Coverage of Selected Side Events at the
Lima Climate Change Conference - December 2014

This side event, moderated by Helmut Hojesky, Ministry of Agriculture, Forestry, Environment and Water Management, Austria, focused on the recently released Austrian Assessment Report, compiled by the Austrian Panel on Climate Change (APCC), which provides a consolidated overview of research on climate change in Austria. Participants heard high-level statements and presentations on the findings and potential actions stemming from the report.

Andrä Rupprechter, Minister of Agriculture, Forestry, Environment and Water Management, Austria, welcomed the joint, three-year effort in which over 200 Austrian scientists developed the country’s first progress report. He noted the Report summarized the current state of knowledge on the characteristics of climate change in Austria, its consequences, and mitigation and adaptation strategies. Rupprechter reiterated the need for countries to become carbon neutral and to phase out fossil-fuel use through a stepwise approach.

Flavia Nabugera Munaaba, Minister of State for the Environment, Uganda, reminded participants that the majority of Ugandans are subsistence farmers who experience climate change impacts very keenly, with a high dependence on fuel wood and seasonal rain cycles. She reported on receding snow on mountain peaks, and emphasized the need for monitoring and research to establish baseline data.

In a keynote presentation of the Report, Georg Kaser, University of Innsbruck, highlighted that in recent history, temperatures in Austria had risen to double the global average, positing that this resulted from a combination of more days of sunshine, resultant altered air pressure systems, warmer nights and fewer cold days. He noted that not all research fields are equally represented in the Report, and lamented prevailing global warming scepticism among policy makers and the scientific community. Kaser regretted insufficient responsibility towards less developed countries, and urged transfer of knowledge, methodologies and models.

On potential consequences of climate change in the mountainous country, Klaus Radunsky, Federal Environment Agency, Austria, predicted significant increases in landslides, mudflows, rockfalls and forest fires, and warned that without increased efforts to adapt to climate change, Austria’s vulnerability to climate change will increase in future decades. He called for policy initiatives at all levels in which participatory planning processes play a role, and eliminating barriers to societal transformation.

During discussions, participants deliberated: additional avenues for monitoring and research in the future; challenges in communicating science to policy makers; the potential of mitigation activities in Austria; ways to curb emissions in the future; local climate strategies across the region; and the potential for sharing best practices and research at local and sub-national level.

Africa Day at COP 20 aimed to provide a platform and opportunity to critically examine the implications of the post-2015 climate change agreement for the continent, and how to enhance the involvement of women and youth in climate change adaptation.  The event was moderated by Olushola Olayide, Office in Charge, Division of Environment, Climate Change, Water and Land Management, African Union Commission.

In introductory remarks, Fatima Denton, Director of Special Initiatives, UN Economic Commission for Africa, highlighted the green development vision articulated by African leaders in the last decade, citing the Clim-Dev Africa Programme as an African-led process to strengthen the knowledge base for climate-smart development and disseminate it at community level. She asserted that the fight against climate change can be won through bankable projects.

Mohamed Gharib Bilal, Vice President of Tanzania and Coordinator of the Committee of the African Heads of State and Government on Climate Change (CAHOSCC), stressed that Africa needs a legally binding climate agreement that places issues of adaptation, finance and technology transfer at the forefront.

During a panel discussion moderated by Alex Rugamba, Director, Energy, Environment and Climate Change Department, AfDB, panelists highlighted key issues for Africa on the road to Paris.

Nagmeldin El Hassan, Chair, African Group, discussed some outstanding issues in the negotiations. Noting that the Fifth Assessment Report (AR5) of the Intergovernmental Panel on Climate Change (IPCC) clearly identifies Africa’s climate-related vulnerabilities, he highlighted that gaps in parties’ current commitments are a source of concern as they fall far short of the requirement to “keep Africa safe” in a 2°C world. He said that Africa’s concerns have been enhanced by developed countries’ focus on mitigation and voluntary Intended Nationally Determined Contributions (INDCs).

Jessica Eriyo, Deputy Secretary General, East African Community, recalled her experience as one of two African ministers in Bali who “forced their way” into the closed contact group working on a compromise agreement. Stressing that climate change is a human-rights issue because it affects the livelihoods of Africans, she urged negotiators to remain firm and work as a team to ensure that the Lima outcome reflects their concerns.

