UNEP Launches
Year Book 2008 at its 10th Special Session
of the Governing Council/Global Ministerial
Environment Forum in Monaco 20-22 February
Monaco, 20 February 2008-An emerging Green
Economy is glimpsed in the latest United
Nations Environment Programme's (UNEP) Year
Book as growing numbers of companies embrace
environmental policies and investors pump
hundreds of billions of dollars into cleaner
and renewable energies.
Climate change, as documented
in the Year Book, is increasingly changing
the global environment from the melting
of permafrost and glaciers to extreme weather
events.
But it is also beginning
to change the mind-sets, policies and actions
of corporate heads, financiers and entrepreneurs
as well as leaders of organized labour,
governments and the United Nations itself.
Increasingly, combating climate change is
being perceived as an opportunity rather
than a burden and a path to a new kind of
prosperity as opposed to a brake on profits
and employment, the new report shows.
The UNEP Year Book 2008
says the emerging green economy is also
driving invention, innovation and the imagination
of engineers on a scale perhaps not witnessed
since the industrial revolution of more
than two centuries ago.
It includes the growing
interest in novel 'geo-engineering' projects
such as giant carbon dioxide (C02) collectors
that absorb greenhouse gases from the air
rather like trees do during photosynthesis.
"Based on technology
used in fish tank filters and developed
by scientists from Colombia University's
Earth Institute, this method called 'air
capture'.can collect the C02 at the location
of the ideal geological deposits for storage,"
says the report.
Meanwhile scientists
in Iceland and elsewhere are looking at
injecting C02 into that country's abundant
basalt rocks where it is claimed the pollutant
reacts to form inert limestone.
Similar "sequestration
rocks" exist in geological formations
across much of the world and may provide
a safe and long term disposal option for
the main greenhouse gas emissions.
Elsewhere, scientists
are helping to unravel both the uncertainties
and the opportunities posed by the enormous
quantities of methane trapped in the sea
bed and in arctic permafrost.
As a greenhouse gas
methane is 25 times more potent than CO2
so the possibility of dramatic increases
in methane emissions from these deposits
is a global warming 'wildcard' - a growing
source of concern.
At the same time methane
hydrates are a potentially large stockpile
of clean-burning fuel, if ways can be found
of mining them safely and economically.
Despite a great deal
of activity and action, formidable challenges
remain if all these fledgling transformations
are to be sustained and embedded in the
global economy over the coming years and
decades.
Barriers include subsidies
that favour fossil fuels over cleaner energies;
tariff and trade regimes that make cleaner
technologies more expensive and the risk-averse
lending patterns of banks and other financial
institutions when it comes to solar and
wind power loans for poorer communities,
the new report says.
The Year Book's findings
were presented today at the opening of the
largest gathering of environment ministers
since the climate convention meeting in
Indonesia late last year which gave birth
to the Bali Road Map.
The Road Map is the
climate negotiation agreement scheduled
to be completed by the climate convention
meeting in Copenhagen in 2009 in order to
deliver a post 2012 climate regime.
The ministers, joined
by senior figures from the worlds of business,
organized labour, science and civil society,
are attending UNEP's Governing Council/Global
Ministerial Environment Forum under the
theme "Mobilizing Finance for the Climate
Challenge".
Achim Steiner, UN Under-Secretary
General and UNEP Executive Director, said:
"Hundreds of billions of dollars are
now flowing into renewable and clean energy
technologies and trillions more dollars
are waiting in the wings looking to governments
for a new and decisive climate regime post
2012 alongside the creative market mechanisms
necessary to achieve this."
"Formidable hurdles
remain as to whether these funds will ultimately
seek out new, climate-friendly investments
for the future or whether they will seek
the lowest common denominator by flowing
into the polluting technologies of the past,"
he said.
"Designing an attractive,
creative and equitable investment landscape
which rewards those willing to invest in
tomorrow's economy today is the challenge
before ministers here in Monaco and the
challenge for the international community
over the next two years in the run up to
Copenhagen," said Mr Steiner.
"However I am optimistic
that we can shift gears to a Green Economy.
