Climate change is one of the most critical issues facing business and society. Both the science and the economics are clear:
we must act now, or pay a greater price later.
Business knows that it must be part of the solution, and is already developing new and innovative ideas, products and processes to cut emissions and create a more resilient economy. And we also know that in tackling the climate challenge there is a huge prize to be won, with the global green market
But for companies to act, they need the certainty, confidence and opportunity to do so. And they need to know that we are all in this together. This is why getting the right global climate change deal in Paris is so important. In 2009, expectations for a successor to the
GLOBAL ACTION ON CLIMATE CHANGE IS BUSINESS CRITICAL
Taking action to address climate change is an economic and social imperative. The overwhelming scientific consensus is that man-made climate change is happening, and it must be tackled. But climate change is a global challenge, requiring a global solution – no single nation can solve it alone. In working collectively, the right climate action can stimulate investment, growth and innovation across the globe.
A GLOBAL DEAL MUST PUT US ON THE RIGHT PATH TOWARDS GREEN GROWTH
Business is central to tackling our climate challenge, but for it to deliver effectively, it requires a clear direction of travel. A global deal can support this at national levels, creating the right conditions for investment, trade and competitiveness. In other words, a successful deal
in Paris should:
• Achieve a robust legal framework for
• Provide a basis for the implementation and expansion of carbon pricing
• Facilitate the flow of finance and innovation
MOMENTUM MUST BE MAINTAINED TO SECURE A LASTING DEAL
Already, nations are demonstrating that they are willing to find ways to cut emissions, while businesses are also pressing ahead with actions to improve their efficiency and sustainability. It is crucial that we build on this momentum to bring more to the table. Once we have achieved a deal in Paris, efforts must continue to implement and enforce the necessary action.
Kyoto Protocol were high, but world leaders came back from the negotiations in Copenhagen empty-handed. This time around, all parties are going in with their eyes wide open, but this must not mean dampened ambition. Indeed, the momentum is there – Europe has committed to ambitious emissions cut, while both the US and China have agreed to take action. This must be maintained. If Paris is about what nations can bring to the table, we need to see a race to the top.
With the climate conference in Lima behind us, we now have the best opportunity in years to lay the foundation for a global deal that will create the right climate for growth and ensure a sustainable future for the next generation. We must grasp it with both hands.
This paper argues that:
1. Commit to making ambitious and equitable national pledges which are legally binding in either international or national legislation, with a mechanism by which they can be reviewed and upgraded.
2. Commit to developing a framework for comparing national targets, with a common regime of monitoring, reporting and verification.
3. Demonstrate commitment to enabling carbon pricing schemes, ideally with Parties committing to providing a roadmap
4. Provide a framework to assess and accredit carbon pricing schemes, and promote the use of comparable monitoring, reporting and verification systems, with a view to enabling markets to link up.
5. Commit to scaling up climate finance funds and mechanisms, with a specific goal of leveraging private finance (by reducing project risks), and simplifying and consolidating the funding landscape.
6. Commit to supporting innovation at home and developing a framework to share technological innovation between countries, while protecting the intellectual property rights of companies.