ICC Meeting With Head of UNEP Discusses Private Sector Approaches to Resource Efficiency

The International Chamber of Commerce (ICC) and the UN Environment Programme (UNEP) held a “Sustainable Resource Management: Business Opportunities and Economic Potential” meeting in Paris last week with 120 policymakers, industry leaders, and scientists to discuss the economic potential of resource efficiency and its role in putting the world on a more sustainable development track in line with the Sustainable Development Goals, and recommendations of last year’s UN Environmental Assembly (UNEA).

This was the first major international business meeting with UNEP’s new leader, Erik Solheim, formerly head of the OECD’s Development Assistance Committee. The Sustainable Resource Management meeting was organized as part of UNEP’s on-going dialogue with business on environmental sustainability. In his opening remarks at the event, Solheim emphasized that “practical solutions will happen in business.”

USCIB was represented at the meeting by Mike Michener, CropLife International, who serves as one of two elected business and industry representatives on UNEP’s Major Groups Facilitating Committee (MGFC), along with Norine Kennedy, USCIB’s vice president for energy and environment.

Will COP22 Mark the Beginning or the End of the Paris Climate Agreement?

Norine Kennedy at COP22
USCIB Vice President Norine Kennedy at COP22 in Marrakesh

The first part of the UN climate talks that wrapped up last week in Marrakesh, Morocco coincided with the U.S. presidential election. According to Norine Kennedy, USCIB’s vice president for energy and environment, who was in Marrakesh for the duration, Donald Trump’s election as the next U.S. president delivered a jolt to negotiators, who suddenly were faced with the prospect of a possible U.S. pullout from the historic Paris Climate Agreement agreed last December. But negotiators rallied around the agreement, which entered into force earlier this month, presenting a challenge to the new U.S. administration come January 20.

As COP22 – the 22nd Conference of Parties to the UN Framework Convention on Climate Change – was coming to a close, Kennedy presented on business perspectives on implementing the Paris Agreement and the role of business in nationally determined contributions (NDCs) at an official COP22 side-event on November 18. The side-event was organized by the Major Economies Business Forum (BizMEF), of which USCIB is a member. Kennedy participated on a panel with other experts and representatives from the U.S. Chamber of Commerce, the Turkish business association Tüsiad, the Austrian Federal Economic Chamber, Confederation of Swedish Enterprise, Japan’s business group Keidanren, and the Global CCS Institute.

USCIB actively works with the Major Economies Business Forum (BizMEF), developing global business recommendations on the top-line issues that matter to U.S. business. Just one week prior to the official COP22 side-event, USCIB, through BizMEF, partnered with Morocco’s preeminent business group, General Confederation of Moroccan Enterprises (CGEM) to hold a Business Dialogue with government and UNFCCC secretariat representatives. This Dialogue brought together over seventy participants from business, governments, and UN agencies and was a crucial platform for Kennedy to present USCIB’s report on NDC’s.

Kennedy has represented USCIB and its members in UN climate deliberations since 1993. The common thread for USCIB, she said, has always been the importance of U.S. business as solution providers and the need to have U.S. economic interests represented and furthered in international decision-making on climate change. “The climate challenge is itself a long-term phenomenon that impacts regulations and energy access in all countries where U.S. companies operate, and which will also offer new market and innovation opportunities for U.S. business,” she said. USCIB intends to provide continuity and thought leadership on climate policy in the broader context of sustainability, to the administration of President-elect Trump and to future administrations. “We intend to help U.S. government decision makers and the UN system to develop policy frameworks that best address climate change while also facilitating cross-border trade, investment and innovation by U.S. companies,” noted Kennedy.

The Paris Agreement is not a finished product – the broad outlines and goals are indeed established, but key details on a number of critical issues to business, such as the role of various national and regional carbon markets, the tracking and updating of national pledges, and how technology innovation and potential liability for climate-related damages might be tackled are still works in progress. There is still an essential role for U.S. business to stay in touch with our government delegation to offer views and suggestions on thorny issues, and provide examples and other relevant information on business initiatives.

