 

reduced by 79 per cent since 

2004, representing a 

spectacular reduction of over 

30 per cent in emissions." 

POSITIVE OUTCOMES 

This policy-enabling environment 

has already produced emphatic results. 

Deforestation has been reduced by 79 per 

cent since 2004, representing a spectacular 

reduction of over 30 per cent in emissions; 

the low carbon agriculture programme 

has over 20,000 contracts with farmers, 

and invested around US$3.2 billion since 

2010; in 2014 the Ministry launched a 

renewable biomass-based charcoal plan 

for the iron and steel industry, sponsored 

both by the Climate Change Fund and 

the Global Environment Facility (GEF). 

The Climate Change Fund is sponsoring 

over 100 projects, more than 50 per 

cent on adaptation measures, and the 

Amazon Fund, which has raised almost 

U$400 million in financial contributions, 

is supporting over 50 projects. On the 

international arena, Brazil has submitted 

its forest reference emission level for 

REDD+ payments for results to the 

UNFCCC in June this year. 

The climate change policy also relies on 

the bedrock of other policies in Brazil, 

particularly the new forest code and 

its main instrument, the rural mapping 

and registry (CAR) system, which is 

mandatory for all 5.5 million farms 

in Brazil. The CAR provides state of 

the art technologies and capabilities 

for land use planning at a scale never 

experienced before in Brazil. In addition, 

the ARPA Protected Areas programme 

of the Amazon, in implementation 

since the late 1990s, is expanding and 

consolidating a total of 60 million 

hectares of protected area, roughly the 

combined land area of Portugal and 

Spain. The recently launched third 

phase of ARPA’s Fund, at US$215 

million, will run for the next 25 years, 

with contributions from the Brazilian 

Government, the Brazilian Biodiversity 

Fund (FUNBIO), the World Bank, and 

other governments and donors. 

NEXT STEPS AND 

CHALLENGES AHEAD 

The climate change policy in Brazil is 

evolving from a mainly command and 

control style of policy-making towards 

efficiency and low carbon emission 

policies. Nevertheless, challenges remain. 

52


THE INTERNATIONAL 

DIMENSION 

In 2013, Brazil began preparation of 

its National Plan for Adaptation, under 

the coordination of the Ministry of 

the Environment and the Ministry of 

Science, Technology and Innovation. 

Thematic networks have been 

constructed with the participation of 

experts, civil society and economic 

sector representatives, for the elaboration 

of knowledge with draft documents 

on water, food security and agriculture, 

coastal zones, biodiversity and forests, 

cities, industry, energy, transport and 

logistics, public health, and natural 

disasters. Public consultations and 

approval of the National Plan for 

Adaptation are expected in 2015. 

LAND USE 

The use of land and land resources 

plays a fundamental role in delivering 

national economic growth in Brazil, and 

will continue to do so in the future. In 

our efforts to build sustainability for the 

planet, Brazilian agriculture is a potential 

tipping point. Agribusiness leadership 

is imperative if Brazil is to continue its 

agricultural expansion and become more 

ecologically sustainable. The solutions 

presented today by the new legislation on 

the use of forests and CAR are consistent 

with Brazilian law, economic growth 

needs, the long-term ecological future 

of Brazil, and ultimately the financial 

future of all who benefit from Brazil’s 

productive lands. 

This scenario is compatible with a new 

policy framework that goes beyond 

deforestation, and ties in economic 

development, climate change and food 

security. This new framework, called 

Protection and Production, aims to 

encourage changes to current patterns 

of management and investment in 

order to build a strong foundation for 

future economic development and 

environmental conservation. The core of 

this approach is to build better national 

understanding (public, private, academic, 

civil society) and coordination of the 

notion that land is an asset and therefore 

must be better and more efficiently 

used. In addition, a key requirement is 

to analyse and support implementation 

of policy regimes that link sectors and 

regions of the rural economy, already tied 

together by markets, organisation of rural 

households, and fiscal systems. 

Finally, but equally important, it must 

be recognised that fighting global 

climate change can hugely benefit from 

international cooperation. No other nation 

has our experience or success in tackling 

deforestation. For that reason, Brazil is 

committed to sharing its expertise on 

forest monitoring and control with other 

tropical countries. In 2007 the Brazilian 

Space Agency INPE established in Belém 

the Amazonian Regional Center with 

the mission of transferring Brazilian 

experience of tropical forest monitoring 

beyond our borders. The achievements of 

this initiative prompted Brazil to approve 

in 2013 its first international funding 

programme with the Amazon Cooperation 

Treaty Organization (ACTO), to develop 

national strategies to monitor forest cover 

and changes in land use for all Amazonian 

countries. The programme will run for 

four years at a total cost of US$17.2 

million of which US$11.2 million comes 

from Brazil’s Amazon Fund. We are also 

looking at other initiatives to support 

African countries in the same field. In the 

same way that we have greatly benefited 

from international cooperation, particularly 

in our fight against deforestation, the 

Brazilian government is proud to be 

able to share its achievements with other 

countries. 

Izabella Teixeira is Brazil’s Minister of the 

Environment. She has a degree in biology 

from the University of Brasilia, a Master’s 

degree in energy planning and a PhD in 

Environmental Planning from the Federal 

University of Rio de Janeiro. She has worked 

for the government since 1984 and has 

taught at various universities. She has worked 

in several areas in the environmental sector 

of public administration, and has served as 

Minister of the Environment since 2010. 

"This new framework, 

called Protection and 

Production, aims to encourage 

changes to current patterns of 

management and investment." 

The Ministry of Environment, Brazil, 

was created in 1992 to meet the challenge 

of protecting and conserving the environment 

and promoting sustainable development. In 

its 22 years of existence, the Ministry has 

focused its efforts in meeting that challenge, 

increasing the awareness of environmental 

issues in the national political agenda, and 

helping to consolidate Brazil’s important role 

in the international arena. 


CATALYSING 

TRANSFORMATIONAL CHANGE 

CATALYSING CHANGE 

WITH OUR PARTNERS, BY: 

 

 

 

 

 

Avina and their partners are promoting reduction of deforestation 

in the Amazon region through sustainable territorial management 

Latin America and the Caribbean are 

key in the global fight against climate 

change. The region’s unique cultural and 

biological diversity play a strategic role in 

guaranteeing community resilience and 

the provision of global environmental 

services, such as food, energy, water, and 

climate stability. 

Simultaneously, as a rapidly developing 

region, high infrastructure development 

and economic growth offer a window of 

opportunity for timely, climate compatible 

investment that can promote adaptation 

and reduce greenhouse gas (GHG) 

emissions, while bringing positive social 

impact to the population. Although it 

produces only 9 per cent of global GHG, 

the region is highly vulnerable to the 

impacts of climate change, which already 

affect many countries, communities and 

ecosystems, and can seriously threaten 

future development needs and poverty 

reduction. 

Being proactive on adaptation strategies 

and encouraging an ambitious global 

agreement is essential for reducing 

climate risks while promoting inclusive, 

sustainable development. This requires 

increasing efforts around technological 

and social innovation, transferring fossil 

fuel subsidies towards low emission 

infrastructure; recognising environmental 

services as key for economic 

development, and fostering multistakeholder, 

regional cooperation. All this 

can be duly addressed by public policies 

developed through a participatory 

process with the private sector and social 

movements. 

In recognition of the continent’s 

potential, as well as of its significant 

vulnerability and inequity levels, 

Fundación Avina is working with 

governments, business and civil society 

partners to catalyse transformational 

change. By promoting local, national 

and regional initiatives in sectors like 

energy, water, inclusive recycling and 

sustainable cities, as well as in biomes like 

the Amazon and Chaco region, Avina 

aims to contribute with innovative and 

effective climate policies and actions. 

Multilevel, collective action is key to 

responding to climate change; we believe 

that complemented with effective social 

and technological innovation, we can 

scale up transformational change in Latin 

America and the Caribbean as a global 

contribution in the transition to an 

equitable, low emission economy. 

www.avina.net 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54


RENEWABLES: 

THE BEST VALUE 

ENERGY SOLUTION 

By Adnan Z Amin, Director-General, International Renewable Energy 

Agency (IRENA) 

As the urgency rises in our quest for answers to the climate change challenge, we can take 

heart from one remarkable piece of good news: renewables have become the best value 

energy for areas off the grid everywhere. In other words, technologies that were once 

considered "alternative" are proven to be viable and have become mainstream. Now, 

we need to take bold steps to increase the share of renewables in the energy mix. 

Over the past five years, renewable energy 

has become cheap. The cost of solar 

panels has fallen by 75 per cent. Onshore 

wind has become the least-cost option 

for new grid supply in many countries 

worldwide – even in countries with cheap 

shale gas, such as the United States. The 

falling cost of renewable energy heralds 

a transformational turn of events, whose 

importance is still not fully realised. What 

it means is that we have a viable answer 

to rising greenhouse gas emissions, which 

not only allows us to meet our present and 

future energy needs, but does so potentially 

more cheaply than using fossil fuels. 

How often do we face a serious crisis 

and then find that the solution makes us 

wealthier and healthier in the process? 

This is a genuine breakthrough, which 

presents us with a clear objective. Our 

job is to move renewable energy from 

the mainstream to the majority as soon 

as possible. 

It is worth repeating some basic facts. By 

2030, our planet will be home to 8 billion 

people. They will be richer and they 

will want to buy more things. Middleclass 

spending is expected to soar, from 

US$21 trillion to $56 trillion annually. 

Under business-as-usual scenarios, the 

consequence of all this activity is clear. 

Energy demand and emissions will grow, 

and they will do so in a way that causes 

catastrophic climate change. 

So how do we stop this? The answer 

"How many crises do we 

face, where the solution makes 

us wealthier and healthier in 

the process?" 

seems clear. More than 80 per cent of 

human-caused emissions of carbon 

dioxide come from burning fossil fuels. 

We need to use energy more efficiently, 

and we need to replace fossil fuels with 

renewables. The good news is that this is 

entirely within our grasp. 

CHEAPER TO ACT THAN TO 

DELAY 

IRENA analysis shows that we already 

have the technology and the know-how 

to double the share of renewable energy 

by 2030, from 18 to 36 per cent. But 

in fact, since half of today's renewable 

energy still consists of traditional 

biomass uses, which is unsustainable and 

entails pollution and health risks, we 

need to quadruple the use of modern 

renewables, including sustainable biomass 

and biofuels. The even better news is 

that under the REmap 2030 initiative, 

IRENA has worked out that we can 

do this more cheaply than not doing 

so – when we take into account the 

cost of pollution, including ill health, 

environmental degradation and carbon 

emissions. 



China increased its PV capacity in 2013 to 13GW, about one-third of the world market 

These developments have not 

gone unnoticed, and the process of 

transformation has already begun. 

Renewables last year accounted for more 

than half of new global power capacity, 

and investment in new renewable power 

capacity has outpaced investment in new 

fossil-based power generation for three 

years running. 

Governments everywhere are beginning 

to act. China increased its installed 

photovoltaic (PV) capacity in 2013 to 

13GW, about one-third of the world 

market. It now accounts for half of the 

global hydro and PV market, and hosts 

90 per cent of world solar thermal and 

biogas capacity. And there are plans to 

accelerate this transition further. 

Regulation in the US is acting as an 

effective brake on coal investments. 

Italy already produces 8 per cent of its 

electricity from solar PV. Germany has 

raised the share of renewables in power 

generation from 5 to 30 per cent. A 

growing number of island nations have 

completely converted to renewable 

power, or will do so in the coming five 

years. 

The shift to renewable energy is 

effectively underway. And the more we 

invest, the cheaper it gets. This allows 

us to cut the Gordian knot of climate 

diplomacy, in terms of who pays and 

who benefits. With renewable energy, 

we all invest, and we all benefit. The 

stalemate between developed and 

developing countries disappears when 

the best route to reducing carbon dioxide 

emissions is also the best strategy for 

economic growth. 

So why worry? If renewable energy 

is so obviously the solution, will 

markets not take care of the transition 

organically? The unfortunate answer is 

that, if business continues as usual, they 

will not. 

THE REAL ENERGY PICTURE 

Unless governments and policy-makers 

take urgent action, catastrophic climate 

change will be unavoidable. IRENA 

forecasts show that instead of doubling 

the share of renewables, we will reach 

only 21 per cent, an increase of just three 

percentage points and far from sufficient 

to mitigate the trend of global warming. 

There are three main reasons for this 

worrying scenario. 

Firstly, there is not a level playing field. 

The world currently subsidises fossil fuels 

to the tune of more than US$500 billion 

a year, and that number is rising. This 

dwarfs support for renewable energy by 

a factor of five. At the same time, we do 

not adequately account for the cost of 

pollution on our balance sheets. By giving 

fossil fuels a free pass for the damage they 

cause to our health and the environment, 

we are effectively subsidising them even 

further: eighteen times more than we 

subsidise renewables, according to the 

International Monetary Fund (IMF). 

The second reason is that too much 

attention is focused on power generation. 

Countless column inches are given to 

how we get our electricity. But more than 

three-quarters of the energy we use is in 

the form of heating and transport fuels. 

Much more attention needs to be focused 

on these areas: green buildings, electric 

cars, biofuels for industry and so forth. 

Thirdly, a world living on renewables 

looks very different from the world 

56


THE NEED TO START 

RIGHT AWAY 

It is not yet clear what 

successful business models 

will look like in a renewable 

energy system. A higher share 

of variable power, distributed 

more widely, demands new 

management systems, as 

well as smart metering and 

advanced storage. It requires us 

to build more interconnectors 

in upgraded grids. And it needs 

new forms of finance, which 

fully take account of the risk of 

stranded assets and the costs 

of pollution. 

All of these are coming, but not 

as fast as we need. To speed 

them up requires a sustained 

and committed push, backed 

by clear, consistent objectives, 

and a lot of planning. Because 

of the long lead times in 

building new infrastructure, this 

planning needs to begin today. 

In order to stop climate 

change, governments have 

a duty to accelerate the 

energy transition and start 

addressing misconceptions 

and misinformation about the 

economics of clean power. 

Renewable energy advocates 

need to explain far more 

clearly the costs and the 

benefits of switching, and be 

ready take on those lobbies 

who would see the climate 

destroyed in their effort to 

maintain the status quo. 

we have today. Raising the share of 

renewables is not just a matter of 

replacing coal power stations with 

wind turbines. It requires a complete 

rethink of the energy system. Where 

traditionally we have generated 

power in a large centralised utility, 

renewable energy is distributed, and 

the flow of electricity goes both ways. 

Many consumers are also becoming 

producers. New players are entering the 

"The paradigm shift to 

modern renewable energy will 

happen, one way or another. 

But as of now, it won’t happen 

fast enough." 

market, including retailers, technology 

companies, community organisations 

and private individuals. This has caused 

incumbent utilities to increasingly 

worry about their future. Some are 

responding by trying to maintain the 

status quo; others are fighting to keep 

their subsidies. This puts a brake on the 

global energy transition. 

URGENT STEPS TO 

PROSPERITY 

The world has switched energy systems 

before, and in doing so has enjoyed great 

leaps in prosperity. The paradigm shift to 

modern renewable energy will happen, 

one way or another. But as of now, 

it won’t happen fast enough to avoid 

serious damage to our climate. We need 

to speed things up. 

We are extremely fortunate, in that 

the falling cost of renewable energy 

has given us a choice. We can avert 

catastrophic climate change, and we can 

start by doubling the global share of 

renewable energy by 2030. In so doing, 

we will also create jobs, lower healthcare 

costs, and spread economic prosperity 

more widely. 

But to make that choice is not easy. It 

requires urgent, bold steps, from leaders 

willing to take the short-term hits from 

those who would rather carry on with 

business as usual. It will be a battle. But 

it is a battle we simply cannot afford to 

lose. 

Adnan Z Amin was elected as Director- 

General of the International Renewable 

Energy Agency (IRENA) in April 2011. 

A Kenyan national, he is a development 

economist specialising in sustainable 

development, with over 25 years of 

experience in the fields of international 

environment and sustainable development 

policy. He served as Head of the UN 

System Chief Executives Board for 

Coordination (CEB) Secretariat. Mr Amin 

also served as the Executive Director of 

the Secretariat of the Secretary-General’s 

High Level Panel on UN System-wide 

Coherence. Previously, he had been 

Director of the New York Office of the 

United Nations Environment Programme 

(UNEP) and Special Representative of 

the UNEP Executive Director. He played 

the lead role in supporting the ministeriallevel 

intergovernmental process to review 

International Environmental Governance 

and UNEP’s participation in the World 

Summit on Sustainable Development. He 

has also served from 2000 until 2006 

as a Trustee and member of the Board 

of Directors of the World Conservation 

Monitoring Centre, Cambridge, UK. 

The International Renewable Energy 

Agency (IRENA) is an intergovernmental 

organisation that supports countries in 

their transition to a sustainable energy 

future and serves as the principal platform 

for international cooperation, a centre 

of excellence, and a repository of policy, 

technology, resource and financial knowledge 

on renewable energy. IRENA promotes the 

widespread adoption and sustainable use 

of all forms of renewable energy, including 

bioenergy, geothermal, hydropower, ocean, 

solar and wind energy in the pursuit of 

sustainable development, energy access, 

energy security and low-carbon economic 

growth and prosperity. With over 130 states 

and the European Union as members, and 

active participation by many more signatories 

and applicants for membership around the 

world, IRENA helps countries achieve 

their clean energy potential and promotes 

renewable resources and technologies as the 

key to a sustainable future. 


THE CRESCENT DUNES 

PROJECT: 

CONCENTRATING SOLAR 

POWER WITH THERMAL 

ENERGY STORAGE 

By Daniel Thompson, Director of Development, SolarReserve 

Headquartered in Santa Monica, 

California, SolarReserve is a leading 

developer of large scale solar power 

projects and advanced solar thermal 

technology. With more than 5,000MW 

of projects under development, and 

more than US$1.8 billion of projects 

under construction and in operation 

including the flagship Crescent Dunes 

project, SolarReserve is a global 

leader in the development of solar 

power projects that can fully replace 

conventional coal, oil, natural gas, diesel 

and nuclear power stations. Its team has 

collectively built more than 15,000MW 

of projects across all power generation 

technologies and financed more than 

US$15 billion of projects. 

GAME-CHANGING 

TECHNOLOGY 

Long held as the holy grail of renewable 

energy, energy storage enables an 

intermittent resource – the sun – to be 

utilized at a scale and in a way that was 

never before cost-effectively possible. 

SolarReserve’s Concentrating Solar 

Power (CSP) with thermal energy 

storage technology utilises more than 

10,000 heliostats (made up of an array 

of individual mirrors) that continuously 

track the sun across the sky and reflect 

the sun onto the top of a tall tower 

which holds the receiver. SolarReserve’s 

heliostat tracking technology was 

originally developed as part of the 

International Space Station (ISS), which 

orbits the earth 15 times a day and is 

required to continually realign its solar 

panels to capture energy from the sun to 

keep the ISS’s power systems operational. 

The accuracy of the tracking technology 

is critical to ensuring energy reflected 

by the heliostats is collected through 

the molten salt in the receiver and not 

spilled and wasted. 

Molten salt is pumped through the 

receiver from a cold tank, heating the 

salt from the reflected sunlight from 288 

to 565 degrees C, where it is pumped 

into a heavily insulated hot tank and 

is able to be stored almost indefinitely. 

As electricity is needed, molten salt is 

dispatched from the hot tank through 

a heat exchanger to create superheated 

steam which then powers a conventional 

steam turbine. The molten salt is then 

returned to the cold tank where the 

process is repeated. The molten salt, 

which acts as both the heat transfer 

fluid and the energy storage medium, 

is maintained in a molten state for the 

entire 30 year life of the plant, never 

needs to be topped up and being a 

nitrate blend is able to be utilised as 

high grade fertiliser when the plant is 

eventually decommissioned. 

SolarReserve’s Concentrating Solar Power with molten salt energy 

storage process 

The de-coupling of energy collection 

and electricity generation enables 

SolarReserve’s CSP with molten salt 

energy storage technology to provide 

firm, reliable and dispatchable electricity 

– day or night. The technology enjoys 

58

all the benefits of renewable energy – 

free fuel, zero emissions, low operation 

and maintenance costs, long-term 

certainty on electricity cost – together 

with all the benefits of a conventional 

power station – dispatchable, reliable, 

proven, and grid-friendly technology. 

The technology is highly customisable 

through the sizing of the steam turbine 

generator that is installed, enabling the 

same plant to operate as a peaking plant 

delivering a large amount of energy for 

a short period of time, a mid-merit plant 

generating less energy over a longer 

period of time, or as a base load power 

station. Unlike conventional steam power 

stations which incur higher maintenance 

costs for starting and stopping the power 

station due to thermal fatigue issues 

with their large boilers, SolarReserve’s 

technology does not utilise a boiler and 

is more flexible and better equipped for 

more frequent starting and stopping of 

the power station. 

CRESCENT DUNES – NEXT 

GENERATION SOLAR 

BECOMES A REALITY 

SolarReserve is currently commissioning 

the 110MW Crescent Dunes project in 

Nevada, USA, utilising its world leading 

SolarReserve’s technology is highly customizable in size and 

dispatch profile 

CSP with thermal energy storage 

technology. The project incorporates 

10 hours (at full capacity) of molten 

salt thermal energy storage enabling 

the power station to operate for up to 

16 hours at 110MW during summer, 

and 12 hours in winter due to the 

different seasonal solar resource. The 

project is contracted to supply NV 

Energy, Nevada’s largest utility, with a 

firm and reliable block of power from 

12PM to 12AM for the next 25 years. 

NV Energy is the dominant electricity 

supplier in Nevada, supplying Las Vegas 

and Reno, which have high evening 

air conditioning and lighting demand 

that could not reliably be met with 

intermittent renewable energy sources. 

The Crescent Dunes project utilises 

10,347 heliostats that are 115 square 

metres each, combining to provide more 

than 1.2 million square metres of mirrors 

reflecting energy from the sun onto the 

receiver. The receiver and tower stand 

200m tall, and are located adjacent to the 

hot and cold molten salt tanks that each 

can hold 31,000 tons of molten salt. The 

site is approximately 2.8km wide covering 

an area of 630 hectares in the Nevada 

desert. The project is expected to deliver 

500,000MWh of electricity each year, 

twice the generation of an equivalentsized 

photovoltaic (PV) project. 

The project has created more than 4,300 

direct, indirect and induced jobs during 

construction and will create 45 fulltime 

roles to operate and maintain the 

plant. Unlike other renewable energy 

technologies, the vast majority of the 

construction of the Crescent Dunes plant 

has been completed using locally sourced 

equipment and locally sourced labour, 

injecting more than US$700 million into 

the local economy. The once booming 

mining town of Tonopah, 20 miles from 

the plant, has been revitalised from the 

investment, jobs and tax benefits delivered 

by the Crescent Dunes project. 

www.solarreserve.com 

Crescent Dunes CSP with molten salt thermal energy storage project 



ENERGY AT THE 

CENTRE OF THE 

CLIMATE CHANGE 

EQUATION 

By Marie-José Nadeau, Chair, the World Energy Council (WEC) 

As the world meets for the last time before a post-2015 climate change agreement is found, 

it is time for the energy sector to stand up and take centre stage in the debate. Simply put, 

without the active involvement of the energy sector, there cannot be a definitive agreement 

at COP21 in Paris next year. To reduce emissions to internationally agreed levels, the 

industry must address the ‘energy trilemma’ – balancing security, access and mitigation of 

adverse effects. 

It is abundantly clear from the recent 

IPCC reports from Working Groups II 

(Adaptation) & III (Mitigation) that the 

energy industry is central to the climate 

change equation. Indeed, the energy 

sector is the largest single contributor to 

global GHG emissions. In 2010, no less 

than 35 per cent of direct GHG emissions 

came from energy production. Moreover, 

in recent years, the long-term trend of 

gradual decarbonisation of energy has 

reversed. From 2000 to 2010, the growth 

in energy sector emissions outpaced the 

growth in overall emissions by around 1 

per cent per year due to the increasing 

share of coal in the energy mix. 

We need to act: without mitigation 

policies, the global average temperature is 

likely to rise by between 2.6 ˚C and 4.8 

˚C by 2100 from pre-industrial levels. 

Furthermore, economic growth and the 

rising global population will continue 

to drive energy demand upwards and 

with it a commensurate rise in GHG 

emissions. There is evidence that climate 

change itself may also increase energy 

"Economic growth and the 

rising global population will 

continue to drive energy 

demand upwards." 

use due to greater demand for cooling, 

leading to an ever-growing vicious cycle. 

From annual emissions of 30 gigatonnes 

(Gt) of carbon dioxide (CO 2 

) in 2010, 

projections indicate that in the absence 

of policies to constrain emissions, the 

emissions associated with fossil fuel use, 

including the energy supply sector but 

also energy use in transport, industry and 

buildings, would contribute 55–70Gt 

CO 2 

per year by 2050. To reduce 

emissions to levels commensurate with 

the internationally agreed goal of keeping 

the temperature increase since preindustrial 

times below 2 ˚C, the share of 

low-carbon electricity generation by 2050 

will need to triple or quadruple. 

THE ENERGY ‘TRILEMMA’ 

The energy community in general and 

energy ministers in particular need to be 

part of discussions on an international 

60


Credit: Photo Hydro-Québec 

climate agreement: there can be no 

effective international climate framework 

in the absence of strong and balanced 

national energy policy frameworks. 

Well-functioning and balanced national 

energy policy frameworks are the only 

viable enforcement mechanism for an 

effective international climate agreement. 

The WEC is working hard to promote 

such sustainable energy that will 

eventually underpin a global climate 

accord. WEC views the world in terms 

of the Energy ‘Trilemma’, the tradeoff 

between energy security, energy 

access and environmental mitigation. 

Creating the right balance between 

these three imperatives is the secret to 

the establishment of a sustainable energy 

future. In October, in preparation for 

COP20, WEC and the Colombian 

Presidency convened a high-level 

summit attended by over 20 ministers 

and other senior government officials 

from Latin America and across the world 

to discuss energy resilience. It was clear 

from that meeting that energy leaders in 

Latin America are giving climate change 

issues the importance that they deserve 

despite wider concerns about economic 

growth, job creation, energy security 

and energy equity. However, despite 

growing awareness of climate issues, it 

is apparent that the region also needs to 

give a greater focus on the third pillar 

of the Energy Trilemma: environmental 

mitigation. COP20 could provide the 

impetus that the region needs. 

ENVIRONMENT STRESS 

FROM GROWING ENERGY 

DEMAND 

We cannot escape the fact that growing 

demand for energy from a rising and 

increasingly prosperous population will 

lead to an increase in GHG emissions. 

Global energy demand is set to increase 

by 1.5 per cent per year through to 

2035 and this alone will require massive 

undertaking in terms of the required 

investments. This in itself makes the case 

for a global framework agreement. 

To meet the projected growth in 

demand, an estimated cumulative 

investment of US$40.2 trillion is 

required across the energy infrastructure 

supply chain over the period 2014-2035 

with an additional $8 trillion investment 

needed in energy efficiency measures 

and more energy efficient technologies. 

These investment requirements rise by 

over 5 per cent to US$53 trillion in 

cumulative investment by 2035 if the 

target is set to a 2˚C emissions path as the 

speed at which the decarbonisation of the 

energy sector takes place would need to be 



"There has been a growth 

in interest among electricity 

utilities in shaping a business 

adaptation response." 

increased substantially. This decarbonisation 

will involve shifting away from fossil fuels 

and doubling the investments in lowcarbon 

technologies such as renewables, 

nuclear and energy efficiency. 

In order to ensure that the necessary 

investments are made, there needs to be 

a clear outcome in the climate change 

negotiations since this will necessarily 

impact on key investment decisions in 

new energy infrastructures. 

