Markets working to support sustainable development

In the News: December 19th 2014

19 Dec 2014

Here you will find a round-up of all the latest news and events in mechanisms from around the world. 

Funds

  • Amidst the ongoing UNFCCC climate negotiations, the most recent round finishing in Lima, 30 of the most developed nations have pledged just over $10 billion USD to the Green Climate Fund, with Australia making headlines for a late injection of funding. IIED Director Camilla Toulmin said “I hope this momentum continues to push the Australian government in the right direction”. Read her full response here.
  • Read a full analysis of the Green Climate Fund here, including details of the negotiations over how proposals will be assessed, who will disperse the funds and what split there will be between adaptation and mitigation.
  • A funding boost to the Climate Investment Fund (CIH) of $765 million USD has brought total pledges up to a total of $8.3 billion USD, according to Reuters. The CIH, which garners funding from several development banks and a number of donor countries will be able to provide further support through its dedicated Clean Technology Fund and continue to expand its adaptation program. 

           

COP20 meeting in Lima. Source: Wikipedia

Carbon Pricing

  • The Chinese National Development and Reform Commission have released details of the carbon trading scheme which will cover the country by 2020. At first, permits will be dispensed to companies for free, but the NDRC will eventually impose a change on the bulk of permits. For every tonne of carbon that companies fail to submit a permit for, there will be fines of 300 yuan ($48.50). Some regional control will be given to regional government, with officials able to beef up schemes in their province, by including more sectors or allowing less permits. More details will be released in coming months.
  • The International Energy Agency has argued that a dramatic drop in oil prices presents an opportune time for governments to put in place carbon pricing and abolish subsidies for fossil fuels. With prices decreasing to $70 USD a barrel from a high of $115 USD a barrel in June, IEA executive director Maria van der Hoeven said they could consider measures that “would have been unthinkable a year ago”.                                                                                                                                                                                 

 Sustainable Reporting

  • A coalition of Europe’s leading environmental and civil society NGOs have argued against calls made recently by the BusinessEurope lobby for a rolling back of environmental regulation. In a letter to the European Commission President Jean Claude-Juncker and Vice-President Frans Timmermans, the grouping, which included organisations such as Greenpeace, Transparency International and Oxfam International stated their belief that European companies could only innovate and succeed into the future by embracing         “strong social, labour, consumer and environmental protection measures”.
  • British Supermarket Marks and Spencers reported that 63 percent of their products have a ‘Plan A’ eco or ethical rating. This includes chocolate products using UTZ certified cocoa, locally made produce coming from factories with high energy and water efficiency, and a new fleet of nitrogen delivery trucks.

 

 

Deforestation in the Amazon. Source: Wikipedia

 

Forestry

  • Amongst the UNFCCC climate negotiations in Peru, a new report was released detailing the extent of large scale deforestation across the world, and the cumulative effect that the expansion of extractive industries into forests has on global climate change. The report analysed how indigenous communities operate best-practice custody of forests, only to often be displaced by mining or forestry operations.
  • The Global Environment Facility is hoping to take on a new role coordinating green supply chains, for example in the forestry sector, working with governments, small farmers and large companies like Unilever and Nestle SA. As CEO Naoko Ishii argued: "What is missing is maybe somebody that brings every stakeholder together" to tighten loopholes in supply chains.
  • A Brazilian indigenous leader has spoken to Democracy Now during proceedings of the COP20 meeting in Lima to criticise how some Brazilian states are operating within the UN REDD+ programme. He was particularly critical of the lack of consultation with local indigenous people, and further arguing that many communities are not being allowed to fish, or cultivate food on the REDD project areas. Read more of the transcript here