The next two years will bring multiple fast-moving – by UN standards – decision-making deliberations across a number of key issues, and USCIB will continue to track those that most directly impact our members. USCIB will focus on ways to carve out a clear role for business input and representation in the process. Kennedy emphasized: “We consider it fundamental, at both the national and international levels, for policy makers to consult with business on the economic and environmental aspects of climate policies. There is no doubt that the Paris Agreement will affect every business sector, across all types of commercial activity, in both the near and the long terms. So preserving and improving the UN system’s accountability and transparency, and creating new opportunities for the private sector to contribute, this is USCIB’s bottom line.”

CLICK to download new BizMEF statements on the role of business in the UN climate talks, implementing the Paris Agreement, national reporting and verification and greenhouse gas markets.

Workshop Highlights Need for Business Input to Implement UN Climate Agreement

marrakechLeading business organizations met in Marrakesh, Morocco on the margins of the UN’S COP22 climate meetings, to address the next steps under the Paris Climate Agreement, specifically the prospects for injecting business expertise and technical advice into the agreement’s implementation at the national and global levels. Convened by USCIB, in cooperation with the Major Economies Business Forum (BizMEF) and the Moroccan business federation CGEM, the Marrakesh Business Dialogue brought together over 70 government, business and UN representatives at the Universite Privé de Marrakesh.

Topics under discussion included where national pledges to reduce greenhouse gas emissions could be delivered more cost effectively, and where business could provide necessary information to international reviews of progress under the Paris Agreement. Previous USCIB-organized BizMEF Dialogue meetings in Doha, Warsaw and Lima provided important thought leadership and input to the UN process, en route to finalizing the far-reaching treaty agreed last year.

“The Paris Agreement’s entry into force earlier this month increases the urgency to engage business in all aspects of the Paris Agreement, including its implementation,” according to USCIB Vice President Norine Kennedy, who is spearheading USCIB’s representation in Marrakesh.

Opening the meeting, Said Mouline, the Moroccan official responsible for public-private partnerships for COP22, stated that “business engagement is needed for capacity building and technology transfer.” In the course of the dialogue, participants talked about defining entry points in the Paris Agreement for representative business organizations that would contribute to transparency in reporting, reviewing national progress and informing future national pledges.

Business and government representatives agreed that both have a lot to gain from working together on the NDCs, improving transparency and measurement, verification and verification (MRV) systems, and seeking to maintain continuity and resilience of the pledges made. This cooperation will need to long term and ongoing, through the five-year cycles that are at the heart of the infrastructure of the Paris Agreement.

USCIB’s Kennedy presented a recently completed report, Business Engagement in Domestic and International Implementation of the Paris Agreement. This first-of-its-kind report offers case studies from BizMEF partner organizations and recommends a recognized business interface to be developed as part of the Paris Agreement institutional infrastructure.

“USCIB’s consistent message has been that enhancing business engagement is not just a matter of innovative governance and partnership, but also a prerequisite for successful and cost-effective implementation of climate policy,” stated Kennedy. She said such engagement should build on existing entities such as the Green Climate Fund, the Technology Executive Committee, and the Climate Technology Center and Network, and should work in synergy with the Global Action Agenda and NAZCA Platform. “The structure can be similar to other existing successful examples of business consultation and dialogue in inter-governmental forums,” such as the OECD and the Strategic Approach to International Chemicals Management, she said.

Kennedy added: “It is the business community that will do much of the implementation that is needed to reach the goals under the Paris Agreement, and USCIB has set enhancing recognized business consultation as a priority in its post-Paris climate advocacy.”

Kennedy stated that it is only with broader, more substantive and inclusive business engagement that the Paris Agreement can meet its potential. “This is more than a “nice-to-have,” she said. “It is essential to further the evolution at needed speed and scale to a lower carbon and sustainable global economy.”

BizMEF, of which USCIB is a founding member, is a partnership of leading multi-sectoral business organizations from over 25 major economies that provides responsible business views and practical input to inform deliberations in the United Nations Framework Convention on Climate Change (UNFCCC).

As Paris Agreement Enters Into Force, What’s Next on Climate?

kennedy_cop21
USCIB Vice President Norine Kennedy at last year’s Paris climate summit

The Paris Climate Agreement entered into force on November 4, as a critical mass of countries and regions deposited their instruments of ratification with the United Nations. But this marks more of a beginning than an end, since national governments and the UN system still must determine future steps in greenhouse gas reduction and measures to adapt to climate change. As COP22 – the 22nd Conference of Parties to the UN Framework Convention on Climate Change – got under way in Marrakesh, Morocco, we spoke with Norine Kennedy, USCIB’s vice president for energy and environment and a longtime participant in the UN climate talks, about the importance of the Paris Agreement’s entry in to force, and about what comes next.

