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More Companies and Government Ambition Required to Meet the “Net Zero” Challenge

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Four years after the Paris Climate Agreement, tangible action from governments is falling short of trajectories needed to restrict global warming to 1.5° Celsius. This is well documented in the recently released UN Environment Closing the Gap report. To date, however, a minority of businesses are taking the necessary steps to reduce emissions and of those who are, much more ambition will be required based on the findings of a new report, The Net Zero Challenge, published today by the World Economic Forum.

The report is released as negotiators gather in Madrid at COP25 to discuss the finer details of the Paris Agreement which called for emissions reductions of 3-5% per year. This is a long way off the annual increase in emissions of 1.5% that we are seeing today.

“2020 is a crucial year for delivering on climate action ambition and it is vital that governments and businesses now work together. For both the public and private sector, collaborative action on climate can spur rapid innovation, growth and jobs in a sluggish economic outlook; what the world needs is a combination of public ambition, policy certainty and company leadership to create a tipping point,” said Dominic Waughray, Managing Director at the World Economic Forum.

Governments: from a slow start, climate action ambitions are growing to address the challenge

67 countries have to date stated an ambition to reach net zero emissions by 2050. These countries account for c.15% of global GHG emissions. Of these countries, sixteen (accounting for less than 6% of emissions) have developed roadmaps and intermediate targets; and even fewer – seven – countries have instituted policy frameworks that could realistically support reaching a net zero emission goal. These countries – Bhutan, Costa Rica, Denmark, Iceland, The Netherlands, Suriname, Sweden, – account for just 2% of global GHG emissions.

The report does, however, find signs of progress that some governments are beginning to set ambitious climate targets. For example, Morocco has developed the world’s largest concentrated solar farm with a goal of sourcing 50% of its electricity from renewable sources in just 10 years. India is currently implementing the largest renewable power programme in the world, targeting 175 GW of installed capacity by 2022.

The report, done in collaboration with Boston Consulting Group (BCG), also finds signs of action at the sub-national level. For example, the state of South Australia is targeting 50% renewable power by 2025. In the United States, meanwhile, seven states are targeting zero-carbon energy systems by 2050.

Overall, the report adds to the evidence that there is much political work to be done to raise ambition levels for climate action ahead of when the Paris Agreement is due to begin in November 2020.

Companies and Climate Action: A New Impetus is Required

When it comes to companies and emissions, the report highlights the gap in corporate ambition that must be closed. While 7,000 businesses disclose their emissions to CDP, a non-profit organization that monitors global emissions, the report finds that only a third provide full disclosure, only a quarter set a specific emissions reduction target and only one in eight are so far reducing their emissions year-on-year.

The report also finds that, on average, both short-term and long-term targets are about half of what are needed for a 1.5°C world; on average, short-term targets currently aim for minus 15% instead of minus 30% reductions; while longer-term targets on average currently aim for 50% reductions instead of net zero by mid-century.

There is, however, some variation across industries. Financial and energy companies, are the most advanced when it comes to disclosing, setting targets and reducing emissions; and emissions reductions in the power sector provide a good case on how other sectors might respond to a mixture of smart policies and demand signals. In each sector there are examples of corporations acting decisively to build a first-mover competitive advantage through higher efficiency, lower risks and new green revenues.

The report identifies two major reasons why corporate climate action has so far not reached a tipping point. One is that chief executive officers still find themselves under greater pressure to deliver short-term returns than to demonstrate progress against climate goals. A plethora of ESG (environmental, societal and corporate governance) guidelines is not helping to create clarity or a clear benchmark to judge performance, leading – in the words of one banking CEO – to “real confusion and little action” in the investment world. The other is the lack of reliable policy frameworks at national and international level. All 25 CEOs interviewed as part of the project confirmed, for example, that without a meaningful price on carbon the transition cannot be accelerated at the speed and scale needed.

A call to action from the World Economic Forum

Whilst diplomatic and multilateral political efforts during 2020 will focus on raising ambition levels among governments, the World Economic Forum will use its platforms to promote a complimentary call to action for higher ambition levels among companies and the finance community and for more partnerships. This call for action, which will start in Davos 2020, includes:

An updated Davos Manifesto for 2020 on the universal purpose of a company, which notes that a company is more than an economic unit generating wealth, will be presented to all CEOs to consider. The Manifesto calls for performance to be measured not only on the return to shareholders but also on how it achieves it environmental, social and good governance objectives.

An initiative underway with the Forum’s International Business Council to develop a definitive methodology for standard ESG principles that companies can adopt as a complement to standard financial metrics with support from the “Big Four” accounting firms, which will include common approaches on climate emissions target setting and tracking

The release of a catalogue of “Lighthouse Projects” that show concrete examples of how many leading companies are setting and implementing bold emissions reduction strategies in line with net zero by mid-century, and how other companies can join or replicate these efforts. Such Lighthouse Projects include the Mission Possible Platform, RE100, the UN-convened Net Zero Asset Owners Alliance, the CDSB and over 50 other specific examples of company actions and public-private collaborations in the climate and wider environmental agenda.