If humans can go to the Moon; submarines
sent under the Arctic; liver and heart transplants
perfected; the mysteries of the human genome
deciphered and tiny nano-machines designed
then managing a transition to a low carbon
society must be within humanity's grasp
and intellect," he added.
Some Key Findings
The findings here are based on the UNEP
Year Book 2008 with some additional supporting
facts and figures from documents prepared
by UNEP for the GC/GMEF
Responsible Investing Takes Off
The UNEP Year Book, an annual report requested
by ministers, underlines some of the elements
of a Green Economy which are already falling
into place.
Corporate Social Responsibility
(CSR) reporting including environmental
concerns is now found among corporations
in over 90 countries with the number of
such statements mushrooming from virtually
zero in the early 11000s to well over 2,000
now.
. The Investor Network
on Climate Change, launched in November
2003, now has some 50 institutional investors
with assets of over $3 trillion.
. The Principles for
Responsible Investment, jointly facilitated
by UNEP's Finance Initiative and the UN
Global Compact in 2006, now has 275 institutions
with $13 trillion of assets.
Many companies now perceive
that 'going' Green also improves their bottom
line. The Year Book 2008 underlines a study
by the investment bank Goldman Sachs.
A survey of companies
in six sectors-ranging from mining and energy
to food and media-indicates that those with
pioneering environmental, social and governance
strategies are out-performing the general
stock market by 25 per cent.
Over 70 per cent out-perform
their peers in similar sectors, the Year
Book 2008 notes.
Meanwhile a survey of
some 150 companies with CSR strategies in
the United States as well as France, Germany
and the United Kingdom underlines corporations'
growing environmental priorities.
Cutting greenhouse gas
emissions and boosting energy efficiency
ranked number one among 54 per cent of those
questioned followed by recycling, 52 per
cent and waste reduction, 27 per cent.
Bottom of the list are
'making shipping and transport more efficient
and eco-friendly, eight per cent; environmental
education and research, seven per cent and
supporting employees use of alternative
transportation, six per cent.
Industrial Emission
Reductions Remain Mixed
Meanwhile, some of the globe's most carbon-intensive
industries are leading the way in publicly
disclosing their carbon footprint under
an eight year-old initiative called the
Carbon Disclosure Project.
Disclosure is seen as
one powerful route towards companies taking
responsibility and acting to reduce their
emissions.
The Project, aimed also
at empowering shareholders to better understand
the current and future economic risks facing
the companies they support, estimates that:-
. Close to 80 per cent of the Financial
Times 500 corporations are disclosing their
carbon performance.
. Over three quarters of those who are disclosing
such information are now also implementing
greenhouse gas reductions via direct emissions
reductions or via the emerging carbon markets.
This is up from nearly half the year before.
Interestingly the highest
rate of achievement in terms of carbon disclosure
is among the carbon-intensive industries
such as metals, mining and steel sectors
alongside oil and gas and the power sector.
However the Year Book
2008 indicates that despite these promising
steps, more needs to be achieved.
A survey by Innovest, a research company
whose findings are in the report, shows
that some sectors are making in-roads into
greenhouse gas emissions.
These include electric
power companies in North America; international
automobile manufacturers and metals and
mining companies.
But other sectors appear
to be either treading water or seeing emissions
continue to rise including oil and gas and
chemicals.
Carbon Markets
The best known carbon markets are those
established under the Kyoto Protocol of
the UN Framework Convention on Climate Change
(UNFCCC).
These include International
Emissions Trading; Joint Implementation
and the Clean Development Mechanism (CDM).
The CDM allows industrialized
countries to offset some of their domestic
emissions via cleaner and renewable energy
schemes alongside afforestation and reforestation
projects in developing countries.
As of November 2007,
over 850 projects had been registered in
close to 50 countries worth just over $1
billion in what are known as certified emission
reductions.
A further $1.4 billion
are in the pipeline and the CDM could, if
fully exploited eventually trigger investment
flows for some $100 billion from North to
South.