Q. Why should U.S. business be interested in the post-Paris discussions in the UN?  Isn’t the ink dry and the rules set?

A.  In fact, the Paris Agreement is not a finished product – the broad outlines and goals are indeed established, but key details on a number of critical issues to business, such as the role of various national and regional carbon markets, the tracking and updating of national pledges, and how technology innovation and potential liability for climate-related damages might be tackled are still works in progress. There is still an essential role for U.S. business to stay in touch with our government delegation to offer views and suggestions on thorny issues, and provide examples and other relevant information on business initiatives.

Q. What does Paris Agreement’s entry into force mean for the private sector?

A. While it’s usually accurate to characterize the UN as a slow-moving beast, in this instance the quick entry into force of the Paris Agreement triggers a rapid scramble by governments to resolve outstanding issues and define important rules that govern new policies, and the review of national actions, and drive the development of even more ambitious actions. The next two years will bring multiple fast-moving – by UN standards – decision-making deliberations across a number of key issues, and USCIB will continue to track those that most directly impact our members. Through our affiliations with the International Chamber of Commerce (ICC) and the Major Economies Business Forum (BizMEF), we are developing global business recommendations on the top-line issues that matter to U.S. business. This is important, because it means that USCIB recommendations are amplified to other governments, and strengthened by alignment with the broader international business community.

[CLICK to download new BizMEF statements on the role of business in the UN climate talks, implementing the Paris Agreement, national reporting and verification and greenhouse gas markets.]

Q. What are USCIB’s priorities when it comes to some of the unfinished business from last year’s climate summit in Paris?

A. As the structure of UN initiatives under the Paris Agreement take shape, USCIB is focused on ways to carve out a clear role for business input and representation in the process. We consider it fundamental, at both the national and international levels, for policy makers to consult with business on the economic and environmental aspects of climate policies. There is no doubt that the Paris Agreement will affect every business sector, across all types of commercial activity, in both the near and the long terms. So preserving and improving the UN system’s accountability and transparency, and creating new opportunities for the private sector to contribute, this is USCIB’s bottom line. This is especially important as some other UN forums, such as the World Health Organization, are actively seeking to limit or exclude business input. As we have said on many occasions, if a UN climate agreement doesn’t work for business, it simply won’t work.

Q. Any thoughts about the U.S. presidential election and its implications for the UN climate process?

USCIB has represented its members in the UN climate deliberations since 1993, which is to say, over the course of several U.S. administrations. They have each been different, and USCIB has adjusted accordingly while staying the course. The common thread for USCIB has always been the importance of U.S. business as solution providers and the need to have U.S. economic interests represented and furthered in international decision-making on climate change, regardless of who is in the White House or in control on Capitol Hill. The climate challenge is itself a long-term phenomenon that impacts regulations and energy access in all countries where U.S. companies operate, and which will also offer new market and innovation opportunities for U.S. business. USCIB intends to provide continuity and thought leadership on climate policy in the broader context of sustainability, to the next administration and to future administrations. We intend to help U.S. government decision makers and the UN system to develop policy frameworks that best address climate change while also facilitating cross-border trade, investment and innovation by U.S. companies.

Business Involvement Essential to Address Climate Change

forest_greenAt the meeting of OECD Environment Ministers in Paris, business shared views on how to address major environmental challenges related to climate change and the transition to a circular economy. Taking place one year after the UN Special Summit on Sustainable Development and the Paris climate change conference, the high-level meeting offered an important opportunity to identify concrete areas of implementation to achieve tangible progress in these vital areas.

“Moving from words to action is critical, bearing in mind that green growth is not about curbing growth, but about making the two concepts mutually supportive,” said Russel Mills, Chair of the BIAC Environment and Energy Committee, who led the business delegation at the Ministerial meeting. Business must be recognized as an important provider of solutions and can make its contributions most effectively within a transparent and predictable policy framework that encourages market-based options and incentives. Concrete opportunities for partnerships must be encouraged at the international, national and local levels.