WEC’s World Energy Trilemma report 

points out that there will be financial 

implications arising from stronger 

climate policies. These will be mixed 

across the energy industry. For example, 

under a 2 ˚C trajectory, net revenues 

for existing nuclear and renewablesbased 

power plants would be boosted 

by US$1.8 trillion through to 2035, 

while the revenues from existing coalfired 

plants would decline by a similar 

level. Of new fossil-fuelled plants, 8 

per cent would be retired before their 

investment is fully recovered. Looking 

to oil and gas, it is estimated that no 

oil or gas field currently in production 

would need to shut down prematurely. 

However, some fields will not be able 

to be developed before 2035, and 5-6 

per cent of proven oil and gas reserves 

do not start to recover their exploration 

costs in this time-frame. Further out in 

time, research has estimated that between 

60-80 per cent of coal, oil and gas 

reserves of publicly listed companies are 

‘unburnable’ if a global warming of 2 ˚C 

is to be avoided. 

THE IMPACT OF EXTREME 

WEATHER 

The energy industry is not just a major 

contributor to climate change but a 

sector that climate change will disrupt. 

For example, as the IPCC points out, 

the oil and gas industry is likely to 

suffer from increased disruption and 

production shutdowns due to extreme 

weather events affecting both offshore 

and onshore facilities. Power plants and 

transmission infrastructures, especially 

those in coastal areas, will be affected 

by extreme weather events and rising 

sea levels. 

In a poll of power utilities to be presented 

in Lima at COP20 as part of the Global 

Electricity Initiative (GEI, of which WEC 

is a partner along with the World Business 

Council for Sustainable Development 

and Global Sustainable Electricity 

Partnership) it was revealed that 72 per 

cent of companies indicate that extreme 

weather events have severely affected their 

operations and infrastructure and have 

already caused power outages at least once 

in the last ten years. 

Critical energy transport infrastructure is at 

risk. Electricity grids will be impacted by 

storms, and the rise in global temperature 

may affect electricity generation including 

thermal and hydroelectric stations in some 

locations. In general, the industry has 

options for adapting to climatic changes, 

but at huge costs. 

Extreme weather events such as 

Hurricane Sandy in 2012, which inflicted 

about US$60bn in damage in the northeast 

of the United States, is evidence 

of the need for an amplified focus on 

adaptation by many power companies. 

As a result, we see that in recent years 

there has been a growth in interest among 

electricity utilities in shaping a business 

adaptation response to climate change. 

Most of the companies in the GEI use 

weather and climate forecasting to ensure 

reliability of supply and continuity of 

operations. Being able to adjust rapidly 

and nimbly to climate variability and 

climate change is a key feature of what 

are termed more resilient approaches to 

climate change. Such utilities have been 

forced to make significant investments 

to increase the robustness of systems 

and lines previously impaired due to 

extreme weather conditions, and to 

incorporate this thinking into future 

infrastructural concerns. They are also 

working on changing the design and 

technical specifications of infrastructure, 

and investing in climate change research 

including forecasting systems and climate 

modelling; and installing early warning 

systems. 

Energy ministers need to be at the centre 

of the climate change negotiations. 

WEC through its events and network 

of leaders at a national level continues 

its work to make sure energy leaders 

put the environment at the top of their 

agenda and contribute to building the 

national frameworks that will contribute 

to finding a global agreement in 2015. 

Lima absolutely needs to take a positive 

step towards a final accord in Paris in 

2015. 

Marie-José Nadeau is Chair of the World 

Energy Council. Her experience as a 

senior corporate executive has given her an 

understanding of the complex issues facing 

the energy sector today, the ability to build 

consensus and collaboration among members 

and to advance the highest ethical standards 

for WEC. She has been a member of the 

leadership team of Hydro-Québec for 20 years 

and is currently Executive Vice President, 

Corporate Affairs & Secretary General. Before 

joining Hydro, she held various strategic 

positions within the Governments of Canada 

and Québec. She is also a past Chair of the 

Board of Directors of the Canadian Electricity 

Association. She is a past Vice-chair of the 

Energy Council of Canada. 

The World Energy Council (WEC) is 

the principal impartial network of leaders 

and practitioners promoting an affordable, 

stable and environmentally sensitive energy 

system for the greatest benefit of all. Formed 

in 1923, WEC is the UN-accredited global 

energy body, representing the entire energy 

spectrum, with more than 3000 member 

organisations located in over 90 countries and 

drawn from governments, private and state 

corporations, academia, NGOs and energyrelated 

stakeholders. 

62


SUNNY LATIN AMERICA: 

A PROMISING NEW FRONTIER 

FOR SOLAR 

By Maria Gabriela da Rocha Oliveira, Business Development Manager – Brazil, First Solar 

solar energy that is cost competitive with 

fossil fuels a reality. The time for solar 

energy is now. 

There is a source of energy 

that begins and ends each day. 

A source that is sustainable 

and more affordable than 

ever before. The time for solar 

energy is now. 

Latin America is breaking the established 

paradigm of solar being a subsidy-driven 

market. From Chile, Brazil, and Mexico 

to the smaller economies of Central 

America, solar is being developed 

without specific policy incentives. 

Utility-scale and distributed solar are 

poised to grow in this heterogeneous 

region as power prices spike and system 

costs decline – and the need to diversify 

away from large-scale hydro and fossil 

fuels becomes ever more pressing. 

Since its founding in 1999, First 

Solar has been leading the charge to 

affordable solar electricity on a global 

scale. In 2009, First Solar was the first 

solar company to break the $1/watt 

manufacturing cost barrier and to 

produce 1GW in a single year. Since 

then, the company continues to push 

boundaries across the entire solar value 

chain and across diverse regions to make 

Northern Chile boasts one of the 

highest irradiation levels in the world 

and Chilean firms are hungry for power. 

This year, First Solar broke ground on 

the 141MW Luz del Norte photovoltaic 

(PV) plant near Copiapó in northern 

Chile. Once it is operational, Luz del 

Norte will be the largest PV project in 

Latin America. This large-scale plant, 

equipped with our proprietary power 

plant control system, will help actively 

stabilise the Chilean electricity grid 

while helping the Chilean government 

meet its renewable energy expansion 

capacity target of 20 per cent by 2025. 

REPLACING FOSSIL FUEL 

Countries in Central America rely 

heavily on fossil fuel imports for 

electricity generation. This situation is 

unsustainable from an economic and 

environmental standpoint. Our hybrid 

system solutions reduce liquid fuel 

dependence and the risk of fuel price 

volatility in regions like Central America. 

On 31 October 2014, the Brazilian 

government tendered close to 900MW 

of solar power purchase agreements 

(PPAs) to developers interested in 

building utility-scale solar projects 

without subsidies. Today, renewable 

energy in Brazil is not seen as an 

alternative source of power, it is seen as 

mainstream – thanks to the government 

sponsored reverse power tenders. 

TAKING ENERGY FORWARD 

At First Solar, we are taking energy 

forward – and making solar mainstream 

– with innovative solutions that are cost 

competitive with conventional energy 

sources, while catering to the different 

needs of each of the markets we do 

business in. We seek to uncover solutions 

in each of these promising markets to 

address their diverse energy needs. First 

Solar seeks to enable a world powered by 

clean, affordable solar electricity. 

www.firstsolar.com 


COLOMBIA’S PRODUCTIVE 

TRANSFORMATION PROGRAM 

(PTP) – A PUBLIC-PRIVATE 

PARTNERSHIP TOWARDS A 

SUSTAINABLE FUTURE 

Colombia recognises the 

transformation power that 

clean and sustainable 

technologies have in the 

economic and industrial 

development of the country. 

For this reason through 

the PTP, the Government 

of Colombia works handin-hand 

with the private 

sector in developing and 

fostering the use of clean 

technologies as part of its 

industrial policy. 

The Productive Transformation 

Program (PTP) promotes 

GROWTH and COMPETITION 

in 20 strategic industries 

by enabling Colombian 

entrepreneurs to think and act 

differently in order to achieve 

extraordinary results. 

Colombia is making progress in several 

sustainable development initiatives such 

as the low carbon development strategy 

(ECDBC) and the rational use of energy. 

Colombia undertook as a national 

commitment at COP16 to stimulate 

the growth of biofuel production, 

without endangering natural forests or 

food security in the country, through 

promoting the use of these fuels in the 

national market. At the present time, there 

is a mandatory blend of about 10 per 

cent in the national territory. Colombia 

belongs to a select group of 30 countries 

that produce all their own raw material for 

biofuels. This provides major competitive 

advantages since it is based on advanced 

feedstocks: sugar cane for ethanol, and 

palm oil for biodiesel. These have been 

determined through life-cycle assessments 

as the two most efficient current premium 

feedstocks, with greenhouse gas savings of 

74 per cent and 83 per cent respectively. 

This is according to a life-cycle analysis 

performed by the Consortium: National 

Cleanest Production Center, Pontificia 

Bolivariana University, and the Swiss 

Federal Laboratories for Materials Science 

and Technology. 

In support of this, the government has 

promoted a bill on Renewable Energy 

and Energy Efficiency in which biomass 

is included. This law aims to integrate 

renewable sources of energy such as 

biomass into power generation through 

national grid and off-grid projects. This 

initiative, together with energy efficiency, 

will increase Colombia’s energy security 

and access to electricity while promoting 

sustainable development. 

Colombia has the potential to increase 

production over more than ten times the 

current areas of energy crops, without 

affecting environmental sustainability. 

The goal is to achieve a production 

model organised around the concept of 

regional bio-economies as an opportunity 

to address complex inter-connected 

challenges while achieving economic 

growth. The bio-economies model will 

allow the optimisation of production, the 

creation of new products, applications 

and services, the increase of research 

and development of new technologies 

or improvement of the existing ones, 

and the consolidations of an advance 

scheme of relations between the different 

stakeholders that will ensure their 

sustainability in the global environment in 

which the industry is developing. 

www.ptp.com.co 

www.mincit.gov.co 

64

* FAO’s Food wastage footprint: Impacts on natural resources

SUSTAINABLE AGRICULTURAL 

MECHANISATION: 

LEADING THE WAY TOWARDS 

FOOD SAFETY AND A SMALLER 

ENVIRONMENTAL FOOTPRINT 

By Andrea Maselli, Business Director Agricultural Equipment, New Holland Agriculture 

Feeding a planet whose population 

is projected to grow by 2.5 billion in 

less than 40 years, reaching 9 billion, 

is daunting. To do so while preserving 

natural resources and dealing with 

climate change is the challenge we all 

face today, and it is high up in every 

government’s, NGO’s and international 

organisation’s agenda. The theme for the 

Global Expo that will be held in Milan 

in 2015 is ‘Feeding the Planet, Energy 

for Life’, and is symptomatic of how 

preoccupied the world is with this topic. 

The Food and Agriculture Organization 

of the United Nations (FAO) identifies 

access to up-to-date farming technologies 

and practices as being crucial in addressing 

this challenge, and at New Holland we 

are aware of the responsibility we bear, as 

a major global player in agriculture. We 

believe we have an important role to play 

in supporting a sustainable development 

of agriculture through increased 

productivity within a healthy ecology, 

rural economic development, precision 

and land management to measure results 

and impel innovation and the availability 

of diverse technologies compatible with 

local contexts and needs. 

EXTENDING ACCESS TO 

MECHANISATION 

To achieve this broad objective, we 

are driving our efforts in two main 

directions. On the one hand, we are 

working on extending mechanisation 

as widely as possible around the globe, 

targeting local needs and possibilities, 

developing specific products to make 

mechanisation accessible to the 

maximum number of farmers, and 

providing them with the means to 

increase the productivity of their soil in 

respect of healthy ecosystems. 

MAXIMISING PRODUCTIVITY 

AND EFFICIENCY 

Secondly, we are focusing on maximising 

the efficiency of cultivated land to ensure 

continuous growth and development. 

One of the ways we are doing this is by 

developing high productivity equipment 

such as the recently launched CR10.90 

combine harvester, the world’s most 

powerful combine with the highest 

capacity in the industry. This new machine 

has over 15 per cent more productivity 

than what was considered a high capacity 

combine a decade ago with lower 

emission and fuel consumption and less 

soil compaction. This major improvement 

is the result of our consistently high 

investment in research and development, 

and has been achieved through advances 

in our harvesting and engine technologies. 

Maximising efficiency is also about using 

technology to boost the productivity 

of every square inch of the field. New 

Holland’s Precision Land Management 

(PLM) systems enable farmers to manage 

efficiently their equipment, land, labour 

and inputs in all phases of the crop 

production cycle. 

TECHNOLOGICAL 

INNOVATION TO DO MORE 

WITH LESS 

Technological innovation is crucial 

in achieving the dual objective of 

increasing productivity and reducing 

the environmental impact of agriculture. 

This is equally true where mechanisation 

is already advanced and in those parts of 

the world where it is in its infancy. 

It is technological innovation that 

enables us to raise productivity and 

increase efficiency, so that our fields 

yield more crops per acre and require 

less labour, fuel and inputs to do so. It 

has also led to great advances in operator 

comfort, which means longer and more 

productive working days – and improved 

safety on the farm. 

66

"Maximising efficiency is 

about using technology to 

boost the productivity of 

every square inch of the field." 

Another important contribution of 

technological innovation is the reduction 

of waste. This comes in a variety of ways, 

from the minimal grain losses of a modern 

combine harvester to the significant fuel 

savings due to the exceptional efficiency 

of modern engines, or the avoidance 

of overlaps when applying inputs such 

as fertilisers and pesticides that comes 

with precision farming, with consequent 

advantages to the environment and savings 

in the cost of inputs. 

REDUCING THE 

ENVIRONMENTAL FOOTPRINT 

OF AGRICULTURE 

Mechanisation has an important role 

to play in reducing the environmental 

footprint of farming. As highlighted 

by FAO, there are two areas where it 

can help considerably in this respect: 

soil tillage and pesticide application. 

No-till or low-till practices help 

conserve the soil’s natural nutrients and 

reduce the need for fertilisers. These 

conservation agriculture practices 

require modern pneumatic seeders such 

as those available in New Holland’s 

range, while the guidance systems in 

our PLM are very helpful in controlled 

traffic farming that ensures most of the 

cropped land is never affected by traffic 

soil compaction, leading to significant 

yield increases. PLM’s application 

control systems enable spraying with 

precision only where needed, reducing 

the use of chemicals. 

The other way to reduce farming’s 

environmental footprint is by cutting 

the emissions of machinery. Over the 

past ten years New Holland has achieved 

a more than 100-fold reduction in the 

level of pollutant emissions from its 

machines. This means that a modern 

New Holland tractor with an engine 

in compliance with Tier 4A regulations 

would have to run for 100 days to 

produce the same overall quantity of 

emissions that a Tier 1 engine tractor 

would in a single day. 

GROWING ENERGY 

Agriculture can also contribute to the 

fight against climate change through 

the use and production of biofuels from 

agricultural residues and crops not for 

human consumption. It can go even 

further and generate energy from entirely 

renewable sources by growing herbaceous 

and ligneous crops to produce biomass. 

This is at the heart of New Holland’s 

‘Energy Independent Farm’ project, 

which envisages energy self-sufficiency 

of farms through a combination of 

renewable sources to generate energy 

and use it to power the methane tractor. 

We are all facing a daunting challenge. At 

New Holland we see it as an opportunity 

to take the lead in fostering the creation 

of a sustainable agriculture, using 

technology and innovation to maximise 

efficiency and reduce its environmental 

footprint, and supporting the introduction 

of increased mechanisation and good 

farming practices across the world. 

www.newholland.com 

www.thecleanenergyleader.com 



HUNGER-FREE LATIN 

AMERICA AND THE 

CARIBBEAN 

By Raúl Benítez, Assistant Director-General and Regional Representative 

for Latin America and the Caribbean, Food and Agriculture Organization of 

the United Nations (FAO) 

Latin America and the Caribbean is the region that has shown the greatest global progress in 

the fight against hunger. As a whole, it has already reached the core Millennium Development 

Goal (MDG) hunger target by a comfortable margin and is very close to meeting the more 

ambitious World Food Summit (WFS) target. Much of the region’s success has resulted from 

rapid hunger reduction in Latin America; while the Caribbean has seen slower progress in 

fighting undernourishment, it has also contributed to the regional advance. 

According to the State of Food 

Insecurity in the World 2014, published 

by FAO, the prevalence of hunger 

in the Latin America and Caribbean 

region has declined to 6.1 per cent, 

little more than one-third of the 

burden in the early 1990s. This 

exemplary improvement is the result 

of government-led efforts combining 

support for production with social 

protection, but its success relies on 

the fact that national initiatives have 

been supported by a much wider 

commitment. Over the last decade the 

region has played an outstanding role 

worldwide, leading the implementation 

of a political approach to combat 

hunger. Latin American and Caribbean 

societies have decided to end hunger, 

parliaments are granting resources and 

constitutional status to the right to 

food and the region became the first 

to commit – nearly 10 years ago – to 

the goal of zero hunger by adopting 

the Hunger-Free Latin America and 

the Caribbean Initiative 2025. This 

Initiative, reaffirmed by the region’s 

leaders at recent summits of the 

"Improvement relies on the 

fact that national initiatives 

have been supported by a 

much wider commitment." 

Community of Latin America and the 

Caribbean States (CELAC), has served 

as a template for similar commitments 

in Africa and is the best example of the 

priority that food security and hunger 

eradication occupies in the region’s 

political and social agenda. 

Coordination between all actors 

involved at national level, including 

non-governmental social sectors, the 

private sector, civil society, producer 

organisations and all government 

ministries involved in the fight against 

hunger and malnutrition, has been 

key to the success of the policies that 

countries have enacted to reduce hunger 

and malnutrition. These include social 

policies to improve food access – the 

region’s Achilles’ heel in terms of food 

insecurity – such as conditional cash 

transfer programmes, which 21 countries 

already have in place, supporting 

over 120 million people. Support 

for family farming is also among the 

main policies backed by the region’s 

governments, and in recent years they 

have begun supplying their school 

feeding programmes by using the public 

budget to purchase products from family 

farms, ensuring better nutrition to 

schoolchildren while also boosting local 

development and agricultural production. 

This is just one example of the type of 

innovative win-win scenarios that are the 

backbone of regional food security. 

68


The region’s governments have begun supplying their school feeding programs by using the public 

budget to purchase products from family farms, ensuring better nutrition to schoolchildren while also 

boosting local development and agricultural production. 

©Verena Urrutia FAO 

INITIATIVES TO 

FIGHT HUNGER AND 

MALNUTRITION 

Great challenges remain despite the 

progress made so far: 37 million people 

still suffer hunger, 164 million live in 

poverty (27.9 per cent of the regional 

population) and 68 million are indigent 

(11.5 per cent of the population). 

While 14 countries have met the 

MDG target and 10 have met both the 

MDG and WFS targets, nearly half of 

the region’s nations have a prevalence 

of malnutrition that exceeds 10 per 

cent. Moreover, there are substantial 

variations even within sub-regions and 

countries, since there are geographic 

zones and social groups where poverty 

and food insecurity prevail. This is 

particularly true in rural areas, where 

poverty affects 52 per cent of the 

population and almost a third endure 

extreme poverty. Indigenous people 

in the region are far more likely to 

suffer poverty and hunger, while female 

poverty has also increased, despite a 

steady decline across the board. 

FAO is working closely with 

governments, civil society, academia 

and the private sector to tackle all these 

challenges and build the road to ‘zero 

hunger’ through three main regional 

initiatives, mandated by its member 

countries during the Regional FAO 

Conference held in March 2014 in 

Santiago, Chile (pictured). 

The first regional scheme is the 

continued and strengthened support of 

the Hunger-Free Latin America and 

the Caribbean 2025 Initiative, HFLACI, 

to help to create the conditions that 

will contribute to the permanent 

eradication of hunger in a time frame 

corresponding to one generation. 

FAO is supporting the HFLACI in the 

design and implementation of multisectoral 

public policies and programmes, 

improving institutional capacities, legal 

frameworks, as well as in identifying the 

human and budgetary resources needed 

to reach national hunger reduction 

goals. This entails better technical 

support for specific policies to increase 

food productivity, supply chains and 

the resilience of family farming. Better 



design and implementation of national 

actions will have a direct impact on the 

fight against hunger. 

This regional initiative is working 

to ensure the inclusion of different 

stakeholders and bolster collaboration 

with the region’s main governance 

institutions. FAO is helping CELAC 

create a regional plan for the 

eradication of hunger and poverty and 

is also providing technical support to 

Petrocaribe-ALBA to create the “Hugo 

Chávez Frías Eradication of Hunger 

and Fight against Poverty Plan”, backed 

by Venezuela, which will work in 19 

countries in pursuit of zero hunger. 

FAO is also supporting the Latin 

American Parliament’s creation of the 

Framework Law on Family Farming, and 

is helping to ensure better coordination 

among countries, through South-South 

cooperation. 

The second regional initiative centres 

on family farming and rural territorial 

development. Most governments in the 

region have recognised that promoting 

family farming can alleviate poverty, 

hunger and combat food insecurity. Most 

of the rural population in the region 

continues to depend on agriculture to 

make a living and generally work on 

small-scale family farms. In Central 

America, for instance, almost one-third 

of the total working population is 

engaged in family farming, producing 80 

per cent of staple foods. 

FAO is working to strengthen 

government institutions and producers’ 

organisations, promoting the 

participatory design and implementation 

of family farming and rural development 

policies, working to improve residents 

of the countryside’s access to productive 

resources and services, while reinforcing 

agri-food value chains to increase 

market opportunities and transition 

towards sustainable rural development. 

FAO will support the implementation 

and integration of relevant national 

policies and programmes, linking family 

farming to social protection and decent 

employment strategies in rural areas, 

and promoting connections between 

family farms and food supply chains 

through initiatives such as the public 

purchase of their products for the supply 

of school feeding programmes. FAO has 

also been asked by CELAC to provide 

support for the implementation of a 

regional integration agenda on rural 

development and family farming, to 

promote the exchange of experiences 

and cooperation between nations. 

The third initiative centres on the 

Caribbean and is addressing two 

fundamental problems that region faces: 

Limited value-chain development of 

food and feed crops and low utilisation 

of domestic agricultural products. 

The underlying causes of these two 

problems lie in inadequate market 

linkages between producers and users 

of agricultural products, so FAO is 

working with countries and stakeholders 

to improve value chains for selected 

agricultural commodities, and to boost 

the productivity, trade and utilisation of 

local products. 

WORKING WITH 

GOVERNMENT 

Climate change is a major challenge 

that affects the whole region. FAO is 

working at the highest levels of regional 

governance, such as CELAC, to promote 

the transition towards climate smart 

agriculture, while continuing its support 

DROUGHT AND SEVERE 

WEATHER WARNINGS 

Early warning systems and 

drought observatories have 

been supported by FAO in 

several countries to give 

proper notice to producers 

of threatening weather 

conditions. These have 

resulted in a reduction of the 

impact of severe weather 

events, which have become 

more common and also more 

intense stronger due to climate 

change. Countries such as 

Uruguay, Chile and Peru have 

asked FAO’s assistance to 

create policies for climate 

change adaptation and risk 

management in sectors such 

as agriculture, fisheries, 

aquaculture and livestock, 

while the Organization has 

helped Colombia and Mexico to 

evaluate the economic impacts 

of climate change on the 

agricultural sector, a necessary 

step in creating climate smart 

agriculture to continue the 

region’s developments towards 

the goal of eradicating hunger. 

of initiatives such as agroforestry projects 

in Central America, which increase 

crop yields, capture carbon and generate 

greater resilience of local food and 

agriculture systems to changing climate 

forces. FAO is helping governments 

design public policies to conserve 

agrobiodiversity and to encourage 

agroecology, both of which place strong 

emphasis on rescuing traditional crops 

and agricultural practices for the region’s 

indigenous peoples and family farmers. 

"FAO is working with 

countries and stakeholders 

to improve value chains for 

selected agricultural 

commodities." 

Specific sites and regions – the island of 

Chiloé, in Chile, and Andean agriculture 

as a whole, both of which have played 

outstanding roles in the birth and spread 

of the potato – have been awarded 

recognition as agricultural ‘heritage 

systems’ for the conservation of genetic 

resources and agricultural patrimony. 

Such assets are strategic for national, 

regional and even global food security. 

70


REDUCING WASTE 

According to FAO, the food currently lost 

or wasted in Latin America could feed 

300 million people, almost eight times 

the amount of people who suffer hunger 

in the whole region. This waste or loss 

impacts the sustainability of food systems, 

reduces local and global food availability 

and generates less income for farmers 

while raising prices for consumers. 

FAO is organising a regional expert 

consultation to draft voluntary guidelines 

on food waste and losses, targeting issues 

along the food chain. The meeting will 

also offer important input for FAO’s 

contributions to CELAC’s hunger and 

poverty eradication plan, which will 

address food loss and waste directly. 

As part of the global SAVE FOOD 

Initiative, a joint effort by FAO and 

Messe Düsseldorf, FAO’s Regional 

Office for Latina America and the 

Caribbean has launched a regional 

campaign aimed primarily at consumers 

to raise awareness of food waste, under 

the motto Zero Loss Waste/Zero 

Hunger. FAO is also supporting projects 

around the Caribbean to eliminate food 

losses in the production of cassava, and 

is giving support for the creation of a 

Food Bank in the Dominican Republic 

along the lines of institutions that already 

exist in Costa Rica, Chile, Guatemala, 

Argentina, Brazil and Mexico. 

A COMMON GOAL 

The eradication of hunger in Latin 

America and the Caribbean is no longer 

the dream of individual countries; it 

has become a common goal towards 

which the region marches together. 

The level of commitment that can be 

seen gives room for optimism and has 

demonstrated concrete results: since 

1990/92, 31.5 million people have 

escaped the clutches of hunger thanks 

to the combination of political will, 

productive and social policies and 

coordination among all stakeholders. 

The road ahead is still daunting and the 

challenges are many, but the main factor 

that makes zero hunger a possibility 

is that food and nutritional security 

is no longer a secondary concern for 

governments. It is a top priority today. 

The right to food has become part of 

the constitution of many countries, 

making food security a national policy 

that no longer depends on the whims of 

any individual government. 

If steps are taken to face both the most 

urgent challenges and underlying causes 

of undernourishment, and national, 

subregional and regional actions are 

stepped up, the goal of eradicating 

hunger by the year 2025 set by the 

Hunger-Free Latin America and the 

Caribbean Initiative can be achieved. 

This has the potential to dramatically 

change the region’s development and the 

well-being of its citizens, especially since 

hunger is a glaring injustice in a region 

that has become a major player in the 

global food market. 

Latin America and the Caribbean 

are leading the global fight against 

undernourishment. Now one final 

push is needed to show the world that 

complete food security can be achieved 

"One final push is needed to 

show the world that complete 

food security can be achieved 

during our life-spans." 

"The level of commitment 

that can be seen gives room for 

optimism and has 

demonstrated concrete results." 

during our life-spans. Attaining it will 

not only mark a historical milestone 

for the development of the region, it 

will be living proof that hunger can be 

overcome by all humanity. 

That is our goal as members of the 

United Nations, and FAO is dedicating 

all its efforts to fulfilling that purpose. 

Raúl Osvaldo Benítez is Assistant Director- 

General and Regional Representative for 

Latin America and the Caribbean, UN 

Food and Agriculture Organization (FAO). 

An Argentine, he has had a distinguished 

career in economics, agriculture and rural 

development. Mr Benítez assumed his 

duties at the FAO Regional Office for Latin 

America and the Caribbean in Santiago, 

Chile, in 2012. He was recently Minister 

for Production and Economic Development 

in San Juan, Argentina, where he led the 

province to the top of the country’s economic 

growth list, with the lowest unemployment 

rate in 30 years. He has worked in 

organisations such as the Inter-American 

Development Bank (IDB), the World 

Bank, NGOs and private sector concerns. 