A recent survey of the
CDM, published in the Year Book, indicates
that close to 30 per cent of such projects
are currently aimed at tackling the refrigerant
by-product HFC-23 followed by:-
. Reductions in the nitrous oxide gas adipic
acid, 10 per cent
. Waste methane from landfills into electricity,
11 per cent
. Biomass fuels, seven per cent
. Wind power, installation of combined gas
turbines and hydro-power six per cent each
. Emissions reductions from oil-fields and
coal mining, four per cent each.
The Year Book also chronicles the rise of
voluntary emission reduction markets such
as the Chicago Climate Exchange and the
Over the Counter offsets.
The Chicago exchange now has over 330 companies,
cities, states and other participants despite
the decision of the United States not to
ratify the Kyoto Protocol. And while it
is deemed a voluntary exchange, those involved
are required to sign legally-binding contracts.
Since 2003, the volume of carbon traded
has risen from zero to around 20 million
tonnes of carbon dioxide equivalent by 2006.
The exchange is also involved in a wider
suite of offsets when compared with the
formal Kyoto-inspired markets.
For example, participants
in the Chicago exchange can invest in reducing
emissions from livestock and animal wastes
including biogas; agricultural soil carbon
sequestration and grass planting; urban
tree planting and forest conservation projects.
The voluntary Over the
Counter offsets market is also evolving
after suffering a measure of criticism and
concern that some projects were flawed,
counter-productive or even environmentally
and socially-damaging.
"Schemes are emerging
to guarantee to purchasers that carbon offsets
represent genuine emission reductions, without
harmful environmental side effects,"
says the Year Book.
The Voluntary Carbon
Standard was introduced in November 2007
and is endorsed by the International Organization
for Standards under its ISO 14064 and ISO
14065 series.
The latest figures indicates
that the total voluntary carbon market was,
in 2006, worth around $90 million with most
projects in North America and dominated
by forestry schemes, followed by Asia where
the lion's share of projects are for renewable
energies.
This compares with close
to $30 billion from the formal Kyoto markets
and mechanisms in the same year.
Payments for Ecosystem Services
The formal and voluntary carbon markets
are triggering new market mechanisms for
including the carbon removing value of forests
alongside other benefits such as water management,
biodiversity conservation and the preservation
of traditional livelihoods.
Some countries and communities
are already pursuing these multiple goals
under the voluntary markets by finding buyers
interested in more than just carbon.
The Year Book cites
the case of the Grupo Ecologico Sierra Gorda
and the organization Bosque Sustentable
of Mexico. In 2006, they completed a sale
of land to the United Nations Foundation
which was keen to reduce its carbon footprint
via a project that will also alleviate poverty.
A similar sale is the
final stages to the World Land Trust, a
UK-based organization who will be selling
the Sierra Gorda Carbon and Environmental
Offsets to a range of European buyers.
These developments are
also underlined by a project funded by the
Government of the Netherlands in Tanzania
called Kyoto: Think Global, Act Local.
The project has involved
training people on hand-held Geographic
Information Systems in order to assist local
forest communities estimate the amount of
carbon being sequestered by their trees.
Each village forest
was found to be sequestering 1,300 tonnes
of carbon per year-equivalent to an income
of $6,500 per village per year at the then
prevailing market price for carbon.
By bundling in the added
value of water and biodiversity conservation,
the actual incomes could be even higher.
The chance to realize
such incomes is becoming a growing possibility.
Late last year, the World Bank announced
the Forest Carbon Partnership Facility to
conserve standing forests and to begin avoiding
the estimated 20 per cent of global greenhouse
gas emissions from deforestation.
A further development
emerged at the Bali climate convention in
December 2007 when Norway announced $2.7
billion of funding for Reduced Emissions
from Deforestation and Degradation (REDD).
Adapting Insurance to
Vulnerability
Creative market mechanisms are also emerging
to try and deal with adaptation to climate
change.
Extreme weather events
are on the rise and are likely to become
more prevalent in a climate constrained
world. Yet many of those at risk have little
access to formal insurance markets.
