KEMENTERIAN LINGKUNGAN HIDUP

REPUBLIK INDONESIA


Side Events Convened on Thursday,
4 December, 2008

 

Supporting technology finance, deployment and
innovation in developing countries

Presented by Natural Resources Defense Council and
E3G

 

This event considered means
to support technology deployment incentives in the post-2012 climate change
regime and focused on options and mechanisms to develop and deliver low-carbon
technologies that will keep the rise of the global average temperature below
2°C.

Shane Tomlinson, E3G, noted that climate change poses a unique challenge for
innovation and finance. He said that current low-carbon technologies will not
provide the necessary emission reductions and that new innovation is required.
He stressed that such innovation is a global public good and will require
international action to capture all benefits. He also said that a risk-based
approach projects that the required level of investments is higher than most
models suggest. He called for improving the global innovation system to manage
risk, support innovation networks, and spread technologies, as well as for the
establishment of a global innovation and diffusion fund as part of a new
institutional framework for low-carbon innovation.

Jake Schmidt, Natural Resources Defense Council (NRDC), stressed that it is
essential to differentiate among incentive frameworks by sector and distinguish
between carbon market incentives and technology incentives. He explained that
the latter may include "low-hanging fruit" incentives, such as
international loan programmes for technologies that pay for themselves, as well
as "advanced technology" incentives in the form of grants for
technologies that are not currently cost competitive.

Melanie Nakagawa, NRDC, described common attributes of successfully established
multilateral funds and suggested that these should be considered in setting up
an international clean energy development fund under the Convention, including:
a technical assessment body; a regional network system; partnerships among
several actors; financing in the form of grants and loans; fair decision-making
in the allocation of funds; a compliance mechanism; rapid mobilization of
funds; and involvement of civil society.

James Davey, Department for Energy and Climate Change, UK, noted that
technology transfer is an enormous problem because the rate of adoption of
clean technologies is extremely low compared to what is needed by 2050. He
emphasized the need to involve private capital, because governments are not
going to pay all associated mitigation costs and said that aggressive, global
emission cuts are required and should follow the principle of common but
differentiated responsibility.

Participants discussed: how to maintain private sector incentives while
increasing collaborative approaches; South-South technology transfer; capacity
building; and the need to move away from fossil fuel-dependent markets.

 

Opportunities and Challenges for a US Cap and Trade Programme
Presented by the US German Marshall Fund

 

This event discussed future
climate policy in the US
and implications for the EU, businesses and the global climate. It included two
presentations followed by responses from four discussants.

Jonathan Pershing, World Resources Institute, discussed US climate activities.
He outlined state mitigation efforts, as well as regional emissions trading
programmes, namely the Regional Greenhouse Gas Initiative, the Midwestern
Greenhouse Gas Reduction Accord, and the Western Climate Initiative. He noted
that despite the aggressiveness of state reduction programmes, federal
programmes will also be needed. He also discussed "green collar" job
creation, the role of the business community in the US Climate Action
Partnership, and how various legislative proposals compare regarding emissions
targets, source coverage, and auctioning provisions. He concluded by projecting
that the US
will have a domestic programme soon, reductions will be significant, and major
investments will be made in technology. He said that the current economic
climate’s potential for sparking progress will depend on the nature of the
stimulus package provided by the US government.

Artur Runge Metzger, European Commission, presented on climate change
activities in the EU. He described the EU’s future targets and lessons learned
from experiences with the EU Emission Trading Scheme (ETS), such as the need
to: address carbon leakage; keep the allocation system simple; and minimize
transaction costs. He said that coordination between the EU and US climate
systems would depend upon: a robust cap; the absence of governmental
intervention to correct price signals created by the market; defined climate
and environmental benefits in offset provisions; and robust monitoring and
reporting.

Martin Berg, Merrill Lynch, underscored the need for market certainty
post-2012. Lisa Jacobson, the Business Council for Sustainable Energy, argued
that policy design will need to focus on details concerning allocation,
technology deployment and means to drive investment. Lisa Beal, Interstate
Natural Gas Association of America, discussed future US climate policy from the
standpoint of the natural gas sector, and voiced support for a national
programme. Kate Hampton, Climate Change Capital, highlighted the importance of
the cap design, cautioned against lock-in of carbon-intense technologies, and
called for transparent and simple rules and support for the diffusion of carbon
capture and storage and renewable energy sources.

Participants discussed: the inclusion of forests in cap and trade programmes;
connecting the EU and US climate systems; legal issues regarding trading
between the US and foreign powers; the interaction of additionality
requirements and renewable portfolio standards; flexibility; mitigation in the
natural gas sector; competitiveness; and the timeline for developing a market
signal, as well as a US climate policy.

