2015: A Landmark Year for Sustainability

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.

On December 12, the international community ended one of the most productive years of sustainability policy since 1992, when 194 countries concluded a long-term UN climate treaty known as the Paris Climate Agreement (PCA).

The Paris Climate Summit attracted 150 heads of state, including President Obama, along with more than 40,000 registered attendees and unprecedented business representatives. Combined with the UN’s new 2030 Development Agenda, the Paris agreement shows how the international community has defined an integrated multilateral framework of sustainability policy, implementation, markets and partnership that will depend on business innovation and investment, and impact companies of all sectors and sizes.

The Paris Agreement is a departure from its predecessor, the 1997 Kyoto Protocol, since it is based on national pledges that were not the subject of the negotiations.  Among the agreement’s highlights:

  • Establishment of an international framework for stocktaking on government actions in several areas, including mitigation, adaptation and technology cooperation. Countries are obliged to report on progress and set progressively more ambitious greenhouse gas reduction targets at five year intervals.
  • Ambitious long term goals to limit mean temperature rise to 2.0 C, strive to 1.5 C, with global peaking and net carbon neutrality in the second half of the century.
  • Call for public and private sources to mobilize a minimum of $100 billion per year to support climate action in developing countries, increasing after 2020.

The agreement will enter into force when 55 countries making up 55 percent of global emissions ratify it.  USCIB noted several positive outcomes for business in the Paris agreement relating to technology innovation, the option to use markets for emissions reductions, and the engagement of business in near-term actions and technical inputs.

Historic Business Support and Attendance at COP21

“Business was seeking flexibility and clarity in this agreement, especially with regard to the possible use of markets at national and international levels,” said USCIB member Nick Campbell (Arkema). “We are pleased to see that the Paris Agreement does not preclude these options, and the door remains open for carbon markets to evolve among interested countries.”

USCIB members and staff, including President and CEO Peter Robinson and Vice President for Energy, Environment and Strategic International Engagement Norine Kennedy, were on the ground in Paris to advance USCIB policy priorities, hold several side meetings and presentations on U.S. business climate perspectives and demonstrate business’s stake in a successful outcome.

Prior to COP21, USCIB had strong concerns that some countries would attempt to address intellectual property in the Paris outcome as a barrier to the transfer of green technology. Thanks to sustained advocacy from USCIB and many other business organizations, the Paris Agreement does not reference IP, and underscores the need for enabling frameworks.

“Open trade and strong IP protection are central enabling conditions for innovation, stimulating investment and disseminating new greener technologies and knowledge,” said Kennedy. “Many governments continue to express interest in engaging with the private sector on climate action, and business will remain involved in the process as countries move to elaborate and implement the agreement.”

US Business Seeks A Recognized Role for the Private Sector

USCIB and the American Chamber of Commerce in France issued a joint declaration following a daylong meeting they convened on the role of U.S. companies in elaborating and implementing the Paris Climate Summit outcomes.

The declaration stated: “Until now, business groups have been viewed as ‘observers’ at these vital UN deliberations. Yet in view of all that business does and offers, that is a misnomer. We see COP21 as a pivotal opportunity to pursue institutional innovation. New challenges require new ways of working together, which can be achieved through the recognition and expansion of partnerships, dialogue and consultation between governments and the private sector.”

The two business groups stated that a recognized business consultative relationship would provide both long-term and short-term benefits, helping governments prioritize policies to address climate change, while allowing companies to better invest in cleaner technologies and solutions. This interface could provide national governments and the UN secretariat with detailed technical guidance on a range of matters, including implementation of the Intended Nationally Determined Contributions (INDCs) at the national and international levels.

In addition, USCIB represented U.S. business at the Business Climate Summit, a CEO level event organized by MEDEF, the pre-eminent French business group, in the second week of the Paris Climate Summit.  Its conclusions also called for recognized dialogue with business as a necessary next step after COP21.

Further UN climate discussions beginning in 2016 will be needed to elaborate the agreement.  Addressing the follow-up that will be required, USCIB’s Robinson stated: “Our takeaway from Paris is that the UN needs business. A solid working relationship between business and the UN system will be the catalyst for effective implementation.  To be sure, business needs the UN Climate Agreement – but more importantly, the UN needs business.”

Taking Stock: USCIB’s Campaign2015 Initiative 

In early 2015, USCIB launched a dedicated advocacy and outreach initiative to bring the voice of U.S. business into the multiple UN deliberations on sustainability which played out in 2015.

