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Trends and Challenges of Climate Change Negotiations

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Trends and Challenges of Climate Change Negotiations www.pwc.com Trends and challenges of climate change negotiations Intelligent growth Interview with Christiana Figueres, the United Proposals to drive a Nations climate chief (Executive Secretary of new model of economic growth in Spain, and the the UNFCCC). transformation to a low carbon economy. Christiana Figueres, The United Nations climate chief (Executive Secretary of the UNFCCC) “The major challenge in Durban will be to implement the agreements reached in Cancún” PwC is at the forefront of an initiative to promote a new growth model in Spain, one of the key pillars of which is the transformation to a low-carbon economy. Pedro Larrea and Maria Luz Castilla, partner and director at PwC, had the opportunity to speak first-hand with Christiana Figueres, the global climate change chief. 2 Trends and challenges of climate change talks “The major challenge in Durban will be to implement the agreements reached in Cancún” Is it only a question of loss state come together to added depth and strength to industrialised countries and of media interest? Is exclusively discuss these the specific issues that had many developing countries climate change really issues. been discussed, and up to a were formally set out at that slipping in priority on the certain point agreed, in time. political agenda? Although it is true that not all Copenhagen. countries were able to come Although no heads of state CF: Personally, I do not to an agreement, the results At Cancun, almost all were present at the meeting believe that Copenhagen was and conclusions of countries, except Bolivia, and media coverage was a failure. Rather, I think that Copenhagen gave the basic agreed to form an light, Cancun was no less several important steps were shape to the issues, which institutional framework to important politically and taken at the summit. Firstly, were then further negotiated support the efforts of all practically. It was never climate change was placed in in Cancun. countries regarding intended to be a summit of an elevated position on the mitigation of climate change heads of state. In that respect, agenda of national leaders. Cancun was an undeniable and adaptation. In addition, I believe that climate change Never before had all heads of success. The conference the objectives of all has not lost political Trends and challenges of climate change talks 3 Christiana Figueres, The United Nations climate chief (Executive Secretary of the UNFCCC) importance. Quite the The fight against climate everyone is aware of the contrary: the rains in change has gone from the issue, and civil society knows Pakistan and the floods in media spotlight to the what is going on. Anyone can southern Thailand are clear ‘machine room.’ Does this look out of the window and examples of the climatic mean the struggle is now see the effects of climate impacts occurring in our less flashy but more change. Although answers world. These events effective? are slow in coming, the issue demonstrate that we must has been placed on the continue to deal with this CF: I would say that not only agenda of all public and issue and inevitably maintain is the struggle against climate private sectors, and of society the political importance the change in the machine room, at large as well. matter has had since but it is in our own living Copenhagen. rooms as well. Today, almost 4 Trends and challenges of climate change talks “Japan’s nuclear crisis was not caused by climate change. However, it will affect those countries with plans for nuclear energy: they must invest in security measures and fill the temporary gap with other energy types” The nuclear crisis in Japan consequences we will see as they will most likely be and some of the Japanese ever more frequently, and to required to invest in new government’s declarations the same degree, from security measures. In this have given rise to concerns, climate change. case, countries will have to especially considering that define how to fill the energy that government hosted the What is still unclear is what gap. This will affect Kyoto conference. Has this effect the detection of these mitigation targets: for been a kind of coup? What security shortfalls in Japan’s example, if renewable impact might this have on nuclear industry will have, energies can be used as a the entire process? especially bearing in mind substitute at least during the that it is one of the sectors transitional period, we will CF: It is important to clarify that applied the greatest make great headways in our that neither the earthquake amount of earthquake safety goals. In contrast, if the and tsunami nor the nuclear measures. We do not yet energy gap is filled with fossil crisis that immediately know what effect this will fuels (which are the most ensued were caused by have on those countries that accessible and cheapest), climate change, but by had planned to implement or mitigation efforts will be unrelated tectonic step up their nuclear energy hindered. However, it is too movements. However, it is production. soon to know what route each interesting to note that the country will take. impacts on the Japanese There could be delays in people and especially their bringing on nuclear energy as economy are similar to the planned in certain countries, Trends and challenges of climate change talks 5 Christiana Figueres, The United Nations climate chief (Executive Secretary of the UNFCCC) Looking to Durban, what Adaptation Committee. In that regard, participating These areas must be are the main issues on the countries agreed the tasks to discussed bearing in mind a table? What issues are The Cancun Summit also put be addressed throughout the political and economic being worked on following forth the mitigation coming years, in order to viewpoint, both in terms of the Cancun Agreement? commitments of both study whether the mitigation industrialised nations and developed and developing efforts are sufficient to keep developing countries. CF: Three key aspects must countries. This is one of the global temperatures from be addressed in Durban. pending issues that must be rising more than 2ºC. In fact, Firstly, all Cancun’s addressed in Durban, and we already know that the institutional agreements, that will clearly shape the commitments we have on the which will be designed in future of the Kyoto Protocol. table will not be enough. 2011 and approved at the end Another major issue to be of the year in Durban: the Lastly, work must be done on addressed relates to the legal Green Climate Fund, the other important aspects, such nature of mitigation efforts in Climate Technology as the medium and long-term developed and developing Mechanism, and the global mitigation goals. countries. 6 Trends and challenges of climate change talks Carbon markets Investors are deeply much as possible. In that market currently in place. concerned about what will regard, one of the key happen in carbon markets questions is the role of the Consequently, I believe that post-Kyoto. What possible market. It is difficult to know the question here is not solutions can be found for exactly what the rules will whether or not we will have the Kyoto Protocol after be, and whether there will be markets, but rather how we this period, and what a centralised market, such as will work in this market. And, influence might they have at present, whether there will of course, market operators on carbon markets? be a universal market in should know the rules of the which all participants play game as soon as possible in CF: There is a certain degree according to the same rules order to set out their long- of scepticism and wariness in and under the same term plans. the market, given that the regulatory bodies, or whether process has been drawn out we will have numerous It’s important to understand over a number of years. mechanisms to complement that this is not a natural However, looking at the the existing structure. Some market simply arising from long-term picture, two proposals have even called the law of supply and inescapable aspects come to for bilateral markets that demand, but rather from a light. would be structured rather political agreement. That is differently from the how the carbon market was With respect to mitigation, multilateral and universal created, and although it may both in developed countries, which create demand in the carbon market, and in developing countries, which supply the market, all signs indicate that both groups “The carbon market was born must make much more out of a political agreement, ambitious efforts than they have to date. and though it later came to operate as a real market, the In addition, these countries must join forces to lower the next chapter will also have to costs of global mitigation as come out of a political path” Trends and challenges of climate change talks 7 Christiana Figueres, The United Nations climate chief (Executive Secretary of the UNFCCC) eventually operate as a real CF: The Clean Development Executive Board. weight of its own success: market, the next chapter in Mechanism is still being neither the Board nor the carbon must also be moved shaped, and although it was In fact, the Copenhagen Secretariat were prepared for through political efforts. created with just a few short Summit generated important, the large number of projects paragraphs in the Kyoto specific instructions for the added. Fortunately, since 31 The approval procedures Protocol, there are currently Board on what aspects to December 2010, we have and the very effectiveness of over 3,000 registered improve.
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