Tosi Mpanu-Mpanu, Alternate Green Climate Fund (GCF) Board Member for the Democratic Republic of Congo, noted that a key objective of the GCF is to “level the playing field” in the climate finance landscape, saying that half of the US$10 billion GCF funding has been earmarked for adaptation activities, with a priority for Africa and Small Island Developing States. Among other opportunities for Africa, he highlighted, inter alia: equal representation for GCF Board Members from developing countries; the strong focus on direct access and country ownership; a fast track option for implementing entities that are already accredited to other multilateral funding mechanisms; and the GCF-wide gender policy and action plan.

Speaking on initiatives to empower women and youth in climate activities, Alcinda António de Abreu, Minister for Coordination of Environmental Affairs, Mozambique, highlighted the advocacy role of the African Union and Regional Economic Communities, noting it facilitates the adoption of inclusive policies at the national and subnational levels. Discussing best practices in this area in Mozambique, she highlighted a national drive to educate youth and communities to care for nature, which oversees the planting of more than six million trees every year.

During discussions, speakers highlighted, inter alia, the need to: channel climate investments to the subnational level to ensure full participation of affected communities; promote awareness on workable adaptation strategies for policy makers; and focus on readiness activities to ensure Africa has the requisite policies and projects in place once the GCF becomes fully operational.

Recognizing that climate change is multiplying existing threats to sustainable economic growth and people’s wellbeing, this side event, moderated by Niki Mardas, Deputy Director, GCP, explored dependencies on natural resources and the nexus, synergies and trade-offs between water, energy, food and health security. Participants were further informed about work by the GCP and the Centro International de Agricultura Tropical (CIAT), on the Amazonia Security Agenda, and the publication of a related report.

Mardas noted that in an increasingly hyper-connected world, nexus approaches allow people to think of solutions rather than simply describing the problems. He briefly introduced the GCP and its objectives, and presented a short GCP animation explaining climate change challenges.

Noting that security issues need to be “put on the table” and passionately promoted, Yolanda Kakabadse, International President, WWF and founder of FFLA, underscored that humans face a security threat and need solutions to decrease related risks. She said that the nexus is evident and the focus has to be on security and its meaning for people from different countries and sectors.

Emma Torres, Senior Adviser at the Regional Bureau for Latin America and the Caribbean, UNDP, stressed that, in terms of the necessary transformation in the Amazon, there are no models to be followed and solutions need to be innovative and creative. She welcomed data and information to “go deeper into the science and get more knowledgable,” and underscored that universal goals arising during debates on sustainable development goals are more evident in regions like the Amazon or the Congo basins.

Virgilio Viana, Co-Chair of the Regional Sustainable Development Solutions Network for the Amazon Regions and Superintendent General of the Fundação Amazonas Sustentável, noted that the report, co-authored by GCP and CIAT, collects scientific information that may be incomprehensible to many, and “puts it in a story” to change business-as-usual scenarios in the Amazon. He highlighted the Amazon as a service provider, noting it is also important for indigenous peoples and holds intrinsic value.

Keith Anderson, Switzerland, underscored the importance of regional approaches to address security and noted that resources, particularly water, constitute themes that have no boundaries. He highlighted the need to recognize natural capital as real wealth, necessary for human survival.

Andrew Mitchell, Founder and Executive Director, GCP, stressed the “massive misevaluation” of natural resources in the world economy, saying that the financial sector “is enjoying a huge free lunch on nature.” He described the ways environmental issues are connected at the global level and noted that the solution for the problem of deforestation does not lie in forests but inside the financial capitals of the world.

Pedro Gamio, Ministry of Energy and Mines, Peru, described efforts in Peru towards reducing emissions and increasing the share of renewables in the energy mix. He stressed that financial support is not a panacea and underscored the need for advanced technology transfer, infrastructure and civil society empowerment.

At this event, moderated by Jo Tyndall, Climate Change Ambassador, New Zealand, panelists outlined: support available to countries undergoing subsidy reform; opportunities to strengthen the process and direct savings towards investment in sustainable energy systems; and how countries can utilize mitigation of emissions from subsidy reform within the UNFCCC process, including through post-2020 national contributions. The Friends of Fossil Fuel Subsidy Reform then launched a GSI publication on the Impact of Fossil Fuel Subsidies on Renewable Electricity Generation.

On the link between subsidy reform and the shift towards a low-carbon future, Simon Buckle, Environment Directorate, OECD, stressed the price distortions caused by fossil fuel subsidies on market prices of energy, noting that market prices of fossil fuels fail to take into account negative social externalities, and prevent the shift to a low-carbon future. He underscored transparency and availability of data as key measures to promote subsidy reform, drawing attention to the OECD’s Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels.
 
Jeremy Leggett, Founder and Chairman, Solarcentury, noted that as renewable energy (RE) costs decrease, there is an increasing “pushback from the energy incumbency,” explaining that the RE subsidy regime is threatened by pressures from oil and gas lobby groups. He noted that change to the energy sector will depend on how subsidies are regarded in the US shale gas discussion. He highlighted opportunities for scaling up RE, including a recent announcement by the Bank of England of a probe into whether fossil fuel companies pose a threat to overall financial stability.

Leonardo Martinez-Diaz, Treasury Department, US, described fossil-fuel subsidies as unfair and regressive, noting that lower income households end up paying more for fuel under this regime. Noting the importance of preparedness for countries considering fossil-fuel subsidy reform, he highlighted the need to incentivise the RE sector including through establishing the requisite regulatory and legislative frameworks to support long-term investments in the sector. He noted the importance of transparency through peer review in the subsidies reform arena, highlighting the US and China’s announcement to participate in a G-20 peer review process addressing fossil-fuel reform.

James Close, Director, Climate Change Group, World Bank, underlined reinvesting the savings from subsidy reform into social development programmes including education, highlighting the example of Indonesia. On measures to promote reform, he highlighted the Bank’s Energy Sector Management Assistance Program, which provided information on the rate and pace of reform. He said the Program would also assist governments in understanding measures that can be put in place to cushion populations from rising energy prices during the shift towards a low-carbon future.

Laura Merrill, Global Subsidies Initiative, IISD, stressed that with decreasing oil prices, the time for fossil-fuel subsidy reform is now. Illustrating the effects of removing subsidies to fossil fuels by highlighting a reduction in smoking when the cost of cigarettes increases, she noted that an increase in the price of fuel can drive innovation and energy efficiency. She called for levelling the playing field so that RE can compete with fossil fuels and emphasized potential profits by introducing value-added taxes on fossil fuels. She stressed that in order to succeed in subsidy reform, countries need to: get the prices right; communicate with the population and build multi-stakeholder support; and mitigate fuel prices.

Rachel Kyte, Vice President and Special Envoy, Climate Change Group, World Bank Group, noted that in order to send a clear signal in Paris on a low-carbon pathway, it is important to get rid of threats to the poor and to decarbonization, calling fossil fuel subsidy reform the “poster child” for this effort. She called on participants to celebrate elected leaders who can publicly describe the need for policy reform, describing them as “the heroes we need to celebrate.”

Doris Leuthard, Federal Councillor, Head of the Federal Department of the Environment, Transport, Energy and Communications, Switzerland, urged solutions for phasing out fossil-fuel subsidies, finding sustainable alternatives, and creating a better market price for energy. She called on leaders to create a world that encourages economic growth without an annual increase on energy consumption.

Léna Spinazzé, IDDRI, and Margarita Astralaga, Regional Director, UN Environment Programme (UNEP) Regional Office for Latin America and the Caribbean, moderated this event, which brought together policy makers and think tanks from Latin America.

In the first roundtable on knowledge developments on climate and prosperity policies, Spinazzé highlighted the importance of the collaboration between IDDRI, UNEP and the ECLAC, which promotes exchanges between think tanks in Latin America and the Caribbean on key issues related to the climate change negotiations.

Laurence Tubiana, French Ambassador for Climate Change, lauded the collaboration, noting the strong calls for injecting new ideas into the climate change negotiations to spur progress. She proposed that Peru jointly hold the COP Presidency with France until December 2015 to show Latin America’s pivotal role in the negotiations.

Calling for a compromise among those who strongly support the principle of common but differentiated responsibilities and those who support a more equitable approach to addressing climate change, Alicia Bárcena, Executive Secretary, ECLAC, stressed consideration of the economics of climate change at the highest levels of governance as an impetus for transformative change at the national and regional levels. She launched the Economics of Climate Change publication, noting that it provides climate change data on countries in the region.