He was Assistant Professor of Economics 

at the Catholic University of Cuyo, and 

Associate Professor of Macroeconomics at 

the National University of San Juan. In the 

Argentine Ministry of Agriculture, Livestock 

and Fisheries, he assumed responsibility for 

designing the Programme for Improving the 

Incorporation of Argentina’s Small-scale 

Farmers into Value Chains. 

The Food and Agriculture Organization 

of the United Nations (FAO) has the 

mandate to raise levels of nutrition, improve 

agricultural productivity, better the lives 

of rural populations and contribute to the 

growth of the World Economy. Achieving food 

security for all is at the heart of FAO’s efforts 

– to make sure people have regular access 

to enough high-quality food to lead active, 

healthy lives. 


FOOD WASTE: CREATING 

A BETTER WAY FOR LIFE 

By Jerome Peribere, CEO, Sealed Air Corporation 

– millions of people 

become ill every year and many die 

from unsafe food. Food-borne and 

water-borne diarrhoeal diseases, taken 

together, kill about 2.2 million people 

annually, 1.9 million of them children. 

Increasing urbanisation is expected to 

increase food-borne illnesses. 

– at least 40 per cent 

of the food we produce is never 

consumed. The water, energy and 

resources used to produce this food 

are wasted. In addition, food waste that 

decomposes in landfills is a significant 

source of greenhouse gas emissions. 

As organisations around the world 

collaborate to address climate issues, 

how can we re-imagine opportunities 

to bring new insights and renewed 

energy to make a difference? One such 

opportunity to make a difference is food 

waste. Those who have done business 

with me know I hate waste in all forms. 

In fact, it is a passion for how I run 

business because I believe eliminating 

waste, whether it is wasted materials or 

wasted time, can be achieved by making 

waste prevention a priority. 

I bring the same philosophy to how the 

world feeds itself: Food – Waste – and 

Sustainability. Consider these three 

pressing issues facing our food supply 

chain that we need to address – for 

reasons both altruistic and economic: 

. We are more conscious 

of the impact our actions have on 

the environment, yet we throw away 

billions of tons of food a year that 

could feed hungry people. 

We urgently need innovative solutions 

and collaborative actions to take on 

these enormous challenges. We cannot 

overcome them with old thinking. And I 

repeat: . 

– increased population 

and consumption will require at least 50 

per cent more food by 2030. That food 

must increasingly be distributed from all 

over the world. Examining every step 

in the food supply chain – from farm 

to fork, as they say – there is the risk for 

contamination, damage and waste. 

We are at a crossroads for balancing 

sustainable business, caring for the 

environment, and the ability to 

adequately feed the world’s people. This 

is something Sealed Air, my colleagues in 

the food industry, and the world at large 

have been grappling with for some time. 

The challenge is not new. The challenge 

now is not just to do more of the same. 

The challenge is to embrace a new way 

of thinking for sustainability. 

Sealed Air is working hard to address 

these challenges. We are integrating 

sustainability as part of our business. We 

are addressing food waste by following 

three paths – collaboration, innovation 

and education. 

. We can all make inroads 

by working together to understand 

. We are producing more 

than enough food to feed the planet, yet 

hundreds of millions of people starve; 

. We have made significant 

advances in technology and 

distribution, but food contamination is 

still a large societal problem with fatal 

consequences regardless of wealth; and 

"Food waste that 

decomposes in landfills is a 

significant source of 

greenhouse gas emissions." 

72

"Our business is not just 

products and services, but is 

actually sustainability and our 

overriding goal is to create a 

better way for life." 

where and how food is being wasted. 

We look beyond the single product 

or service to consider the value 

chain where the solution is part of a 

broader life-cycle involving sourcing, 

distribution, use and even disposal. 

By doing so, we can improve access 

to a more secure food supply chain – 

one that is safer and more nutritious; 

more efficient and less wasteful. For 

example, we have seen how efficient 

production methods for foods such as 

beef, pork and chicken, coupled with 

our packaging, cleaning and hygiene 

solutions, can reduce waste across 

global supply chains while meeting 

demands for protein in urban areas. 

plays a vital role in 

preventing food from going to 

waste. Packaging technologies that 

extend shelf life, reduce damage or 

help consumers to portion or reseal 

foods, have all been shown to reduce 

food spoilage during distribution, 

allowing customers to grow their 

businesses and, especially, to reduce the 

amount of food that may be wasted 

by the consumer. Use of packaging 

technologies such as modified 

atmosphere packaging, for produce 

and baked goods, leads to significant 

extension in the time that foods can 

remain fresh. 

is essential. From 

production to consumption, 

understanding the factors that lead 

to food contamination and spoilage 

can dramatically reduce illness and 

prevent food from spoiling before it 

can be consumed. For example, better 

labelling to communicate the best 

way to store various food products, or 

how long foods remain safe to eat, can 

reduce waste in our households. 

We apply this strategy as broadly as 

possible – with a focus on helping all 

people live healthier and eat better. 

And when we apply this approach on 

a global scale, we are not only assuring 

our long-term future by keeping 

our local communities thriving, we 

are encouraging and strengthening 

developing regions of the world. We are 

finding that appropriate balance of the 

nexus between food, energy and the use 

of our natural resources. This is what 

sustainability is all about. Our business 

is not just products and services, but is 

actually sustainability and our overriding 

goal is to create a better way for life. This 

is how we think, and how we act each 

and every day at Sealed Air. 

www.sealedair.com 



TACKLING THE 

CLIMATE CHALLENGE 

WITH ICTS 

By Dr Hamadoun I Touré, Secretary-General of the International 

Telecommunication Union (ITU) 

The world is approaching a critical juncture where we are left with dramatically reduced 

chances of tackling the causes and effects of climate change. Continued high resource 

consumption, a reliance on carbon-intensive and polluting technologies and growing 

population pressures threaten environmental sustainability and development outcomes 

as never before. As information and communication technologies (ICTs) are increasingly 

integrated into every aspect of the global economy, they should logically be considered as 

a central element in any framework for addressing climate change. 

The Fifth Assessment Report by the 

Intergovernmental Panel on Climate 

Change (IPCC) states that each of the 

last three decades has witnessed an 

increasingly warmer climate on earth 

than any preceding decade since 1850. 

Total positive radiative forcing since the 

industrial revolution in the late 1700s 

has led to an increase in the atmospheric 

concentration of greenhouse gases, 

particularly carbon dioxide (CO 2 

). 

The continued increase of CO 2 

emissions 

has accelerated the negative effects of 

climate change on the environment, 

such as higher sea levels and extreme 

weather events, including both heavy 

rains and droughts, which have risen 

by 38 per cent between the 1980s and 

2000s. Climate change is also predicted 

to alter the quality and productivity of 

natural resources and ecosystems, some 

of which may be irreversibly damaged, 

further decreasing biological diversity 

and negatively impacting human health 

and economic development. 

Although time is running out, it is 

not too late to act to avoid the most 

devastating effects of climate change. 

The recently released report Better 

Growth – Better Climate, by the Global 

Commission on the Economy and 

Climate, states that the next 15 years will 

"ICTs contribute to 

achieving food security by 

improving tracking and 

delivery systems." 

be critical for climate action, as the global 

economy undergoes an intense structural 

transformation that will determine the 

future of the world’s climate system. 

The report emphasises the opportunity to 

harness the expanding capacities of human 

intelligence and technological progress in 

order to meet the challenges of climate 

change, while achieving high quality, 

resilient and inclusive economic growth. 

In particular, three action areas are 

highlighted where progress is most needed: 

Cities – Half of the world’s population 

live in urban areas, but at the same 

time generates 80 per cent of the 

global economic output and 70 per 

cent of the global energy use and 

greenhouse gas emissions. 

Agriculture – Global population 

growth, urbanisation, rising incomes 

and resource constraints are putting 

enormous pressure on land and water 

resources. 

74


THE EMISSIONS 

BALANCE 

Although the ICT sector has 

been estimated to contribute 

2-2.5 per cent of the global 

greenhouse gas emissions, 

maybe even increasing to 4 

per cent by 2020, the sector’s 

emissions are offset by its 

enabling function, contributing 

to energy efficiency in other 

areas. ICTs have the capacity 

to deliver carbon savings five 

times greater than the ICT 

sector’s own total emissions. 

Energy – Global energy use has grown 

by more than 50 per cent since 1990 and 

the expansion of global energy demand 

over the next 15 years is predicted to be 

between 20 to 35 per cent. 

SMART, EFFICIENT 

SOLUTIONS 

ICTs and broadband connectivity 

represent a vital part of our modern 

infrastructure, and can play an 

instrumental role in tackling the 

challenges in the three key areas outlined 

in the report of the Global Commission. 

ICTs can provide ‘smart’ solutions 

that have the potential to increase 

energy efficiency in production and 

consumption – thereby cutting costs – 

as well as to decrease greenhouse gas 

(GHG) emissions at the same time. 

The report Means of Transformation – 

Harnessing Broadband for the Post-2015 

Development Agenda by the Broadband 

Commission for Digital Development, 

which was released on the eve of the 2014 

UN Climate Summit, highlights concrete 

ways how ICTs can be instrumental in 

combating climate change. 

Regarding cities, the focus is on 

developing technologies to control 

energy consumption and collect 

information through ICTs. Smart 

energy management systems use sensors, 

advanced meters, digital controls and 

analytic tools to automate, monitor and 

control the two-way flow of energy. 

In agriculture, ICT tools can make 

farming more profitable and sustainable. 

These tools can facilitate the monitoring 

of environmental and soil conditions, 

through sensors and telemetry units 

which measure and transmit parameters 

such as air temperature, humidity, leaf 

wetness and soil moisture over mobile 

networks to global databases. In addition, 

ICTs contribute to achieving food 

security by improving tracking and 

delivery systems, providing food where 

it is most needed while reducing waste, 

spoilage and pilferage. 

In regard to wider energy use, ICTs can 

contribute to making the energy sector 

– currently the single largest contributor 

to GHG emissions – more efficient. 

Smart grids can contribute to mitigating 

emissions through a variety of software 

and hardware tools that enable generators 

to route power more efficiently. 

As the global economy continues to take 

up more innovative low carbon solutions, 

we shall see entire sectors – such as 

transport, energy, healthcare, government 

services and communications – become 

cleaner, more efficient and more 

environmentally friendly, and, at the same 

time, more profitable. 

The introduction and implementation 

of national broadband plans as sound 

public policy tools have not only 

spurred economic growth but have 

also contributed to the achievement 

of broader societal goals. ICT-enabled 

climate solutions will fully leverage the 

transformative potential of ICTs for 

sustainable development. 

A CALL TO ACTION 

At the international level, countries 

should recognise the indispensable nature 

of ICTs as a means of implementation of 

any national or international strategy on 

climate change. This should be reflected 

appropriately in the international 

climate agenda and leading international 

processes on climate change, such as the 

United Nations Framework Convention 

on Climate Change. 

At the same time, at the national 

level, countries around the world are 

urged to recognise the importance of 

environmentally-focused broadband 

policies to accelerate global progress 

towards a low carbon economy and 

take necessary action to establish such 

frameworks. Visionary leadership is 

needed as well as long-term broadband 

plans coupled with applications of ICT 

services for energy, health, education and 

environmental protection. 

From an institutional standpoint, 

regulatory certainty, integrated decisionmaking 

and cross-ministerial flexibility 

should contribute to overcoming the 

barriers that currently hinder the adoption 

of broadband-enabled applications that 

can promote environmental sustainability. 

Incentivising the uptake of such low 

carbon solutions, funding or facilitating 

scalable pilot projects, forming partnerships 

among the private sector and government 

agencies, promoting the dissemination of 

findings, and boosting measurement and 

standardisation are all parts of a holistic 

approach to broadband policies that 

support effective action on climate change. 

The threat of climate change is real – the 

future of our planet is at stake. Let us make 

sure that we have the proper tools available 

to tackle this challenge and transition 

towards a prosperous, environmentally 

friendly, socially inclusive and sustainable 

way of living. It is now or never. 

Dr Hamadoun I Touré has been Secretary- 

General of ITU since January 2007. 

Re-elected for a second four-year term in 

October 2010, Dr Touré is committed to 

ITU’s mission of connecting the world, and to 

helping achieve the Millennium Development 

Goals and sustainable development through 

harnessing the unique potential of information 

and communication technologies (ICT). 

The International Telecommunication Union 

(ITU) is the UN specialised agency for ICTs. 

Its membership, comprising 193 governments, 

some 700 private companies and about 50 

universities, has called for ITU to take the lead 

in engaging the global community in addressing 

climate change through the use of ICTs. ITU 

is headquartered in Geneva, Switzerland, 

with 12 field offices around the world. Further 

information about ITU´s climate change 

activities, including the reports referenced in this 

article, is available at www.itu.int/climate. 


INNOVATIVE 

TECHNOLOGIES TO HELP 

PROTECT COASTAL AREAS 

By Dr Porfirio Alvarez Torres, National Polytechnic Institute, Mexico 

"MEXICOOS will establish a 

centralised accessible hub to 

share data and information." 

The natural habitats of the Gulf of 

Mexico and the Caribbean Sea provide 

protection to the coasts and people 

from the impacts of climate change and 

particularly sea level rise. But Mexico 

needs to enhance its coastal and ocean 

observing capabilities and to focus on 

integration of the few existing human, 

technical and data resources scattered in 

several institutions. 

The country has limited infrastructure 

to forecast and to track the main 

environmental hazards: red tides, algal 

blooms, coastal erosion, storm surges, 

flooding and those derived from oil 

spills, ship grounding, maritime traffic 

and fishing vessels among others. 

Human settlements may be lost as rising 

sea levels will erase wetlands, some 

barrier islands, sea grass meadows, oyster 

reefs and coral reefs. Many Gulf wetlands 

are already submerged; increased water 

depth results in less light being available 

for sea grasses and corals, and more 

turbidity for oysters. Several examples 

have occurred in recent years of intense 

storms and flooding, which damage 

infrastructure, threatening massive loss 

of property and life. In addition, ocean 

acidification and increased temperature 

interact to affect marine organisms. 

MEXICOOS: AN ACCESSIBLE 

HUB FOR INFORMATION 

The National Polytechnic Institute 

(IPN) is currently working towards 

the implementation of the Mexican 

Integrated Coastal and Ocean Observing 

System (MEXICOOS), to support 

robust and continuous assessment of 

the environmental and oceanographic 

conditions of the entire Mexican 

Economic Exclusive Zone and the 1,992 

km of the Gulf, Mexico and Caribbean 

coasts, monitoring the marine and 

coastal habitat and the infrastructure, 

assessing the risks for people and 

economies. MEXICOOS will establish 

a centralised accessible hub to share data 

and information to analyse both the 

impacts and solutions to climate change 

and sea level rise. IPN is committed 

to address the gap between scientific 

literature and knowledge transfer and 

aims to conduct a risk and vulnerability 

assessment of Mexico’s Gulf of Mexico 

and Caribbean coasts under different 

sea level rise and habitat degradation 

scenarios. 

Through the coastal and ocean 

observing system IPN will enhance 

our understanding of where coasts are 

most vulnerable and where solutions 

are emerging. This project is unique 

because it quantifies the economic 

role of habitat to protect Mexico’s 

coasts and marine resources; it is deeply 

participatory, and will be linked to the 

Federal Government Ministry of the 

Navy currently in charge of the National 

Oceanographic Archives. 

HARMONISING THE SYSTEMS 

There is a crucial need to harmonise 

COOS techniques and information 

systems. The technical models set out 

in the US and in Europe through 

years of research and development 

will be a valuable base to prototype 

the ‘MEXICOOS architecture’ and to 

validate it in the Gulf of Mexico. Mexico 

must reinforce internal coordination, 

define a COOS strategy and model, 

and thereafter keep an open dialogue 

in developing long-term technology. 

The country must build a critical 

MEXICOOS capacity, implementing 

strategies towards resiliency of coastal 

and maritime ecosystems, human 

communities and infrastructure in the 

face of climate change. 

www.ipn.mx 

76

THE FUTURE 

IS PRICELESS – 

THE HUMAN 

CONSEQUENCES 

OF THE RISING 

SEA LEVEL 

WHERE WILL WE GO? 

Photographs by Kadir van Lohuizen 

Sea level rise is one of the anticipated consequences of climate 

change. This will cause some low-lying coastal areas to become 

completely submerged, while others will increasingly face shortlived 

surges and high-water levels. These anticipated changes 

could have a major impact on the lives of coastal populations. 

For the past two years photo journalist Kadir van Lohuizen has 

been looking at the global consequences of rising sea levels 

caused by climate change. He has traveled and photographed in 

Kiribati, Fiji, Carteret atolls (Papua New Guinea), Bangladesh, 

and Guna Yala (Panama) as well as in the United States of America and the United Kingdom. 

This multimedia exhibition is designed to highlight both the immense complexities associated with in-island 

and inter-island country movement where people are already trying to adapt to sea level rise, as well as 

the specific human rights implications involved with such involuntary movements. The exhibition composition 

is mixed, including still photographs, audio, video and text. 

WHERE: Jardin Vivero, Voices for the Climate, Jockey Club del Peru, Lima, Peru 

WHEN: From 1 to 12 December 2014 – 10 AM to 10 PM daily


ENERGY EFFICIENCY 

– KEY TO CLOSING 

THE EMISSIONS GAP 

By Mark Radka, Chief, Energy Branch, Division of Technology, 

Industry and Economics, and John Christensen, Director, DTU 

Partnership, United Nations Environment Progamme (UNEP) 

A number of countries have made pledges to reduce greenhouse gas emissions, motivated 

by the Copenhagen Accord target of limiting the global average temperature to 2°Cabove its 

pre-industrial levels. Even if these pledges are strictly adhered to, there will be more to do if 

emissions are to be kept down. Countries must find extra ways to make progress towards the 

2020 targets – in particular by exploiting all opportunities for energy efficiency. 

Since 2010, the United Nations 

Environment Programme (UNEP) has 

convened scientists from all over the world 

to assess if current pledges to reduce 

emissions are enough to keep the world 

on track to meet the target, or whether 

there is a gap between ambition and 

reality. The short answer is that there is a 

gap, and it is quite significant. The latest 

UNEP gap assessment in 2013 estimated 

it to be 8 to 12 GtCO 2 

e by 2020. The 

analysis furthermore shows that if the gap 

is not closed or reduced significantly, the 

new global climate agreement stipulated 

to enter into force by 2020 cannot keep 

us on a maximum 2˚C path. The stark 

conclusion is that countries need to step 

up their action in areas where significant 

emissions reductions can be achieved in 

the short term. 

Stringent implementation of existing 

pledges will be important and the UNEP 

Gap Report identifies areas for action, 

including energy efficiency, renewable 

energy, fossil energy subsidies, and emission 

of methane and other short lived climate 

pollutants. The International Energy 

Agency’s Special Report Redrawing the 

Fossil-fuel 

subsidies 

12% 

Upstream CH 4 

reductions 

18% 

Power 

generation 

21% 

Efficiency 

49% 

Energy–Climate Map (2013) analyses 

the short-term reduction potential for 

the same four key areas of action, and 

concludes that energy efficiency is the area 

with the largest potential. Many proven 

technologies exist for extracting more 

value in terms of the services that energy 

makes possible from the same amount of 

energy. The challenge, then, is to scale up 

action rapidly and on a much larger scale. 

6% Road transport 

14% Industrial motors 

14% Appliances and 

lighting 

15% Heating and cooking 

The paradox of energy efficiency is 

that it is relevant for most sectors but 

often requires coordinated engagement 

of a large and diverse group of actors. 

Increasing energy efficiency therefore 

presents a very different implementation 

challenge compared with energy supply, 

where decisions in most cases are 

centralised in large energy companies or 

government ministries. 

78


SUSTAINABLE ENERGY 

FOR ALL 

A new initiative that aims to overcome 

some of these challenges – the Global 

Energy Efficiency Accelerator Platform 

– was launched at the UN Secretary 

General’s Climate Summit, 2014. 

The Global Platform is a public-private 

partnership within the Sustainable 

Energy for All (SE4ALL) initiative led 

by Secretary-General Ban Ki-Moon 

and the World Bank President Jim Yong 

Kim. SE4ALL has as one of its three 

inter-linked objectives to be achieved 

by 2030 a doubling of the global rate of 

improvement in energy efficiency; the 

Global Energy Efficiency Accelerator 

Platform will help reach this objective. 

The Accelerator Platform brings 

together countries, cities and private 

companies with the support of 

international organisations and finance 

institutions. The Platform has a 

number of sector or technology-based 

accelerators currently covering five areas: 

Lighting 

Appliances and equipment 

Buildings 

Vehicle fuel efficiency 

District energy systems. 

These are exactly the areas identified by 

IEA as having particularly high potential. 

Additional accelerators are being 

developed for industry, in particular small 

and medium-sized enterprises, and the 

electric power industry. 

Cities, states and regions around the 

world have been leaders in driving 

energy efficiency policies and 

practices within their jurisdictions. 

Many large and medium-sized cities 

have participated in C40 and ICLEI 

initiatives to improve sustainability and 

reduce carbon emissions within their 

jurisdictions. At the recent C40 Mayors 

Summit in Johannesburg, participating 

cities reported that they had collectively 

taken over 1,800 energy efficiency 

actions. The R20 members, along with 

the States and Regions Network, have 

taken similar action to reduce the 

threat and impact of climate change 

in their regions. What has often been 

missing from these efforts is strong 

collaboration between a public sector 

entity setting the policy and regulatory 

frameworks, and a private sector that 

is committed to driving technology 

standards, finding financial solutions, 

and responding to targeted incentives 

that aim to accelerate improvements. 

The EE Accelerator Platform aims to 

fill this space. 

A RAPID TRANSITION TO 

EFFICIENT LIGHTING 

Electricity for lighting accounts for at 

least 15 per cent of global electric power 

consumption and results in 5 per cent 

of worldwide CO 2 

emissions (UNEP, 

2012). A global transition to widely 

available efficient solutions in all indoor 

and outdoor applications by 2030 would 

lower electricity demand for lighting by 

over 1,000 terawatt-hours annually, and 

"Stringent implementation 

of existing pledges will be 

important." 

"55 developing countries 

have joined the en.lighten 

initiative with the intent of 

phasing-out inefficient 

incandescent lamps by the 

end of 2016." 

reduce emissions by 530 million tonnes of 

CO 2 

equivalent. Widespread use of energy 

efficient lamps and lighting devices 

would cut household electricity bills by 

an annual US$120; reduce fuel imports, 

peak demand, and the frequency of power 

outages; and improve end-user welfare. A 

rapid transition to efficiency measures in 

the lighting sector would also save over 

US$230 billion in avoided investments in 

roughly 280 new coal-fired power plants. 

To date, 55 developing countries have 

joined the en.lighten initiative with 

the intent of phasing-out inefficient 

incandescent lamps by the end of 2016. 

Half of these countries are drafting or 

already implementing efficient lighting 

strategies with support from UNEP. 

Partner countries alone will save over US 

$7.5 billion and reduce emissions CO 2 

by 

35 million tonnes annually. During the 

Climate Summit another 11 countries 

joined the en.lighten initiative and more 

are in the process of engaging formally. 

THE GLOBAL SHIFT TO 

EFFICIENT APPLIANCES AND 

EQUIPMENT 

In 2012, non-OECD countries 

consumed more than half of the world’s 

electricity for the first time (IEA Key 

World Energy Statistics 2014). In these 

same countries demand will continue to 

grow the fastest in coming years, driven 

by economic development and the 

acquisition by millions of households 

and businesses of electricity-consuming 

devices that add markedly to the quality 

of life. If the millions of refrigerators, 

air conditioners, ceiling fans, and 

other appliances of tomorrow are as 

energy efficient as possible, consumers 



will save money, the air will be 

cleaner, and severe climate change less 

likely. The challenge is that in many 

developing countries minimum energy 

performance standards are very low or 

are entirely missing. 

"GEFI aims to double new 

light duty vehicle fuel 

economy by 2030." 

The key is a global shift to more 

efficient appliances and equipment. 

To achieve this market transition, 

UNEP and the Global Environment 

Facility (GEF) launched the Global 

Efficient Appliances and Equipment 

Partnership Programme and the 

Appliances and Equipment Accelerator 

under SE4ALL. This initiative brings 

together like-minded organisations and 

private sector companies extending 

throughout the complete value chain 

of energy generation, distribution 

and consumption, from utilities and 

leading power technology companies 

to appliance manufacturers. In Latin 

America, the Caribbean and Southern 

Africa the Accelerator is starting to 

build competitive regional markets 

that foster trade in efficient products, 

reduce prices and increase savings to 

consumers. 

If developing countries and emerging 

economies were to adopt ambitious 

efficiency standards for the top 

six energy consuming products – 

electric motors, air conditioners and 

fans, refrigerators, information and 

communication technology, and 

distribution transformers – they would 

reduce global electricity consumption 

by 1,500 terawatt-hours per year and 

annual CO 2 

emissions by 1 giga tonne, 

equivalent to taking 500 million cars 

off the road. At the same time the 

reduction in energy consumption 

would save US$215 billion of electricity 

bills each year. 

IMPROVING VEHICLE FUEL 

EFFICIENCY 

Vehicle fuel efficiency is a high-impact 

efficiency opportunity and the Global 

Fuel Economy Initiative, or GFEI, is the 

accelerator within the SE4ALL Global 

Platform addressing this particular area. 

GFEI was established in 2009 by several 

global organisations – the International 

Energy Agency, the International 

Transport Forum, the FIA Foundation, 

and UNEP; these organisations were 

later joined by the University of 

California Davis and the International 

Council for Clean Transportation. GFEI’s 

aim is to double the efficiency of the 

global vehicle fleet from an average of 8 

litres per 100 km in 2005 to 4 litres per 

100 km by 2050, reducing emissions as a 

direct consequence. 

Consistent with this long-term goal, 

GEFI also aims to double new light 

duty vehicle fuel economy (measured 

in either litres per 100km or grams 

of CO 2 

per km) by 2030 – goals that 

are consistent with IPCC and G8 

targets and recommendations. Even 

if the number of vehicle kilometres 

doubles by 2050 because of growth 

in transport, efficiency improvements 

on this scale would effectively keep 

emissions of CO 2 

from light duty 

vehicles at current levels. Vehicle 

efficiency improvements that follow 

this path would cut CO 2 

emissions by 

1Gt CO 2 

annually by 2025 and 2Gt 

annually by 2050. 

The Initiative has been undertaken 

successfully in a number of countries, 

including Chile, Ethiopia, Kenya and 

Indonesia. Several countries have already 

committed to be part of its expansion 

and many more have expressed strong 

interest developing or strengthening 

their fuel economy policies under the 

GFEI flag. 

The SE4ALL Energy Efficiency 

Accelerators are doing what their name 

suggests, accelerating action by bringing 

together motivated organisations, 

governments, NGOs and companies to 

achieve collective impact, quickly and at 

scale. Energy efficiency is not a new idea, 

but when it comes to fighting climate 

change, it is an idea whose time has 

definitely come. 

Mark Radka heads the UN Environment 

Programme’s Energy Branch, which is part 

of the organisation’s Paris based Division of 

Technology, Industry and Economics. He 

manages the organization’s efforts to link the 

global energy and environment agendas, much 

of which involves building partnerships between 

industry, governments, NGOs, and other 

groups. Radka has a special interest in the 

technology needs of developing countries, and 

was a coordinating lead author of the Special 

Report on Methodological and Technological 

Issues in Technology Transfer issued by the 

Intergovernmental Panel on Climate Change. 

The Division of Technology, Industry 

and Economics (DTIE) was set up in 

1975, three years after UNEP began. The 

Division provides solutions to decision-makers 

and helps change the business environment 

by offering platforms for dialogue and 

cooperation, innovative policy options, pilot 

projects and creative market mechanisms. 

John Christensen is the Director of the 

UNEP DTU Partnership. He has worked on 

energy, climate and development issues in the 

UN Environment Programme for the last 25 

years. His focus is on supporting developing 

countries’ engagement in energy and climate 

issues across all regions. He has in addition 

been a Bureau member of the IPCC and 

Lead Author on several IPCC reports. 

