The transition to a global economic model which will slow down climate change and create jobs will be the “biggest economic transformation since the industrial revolution” according to John Kerry, the US climate envoy.
They agreed that a “green and resilient recovery” from the COVID-19 pandemic is possible but economic growth globally is likely to be slow and uneven.
‘No bank will fund a new coal plant’
John Kerry: There are many ways that we can address the climate challenge in America. President Biden has put a $2 trillion plan on the table, which will result in 500,000 charging stations for electric vehicles being built in the country, thousands of electric buses, including school buses, and a target of 100 per cent carbon-free power, by 2035.
All these measures will generate actions in the private sector. The decisions of some of the largest financial institutions in the world are being driven by environmental, social and governance (ESG) factors, and trillions of dollars is going to be invested in this new sector to avoid sheer catastrophe. We’re way behind, but we believe that this is going to be the biggest economic transformation since the industrial revolution.
In Europe, no bank or financial institution or even private source will fund a coal-fired power plant, but we have to move away from coal faster. Many old coal-fired plants are operating at less than 50 per cent efficiency. They are losing money and are not even sending energy to the main grid. They could be phased out over a period of time. Gas will, to some degree, be a bridge fuel [to renewables].
The United States could help mobilize finance to reduce risk, and then bring more money to the table for a commercial investment in alternative fuel sources.
Kristalina Georgieva: At the IMF we have identified three pillars in the transition to a low-carbon economy. First of all, put a price on all carbon emissions. Today only 23 per cent of emissions are being priced. The average price is $2 per ton. By 2030, we need to be at $75 a ton.
Second, funding is needed for public investment in green infrastructure. The IMF can support countries in this regard. Five per cent of gross domestic product (GDP) invested now, would generate an additional 0.7 per cent growth every year. This means that the investment would pay for itself within 15 years and create at least 12 million net jobs.
The third, hugely important pillar, is to lessen the impact on those who are currently employed in the high carbon economy. For example, there must be a just transition for miners, so that they can have benefit from new job opportunities. If we raise revenues from carbon pricing, some of that money must be used to provide a buffer, to soften the pressure on those businesses that need to move away from carbon dependency. This is doable, and it must be done.
China and the US
John Kerry : Right now, China is saying that they are going to reach peak emissions by 2030, and that they may be able to reach that target earlier, maybe by 2025. The problem is that the current models shows China peaking but then basically staying at a plateau, rather than sufficiently lowering emissions.
Some 30 per cent of all the emissions on the planet are produced by China, so if we don’t see a reduction between 2020 and 2030, we lose the capacity to keep the global temperature to 1.5 degrees above pre-industrial levels, and we lose the capacity to hit net-zero carbon emissions by 2050.
Every nation must work together on this. If the United States went to zero emissions tomorrow, it wouldn’t make the kind of difference we need because we all have to reduce at the same time. That’s the struggle we’re facing.
China obviously has a need to continue to grow and to develop. We want that, and we’re not begrudging that. We want to work with China and other countries to make sure that they don’t make the mistakes that we made, and that we work together to develop new technologies such as hydrogen fuel, and biofuels for aircraft.
Doing nothing is too expensive
John Kerry: The United States is the number two emitter in the world. We need to do a better job at reducing emissions on an accelerated basis. President Biden is stepping up to do that. He’s hosting a virtual climate summit in April, he has rejoined the Paris climate agreement, and he has put together a $2 trillion piece of infrastructure legislation.
Climate action means jobs, whether in the creation of new energy sources, or transitioning out of the existing ones, building new cars or retrofitting homes. Those are jobs for workers in all countries. We should embrace this.
The economists have warned us again and again: doing nothing is more expensive to our citizens, our taxpayers, than responding to the climate crisis. We spent $365 billion cleaning up after three storms a couple of years ago, but we haven’t invested the $100 billion in the Green Climate Fund that would have provided resilience and adaptation to climate change, and prevented some of that damage from being done. We’re just not making the right choices.
Kristalina Georgieva: We’ve already started offering a helping hand, especially to countries devastated by natural disasters. We have put measures in place to help countries to be in a better position when disaster hits. For example, we are discussing with our membership a provision that will make $650 billion available for countries to not only take the necessary measures to deal with the pandemic and its impact, but also to take on the investments necessary for transformation of their economy.
The urgency to act is evident, and vivid: over the last six months, 10 million people were displaced by floods and other forms of natural disasters. Fast-forward to a world in which there are more climate-related disasters, and more migration.
We have a chance to take advantage of a transformation for growth and for jobs. But we are also under tremendous pressure to prevent a future that would be bleak for those we love the most: our children and grandchildren.
