In the last hours of the last day of COP 21 – December 12, 2016 – the PARIS AGREEMENT was born. In effect this was a compilation of individual countries statements of what they are ready to do in order to decrease their GHG emissions in the hope that the sum-total of these promises will somehow limit the warming of the planet by only 2 degrees or even by only 1.5 degrees. Everybody understood that the sum total of the promises in those papers does not suffice to achieve the stated goals. Nevertheless, the so called agreement was indeed a great achievement as it puts a limit to work of 24 years since the 1992 first Rio Conference on Sustainable Development.
French President Francois Holland – via his Prime Minister Laurent Fabius let the raucous diplomats know that lights will be closed at the set time for the Conference end and thus got them to terminate the debate and declare that what they had was an agreement.
Very well – this ends the introductory effort to tackle the problem of global warming that causes climate change, and now we are free to start putting flesh on these bare bones that came out of the Paris negotiation rooms.
With the end of the conference, the French leadership was passed to the French Minister of the Environment Mme Segolene Royale as from now it will be viewed as a technical problem to be addressed by more technical people – not by fighting politicians as ib was perceived in the past. The main issue is now how to involve private financing in order to achieve the goals and targets that were set up in the Paris meeting.
Also the UN mechanisms that were set up are not needed anymore. In effect much of the personnel will eventually be let go and instead new mechanisms established – the verification mechanisms to see if the countries live up to what they voluntarily promised to do – and perhaps could be induced to do more as what they promised is still a far cry from what is needed.
The UN’s top climate diplomat, Christiana Figueres, has said she would not accept an extension of her appointment which finishes this summer – she will leave her post in July.
Looking to the future – others move into the breach, and only two months after Paris we just had an interesting international meeting in Vienna on finding financial routes to start implementing some of the things that were left without an indication of follow up procedure.
The meeting was held under the leadership of Kommunalkredit Public Consulting attached to a bank that deals with the Austrian Foreign Aid programs as operated by the Life Ministry and other government offices with experience of working with private enterprises active overseas.
The first day dealt with policy, but much more important in our opinion was the second day that was built around two sessions “LEVERAGING PRIVATE FINANCE FOR CLIMATE CHANGE MITIGATION AND ADAPTATION.”
Twenty years of providing foreign aid did really nothing to help reduce the impact of climate change and now the foreign aid spigots have dried up. On the other hand, it has become clear that doing the right things for the environment is actually good business – so the way is to provide inducements that activate private enterprise. Investors can be found also in developing countries to participate with outside investors.
The Day was started by Tobias Grimm from Munich Reinsurance Co. who is a Senior Project Manager for Geo Risks – read losses from tings like Climate Change. They provide money for immediate recovery from extreme events.
He was followed by Angelika Frei-Oldenburg from the German European Bank GIZ Gmbh (Deutsche Gesellschaft fuer Internationale Zusammenarbeit). The Germans have joint projects in Morocco, Bsangladesh, Central America and Rwanda.
They deal with the opening of a path for private money going into adaptation projects and openly acknowledged thatthey have more questions then answers. This led me to summarize the topic as follows:
“WE HAVE OPPORTUNITY RATHER THEN RISK WHEN WORKING WITH ADAPTATION – THE IDEA IS TO BE DIFFERENT FROM BUSINESS AS USUAL.”
GIZ thinks of the need to create new products or to reallocate resources – the search is for how to bundle theideas and look at efficiencies in adaptation measures. As an example she told us bout a medium size Moroccan fishery tht suffered from loss of fishing stock and was moved to look at a recycling facility.
Felicity Spors, Sr. Carbon Finance Specialist at the Climate and Carbon Finance Unit of the World Bank Group, is working currently on Methane and Climate Change Mitigation and a Pilot Auction Facility. This as a new tool to get investments in private auctions.
Martin Berg from the European Investment Bank in Luxemburg looks at blending Capital markets with public funds.
His product could be Green Bonds. He was talking of markets that could move to 12.6 Billion Euro – 104 projects in 41 countries.
Adrien Couton from Dalberg Advisers Cosultancy working with MSME (Micro, Small, and Medium Companies) that he clusters in groups. He was previously Chief Executive Officer of Naandi Water, the largest … Sanitation and Agriculture portfolios and as a consultant for the World Bank’s Water.
Clemens Ploechl who works now on Crowd Funding to Combat Climate Change. He ges many small funds via te internet in order to bundle these funds abd achieve an important goal. We understand that most people do not expect rurn on their money and eventually are happy to write them off if the important good cause was helped indeed.