UNEP DTU Partnership (formerly 

UNEP Risø Centre) is a leading 

international research and advisory 

institution on energy, climate and sustainable 

development. It is based in Copenhagen 

with a team of more than 60 scientists and 

economists from 20 countries. UNEP DTU 

Partnership is an active participant in both 

the planning and implementation of UNEP’s 

Climate Change Strategy and Energy 

Programme. Through in-depth research, policy 

analysis and capacity building activities, 

the Partnership assists developing countries 

in a transition towards more low carbon 

development paths, and supports integration of 

climate-resilience in national development. 

80

SHARED ACTION WITH 

WATER USERS 

At SABMiller, sustainability is about the 

viability of our business. High quality 

water and agricultural crops are vital for 

a brewing company – and of course are 

essential for the societies within which 

we operate. We are part of a value chain 

with suppliers and our customers, many 

small local enterprises. We are mutually 

dependent. Beer is local; when society 

prospers, SABMiller prospers. 

We see shared resource risks 

becoming more acute under changing 

consumption patterns and demographic 

pressures worldwide. An additional three 

billion middle-class people in the world 

by 2030 is an example of the rapid pace 

of progress, but the resulting resource 

pressures have to be managed carefully, 

and we have a role to play in this. 

This is a business case that is deeply 

understood by all of us on SABMiller’s 

Executive Committee. It is not about 

complying with someone else’s agenda: it 

is central to our business strategy. 

REDUCING WATER USE 

This year we hit our target of a 25 per 

cent reduction in water used to produce 

each litre of beer worldwide, a year 

ahead of schedule. But in most areas, the 

vast majority of water used is taken up 

in agriculture – and usually in farms that 

are not supplying us with crops, so this is 

not an easy risk to control. We share the 

risks of water scarcity with the farmers, 

and with others who are buying crops. 

Across our brewing operations, we will 

hit a world class water efficiency target: 

by 2020 we will reduce water use further 

and be using an average of 3.0 litres of 

water to make each litre of beer. 

The only way of tackling this shared 

risk is through collaboration with other 

water users. Business benefits and social 

benefits often arise together when we 

tackle shared risks. Managing water 

is not something you can do on your 

own. So this, more than ever, is about 

shared action. 

PASSIONATE ABOUT 

BREWING 

SABMiller is in the beer and 

soft drinks business, working in 

a way that improves livelihoods 

and builds communities. We 

are passionate about brewing 

and have a long tradition 

of craftsmanship in making 

superb beer from high quality 

natural ingredients. We are 

local beer experts, producing 

more than 200 beers that are 

freshly brewed from locallygrown 

ingredients and only 

sold in their country of origin. 

We also brew internationally 

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CITIES ARE LEADING 

THE FIGHT AGAINST 


By Eduardo Paes, Mayor of Rio de Janeiro and Chair of the C40 Cities 

Climate Leadership Group 

C40 cities have demonstrated unparalleled leadership in addressing climate risks and 

impacts locally and globally – setting ambitious targets for the future and taking significant 

measures to tackle climate change head-on. As a result, cities around the world are now 

taking their rightful place at the climate negotiations table, in recognition of the impact 

they are already having, along with their ability to help shape an international agreement 

on climate change. 

We all hope that a new intergovernmental 

climate treaty will 

be agreed upon in 2015 at COP21. 

But whatever happens in Paris, that 

agreement will not come into effect 

until at least 2020, by which time global 

emissions would already need to have 

peaked to achieve the 2˚C objective. 

There is a statistic that never fails to 

amaze me: half of humanity currently 

lives in cities, a figure which is expected 

to grow to 70 per cent by 2050. As 

the world becomes urbanised, cities 

are featuring more prominently in the 

global fight against climate change. Cities 

are not only a big part of the problem 

– contributing roughly 70 per cent of 

global greenhouse gas (GHG) emissions 

– they are also where solutions are being 

created and delivered. Cities have an 

enormous responsibility to address the 

risks that climate change poses and take 

steps to protect the well-being of the 

world’s citizens and economies. 

Thankfully, cities have been taking strong 

action on climate change for years, 

while national governments continue to 

debate the issue and often get bogged 

down in rhetoric. Climate change and 

sustainable development are no longer 

an exclusive matter for nation states. I 

am hopeful that the UNFCCC’s COP20 

forum will help bridge the gap between 

cities and nations on this issue, as cities 

finally begin to take their rightful place 

at the table, in recognition of the impact 

they are already having, along with their 

ability to help shape an international 

agreement on climate change. 

C40 cities have demonstrated 

unparalleled leadership in taking 

meaningful climate actions. Our 70 

members represent over 500 million 

people and almost 21 per cent of 

the world’s GDP. Our cities have set 

ambitious targets for the future and are 

taking significant measures to tackle 

climate change head-on. In the last year 

alone, C40 cities have implemented over 

8,000 climate actions. And as a result of 

our innovative network model, these 

cities are sharing their unique solutions 

to local challenges on a global scale. 

To best streamline and speed up the process 

of collaboration, mayors must engage 

vigorously in City Diplomacy – one of 

the main pillars of my Chairmanship at 

C40, and a concept that promotes the 

exchange of information and experience. 

Mayors are pragmatic – we are held 

directly accountable to our citizens and 

must deliver support and services to our 

population swiftly and effectively. Cities also 

have a close relationship with their citizens 

and understand how climate change can 

also be positioned as an opportunity to 

create jobs and improve quality of life. 

EVOLVING AND 

STRENGTHENING THE 

RESPONSE 

Further steps are also being taken to 

include cities from developing nations 

in the C40. I have dedicated my first 

year in office to the organisation’s 

expansion into cities in the global South, 

where urbanisation is taking place at 

an increasing rate, where the greatest 

challenges in sustainability lie and where 

urban innovation is developed, tested 

82


Winners of the 2nd annual C40 & Siemens City Climate Leadership Awards, held in New York 

during Climate Week 2014 

and disseminated. With this in mind, new 

cities in Africa and China have recently 

joined the network. 

An additional priority for cities 

is resilience. We all know that the 

consequences of climate change are 

happening right now, and are increasing 

in frequency and intensity. In 2013 

alone, the world saw 41 weather disasters 

that each caused more than US$1 

billion worth of damages. Cities are at 

the front line of these events and our 

citizens are the victims. The statistical 

rise of casualties and economic losses 

from extreme weather events will only 

continue unless resilience becomes an 

intrinsic part of our long-term policies, 

our investments and our lives. 

So, how do we evolve? We must grow, 

boost collaboration and develop ways 

to work in tandem with national 

organisations. One such important step 

is the creation of the global Compact of 

Mayors, the world’s largest effort for cities 

to fight climate change. The Compact 

will enable cities to publicly commit to 

deep GHG emissions reductions, make 

existing targets and plans public, and 

report on their progress annually, using a 

newly-standardised measurement system 

that is compatible with international 

practices, the Global Protocol on 

"Cities have an 

enormous responsibility 

to address the risks posed 

by climate change." 

Community-scale GHG Emissions 

(GPC). Through this effort, cities will be 

choosing to meet the same requirements 

proposed for the international climate 

negotiations that will lead to a global 

climate treaty in 2015. 

Launched by UN Secretary-General 

Ban Ki-moon and UN Special Envoy 

for Cities and Climate Change Michael 

R Bloomberg at the 2014 UN Climate 

Summit in New York, key partners of 

the Compact are C40, ICLEI – Local 

Governments for Sustainability and the 

United Cities and Local Governments 

(UCLG) – with support from UN-Habitat. 

Therefore, as mayors, we are committing 

to set ambitious climate targets, make 

those voluntary commitments public, 

and hold ourselves accountable through 

rigorous and transparent reporting. 

We recently announced that existing 

commitments of 228 cities from the C40, 

ICLEI and UCLG networks will save 

a cumulative 2.8 gigatonnes of carbon 

dioxide equivalent (GtCO 2 

e) by 2020. 

That is important for three reasons: 

First, because 2020 is the earliest that 

a new inter-governmental Climate 

Treaty is expected to come into force 

Second, because it is the year by 

which global emissions need to have 

peaked if we are to get on a trajectory 

to avoid run-away climate change; and 

Third, because the 2.8Gt of emissions 

reductions pledged by this small group 

of cities is equivalent to one-fifth of 

the so-called ‘emissions gap’ – the 

difference between what national 

governments have already committed 

to do and the total cut in emissions 

that is needed to get onto that 

downward trajectory. 



The potential for cumulative GHG emissions reduction could reach 25GtCO 2 

e by 2030 and 

147GtCO 2 

e by 2050 

By demonstrating the impact of cities’ 

climate commitments on a global 

scale, these numbers are a first step 

in delivering the vision of the global 

Compact of Mayors. 

HELPING TO ACHIEVE 

NATIONAL TARGETS 

I was honoured to attend the second 

annual C40 & Siemens City Climate 

Leadership Awards, also held in New 

York during Climate Week 2014, 

and see the 11 winning cities pick up 

their awards in categories as diverse as 

Adaptation and Resilience (Melbourne), 

Intelligent City Infrastructure 

(Barcelona) and Green Energy (Seoul). 

It fully demonstrates how cities 

are positioned to make meaningful 

contributions towards more aggressive 

national targets to reduce emissions. This 

can be accomplished because mayors 

have strong influence over key policies 

that influence emissions, such as building 

energy standards, urban planning, waste 

collection and public transportation. 

We are proving that cities can be 

true partners to nation states and the 

international community in bridging 

the global emissions gap through more 

ambitious and deeper GHG emissions 

targets. 

To support this, C40 has conducted 

additional research, published at the UN 

Secretary-General’s Climate Summit, in 

partnership with Special Envoy Bloomberg 

and the Stockholm Environment Institute. 

This showed the potential for even greater 

cumulative emissions reduction. According 

to this research, which covered over 600 

human settlements with a population over 

750,000 inhabitants (a total of 1.5 billion 

people), the potential for cumulative GHG 

emissions reduction could reach 25GtCO 2 

e 

by 2030 and 147GtCO 2 

e by 2050. 

PARTNERSHIP 

DEVELOPMENT 

To further accelerate progress and 

investments in urban solutions to the 

level that mayors want to deliver, other 

partners are also needed. The Cities 

Climate Finance Leadership Alliance is 

one such coalition of public and private 

sector partners that aims to stimulate 

investments in climate-smart infrastructure 

to the tune of trillions of dollars a year. 

We also recently announced a new City 

Creditworthiness Partnership, which brings 

together the resources of C40, the World 

Bank and Bloomberg Philanthropies 

to help 300 cities strengthen their 

creditworthiness and attract investors. 

Top-level collaboration and handshakes are 

all well and good but we must remember 

that change must occur from within 

cities themselves. I can best illustrate the 

importance of cities in the fight against 

climate change by describing what 

we in Rio de Janeiro are achieving by 

implementing new and efficient strategies 

and developments at a grassroots level. 

Rio de Janeiro is experiencing a unique 

moment in its history and we are actively 

using this accelerated development, thanks 

to hosting the 2014 World Cup and 2016 

Olympic Games, as well as the favourable 

economic climate, to put in place 

forward-thinking solutions to all manner 

of challenges, including climate change. 

One of our fundamental approaches is 

based on collaboration. We will never 

solve the challenge of climate change or 

see it as a strong catalyst for promoting 

sustainable development if we work 

in an isolated or fragmented way. In 

Rio, we are involved in an increasing 

number of projects with other C40 

cities, in addition to learning and 

exchanging information with other 

national and international partners. We 

have also been working in much closer 

partnership with our state and national 

governments – most of our Olympic 

legacy projects have involved all levels 

of government. 

"Mayors have strong 

influence over key policies 

that affect emissions." 

84


And of course the involvement and 

mobilisation of our citizens and the 

population of Rio has been a critical 

component to success. I have coined a 

term that encompasses this participatory 

philosophy – Polisdigitocracy – a 

strategy that uses open data and social 

and digital media to increase the 

collaboration between city governments 

and their citizens in the development 

and implementation of climate policies 

and programmes. I am making it a 

guiding tenet of my Chairmanship of 

the C40. We must employ all the tools 

we have at hand to promote engagement 

and participation from the ground up. 

Measurement is another vital tool in 

the fight against climate change, because 

we can only manage what we can 

measure. We have developed the High 

Performance Management Programme 

in Rio with clear targets for each city 

secretary and department. From each 

individual city employee right up to the 

major revitalisation works, all activities 

are carefully assessed and measured so 

that we can plot the progress of our 

work to make sure we achieve our 

targeted goals and ultimate vision. 

THE OLYMPIC LEGACY 

The largest and most important 

development in the city is the preparation 

for the Olympics in 2016 and, more 

importantly, the legacy it will leave. The 

Games has provided us with a unique 

opportunity to drive our sustainability 

agenda while making lasting changes for 

the city and its citizens. 

Since the start of the Olympic project, 

I wanted the Games to serve the city. 

More than simply carrying out works 

and organising the event itself, the goal 

was to make Rio de Janeiro a better 

place for its residents, with significant 

changes in transport, urban infrastructure, 

sustainability and social development. 

Therefore, City Hall has developed 

projects aimed at providing maximum 

benefits to our citizens. 

Bus rapid transit (BRT) systems, for 

instance, are redefining the existing bus 

routes and promoting integration of all 

modes of transport (ferries, subways, 

450km of bicycle lanes are planned as part of the Rio 2016 

Olympic project 

Source: Riotur 

buses and trains). We have built 150km 

of new bus rapid transit infrastructure, 

increasing the percentage of the 

population using mass transit from 18 

per cent in 2009 to 63 per cent by 2016. 

450km of bicycle lanes are also planned 

by 2016 to further reduce car use. 

Upon completion, the Marvelous 

Port – the regeneration of the entire 

dilapidated port area – will generate 

benefits far beyond the Games, 

ensuring that one of the gateways to 

the city becomes an area worthy of 

its past. In fact, the redevelopment of 

the Port area has already uncovered 

archaeological treasures such as the old 

pier and the Valongo Hanging Gardens. 

Downtown has also received a brand 

new cultural icon, the Art Museum of 

Rio (MAR), which was awarded the 

title of ‘Best Building’ of 2013 in the 

Museum category at the internationally 

recognised Architizer A+ Awards. 

In the North Zone, the redevelopment 

of the surrounding streets of the João 

Havelange Olympic Stadium (Engenhão) 

will bring significant improvements in 

urban mobility and leisure to the whole 

neighbourhood. The flood control 

project in the Tijuca area is designed to 

end the chaos caused by heavy rains in 

the region. The system will be composed 

of five underground reservoirs – the one 

at Praça da Bandeira (pictured) is already 

complete and in operation, and the other 

four are under construction – and will 

hold the surplus flow of the Trapicheiros, 

Joana, Maracanã and Jacó rivers. 

Besides the benefits directly associated 

with the Games, the event is also driving 

the development of other actions that 

will yield a permanent legacy. The Rio 

Operations Center, opened in 2010, 

houses 400 professionals working in 

three shifts, 24 hours a day, to monitor 

the city and integrate actions to avoid 

or mitigate traffic and climate-related 

incidents. 

SHARING INNOVATION 

It is with pride that I can boast about 

the many and varied developments in 

Rio that are designed to combat climate 

change and educate the population to 

provide a more sustainable future for their 

children and beyond. And I am thrilled 

that through the C40 network, we can 

share our successes and our challenges 

with other cities working to create a 

better future for their citizens as well. 

Just two years ago, Rio was one of 

only 13 cities in the C40 group that 

had BRT programmes. Because we 

are working together that number 

has risen to 35, more than half the 

total C40 network. Bogotá, Buenos 

Aires, Istanbul and Johannesburg 

have all implemented successful BRT 

networks. Paris has created an electric 



The underground reservoir at Praça da Bandeira is one of five that will boost flood control in the 

Tijuca area of Rio de Janeiro 

Source: City of Rio de Janeiro 

car-sharing system and Shenzhen 

has launched a sophisticated carbon 

emissions trading scheme. New York is 

improving its resilience to super storms 

and many other cities are addressing 

their challenges with creativity and 

leadership. 

The level of innovation in our cities 

continues to inspire me. Shenzhen 

has introduced a new-energy vehicle 

fleet of more than 6,000 units, making 

it the largest zero-emissions fleet in 

service worldwide. This project aims 

to add 35,000 new-energy vehicles to 

the fleet in the next two years and has 

enabled the city to significantly reduce 

CO 2 

emissions between 2009 and 

2013. Dhaka’s Integrated Solid Waste 

Management Plan aims to re-engineer 

and improve waste disposal sites, thereby 

reducing emissions by 276,000 tonnes 

annually, with a goal of collecting 68 

per cent of the waste produced in the 

inner metropolitan area. The ‘New 

Taxi for London’ project is working 

to develop new zero emission-capable 

vehicles with manufacturers to meet 

a goal of reducing emissions from the 

city’s black taxi fleet by up to 100 per 

cent in central London and around 75 

per cent throughout the rest of the city. 

Vancouver’s neighbourhood energy 

systems aim to reduce GHG emissions 

by 60 per cent compared with traditional 

heating sources and supply affordable, 

reliable, and low carbon thermal energy 

to its citizens. This project is expected 

to reduce emissions by 9,000 tonnes 

annually by 2020. 

These are just some of the efforts being 

made across the C40 network. As we 

continue to grow and add powerful allies 

at all levels of government we now set 

our sights on COP21 in Paris, building 

on a successful meeting of nations here 

in Lima. We, as Mayors and cities, urge 

"The flood control project 

in the Tijuca area is designed 

to end the chaos caused by 

heavy rains in the region." 

you to join us in a more dynamic and 

proactive fight against climate change. 

Eduardo Paes has dedicated his entire career 

to public service in Rio de Janeiro. Fresh from 

law school, he became Deputy Mayor of the 

Jacarépaguá and Barra districts at age 23. 

Since then he has been Alderman, Federal 

Chamber Deputy, the city’s Environment 

Secretary and State Secretary for Tourism, 

Sport and Leisure. In 2008, he was elected 

Mayor of Rio and led the successful campaign 

to host the Olympics in 2016. Four years 

later, he was re-elected for a second term and 

became Chair of the C40 Cities Climate 

Leadership Group (C40) at the end of 2013. 

The C40 Cities Climate Leadership 

Group (C40) is a network of large and 

engaged cities from around the world 

committed to implementing meaningful and 

sustainable climate-related actions locally that 

will help address climate change globally. C40 

was established in 2005 and expanded via a 

partnership in 2006 with President William 

J. Clinton’s Climate Initiative (CCI). The 

current chair of the C40 is Rio de Janeiro 

Mayor Eduardo Paes; the 108th Mayor of 

New York City Michael R. Bloomberg serves 

as President of the Board. To learn more about 

the work of C40 and our Cities, please visit 

www.c40.org, follow us on Twitter @c40cities 

and like us on Facebook at 

http://www.facebook.com/C40Cities. 

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ADDRESSING 


THROUGH PLANNED 

CITY EXTENSIONS 

By Dr Joan Clos, United Nations Under-Secretary-General and UN-Habitat 

Executive Director 

The battle to mitigate greenhouse gas emissions and adapt to the unavoidable impacts of 

climate change – within the broader effort to achieve more sustainable development – may 

well be won or lost in cities. An important strategy that growing cities can embrace is the 

planned city extension, where great environmental benefits can be incorporated into the 

initial development process. 

Cities emit a significant proportion of 

the world’s anthropogenic greenhouse 

gases. At the same time, urban areas are 

highly vulnerable to climate change. Tens 

of millions of urban dwellers around the 

world increasingly are being affected by 

rising sea levels and storm surges, heat 

stress, changing precipitation patterns, 

inland and coastal flooding, landslides, 

drought, increased aridity, water 

scarcity and air pollution. The effects of 

Hurricane Sandy in New York and New 

Jersey in 2013, as well as the more recent 

Typhoon Haiyan in the Philippines, have 

shown the potentially devastating effects 

of typhoons and storm surge on local 

populations and their livelihoods. 

When urbanists take up the challenge of 

addressing climate change and achieving 

more sustainable development in cities, 

they may begin by dividing the urban 

space into two distinct geographic areas: 

the existing city and the expanding 

city. Each of these two geographic 

areas features its own set of challenges 

and suite of possible approaches. 

Infill development or brownfields 

redevelopment, for example, represent 

strategies for achieving more sustainable 

development patterns in existing urban 

areas. Improving conditions in existing 

cities is of paramount importance 

in regions such as Europe where 

population growth is stagnant. The 

present article, however, explores a 

critical strategy that growing cities can 

embrace as they expand into peri-urban 

lands and the non-urbanised periphery: 

planned city extensions. 

FOCUSING ON PLANNED 


Using planned city extensions as a 

strategy for addressing climate change is 

important, firstly because of long-term 

trends in population growth and location 

decisions. Even as the world population 

continues to grow, ever higher 

proportions of those people are choosing 

to live in urban rather than rural areas. 

While over half of mankind lives in 

urban areas today, it is estimated that by 

2050 over two-thirds of all people will 

be living in such areas. 

What kind of spaces will the urban 

dwellers of 2030, 2040 and 2050 

occupy? Almost certainly a substantial 

proportion of these people – particularly 

in developing countries and emerging 

economies – will be living in newly 

urbanised areas. It will be impossible to 

accommodate all of them within the 

confines of existing urban boundaries. 

Cities are generally becoming less dense 

– a long-term trend (see Figure 1). Even 

if we manage to arrest or even reverse this 

trend through concerted densification 

efforts, developers will still need to 

convert a significant amount of land 

from rural to urban uses to accommodate 

burgeoning urban populations. In 

fact the authors of the recently 

88


"Developers will still need 

to convert a significant 

amount of land from rural to 

urban uses to accommodate 

burgeoning urban 

populations." 

published Fifth Assessment Report of the 

Intergovernmental Panel on Climate 

Change (IPCC) estimate that, between 

2000 and 2030, the urban footprint will 

increase between 56 and 310 per cent. 

They reckon that “55 per cent of the 

total urban land in 2030 is expected to 

be built in the first three decades of the 

21st century”. Given that some significant 

amount of rural-to-urban land conversion 

will occur in coming decades, it behoves 

us to develop that land in as sustainable a 

manner as possible. 

Given these circumstances, how can 

a planned approach to city extensions 

provide for more climate-friendly urban 

development? By designing urban areas 

well from the very beginning we begin 

to accrue substantial climate benefits and 

co-benefits now – and avoid locking 

in unsustainable development patterns 

that may require costly retrofits and 

redevelopment schemes in the future. 

On the mitigation side, well-planned 

city extensions can reduce greenhouse 

gas emissions by providing for more 

compact urban development , with 

well-integrated public transport options 

and a mix of land use types. Today, 

such conditions are found more often 

in urban centres than in low-density, 

single-use-zoned suburbs. The problem 

is that this latter pattern of suburban 

development, which has prevailed in 

North America and elsewhere since 

World War II, results in higher emissions 

Figure 1. Urban densities have generally declined over the past 

200 years 

Source: Angel, Parent, Civco & Blei, 2011. 

of greenhouse gases. For example, for 

the United States Glaeser estimated 

in 2009 what the ‘average household’ 

would emit if it settled in a high density 

central city and what it would generate 

in the suburbs. Of his review of 48 

metropolitan areas he concluded that, in 

almost all cases, “carbon emissions are 

significantly lower for people who live 

in central cities than for people who live 

in suburbs.” 

Why does more compact urban 

development, be it in centre cities 

or city extensions, typically result in 

lower emissions? One reason is that 

shorter travel distances, and the greater 

viability and attractiveness of public 

transport, result in lower transportrelated 

emissions. For New York 

City, for example, Glaeser estimated 

that an average resident “emits 4,462 

pounds less of transport-related carbon 

dioxide [per year] than an average 

New York suburbanite.” Similarly the 

provision of other urban basic services 

such as district heating or solid waste 

collection is generally more efficient 

in more compact communities. This 

translates into lower energy costs, 

with correspondingly lower carbon 

emissions. 

Well-planned city extensions can 

also confer adaptation and resilience 

benefits. Planners can, for example, 

map floodplains, and then require new 

development in those areas either to 

be flood-proofed or else prohibited 

entirely. Such measures reduce 

vulnerability to flooding (which in 

many locations is projected to increase 

under future climatic conditions). 

Planners of city extensions can also take 

steps to preserve functional ecological 

systems, e.g. watersheds that promote 

drainage and the absorption of storm 

water runoff. Preserving functionality 

makes ecosystem-based approaches 

to adaptation more viable options. 

In almost all cases such planning 

measures are more cost-effective when 

undertaken proactively, at the moment 

of urbanisation, rather than through 

costly and politically difficult reactive 

steps such as relocating families located 

in flood-prone areas, or trying to restore 

degraded ecosystems. 



Addressing the challenges; 

OF 

TO 

Urban Sprawl 

Compactness 

Segregation 

Integration 

Congestion 

Connectivity 

Figure 2. Addressing urban sprawl, segregation and congestion 

Source: UN-Habitat 

OTHER NON-CLIMATE- 

RELATED BENEFITS 

UN-Habitat typically looks at the urban 

development process through a broader 

lens of sustainability that takes into 

consideration climate ramifications. Both 

through planned city extensions and other 

approaches we promote the development 

of compact, integrated and connected 

cities (see Figure 2). This new urban 

paradigm confers a series of economic, 

social and environmental benefits. 

Compact urban form helps to reduce 

land demand per capita. In addition 

to the considerable climate benefits 

discussed above, compact development 

also yields other benefits. For example, 

according to the New Climate 

Economy Report, a more compact and 

connected urban development built 

around mass public transport could 

“reduce urban infrastructure capital 

requirements by more than US$3 

trillion over the next 15 years” (Global 

Commission on the Economy and 

Climate, 2014). In addition to such 

cost savings and improved access to 

basic services, analysts have also posited 

the economic development benefits 

of compact development, e.g. from 

improved agglomeration economics. 

The co-benefits of urban density have 

been covered extensively in academic 

literature and UN-Habitat publications, 

such as the Urban Patterns for a Green 

Economy series, e.g. on ‘Leveraging 

Density’ (UN-Habitat 2012). 

Integration can be achieved by planning 

compatible activities and land uses 

in appropriate locations. This helps 

cities provide proximity to public 

services and jobs and hence reduce 

transport needs. Creating enough 

serviced and affordable land is essential 

for successful social integration and 

inclusive development, as well as for the 

provision of economic opportunity. 

Connectivity. Sound urban design is 

important for providing connectivity 

within and between neighbourhoods. 

The street pattern should allow for 

densification and for future extension. 

Providing good public transport, as well 

as adequate infrastructure for walking 

and cycling, is important to avoid costly 

congestion, to reduce emissions and 

pollution, and to facilitate access to jobs 

and services. 

CASE STUDY: VILLA EL 

SALVADOR 

The example of Villa El Salvador, 

an urban district on the outskirts of 

Lima, Peru, that was developed from 

a shanty town into a formal district of 

Lima between 1971 and 1983, shows 

some interesting lessons. The original 

"The street pattern should 

allow for densification and for 

future extension." 

90


Figure 3. Villa El Salvador (Lima, Peru) 

Source: Ana Coello de Llobet/UN-Habitat, 2013 

VES in the metropolitan 

area of Lima 

settlement design in 1971 only marked 

street and plot limits; the assignment of 

lots was largely self-organised through 

a communal organisation. Today, the 

district has over 380,000 inhabitants 

(see Figure 3), and 84 per cent of 

houses are owned by the inhabitants 

(INEI census, 2007 data). This planned 

city extension is generally deemed 

a success due to its simple master 

plan and mixed use design, which 

allowed for future growth, incremental 

improvement and strong ownership by 

the inhabitants. 