Deadly flooding, heatwaves in Europe, highlight urgency of climate action
Heavy rainfall that has triggered deadly and catastrophic flooding in several western European countries, is just the latest indicator that all nations need to do more to hold back climate change-induced disasters, the World Meteorological Organization (WMO) said on Friday.
The agency said that countries including Belgium, Germany, Luxembourg and the Netherlands had received up to two months’ rain in two days from 14 to 15 July, on ground that was “already near saturation”.
Photos taken at the scene of some of the worst water surges and landslides show huge, gaping holes where earth and buildings had stood until mid-week, after media reports pointed to well over 100 confirmed fatalities in Germany and Belgium on Friday morning, with an unknown number still missing across vast areas.
“We’ve seen images of houses being…swept away, it’s really, really devastating”, said WMO spokesperson Clare Nullis adding that that the disaster had overwhelmed some of the prevention measures put in place by the affected developed countries.
In a statement issued by his Spokesperson, the UN Secretary-General António Guterres, said he was saddened by the loss of life and destruction of property. “He extends his condolences and solidarity to the families of the victims and to the Governments and people of the affected countries.”
The UN chief said the UN stood ready to contribute to ongoing rescue and assistance efforts, if necessary.
“Europe on the whole is prepared, but you know, when you get extreme events, such as what we’ve seen – two months’ worth of rainfall in two days – it’s very, very difficult to cope,” added Ms. Nullis, before describing scenes of “utter devastation” in Germany’s southwestern Rhineland-Palatinate state, which is bordered by France, Belgium and Luxembourg.
Highlighting typical preparedness measures, the WMO official noted In Switzerland’s national meteorological service, MeteoSwiss, had a smartphone application which regularly issued alerts about critical high-water levels.
The highest flood warning is in place at popular tourist and camping locations including lakes Biel, Thun and the Vierwaldstattersee, with alerts also in place for Lake Brienz, the Rhine near Basel, and Lake Zurich.
Dry and hot up north
In contrast to the wet conditions, parts of Scandinavia continue to endure scorching temperatures, while smoke plumes from Siberia have affected air quality across the international dateline in Alaska. Unprecedented heat in western north America has also triggered devastating wildfires in recent weeks.
Among the Scandinavian countries enduring a lasting heatwave, the southern Finnish town of Kouvola Anjala, has seen 27 consecutive days with temperatures above 25C. “This is Finland, you know, it’s not Spain, it’s not north Africa,”, Ms. Nullis emphasised to journalists in Geneva.
“Certainly, when you see the images we’ve seen in Germany, Belgium and the Netherlands this week it’s shocking, but under climate change scenarios, we are going to see more extreme events in particular extreme heat,” the WMO official added.
Concerns persist about rising sea temperatures in high northern latitudes, too, Ms. Nullis said, describing the Gulf of Finland in the Baltic Sea at a “record” high, “up to 26.6C on 14 July”, making it the warmest recorded water temperature since records began some 20 years ago.
Echoing a call by UN Secretary-General António Guterres to all countries to do more to avoid a climate catastrophe linked to rising emissions and temperatures, Ms. Nullis urged action, ahead of this year’s UN climate conference, known as COP26, in Glasgow, in November.
South Africa Invests in Biodiversity to Promote Rural Development and Conservation
South Africa is stepping up investment for its wildlife and biodiversity sectors thanks to a grant of $8.9 million from the Global Environment Facility (GEF). The Catalyzing Financing and Capacity for the Biodiversity Economy Around Protected Areas Project aims to enhance South Africa’s stewardship of its rich biodiversity and expand the benefits of protected areas for local communities. It will also help address high unemployment and limited livelihoods options in and around protected areas as well as inequality in rural economies.
The project supports South Africa’s efforts to foster the unrealized potential of its wildlife and biodiversity sectors as drivers for economic growth, including through expanding conservation areas and mitigating threats to protected areas and conservation objectives.
It puts into action South Africa’s biodiversity economy node concept, which identifies certain areas within the country as containing both high-value biodiversity and opportunities for economic development. The project will target activities in three biodiversity economy nodes: (i) the Greater Addo to Amathole node in the Eastern Cape Province, (ii) the Greater Kruger-Limpopo node in Limpopo Province, and (iii) the Greater-iSimangaliso node in KwaZulu-Natal Province.
“The biodiversity economy is central to South Africa’s tourism industry and building the resilience of communities to climate change. Empowering communities to invest in the biodiversity economy will create jobs, promote biodiversity stewardship and stimulate rural development in a climate-smart way,” said Marie Françoise Marie Nelly, World Bank Country Director for South Africa, Botswana, Eswatini, Lesotho, and Namibia.
