Climate Change Archives

North American Private Public Dialogue on Climate Change

The International Chamber of Commerce (ICC), The Canadian Chamber of Commerce (CCC) and the United States Council for International Business (USCIB) in partnership with the International Emissions Trading Association (IETA), will convene a North American Private Public Dialogue on Climate Change on 23 June 2015 in Washington D.C.

In this defining year for international climate change cooperation, governments will reach a new long-term agreement on greenhouse gas reductions while pursuing adaptation and resilience to climate impacts. Delivering these far-reaching commitments will rely on business investment, innovation, new markets, and engagement. The resulting economic and energy transformation will impact the business community across every sector in myriad and profound ways, offering opportunities and posing challenges.

This Private-Public Dialogue will highlight North American business priorities for the Paris climate accords, and reflect experiences and circumstances both in North America and in the broader global marketplace.

Click here for more information.

Climate policy embraces a range of approaches

Published on June 3, 2015

Financial Times

Letters

Sir, It is unfortunate that Pilita Clark and Ed Crooks present the call from leading oil and gas firms for the widespread introduction of carbon pricing mechanisms in the context of a supposed transatlantic schism (News, June 1). In reality, the prevailing international business view is somewhat more nuanced than it might at first seem.

The anticipated Paris climate agreement will combine a broad range of national and local approaches to combating climate change in what will be a novel form of “bottom-up” global architecture. Carbon pricing instruments (Letters, June 1) can certainly play an important role in spurring emissions reductions in those countries or regions that choose to use them; but it is important to recognise that they are just one part of the policy mix. While carbon pricing may be the most cost-effective climate solution in some countries, other approaches — such as incentive-based systems or efficiency standards — may be a more viable option elsewhere. What’s more, carbon pricing schemes also need to be carefully designed to promote a global level playing field for commerce and to enable future trade-driven growth.

This leads to an important secondary point: the intervention from leading European energy firms is illustrative of a broader effort on the part of the private sector to engage constructively in the development of climate policy. That’s why leading business networks called last month — at the conclusion of the first-ever Business and Climate Summit — for governments to establish a recognised consultative role for the private sector under a future climate accord. Better harnessing of business know-how would be a significant step forward in the way we go about addressing the shared challenge of climate change — irrespective of the specific policy instruments employed.

John Danilovich
Secretary-General
International Chamber of Commerce
Paris, France

Business Engagement in the UN Climate Talks

Published on May 14, 2015
USCIB CEO and President Peter Robinson at a Press Conference during the COP-20 Conference in Lima, Peru.USCIB CEO and President Peter Robinson at a Press Conference during the COP-20 Conference in Lima, Peru.

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USCIB CEO and President Peter Robinson at a Press Conference during the COP-20 Conference in Lima, Peru.

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Jim Bacchus, ICC (center) and USCIB’s Norine Kennedy (left) participating in a panel organized by the Major Economies Business Forum (BizMEF) during the COP-20 Conference in Lima, Peru.

William E. Craft, Deputy Assistant Secretary for Trade Policy and Programs, Bureau of Economic and Business Affairs, U.S. State Department gives luncheon keynote remarks during the USCIB-ICC-IETA North America Climate Change Consultation in June 2015.William E. Craft, Deputy Assistant Secretary for Trade Policy and Programs, Bureau of Economic and Business Affairs, U.S. State Department gives luncheon keynote remarks during the USCIB-ICC-IETA North America Climate Change Consultation in June 2015.

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William E. Craft, Deputy Assistant Secretary for Trade Policy and Programs, U.S. State Department gives luncheon keynote remarks during the USCIB-ICC-IETA North America Climate Change Consultation in June 2015.

Government and Private Sector Participants at a Major Economies Business Forum (BizMEF) side-event during the COP-20 Lima Conference.Government and Private Sector Participants at a Major Economies Business Forum (BizMEF) side-event during the COP-20 Lima Conference.

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Government and Private Sector Participants at a Major Economies Business Forum (BizMEF) side-event during the COP-20 Lima Conference.