 

 

UN System Response to REDD
Presented by the United Nations

 

This event brought together
several agencies and organizations to discuss reducing emissions from
deforestation and forest degradation (REDD), including its related policy and
programme architecture, coordination, and funding. It described the UN-REDD
Programme, which was developed as a result of the Bali
climate negotiations and was launched on 24 September 2008.

Hans Brattskar, Norway, said
that Norway
has committed US$3 billion to REDD activities, with the intention of catalyzing
additional funds from other sources. He stressed that a REDD mechanism must be
included in a future climate change framework, and should comprise: a reliable
framework for monitoring and verification; third party verification; ownership
and commitments from national governments; and the support of civil society and
indigenous peoples.

Kaveh Zahedi, UNEP, said that REDD has stimulated a large number of initiatives
and that UN-REDD seeks to coordinate activities to ensure that the UN
"delivers as one," while allowing for a diversity of approaches and
supporting countries in their REDD-readiness. He described country activities,
including consultation, strategy development, and pilot projects in tropical
forest regions.

Benoit Bosquet, World Bank, provided an update on the Forest Carbon Partnership
Facility (FCPF), noting that it has been operational since June 2008, with 25
countries selected as participants. He noted that the FCPF includes
participation from indigenous groups and is based on two funds: the REDD
Readiness Fund (US$150 million) and a performance-based Carbon Fund (US$200 million).
He described the experience of Panama
in co-financing REDD-readiness activities.

Gisela Ulloa Vargas, Bolivia, said that it is important to remember that much
is left to be determined regarding what REDD might look like in the future,
adding that this must reflect the principles of the UN Declaration on the
Rights of Indigenous Peoples and be supportive of national development plans.
She stressed that compensation must go beyond opportunity costs and consider
forgone food production and GDP impacts.

Victoria Tauli-Corpuz, Tebtebba, said that the burden of proof is on REDD
proponents to show that the FCPF will be supportive of indigenous peoples,
noting that forest-dependent people have long fought governments and World
Bank-sponsored initiatives that have degraded forests. She identified
centralized governance of REDD, including the administration of financing, as a
potential threat, adding that indigenous land rights are often not legally
recognized. She highlighted recommendations emerging from a meeting of
indigenous peoples held in November 2008, including that the UN Declaration on
the Rights of Indigenous Peoples must provide REDD’s overarching framework.

Participants discussed: the lack of consultation prior to the launch of the
FCPF; the definition of "forest" that will be used in REDD policies
and programmes; food security; third party verification; timelines for REDD
pilots; success criteria; and pricing of carbon.

 

 

Business views on US carbon markets and clean tech
Presented by the Business Council for Sustainable Energy

 

This event provided a
private sector perspective on recent developments in US energy efficiency
policy developments, and the outlook for the widespread adoption of renewable
energy technologies.

Dave Schnaars, Solar Turbines/Caterpillar; presented the case for taking rapid
steps to promote sustainable energy and energy efficiency, and said that a mix
of financial incentives and regulations can be used to change behavior.

Lisa Beal, Interstate Natural Gas Association of America (INGAA), noted that
20% of US
energy comes from natural gas. She said that INGAA does not support carbon
dioxide being controlled by the US Environmental Protection Agency as a
pollutant, and said that a market-based programme is more appropriate She said
that the Obama administration will give renewable energy a high priority, and
noted links between energy security and addressing climate change.

Obadiah Bartholomy, Sacramento Municipal Utility District (SMUD), described California‘s proposed
plan to reduce the state’s greenhouse gas emissions to 1990 levels by 2020,
noting that the plan is likely to be approved soon. He said that 80% of
reductions are to come as a result of new regulations, and that imports of
coal-based energy from out-of-state will be included in emissions. He highlighted
the importance of providing certainty regarding a market for renewable energy,
noting the construction of a new photovoltaic energy plant near Sacramento. He described
the Western Climate Initiative, which is based on Western states and Canadian
provinces setting their own goals for reducing emissions.

Jeff Moe, Trane, described the range of changes that can be made to
"green" the design of a building, including sourcing sustainable
materials and improving energy efficiency. He noted that green buildings can
cost three to five percent more, but that this investment is returned in energy
efficiency gains within three years. He suggested introducing a mandatory
energy efficiency audit to be conducted prior to the sale of all homes.

Aimee Barnes, EcoSecurities, called for urgent action on climate change, noting
the need to draw upon all available tools and existing technologies. She said
that the US
has missed out on significant opportunities by not signing the Kyoto Protocol.
She highlighted the need for clear guidelines on methodologies for emissions
reduction project development, and to address the negative press that offset
mechanisms have recently received. Regarding the "roadmap to 2020,"
she stressed that making significant gains in the near term will be crucial.