The Year Book cites
a new study by Munich Re, one of the world's
leading re-insurance companies. This estimates
that cover for catastrophic events such
as hurricanes and storm surges, is virtually
non-existent for billions of people in Africa,
Asia and Latin America and the Caribbean.
"Of the 2.5 billion
people world-wide who have less than two
dollars a day at their disposal, it has
been estimated that only ten million are
able to purchase insurance," says the
report.
Some developments are underway however including
micro-insurance. In Africa, pilot projects
that pay out to farmers when rainfall drops
below a key threshold, are being tested.
. For example the UN's
World Food Programme have partnered with
the re-insurer AXA to develop weather derivatives
that pay out to Ethiopian farmers in the
event of severe drought.
. Swiss Re, a member
of the UNEP Finance Initiative, has launched
a Climate Adaptation Development Programme
to provide financial protection to up to
400,000 people in 10 countries in Africa
from drought.
The UNEP Year Book 2008
concludes that "for new developments
to reach the scale and scope that is needed,
governments must play a stronger stimulation
and facilitation role".
Some of the measures that governments might
wish to consider include
Subsidies
. Removing fossil fuel subsidies could reduce
C02 emissions by five to six per cent annually.
Currently, fossil fuel subsidies amount
up to $200 billion a year versus support
for low-carbon technologies of an estimated
$33 billion annually.
Research and Development (R+D)
. Boosting research and development. The
International Energy Agency estimates that
R+D for low emission innovations such as
renewables and energy savings declined by
50 per cent between 1980 and 2004.
. In order to achieve a C02 stabilization
target of 550 parts per million, support
for innovation needs to rise from just over
$30 billion to $90 billion by 2015 and to
$160 billion by 2025 according to some experts.
Energy Savings
. Increase global targets for energy efficiency
improvements to 2.5 per cent annually.
. These should be supported by policies
including stronger energy savings building
codes for new and existing structures; penalties
or disincentives for builders to choose
the cheapest, least energy efficient designs,
materials and gadgets; policies that promote
mass transit especially rail and international
minimum performance standards for industrial
and household appliances.
. Other measures include the promotion of
utility pricing that favours energy efficiency;
promotes combined heat and power and improves
energy savings in existing power plants
and electricity transmission infrastructure.
Renewables
. Policies that increase the uptake of renewables
may include 'feed-in laws' that guarantee
a fixed price for each unit of renewable
electricity generated; regulations that
boost access to the Grid; incentives for
second generation biofuels and ones that
address other barriers including resource
mapping-UNEP/GEF's Solar and Wind Energy
Resource Assessment is a good example of
the latter.
. Government agencies and donors need to
develop and deploy new forms of 'end-user'
credit schemes to assist consumers to purchase
climate mitigation technologies and systems.
. New approaches are needed to assist small
to medium-sized enterprises innovate including
enterprise development services and seed
capital.
. Attention needs to be paid to new financial
and regulatory solutions that address the
lack of local currency financing in least
developed economies-this is effectively
shutting out such economies from low C02
emitting infrastructure developments.
. Harnessing the 'green procurement' potential
of local authorities through financial incentives
that stimulate voluntary low carbon investments.
Adaptation
. Public investments are needed to mobilize
finance for adaptation given that market
mechanisms are in their infancy.
. Other actions for adaptation include regulations
to limit the vulnerability of new investments
and infrastructure such as bans on building
in flood prone areas and new, labour intensive,
programme to 'climate proof' rural areas
that improve resilience of local populations;
address poverty; boost incomes and increase
the skills base.
Notes to Editors
The 10th Special Session of UNEP's Governing
Council/Global Ministerial Environment Forum
will take place between 20 and 22 February
in Monaco. http://www.unep.org/gc/gcss-x/
The theme is Globalization and the Environment-Mobilizing
Finance to Meet the Climate Challenge.
The UNEP Year Book 2008 can be found at
www.unep.org
It can be purchased at Earthprint www.earthprint.com
and is available in all six official UN
languages (Arabic, Chinese, English, French,
Russian and Spanish)
This press release is also based on a UNEP
report to ministers that can be found under
Official Documents http://www.unep.org/gc/gcss-x/info_docs.asp
The meeting will be preceded on 19 February
by the 9th Global Civil Society Forum http://www.unep.org/civil_society/GCSF/indexGCSF9.asp
Monaco, the Host Country's web site is at
http://www.unep2008.gouv.mc/pnue/wwwnew.nsf/HomeGb
Media are welcome to attend the GC/GMEF.