New BizMEF Position Papers Available:

Business in the UNFCCC

Innovation

Greenhouse Gas Markets

Perspectives on the INDCs

Perspectives on COP-21

Explore

Impact of the UN Climate Agreement on U.S. Business

 

Events: On the Road to COP21

 

Press Coverage

 

Information and Resources

The United States Council for International Business (USCIB) strongly supports the UN Framework Convention on Climate Change (UNFCCC) and a successful and effective outcome to the current negotiations leading to a new long term post 2015 climate agreement.

USCIB will represent American business interests in the remaining negotiations en route to and at the 2015 United Nations Climate Change Conference in Paris at the end of the year. The agreement that will come out of these UN climate talks will dramatically shape the future of international commerce and have a lasting impact on regulatory frameworks, affecting market access and investment. But if this agreement doesn’t work with and for business, then it just won’t work. Given the effects such an agreement will have on global markets, the private sector must be included as a partner in international efforts to reduce greenhouse gas emissions and advance adaptation and resilience.

campaign2015_logoUSCIB will provide critical business recommendations and engagement to the UN through our global network to inform the agreement’s outcome, ensuring that its conclusions truly work for business.

As part of its advocacy, USCIB is encouraging governments to create a recognized interface, or “channel,” for business input into the UN’s deliberations so that the private sector is heard during negotiations that will lead to binding laws and new markets. USCIB also seeks to preclude legally binding outcomes that may have unintended negative consequences for business.

Business will be expected to support, finance and report on the UN climate agreement; business therefore needs to be part of the international climate policy conversation.

As the voice of American business at the international level, USCIB seeks a recognized consultative role for the private sector to inform the global climate change agenda – from setting priorities, to crafting policy options, to taking action.

Upcoming Events

December 1, Paris, venue: US Government Pavilion, “Deploying Innovative Technologies for Climate Change: Looking to Trade to Jumpstart Paris Action”, 5:45 pm – 6:45 pm

December 2, Paris, venue: French Government Climate Generations Area, “Business, the SDGs and Climate Change: Synergies and Engagement Opportunities”, 3:30 pm – 5:00 pm

December 5, Paris, venue: George Marshall Center, Embassy of the United States, “USCIB-American Chamber of Commerce, Executive Briefing and High Level Roundtable Meeting for US Business” 10:00 am – 2:30 pm

December 10, Paris, venue: UNFCCC official side-event in the Blue Zone: “BizMEF side-event on INDC’s (Nationally Determined Contributions)”, 3:00 pm – 4:30 pm

Engaging Business: USCIB’s International Climate Policy Update:

Volume 1, August Issue

Volume 2, October Issue

Volume 3, November Issue coming soon!

The Big Idea: UN Climate Talks: Why the Private Sector Needs to Be Involved Now

Published on May 1, 2015

By Ann Condon and Norine Kennedy

un_headquarters_lo-resThomas Edison said, “Opportunity is missed by most people because it is dressed in overalls and it looks like work.” For the United Nations climate change deliberations driving toward a global agreement in Paris this December, we would offer a variation on Edison’s observation. In this context, opportunity looks like a business person, ready to roll up their sleeves, invest in innovation, find new markets and become more competitive. USCIB wants to make sure the negotiators do not miss that opportunity.

And it goes beyond an opportunity. In our view, engagement with the private sector is imperative from both an economic and environmental standpoint. We need to manage and address the risks of climate change, and doing so requires engaging all countries and societal partners. And this must happen cost-effectively, with job creation and shared prosperity, stimulating economic growth and development.

Can emissions reductions and economic growth really go hand in hand? The answer is an emphatic “Yes!” Moreover, we now have clear evidence that this is underway. In March, the International Energy Agency announced that the world had successfully decoupled economic activity from greenhouse gas emissions, with global GDP increasing by 3.3 percent in 2014, while emissions decreased. This was the first time in over 40 years that observed emissions declined without an economic downturn.

USCIB member companies have made important contributions to inform the discussions, with the goal of influencing policy and market outcomes, meeting societal expectations and, in the process, finding new opportunities and new markets.

The business community has a clear stake in being engaged in the UN negotiation process, to help policy makers understand the economic and business opportunities and consequences of their policy choices.

USCIB, which has been engaged in the process since negotiation of the original UN Framework Convention on Climate Change in 1992, is seeking to expand private-sector engagement throughout the course of 2015 and beyond the Paris summit to the period when national implementation begins.