Campaign 2015’s objectives were to:

Represent U.S. business interests in real time – USCIB leadership and staff was able to travel to ensure U.S. business was at the table to inform the policy debate with persuasive and unique content

Champion and amplify USCIB messages, and communicate to influential audiences – USCIB held several dedicated meetings in Paris, New York, Washington, D.C. and Tokyo to voice positions, stimulate dialogue and advance USCIB visibility.

Promote opportunities and enabling frameworks for business investment, action, collaboration and innovation, utilizing USCIB’s Business for 2030 website as a platform for recommendations and USCIB member achievements.

Looking ahead to 2016, we expect to see a shift of UN discussions towards elaboration, implementation and tracking.   The private sector will be a central participant, and there will be many opportunities for the U.S. business community to contribute to these global endeavors with the right enabling frameworks, and with recognized options for business involvement.

As it determines how to build on Campaign 2015, USCIB will:

  • Assess specific tasks and opportunities assigned to business by the UN 2030 Development Agenda and SDGs in New York and through the UNFCCC
  • Build on USCIB’s Business for 2030 website to continue to collect examples of business action, and offer additional resources for partnerships
  • Identify opportunities to continue the dialogue and demonstrate the value of business engagement in forthcoming policy deliberations.

US Coalition For TPP Statement Of Support

Harbor_tradeToday the U.S. Coalition for TPP, of which USCIB is a leading member, issued the following statement in support of the Trans-Pacific Partnership (TPP):

“Since its inception, the U.S. Coalition for TPP has advocated for a Trans-Pacific Partnership (TPP) agreement that would increase U.S. export and economic opportunities, support American jobs, strengthen trade-enforcement tools, and advance security, stability, and prosperity throughout the Asia-Pacific region.

“The U.S. Coalition for TPP has considered the text and finds that it will advance U.S. global competitiveness in the region and set in place modernized rules for the benefit of many industries and their workers in the United States.

“A world with the Trans-Pacific Partnership will help expand the rule of law, transparency, and fairness in the region. It is an agreement that will serve to improve the lives of millions of people in the United States and its TPP partners. It will do so by encouraging competition and setting disciplines in government acts, policies, and practices among the 12 Pacific Rim members that will set an example to which other countries will aspire. As a leading force behind the TPP negotiation, the United States will have, once again, established its preeminent role as a world leader in promoting peace and a more secure future through prosperity that comes from a commitment to liberalized trade and investment.

“The U.S. Coalition for TPP supports the agreement as a significant step forward to a fairer and more-level economic playing field in the Pacific Rim. We also encourage the U.S. government to work with Congress and the 11 TPP partner countries to strengthen the agreement further, thereby expanding support for this important achievement.

“We encourage Congress to give the agreement timely consideration and ultimately support its passage.”

Below are nine specific TPP achievements that will create benefits for American workers, families, and businesses.

  • Reduction of discriminatory tariffs and non-tariff barriers throughout the region, including the total elimination of 100 percent of tariffs on qualifying industrial goods and textiles exports
  • Increase in market access for U.S. agriculture products, reduction of non-tariff barriers to agriculture trade, and expansion of sanitary and phytosanitary provisions
  • New, binding commitments in e-commerce that promote digital trade, spur innovation for new goods and services, and implement strong consumer protections
  • Stricter controls for state-owned enterprises (SOEs), including requirements that they make purchasing decisions based on quality and price, not favoritism
  • Strong enforcement mechanisms, including trade sanctions, that ensure TPP countries comply with the new standards established by TPP
  • New standards and a mechanism to promote good governance across the region by including anti-corruption rules, implementation of anti-bribery laws, and guarantees of due-process rights
  • Provisions to streamline and simplify the movement and release of goods across borders and provide much-needed business predictability on the treatment of goods at the border
  • Promotion of regulatory transparency and cooperation to help address barriers imposed by inconsistent regulatory regimes
  • A first-of-its-kind commitment to help small and medium-sized businesses obtain greater opportunities out of trade agreements

About The Coalition
The U.S. Coalition for TPP is a broad-based and cross-sectoral group of U.S. companies and associations representing the principal sectors of the U.S. economy including agriculture, manufacturing, information and communications technologies, merchandising, processing, publishing, retailing and services.

Following Nairobi Ministerial, USCIB Encourages WTO Members to Look to the Future

switzerland-wto-general-councilNew York, N.Y., December 19, 2015 – The United States Council for International Business (USCIB) welcomed progress by World Trade Organization members on a number of issues at the WTO ministerial in Nairobi but expressed concerns about the lack of consensus on a post-Nairobi action plan.