Project activities include providing training, mentorship, and capital to micro, small, and medium enterprises (MSMEs); expanding the area of land under protected status through South Africa’s land stewardship program; and facilitating knowledge exchange to support expansion of the biodiversity economy across the country based on lessons learned from the three nodes.
The project is aligned with South Africa’s National Development Plan 2030 and its National Biodiversity Strategy and Action Plan 2015-2025, both of which identify the wildlife economy as an important sector for job creation and economic growth. It also supports South Africa’s climate change objectives and Nationally Determined Contribution to the Paris Climate Agreement. The project’s focus on inclusive job creation and economic growth through the development of MSMEs, integrated value chains, and entrepreneurship is also fully aligned with a draft World Bank Group Country Partnership Framework for South Africa.
About the Global Environment Facility
The Global Environment Facility (GEF) was established 30 years ago on the eve of the Rio Earth Summit to tackle our planet’s most pressing environmental problems. Since then, it has provided more than $21.5 billion in grants and mobilized an additional $117 billion in co-financing for more than 5,000 projects and programs. The GEF is the largest multilateral trust fund focused on enabling developing countries to invest in nature and supports the implementation of major international environmental conventions including on biodiversity, climate change, chemicals, and desertification. It brings together 184 member governments in addition to civil society, international organization, and private sector partners. Through its Small Grants Programme, the GEF has provided support to more than 25,000 civil society and community initiatives in 135 countries.
Time running out for countries on climate crisis front line
The world’s running out of time to limit global temperature rise to below two degrees Celsius, a matter of life or death for climate vulnerable countries on the front line of the crisis, the UN Secretary General reiterated on Thursday.
Speaking to the first Climate Vulnerable Finance Summit of 48 nations systemically exposed to climate related disasters, António Guterres said they needed reassurance that financial and technical support will be forthcoming.
“To rebuild trust, developed countries must clarify now, how they will effectively deliver $100 billion dollars in climate finance annually to the developing world, as was promised over a decade ago”, he said.
The UN chief said that to get the “world back on its feet”, restore cooperation between governments and recover from the pandemic in a climate resilient way, the most vulnerable countries had to be properly supported.
Risk of calamity
Mr. Guterres asked for a clear plan to reach established climate finance goals by 2025, something he promised to emphasize to the G20 finance ministers at their upcoming meeting this week.
He added that the development finance institutions play a big role supporting countries in the short-term, and they will either facilitate low carbon, climate-resilient recovery, or it will entrench them in high carbon, business-as-usual, fossil fuel-intensive investments. “We cannot let this happen”, he said.
The Secretary-General reminded that the climate impacts we are seeing today – currently at 1.2 degrees above pre-industrial levels – give the world a glimpse of what lies ahead: prolonged droughts, extreme and intensified weather events and ‘horrific flooding’.
“Science has long warned that we need to limit temperature rise to 1.5 degrees. Beyond that, we risk calamity… Limiting global temperature rise is a matter of survival for climate vulnerable countries”, he emphasized.
The UN chief highlighted that only 21% of the climate finance goes towards adaptation and resilience, and there should be a balanced allocation for both adaptation and mitigation.
Current adaptation costs for developing countries are $70 billion dollars a year, and this could rise to as much as $300 billion dollars a year by 2030, he warned.
“I am calling for 50 percent of climate finance globally from developed countries and multilateral development banks to be allocated to adaptation and resilience in developing countries. And we must make access to climate finance easier and faster”.
Invest to save thousands of lives: WMO report
The UN chief also welcomed on Thursday a new report from the World Meteorological Organization (WMO) which reveals that an estimated 23,000 lives per year could be saved – with potential benefits of at least $162 billion per year – through improving weather forecasts, early warning systems, and climate information, known as hydromet.
In a video message to mark the publication of the first Hydromet Gap Report,, the Secretary-General said that these services were essential for building resilience in the face of climate change.
Mr. Guterres called once more for a breakthrough on adaptation and resilience in 2021, with significant increases in the volume and predictability of adaptation finance.
He noted that Small Island Developing States and Least Developed Countries where large gaps remain in basic weather data, would benefit the most.
“These affect the quality of forecasts everywhere, particularly in the critical weeks and days when anticipatory actions are most needed”, he said.
According to WMO, investments in multi-hazard early warning systems create benefits worth at least ten times their costs and are vital to building resilience to extreme weather.
Currently, only 40 percent of countries have effective warning systems in place.
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