To support these efforts, the Forum has also convened a community of CEO Climate Leaders; these are leaders of some of the world’s largest businesses that are committed to support assertive climate action.

“Climate change is the single greatest threat that humanity faces. Businesses that don’t take climate action will be punished by their stakeholders as well as by the planet,” said Alan Jope, CEO, Unilever.

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Vietnam Signs Landmark Deal with World Bank to Cut Carbon Emissions

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Vietnam’s Ministry of Agriculture and Rural Development signed a landmark agreement today with the World Bank’s Forest Carbon Partnership Facility (FCPF), unlocking up to US$51.5 million for Vietnam’s efforts to reduce carbon emissions from deforestation and forest degradation between now and 2025. With this Emission Reductions Payment Agreement (ERPA) in place, Vietnam is expected to reduce 10.3 million tons of carbon dioxide emissions from six North Central Region provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue to receive $51.5 million from the FCPF.

Vietnam has shown tremendous leadership in developing robust programs to deliver forest emission reductions at scale,” saidCarolyn Turk, World Bank Country Director for Vietnam. “This agreement marks the beginning of a new chapter for Vietnam, where new and significant incentives for forest protection and improved management are now in place to help the country meet its ambitious climate targets.”

Vietnam’s Emission Reductions Program is designed to address the underlying causes of forest loss in the country’s North Central Region and by so doing reducing emissions from deforestation and forest degradation. The program will also support forest restoration. The region was chosen for its critical biodiversity importance and socio-economic status. The program area covers 5.1 million hectares of land (16 percent of the land area of the country), of which 3.1 million hectares are currently forested, and includes five internationally recognized conservation corridors. It is home to approximately 10.5 million people, nearly one third of whom live below the national poverty line.

“Vietnam’s program follows a preparation phase that built our readiness to engage in an emission reduction payment agreement of this kind and is a step towards full implementation of forest carbon services in Vietnam. This agreement highlights the collaboration between Vietnam, FCPF and the World Bank to meet international climate targets laid out in the Paris Agreement,” said Ha Cong Tuan, Standing Vice Minister of Agriculture and Rural Development. “Our program will mobilize important additional financing to invest in our forests and reduce forest degradation while generating income for forest owners and improving sustainable development in the North Central Region.”

Vietnam is the first country in Asia-Pacific and fifth globally to reach such a milestone agreement with the FCPF. ERPAs are innovative instruments that incentivize sustainable land management at scale and help to connect countries with other sources of climate financing. The resources from the FCPF provide new opportunities to conserve and regenerate forest landscapes and biodiversity while simultaneously supporting sustainable economic growth, which is critical for Vietnam’s development going forward.

The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples’ organizations focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries, activities commonly referred to as REDD+. Launched in 2008, the FCPF has worked with 47 developing countries across Africa, Asia, and Latin America and the Caribbean, along with 17 donors that have made contributions and commitments totaling US$1.3 billion.

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New State of Nature report points to persisting pressures on Europe’s nature

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European Commission published its latest assessment of the state of nature in the European Union. It provides a comprehensive overview of the situation of Europe’s most vulnerable species and habitats protected under EU nature laws

Decline of protected habitats and species still continues, caused mostly by intensive agriculture, urbanisation, unsustainable forestry activities and changes to freshwater habitats. Pollution of air, water and soil also impacts habitats, as well as climate change, over-exploitation of animals through illegal harvesting and untenable hunting and fishing. If not addressed, this decline will inevitably result in the continued erosion of our biodiversity and the vital services it provides, putting human health and prosperity at risk.

The report underlines the clear need for action if we are to have any serious chance of putting Europe’s biodiversity on a path to recovery by 2030, as envisaged in the new EU Biodiversity Strategy. In this regard, the full implementation of the goals and targets proposed in the Strategy, as well as in the Farm to Fork Strategy will be essential.

The assessment – based on a more detailed technical report of the European Environment Agency – shows that while there are protected species and habitats that are managing to hold the line despite being subject to major pressure, the majority have poor or bad status at EU level, with some showing continued deteriorating trends.

Among species, birds that are closely associated with agriculture continue to decline, while freshwater fish have the highest proportion of bad conservation status (38 %) primarily due to changes to waterbodies and water-flow and hydropower installations. Among habitats, only 15% of them are in good condition. Restoration of peatlands and other wetlands can deliver nature benefits, but also significantly contribute to addressing climate change, creating employment opportunities in rural and peripheral areas.

The report also shows that targeted conservation action brings results. The Iberian lynx, the forest reindeer and the otter, each of which has been targeted by major conservation projects, are now recovering. Initiatives under the EU LIFE programme, dedicated agri-environment schemes under the common agricultural policy, and the Natura 2000 network with its 27,000 sites continue to have a positive influence, but this needs to be scaled up considerably. 

Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevičius said: “This State of Nature assessment is the most comprehensive health check of nature ever undertaken in the EU. It shows, yet again, very clearly that we are losing our vital life support system. As much as 81 % of protected habitats are in poor condition in the EU. We urgently need to deliver on the commitments in the new EU Biodiversity Strategy to reverse this decline for the benefit of nature, people, climate and the economy.”

Hans Bruyninckx, Executive Director of the European Environment Agency, said: “Our assessment shows that safeguarding the health and resilience of Europe’s nature, and people’s well-being, requires fundamental changes to the way we produce and consume food, manage and use forests, and build cities. These efforts need to be coupled with better implementation and enforcement of conservation policies, a focus on nature restoration, as well as increasingly ambitious climate action, especially in the transport and energy sector.”

Background

Every six years, EU Member States report on the conservation status and trends of species and habitat types protected under the EU Directives. The present reporting cycle is the largest and most extensive data-gathering exercise ever undertaken on the state of Europe’s nature. The report provides an analysis of data on status and trends related to all wild bird species occurring in the EU (460 species), 233 habitat types and almost 1400 other wild plants and animals of European interest.

This knowledge will guide EU’s action on biodiversity in the coming years, providing a crucial baseline for monitoring progress towards achieving the targets of the new EU Biodiversity Strategy to 2030.

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Celebrating African youth turning the tide on plastic pollution

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More than 400 young Africans were today honoured for their leadership in addressing plastic pollution in their communities as part of the Tide Turners Plastic Challenge. At a high-level event, political leaders, senior UN officials and Grammy-nominated Ghanaian musician Rocky Dawuni lauded the leadership shown by young people in global efforts to fight plastic pollution.

The African Youth Summit – Tide Turners Plastic Challenge acknowledged the role of more than 400 champions who have completed all three levels of the Tide Turners Plastic Challenge Badge. Participants in the Challenge have shown leadership by raising awareness through social media, championing plastic waste collection campaigns and demonstrating sustainability in their own lives, among other things.

Funded by the United Kingdom for the past two years, the Tide Turners Plastic Challenge has been completed by more than 225,000 young people in over 25 countries, including 50,000 in Africa. The challenge takes the participants on a learning journey consisting of three different levels: entry, leader, and champion.

More than 1,500 young people attended the Summit, organised by the UN Environment Programme (UNEP) in partnership with the World Association of Girl Guides and Girl Scouts, the World Organization of the Scout Movement and Junior Achievement Africa.

“As a former Girl Guide, I am very proud of Tide Turners and all the inspiring young people who are part of it; so far, more than 50,000 young people in 18 countries across Africa have joined this important programme. Let’s continue this momentum, adding seven more countries to reach youth in nearly half of all African countries,” said Joyce Msuya, Deputy Executive Director of UNEP.

The Summit which took place alongside the Scouts during their annual Jamboree on the Air and Jamboree on the Internet event (JOTA-JOTI) to share lessons from the actions young people have taken to fight plastic pollution and become environmental leaders in their communities. Six young changemakers shared their stories about how they went about provoking change and inspiring their peers to join them in taking action on plastic pollution.

“The Tide Turners Plastic Challenge gave me a great platform to pass on the message against plastic waste and share my solutions,” said Fyona Seesurrun, a 22-year old student from Mauritius, one of the champions who was honoured at the summit.

“100,000 mammals and one million birds die every year from eating or getting tangled in plastic in the ocean. If we do nothing, the amount of plastic in the ocean is set to treble by 2025. We must take collective action now. The Tide Turners are a force to be reckoned with, inspiring a whole new generation of leaders to tackle plastic pollution within their communities. That’s why the UK is supporting the UNEP to extend the work of the Tide Turners Plastic Challenge Badge to a further 20 countries around the world”, said Zac Goldsmith, UK Minister of State for Pacific and the Environment. 

Grammy-nominated Ghanaian musician Rocky Dawuni – a UNEP Goodwill Ambassador – also addressed the young people at the Summit and serenaded guests with hits including “Rock Your Soul”.

The Tide Turners Plastic Challenge Badge is the first ever Scout and Girl Guide Badge made from recycled plastic; the Challenge has been integrated into a new digital platform for World Scouting’s new environmental education initiative: Earth Tribe, which unites 54 million Scouts in a global youth movement for the environment, and offers young people the opportunity to learn and act on key environmental issues that are affecting their communities.  

In 2021, organisers will be adding a new element to the badge which will focus on influencing policy and practice change.

Each year, more than 8 million tons of plastic ends up in the oceans, wreaking havoc on marine wildlife, fisheries, and tourism, and costing at least $8 billion in damage to marine ecosystems. World production of plastic materials in 2018 was estimated at 359 million tonnes and by 2040, the amount of plastic going into our oceans could triple.

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