Business at OECD reiterated its support for further OECD work aiming to support climate measures at the lowest cost to society and to promote a supportive policy environment for innovation and investment across different sectors.

Business Highlights Opportunities to Strengthen Paris Agreement

ParisWorkshopLast week, business, government, OECD and UNFCCC representatives attended a first of its kind workshop at the OECD to share experiences and explore next steps to enhance the role of business in the preparation, review and improvement of national pledges for the Paris Agreement.  Organized by BIAC and the Major Economies Business Forum (BizMEF),  the workshop included presentations of pro-active business dialogue and cooperation with national and regional governments from representatives of BusinessEurope, CNI, Keidanren, and MEDEF.

Opening the meeting, Russel Mills, Dow Chemical, Chairman of BIAC’s Environment and Energy Committee, stated that “in today’s increasingly inter-linked economies more in-depth cooperation between governments and business is essential to build the best models to most effectively tackle our major climate change challenges.” Over the course of the workshop, representatives of the UNFCCC and its Paris Agreement and implementation bodies presented their perspectives on where business could support action and inform technical discussions leading up to entry into force of the Paris Agreement and the development of rules for tracking progress of national actions.

Norine Kennedy, USCIB, presented a discussion paper, Business Engagement in Domestic and International Implementation of the Paris Agreement: Institutional Infrastructure for Nationally Determined Contributions (NDCs) and the UN FrameworkConvention on Climate Change (UNFCCC) , prepared by USCIB for BizMEF.  The discussion paper offers case studies drawn from a BizMEF survey of its partner organizations and recommends a recognized business interface to be developed as part of the Paris Agreement institutional infrastructure.  This unique report offered to UNFCCC by leading national and regional representative business groups will be further elaborated and presented in final form at a BizMEF side event during the next climate meetings in Marrakesh in November.

BIAC representatives also attended the OECD Global Forum on Climate Change this week.  BIAC’s ongoing policy work to advise OECD member states highlights the necessity of innovative technologies and investments that will support and scale up mitigation, adaptation and resilience.  In his closing comments, Mills reminded the Workshop that when “business identifies the most cost effective options for climate policy, this helps governments and society tackle climate challenges faster and cheaper.”

To read the current discussion draft, click here. We will keep you informed of further developments.

Roundtable on Business Engagement in the Paris Climate Agreement and INDCs

forest_greenThe Business and Industry Advisory Committee (BIAC) to the OECD welcomed the successful conclusion of COP 21 in Paris last December and underlined the importance of active business involvement in the implementation of the agreement. On September 12, the Major Economies Business Forum (BizMEF) in cooperation with BIAC will organize a roundtable on Business Engagement in Intended Nationally Determined Contributions (INDCs), or country pledges, and the Paris Agreement, back-to-back with the bi-annual OECD/IEA Climate Change Expert Group Meeting in Paris.

Over the past year, major business organizations have shared their experiences consulting with national governments in the preparation of initial INDCs and contributed to a survey prepared by USCIB. Participants from business, governments, academia and international institutions will discuss results and lessons learned as well as ways that business can contribute to the new five-year cycles of domestic and international processes to take stock of global implications and to renew and review INDCs. Discussions will benefit from the unique insights business has into the implications of the portfolio of INDCs for their operations, and investments, and for supply and value chains in the globalized economy.

Business Calls on Governments to Ratify the Paris Agreement

Business&Climate_DanilovichThe second Business & Climate Summit – convened by a network of partners that represent over 6 million businesses worldwide – called for swifter government action on climate and the ratification of the Paris Agreement without further delay.

UK Secretary of State for Energy & Climate Change Amber Rudd MP addressed the Summit  reaffirming UK leadership on action against climate change despite the vote to leave the European Union.

“Climate change has not been downgraded as a threat,” she said. “It remains one of the most serious long term risks to our economic and national security […] as investors and businesses, you can be confident we remain committed to building a secure, affordable low carbon infrastructure fit for the 21st Century.”

The Business & Climate Summit – the annual gathering of leading global businesses and political leaders dedicated to climate action – met over two days (28-29 June) at London’s Guildhall, in the heart of the world’s leading international financial center, to address how business can, and should, continue to play a proactive role in reducing emissions and building a climate-resilient economy. Those already leading the way are putting climate action at the heart of their business strategy and reaping the economic benefits of doing so.