To do this we are working through multiple channels:

  • Advocating directly to the U.S. government, both on specific elements of a global agreement and on the critical issue of the U.S. pledge (or INDC, for “intended nationally determined contribution”).
  • Working closely with our partners in the International Chamber of Commerce; which serves as the business focal point for the UN negotiations and is playing an increasingly important role as a champion of sensible policies.
  • Engaging with multiple organizations on the interplay between the UN climate talks and other initiatives such as the Sustainable Development Goals.
  • Forging stronger links between the business communities of the major emitting countries through the Major Economies Business Forum.

So how do USCIB member companies see a feasible and durable approach to climate, one that sets the stage to address these joint economic and environmental imperatives?

First, we want governments to provide a clear framework for international action on the many dimensions of climate change – including energy access and modernization to reduce greenhouse gas emissions, and resilience and adaptation; with all large economies making national pledges to measure, monitor and report their activities.

Second, negotiators must find a way to mobilize and deploy $100 billion annually that governments pledged for climate mitigation and adaptation. You simply can’t get to a number that big without catalyzing private investment, which responds best to market incentives. For USCIB, open markets and trade are vehicles that spread investment and technology cost effectively and profitably; anything that hampers markets will slow the pace of climate action and make it needlessly expensive for companies and for society.

Third, and perhaps most importantly, the Paris summit must map out practical ways to include the private sector as a partner in the success of a global climate agreement. USCIB is seeking a recognized consultative role for business in all aspects of climate policy – setting priorities, informing policy options, taking action. As USCIB President and CEO Peter Robinson remarked at the most recent UN climate conference in Lima, Peru: “If a global agreement doesn’t work for and with business, it won’t work.”

It is apparent that this is an idea whose time has come: the French government has called upon the private sector to be part of a shared agenda for action in Paris, and has signaled the importance of ongoing dialogue with business as a priority.

The international community has laid out a broad vision of 2015 as a critical fulcrum, where we can reinvent and reinforce economic and environmental imperatives, using both in markets and policy. For USCIB and its members, expectations are high. We will do our utmost to make the case for what we know will work best – open markets and trade, innovation and the enabling conditions for private sector investment — to address climate change challenges and move the global economy forward.

Ann Condon is director for resource and environment strategies at GE and chair of USCIB’s Environment Committee. Norine Kennedy is USCIB’s vice president for energy, environment and strategic international engagement.

USCIB Urges US to Engage Business on UN Climate Action

Published on March 31, 2015

4991_image001USCIB urged senior U.S. cabinet officials to include business in talks about limiting greenhouse gas emissions as part of the United Nations’ global effort to develop a new international cooperative climate accord.

In December 2015, world leaders are expected to conclude a new UN climate agreement, the world’s first binding and universal agreement committing all countries to reduce carbon their emissions. This international agreement is built around each country’s individual Independent Nationally Determined Contribution (INDCs), or national pledge, whereby the country commits to reducing its carbon footprint by a certain amount in the coming decades.

The United States released its INDC proposal on March 31, unveiling a blueprint for cutting U.S. greenhouse gas emissions by nearly a third over the next 15 years. The private sector was not consulted during the drafting of America’s INDC proposal. Business is expected to support and finance the UN’s climate agreement; therefore business must be included in talks to inform the national pledges and the world’s climate change agenda at every step, from setting priorities, to crafting policy options, to taking action.

“We have a common interest in INDCs that are successful and synergistic with international regulatory frameworks and the global marketplace,” wrote USCIB President and CEO Peter Robinson in a letter sent Secretary of State John Kerry, U.S. Trade Representative Michael Froman and other senior U.S. cabinet officials. “We believe that NDCs can be strengthened and aligned through consultation and coordination with business to discuss how proposed efforts will affect the economy and environment, where additional initiatives can supplement and add to INDC submissions and to seek advice on how to assess proposals by other nations.”