The issues of sprawl, segregation and 

connectivity have been actively addressed 

in Villa El Salvador: 

Compactness versus sprawl. The 

block module and plot structure of 

Villa El Salvador (see Figure 4) allow 

for different densities. This flexible 

urban pattern structure can be easily 

implemented, extended and densified, 

reducing the effects of uncontrolled 

sprawl. The neighbourhood can be easily 

extended by adding modules to existing 

Module Area Distribution 

28% Roads 

10% Open spaces 

62% Built-up areas 

Street Hierachy 

A: NW-SE Avenues: 70-80m 

B: SW-NE Avenues: 50-70m 

C: Intermediate streets: 14m 

D: Inner neighbourhood streets: 10m 

Figure 4. Villa El Salvador city grid 

Source: Ana Coello de Llobet/UN-Habitat, 2013 



ones, and existing plots can be densified 

according to the exigencies of urban 

development. 

Integration versus segregation. One 

basic principle in the early stages of 

development was to avoid becoming a 

dormitory town, and hence the focus 

was on creating jobs in a mixed-use 

environment. Part of the area was 

designated for industrial and agricultural 

uses (“Before the houses, build 

factories!”). Likewise an inclusive public 

facilities policy, emphasising service to all 

households, was also adopted. 

Connectivity versus congestion. The 

proposed, well-articulated road network 

(again see Figure 4) is well connected 

to the existing train and road network 

at the national (Pan Americana Sur), 

metropolitan and local level. The basic 

planning module of Villa El Salvador 

provides for 28 per cent street space, 10 

per cent public space and 62 per cent 

built-up area – proportions that allow 

for sufficient provision of street and 

public space and adequate vehicular 

and pedestrian connections within the 

neighbourhood. 

UN-HABITAT AND PLANNED 


The majority of future urban population 

growth will take place in small- to 

medium-sized urban areas in developing 

countries, most notably in Africa and 

Asia (Cities and Biodiversity Outlook, 

2013). Most in need of planned city 

extensions are those rapidly growing 

cities in developing countries (i.e. with 

low GDP per capita; see Figure 5), where 

local authorities often lack the capacity 

needed to promote effectively sustainable 

urban development. 

Drawing on lessons from Villa El Salvador 

and numerous other experiences, 

UN-Habitat is working with a wide 

range of partners from different levels 

of government and a variety of other 

sectors to help plan city extensions in 

a number of countries. In Rwanda, 

Kenya, Egypt, Philippines, Colombia, 

Haiti and elsewhere, we are supporting 

local authorities in rapidly urbanising 

agglomerations to provide the appropriate 

"Most in need of planned 

city extensions are those 

rapidly growing cities in 

developing countries." 

legal, institutional and financial 

frameworks for sustainable city extensions. 

Our work reflects the following five 

principles for planned city extensions, 

with corresponding guidelines: 

Adequate space for streets and an efficient 

street network. The street network should 

be adequate not only for vehicles and 

public transport but also for pedestrians 

and cyclists. UN-Habitat’s research 

indicates that, in high density, mixed-use 

urban areas, at least 30 per cent of land 

should be allocated for roads and parking, 

and at least 15-20 per cent should be 

allocated for open public space. To develop 

sustainable mobility, the design of the street 

network should differ from the modernist 

practice in the following aspects: 

Public transport, walking and cycling 

should be encouraged. 

Road hierarchy should be highly 

interconnected. 

Sufficient parking space should be 

provided. 

Relatively high density. As previously 

discussed, relatively high density 

development offers numerous socioeconomic 

and environmental benefits. 

High density development: 

Slows down urban sprawl because 

high-density neighbourhoods can 

accommodate more people per area. 

Reduces transport needs, especially for 

motorised transport, reduces parking 

demand, and increases support for 

public transport. 

Increases energy efficiency and 

decreases pollution. 

Decreases the costs of public services 

such as police and emergency 

response, school transport, roads, water 

and sewage. 

Figure 5. Countries – urban population growth rates and annual 

GDP per capita 

Source: UN-Habitat 

92


Provides for better community service. 

Allows for an improved provision of 

public open space. 

Mixed land use. Advocates of mixed 

land use development seek to develop 

a range of compatible activities and 

land uses close together in appropriate 

locations, in design modules that are 

flexible enough to adapt over time to 

the changing market. The purpose of 

mixed land use is to create local jobs, 

promote the local economy, reduce 

landscape fragmentation and support 

mixed communities. Mixed land use 

can be applied at different spatial 

levels: city, neighbourhoods, blocks 

and buildings. Mixed land use reduces 

urban sprawl, car dependence and 

traffic congestion, and increases vitality 

of urban centres. 

HABITAT III: A NEW 

URBAN AGENDA 

The third United Nations 

Conference on Housing 

and Sustainable Urban 

Development (Habitat III) in 

2016 will offer an opportunity 

to reinvigorate the global 

commitment to sustainable 

urbanisation, and for member 

states to agree on a New 

Urban Agenda. Habitat III 

will be the first UN global 

summit after UNFCCC COP21 

in Paris, and the adoption of 

the Post-2015 Sustainable 

Development Agenda; it thus 

will offer a chance to view 

the results of those efforts 

through an urban lens. The 

preparatory process and the 

Conference itself will afford a 

unique opportunity to discuss 

the important challenge of 

how cities, towns and villages 

are planned and managed, 

in order to fulfil their role as 

drivers of more sustainable 

development, and leading 

partners in the global effort to 

address climate change. 

"Social mix provides the 

basis for healthy social 

networks, which in turn are the 

driving force of city life." 

Social mix. Encouraging the proximity 

of rich and poor within the urban 

fabric promotes the cohesion of and 

interaction between different social 

classes in the same community. It helps 

to ensure accessibility to equitable urban 

opportunities by providing different types 

of housing. Social mix provides the basis 

for healthy social networks, which in turn 

are the driving force of city life. Social 

mix is a socio-spatial concept, with the 

following objectives, all of which will 

increase social resilience within the city: 

Promoting more social interaction and 

social cohesion across groups 

Generating job opportunities 

Overcoming place-based stigma 

Attracting additional services to the 

neighbourhood 

Sustaining renewal/regeneration 

initiatives. 

Social mix and mixed land use are 

interdependent and promote each other. 

Mixed land use and appropriate policy 

guidance lead to social mixing. In a 

mixed land use neighbourhood, job 

opportunities are generated for residents 

from different backgrounds and with 

different income levels. People live and 

work in the same neighbourhood and 

form a diverse social network. 

Limited land use specialisation. Providing 

for flexibility in land use helps to ensure 

the implementation of mixed land use 

and increase economic diversity. Limiting 

overly rigid land use specialisation is 

important in creating mixed land use. 

The five principles presented above 

for developing more sustainable 

planned city extensions are strongly 

interrelated and mutually supportive. 

Together they offer a basic recipe for 

urban development that provides for 

more compact, inclusive and connected 

cities. This approach can not only help 

to reduce greenhouse gas emissions 

and build resilience, but also confers 

important other co-benefits. 

Dr Joan Clos was appointed Executive 

Director of the United Nations Human 

Settlements Programme (UN-Habitat) at 

the level of Under-Secretary-General by the 

United Nations General Assembly. He took 

office at the Programme’s headquarters in 

Nairobi, Kenya, on 18 October 2010. He is 

a medical doctor with a distinguished career 

in public service and diplomacy, and was 

twice elected Mayor of Barcelona, serving two 

terms during the years 1997-2006. He was 

appointed Minister of Industry, Tourism and 

Trade of Spain (2006-2008) under President 

Jose Luis Rodriguez Zapatero. In this role, he 

helped rationalise the Iberian energy market 

in line with European Union policies. Prior 

to joining the United Nations, he served as 

Spanish ambassador to Turkey and Azerbaijan. 

The United Nations Human Settlements 

Programme (UN-Habitat) is the United 

Nations agency for human settlements. It 

is mandated by the UN General Assembly 

to promote socially and environmentally 

sustainable towns and cities with the goal 

of providing adequate shelter for all. UN- 

Habitat’s programmes are designed to help 

policy-makers and local communities get to 

grips with the human settlements and urban 

issues and find workable, lasting solutions. 

UN-Habitat’s work is directly related to the 

United Nations Millennium Declaration, 

particularly the goals of member states to 

improve the lives of at least 100 million 

slum dwellers by the year 2020 (Target 

11, Millennium Development Goal 7); 

and Target 10 which calls for the reduction 

by half of the number without sustainable 

access to safe drinking water. 


PERU 2021: A CREATIVE 

SUPPORT FOR VISION 2050 

By Henri Le Bienvenu, Managing Director, Peru 2021 

The objective of Peru 

2021 is for the country 

to be recognised as the 

leader in Latin America for 

having the best Corporate 

Social Responsibility 

(CSR) practices. Peru 

2021 looks forward to 

achieving a modern and 

developed Peru and Latin 

America, both finally free 

from the constraints of 

underdevelopment. 

At the World CEO Forum in New 

Delhi, India, in February 2010, the 

World Business Council for Sustainable 

Development (WBCSD) released its 

Vision 2050: The new agenda for 

business. It was compiled over an 

18-month period by 29 leading global 

companies representing 14 industries. It 

reflects the combined efforts of CEOs 

and experts, included participation and 

dialogue of more than 200 companies 

and external stakeholders from 20 

different countries. The effort was 

clearly significant. 

Vision 2050 calls for a new agenda for 

business, which sets the pathway to a 

world in which by mid-century, nine 

billion people can live well and within 

the planet’s resources. The vision concept 

and the 2050 timeframe provide a clear 

and attainable goal for: 

Gauging the diminishing time 

between today and the year 2050 

Developing a path and areas of action 

Giving clarity to the business 

perspective, and 

Quantifying market potential and 

agreeing on action points and 

necessary next steps. 

Vision 2050 does not constrain itself with 

what is possible within today’s business 

models or technological capabilities. It 

avoids the usual trap of extrapolating 

from current trends and best practices to 

describe what is likely to happen in forty 

years. Instead, it focuses on what it wants 

to happen. It describes a desirable world 

forty years into the future. Then it back 

tracks from that ideal world to the present 

business-as-usual prospects. Knowing 

"Vision 2050 calls for a new 

agenda for business, which 

sets the pathway to a world in 

which by mid-century, nine 

billion people can live well and 

within the planet’s resources." 

VISION 2050 

ADDRESSES NINE 

DIMENSIONS OF A 

SUSTAINABLE SOCIETY: 

1) Values and behaviours 

2) Human development 

3) Economy 

4) Agriculture 

5) Forests 

6) Energy and power 

7) Buildings 

8) Mobility 

9) Materials. 

where you are heading to is helpful when 

starting any trip. Vision 2050 provides 

a clear destination for any enterprise’s 

sustainability journey. 

THE PLACE OF PERU 2021 

Peru 2021 is a WBCSD Regional 

Network (RN), a global alliance of 

more than 200 like-minded business 

organisations united by a shared 

commitment to providing business 

leadership for sustainable development 

in their respective countries or regions. 

Peru 2021 leads entrepreneurs to the 

achievement of a National Shared Vision, 

in which enterprises act as change agents 

in the development of the country, 

incorporating CSR as a strategic 

management tool. 

As mentioned by Peter Bakker, WBCSD 

president: “The emerging economies 

continue to grow, the RN gives the 

WBCSD a conduit to engage a wider 

set of new global players. It has become 

an increasingly important asset for the 

WBCSD in supporting the organisation’s 

strategic reorientation from creating 

awareness to advocating and implementing 

sustainable development at a local level.” 

94

AGENTS OF CHANGE 

Peru 2021 is working on a Peruvian 

vision towards the year 2050. We are 

placing Peru in the centre of our 

model. We need to determine what the 

parameters are for a sustainable Peruvian 

society. Peru 2021 has gathered a group 

of young and enthusiastic people with 

the objective of developing a team of 

business people, entrepreneurs, academics, 

public servants and artists, who will help 

generate proposals to align the efforts 

of the private sector with the strategic 

Peruvian goals facing the year 2021 and 

later, to the objectives for the whole 

Planet for the year 2050. 

It is important to define if Peru’s societal 

factors are similar to those described by 

the WBCSD. To this end, Peru 2021 has 

plans to invite several different groups to 

participate in these discussions, including 

interests of the private sector, public sector, 

NGOs, academia, and society in general. 

We believe that placing Peru in the 

centre of our model, understanding the 

country’s needs, will help business people 

better understand sustainability and their 

role as agents of change. 

www.peru2021.org 


DRIVING THE FUTURE 

OF (E-) MOBILITY 

By Glenn Schmidt, Head of Steering Government Affairs, BMW Group 

The overall pathway of the BMW Group 

illustrates that increased sustainable 

development can effectively complement 

a firm’s economic growth and success. 

Important framework conditions for 

global business are constantly changing. 

This implies that companies must 

regularly reassess external factors relevant 

to the business model. Which factors 

present a risk over the long term? Where 

do opportunities lie? What external 

expectations need to be fulfilled? 

Global developments such as climate 

change, scarcity of raw materials, 

population growth and urbanisation 

present us with extensive new challenges. 

Politics, society and our customers, in 

particular, expect us to provide long-term 

solutions to these challenges. As a leading 

premium provider of products and 

services, we believe that sustainability is 

the key to the next level of premium. 

The introduction of Efficient Dynamics 

and the launch of the new BMW i 

sub-brand have made it clear that we 

can be a leader for industries worldwide. 

We do not seek easy compromises in the 

development of our vehicles and mobility 

concepts, but pursue both outstanding 

solutions for mobility of the future and 

For the production of the BMW i3, four windpower plants with a total 

installed capacity of 10 MW were commissioned on the premises of 

the BMW plant in Leipzig. 

the sustainable use of resources. This is 

one of the reasons why we have been 

ranked among the top global companies 

in all major sustainability ratings for 

many years. Again this year we have been 

ranked number one in the Dow Jones 

Sustainability Index. 

One of the key elements for the success 

of the BMW Group is that sustainability 

(and corporate social responsibility) 

are implemented throughout the value 

chain: from resource-efficient and 

environmentally-sound development and 

production processes to extremely fuelefficient 

vehicles to recycling concepts 

designed to minimise environmental 

impact at the end of their active life. A 

particularly good example of the rigorous 

implementation of this principle is found 

in the development and production of 

the BMW Group’s first series-produced 

electric vehicle, the BMW i3. Unlike 

conventional vehicles ‘converted’ into 

electric cars, the BMW i3 is purpose built 

for an electric drive system. With a range 

of up to 160 kilometres, it generates zero 

tail-pipe emissions and up to 50 per cent 

less CO 2 

over the entire product lifecycle, 

when run on electricity from renewable 

sources, compared with a comparable 

conventional vehicle. This certainly 

brings us significantly closer to our core 

objective of providing society with the 

possibility of ultra-fuel-efficient mobility. 

The BMW Group’s understanding 

of sustainability goes beyond the car. 

The BMW i3, presented and launched 

in major markets worldwide in 2013 

and 2014, was also developed to 

meet measurable sustainability targets 

throughout its lifecycle. 

LINKS IN THE CHAIN 

The BMW i Remote App is coupled with the BMW ConnectedDrive 

interface to allow drivers to monitor charging times and vehicle 

status, alter charging settings and even control vehicle temperature. 

What exactly does a value chain geared 

towards sustainability guidelines look like? 

One link in this chain is the carbon fibre 

plant in Moses Lake, USA: 100 per cent of 

the energy required to manufacture carbon 

fibres is obtained from regenerative sources 

96

In 2013, BMW brought their vision of urban emissions-free electromobility to the streets: 

The BMW i3 is purpose built for electric driving. 

– hydroelectric energy. The BMW i3 also 

represents the exemplary use of ultralight 

carbon-fibre reinforced plastic (CFRP). 

Carbon fibre makes the BMW i3 up to 

350 kilograms lighter than a conventional 

electric car. The BMW Group plant in 

Leipzig, Germany, uses wind turbines 

to supply the entire energy required for 

BMW i production. With our holistic 

approach to premium electro-mobility, 

we aim to set new global standards and 

permanently change mobility patterns 

in metropolitan areas through integrated 

mobility solutions. Alongside the 

‘e-revolution’ currently being driven 

worldwide by the BMW i3 and the BMW 

i8 plug-in hybrid sports car, the BMW 

Group also leads the way in the evolution 

of conventional vehicle concepts. This 

includes further refinement of highlyefficient 

combustion engines, lightweight 

construction, hybrid systems and, once 

again, resource-efficient production. We 

continue to set ourselves ambitious targets: 

we aim to lower the CO 2 

emissions of 

our European new vehicle fleet by at least 

50 per cent from 1995 levels by 2020. In 

production, our goal is to reduce resource 

consumption per vehicle by 45 per cent 

from 2006 levels by 2020. Our vision is 

ultimately to achieve completely CO 2 

-free 

vehicle production. 

"The BMW Group’s 

understanding of sustainability 

goes beyond the car." 

At the same time, the global economy 

and our own company processes are 

becoming increasingly complex. We 

must, therefore, continue to develop the 

relationship between risk management, 

strategy and dialogue with external 

partners within society. This is another 

reason for us to support the Climate 

Action Programme’s Sustainable 

Innovation Forum. 

LEADING TECHNOLOGICAL 

CHANGE 

Our corporate philosophy of sustainability 

is affirmed by the public and, above 

all, our stakeholders worldwide – with 

their rising expectations of automobile 

manufacturers in terms of efficiency 

and dynamic performance, as well as 

future developments in environmental 

compatibility and alternative mobility 

concepts for the cities of the future. For 

this reason, the BMW Group aims to 

lead technological change and a new way 

of corporate thinking. It is not sufficient 

for a company geared towards value 

creation, like the BMW Group, to pursue 

environmental and social commitment as 

an end in itself. Our success is based not 

only on financial fundamentals, but also 

on the solid anchoring of the company 

in society. This makes sustainability an 

inherent part of our business model and 

the necessary foundation for our success 

as a global player. In essence, sustainability 

is the basis for a sustainable future business 

and is driving the future of (e-)mobility. 

www.bmw-i.com 



SMARTER CARS IN 

SMARTER CITIES 

By Erik Jonnaert, Secretary General of the European Automobile 

Manufacturers’ Association (ACEA) 

The smart cities and the cars of the future need each other to succeed. Combining smarter 

cars with smarter infrastructure is one of the best ways of ensuring that cities establish a 

sustainable, mobile transport environment. The European automobile industry’s investment 

in innovation upholds its commitment to leading development in vehicle connectivity, but it 

needs the support and investment of government and infrastructure providers to get new 

and emerging technologies onto the roads. 

The world we live in is shaped by the 

transport options open to us. Indeed, as 

transport technology has evolved it has 

had to be adapted to existing structures, 

but it has also completely changed how 

urban and rural spaces have grown. 

The centres of Europe’s surviving 

medieval cities are intricate arrangements 

of streets organised primarily for walking 

or driving a horse, as these were the 

prevailing transport modes of the time. 

Many of these ‘old’ towns and cities can 

be traversed on foot in under half an 

hour. Paris, a giant metropolis by oldworld 

standards, is still just a two-hour 

walk top-to bottom. These urban centres 

grew up to be a manageable size – often 

surrounded by walls – because of the 

imperative to facilitate the supply of 

goods and services, the easy expunging 

of waste and the implicit need for easy 

deployment of city defence forces. 

The result of these cities growing up 

as they did is that modern forms of 

transport have been bolted on as they 

have arrived. Train stations are often on 

the outskirts of towns and cities. This is 

partly because early steam locomotives 

had the unfortunate tendency of 

exploding ferociously or of running out 

of control, but is also because placing 

them right in the centre would have 

involved knocking down thousands 

of existing buildings. However, rail, 

in particular, can be credited with 

transforming the early modern world. 

The Industrial Revolution would never 

have happened without the then newfangled 

way of transporting heavy loads 

and people over formerly exhaustingly 

impossible distances. 

The internal combustion engine 

automobile came relatively late to the 

transport game, arriving to a world that 

barely had paved roads and very little 

designated on-street parking. Driving a 

car in such places as Bruges in Belgium, 

the old centre of London or the city 

of Lucca in Italy is still a dauntingly 

difficult task and the cities are narrow 

mazes. Many of these places weren’t 

even designed with cycling in mind: 

most medieval cities had (and some still 

do) cobblestones: pretty uncomfortable 

on a bicycle! 

98


Such has been the success of the 

automobile since the 1950s that 

the evolution of our cities has been 

dramatically changed by their existence. 

While inner cities tend to retain their preautomotive 

layouts, suburban areas built 

since often have wider streets laid out in 

relatively logical patterns. There is usually 

better parking, with garages sometimes 

incorporated into houses or apartment 

blocks. Motor vehicle ownership has not 

only transformed how we get around, but 

it has also transformed the buildings we 

travel between. 

However, despite the remarkable 

innovations, levels of refinement, 

efficiency and safety, and despite the 

transformative power of mass car 

use, the vehicles themselves have not 

fundamentally changed from those of 

the Ford Model T in the early 20th 

century. Cars are still used in the same 

way: they have four road wheels, a 

motor, a steering wheel, and they have 

to be guided to their destination. They 

are still, despite the heated seats and 

the on-board entertainment systems, 

relatively dumb. 

"There are over 240 million 

cars in Europe alone – about 

one car for every two people on 

the continent – and about three 

quarters of the population live 

in urban settings." 

THE NEED TO BE SMART 

The popularity of motor vehicles – 

particularly cars – has therefore come 

with costs, partly caused by this overall 

primitiveness. The chief concerns are 

the congestion, safety and environmental 

issues that the use of automobiles 

causes in cities. There are over 240 

million cars in Europe alone – about 

one car for every two people on the 

continent – and about three quarters 

of the population live in urban settings. 

There are so many cars in Europe that 

were the entire fleet to be parked all 

next to each other at the same time, 

they would completely cover an area the 

size of Luxembourg. Most of these cars 

are in urban environments, and cause 

congestion that the EU estimates costs 

€ 100 billion (US$128 billion) a year to 

the economy – around 1 per cent of the 

EU’s GDP. In the long run there need 

to be solutions developed to ensure that 

traffic congestion – and the pollution 

this causes – can be managed. 

Simply building more roads is not a 

viable solution, and nor is it terribly 

effective in the long run. Smarter cars, 



and smarter roads for them to ride on, 

might be. Vehicle manufacturers have 

embraced the need to innovate in order 

to find solutions, but these are still works 

in progress. What Europe needs, if it is 

ever to realise the dream of genuinely 

‘sustainable’ mobility, is smart mobility. 

The European automotive industry 

regularly highlights the need for an 

‘integrated approach’ to ensure this. 

This would see smarter and cleaner cars 

drive on the roads, supported by smarter 

infrastructure that would receive, analyse 

and transmit data sent to it by vehicles 

circulating on the roads. 

INTELLIGENT CONNECTIVITY 

Connectivity is a key enabler. 

Connecting vehicles to each other 

and to infrastructure requires a leap of 

coordination and investment on behalf 

both of carmakers and of infrastructure 

providers. The opportunities that this 

integrated application of technology 

could deliver are astonishing; and what is 

perhaps most remarkable is that most of 

the equipment and technical know-how 

"Most of the equipment 

and technical know-how 

needed to make a world of 

smart and sustainable 

mobility already exists." 

needed to make a world of smart and 

sustainable mobility already exists. 

Modern cars are increasingly extensions 

of our digital lives, and indeed most new 

cars are fitted with Bluetooth or docking 

stations, the smarter versions of which 

turn the whole vehicle into extensions 

of the docked smartphone. Phones, 

as well as other telecommunications 

technologies, are making it easier for 

digital services – for instance: traffic 

jam avoidance, parking space finders, 

and devices that inform the user about 

how fast they must drive to ensure they 

will never be caught at red lights – to 

proliferate. This is changing how cars 

are used in the here and now. It is also 

affecting heavy goods transport: in 

Europe some 72 per cent of all goods are 

transported by road, but road networks 

are not infinitely expandable. However, 

with forward-thinking investments 

in intelligent transport and vehicle 

technology, freight could be made 

more efficient and faster, through such 

technologies as ‘platooning’ (travelling 

in very close succession) and automated 

driver support. 

If automated vehicles become a reality 

– and are permitted to circulate, possibly 

without a driver at the helm (though this 

is far off due to the legal and practical 

100


ramifications automated machines arouse) 

– the potential arises for far greater 

efficiency in the use of road space. 

The chief infrastructure-side group 

of technologies falls under the term 

‘Intelligent Transportation Systems’ (ITS). 

ITS technologies are still in their relative 

infancy, but are evolving fast. However, 

they have the potential to revolutionise 

how the vehicles we use interact with 

each other and the roads. They could 

also open up the possibility of a whole 

new range of services – from driver aids 

(such as parking space finders) to whole 

networks (such as autonomous car 

sharing). Many of the required pieces are 

there, but they need to be fitted together 

if the ITS and smart car combination 

is ever going to anything other than an 

interesting technological curiosity. 

While nominally ITS may have 

applications for a range of transport 

modes, under the EU Directive 2010/40/ 

EU, ITS is generally defined to apply to 

road/vehicle interfaces for road transport. 

ITS systems include such things as the 

eCall emergency notification system, road 

traffic management systems for varying 

speed limits or traffic flow, enforcement 

and collision prevention. 

The motor vehicle industry actively 

contributes to discussions on ITS and 

aims to accelerate and coordinate the 

deployment of the technology in road 

transport, including for interfaces with 

other transport modes. Intelligent 

information and communication 

technologies will play a major role in 

bringing ITS technology to the roads. 

This has the potential to increase 

the efficiency of road use, improve 

safety outcomes and improve the 

environmental performance of vehicles. 

Comprehensive deployment requires 

investment in technology both at vehicle 

fleet level and in the infrastructure they 

use. As the technology develops, it ought 

to find its way on to more and more 

vehicles. Similarly, ITS systems will play 

gradually more responsible roles in the 

way vehicles and traffic operate. 

There are legal liability and privacy 

issues that connectivity and automation 

raises, and these must be addressed for 

the technology to have future. Vehicle 

manufacturers take data security very 

seriously as a result, and the discussion 

about how to protect vehicle owners and 

users is already under way. 

In the long run, the combination of 

sophisticated smart vehicles and of 

ITS-enabled infrastructure could result 

in a paradigm shift when it comes to 

how we use or own vehicles. Innovation 

both on and off the roads has led to the 

development of new services, some of 

which have the potential to genuinely 

influence the automotive industry. 

Cars that cooperate with each other and 

with the infrastructure would improve 

traffic flow and reduce the requirement 

for central parking. Together, smart, 

connected and cooperative technologies 

could help make tightly congested city 

centres move again. 

THE ROLE OF 

STAKEHOLDERS 

Getting to this smart and efficiently 

mobile future will require the 

involvement of most of the key 

stakeholders, each with their own part 

to play. Vehicle manufacturers need to 

develop technologies that customers 

actually want and will use. Infrastructure 

"Comprehensive 

deployment requires 

investment in technology 

both at vehicle fleet level and 

in the infrastructure they use." 

providers, spurred on by governments 

(who, after all, are likely to be major 

financial backers for large projects) need 

to meet industry half way and roll out 

cooperative ITS systems. Government 

needs to enable the proliferation of 

connected cars (for example, by freeing 

up telecommunications bandwidth), and 

has to permit the use of smart and even 

automated vehicles on public roads, as 

some are beginning to do. Policy-makers 

also have the role of working out the 

chain of legal liability for autonomous, 

connected or smart vehicles and their 

data. Finally, all stakeholders need to 

work together to develop standards 

so that the technology is compatible 

globally. 

With these pieces of the jigsaw put 

together, the future begins to look like 

the picture of the smart, sustainable 

mobility that the automotive industry 

has pushed for ever since the first cars 

motored through the streets of Europe’s 

ancient cities. 

ACEA is hosting a conference on The 

Connected Car: Safe, Clean, Secure on 

4 December 2014 in Brussels. More 

information can be found on the website 

at www.acea.be. 