Achieving the goals of the Paris Agreement will require a major shift in investment away from traditional fossil fuel based energy intensive goods and services towards smarter, cleaner low carbon business models. To ensure that the objective of keeping global temperature increases well below 2°C remains possible and can be done in a way that minimizes economic disruption, this shift will have to happen immediately.

Following his role as Coordinator of the COP21 Business Dialogue, Gerard Mestrallet, Chairman, Paris EUROPLACE, Chairman, ENGIE, returned to this year’s Summit and said: “The first priority, I think, is setting carbon price signals everywhere, at levels that reflect the objectives Parties seek to achieve according to their National policies, or Regional policies, as for example for the EU ETS in Europe.”

The final day of the Summit, under the theme Finance, Innovation and Policy for The Low Carbon Transition, looked at the scale of action needed. It is estimated that $90 trillion needs to be invested globally in cities, land use and energy infrastructure – doubling current global annual infrastructure investment – between now and 2030 to help secure a low carbon, climate resilient economy.

Governments were urged to translate their ‘Nationally Determined Contributions’ into investment grade policy frameworks as soon as possible and to use carbon pricing as the most efficient way of achieving emission reduction targets.

Discussing low carbon finance and investment, Stuart Gulliver, Group Chief Executive Officer of HSBC, said: “Six months on from Paris we are much closer to being able to implement the terms of COP21 than we were at the start. The barriers to investment are lower, the call to action is louder and there is a clear willingness on the part of business and investors to change their ways and adapt their business models. Investors want to invest in sustainable projects and reduce the carbon footprint of their portfolios. With better standardisation, enhanced disclosure rules and better incentives for issuing green bonds, the COP21 goals can be met, but we must continue to work in unison and at pace with the public sector.”

Business recognizes that, with other non-state actors, it played an important role in securing the Paris Agreement and can play an equally important role in contributing to creating the policy frameworks conducive to long-term climate-resilient low carbon investments. Over the two days, the Summit heard from businesses all over the world, calling for swifter government action on climate and to work in partnership with business to achieve the necessary global policy framework.

During the final afternoon, the International Chamber of Commerce (ICC) led an International Trade Plenary. Trade and climate change have an inextricable and intimate relationship. The Summit heard from business leaders and policymakers regarding the trade policy priorities required from a climate and green growth perspective, addressing the necessary action needed at the multilateral level as well as the possible role of bilateral and regional agreements. ICC Secretary General John Danilovich said: “Open markets are the best tool we have to enhance global welfare and enable climate action.”

At the beginning of the Summit, the We Mean Business coalition and CDP (formerly the Carbon Disclosure Project) launched a report, ‘The Business End of Climate Change’ with research analysis from the New Climate Institute. It examined five global initiatives on climate action and found that under current plans, business actions will reduce emissions by 3.7 billion metric tons of CO2 equivalent a year, or 60 percent of total emissions cuts pledged in Paris by countries’ NDCs. However, business emissions cuts could reach around 10 billion metric tons of CO2 equivalent a year, well over halfway to a sub 2°C world, with the right policy environment for enhanced climate action.

Business Flags Innovation and Investment at UN Environment Assembly

unea2-logo.fwThe second United Nations Environment Assembly (UNEA) is meeting this week in Nairobi, Kenya to define new priorities on global environmental policy action, based on the UN 2030 Agenda for Sustainable Development and Sustainable Development Goals (SDGs). This session, which meets as a universal assembly involving all UN member states and including environment ministers from over 100 countries, was also the farewell session for the UN Environment Programme’s (UNEP) executive director, Achim Steiner, who has led UNEP for ten years. Erik Solheim, executive director of the OECD Development Assistance Committee will succeed Steiner in that post.

Business and industry representatives from the Global Business Alliance for 2030 attended this session, including USCIB’s Norine Kennedy in her capacity as official business focal point for UNEP.  Attendees took part in the Science and Policy Forum and several events at the Sustainable Innovation Expo, including the UNEA2 Business Dialogue.