USCIB is a member of the Major Economies Business Forum on Energy Security and Climate Change (BizMEF), which comprises national and regional business organizations representing millions of companies all over the world. BizMEF members have participated in and shared at UN climate change conferences since the Copenhagen conference in 2009. BizMEF released a set of views on how business can contribute to the development and implementation of INDCs:

  • Business has a wealth of knowledge, experience and expertise to offer concerning creation and dissemination of innovative technologies and approaches to manage risk and promote opportunities that should be a the very heart of discussions – formal and informal, domestic and international – about what INDCs could achieve.

 

  • Early and continuous involvement of business (and others) will be essential to help understand the feasibility and implications of proposed INDCs. Business can also provide insight on implications of the entire portfolio of proposed INDCs for global commerce, investment, competitiveness and aggregate consequences for emissions and the economy.

 

  • Business has significant experience in measuring, reporting and verification which will be essential to assess policy impacts, environmental integrity and comparative efforts among nations.

As negotiations intensify around the UN climate agreement set to be finalized in Paris in December, USCIB encourages all governments to consult with business going forward to help understand and assess each country’s national pledge.

What Has Changed in the Climate Change Talks?

Published on January 10, 2015

If a global climate agreement doesn’t work for business, it won’t work.

USCIB President and CEO Peter Robinson
USCIB President and CEO Peter Robinson

Following another finish in “overtime,” the annual UN climate change conference wrapped up in Lima, Peru on December 13. This was the 20th Conference of the Parties to the UN Framework Convention on Climate Change, or UNFCCC, and one could be forgiven for a sense of déjà vu. After all, we have become accustomed to the inevitable cliff-hanger ending of these annual “COP” meetings, just as we have come to depend on a last-minute compromise.

The Lima meeting’s purpose was to set the stage for the home stretch of negotiations of a long term inclusive climate agreement to be finalized next December in Paris. Yet despite a modest agenda, it proved extremely difficult for member states to agree to even a brief five page outcome document. In my view, this means we should not be too complacent as we look ahead to 2015. Much has changed since the international community negotiated the Kyoto Protocol in 1997, and business has a lot on the line.

Negotiators did make progress in framing commitments to lower greenhouse gas emissions and fund developing countries’ climate efforts. I attended alongside USCIB’s Norine Kennedy and many dozens of USCIB member executives and representatives of our global business network. Our colleagues from the International Chamber of Commerce played an important coordinating role, facilitating private-sector engagement across the board in Lima.

This was my fourth COP, and a major difference I noticed from prior meetings was while governments still face gaps and differences in opinion, positions put forward by business groups are converging in three key areas that are – in USCIB’s view – deal-breakers for the future of the agreement.

Commitments and Transparency

The climate agreement to be signed in Paris must provide a clear framework for international cooperative action, committing all large emitting economies to the measurement, monitoring and reporting of nationally pledged activities to control and reduce greenhouse gas emissions, such as those announced recently by the United States and China.

UN negotiators needed to reach agreement on credible measuring, reporting and verification for all national commitments to ensure transparency and assess progress going forward. In Lima, China and a number of other, largely developing, countries resisted measurement and reporting tools to ensure that countries are living up to their commitments.

Financing and Investment

We need to leverage private investment if we are to have any hope of marshalling the $100 billion in annual financing that UNFCCC parties say is required to ensure adequate resources for climate mitigation and adaptation. Yet governments seem stuck in the same old “aid, not trade” mindset. The UN’s Green Climate Fund, designed to finance developing countries’ efforts to combat climate change, did reach its initial $10 billion capitalization target. But going from $10 billion to $100 billion depends on the mobilization of private investment and innovation.

Negotiators must now work toward a 2015 Paris agreement with measures that enable markets and foster business investment – as well as government aid – aimed at reducing greenhouse gas emissions and adjusting to climate impacts. The UNFCCC should promote innovation through financially efficient and well-targeted support mechanisms to scale up new technologies and strong, protection of intellectual property.

Private-Sector Engagement

If a global climate agreement doesn’t work for business, it won’t work. This was the message my colleagues and I delivered repeatedly in Lima. With so much riding on economy-wide transformational change that will rely on the private sector, the Paris outcomes must anchor the role of business in the UN climate agreement through actions to reduce emissions, pursue efficiency, transform energy systems and build more resilient infrastructure.