The ministerial made progress on agriculture and in other areas, but WTO members remain divided over the path for addressing issues from the Doha Round and new issues of increasing concern to business. USCIB applauded positive developments for business that came out of the ministerial, including agreement on expansion of the Information Technology Agreement (ITA), eliminating tariffs on 201 IT products valued at over $1.3 trillion per year, as well as six additional ratifications for the Trade Facilitation Agreement (TFA).

“The WTO should look to the future, focusing its resources and energy in pursuit of a practical agenda that addresses 21st-century trade challenges,” said USCIB President and CEO Peter Robinson. “USCIB reiterates its support of the multilateral trade agenda and encourages the WTO to continue its engagement on these and other issues of importance to business.”

USCIB strongly supports ratification and implementation of the TFA and is encouraged that 63 countries have now ratified the agreement, which is expected to reduce worldwide trade costs by some 17 percent by streamlining and modernizing customs procedures. In Nairobi, the International Chamber of Commerce (ICC), working with several other business groups and government agencies, launched a new partnership to support the effective implementation of TFA.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network – encompassing ICC, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD – USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

Business Reflections on COP21

COP21_sideventAfter four years of intensive negotiations, 194 countries concluded a long-term global climate treaty, known as the Paris Agreement, to reduce worldwide greenhouse gas emissions. The two-week meeting, which concluded on December 12, was one of the largest gatherings in the history of the UN Framework Convention on Climate Change (UNFCCC), with 150 heads of state on hand, more than 40,000 registered attendees and unprecedented business involvement. USCIB members and staff, including President and CEO Peter Robinson and Vice President for Energy, Environment and International Engagement Norine Kennedy, were on the ground in Paris to advance USCIB policy priorities, hold several side meetings and presentations on US business climate perspectives and demonstrate business’s stake in a successful outcome.

The Paris Agreement is based on national pledges to reduce greenhouse gas emissions, and sets out an international framework for stocktaking on government actions in several areas, including mitigation, adaptation and technology cooperation. The agreement requires countries to report on progress and calls on them to set progressively more ambitious greenhouse gas reduction targets at five year intervals. There will be many opportunities for the private sector to contribute to this global endeavor, although some specifics regarding the agreement’s implementation still require elaboration.  It sets ambitious long term goals to limit mean temperature rise to 1.5 C, with global peaking and net carbon neutrality in the second half of the century.  It also calls on public and private sources to mobilize a minimum of $100 billion per year to support climate action in developing countries, with that amount to increase after 2020. The Paris Agreement will enter into force when 55 countries making up 55% of global emissions ratify it.

USCIB noted several positive outcomes for business in the Paris Agreement relating to technology innovation, the option to use markets for emissions reductions, and the engagement of business in near term actions and technical inputs.

“Business was seeking flexibility and clarity in this agreement, especially with regard to the possible use of markets at national and international levels,” said USCIB member Nick Campbell (Arkema). “We note that the Paris Agreement does not preclude these options, and the door remains open for carbon markets to evolve among interested countries.”

Prior to COP21, USCIB had strong concerns that some countries would attempt to address intellectual property in the Paris outcome as a barrier to the transfer of green technology. Thanks to sustained advocacy from USCIB and many other business organizations, the Paris Agreement does not reference IP, and underscores the need for enabling frameworks.

“Open trade and strong IP protection  are central enabling conditions for innovation, stimulating investment and disseminating new greener technologies and knowledge,” said Norine Kennedy, USCIB’s vice president for strategic international engagement, energy and environment. “Many governments continue to express interest in engaging with the private sector on climate action, and business will remain involved in the process as countries move to elaborate and implement the agreement.”

Visit our climate homepage for more coverage of COP21.

State Department’s Catherine Novelli Briefs USCIB Members on TPP

L - R: Joe Schoonmaker (NYDEC) and Catherine Novelli (U.S. Department of State)
L – R: Joe Schoonmaker (NYDEC) and Catherine Novelli (U.S. Department of State)

The 12-nation Trans-Pacific Partnership (TPP) agreement is one of the most ambitious and potentially transformative trade agreements in decades. U.S. Under Secretary of State for Economic Growth, Energy, and the Environment Catherine Novelli stopped by USCIB’s offices in New York on December 16 for a discussion about TPP and how the agreement will benefit the Asia-Pacific and help carve a place for U.S. exports in the region.