L-R: Sally Lee, Mayor of Sorsogon City, the Philippines; John Alrichs, Planet Labs; Barrie Bain, International Fertilizer Association; and Daniel Calleja, Director-General, Environment DG, European Commission
L-R: Sally Lee, Mayor of Sorsogon City, the Philippines; John Alrichs, Planet Labs; Barrie Bain, International Fertilizer Association; and Daniel Calleja, Director-General, Environment DG, European Commission

Speaking for the Global Business Alliance for 2030, Barrie Bain of the International Fertilizer Association (IFA) stated that “while technological innovation can come in the form of disruptive change, far more important is to enable continuous evolution and improvement of a wide range of technologies to reduce their environmental impacts.”

After several nights of late night negotiations, UNEA reached over 20 policy decisions, including in the areas of:

  • Marine debris and plastics
  • Chemicals and Waste
  • Access to Information
  • Climate Change
  • Reducing Food Waste

Addressing the links between health and environmental policy is an emerging issue that has received considerable attention in Nairobi.  According to UNEP’s new report, Healthy Environment, Healthy People, 23 percent of all global deaths are due to modifiable environmental factors, with air pollution as the leading factor.

In comments to the UNEA2 Plenary, Kennedy highlighted the importance of creating a strong substantive interface for business and industry to inform and strengthen UNEP programs on environmental science and technology, policy and implementation.  She stated that “sustainability and environmental challenges will require new ways of working, through partnership and enhanced cooperation between governments, business and others.”

USCIB members met with the U.S. government delegation attending UNEA2, and took part in side events on women’s economic empowerment, private-sector partnerships with municipal governments, and climate change and chemicals.  The next UNEA will take place in the fall of 2017.

A full report of UNEA2 outcomes on issues and opportunities for business will be provided at the next meeting of USCIB’s Environment Committee, June 8 in NYC.

Business Priorities for UN Climate Agreement Implementation

Norine Kennedy and Peter Robinson speak at a press conference on December 9 at COP21 in Paris.
Norine Kennedy and Peter Robinson speak at a press conference on December 9 at COP21 in Paris.

Following last year’s landmark conclusion of the United Nations climate negotiations (COP21) culminating in the Paris Agreement, an international treaty designed to reduce global greenhouse gas emissions, USCIB attended the first meeting of the UN’s Ad Hoc Working Group (APA) on the Paris Accord on May 17 in Bonn, Germany to provide business views on the agreement’s implementation.

Norine Kennedy, USCIB’s vice president for strategic international engagement, energy and environment, spoke on behalf of the Business and Industry NGOs at the first meeting of the APA on May 17. She noted that COP21 saw an unprecedented level of business support for the Paris Agreement, and that business across all sectors provides solutions for the world’s mitigation and adaptation to climate change.

“Business develops and provides sustainable solutions in energy production and use, industry, building, transport, energy efficiency, smart cities, water and food security, industrial processes, finance and others that will all be needed for the ambitious, effective global strategy we are embarked on together,” Kennedy said at the meeting.

Kennedy said that transparency, innovation, and investment and markets are business priorities for immediate attention as the UN implements the climate agreement:

Transparency

Defining common rules to measure, report and verify commitments will be essential for the long-term success of the Agreement, and will help promote business support.  Credibility and predictability are vital considerations for private sector planning and investments.

Innovation

All countries and business sectors need to support developing new skills to respond to climate change challenges, enabling energy transitions and shaping public policies for sustainable economies.  Enabling frameworks for innovation and its dissemination, including intellectual property rights protection, are essential. Predictable and transparent policy conditions, open trade and investment and a level playing field in global markets are a prerequisite for effective climate protection.

Investment and Markets

Business welcomes Article 6, because in our view, all markets — including for carbon, goods or financial — should be enlisted to support and deliver results for mitigation and adaptation. Market-based approaches should synergize with other existing policies and options such as international standards, voluntary agreements or other regulatory instruments.

Because business has the relevant expertise to contribute to the review and strengthening of countries’ climate pledges, Kennedy said that a recognized channel for business engagement with the UN Framework Convention on Climate Change is a must.

“In our view, an institutionalized channel within the UNFCCC for private-sector consultation and engagement would provide the necessary institutional infrastructure to support dialogue, partnership and action in short and long term,” she concluded. “This recognized and regular interface should feature not only at high level events, but in all working aspects of the UNFCCC.”