We made some progress on this front. Our well-attended BizMEF Lima Dialogue (see photo) won praise for engaging with key governments and other stakeholders in support of securing the private-sector commitment and expertise that can drive meaningful change. Given the wide impact that a UN agreement will have on markets, regulations and national competitiveness, an agreed and recognized structure is needed to provide business expertise and support.

UN negotiators should make space for a business consultative channel as a resource of technical and practical expertise for governments and the UNFCCC process.

So where does this leave us, with one year to go before the big Paris climate summit? The challenge of climate change is real on economic, environmental and social fronts, with opportunities for business in new markets and for the global community to enable climate friendly development and energy access.

Negotiators have a lot of work to do between now and next December. Have they bitten off more than they can chew? I think not, but getting this agreement past the finish line will clearly require pragmatic problem-solving and engagement with the private sector. Business innovates and invests in ways that the public sector can’t, and tapping into that innovation could well be the difference between success and the same old same old in Paris next year.

Peter Robinson’s bio and contact information

Other recent postings from Peter Robinson:

What’s the Rush on Global Tax Reform? (Summer 2014)

Setting the Rules of the Road in Cross-Border Commerce (Spring 2014)

It’s Time to Clap with Both Hands on FDI (Winter 2013-2014)

Making Sure the Business Voice Is Heard in International Agencies (Fall 2013)

Business Dialogue Engages Private Sector in UN Climate Talks

Published on December 11, 2014
USCIB President and CEO Peter Robinson at a press conference in Lima, Peru on December 8. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.
USCIB President and CEO Peter Robinson at a press conference in Lima, Peru on December 8. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.

The United Nations climate change conference wrapped up in the wee hours of Sunday in Lima, Peru ending two weeks of climate talks and 36 straight hours of negotiations over the weekend. Member states agreed to a common structure for reducing greenhouse gas emissions – known in the UN as “Intended Nationally Determined Pledges” – and to move ahead on a broader international climate agreement that would enter into force in 2020.

The UN Framework Convention on Climate Change’s (UNFCCC) 20th
Conference of the Parties (COP20), which took place in Lima from December 1 to 12, set the foundation for an intense year of negotiations leading to a long term, comprehensive climate agreement in Paris 2015.

Signaling the political challenges of the task at hand, the 194 governments struggled for consensus on a five page decision that would allow the process to continue. Conflicts between rich and developing nations bogged down efforts to build a draft of the final Paris 2015 climate agreement, in sharp contrast to strong interest by businesses and other stakeholders to be more substantively involved in action and consultation towards the 2015 Paris outcome.

“Lima’s outcomes show the scale of the task before governments and society in limiting greenhouse gases, planning for energy transitions, and linking resilience and development,” said Norine Kennedy, USCIB’s vice president for strategic international engagement, energy and the environment. “Business innovation and investment are indispensable, and USCIB is ready to continue to inform and support these vital economic and environmental deliberations going forward.”

USCIB and the Major Economies Business Forum

L-R: Norine Kennedy (USCIB), Honorable James Bacchus (Chair, ICC Trade and Investment Commission) and Diego de la Torre (CONFIEP) at the BizMEF Lima Business Dialogue.
L-R: Norine Kennedy (USCIB), Honorable James Bacchus (Chair, ICC Trade and Investment Commission) and Diego de la Torre (CONFIEP) at the BizMEF Lima Business Dialogue.

Committed to forging a recognized consultative role for business in the United Nations climate agreement to be finalized next year in Paris, the Major Economies Business Forum (BizMEF), of which USCIB is a member, co-hosted the “Lima Business Dialogue” during COP20 in Lima. The Dialogue was organized in partnership with, and hosted by, the Lima Chamber of Commerce on December 7.

Over 70 attendees participated in the dialogue, including high-level government officials and climate negotiators from the United States, Peru, New Zealand, the Netherlands, Japan and Poland; global business leaders; representatives of major national business organizations; and officials from the UNFCCC Secretariat. Playing a leading role for USCIB were President and CEO Peter Robinson and Norine Kennedy, vice president for strategic international engagement, energy and the environment.

BizMEF comprises national and regional business organizations representing millions of companies all over the world, and members have participated in and shared views at meetings of the UNFCCC since COP15 in Copenhagen in 2009. This partnership’s broad representation allows BizMEF to provide robust and balanced views on a range of issues in discussions concerning climate change, energy and development. USCIB contributed to five BizMEF papers on key priorities, issues and perspectives around the UN climate negotiations.