Erik Jonnaert is Secretary General of 

the European Automobile Manufacturers’ 

Association (ACEA). Mr Jonnaert began 

his career with Linklaters law firm. He 

subsequently joined Procter & Gamble, 

where he worked for 25 years in public 

and regulatory affairs, communications and 

stakeholder relations. Before joining ACEA, 

He was Procter & Gamble’s Vice President for 

External Relations in Europe, later moving to 

establish a network in Asia. Mr Jonnaert is a 

graduate of Harvard Law School. 

The European Automobile Manufacturers’ 

Association (ACEA) represents the 15 

European motor vehicle manufacturers at 

EU level, providing technical and industrial 

expertise for the policy-making process. 

ACEA’s members are BMW Group, DAF 

Trucks, Daimler, FIAT SpA, Ford of Europe, 

General Motors Europe, Hyundai Motor 

Europe, IVECO SpA, Jaguar Land Rover, 

PSA Peugeot Citroën, Renault Group, 

Toyota Motor Europe, Volkswagen Group, 

Volvo Cars, and Volvo Group.. 


GREEN OUR WORLD 

INDUSTRIES: 

EMPTYING LANDFILLS AND 

CLEANING OIL SPILLS 

plant, the liquids can now be used to 

power the process with the excess energy 

being fed into the grid (excess ratio 9:1). 

MULTIPLE APPLICATIONS 

FOR GOIC CARBON 

In a world of population growth, increased 

overconsumption and growing mountains 

of waste, GOWI AG has the mission of 

substantially reducing landfills, while at 

the same time helping to reduce emissions 

and decontaminating soil and water. 

We have presented our technology 

at the UNEA in Nairobi, and we are 

honoured to contribute at the COP20, 

the Sustainable Innovation Forum 2014 

in Lima. 

PROCESSING WASTE INTO 

INORGANIC CARBON (GOIC) 

In more than 14 years, GOWI AG has 

developed its fully CE certified, unique 

VDI technology that enables processing 

waste into inorganic carbon (GOIC), a 

material with characteristics that open 

up a wide range of applications. 

Rubber waste, for example used tyres, is 

thermally converted to achieve a clean 

separation of solid materials such as steel, 

metals and carbon from toxic substances. 

Solids stay in the reactor, liquids with all 

the chemicals are pushed out in the form 

of oil and gas. Combined with a power 

The carbon extracted from the 

process has a purity of 95-99 per cent, 

depending on the base material. Its 

internal surface is 30m 2 /g BET after 

the process and can be enhanced up to 

1500m 2 /g after application of available 

technologies giving the carbon a great 

adsorption capacity. 

www.gowi-ag.ch 

"The carbon extracted 

from the process has a purity 

of 95-99 per cent, depending 

on the base material. " 

102

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Business today is exposed to more 

risk and more competition than ever 

before, making profit margins more 

difficult to make and easier to lose. 

Corporate business models generate many 

change-drivers, including a renewed 

focus on sustainability. The resulting 

entrepreneurial activity is driving the 

need for the profitable provision of 

goods and services while contributing to 

ecological health and societal welfare. Few 

managers feel comfortable navigating this 

‘brave new world’ – and GIST Advisory’s 

Executive Training Programs are designed 

to equip them to do so. 

COURSE DETAILS 

5-7 June 2015: US$5,000 (the 

programme fee covers tuition, books, 

case materials, accommodation and 

meals). Course location: client premises, 

or near Geneva, Switzerland. Maximum 

20-25 participants per course. 

COURSE INSTRUCTORS 

Pavan Sukhdev, Study Leader, TEEB; 

author of Corporation 2020; UNEP 

Goodwill Ambassador; Director and 

CEO, GIST Advisory. 

Professor Rajiv Sinha, W P Carey School 

of Business, Arizona State University; 

Director, GIST Advisory. 

COURSE CONTENT 

Our Executive Education Training 

Program will cover the following topics: 

Consumers, Innovation and Sustainability. 

This session covers the creation and 

marketing of sustainable products, 

including determining consumers’ 

willingness to pay for sustainable product 

attributes. We will also address segmenting 

markets between high and low WTP 

consumers and targeting them with 

different versions of sustainable products 

to maximise profitability and/or market 

share. Issues like determining the price 

premium for sustainable products, 

determining magnitude of introductory 

discounts for low WTP consumers to 

encourage the use of sustainable products 

and shaping consumers’ opinions about 

sustainable new products will be discussed. 

Three Action Levels for Sustainability: 

Consumer, Firm, Society. Issues such 

as tiered targeting for sustainability, for 

example, and the links between tiers, are 

covered by this session. Others include 

consumer behaviour and responding 

with product and service innovation; 

business models, supply chains, company 

policies, and CSR; transparency and 

disclosure for a better society; micropolicy 

reforms and ‘Corporation 

2020’; and disclosing and internalising 

externalities. 

Creating and Measuring Social Value: 

Old CSR and New CSR. This session 

covers the transition from Old CSR 

(Corporate Social Responsibility/Social 

Programmes) to New CSR (Corporate 

Sustainability Response/Transformation). 

In particular we will focus on social 

programmes and how to target value and 

measure SROI (including case studies). 

We will also discuss the Dimensions of 

Social Value beyond SROI. 

Value Chain Responsibility and Impact 

Measurement. Life-Cycle Analyses (LCAs) 

and Life-Cycle Inventories (LCIs) are 

covered by this session, including how 

to set scope and boundaries for these 

assessments. We will discuss LCAs as 

a toolkit for process and efficiency 

improvement, and Environmental KPIs 

and Measuring EP&L. 

Preparing and Using a 4D-P&L. 

This session shows how to implement 

the IIRC (International Integrated 

Reporting Council) framework in 

management & reporting using GIST 

Advisory's patented methods for 

measuring and valuing human, social 

and natural capital externalities, and 

combining them with financial valueaddition 

for a four-dimensional profit 

and loss statement ("4D-P&L") 

Beyond Shareholder Value. This session 

covers the 4D-P&L as Stakeholder 

Performance and Communicating 

Stakeholder Performance. 

Our Executive Education Training 

Program will enable managers to: 

Develop optimal marketing strategies 

for sustainable products (pricing, 

advertising, optimal product attributes) 

Estimate profits and market share 

for sustainable products both before 

launch (for new products) and postlaunch 

(for existing products) 

Identify and evaluate social impacts 

(positive and negative, driven by 

business models, policies, and CSR) of 

their value chains and direct operations 

Design an integrated Stakeholder Report 

for their firm, including a 4D-P&L 

statement with all material externalities 

Design appropriate internal (to Board, 

CEO, and Managers) and external 

communications formats to present 

the above analyses. 

Contact us at information@ 

gistadvisory.com, or visit www. 

gistadvisory.com 



GLOBAL 

PARTNERSHIPS, 

GLOBAL SOLUTIONS 

By Jane Henley, Chief Executive Officer, World Green Building Council 

(WorldGBC) 

Our cities occupy just 4 per cent of the earth’s land area, and yet they are home to more 

than half the world’s population. Efficient, productive, healthy cities are vital to the wellbeing 

of our people and our planet, but cities are facing unprecedented challenges: 

climate change, population growth and shrinking resources. In the next 30 years, the built 

environment will double in size. There has never been a better time to get this right, using 

partnerships on a global scale. 

Currently, around 5 per cent of the 

world’s building stock is certified under a 

recognised green building rating system – 

but 5 per cent is not enough. While it is 

clear that we must scale up our buildingby-building 

approach to sustainability, it 

is equally clear that governments around 

the world are not quite sure how to tackle 

this. Some city governments are leading 

the charge in some respects, and falling 

behind in others. Some are outlining 

their visions for sustainable cities in 

2030, 2050 or beyond, others are taking 

practical action, and others are struggling 

to cope with the perennial challenge of 

balancing competing priorities of a longterm 

planning process and a short-term 

election cycle. 

Organisations such as the C40 Cities 

Climate Leadership Group, ICLEI – 

Local Governments for Sustainability 

and R20 Regions for Climate Action 

are bringing governments together to 

exchange knowledge and share best 

practice solutions in sustainable city 

development – and these efforts are to 

be applauded. 

"Some city governments 

are leading the charge in 

some respects, and falling 

behind in others." 

But as much as we need governments 

to develop better policies, we need 

industry to increase its capacity to deliver 

sustainable solutions. The property and 

construction industry understands better 

than any that taking a building-bybuilding 

approach is not only slow, but 

misses crucial opportunities to implement 

large-scale sustainable solutions – whether 

precinct-wide distributed energy or a 

city-wide transport system. 

BUILDING CAPACITY AND 

SHARED KNOWLEDGE 

Recognising that industry needed a 

similar forum to share knowledge and 

build capacity, the WorldGBC established 

the Sustainable Cities Initiative (SCI) 

as a peer-to-peer networking and 

knowledge-sharing hub that also acts 

as an interface between industry and 

government. The SCI is looking to 

build successful partnerships between 

the private sector and city governments, 

and strengthen the relationships between 

Green Building Councils (GBCs) and 

C40 member cities. The goal is to foster 

a more ‘joined up’ approach to the way 

we build and retrofit our cities. 

More and more GBCs are ‘thinking 

outside the building’, as they acknowledge 

this as a critical necessity in tackling the 

urgent challenges resulting from rapid 

urbanisation – reducing the incidence of 

104


Initial pilots of the Sustainable Cities Initiative are underway in various cities including Rio de 

Janeiro, Brazil 

heart disease, building greater resilience 

to climate extremes and ensuring greater 

equity in our regeneration efforts. Solving 

these ‘wicked problems’ will require new 

forms of governance, innovation and 

collaboration. It also requires new tools 

and approaches that industry can embrace 

in planning, designing and building 

communities. 

RATING TOOLS AND 

FRAMEWORKS 

Drawing on two decades’ experience 

in growing the green building 

marketplace, GBCs around the world 

are developing the new tools to tackle 

these sustainable city challenges. New 

building partnership rating systems and 

frameworks have been developed to 

help guide more sustainable outcomes 

at the city level. In Australia, the Green 

Star – Communities rating system is 

guiding the design and development 

of dozens of projects, from urban infills 

in major capital cities to greenfield 

projects that will one day be the size 

of small cities. The US Green Building 

Council’s LEED-Neighborhood 

"New rating systems and 

frameworks have been 

developed to help guide more 

sustainable outcomes at the 

city level." 

Development system has certified more 

than 360 projects that meet best practice 

benchmarks for planning, design, smart 

growth and green building. 

These rating tools have articulated best 

practice outcomes, allowing government 

to set urban development performance 

requirements and the private sector 

to demonstrate leadership through 

implementation. 

But implementing neighbourhoodscale 

strategies, in an integrated way, can 

be challenging for many stakeholders, 

including government policy-makers. 

However, fractured governance and 

decision-making systems, isolated 

assessment efforts and lack of prefeasibility 

funding continue to constrain 

successful efforts in district-scale 

development. Emerging frameworks 

such as the EcoDistricts Protocol are 

now providing practical guidance to 

help urban leaders deploy district and 

neighbourhood-scale strategies in an 

integrated way. The Protocol presents 

a four-phase approach to government 

policy-makers, private sector developers 

and community-based organisations 

by aligning interests and investments 

through a collaborative governance 

process. The EcoDistricts Protocol 

defines an approach for integrated 



WORLD CITY DATA 

The SCI is in the process 

of creating snapshots of 

green building in 70 cities to 

provide local policy-makers 

with up-to-date market data 

about the green building 

market, covering green 

building policies, statistics and 

identifying market and policy 

gaps. The City Market Briefs 

are an important reference 

for city policy-makers and the 

local development industry to 

gain an instant understanding 

of the ‘state of play’ about 

green building in that city 

– and to be able to make 

comparisons with other cities. 

district assessment and project definition, 

followed by a framework for ongoing 

district management and performance 

monitoring. 

And while such tools are becoming 

more prevalent around the world, 

supporting guidance remains a critical 

gap. In response, the World Green 

Building Council has compiled case 

studies of cross-sector collaboration that 

address fragmentation and mainstream 

sustainable business practices. A New Era 

in Building Partnerships provides successful 

case study examples of collaboration 

– from Colombia to France, and from 

Israel to the UK – to demonstrate how 

government and industry can work 

together. (See www.worldgbc.org/ 

activities/building-policy-partnerships.) 

GOLDEN OPPORTUNITIES 

Although the challenges that face each 

city may vary, many of the underlying 

issues remain the same. Opportunities 

to understand different perspectives 

and build trust are golden, as we work 

together to create a better future. 

Finding these common threads among 

our diverse stakeholder groups provides 

leverage, as we seek to collaborate for 

greater impact. 

As the green building movement has 

matured, we can recognise that a ‘silo’ 

approach to sustainability misses many 

opportunities. Expanding our focus 

enables us to embrace those opportunities 

– but also presents many new challenges, 

requiring collaboration between more 

people and more disciplines. Providing 

collaborative networks and practical tools 

can help us to break down the barriers to 

better cities. 

The bottom line is simple. The 

complexity of the challenge facing our 

cities is beyond any single government, 

any single sector or any single discipline 

– it requires global partnerships and 

global solutions. 

Jane Henley is the Chief Executive Officer 

of the World Green Building Council, a role 

she assumed in February 2010. Previously, 

Jane was the founding Chief Executive 

Officer of the New Zealand Green Building 

Council, which she helped establish in 2005. 

She has also been on the boards of the 

WorldGBC and NZGBC. Jane sits on a 

number of boards, is an active speaker and is 

passionate about business leading change. She 

is committed to driving market transformation 

that is underpinned by sound economic 

practices that simultaneously deliver financial, 

social and environmental benefits. 

The World Green Building Council 

(WorldGBC) connects a global coalition 

of more than 100 national Green Building 

Councils and their 27,000 member 

companies with a single mission: to transform 

the building industry and ensure our buildings 

and cities are healthy, efficient, productive and 

sustainable. (See www.worldgbc.org.) 

National GBCs can partner with interested C40 cities like Bogotá, Colombia to provide guidance and 

expertise for local redevelopment projects 

106

GOTHENBURG – 

GREEN BONDS BRING 

CLIMATE-SMART SOLUTIONS 

Gothenburg has transformed itself from 

a heavily industrialised city with all the 

environmental problems to a city today 

renowned for its world-class green 

systems solutions. Now Gothenburg is 

taking a further step forward with the 

introduction of green bonds, a financial 

instrument for environmental investments. 

“We’ve been working with 

environmentally sustainable solutions for 

a long time now and have gone from 

major issues to working today with 

the most stringent of environmental 

objectives. We’ve made a lot of progress 

and we’ve invested heavily in district 

heating and energy-efficient buildings, 

for example, which has reduced our 

impact on the environment,” says Anneli 

Hulthén, chairman of Gothenburg 

Municipality’s executive board. 

“We currently have a range of effective 

systems solutions, and through green bonds 

we can continue to invest in climatesmart 

solutions. We invite others to come 

to Gothenburg and see our solutions for 

themselves,” continues Hulthén. 

Many people have already accepted this 

invitation: every year decision-makers 

from cities and businesses facing major 

environmental challenges come to 

Gothenburg to see what the city has 

achieved. They’re mainly interested in 

"Every year decisionmakers 

from cities and 

businesses facing major 

environmental challenges 

come to Gothenburg to see 

what the city has achieved." 

systems solutions around energy, waste, 

sustainable urban development and 

transport but they are also keen to meet 

the companies behind the solutions. 

TARGETED INVESTMENT 

One way of financing these climatesmart 

projects is through green bonds, 

i.e. bonds which are earmarked for 

different environmental projects. The 

City of Gothenburg is the first city in 

Scandinavia to introduce this financial 

instrument. In September 2013 it issued 

green bonds with a value of SKr500 

million, and in June 2014 issued a further 

SKr1.8 billion worth of bonds. 

“The introduction of green bonds is 

designed to attract investors with an 

environmental profile. And we also want 

to highlight the environmental projects 

that are under way in Gothenburg,” says 

Magnus Borelius, Head of Treasury at the 

City of Gothenburg. 

“There’s a great deal of interest from 

investors, both in Sweden and abroad. 

Green bonds offer the same return as 

other bonds with similar conditions 

but, at the same time, they help create a 

better environment and raise awareness of 

climate-related challenges and solutions. 

This is a really great achievement. And it 

also gives other cities something to aim 

for,” says Borelius. 

www.greengothenburg.se 



DOUBLING THE 

EFFICIENCY OF 

THE GLOBAL 

VEHICLE FLEET 

By Rob de Jong, Head of the Transport Unit, Division of Technology, Industry 

and Economics, United Nations Environment Programme (UNEP) 

The global vehicle fleet is set to grow to at least double its present size, and almost all 

growth will be in low and middle income countries. This will result in major increases in 

climate and air pollution emissions. To stabilise emissions the global fleet’s fuel efficiency 

needs to double. While developed countries are on track to achieve this, most developing 

countries are not making progress. The Global Fuel Economy Initiative (GFEI) is supporting 

countries to put in place policies that promote cleaner and more efficient vehicles. This has 

major climate, health and economic benefits. 

Today there are about 1 billion vehicles 

on our roads. Two-thirds of these are 

found in OECD countries. But as people 

in low and middle income countries get 

more disposable income, owning a private 

vehicle is on top of their list. Predictions 

show that the global fleet will at least 

double, maybe even triple – and that 

almost all of that growth will take place in 

non-OECD countries. Actually the non- 

OECD fleet could increase five- or even 

tenfold. As a result, close to three-quarters 

of the global fleet is predicted to be found 

in non-OECD countries by 2050. 

It is crucial that the world develops new 

mobility models that do not depend on 

individual car use, through better urban 

planning, public transport, cycling and 

walking, etc. However, in any scenario 

we see a massive increase in the global 

fleet. This means we also need to ensure 

we improve the vehicles. 

Billion light duty passenger vehicles 

2.5 

2 

1.5 

1 

0.5 

0 

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 

OECD Non-OECD 

Figure 1. IEA growth prediction for light-duty vehicles, 2005 to 2050 

Source: IEA Global Energy Perspectives, 2012 

108


Today the transport sector is responsible 

for one-quarter of global energy-related 

climate emissions. This is set to increase 

to one-third, growing more rapidly than 

any other sector. Other impacts include 

air pollution, dependency on fossil fuels 

and energy use, and congestion. 

VEHICLE EMISSIONS – THE 

GOOD AND BAD NEWS 

If we could double the efficiency of the 

average car – going from about 8 litres 

per 100km today to 4 litres per 100km – 

we could stabilise the CO 2 

emissions of 

the global fleet. 

The good news is that this is what is 

happening in OECD countries. We 

are experiencing an unprecedented 

improvement in fuel economy around 

the world. The US, EU, Japan and 

others are on the way to achieving this 

target of doubling the efficiency of 

their fleet by 2030. 

However, low and middle income 

countries are lagging behind – most 

non-OECD countries are making little 

improvement in the efficiency of their 

fleet. Interestingly even countries fully 

dependent on OECD car imports also do 

not improve their fuel economy. So that 

means that the technology is available but 

the policies are not in place to make use 

of this. Only a few developing countries 

have policies in place that incentivise 

more efficient and cleaner cars. 

A SMALL WINDOW OF 

MAJOR OPPORTUNITY 

We need to ensure that the right policies 

and incentives are in place so that non- 

OECD countries improve their fuel 

economy and get the benefits that stem 

from this: not only air quality and climate 

benefits, but also economic benefits due 

to reduced fuel consumption. We only 

have a small window of opportunity to 

get these policies in place before fleets 

will have grown out of hand – maybe five 

to eight years. 

Nairobi, the capital of Kenya, is set to 

have more residents than London by 

2030. Nairobi’s car fleet is doubling in 

size every six years. Kenya imports its 

OECD 

average 

Non- 

OECD 

average 

Global 

average 

GFEI 

target 

average fuel economy 

(Lge/100km) 

annual improvement rate 

(% per year) 


(Lge/100km) 


(% per year) 


(Lge/100km) 


(% per year) 


(Lge/100km) 

required annual 

improvement 

(% per year) 

"Close to three-quarters 

of the global fleet is predicted 

to be found in non-OECD 

countries by 2050." 

vehicles mainly from Japan, and most 

are used vehicles of five to eight years 

old. The average fuel economy of its 

fleet has been stable at about 7.7 litres 

per 100km. While cars coming in are 

increasingly more efficient, vehicle size 

is also going up. Kenya is now working 

with UNEP to put in place policies 

that will incentivise cleaner and more 

efficient cars, including a taxation reform 

that will see increased taxes on cars as 

they get heavier and more polluting, and 

decreased taxes on cleaner vehicles. 

COSTS AND BENEFITS 

Doubling the efficiency of the global 

fleet will have major climate benefits – 

it would reduce emissions of CO 2 

by 

over 1 gigatonne (Gt) a year by 2025, 

and over 2 Gt/yr by 2050, and result in 

savings in annual oil import bills alone 

2005 2008 2011 2030 

8.1 7.6 7.0 

-2.2% -2.7% 

-2.4% 

7.5 7.6 7.5 

0.4% -0.6% 

-0.1% 

8.0 7.6 7.2 

-1.7% -1.8% 

-1.8% 

8.0 4.0 

-2.7% 

2012 base year -3.0% 

Table 1. Fuel economy evolution compared to GFEI target 

Note: Lge = litres of gasoline equivalent 

worth over US$300 billion in 2025 and 

$600 billion in 2050 (based on an oil 

price of $100 a barrel). 

The introduction of cleaner and 

more efficient vehicles worldwide is 

also essential to improve the rapidly 

deteriorating air quality in cities around 

the world. The WHO estimates that air 

pollution prematurely kills 7 million 

people per year, more than any other 

pollutant, and global vehicle emissions 

are a major contributor. 

There are few measures more cost 

effective to reduce climate emissions 

than improving the efficiency of vehicles. 

The benefits of the light-duty vehicle 

fuel economy standards in the US are 

estimated at US$11.9 billion per year, 

while the costs are estimated at $3.3 

billion, with CO 2 

reductions of 54 



Source: Still Pictures / UNEP 

million tonnes of CO 2 

/yr. In the EU, 

fuel economy policies have seen CO 2 

emissions go down from 140 g/km in 

2008 to 120 g/km in 2012, giving a 

total reduction of 14.4 million tonnes a 

year in 2012 (set to grow to 54 million 

tonnes a year by 2020). China has 

introduced a fuel economy policy that 

has saved it close to US$5 billion from 

2006 to 2011, reducing CO 2 

emissions 

by more than 13 million tonnes. If 

other big south-east Asian countries – 

Indonesia, Philippines, Thailand, and 

Vietnam – were to introduce fuel 

economy policies, it is estimated that this 

could reduce their fleet’s CO 2 

emissions 

by 27 per cent by 2035. 

"Countries need to urgently 

adopt measures that will see a 

significant improvement of fuel 

efficiency." 

A GLOBAL EFFORT TO 

IMPROVE FUEL ECONOMY 

In 2009 the Global Fuel Economy 

Initiative (GFEI) was launched, aiming 

at least to double the efficiency of 

the global fleet from an average of 8 

litres/100km (2005) to 4 litres/100km 

– based on IPCC and G8 targets 

and recommendations. The GFEI 

is implemented by leading global 

organisations – the International Energy 

FE Policy in Place FE Policy in Progress GFEI National Activity 

Figure 2. Global progress on fuel economy policy, September 2014 

Source: GFEI (www.globalfueleconomy.org) 

110


Agency, the International Transport 

Forum, the FIA Foundation, UC Davis 

University, the International Council 

for Clean Transportation and the UN 

Environment Programme. The Advisory 

Group of the GFEI includes the global 

oil and vehicles industry, major NGOs 

and international experts. To achieve these 

objectives, countries need to urgently 

adopt measures that will see a significant 

improvement of fuel efficiency. Measures 

successfully deployed, among others, 

include import regulation of old vehicles, 

emissions standards, fiscal measures 

(reducing taxes on efficient vehicles and 

increasing taxes on inefficient vehicles), 

labelling (standardised labelling indicating 

efficiency of cars in showrooms), removal 

of the oldest vehicles (rebate or ‘cash for 

clunkers’ schemes) and removal of fuel 

subsidies. 

GFEI supports countries in developing 

national fleet fuel economy baselines, 

and helps them set up national task 

forces, conduct cost-benefit analyses 

and develop and adopt policies that 

are often a mix of regulatory, financial 

and awareness measures. For example, 

in Mauritius recently a new taxation 

scheme has been introduced to promote 

more efficient vehicles. In Chile a new 

vehicle labelling scheme has been started, 

together with a vehicle carbon tax. 

Similar policies are under development 

in many other countries, including 

Indonesia, Kenya, Philippines, Vietnam, 

Ethiopia and Thailand. 

Many country projects include 

components for the introduction of 

zero and low emission vehicles, such as 

hybrid and electric vehicles. While it is 

"Many country projects 

include components for the 

introduction of zero and low 

emission vehicles, such as 

hybrid and electric vehicles." 

estimated that for the coming decade 

the major emissions reduction from 

the global fleet needs to be achieved 

through improving fuel efficiency, new 

technologies can help make further 

progress; this would go beyond levelling 

the emissions of the global fleet and start 

making an overall reduction. 

Support to the GFEI is provided 

by the European Union, the Global 

Environment Facility, the UN 

Environment Programme and the FIA 

Foundation, among others, to the tune 

of nearly US$9 million. 

SCALING UP 

The world is to invest US$400 trillion 

buying cars and the fuels to run them 

from now until 2050. That is 25 times 

the GDP of today’s EU. It is important 

that these vehicles will be added in 

countries that promote cleaner and more 

efficient vehicles. The objective of the 

GFEI is to do exactly that – support all 

countries in the world adopt a clean and 

efficient vehicles policy. 

The GFEI is monitoring trends at global 

and national level, creating awareness, and 

supporting regional and national action. 

At the moment close to 20 country 

programmes are being supported in 

Africa, Asia, Latin America, and Middle 

East that are developing fuel economy 

polices. A similar number have expressed 

interest to work with the GFEI. We are 

convinced that this will result in a critical 

mass and will see all countries worldwide 

adopt fuel economy policies. 

Rob de Jong is Head of the Transport 

Unit, Division of Technology, Industry and 

Economics, United Nations Environment 

Programme (UNEP). He is a Dutch national, 

holding degrees in environmental engineering 

and environmental policy. Rob has been 

working for UNEP for more than 19 years, 

in functions related to environmental policy 

development and the urban environment. He 

has headed the Transport Unit in UNEP for 

the last eight years. 

The Division of Technology, Industry and 

Economics in UNEP leads UNEP’s work in 

areas such as climate change, energy, resource 

efficiency, harmful substances and hazardous 

waste. This includes work on improving air 

quality and sustainable transport. 

www.globalfueleconomy.org 

Source: Max Ahman / UNEP 


CLIMATE STRATEGY: 

CHALLENGES AND ACTIONS 

By Martha Ruby Falla, Sustainability Director, Interconexión Eléctrica S.A. E.S.P. (ISA) 

"High voltage energy 

transport is an activity whose 

environmental impacts are 

highly manageable." 

ISA and its companies have declared 

their commitment to a framework of 

environmentally sustainable development, 

exercising responsibility for the impacts 

that their decisions or activities might 

cause to society and the environment. 

ISA’s ongoing planning takes account 

of its greenhouse gas inventory, and the 

contribution it makes to alleviating the 

consequences of climate change. The 

challenges of mitigation and adjustment 

are tackled through land management, 

as well as compensation for the carbon 

footprint. ISA manages its business with a 

focus on corporate sustainability. 

BUSINESS IMPACTS ON 

SUSTAINABILITY 

Environmental management is 

conducted in adherence to national 

standards, the international standard 

ISO 14000, and the frame of reference 

based on corporate ethics. This involves 

suppliers and contractors from the 

early stages, preparatory to offers and 

obtaining environmental licenses. 

