COP24 and Private-Sector Action: A Game of Mirrors

By Renaud Bettin and César Dugast

The COPs—annual gatherings of nations to shape global climate governance—remain essential. But the compass guiding government action seems to be losing its bearings, and a reversal of ambition is underway. A look back at COP24 and the mirror image between government action—lacking in ambition—and non-governmental action, of which Carbone 4 and its clients are a part.

Ambition: Go to the top

The Challenge : Countries’ nationally determined contributions are putting the planet on a path toward warming of more than 3°C by the end of the century compared to pre-industrial levels. Against the backdrop of rising global emissions highlighted by the latest Emissions Gap Report According to UNEP, one of the key challenges of this COP was to raise the Parties’ ambition regarding emissions reduction targets. Ideally, the final text of COP24 would incorporate several key findings from the IPCC’s special report, notably the goal of achieving carbon neutrality by 2050. The outcome of the COP: Once again, there was a form of denial of scientific reality and, consequently, an ever-widening gap between necessary ambition and political will: the Parties merely “took note” of the IPCC report, refusing to “welcome” it. Fifty countries are considering raising their targets, but only the Marshall Islands have submitted an updated NDC. What Carbone 4 Does : The private sector, which is known to bear some responsibility for climate change, must also take concrete steps to raise its ambitions. The “ Science-Based Targets ", which was created specifically to help companies set reduction targets consistent with the Paris Agreement, is now facing the challenge of updating its reduction pathways in line with the 1.5°C goal. Carbone 4 supports its clients in developing ambitious trajectories to reduce their carbon footprint.

Paris Agreement: Instructions for Use

The Challenge : Technical rules for implementing the Paris Agreement needed to be established. The goal was to harmonize national contributions (content and timeline) in order to best organize the global five-year review, while strengthening transparency rules. The outcome of the COP : These guidelines for implementing the Agreement, or Rulebook, was finally adopted, and this represents a real step forward. States now have a common framework for reporting specifying the reference years, progress indicators, accounting methods, the use of international credit transfers, mitigation and adaptation actions, etc. It will make it possible to track their contributions and progress toward carbon neutrality, particularly through a national inventory of their greenhouse gas emissions. This is an important step toward greater clarity and transparency, which should foster mutual trust among the Parties—a prerequisite for effective global action. What Carbone 4 Does : The private sector also needs a common language to communicate clearly and consistently about the actions it is taking to combat climate change. That is why Carbone 4 and its partners created Net Zero Initiative, a unique network of stakeholders committed to addressing the critical issue of carbon neutrality, whose primary task is to develop a common, ambitious, and scientifically sound framework for companies to achieve “net zero.”

Funding: Money, Money, Money

The challenge: This is the crux of the North-South divide. At the heart of this issue are equity, climate justice, and “common but differentiated responsibilities.” COP24 was expected to yield new commitments regarding financing from the North to the South. The goal of $100 billion per year by 2020, enshrined in the Paris Agreement, remains more relevant than ever. The outcome of the COP : In addition to the record-breaking pledges to the Adaptation Fund (129 million euros), the Rulebook imposes stricter and more demanding criteria on investments, without going into detail. New and additional resources are still needed, given that $300 billion per year will be required by 2030 to help the most vulnerable countries adapt to the consequences of global warming. What Carbone 4 Does: Finance and adaptation—two “key factors” that Carbone 4 addresses in its own way. Meanwhile, our subsidiary Carbon4Finance offers a climate data service for the financial sector that is unique in the world; our Adaptation division recently launched MyCris, an innovative tool for assessing the physical risks faced by businesses based on their geographic location and industry.

Carbon Cooperation

The Challenge : Article 6 of the Paris Agreement outlines the future of the Kyoto Protocol’s Clean Development Mechanism (CDM), which currently allows developed countries to acquire emissions credits by financing projects in developing countries. The goal of COP24 in establishing the rules for these new mechanisms was to define a reliable accounting system to prevent emissions from being double-counted (by both the countries purchasing and those selling credits). The outcome of the COP : Despite the valuable work carried out by negotiators throughout the two weeks, the text on Article 6 regarding international trading of carbon allowances and credits has been completely stripped of its substance, particularly by Brazil. The issue will be addressed again in Chile in November 2019, at the next COP. What Carbone 4 Does : Carbon credit markets are valuable mechanisms for financing cost-effective global emissions reduction efforts. However, the private sector’s misuse of voluntary “offset” credits, along with the glaring lack of transparency regarding the margins earned by intermediaries, has undermined the credibility of and trust in these mechanisms, both among the companies using them and among on-the-ground actors in the Global South. Net Zero Initiative advocates for greater efficiency in these markets and seeks to maximize the on-the-ground impact of climate finance.

Sources : https://theconversation.com/cop24-que-penser-du-resultat-108949 https://theconversation.com/cop24-un-accord-tres-technique-mais-peu-ambitieux-108931