The New York District Export Council, the Manhattan Chamber of Commerce, and Business Forward joined USCIB for a White House Business Council briefing with Under Secretary Novelli, who provided on overview of TPP and outlined the provisions that will boost U.S. competitiveness, including the removal of data localization requirements, intellectual property protections and path-breaking commitments on labor and environmental standards.

“This is the place where markets are,” Novelli said, speaking about the Asia-Pacific and how TPP will liberalize trade in a region that is home to two-thirds of the global middle class.

Novelli noted that on environmental issues, the United States is very competitive in energy efficiency and clean energy, so TPP will provide an opportunity for U.S. exports of green products and services. She also mentioned that all twelve countries will be obliged to enact and enforce intellectual property laws, which benefits all businesses. And on China, Novelli stated that although China had not expressed interest in joining TPP, the agreement is a critical component of America’s foreign policy in Asia, as it sets new liberal trade rules in the region.

Attendees at the briefing included Joe Schoonmaker, chair of the New York District Export Council, Alex Tureman, programming director at Business Forward and Nancy Ploeger, president of the Manhattan Chamber of Commerce. Jonathan Huneke, USCIB’s vice president of communications and public affairs, moderated the discussion.

 

 

USCIB Welcomes Expansion of WTO’s Information Technology Agreement

world map on interfaceNew York, N.Y., December 16, 2015 – The United States Council for International Business (USCIB) welcomed today’s long-awaited expansion of the WTO’s Information Technology Agreement (ITA), a deal that eliminates tariffs on a wide array of information technology products and services. ITA was finalized at the WTO ministerial meeting in Nairobi, Kenya, and once implemented the agreement is expected to inject $190 billion into the global economy.

“This market-opening agreement holds vast potential to boost U.S. exports and lower the costs of doing business for companies of all sizes,” said USCIB President and CEO Peter Robinson. “All businesses use ICTs, and dropping barriers on high tech products will contribute to global growth, jobs and sustainable development.”

The WTO estimates that ITA expansion will cut tariffs on over $1 trillion in annual global sales of high-tech products, of which $180 billion come from the Unites States. In addition to boosting American technology exports, the ITA is expected to support up to 60,000 new U.S. jobs.

The original 1996 ITA helped cement the growth of electronic commerce and the digital economy by freeing up trade in many IT goods and services. Today’s agreement expands the number of IT goods covered by ITA; it is the first major tariff-elimination deal at the WTO in 18 years.

Robinson added: “We applaud the determination displayed by U.S. Trade Representative Michael Froman and his team for securing the expansion of this agreement.”

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

More on USCIB’s Information, Communications and Technology Committee

WSIS+10: Advance SDGs for Secure and Vibrant Digital Economy in Africa

L-R: Moctar Yedaly (African Union), John Danilovich (ICC) and Joseph Alhadeff (Oracle)
L-R: Moctar Yedaly (African Union), John Danilovich (ICC) and Joseph Alhadeff (Oracle)

The International Chamber of Commerce (ICC) Business Action to Support the Information Society (BASIS) initiative, the Africa ICT Alliance (AfICTA) and the African Union (AU) joined forces to provide an integrated view of the lessons learned from the implementation of the United Nations (UN) millennium development goals (MDGs) and the good practices imperative for enabling the sustainable development goals (SDGs).

The review took place at a side event hosted during the World Summit on the Information Society (WSIS) +10 high level review meeting at UN Headquarters in New York. Under the theme “Digital economy and sustainable development”, the luncheon event highlighted the value of information communication technologies (ICTs) and the Internet in the underpinning infrastructure for economic and social progress and providing tools for programmes in sectors such as health, finance and education. Panelists from business and the governments of Egypt, Nigeria and South Africa shared perspectives on how to ensure the Internet continues to be a platform for growth and a critical enabler of sustainable development.

Co-moderators of the session Joseph Alhadeff (Oracle) chair of the ICC’s Commission on the Digital Economy and of USCIB’s ICT Committee, and Moctar Yedaly of the African Union, invited participants to discuss how progress towards the SDGs could be made, reflecting on the myriad ways in which ICTs have already helped to advance several MDGs in Africa.

Hlengiwe Buhle Mkhize, deputy minister of telecommunications and postal service, South Africa, who took part in the event, said: “If we really want to bring a new agenda of how the use of ICTs helps us to step up our efforts, to equalize and create a sustainable society, we have to deepen our conversations as partners and as to what responsibilities we bear, and how we measure the commitments.”

wsiis1_sourceChaired by ICC Secretary General John Danilovich, the event also featured Adebayo Shittu, minister of communications, Nigeria, Nermine El Saadany, under secretary for international relations division, Ministry of Communications and Information Technology, Egypt and ICC BASIS members Jimson Olufuye, chairman, Africa ICT Alliance (AfICTA).

