Climate change and the G8 meeting, what should happen

As the G8 gathers in Japan this month for the Hokkaido Summit they have been presented with some important documents from the business community.

These publications aim to support political momentum towards next year’s global climate change summit in Copenhagen.

The World Economic Forum (WEF) and World Business Council for Sustainable Development (WBCSD) presented a statement on 20 June 2008.

Signed by a group of international business leaders, the statement sets out their detailed vision of a low carbon economy for the first time.

Likewise, Tony Blair and The Climate Group teamed up on 27 June to present a political leader’s guide "Breaking the Climate Deadlock: A global deal for our low carbon future".

Designed to ease tension around the urgent and complex political discussion ahead, this second publication suggests 10 key building blocks essential for a successful global deal on climate change.

The growing consensus on the urgency and scale of the required response to climate change has seen industry groups become far more vocal in communicating what they would like to see from an international policy framework on climate change.

Current ambiguity over the future of climate change legislation means that businesses are unable to plan coherently for the future resulting in dangerous paralysis.

Early adopter benefits

Some leading businesses anticipate and pre-empt regulation and enjoy first-mover advantage.

A prime example is BP, who took a leading step when setting up its internal carbon trading system before the wider UK, and later EU, Emissions Trading Schemes (ETS).

Despite demonstrating that BP not only met its target – to reduce its internal emissions of greenhouse gases by 10 per cent below 1990 levels by 2010 – but exceeded it nine years ahead of schedule and with no net economic cost, companies taking proactive steps are still in the minority.

Giving industry clear 'rules' for a low carbon economy will drive action from mainstream businesses – not only creating a level playing field but encouraging innovation required to tackle the problem.

Mainstream businesses can already see that policies are on the horizon and inevitably industry leaders wish to influence them.

Such leads are welcomed by policy makers and help frame the debate.

For instance, growing corporate demand for voluntary offsetting (a market expected to be worth USD$4bn by 2010) has a significant role to play in reducing emissions at the speed required while politics and legislation catch up.

Open consultations by governments also attract substantive input from trade associations and business groups. Their role in informing governments where the biggest emissions cuts can be made across their value chain increases the chances of effective regulation.

Many industry groups, at the national and sectoral level, have spent time and money understanding their impact on climate change and the most beneficial response, both in terms of emissions and from an economic stand point.

Surety needed

The Confederation of British Industry (CBI) landmark report “Climate Change – Everyone’s Business”, when it launched on 26 November 2007, called for politicians to give much greater priority to climate change legislation.

It demonstrated the readiness of British industry to rise to the challenges of working with government and consumers to deliver a low carbon economy.

A further publication, “SMART 2020: enabling the low carbon economy in the information age” was published on 20 June 2008 jointly by The Climate Group and the Global e-Sustainability Initiative (GeSI).

The study revealed that smarter use of technology in homes and industry could reduce annual global emissions by 15 per cent by 2020. This equates to energy efficiency savings worth over EUR 500 billion to global businesses.

Following a period of stakeholder consultation on the findings of SMART 2020, The Climate Group and GeSI will develop a set of policy recommendations. These will be shared with the EU government in October this year.

This type of quantitative research provides governments with the support needed to make sensible decisions on a more integrated policy framework. This is ultimately required to kick start industry action.

The “Breaking the Climate Deadlock” report The Climate Group published with Tony Blair on 27 June 2008 asks G8 Leaders to focus on the effective common decisions that can be taken now to unleash a new industrial revolution.

The time for national and global policies to unlock the low carbon capital investment and innovation from the commercial sector is now.

In December 2009, at the Copenhagen Climate Summit, world leaders face a fundamental choice about our future.

As a result of the decisions they make, the world will either have a prosperous low carbon future or be left to an uncertain carbon-intensive fate.

With the right leadership from Government, businesses can deliver the technology to help us all save money and live cleaner greener lives. Lets hope government can begin to catch up.


Emily Farnworth is director of corporate engagement at The Climate Group.
efarnworth@theclimategroup.org
www.theclimategroup.org


Useful link:

The CEO Climate Policy Recommendations to G8 Leaders