We have fully identified the physical, 

biotic, economic and social aspects, in 

our mission to prevent, mitigate, control 

and offset impacts, through management 

plans derived from studies for each 

project. High voltage energy transport is 

an activity whose environmental impacts 

are highly manageable, at all stages of the 

life-cycle of the assets, as illustrated by 

the following points: 

Our activities are not extractive. 

98 per cent of solid waste materials are 

recycled as industrial surplus. Hazardous 

waste is separated at source, and 

disposed of by registered contractors. 

The design and layout of the lines is 

managed to have the least effect on 

waterways, flora and fauna. 

Electric and electromagnetic fields 

around transmission lines are 

managed to the highest international 

standards for the protection of people, 

environment and animals. 

Greenhouse gas emissions are managed 

through proper measurement and 

standardisation of process gas handling. 

We also contribute to climate change 

mitigation and adaptation through 

instruments such as the purchase of 

carbon credits to offset the footprint. 

Our processes do not draw directly on 

water and energy resources, since we 

have our own rationally planned systems. 

MANAGING THE CARBON 

FOOTPRINT 

In 2013, it became possible to arrange 

compensation for emissions made 

during 2012. Accordingly, ISA received 

a Carbon Neutral Certificate by the 

purchase of bonds from South Pole 

Carbon, a global leader in carbon 

offsetting. By compensating for its 

carbon footprint in energy transmission, 

ISA has assumed a new environmental 

and social commitment. 

The bonds purchased will be applied 

in the town of Acandí in Chocó, under 

the project of the Chocó–Darién 

Preservation Corridor, unique in the 

country and one of 34 in the world. In 

total, ISA offset 3,890 tonnes of CO 2 

equivalent during the year, by using 

112

REDD+ credits. The Darien region is 

one of the places with most biodiversity 

in the world. This project is developed by 

Community Council COCOMASUR 

and the company Anthrotect. 

These objectives are achieved by 

obtaining international standard seals 

such as the Verified Carbon Standard 

(VCS) governing voluntary carbon 

markets, and the Climate, Community 

and Biodiversity Standard (CCBS) that 

guarantees relevant benefits for climate 

protection, community development and 

biodiversity preservation. 

The social management of assets includes 

a contribution to climate change 

mitigation: activities were undertaken 

in 26 municipalities in 16 departments 

(Quindío, Atlántico, Santander, Valle, 

Bolivar, Norte de Santander, Tolima, 

Cauca, Caldas, Antioquia, Cordoba, 

Huila, Nariño, Magdalena, Sucre and 

Boyacá) in partnership with two entities. 

THE VENTURES 

COMPETITION 

INTERCOLOMBIA is cooperating 

with the Ventures Corporation to 

maintain an inter-platform facility 

with ample capacity to promote and 

enhance benefits and contribute to the 

social, environmental and economic 

sustainability of the environment where 

ISA operates. INTERCOLOMBIA has 

identified aspects, which should prevent, 

mitigate, monitor and compensate for 

impacts. 

In addition, ISA’s response to climate 

change goes beyond our business 

activities. Since 2011 ISA and now the 

new subsidiary INTERCOLOMBIA, 

have promoted a Special Award under 

the Ventures Competition to encourage 

entrepreneurs committed to efficiency 

energy. We hope that this platform will 

allow us to find innovative solutions 

to the effects of climate change on our 

processes of construction, operation and 

maintenance. 

PROTECTION OF 

ECOSYSTEMS 

The construction of transmission lines 

involves an environmental impact due to 

the removal of vegetation on both sides 

of the line. The company makes sure that 

the area remains clear to prevent any 

outage or damage to the line. 

To minimise impact during construction, 

routes with less environmental sensitivity 

are identified, and licensed after proper 

study of the environmental impact. 

Forestry compensation programmes 

mitigate the effects where it is impossible 

to avoid the removal of vegetation. 

THE SEARCH FOR 

EFFICIENCY 

ISA has implemented initiatives to 

identify the contributions to sustainability 

in terms of savings and efficiencies. 

In the case of initiatives to do with 

operating expenditure, the optimisation 

of the maintenance of lines shows the 

high potential of leverage between 

the search for technical and economic 

efficiencies and the decreased allocation 

and consumption of natural resources 

and generation of waste. 

Besides improving the efficiency of the 

life-cycle of the assets of lines by reducing 

maintenance costs, without affecting 

the quality of service and maintaining 

the integrity and safety of people, this 

initiative allowed us to reduce the 

frequency of servicing, thanks to the 

measures implemented under ‘reliabilityfocused 

maintenance’. In addition to 

reducing the maintenance cost per unit 

of line, environmental impacts associated 

with displacement, use of machinery and 

tools, power consumption and cutting 

of vegetation are significantly reduced. 

These improvements achieve greater 

eco-efficiency in one of the service’s 

most relevant activities. Identification 

and technical/economic analysis have 

been made more effective, reducing the 

need for checking on the ground by 

developing helicopter inspections and 

drone flights with high-tech cameras. 

www.isa.co 

"ISA’s response to climate 

change goes beyond our 

business activities." 


SUPPORT SERVICES FOR 

CLIMATE CHANGE MITIGATION 

AND ADAPTATION 

School of Engineering of the Universidad Nacional de Colombia 

The School of Engineering of the 

Universidad Nacional de Colombia has 

been working for more than 10 years 

in the climate change arena, planning 

and executing teaching, research 

and consulting activities, conducted 

by well-qualified faculty members 

of five departments: Chemical and 

Environmental Engineering, Civil and 

Agricultural Engineering, Electrical and 

Electronic Engineering, Mechanical and 

Mechatronic Engineering and Industrial 

and Systems Engineering. In this way, the 

School can offer services related to the 

climate change area, especially focused 

on the following specific subjects: 

Greenhouse gas (GHG) inventories 

in energy, industrial processes, solid 

waste, waste water treatment plants, 

agriculture, enteric fermentation and 

transport. 

Developments of factors of emission 

in the field of transport, engines, 

industrial processes, generation and 

managing of solid waste and waste 

water treatment, enteric fermentation 

and other agricultural practices. 

Mitigation of GHG emissions in 

such areas as efficient uses of energy, 

lighting, biofuels, utilisation of organic 

matter, adjustment of industrial 

processes, management technologies 

for sanitary landfills and waste water 

treatment plants, application of 

renewable energies such as wind, solar, 

tides and geothermal. 

Topics related to adaptability to 

climate change, in relation to civil 

construction, analysis of vulnerability 

and risk of the threat of sea level rise 

in coastal cities; effects of temperature 

increases on agricultural production; 

loss of biodiversity in fragile 

ecosystems such as wetlands and high 

plateau areas. 

Joint projects can be established by the 

research groups in epidemiology of 

the school of medicine, regarding the 

impact of climate change on vectorborne 

diseases such as dengue and 

malaria. 

The School of Engineering has seven 

doctoral, fourteen master’s and nine 

undergraduate programmes in which 

the focus is on training and research in 

climate change topics such as: 

Theoretical bases and local and 

global models of temperature, rainfall, 

radiation and other effects 

technology for GHG and air quality 

Hydrology and soil effects of climate 

change 

Industrially sustainable processes in 

relation to GHG generation 

Efficient use of energy, utilisation of 

biomass and application of renewable 

sources of energy. 

In recent years, advisory and consulting 

projects have been undertaken 

for such clients as the Colombian 

Ministry of Environment, Housing 

and Territorial Development; the 

Secretariat of Environment of Bogotá; 

the Administrative and Special Unit of 

Solid Waste (UAESP); the Government 

and Autonomous Regional Corporation 

of Cundinamarca; as well as international 

entities such as the United Nations and 

the World Bank. 

www.unal.edu.co 

Measurement and monitoring as 

well as development of measuring 

114


LANDSCAPE 

RESTORATION 

A WINNING 

STRATEGY IN A 

WARMER WORLD 

By Dr Andrew Steer, President and CEO of the World Resources Institute 

Estimates suggest that deforestation is responsible for between 12 and 20 per cent of global 

emissions. The various techniques of landscape restoration can reduce that significant 

percentage – and also improve the productivity and living conditions of the inhabitants of the 

restored landscapes. Examples from different parts of the world give confidence that much 

more can be done, if the international political will responds to this opportunity. 

Imagine that we have the chance to cut 

greenhouse gas emissions, boost household 

incomes and increase crop yields, while 

making vulnerable areas more resilient to 

severe weather and improving the lives 

of people in some of the world’s poorest 

regions. The fact is, we could do all this and 

more by restoring the world’s degraded 

landscapes to productive, sustainable use. 

As it stands today, deforestation accounts 

for as much as 20 per cent of the world’s 

greenhouse gas emissions and an even 

larger share in regions such as Latin 

America. Yet WRI’s research finds that over 

2 billion hectares of land – an area twice 

the size of Europe – have been degraded, 

making them ripe for restoration. 

There is only one catch, but it’s a big 

one: we need the international political 

will to make it happen. 

As climate negotiators and government 

officials gather for COP20, there is an 

opportunity to build the political will 

and momentum to make large-scale 

restoration a reality. 

LANDSCAPE RESTORATION 

AS PART OF A PARIS 

AGREEMENT 

Protection of forests and restoration of 

degraded lands should be a fundamental 

part of a strong, universal climate 

agreement to be finalised at the COP 

in Paris in 2015. Standing forests and 

other plant-rich landscapes store climatewarming 

carbon dioxide, keeping it out 

of the atmosphere, making forests an 

important component of both national 

and international efforts to curb global 

warming. Maintaining natural forests 

is only part of this plan; the other is 

restoring, managing and conserving 

degraded forest lands. 

To do this, the UN’s Reducing 

Emissions from Deforestation and Forest 

Degradation (REDD+) programme 

aims to put a financial value on the 

carbon stored in forests, giving incentives 

for developing countries to reduce 

emissions from forested lands and invest 

in low-carbon sustainable development. 

REDD+ goes beyond deforestation and 

forest degradation, and includes the role 

of conservation, sustainable management 

of forests and enhancement of forest 

carbon stocks. Restoration of forest lands 

– by wholesale replanting, by so-called 

‘mosaic’ replanting to pinpoint locations 

where trees can do the most good, or by 

moving agriculture and other industry 



"In each of these successful cases, political 

mobilisation has helped make the idea of 

landscape restoration a working policy." 

to areas that are already degraded while 

leaving current forests standing – does 

more than lock carbon away. It also 

fosters biodiversity, strengthens the food 

supply, provides fresh water and helps 

form healthy soils and reduce pollution 

in waterways. Restoration can also 

contribute to improved living standards 

and job creation for rural populations. 

In 2011, governments and stakeholders 

agreed on the Bonn Challenge, a 

commitment to restore 150 million 

hectares of degraded forest land by 2020. 

This climate-friendly change in land use 

will only last if it is part of sustainable 

economic growth that lifts people out of 

poverty, while restoring the biodiversity 

that fuels a healthy environment. 

We are well on the way to fulfilling the 

Bonn Challenge, but we can do more. 

The world could commit to restoring 

an additional 150 million hectares by 

2030. If we did that, it would put almost 

US$100 billion of increased income 

into the hands of poor people, creating a 

virtuous cascade of greater exports, more 

food security and higher amounts of 

carbon kept out of the atmosphere. 

Experience on the ground in disparate 

parts of the world shows how restoration 

has worked and what more needs to be 

done to make this a truly international 

movement. 

THE POIGNANT PERUVIAN 

CASE 

The market for some of Peru’s most 

exotic forest products, notably mahogany, 

puts pressure on forest-dwellers who 

have agreed to protect these old-growth 

tropical hardwood trees under the 

Convention on International Trade 

in Endangered Species (CITES). The 

historically forested central portion of 

Peru lost more than 1 million hectares 

of woodland between 2001 and 2012. 

More than 80 per cent of Peruvian 

mahogany is exported to the United 

States, suggesting that Peru is struggling 

to uphold the environmental and 

forestry obligations of its 2009 free 

trade agreement with the USA. This 

particularly poignant combination 

also means Peru is missing out on the 

environmental benefits of keeping their 

forests intact: natural water filtration, less 

soil erosion and greater biodiversity in 

one of the earth’s biodiversity hot spots. 

There is another way, growing in a 

billion back yards around the world: trees 

and other plants. Modern restoration is a 

sophisticated strategy that aims to engage 

policy-makers, business people, farmers 

and consumers for mutual benefit by 

working with the specific environments 

to plant what works for the local 

economy and ecosystem. 

Many countries face similar challenges 

and may have similar opportunities. In 

fact, the majority of Latin America’s 

greenhouse gas emissions come 

from land degradation and land use 

change. At the same time, the enabling 

conditions, including political will, 

capable institutions and clear economic 

benefits from restoration, may place 

the region at the forefront of global 

restoration efforts. 

116


THE COSTA RICAN EXAMPLE 

One good example of the restoration 

phenomenon is Costa Rica, which has 

built its economy by rebuilding its forests. 

In 1943, forests covered 3.9 million 

hectares, 77 per cent of the country’s 

land area. By 1986, forests had contracted 

to just over 2 million hectares or 40.7 

per cent, mostly owing to expanding 

agriculture and cattle grazing. With the 

forests gone, denuded hillsides threatened 

to accelerate sedimentation of hydropower 

reservoirs in a country where hydropower 

accounted for 80 per cent of electricity. 

From 1986 onwards, however, Costa Rica 

has pursued forest restoration through a 

combination of natural regeneration on 

abandoned pastures and active tree planting. 

By 2005, forest area had increased by 2.4 

million hectares to cover 48 per cent of 

the country, helping the establishment of 

nature-based tourism, a defining trait of the 

Costa Rican economy today. 

AFRICAN SUCCESSES 

Successes in several African countries 

demonstrate how effective landscape 

restoration can be. 

In southern Niger, an agroforestry 

practice called ‘farmer-managed natural 

regeneration’ has encouraged residents to 

let native trees and shrubs regrow from 

underground root systems that survived 

earlier cutting, or plant new trees amid 

crop fields. These woody plants have 

improved soil conditions, fertilising the 

surrounding ground and boosting crop 

yields, helping to bring this region back 

from the edge of desertification that 

threatened the area from the late 1960s 

through the 1980s. 

Since 1985, more than a million rural 

households in Niger have protected 

and managed trees across approximately 

5 million hectares, increasing food 

security and the amount and diversity of 

household incomes. In many cases, cereal 

yields per hectare doubled, with farmers 

producing 500,000 more tons of cereal 

per year than in the 1970s and 1980s, 

bringing greater food security to 2.5 

million people. The new trees also buffer 

climate extremes that can affect crops. 

Households that adopted farmermanaged 

natural regeneration had gross 

per capita income of US$167, compared 

to $122 for non-adopters. Extrapolating 

across the whole 5 million hectares 

in southern Niger means aggregate 

income benefits could reach $900 

million annually. 

This kind of farmer engagement has 

also proved effective in Ethiopia and 

Tanzania, where both countries built 

on existing natural infrastructure and 

traditional practice to bring back 

landscapes that had been ravaged by 

deforestation-induced drought. 

In some of the cases in African countries, 

there were snags. For example, in 

Ethiopia, even as farmers saw improved 

yields and the return of native plants, 

they did not find the financial rewards 

they expected from the purchase of 

carbon sequestration credits. Involving 

many stakeholders in the process proved 

complicated and expensive. However, 

that very involvement was essential to 

making it work. 

‘GRAIN FOR GREEN’ ON 

CHINA’S LOESS PLATEAU 

China used a different method to restore 

700,000 hectares of land in its Loess 

Plateau, south-west of Beijing. A massive 

World Bank-funded replanting effort from 

1999 to 2005 was aimed at improving 

degraded soils and vegetation, spurring 

food production and cleansing polluted 

waterways and air quality in distant cities. 

China’s ‘Grain for Green’ programme 

offered a payment for ecosystem services 

that engaged millions of rural households. 

As a result, more than 2.5 million people 

were lifted out of poverty, food supplies 

were secured, new land management 

practices yielded a 159 per cent increase 

in income over nine years in one 

watershed, and nearly 90,000 hectares of 

new farmland was created by terracing, 

according to World Bank figures. 

However, the benefits of restoration 

were not well understood by the local 

population, possibly because of the 

top-down nature of the project. The 

technical design came under scrutiny as 

well, in part because of questions about 

whether planting trees across this arid 

plateau could be sustained, especially as 

the region’s climate entered a warming, 

drying period. 

GETTING PAST THE 

RESTORATION TIPPING 

POINT 

In each of these successful cases, political 

mobilisation has helped make the idea of 

landscape restoration a working policy, 

while local engagement and followthrough 

were key elements in putting it 

into practice. 

The best estimates suggest deforestation 

is responsible for between 12 and 20 per 

cent of global emissions. That significant 

percentage of emissions could be 

reduced by practices that also quickly 

improve the lives of the people working 

and living in the restored landscapes. 

Government, business and local 

stakeholders can act in their own selfinterest 

to push past the restoration 

tipping point to make it a global reality. 

Dr Andrew Steer is the President and 

CEO of the World Resources Institute 

(WRI). He joined WRI from the World 

Bank, where he served as Special Envoy for 

Climate Change from 2010 - 2012. From 

2007 to 2010 he served as Director General 

at the UK Department of International 

Development (DFID) in London. Dr Steer 

serves on the Executive Board of the UN 

Secretary-General’s Sustainable Energy For 

All initiative and is Co-Chair of the World 

Economic Forum’s Global Agenda Council 

on Natural Capital. He was a long-time 

resident in South-east Asia, where he directed 

World Bank operations in Vietnam and 

Indonesia. He has a PhD in Economics, 

and has written widely on sustainable 

development issues. 

World Resources Institute (WRI) is a 

global research organisation that spans more 

than 50 countries, with offices in the Brazil, 

China, Europe, India, Indonesia, and the 

United States. Our more than 450 experts 

and staff work closely with leaders to turn 

big ideas into action to sustain our natural 

resources—the foundation of economic 

opportunity and human well-being 

(www.wri.org) 


POWER GENERATION FOR 

A SUSTAINABLE WORLD 

According to World Energy Outlook 

2014, the report published by the 

International Energy Agency, electricity 

is the fastest-growing final form of 

energy. It is also contributing to the 

reduction of fossil fuel use more than 

any other form of energy in the global 

energy matrix. Half of the newly 

installed power capacity through 2040 

will come from renewable energy 

technologies. In Latin America, the 

penetration of renewable technologies 

such as onshore wind farms and 

photovoltaic plants has trailed more 

developed parts of the world despite 

benefiting from more favourable 

meteorological conditions. However, 

over the last decade, the demand 

growth for electricity and the drop in 

equipment prices have spurred regional 

momentum and governmental policy 

support for such renewable forms of 

energy. Countries such as Brazil, Peru, 

Mexico and Uruguay have led the 

way in implementing market-driven 

programmes to promote the installation 

of renewable technologies. 

At ContourGlobal, we have successfully 

developed renewable power plants in 

two of the most dynamic electricity 

markets in the region – Brazil and 

Peru – with 712MW of wind farms 

and 37MW of small hydroelectric 

facilities. These projects represent 

our commitment to grow well, i.e. 

developing sustainable businesses 

that utilise resources efficiently to 

expand access to affordable energy in 

underserved markets. 

ENHANCING 

THE OPERATING 

ENVIRONMENT 

We recognise that being a 

leader in our industry gives us 

the unique ability to impact the 

regulatory and public policy 

environment for our entire 

sector. We are committed to: 

Promoting sector 

development by engaging 

local governments and 

regional power associations 

Advocating for sector reform 

priorities such as liberalisation 

and transparency 

"Half of the newly installed 

power capacity through 2040 

will come from renewable 

energy technologies." 

Working with government 

officials to increase 

effectiveness of power 

services 

Building capacity in emerging 

countries to provide 

specialised technical training 

Educating our communities 

on energy efficiency and 

power safety 

Establishing strategic 

partnerships with 

governments, development 

organisations and NGOs. 

INNOVATION AND 

EFFICIENCY 

We also seek opportunities in markets 

where renewable options may not 

make sense. In such markets we focus 

on improving energy efficiency and 

reducing environmental impacts 

while introducing operational best 

practices in the areas of health, 

safety and compliance. By deploying 

118

STRATEGIC SUCCESS 

FACTORS 

ContourGlobal’s success as a 

company depends on ensuring 

the best conditions for all 

operations. Here are our key 

commitments: 

"We are committed to 

implementing innovative 

technologies that minimise our 

environmental footprint." 

Providing a safe and healthy 

workplace that improves 

continuously through a 

rigorous audit programme 

Minimising our environmental 

impacts by complying with 

global best practices, and 

maximising innovation to 

decrease our local footprints 

‘next generation’ technologies in 

an innovative way, ContourGlobal 

is meeting the global demand for 

electricity ethically and sustainably. 

Since 2005, ContourGlobal has been building, 

owning, and operating power generation 

facilities around the world. We are committed 

to implementing innovative technologies that 

minimise our environmental footprint. We 

operate on four continents and in eighteen 

countries, with over 3,572MW of installed 

capacity in construction and operation. 

www.contourglobal.com 

Operating efficiently and 

reliably to meet capacity 

availability targets 

Developing and training 

operational teams through 

ongoing knowledge-sharing. 



THE FUTURE FOR 

FORESTS AFTER 

THE NEW YORK 

DECLARATION 

By Helen Clark, Administrator, United Nations Development 

Programme (UNDP) 

On the day of the UN Climate Summit in September 2014, we saw Forests take centre stage 

as one of eight ‘action areas’, each representing a crucial pillar in the fight against climate 

change. The Summit had the aim of galvanising action to reduce emissions, strengthening 

climate resilience, and mobilising political will. In the forests sector, leaders of countries, 

states, business, civil society and indigenous peoples have responded well, and now have the 

task of maintaining the momentum towards a meaningful legal agreement in 2015. 

As the world’s largest storehouse of 

carbon after the oceans, forests are a 

critical element of any strategy to address 

global climate change. They also provide 

a range of ecosystem services from 

harbouring biodiversity to regulating 

watersheds. Yet, despite these benefits, 

more than thirteen million hectares of 

forests are cleared annually, contributing 

some 20 per cent of global greenhouse 

gas emissions – or about 12 per cent 

when forest growth is accounted for. 

Current rates of deforestation and 

forest degradation threaten economic 

progress and human well-being. They are 

undermining food security, clean water 

availability, and the lives of the 1.6 billion 

people who depend on the health of the 

forests for their livelihoods. 

In early 2014, I was asked by the Secretary- 

General to facilitate the Forests action area 

for the Climate Summit, and was pleased to 

take on this challenge on behalf of UNDP 

and our UN-REDD programme partners, 

FAO and UNEP, and in partnership with 

the World Bank. Over the course of this 

year, with the help of many partners, we 

co-ordinated a global, multi-sectoral team 

of developing and developed countries, 

governors, companies, indigenous peoples 

and civil society organisations (CSOs) to 

catalyse major announcements for the 

Summit on reducing deforestation and 

increasing forest restoration. This was truly 

a team effort. 

"Current rates of 

deforestation and forest 

degradation threaten 

economic progress and 

human well-being." 

UNDP is pleased by the outcomes of 

the Climate Summit and the attention 

which it brought to bear on Forests. 

It is now widely recognised that the 

world cannot succeed in limiting climate 

change to under 2°C above preindustrial 

levels without effective action 

to protect and restore forests. 

The two major Forests events held 

during the Summit brought together 

120


UN Climate Summit Forests Action Area Plenary 

Source: UN Photo/Eskinder Debebe 

"Meeting the goals laid out in the 

Declaration would achieve emission 

reductions equivalent to removing all the cars 

currently on the world’s roads." 

more than 500 leading thinkers and 

actors. There was significant media 

coverage of the Forests announcements, 

with The Times (UK) calling the New 

York Declaration on Forests “the key 

outcome of [the] Climate Summit” (24 

September 2014). 

The Declaration has been endorsed to 

date by more than 170 entities, including 

developing and developed countries, 

states and provinces, major companies, 

indigenous leaders, and CSOs. New 

endorsers continue to sign on every 

week. Together, these entities – which 

include the European Union and the 

United States, major forest countries 

like Indonesia, and the Brazilian states 

of Amazonas, Acre and Amapá – have 

pledged to halve deforestation by 2020 

and end it by 2030, as well as to restore 

350 million hectares of forests – an 

area equivalent to the size of India. 

The Declaration also expresses crucial 

government buy-in for the private sector 

goal of eliminating deforestation from 

commodity supply chains by 2020. 

Meeting the goals laid out in the 

Declaration would achieve emission 

reductions equivalent to removing all the 

cars currently on the world’s roads. 

The Declaration is backed up by specific 

commitments to action including a 

supply chain revolution among major 

commodity traders; new commitments 

from forest countries to reduce 

deforestation or restore degraded lands; 

new bilateral and multilateral programmes 

to pay countries for reduced deforestation 

over the next six years; new procurement 

policies for several of the largest forest 

commodity importing countries; and a 

pledge by indigenous peoples to play their 

part in protecting hundreds of millions of 

hectares of tropical forests in the Amazon 

Basin, the Congo Basin, Indonesia and 

Mesoamerica. 

During 2014, it has become apparent 

that there are clear roles for all 

stakeholders in ending deforestation, 

and that it can be achieved. Developing 

forest countries need to implement and 

enforce land-use reforms to grow their 

economies without destroying their 



forests; the international community 

needs to deliver on its promise to 

include large scale economic incentives 

for reduced forest emissions in any new 

climate agreement; the private sector 

needs to eliminate deforestation from its 

supply chains; indigenous peoples must 

be empowered to continue to play the 

critical role which they have historically 

played in protecting forests; and CSOs 

can provide critical expertise and support 

to all of these actors, as well as keep us all 

accountable. 

The most powerful aspect of the 

Summit was the dialogue and spirit of 

co-operation between these diverse 

stakeholders. In the run-up to the 

Summit and on the day itself, it was 

encouraging to hear leaders from the 

different sectors lay out what they can 

bring to the table, and express clearly 

what they need in return in order to 

address deforestation. 

PRIVATE SECTOR RESPONSE 

Agriculture has been a major driver 

of tropical deforestation. The past year, 

however, has seen substantial progress 

as major global traders of palm oil, 

representing 60 per cent of the global 

trade, have adopted zero-deforestation 

policies. At the Summit a joint palm oil 

pledge was announced by the Indonesian 

Chamber of Commerce in partnership 

with major palm oil producers Golden 

Agri-Resources, Wilmar International 

and Cargill, covering all their operations 

as well as those of their suppliers. These 

companies committed to principles 

aimed at ensuring zero deforestation, 

protecting human rights, and promoting 

social development, and called on 

producer governments to codify all 

elements of their pledge in laws and 

enforce them. 

PROGRESS FOR NEXT YEAR 

According to Helen Clark, what 

needs to happen between now 

and 2015’s COP in Paris? 

Developing forest countries can 

put forward nationally-determined 

mitigation contributions which 

include ambitious goals and 

policies to reduce forest loss 

and increase reforestation. They 

could identify how much they 

can achieve unilaterally, as well 

as how much more they could do 

with international support. They 

should continue to enhance their 

implementation and enforcement 

of land-use reforms to grow their 

economies through decoupling 

deforestation from growth in 

agricultural output. This will take 

political will, and the international 

community needs to support these 

efforts. 

Advanced economies need to 

deliver large-scale economic 

incentives in the context of 

the new climate agreement. 

In particular, we need to see 

predictable, large-scale, and 

sustainable REDD+ payments for 

performance as part of the Paris 

deal, either as part of countries’ 

nationally-determined mitigation 

contributions, or through climate 

finance. If 2014 was the year 

when the private sector came 

forward in full force to tackle 

deforestation, 2015 should be the 

year when governments respond 

and deliver in full force on the 

promise of REDD+, which 

they have worked hard over the 

last seven years to design. The 

importance of this can hardly 

be overstated – the two degree 

warming limit is in the balance. 

The private sector must 

eliminate deforestation from 

its supply chains without delay. 