The interactive discussion focused on the development of a secure and vibrant digital economy in Africa that would help the region better integrate into the global digital economy. Egyptian small business owner and ICC BASIS Officer Hossam El-Gamal said: “We need competitiveness, transparency, security and openness to encourage investment and bring the next billion online.”

For more information about the side event ‘Digital economy and sustainable development’ please click here

 

Does the Paris climate deal sideline business?

BBC News

“The US Council for International Business has said it is “disappointing” that the document makes no specific reference to business at all. In the words of Norine Kennedy, its vice-president of strategic international engagement, energy and environmental affairs: “Given how important business will be to delivering so many of the issues in the agreement, it would be appropriate for business to be mentioned.”

Read the full BBC News article.

USCIB Hails Long-Term Paris Agreement, Calls for Engagement with Private Sector

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 COP21 side event on December 9 in Paris.

Governments reached a long-awaited climate accord on December 12 in Paris, bringing an end to four years of intensive United Nations negotiations to set a new global plan from 2020 onward, with long-term targets through the end of the century. The two-week meeting, known as the 21st Conference of Parties (COP21), brought together President Obama, UN Secretary General Ban Ki Moon, and over 150 heads of state. In addition to the governmental meetings, businesses and other non-state representatives from every region of the world presented numerous new initiatives and solutions to the climate challenge at multiple venues.

“USCIB members were on hand at COP21 in unprecedented numbers to demonstrate their commitment and stake in the accord, and we are confident that this engagement will continue,” stated USCIB President and CEO Peter Robinson. “USCIB is ready to strengthen its involvement with the UN process to build long-term cooperation for practical and cost-effective results.”

Robinson went on to thank the government of France for organizing COP21 and shepherding the agreement to its conclusion, and noted its excellent partnership with industry including  business groups such as MEDEF and ICC-France. He also commended the strong and positive representation in Paris of multiple national and international business organizations, coordinated in large part by the International Chamber of Commerce (ICC), for which USCIB serves as U.S. affiliate.

Read ICC’s press release.

Unlike its predecessor, the Kyoto Protocol, this new universal agreement engages all countries in climate action under an international cooperative framework on mitigation, adaptation and resilience, requiring periodic reporting and review of governmental actions, Based on a foundation of national pledges and actions, the agreement calls on countries to set progressively more ambitious greenhouse gas reduction targets at five year intervals.


Robinson speaks to Climate TV about private-sector involvement in the Paris Agreement

While questions do remain about the feasibility of the Paris Agreement’s longer term target to eventually limit mean temperature change to 1.5  degrees C,  the new treaty does recognize the need for enabling frameworks in global markets and policy necessary to mobilize business innovation and investment across all sectors.  These will be essential to shift national economies and the dynamics of the global market place to help meet the agreement’s ambitious targets.

John_Kerry_COP21
“What’s happening in the private sector is nothing less than extraordinary… If we send the right signals – if we make the right choices – the private sector will deliver.” – John Kerry, U.S. Secretary of State

“In its over 20 years of involvement in the UN Framework Convention on Climate Change (UNFCCC) process, USCIB has emphasized that the lynchpin for successful implementation will be private sector involvement at national and global levels,” Norine Kennedy, USCIB’s VP for Environment and Energy said. “Governments will look to business for technical input, as well as finance, investment and implementation, and we are ready to step up.  Thanks to a concerted effort by USCIB and other US business groups, the agreement provides clarity on markets, while steering clear of confusion on intellectual property rights protection. 

In coming weeks, USCIB will assess the Paris outcomes and set priorities for its engagement with the first phase of the Paris Agreement, in partnership with ICC, the Major Economies Business Forum and other business organizations.

BIAC Welcomes COP21 Outcomes and Calls for Dynamic Role for the OECD

More information on USCIB’s activities at COP21 available on our climate homepage.

Human Rights First Summit Explores Solutions to Human Trafficking

Human Rights First

“The 2015 Human Rights First Summit, held December 9 at the Newseum in Washington, D.C., featured experts who sought to answer difficult questions on how to combat human trafficking…a diverse panel of experts…moderated by Ariel Meyerstein, Vice President of Labor Affairs at the United States Council for International Business (USCIB)—delved deeper into the issue.”

Read the full Human Rights First article.