Three press conferences are currently scheduled
20 February-Findings from the UNEP Year
Book 2008 and Findings from Green Jobs Initiative
21 February-Launch of a new Climate Neutrality
Initiative involving Countries, Corporations
and Cities
22 February-Launch of a New Report on the
Threats Climate Change Pose to the World's
Fisheries and Oceans
Side events-Nine news-worthy and informative
side-events are scheduled
20 February
1- High-level Roundtable on Climate Change
and Trade (World Trade Organisation and
UNEP)
2- UNEP Scientific Initiatives: Atmospheric
Brown Cloud and Agricultural Assessment.
3- UNEP experience in designing financial
mechanism for climate change mitigation.
22 February
1- Launch of the Global Strategy for Follow
up to The Millennium Ecosystem Assessment
2- Harnessing GEF catalytic financing for
advancing global environmental issues.
3- Supporting Local Authorities - combining
the event "Financing for the sustainable
building sector" with "The UN,
regions and local authorities: a new alliance
in response to Climate Change"
Friday 22 February
1- Green Jobs
2- Oceans, Coasts and Climate Change (with
the UN Foundation)
3- Private - Public bank Dialogue "UNEP
Finance Initiative".
For More Information Please Contact Nick
Nuttall, UNEP Spokesperson and Head of Media
+ More
Ninth Session of the Global Civil Society
Forum Convenes in Monaco
On 19 February 2008, the Ninth Session of
the Global Civil Society Forum will convene
in the Principality of Monaco. This Forum
precedes the 10th Special Session of the
UNEP Governing Council/ Global Ministerial
Environment Forum (GCSS.X/GMEF) which will
take place from 20 to 22 February 2008.
The objective of the GCSF is to provide
a platform for exchange and consultation
among civil society on key environmental
issues to be addressed by the Member States
during the GC/GMEF, and to facilitate Major
Groups' contribution to the GC/GMEF and
other international environmental forums.
The provisional agenda for this event is:
• Engaging at the GCSS.X/GMEF
• Adoption of the "Guidelines for improving
the Global Civil Society Forum Cycle"
• Dialogue with Mr. Achim Steiner, Executive
Director of UNEP
• Globalization and the environment, mobilizing
finances to meet the climate challenge
• Panel discussion on the UNEP Medium Term
Strategy 2010-2013
In addition to the above, the Major Groups
and Stakeholders Branch is organizing a
special event to discuss the draft report
on "Green Jobs: Towards Sustainable
Work in a Low-Carbon World" to be held
on Friday 22 February 2008 from 13.30 to
14.30 at the Van Dongen Room, Grimaldi Forum.
 |
A special meeting room
- The Greenroom - is reserved for the participating
civil society and major groups' organizations
during the GCSF and the GC/GMEF from Tuesday
19 to Friday 22 February 2008. The Greenroom
events taking place in the Espace Le Guelfe,
Grimaldi Forum range from press events,
to presentations on Action on Climate Change;
the Framework for a Post 2012 Agreement
on Climate Change: A Post Bali Perspective;
the Role of Civil Society in the GEF; Human
Rights and Climate Change: A Gender Perspective
to training sessions such as Capacity Building
for Civil Society in Lobbying at MEAs. Please
see also: http://www.unep.org/civil_society/GCSF9/greenroom.asp
In the process leading to GCSS.X/GMEF, and
as per the rule 69 of the rules of procedures
of the UNEP Governing Council, civil society
organizations accredited to UNEP receive
the unedited working documents of the UNEP
Governing Council sessions at the same time
as the Committee of the Permanent Representatives
(CPR), for their review and comments. This
consultation with civil society prior to
the Governing Council provides an opportunity
for civil society to contribute to the discussions
on the above mentioned thematic and policy
issues.