This will mean broadening 

the scope of progressive 

sustainability practices to cover 

other commodities, and to 

include more key companies in 

both developed and developing 

countries. This will also require 

governments of both developed 

and developing countries to 

create enabling environments 

for companies to achieve 

these goals, through policy 

and governance reforms, 

technical assistance and finance, 

and, critically, matching the 

supply chain commitments 

of the leading private sector 

companies. 

Indigenous peoples must be 

empowered to continue to play 

the vital role that they have 

historically played in protecting 

forests. That means we need 

to see governments formalise 

and protect their rights, and the 

private sector must respect their 

right to give or withhold free, 

prior and informed consent. We 

must see conflicts resolved in 

a manner consistent with good 

governance, equity and respect 

for human rights. 

This positive private sector engagement 

must be nurtured and encouraged. 

At the Summit, we heard very clearly 

from CEOs of major companies like 

Unilever, Cargill, Asia Pulp and Paper 

and Golden Agri-Resources how 

government policies in the forest 

countries where they operate and in 

the developed countries where many 

of their goods are consumed have a 

"Major global traders of 

palm oil, representing 60 per 

cent of the global trade, have 

adopted zero-deforestation 

policies." 

122


Panelists at the Forests Plenary, Left-Right: Teras Narang, Governor of Central Kalimantan; Edwin 

Vasquez, COICA, Kumi Naidoo, Greenpeace International; David MacLennan, CEO, Cargill, Franky 

Widjaja, CEO, Golden Agri-Resources; Paul Polman, CEO, Unilever 

Credit: Dearbhla Keegan, UNDP 

huge bearing on how far they can go to 

‘green’ their supply chains. 

We heard from these companies that 

they need the forest countries where 

they operate to enact land use reforms 

which shift agricultural expansion to 

non-forested lands; clarify overlapping 

forest concessions; improve transparency 

around concessions; and recognise and 

protect the customary land rights of 

communities and indigenous peoples. 

They also need forest countries to 

strengthen the enforcement of forest 

laws. Without regulatory reform, it will 

prove impossible for many companies to 

implement the no-deforestation policies 

they have announced. 

"This spirit of collaboration 

and partnership provides the 

strongest possible framework 

for continued progress." 

towards conservation. Critically, they 

called on the international community 

to deliver on their commitment to 

include large-scale economic incentives 

for REDD+ in the new climate 

agreement to be reached in Paris next 

year, to support the necessary regulatory 

changes in producer countries. 

products by no later than 2020...” This 

represents strong government buyin 

to this private sector goal by the 

35 countries that have endorsed the 

Declaration to date. 

MAJOR COUNTRY 

COMMITMENTS 

Companies also asserted that they need 

developed countries to create strong 

financial incentives for deforestationfree 

commodity production, through 

procurement and trade policies 

that favour sustainably produced 

commodities. Public policies have the 

power to alter the balance of financial 

incentives away from forest clearing and 

It is encouraging that the Summit 

did have clear and positive responses 

to these requests. The New York 

Declaration on Forests, for example, 

commits parties to “support and 

help meet the private sector goal of 

eliminating deforestation from the 

production of agricultural commodities 

such as palm oil, soy, paper and beef 

The announcements which developing 

and developed countries, as well as states 

and provinces, made at the Summit 

also demonstrated responsiveness to the 

needs of private sector actors who are 

committed to zero deforestation. 

Germany, Norway and the United 

Kingdom voiced their support for the 



"We must see conflicts 

resolved in a manner 

consistent with good 

governance, equity and 

respect for human rights." 

inclusion of REDD+ as part of a new 

global climate change agreement to 

enter into force by 2020. They also 

made a joint statement committing 

to scale up results-based finance 

for REDD+ emission reduction 

programmes, including funding for 

up to 20 major new programmes by 

2016. They also committed to work 

with other consumer countries to 

promote national commitments which 

encourage deforestation-free supply 

chains, including public procurement 

policies to source commodities such as 

palm oil, soy, beef and timber sustainably. 

This will place consumer countries in 

line with the consumer goods companies 

which are increasingly adopting zero 

deforestation sourcing policies. 

Liberia and Peru announced ambitious 

new policies to address deforestation, 

supported by US$150 million and 

$300 million partnerships with Norway 

and Germany respectively, focused 

on payments for verified emission 

reductions. The Governors’ Climate and 

Forests Task Force, a grouping of 26 

states and provinces covering a quarter 

of all tropical forests, committed, through 

the Rio Branco Declaration, to reduce 

deforestation in their jurisdictions by 80 

per cent, supported by large-scale resultsbased 

payments. 

We also heard of numerous countries 

preparing large-scale emission reduction 

programmes to receive results-based 

payments in accordance with the 

Warsaw REDD+ Framework adopted 

by the UNFCCC, through the Forest 

Carbon Partnership Facility’s Carbon 

Fund, the BioCarbon Fund, and bilateral 

arrangements such as the REDD Early 

Movers Programme. These efforts are 

being supported by the UN-REDD 

Programme, the FCPF Readiness Fund, 

the Forest Investment Program, and the 

Global Environment Facility. 

The Summit heard from indigenous 

peoples who play a key, yet 

underappreciated, role in protecting forests 

from advancing agricultural development. 

At the Summit, they were rightly 

recognised as key players and valuable 

allies in advancing the Forests agenda. 

Indigenous leaders also made requests of 

the international community, expressing 

a need for respect and reconstitution of 

ancestral territory; for financial support 

channelled to indigenous organisations; 

for respect for self-determination, and 

for obtaining binding free, prior and 

informed consent. 

Governments responded to these 

requests, by way of an announcement 

by Norway to provide US$100 million 

for indigenous peoples; and through 

a partnership agreement signed by 

Peru, Norway, and Germany which 

commits to titling five million hectares 

of indigenous lands, commits to 

including at least two million hectares 

of indigenous lands in payments for 

conservation performance, and sees 

Peru commit to respecting the right 

of indigenous communities to give or 

withhold their free, prior and informed 

consent. The Summit also saw seven 

Indonesian ministers signing an ‘Action 

Plan on Indigenous Lands’, to coordinate 

government implementation 

of a court ruling which will secure land 

rights to millions of indigenous peoples 

living on customary lands. 

Although much work remains to be 

done, it was inspiring to hear the strong 

expressions from these various sectors 

that they are both ready to act and 

ready to work together. This spirit of 

collaboration and partnership provides 

the strongest possible framework for 

continued progress. 

FUTURE ACTION 

At the Summit, France’s Climate Change 

Ambassador, Laurence Tubiana, described 

the strong coalition for forests and the 

New York Declaration on Forests it 

produced as a model for other sectors 

to follow and an essential and welcome 

contribution in the run up to the Paris 

climate change COP. 

The New York Declaration on Forests is 

a widely endorsed framework for future 

progress. We need now to increase the 

number of endorsements, and to ensure 

that the goals laid out in the Declaration 

are achieved and the commitments made 

at the Summit are followed through. 

The UN system is committed to 

continuing to advance the Forests 

agenda. At UNDP, we look forward 

to working with our UN partners, as 

well as with the powerful multi-sectoral 

coalition which came together for 

the Climate Summit, to build on this 

momentum, and carry forward this spirit 

of partnership and collaboration to Paris 

and beyond. 

Helen Clark has been the Administrator 

of UNDP since 2009, in which role she 

facilitated the Forests Action Area of the 

UN Climate Summit. She also chairs 

the United Nations Development Group. 

Previously, she served as Prime Minister 

of New Zealand, during which time she 

engaged in policy development and advocacy 

across the international, economic, social and 

cultural spheres, and advocated strongly for 

New Zealand’s comprehensive programme on 

sustainability and climate change. 

The United Nations Development 

Programme (UNDP) partners with people at 

all levels of society to help build nations that 

can withstand crisis, and drive and sustain the 

kind of growth that improves the quality of 

life for everyone. On the ground in more than 

170 countries and territories, UNDP offers 

global perspective and local insight to help 

empower lives and build resilient nations. 

124

BUILDING GLOBAL PARTNERSHIPS 

We unite all stakeholders from government, UN agencies, intergovernmental agencies, 

NGOs and the private sector by providing a platform for independent debate and 

knowledge exchange, and for establishing long-lasting partnerships. 

What we believe 

AIDF recognises the need to bring the current issues 

of disaster relief, food security and water security to 

the forefront of global, local, political, economic and 

social agendas. We believe that collaboration and 

partnership across regions and sectors are key for 

aid and sustainable development goals to be met. 

What we provide 

Our events and reports are produced based 

on contributions from world leading experts 

including FAO, UNEP, UNESCAP, WFP, ADB, 

GAIN, IRRI, UN-OCHA, World Vision, UNOPS, 

USAID, Red Cross, World Bank, Aidmatrix, CIPS 

and many others 

FOOD SECURITY 

DISASTER RELIEF 

WATER SECURITY 

www.aidforum.org 

@FollowAIDF | Join the conversation #AIDF

CLIMATE-KIC: 

HOW OPEN INNOVATION 

ADDRESSES CLIMATE CHANGE 

By Bertrand van Ee, Chief Executive Officer, Climate-KIC 

"A sustainable and resilient 

future demands innovation." 

Climate-KIC is Europe’s largest publicprivate 

innovation partnership focused 

on climate change. Our community 

consists of dynamic companies, the 

best academic institutions and the 

public sector working together across 

disciplines to provide innovative 

solutions addressing the challenge 

of climate change. We are one of 

the Knowledge and Innovation 

Communities (KICs) created by the 

European Institute of Innovation and 

Technology (EIT), an EU body whose 

mission is to support sustainable growth 

in Europe. 

OPEN INNOVATION 

KICs are bold EU experiments in 

open innovation. To meet the universal 

challenge of climate change, new types 

of collaboration across the public and 

private sectors is necessary to identify 

and generate opportunities for action. A 

sustainable and resilient future requires 

systemic integration across many areas. 

It is not merely about new technologies 

or inventions; it demands innovation in 

design, planning, land use management, 

resource efficiency, demand-supply 

integration and consumer choice. It 

requires policy frameworks to stimulate 

innovative private-sector investment and 

provide regulatory stability in the face of 

current economic and political volatility. 

Climate-KIC focuses on innovation 

for climate change mitigation and 

adaptation, to deliver green economic 

growth and stimulate a green economy. 

We catalyse our community and external 

stakeholders to collaborate within the 

three major components of change: ‘skills 

and training’, ‘sociotechnical innovation’ 

and ‘transition engineering’. 

KEY ACTIVITIES: 

EDUCATION, 

ENTREPRENEURSHIP AND 

INNOVATION 

Our three pillars – Education, 

Entrepreneurship and Innovation – are 

the support and driving force of our 

programme and activity development. We 

aim to deliver sustainable products and 

services for climate change mitigation 

and adaptation – with significant 

socioeconomic and climate impact. Our 

partners in Innovation develop new ideas 

and prototypes with significant climatepotential. 

Meanwhile in Entrepreneurship 

they play a crucial role in scaling up and 

deploying innovation onto the market. 

Climate-KIC supports start-ups entering 

into the market and securing significant 

working capital. In Education we create 

a future generation of climate innovators, 

focusing on scientific, technological 

excellence and entrepreneurial training: 

this ranges from our graduate school to 

educating leaders of the business and 

public sectors. 

COMMUNITY OF CHANGE 

AGENTS: PEOPLE AND 

PARTNERS 

The Climate-KIC community is a 

catalyst across geographies, sectors 

and activities. Our 250 partners come 

together at 12 European hubs. Climate- 

KIC’s unique collaborative publicprivate 

approach is a powerful tool 

in overcoming the impacts of climate 

change. Europe is a hotbed for climate 

change innovation. I am convinced that 

harnessing this creativity is essential to 

mitigate and adapt to climate change, 

and to shape the green economy. 

www.climate-kic.org 



MAINSTREAMING 

EMISSION 

REDUCTIONS 

ACROSS THE 

LANDSCAPE 

By Peter Holmgren, Director General, Center for International Forestry 

Research (CIFOR) 

As REDD+ has evolved and expanded, numerous opportunities, synergies and challenges 

have emerged, particularly with respect to tenure and financing. CIFOR’s on-going Global 

Comparative Study on REDD+ offers lessons for achieving the transformational change 

necessary to make the framework succeed. These are issues that transcend the forestry 

sector and resolving them demands coordination across multiple sectors and policy 

integration across multiple scales. 

Since its inception, REDD+, or 

Reducing Emissions from Deforestation 

and Forest Degradation, has evolved 

from a tool for climate change mitigation 

based on carbon storage into a complex, 

multifaceted framework operating across 

multiple governance levels. 

Its mission has similarly expanded to 

encompass a potential overload of 

objectives. The REDD+ Framework 

within the UNFCCC draws together 

human rights (with particular emphasis 

on the rights of indigenous peoples), 

biodiversity conservation, stronger 

governance in developing countries, 

and, most recently, acceptance of carbon 

and non-carbon benefits, alternative 

approaches and linkages with adaptation. 

Similarly, the finance discussion has moved 

beyond carbon markets and offsetting to 

include multiple sources of finance. 

As research from CIFOR’s Global 

Comparative Study on REDD+ 

shows, this evolution of REDD+ has 

generated a range of opportunities 

and synergistic approaches across these 

multiple objectives. At the same time, 

challenges for its implementation 

have emerged: close alliances between 

large-scale business and state sectors, 

without tackling the underlying causes 

of deforestation; the need for more 

certainty about finance; and significant 

and complex tenure issues. 

As REDD+ continues to evolve and move 

into the broader landscape, the evidence 

suggests that success will require reform 

beyond the forestry sector to include 

tenure and other aspects of governance. 

REDD+ practitioners will need to 

seize the opportunities and confront the 

challenges that arise as they integrate 

efforts across multiple scales and increase 

coordination across sectors and landscapes. 

THE NEED FOR CLARITY OF 

TENURE 

At the subnational level, REDD+ is 

unfolding in an environment where 

existing tenure regimes create challenges 

for its implementation. For REDD+ to 

succeed, it is necessary to identify not 

only those in the community who will 

hold the legal right to the anticipated 

stream of REDD+ benefits, but also 

those who will bear the responsibility 

128


for ensuring the completion of 

REDD+ activities. Moreover, REDD+ 

stakeholders – community members 

and proponents alike – may require 

enforceable rights of exclusion to protect 

REDD+ activities against outside claims, 

such as claims from those seeking to 

convert forests to non-forest uses. 

Yet assuring tenure clarity and security 

for local stakeholders is difficult in many 

tropical developing countries, because 

the state has formal ownership over vast 

areas of the forest estate and it often 

remains unclear what legally constitutes 

‘forests’ outside this estate. Furthermore, 

governments’ positions on customary 

claims and formalisation of access or 

ownership rights may not yet be aligned 

with efforts to establish a community 

forestry foundation for REDD+. These 

landscapes are also often characterised by 

power imbalances between large-scale 

agribusinesses and communities at the 

forest frontier. Under these conditions, 

many REDD+ proponents view tenure 

as their priority challenge, even more 

so than the (currently) disadvantageous 

economics of REDD+. 

If REDD+ is to fulfil its promise, 

proponents must develop an in-depth 

understanding of the landscape in 

which they are operating. They must 

understand the wider context of landuse 

planning around their sites, and 

the dynamics of unplanned migrations, 

spontaneous colonisation, appropriations 

and competing land claims, all of which 

might undermine their efforts. They 

must be fully apprised of the dynamics 

of developments not only in agriculture 

and forestry, but also in mining and 

infrastructure. They must also understand 

the elements of governance across scales 

that can either undermine them. 

BUILDING ON EXISTING 

POLICIES AND 

INSTITUTIONS 

In a national context, CIFOR’s Global 

Comparative Study on REDD+ has found 

that REDD+ processes move towards 

transformational change more rapidly in 

countries where related policy changes 

have already paved the way for them. 

For example, the impetus behind the 

"REDD+ processes move 

towards transformational 

change more rapidly in 

countries where related 

policy changes have already 

paved the way." 

marked drop in Brazil’s deforestation rate 

dates back to 2005, well before REDD+, 

with command-and-control policies and 

commodity-chain-focused interventions 

including livestock and soy boycotts. 

CIFOR’s analyses of successful REDD+ 

policies have identified the need for 

a combination of features within a 

country. First, countries that have already 

initiated changes to their institutions 

have made greater progress in designing 

REDD+, so long as the pressure on 

forest resources is high, or effective forest 

legislation, policy and governance are 

also in place. Second, a sense of national 

ownership and the presence of coalitions 

for transformational change are also 

important – but are effective only in an 

enabling institutional setting. 

At the same time, some of the more 

successful countries are working towards 

changing their national land management 

and tenure policies which can support the 

implementation of REDD+. 

For example, Brazil’s Rural 

Environmental Registry (CAR) requires 

that at least 80 per cent of private land 

be under forest cover (in accordance 

with the Brazilian Forest Code), and 

is a prerequisite to land titling through 

the national Terra Legal programme. For 

this reason, proponents in Brazil work 

closely with government as a key partner 

in promoting environmental compliance 

and clarifying tenure arrangements. 

Evidence shows, however, that the use of 

the registry alone has not led to reduced 

deforestation in the states of Pará and 

Mato Grosso, and implementation 

challenges for Terra Legal are yet to be 

fully overcome. 

Proponents in Indonesia employ 

functionally similar instruments to 

assist in enforcing rights of exclusion. 

Proponents are using the relatively new 

hutan desa (village forest) category of 

tenure to claim formal management 

rights for communities, thereby 

building a bulwark against counterclaims 

by oil palm concessionaires. 

Similarly, REDD+ proponents are using 

the Ecosystem Restoration Concession 

(ERC) to consolidate tenure rights over 

forests targeted for protection, over and 

against the plans of competing land 

uses. In both cases, however, proponents 

report that bureaucratic procedures 

remain a challenge. 

JURISDICTIONAL LESSONS 

Dozens of REDD+ initiatives are 

under way at the ‘jurisdictional’ scale, 

that is, across a formal governance unit 

such as a state, province, municipality 

or district. In theory, advantages of 

this approach are the leverage of state 

authority; coordination among branches 

of government and across sectors (e.g. 

agriculture, forestry, infrastructure, 

mining, social welfare) and scales (local 

to national levels); access to at least lowlevel 

operational funding; and greater 

potential to address leakage. 

Certifying organisations have taken 

note of these advantages. The Verified 

Carbon Standard (VCS) has developed 

a Jurisdictional and Nested REDD+ 

framework for accounting and 

crediting at national and subnational 

scales, and CCBA and CARE have 

created the REDD+ Social and 

Environmental Safeguards Initiative for 

jurisdictional REDD+ programmes 



that perform well in achieving social 

and biodiversity goals. 

Among the limitations of jurisdictional 

REDD+ is that, despite involving 

various sectors, it does not resolve the 

competing interests between them. 

Furthermore, it requires a large and 

durable source of funding – which 

usually exceeds state fiscal resources 

– and importantly, it is vulnerable 

to electoral politics, as a change in 

governorship can stall REDD+ progress. 

One example is Acre’s State System of 

Incentives for Environmental Services 

(SISA) in Brazil, widely seen as a global 

model of jurisdictional REDD+ and a 

leader in bottom-up innovation for lowemissions 

rural development. Unique for 

having piloted VCS in a jurisdictional 

REDD+ framework, SISA has strongly 

influenced other Amazonian states. An 

on-going challenge for SISA is its search 

for funding alternatives to its heavy 

reliance on international donations, as it 

is not yet able to rely on the marketing 

of forest carbon offsets. 

Another example is the Governors’ 

Climate and Forest Task Force (GCF), 

a global network of 26 member states 

across 7 countries (www.gcftaskforce. 

org). The GCF is a pioneer of 

jurisdictional REDD+ and provides 

a forum for communication and 

coordination among its members. The 

Rio Branco Declaration of August 

2014 commits GCF member states and 

provinces to an 80 per cent reduction 

in deforestation by 2020, with support 

from the international community in 

the form of performance-based funding. 

The Declaration also commits the 

governors to allocate a substantial share 

of the stream of economic benefits to 

forest-dependent communities and 

indigenous peoples. 

PRIVATE CORPORATE 

SECTOR COMMITMENTS 

Private sector corporations are making 

moves to remove deforestation from 

commodity value chains. Globalised 

trade and investment in agricultural 

commodities such as palm oil, beef, 

soya, pulp and paper, and rubber have 

"Financing has always 

been one of the most 

controversial issues in 

UNFCCC negotiations." 

grown significantly over the past two 

decades, resulting in continued high rates 

of deforestation in many developing 

countries. At the same time, consumer 

countries have become increasingly 

aware of the impacts of imported food, 

non-food commodities and manufactured 

goods on tropical deforestation. 

One commodity in particular – palm 

oil – has been subject to heavy criticism 

by advocacy NGOs over the past 

decade because of links to deforestation. 

Persistent pressure and social media 

coverage by organisations such as 

Greenpeace, WWF and the Forest Peoples 

Programme have been instrumental in 

shaping growing consumer demand 

for sustainably produced commodities. 

After initial pledges by a small number 

of companies (notably Nestlé, Golden 

Agri-Resources, Wilmar, Hersheys and 

Unilever) during 2011–2013, 2014 

has witnessed a surge in corporate 

commitments to zero deforestation in 

palm oil supply chains, and increasingly 

with regard to other commodities. For 

example, Cargill has extended its initial 

commitment to a ‘No Deforestation, 

No Peat and No Exploitation’ policy 

in palm oil production and sourcing 

to all commodities with effect from 24 

September 2014. This groundswell of 

corporate engagement is manifest in the 

number of signatories (40) to the recent 

New York Declaration on Forests Action 

Statements and Action Plans. 

Global and regional scrutiny of 

corporate practice in agri-business 

contributed to the establishment of the 

Roundtable on Sustainable Palm Oil in 

2004 (other multi-stakeholder platforms 

have followed with regard to soy and 

biofuels, among others), the Norwegian 

Sovereign Wealth Fund decision to 

divest from 23 palm oil companies 

in 2013, a suspension in 2012 of 

lending to the palm oil sector by the 

International Finance Corporation, and 

changes in lending practices by both 

banks and investors. 

FINANCING SUSTAINABLE 

LANDSCAPES 

Financing – particularly transfers of 

funds and technology from developed 

to developing countries – has always 

been one of the most controversial 

issues in UNFCCC negotiations. The 

unofficial consensus is that developed 

countries must mobilise US$100 billion 

in climate finance each year by 2020. 

The anticipated recipient of these funds 

is the Green Climate Fund, which seeks 

to secure between US$10 billion and 15 

billion by the end of 2014. 

By comparison, domestic and 

international subsidies for fossil fuels 

totalled more than US$500 billion 

globally in 2011, and remain a key 

obstacle to investing in low-carbon and 

climate-resilient economies. 

To date, climate change mitigation 

efforts (including REDD+) have 

received the bulk of the funding – an 

estimated US$350 billion (both public 

and private sector finance) compared 

with just US$14 billion for adaptation. 

As a result of this imbalance, adaptation 

has become more prominent in 

UNFCCC negotiations over the new 

climate agreement. 

Furthermore, a recent global analysis of 

115 REDD+ demonstration projects 

reveals a concentration of finance 

in large emerging and resource-rich 

countries. For example, 19 of the 30 

projects in Asia – covering a total area 

of almost 10.5 million hectares – are 

in Indonesia, one of eight countries 

targeted in the region. 

130


Meeting the target of US$100 billion 

a year will require a transformation in 

the scale and pace of public and private 

sector financing for both mitigation 

and adaptation, as well as broader, more 

complex transitions to low-carbon 

economies. New ways of packaging and 

delivering finance are necessary if the 

funds are to reach the rural and urban 

poor. The OECD, for example, specifies 

the need “to use limited public finance 

to target areas where private funding 

will not be available or sufficient, e.g. 

adaptation and REDD+”. 

REDD+ financing delivered through 

the creation of a new asset class has yet 

to materialise, however. The promise 

of performance-based funding plays 

a positive role in achieving REDD+ 

when it is applied in countries that lead 

the process themselves and have strong 

national ownership. Where the sense 

of ownership is low – where donors 

are leading the process – the promise 

of performance-based foreign financial 

funds appears to be irrelevant. 

The private sector is expected to fill 

the gap in climate change financing. 

Other benefits of engaging the private 

sector lie in the potential to harness its 

technical capacity for achieving climate 

change mitigation and adaptation and to 

mobilise larger investments in sustainable 

landscapes. 

However, the current global financial 

system is not designed to service rural 

economies in developing countries. 

Rural producers face major agricultural 

risks in the form of natural disasters 

(extreme weather events and disease) 

and in production, technology, financing, 

laws and policy, and price volatility 

(inputs and outputs). These risks 

potentially decrease producers’ income 

through their negative impacts on 

yield, price, assets and livelihoods, thus 

increasing the probability of default. 

The compound problems of insecure 

land rights and a lack of collateral make 

agricultural, agroforestry and forestry 

loans in developing countries high-risk 

investments. 

CONCLUSION 

REDD+ has the potential to play a 

significant role in achieving sustainable 

development and climate change 

mitigation and adaptation. However, 

its success depends on first achieving 

transformational change, namely major 

shifts in discourses, power relations 

and economic incentives for the value 

of standing forests. Resolving these 

issues requires coordination and policy 

integration across multiple sectors and 

scales. 

REDD+ proponents’ perception of 

tenure as their priority challenge should 

be taken seriously, as should the need for 

REDD+ proponents to understand the 

landscape in which they are operating, 

as REDD+ activities take place within 

a context of broader development 

objectives. 

As countries move towards 

implementation, the emergence of 

jurisdictional REDD+ initiatives is 

encouraging, given the associated 

advantages of coordination among 

branches of government, across sectors 

and across scales. Countries could 

benefit greatly from the finding that 

REDD+ processes will move towards 

transformational change more rapidly 

when relevant policy pathways and legal 

frameworks are already in place. The 

"Recent commitments from 

the private sector represent 

an important first step along 

the long and winding road to 

sustainability." 

multitude of international initiatives 

and the continued development of the 

REDD+ effort appear to be paying off 

in commitments and actions on a range 

of levels. 

Nevertheless, financing remains 

problematic. Governments, donors 

and non-governmental and research 

organisations still have much to learn 

about working with corporate actors 

(including institutional investors), and 

about identifying ways to encourage 

private investments in what are still often 

perceived as ‘high-risk and low-income’ 

emerging markets. 

Recent commitments from the 

private sector represent an important 

first step along the long and winding 

road to sustainability. The governance 

contexts in each country where such 

commodities are produced and/or 

sourced will significantly influence the 

extent to which companies can translate 

their pledges into tangible actions. 

Furthermore, it remains unclear how 

much – and how quickly – corporate 

actors will be able to instigate changes 

in their production systems and supply 

chains, and ultimately be in a position 

to provide credible and independent 

evidence of progress. Reaching that 

stage includes mediating unresolved 

land conflicts between companies and 

communities. 

Peter Holmgren became CIFOR’s Director 

General on September 10, 2012. Prior 

to CIFOR, Holmgren led the Climate, 

Energy and Tenure division at the Food and 

Agriculture Organization (FAO) of the 

United Nations, developing the profile and 

coordination of FAO’s climate change work 

and contributions of FAO to the UNFCCC 

process. He also took the lead in setting up 

the UN-REDD programme and coordinated 

FAO’s preparations for Rio+20. 

The Center for International Forestry 

Research (CIFOR) is a non-profit, 

scientific facility that conducts research on 

the most pressing challenges of forest and 

landscapes management around the world. 

Headquartered in Bogor, Indonesia CIFOR 

has offices in 8 countries across Asia, Latin 

America and Africa, and works in more than 

30 countries. 


6 th Annual 

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Enabling public-private sector collaboration and bringing 

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Join global leaders for the principal business forum alongside 

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COP21 will be the stage where multilateral negotiations between all UNFCCC member states will take 

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Now and once the agreement is in place, how will countries around the world ensure they are 

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The Sustainable Innovation Forum 2015 will convene 500 attendees over two days, to facilitate and 

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