The Lima Business Dialogue tackled climate change policy and market opportunities and challenges faced by the Latin American business community, reviewed the role the private sector plays in the UN’s technology mechanism and the UNFCCC’s Green Climate Fund, and discussed the value of engagement by the private sector in the UN’s Post-2020 Climate Agreement. Panel discussions focused on critical areas for business such as nationally determined contributions, markets, and carbon markets and pricing.

View photos from the COP20 Lima Business Dialogue
(Flickr)

“Our goal is to encourage the creation of more effective engagement options for the business community in the United Nations Framework Convention on Climate Change,” said Robinson. “Both by considering ways to do so and by demonstrating the value of enhanced, recognized participation.”

This session built on previous successful BizMEF Dialogues in Doha and Warsaw Dialogues in 2012 and 2013. While the UN refers to businesses as “observer organizations” at the UNFCCC’s deliberations, implementation of government commitments, and the financial and technological means to do so, rely in large part on the private sector. Yet business has limited opportunities to offer its technical expertise and policy advice to the deliberations.

“The UNFCCC now has a once in a decade opportunity to anchor business in the Paris 2015 outcome,” Kennedy said at the dialogue. “And by doing so, to tap into the business’s unique understanding of policy and markets, and its operational, technological, investment, and management expertise to help design and implement the new international cooperative climate framework. We are not seeking to sit at the table with negotiators. We aim to be a resource to negotiators and the process.”

The day after the Lima Business Dialogue, Robinson attended a press conference with International Chamber of Commerce (ICC) leaders in which he made a strong case for business engagement in UN climate talks.

“If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said. Robinson was also quoted in a Financial Times article, “Business calls for greater say in climate talks.”

For more information on USCIB’s, ICC’s, and BizMEF’s engagement in UN climate negotiations, visit our COP20 web page, and follow us on Twitter at #BizCOP20.

Key USCIB issues for Lima:

  • Ensuring the role of business is anchored in the Paris 2015 outcomes.
  • Reviewing the form and scope of the Intended Nationally Determined Pledges: USCIB tracked the degree to which business would be consulted in INDC preparation at the national level and in reviewing INDCs at international levels.
  • Supporting innovation and strong intellectual property rights protections, including in the ongoing work of the Technology Mechanism. While the Lima Decision does not mention IP, the most recent version of the “elements” of a negotiating text contains references to intellectual property.
  • Ensuring that conditions for private sector investment are strengthened. The Green Climate Fund did reach its $10 billion threshold, yet discussions of markets and market mechanisms were contentious.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

FT: Business Calls for Greater Say in Climate Talks

Published on December 10, 2014

Business leaders have called for a much bigger say in UN talks shaping a global climate deal in Paris in 2015, in a sign of growing concern about how the agreement may affect the private sector. USCIB President and CEO Peter Robinson is quoted: “We want to find an opportunity where we are more inside the tent than on the sidelines.”

Business Calls for Greater Say in Climate Talks

BIAC to Participate in OECD/IEA Global Forum on Climate Change

Published on September 9, 2013

The Organization for Economic Cooperation and Development (OECD) has for a long-time made a major contribution to international climate discussions, among others by contributing fact-based analysis of least-cost policies and by helping countries identify and implement effective and efficient policy mixes to meet their commitments. The Climate Change Expert Group, for which the OECD and the International Energy Agency (IEA) are providing secretariat support, is playing an important role in promoting dialogue on and enhancing understanding of technical issues in the international climate change negotiations and has contributed detailed analysis on a range of issues relevant to the on-going negotiations (see the flyer of the Climate Change Expert Group for an overview of the Group’s work).

The private sector is closely involved, contributing to a series of expert meetings. The next Global Forum on Climate Change organized by the Expert Group will take place at the OECD Headquarters on September 18-19. The Business and Industry Advisory Committee to the OECD will offer the business perspective on key elements needed for an effective 2015 agreement, addressing issues related to effective climate finance, emissions accounting for post-2020 commitments as well as the broader benefits of climate change mitigation.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee