The third edition of #Innovate4Climate wrapped up in Singapore on Friday, June 7, 2019. Over 1,200 delegates from 82 countries attended a number of events including:
- A high-level summit with three priority themes: battery storage, sustainable cooling, and climate-smart cities;
Over 50 workshops that focused on finance, technology, markets, and resilience;
- An inaugural Pitch Hub Competition for start-ups with climate-smart solutions in urban development with the winner chosen from over 230 applications;
- A bustling marketplace of exhibitors;
- A journalist workshop to support building media capacity for climate issues, and a youth engagement, including a #YouthTakeOver of Connect4Climate’s social media channels;
- and Multiple site visits showcasing Singapore’s leadership in urban sustainability.
This was the first time Innovate4Climate took place Asia. One of the most vulnerable regions globally to climate change, Asia is also home to some of the most exciting opportunities that are arising from bold climate action, whether technology, business models or policy innovations.
The week provided ample opportunities to hear from and exchange ideas with experts, innovators, entrepreneurs and financiers about Asia’s low-carbon, climate-resilient transformation.
Take, for instance, the ‘triple win’ of sustainable cooling. It can improve development outcomes – just halving food loss with refrigeration and food cold chains could feed 1 billion undernourished people globally and cooling is critical to avoid heat-induced losses of productivity that could amount to 6% of GDP by 2050 in some parts of Asia and Africa. At the same time, smarter cooling would also reduce harmful emissions that could otherwise lead to 1°C of global warming on a business-as-usual basis and also generate business opportunities and cost savings in commercial and industrial facilities by installing efficient cooling equipment. Approaches like the bulk procurement deployed by India’s Energy Efficiency Service Limited are driving down costs and boosting the uptake of more sustainable cooling options, vital in a country where air-conditioner market penetration is only about 6% but set to rise fast. A site visit to Singapore’s underground district cooling network – the world’s largest – took Innovate4Climate participants on a tour of the 5 km centralized piping network that serves customers in the Marina Bay financial district.
On battery storage it was clear that far from being a single purpose asset, batteries could have multiple uses, delivering greater value and bringing costs down. Tailoring energy storage solutions specifically to local contexts can also open markets. A combination of leadership and vision, policies and regulatory frameworks, as well as innovative finance and technology will be key to boosting battery storage solutions.
Climate-smart cities will be critical for the safety and prosperity of billions of people. Today, urban dwellers account for just over half the global population. By 2050, almost 70% of the world’s population will live in cities and one third of them will be in Asia. And already many are leading the way in climate-smart innovations, policies and design. Take Guangzhou, a Chinese megacity with a population of over 14 million, which has installed massive district cooling both retrofitting existing buildings and building new commercial spaces. It has also boosted urban livability by promoting the greening of urban spaces and ensuring it is pedestrian-friendly. Singapore’s Semakau landfill – also a site visit for Innovate4Climate’s participants – is the city’s only landfill facility, receiving over 2,000 tonnes of WTE plant ash and non-incinerable waste daily. Thanks to its innovative waste disposal design, marine biodiversity is carefully protected as are the coral reefs along Pulau Semakau’s western shore, and plots of replanted mangroves are thriving.
Singapore also recently launched a carbon pricing initiative. Along with other countries, including South Africa, Argentina, as well as a number of Canadian provinces and territories, this brings the total of carbon pricing initiatives to 57 globally, up from 51 in April 2018 according to the annual State and Trends of Carbon Pricing report launched at Innovate4Climate.
While this is encouraging the update of carbon pricing is not yet at the level needed to drive the ambitious action needed to meet the objectives of the Paris agreement. Better communication of the rational for carbon pricing, and explicit political engagement to build stakeholder support will be critical to accelerate coverage. For the first time, the report also looked at the critical role of implicit carbon pricing, such as fossil fuel subsidies and fuel taxes, that can also help drive climate action.
Discussions around Article 6 of the Paris Agreement highlighted how next-generation carbon markets can reduce the cost of mitigation and increase resource mobilization and global climate ambition.
Green bonds in emerging markets also had a boost during the week with the launch of the Real Economy Green Investment Opportunity (REGIO) Fund. The fund, a partnership between IFC and HSBC Global Asset Management Fund is expected to catalyze at least $500 million to $700 million in multilateral and private sector capital to support climate-smart investments in developing countries—largely through bonds issued by non-financial, or real sector, companies.
As the week came to a close, one message was clear: the climate challenge is significant and urgent, but there are exciting solutions out there that have the potential to transform our economies and deliver cleaner, better and more inclusive growth.
Crop Certification: Going green unlocks global markets for farmers
Over the last 30 years, more and more tea, coffee and cocoa farmers have embraced towards climate-smart and sustainable practices by adopting “certification standards” that help to maintain soil quality, increase productivity and reduce costs. The standards also assure buyers of agricultural commodities that the products in their supply chains are environmentally sustainable.
In July 2020, a milestone was reached when United Nations Environment Programme (UNEP) partner, the Rainforest Alliance, published its new unified standard (certification programme) for production systems that conserve biodiversity and ecosystem services. The standard applies to over 5 million hectares of tropical farmland, impacting the livelihoods of over 2 million farming families.
“Certifications like Rainforest Alliance have played an important role in driving sustainable supply chains at both the production and consumption end,” says Christopher Stewart, Global Head of Corporate Responsibility and Sustainability, Olam International. “We have partnered with the Rainforest Alliance for many years and highly valued their sustainability expertise and implementation skills to help us advance our farmer programmes. A stamp-like Rainforest Alliance can motivate consumers to buy sustainably produced products and support farmers.”
The numbers prove that farmers also find benefit in getting certified. Data from 2019 indicates that more than 209,000 farmers participated in the Rainforest Alliance certification scheme in Côte d’Ivoire, Ecuador and Ghana, producing more than 200,000 tonnes of cocoa, enough to make 13 million 100g chocolate bars per day.
In the same year, companies bought enough Rainforest Alliance certified tea to produce 330 million cups of tea every day, with certified production involving 936,000 tea farmers and 734,000 workers. Top producing countries were India, Kenya and Sri Lanka. Data on 2020 will be published in March-April 2021.
In Ghana, where cocoa is the nation’s main export, bringing in over $3 billion in 2018, UNEP and the Rainforest Alliance joined forces with Olam to enable uptake of the Rainforest Alliance’s sustainable agriculture certification scheme in the Bia-Juabeso region.
Taking a landscape approach, which seeks to balance competing land use demands in a way that is best for human wellbeing and the environment, the project was one of the first initiatives in Ghana to conduct farm mapping and registration of trees on farmland, mobilizing 2,800 farmers in 34 agricultural communities to conserve the local environment and ecosystem services on which future cocoa productivity depends.
The approach has since been replicated across three different landscapes in Ghana, in collaboration with Olam, funded through the United Kingdom Government’s Partnership for Forests, and most recently a new partnership with the European Union.
UNEP and the Rainforest Alliance, with backing from the Global Environment Facility, have been supporting farmers from Ghana to Vietnam to take advantage of certification schemes – building rural prosperity, while also developing green supply chains and delivering healthy food and other agricultural products to local communities.
Greening the tea industry
In China, India, Sri Lanka and Vietnam the partnership worked with tea growers to reduce the use of agrochemicals for weed control, reducing costs to farmers and improving soil health.
The project taught smallholder tea farmers how to distinguish harmful weeds from harmless ones that can be left in the ground. This helps protect from erosion, improves soil organic content through mulching (a powerful source of plant nutrition as well as a carbon storage agent) and significantly improves soil moisture – all key for crop production. With fewer weeds to extract, farmers can remove harmful species manually, avoiding poisonous herbicides, and reducing the costs of maintaining a healthy crop.
The future of certification
Building on the successes of these initiatives, the Rainforest Alliance rolled out its enhanced Certification Programme in July 2020.
“After two years of far-reaching consultation with farmers, companies, non-government organizations, governments, and researchers – with input from more than a 1,000 people in nearly 50 countries – we have raised our ambitions,” says Rainforest Alliance’s Director for Landscapes and Communities, Edward Millard.
“This means strengthened requirements for farms and companies, better monitoring and assurance systems, advanced digital innovations and, at the heart of it all, a vision of sustainability as a shared journey of continuous improvement,” he says.
Farms will work towards increasing compliance with the standard while learning new techniques based on using the services that nature provides.
“The great thing about this new scheme is that it is much more doable for farmers than previous schemes. It’s also at the core of a new Global Environment Facility-funded sustainable agriculture landscapes project in India, expected to start in 2021,” says UNEP biodiversity and land management expert Max Zieren.
Oil and Gas Industry commits to new framework to monitor, report and reduce methane emissions
In a move that will help tackle one of the biggest and most solvable contributors to the climate crisis, major players in the oil and gas industry agreed today to report methane emissions with a new, much higher level of transparency.
“To win the Race to Net Zero Emissions, we need everyone on board. We need ambitious action from the Oil & Gas Industry. UNEP is committed to supporting efforts that reduce methane emissions, and we recognize the leadership of companies that have joined such an ambitious methane reporting framework,” said Inger Andersen, Executive Director of UNEP. “We look forward to seeing actions that turn commitments into actual emissions reduction”.
Methane released directly into the atmosphere is a highly potent greenhouse gas, with more than 80 times the warming power of carbon dioxide over a 20-year period. Actions to cut methane emissions can yield a near-term reduction in the rate of warming, complementing efforts to decarbonize the world’s energy and transport systems while also delivering air quality benefits.
Kadri Simson, EU Energy Commissioner, said “I am very happy to see the energy industry taking immediate action on methane emissions. A clear commitment to measure and monitor emissions is an important first step for significantly reducing them and I am proud of what we have achieved together. Today’s signature is the first deliverable under the Commission’s recent methane strategy.There are many more steps to take to cut emissions along the entire value chain and I hope to work closely with all – European and international – partners to reach this goal.”
The Oil and Gas Methane Partnership (OGMP) is a Climate and Clean Air Coalition (CCAC) initiative led by the UN Environment Programme (UNEP), the European Commission (EC), and the Environmental Defense Fund (EDF). Already 62 companies with assets on five continents representing 30 per cent of the world’s oil and gas production have joined the partnership. The new OGMP2.0 framework is the new gold standard reporting framework that will improve the reporting accuracy and transparency of anthropogenic methane emissions in the oil and gas sector.
“Thanks to the 62 companies for committing to measure, report and reduce pollution from their core operations and joint ventures. This will be the basis for robust standards in Europe, and beyond, that ensure the oil industry takes the practical actions urgently needed for our climate,” said Fred Krupp, President of the Environmental Defense Fund.
Oil and Gas Methane Partnership 2.0
At the core of the effort is a comprehensive measurement-based methane-reporting framework that will make it easier for officials, investors and the public to accurately track and compare performance across companies in ways that have not been possible to this point.
“Reducing methane emissions is a crucial effort in the industry’s decarbonization pathway. As a factor on which we can have an immediate and concrete positive impact, OGMP 2.0 offers an internationally recognized blueprint to companies across our industry willing to make improvements in their emission reductions in all phases of the value chain. We look forward to continue working with all partners involved, as only through collaboration with international organizations, civil society and governments we can deliver on our common goals,” said Claudio Descalzi, Chief Executive Officer of ENI.
As stipulated in the EU methane strategy, the European Commission is planning to elaborate a legislative proposal on compulsory measurement, reporting, and verification for all energy-related methane emissions, building on the OGMP 2.0 framework
Crucially, the OGMP 2.0 includes not only a company’s own operations, but also the many joint ventures responsible for a substantial share of their production. The OGMP 2.0 framework applies to the full oil and gas value chain, not only upstream production, but also midstream transportation and downstream processing and refining – areas with substantial emissions potential that are often left out of reporting today.
The goal is to enable the oil and gas industry to realize deep reductions in methane emissions over the next decade in a way that is transparent to civil society and governments.
