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Business Engagement in Implementing National Climate Pledges & the Paris Agreement

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Business Engagement in Implementing National Climate Pledges & the Paris Agreement Business Engagement in Implementing National Climate Pledges & The Paris Agreement in partnership with CONTENTS Executive Summary . 4 Introduction & Scene Set . 5 Background Starting Assumptions Increasing Ambition Through Voluntary Actions by Business: A First Step The Report’s Survey of Business & Government Interviews . 11 The Portfolio of NDCs: Achieving the Long-Term Goals Business & the Full Portfolio of NDCs Information Needs in the Paris Agreement: A Public-Private Sector Intersection of Interest & Expertise . 29 5-Year Cycles, Transparency & the Global Stocktake: Where Does Business Fit? . 30 Opportunities & Challenges to Accelerate Long-Term, Global, Transformational Change Across Multiple Sectors . 34 Conclusions . 36 Annex I: Proposal for a Business Platform to Address Opportunities & Barriers to Achieve the Long-Term Goals of the Paris Agreement: From Just Transition to Transformation (JTT) . 37 Annex II: Implementing the Paris Agreement: Opportunities & Barriers to Accelerate Transformational Change: Highlights of Business Workshop on October 10 in Paris . 39 1 The Major Economies Business Forum on Energy Security and Climate Change (BizMEF) is a partnership of leading multi-sectoral business organizations from major economies, and leading international business sectoral associations. Modeled after the government-to-government Major Economies Forum, BizMEF is a platform for these groups to: • promote dialogue, exchange views and highlight areas of agreement on climate change and energy security across a broad spectrum of business interests including major developed, emerging, and developing economies; • promote dialogue on climate change, technology cooperation and investment; and • share these views with governments, international bodies, other business organizations, the press, and the public. BizMEF provides responsible business views and practical input to inform deliberations in the United Nations Framework Convention on Climate Change (UNFCCC). BizMEF has set as its objective the enhancement of substantive business engagement in the UNFCCC. In our view, the effectiveness and sustainability of the UNFCCC and its Paris Agreement depends on ensuring a place at the table for the private sector as an important societal partner in next steps for the Paris Agreement. MajorEconomiesBusinessForum.org The United States Council for International Business (USCIB) advances the global interests of American business both at home and abroad. It is the American affi liate of the International Chamber of Commerce (ICC), Business at OECD (BIAC), and the International Organization of Employers (IOE). It is also a U.S. business partner of BizMEF. USCIB offi cially represents U.S. business positions in the main intergovernmental bodies and vis-à-vis foreign business communities and their governments. USCIB addresses a broad range of policy issues with the objective of promoting an open system of world trade, fi nance and investment in which business can fl ourish and contribute to economic growth, human welfare and sustainable development. USCIB formulates its positions working with business experts from its membership of 300 global corporations, professional fi rms and industry associations. It advocates these positions to the U.S. government and to intergovernmental organizations such as the OECD, the WTO, the ILO and other bodies in the UN system. USCIB has followed and supported the UNFCCC process since prior to COP 1 and is committed to its success. USCIB.org Businessfor2030.org 2 3 EXECUTIVE SUMMARY Achieving the ambitious, aspirational long-term goals of the Paris Agreement will require a major increase in effort by all nations – and the business community in all its diversity – in reducing greenhouse gas emissions, developing and deploying technologies, delivering fi nance and investment, building resilience and pursuing adaptation. Indeed, it is becoming clearer and more broadly recognized that meeting even the objectives proposed under the initial tranche of Nationally Determined Contributions (NDCs) covering the period through 2030 for GHG reductions – and other matters such as fi nance – under the UN Framework Convention on Climate Change’s (UNFCCC) Paris Agreement will be very challenging. Current UNFCCC and Paris Agreement negotiations to complete development of the “Paris Rule Book” are vital to implementing the agreement as soon as possible. Yet completing the Paris Rule Book will not guarantee long-term success. Clear and effi cient rules, e.g., for transparency and markets, will contribute to building confi dence and closing gaps, but ultimately the Paris Agreement will require nations to agree to and implement ever stronger targets in the future. This will demand mobilization of approval and effort across broad segments of business and civil society as well as government. Based on discussions with business and government delegations involved in the UNFCCC process and working to implement the Paris Agreement, this report will recommend that Parties enhance processes under the UNFCCC and Paris Agreement to consult with and engage representative business organizations and employers International cooperation for both near-term organizations to consider how to actions and long-term transformation to draw from their experience and expertise to build systems that can address climate change lacks necessary national accelerate the capability of society and international governance and procedures to undertake transformational to more fully engage the private sector. change at a scale and pace that better meets the aspirations of the Paris Agreement. A proposal for the development of a Business Platform: Just Transition to Transformation to serve as an interface between representative business organizations and the UNFCCC is set out in Annex 1 of this report. International cooperation for both near-term actions and long-term transformation to address climate change currently lacks necessary national and international governance and procedures to more fully engage the private sector. The Paris Agreement and UNFCCC structures can and should be improved and linked to refl ect not only public sector actions and resource deployment, but also to seek out and tap the expertise, implementation, experience and investment of the private sector in all of its diversity and through the entire life-cycle of assessment, policy consideration, implementation, assessment and renewal. This will assist Parties to recognize and overcome existing barriers and seize opportunities, without compromising their essential role as decision makers in the Party-led Paris Agreement. There has been relatively little attention to this crucial relationship between business and governments for climate implementation at national and global levels. By and large, it has been taken for granted. Yet, fi rst experiences with NDC implementation, and current discussions relating to the Talanoa Dialogue and Global Stocktake provide some examples of how national governments are already interacting and cooperating with business in operationalizing, resourcing and assessing NDCs. These examples and the experiences set out in this report show the diversity of approach, and offer potential models for collaborative policy interactions that can strengthen implementation so that the global community moves from near-term transition to transformation. 4 Dedicated “platforms” under the UNFCCC are already under development to address particular concerns and contributions by other specifi c constituencies, e.g., for women and gender, and for indigenous peoples, and greater attention to and recognition of issues for labor pertaining to “just transition.” Building on this recognition and willingness to consider unique contributions of other constituencies, the time is right to consider a consultative platform to draw from and refl ect business considerations. These considerations would include and go beyond those identifi ed in “just transition” involving workers, to encompass the various roles of the private sector to accelerate transformational change. This report’s interviews and survey responses also suggest a number of design attributes to encourage and incentivize public-private consultation and joint action. Such a business platform would enable better cooperation of government, local communities, labor and society to identify and, at a minimum, begin to discuss ways to enhance cooperation to address challenges of deploying advanced technology systems and infrastructure at a pace and scale to make a difference globally, while also addressing related issues such as poverty alleviation, energy access, employment and the needs of local and regional communities. INTRODUCTION & SCENE SET “National governments cannot do it alone. Everyone—including those at all levels of government, as well as business leaders, investors, and civil society—must contribute. This calls for a new form of inclusive multilateralism—one that can also be applied to achieving the Sustainable Development Goals, which complement the Paris Agreement’s commitments.1” The UNFCCC seeks to devise approaches to limit human impacts on climate that in turn touch and infl uence everything from eco-systems, food and water, oceans and biodiversity to energy access and mix, development, trade, investment and job markets. Yet, by and large, the UNFCCC so far affords only limited attention to those economic and social elements, and has at times been reluctant to increase input from those societal partners in the best position
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