Waldemar Coutts, Ministry of Foreign Affairs, Chile, highlighted his country’s recent alliance with Brazil and Peru to strengthen the Latin American voice in the negotiations. He drew attention to the alliance’s political declaration, which stresses the importance of South-South cooperation, highlighting the need for the post-2015 agreement to contain the requisite means of implementation, as well as capacity-building support, and provide access to information on climate change.

Sam Bickersteth, CEO, Climate and Development Knowledge Network, shared his organization’s experience in connecting knowledge to action, highlighting the development of a heat-preparedness plan of action in India. He recognized the importance of producing knowledge that is shared with the local community who then adapt the knowledge to suit their own needs.

In the second roundtable on ideas from the Latin American and Caribbean region for the negotiations, Astralaga called on think tanks to share their work on how to move the negotiations forward. Hernán Carlino, Climate Studies Center, Fundacíon Torcuati Di Tella, Argentina, stressed that Spanish materials are absent from the growing body of literature on climate change, highlighting this as a barrier for Spanish-speaking people and negotiators. On climate finance, he stressed initiating discussions on financing post-2020, noting that resources have to be available in the long term in order to drive transformative change.

Maria Paz Cigaran, Libelula, Peru, spoke on reconciling economic development with low-carbon growth, noting the need to consider people, information, rules and climate supporting actions. On rules, she prioritized Latin America’s contribution to the debate given the diversity of perspectives in the region, and urged readiness on the ground to promote faster implementation.

René Castro, Tropical Agricultural Research and Higher Education Center (CATIE), noted that Latin America’s emissions from agriculture and land-use change are above global averages. Highlighting that the move towards carbon neutrality in the region is possible, he stressed supporting the New York Declaration on Forests; using national plans on adaptation and mitigation for capacity building; and finding synergies between adaptation and mitigation.

This side event, moderated by Naoko Ishii, CEO and Chairperson, the GEF, and Andrew Steer, President and CEO, WRI, shared insights on how to accelerate the sustainable cities movement by bringing together leaders from cities, the private sector, national government and multilateral development banks.

In a scene-setting introduction, Ishii noted that cities need to be at the heart of the transformation to a low-carbon economy because of the rapid rate of urbanization globally, and cities’ contribution to energy-related GHG emissions. She highlighted the GEF’s US$100 million integrated programme on sustainable cities, which aims to create a knowledge-sharing platform for city managers and demonstrate innovative models of sustainable urban management and high impact investment.

Xie Zhenhua, Vice Chairman, National Development and Reform Commission, China, discussed China’s vision for low-carbon urban development, which is being piloted in 52 cities. He said the Chinese government ensures implementation through a combination of punitive measures and incentives, including setting caps on overall energy consumption, carbon intensity and environmental conservation, while also providing capacity-building support through a “pioneer demonstration zone for ecological progress.”

Introducing the panel, Steer stressed that the battle against climate change will be won or lost in cities, saying what is needed to chart a sustainable path is “a vision, an ability to build coalitions between citizens and the private sector, and a determination to get it done with good governance.”

Logie Naidoo, Councillor and Speaker, eThekwini Municipality, South Africa, discussed sustainable practices in Durban, noting the challenge is to put in place an equitable and sustainable development model with communities at the center. Describing lessons learned, he highlighted the importance of: committed and capable leadership; a landscape-planning approach to provide the ecosystem services on which cities depend; and prudent fiscal management, which helps in attracting climate investments.

David Cadman, President of the Global Executive Committee, International Council for Local Environment Initiatives (ICLEI) - Local Governments for Sustainability, described the US-China collaboration as “one of the most exciting things to happen at COP 20,” noting that if China can transform itself into a low-carbon society, the rest of the world will follow suit. Welcoming the GEF’s recognition that cities are the future, he said that urban planners have an opportunity to follow the good example set by cities like Copenhagen, Curitiba, Vancouver and Durban.

Harry Verhaar, Head of Global Public and Government Affairs, Philips Lighting, discussed how business models are changing, noting that cities offer a powerful platform to make low-carbon growth a reality. Noting that it is not too late to build more inclusive and socially-driven cities, he suggested three key ways to leverage the GEF’s sustainable cities programme: accelerating energy efficiency through public-private partnerships; scaling up the Global Cities Institute initiative to develop performance indicators for cities; and introducing new city infrastructure to leapfrog today’s challenges.

During the ensuing discussion, participants asked questions on: standardizing renewable energy products; developing products that are resistant to power surges; finding grid solutions to flooding and lack of urban planning; and adequately defining “green buildings.”