“Reducing methane emissions is critical for natural gas to play a role in the energy transition and this new partnership will foster the sharing of industry best practices, particularly on non-operated assets, and improve monitoring” said Patrick Pouyanné, Chairman & CEO of Total. “This is a new step in the fight against methane emissions and our industry is deeply committed to the success of this initiative.”
In order to support the realization of global climate targets, OGMP 2.0 aims to deliver a 45 per cent reduction in the industry’s methane emissions by 2025, and a 60-75 per cent reduction by 2030.
According to the International Energy Agency (IEA), roughly three-quarters of methane emissions could be reduced with the technology that exists today, and close to half at zero net cost. Reducing methane emissions from the energy sector by 90% would shave two tenths of a degree Celsius from the forecasted rise in the planet’s average temperature by 2050.
Reducing fossil methane emissions by 75 per cent can prevent up to 6 gigatonnes of carbon dioxide equivalent emissions annually – almost ten per cent of the planet’s 2019 greenhouse gas emissions, including land-use change.
New observatory in the works
UNEP and the European Commission are also finalizing plans to set up an independent International Methane Emissions Observatory (IMEO). IMEO will aggregate and analyse multiple methane emissions data streams, including data reported by OGMP member companies, to accelerate reductions in methane emissions globally. By assisting industry and governments globally in addressing uncertainty related to reported emissions, the Observatory will improve the consistency and credibility of methane emissions data and accelerate mitigation actions.
ADB, Indorama Ventures Sign $100 Million Blue Loan to Boost Recycling
The Asian Development Bank (ADB) and Indorama Ventures Public Company Limited (IVL) signed a $100 million financing package to reduce the environmental impact of plastic and promote a circular economy by boosting the capacity of IVL’s plastic recycling plants in India, Indonesia, the Philippines, and Thailand.
The plants will recycle polyethylene terephthalate (PET) plastics widely used in beverage bottles. The finance package comprises $50 million from ADB and $50 million from the ADB-administered Leading Asia’s Private Infrastructure Fund (LEAP). A $150 million loan will be provided by the International Finance Corporation (IFC), and $50 million from DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH.
“The recycling of plastics like PET is a must for healthier oceans, and this initiative will help to achieve that objective by partnering with IVL, which is the global leader of PET production and recycling. We are also excited to work closely with IFC and DEG in this important journey,” said Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “There is a rising global demand for recycled plastic packaging. ADB’s support will help IVL to meet this demand by collecting and treating plastic waste that would otherwise have been released into the oceans.”
“We are honored to agree to this Blue Loan with ADB,” said Chief Sustainability Officer Indorama Ventures Yashovardhan Lohia. “IVL is building the recycling infrastructure needed to divert waste from the marine environment. By using post-consumer PET bottles as a feedstock for new bottles, we give value to waste. This drives improvements in waste collection systems, meaning less waste and cleaner oceans.”
Mismanagement of all plastic waste damages the marine ecosystem. It is estimated that Asia accounts for more than 80% of all plastics released into the ocean. Globally around half of PET is recycled. In a circular economy, products and materials are redesigned, recovered, and recycled to divert plastic waste from landfills and oceans. The plants to be built under the project are expected to be fully operational by 2022, and will ensure that nearly 5 billion additional bottles are diverted from waste annually.
ADB’s loan is its first independently verified nonsovereign blue loan, following Blue Natural Capital Financing Facility’s Blue Bond Guidelines, with an assurance report from DNV GL. It is aligned with ADB’s Action Plan for Healthy Oceans and Sustainable Blue Economies, which calls for ADB to expand its investments and technical assistance to $5 billion during 2019–2024.
IVL is a Thailand-listed, global business committed to develop technologies and processes that use post-consumer PET and polyester waste materials as feedstock for the future. As the largest producer of 100% recyclable PET in the world, IVL supports all aspects of the circular economy to reduce the amount of waste entering the environment. IVL is listed on the Dow Jones Sustainability Index and operates 125 manufacturing facilities in 33 countries, across 5 continents.
LEAP is a cofinancing vehicle established by ADB and the Japan International Cooperation Agency to support private sector investments in energy and power generation, as well as water, urban infrastructure, transport, information and communications technology, and health.
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