Participants discussed: the need for a tightly regulated, restricted carbon
market at the federal level in the US; how to ensure carbon pricing
stability; how to ensure that offsets are real; and the consequences of the
global financial crisis for climate change strategies.

 

 

Adaptation Experiences Across Sectors and Scales
Presented by the United Nations Development Programme

 

This event discussed
supporting in-country programming on adaptation. After a brief presentation,
two groups of panelists – the first on coordinating and implementing adaptation
initiatives within and across sectors, and the second on financing and sharing
knowledge to support national planning on adaptation – were given an
opportunity to respond.

Bo Lim, United Nations Development Programme (UNDP), presented on behalf of UN
agencies on four aspects of adaptation: strengthening coordination and
institutional capacity; policy setting and implementation; expanding financing
options; and knowledge sharing. She defined adaptation as securing development
benefits that might otherwise be undermined by climate change.

In the first panel, Jesus Quintana, International Fund for Agricultural
Development (IFAD), outlined IFAD’s climate change activities in coordinating
with other agencies and organizations, as well as on the ground. Stephan Bass,
UN Food and Agriculture Organization, noted that adaptation is still in an
awareness-raising phase, and called for proactive rather than reactive
mainstreaming activities. Gabor Vereczi, UN World Tourism Organization,
described two pilot projects in Fiji
and the Maldives.
He said tourism cuts across sectors and, therefore, can help foster a dialogue
for collaboration. Carlos Scaramella, UN World Food Programme (WFP), described
the WFP’s role in addressing climate change: providing a humanitarian and
emergency response; transferring capacity and knowledge systems; and scaling up
community-based programmes. Esteban Leon, United Nations Human Settlements
Programme (UN-HABITAT), described the high rate of population growth in the
world’s cities, and called for addressing problem drivers and coordinating with
local authorities.

In the second panel, Bo Lim, UNDP, presented on an adaptation project in Malawi that
aims to promote sustainable economic growth and achieve food security. Ian
Noble, World Bank, discussed the Bank’s activities to scale up adaptation, and
argued that adaptation requires additional money and must be driven by country
priorities. He highlighted the development of pilot projects aimed to integrate
further climate resilience into developing planning. Avinash Tyagi, World
Meteorological Organization, stated that the deficit of local-level information
is one of the biggest impediments to addressing climate change. He called for a
dialogue with users of climate information, and for information to be provided
in a usable format. Jian Lu, UN Environmental Programme, described the
differences between data, information and knowledge, and voiced support for the
UN’s "Delivering as One" initiative.

Participants discussed: the role of the private sector; planned migration; gaps
of knowledge between bureaucrats and communities; distinguishing between
climate change and climate variability; corporate social responsibility;
maladaptation; and community-based adaptation.

 

 

An Actionable Guide: Investing in a Well-Prepared
Society

Presented by Stakeholder Forum for a Sustainable Future

 

This event focused on the
importance of education for sustainable development and the human dimension of
climate change, the "missing fifth building block" of the climate
change regime.

P.J. Puntenney, Environmental and Human System Management, described the
development of a sustainable society as a learning process and stressed the
importance of good governance, as well as the links between climate change,
biodiversity loss, poverty and the financial crisis, where the amelioration in
one area may worsen the situation in another. She also stressed that since the
late 1990s, climate change scientists have been saying that solutions which
worked in the past will not necessarily work in the future, and that the human
dimension of climate change must be integrated into the strategic policy
framework of the UNFCCC.

Felix Dodds, Stakeholder Forum for a Sustainable Future, stressed the need to
move the human dimensions’ agenda for building well-prepared societies to the
center stage of the 2012 framework. He expressed concern regarding the lack of
proper stakeholder involvement in the climate change process, such as in the
work of the Subsidiary Body on Implementation and the Ad hoc Working Group on
Long Term Cooperative Action. He proposed the creation of an informal
government support group to prepare a set of detailed recommendations for Copenhagen, to be
circulated to all governments.

Bremley Lyngdoh, Worldview Impact, stressed the link between poverty and the
environment and the need to test the policies proposed at the international
level to see how they work for people at the local level. He also emphasized
that the principle of "eco-effectiveness" should prevail over
"eco-efficiency," as the latter would not necessarily prevent pollution.
He advocated the localization of environmental curricula, and stressed the
crucial role of youth and the engagement of local people in attaining
sustainability.

John Takang, UNU-International Human Dimension Programme, described his
research, which focuses on the human dimension of global change, namely how
humans influence their environment and the resultant impacts of altered
environments on human life. He stressed the importance of research to identify
the kind of education that is necessary for realizing sustainability and the
institutions that are required to cope with global change.

Participants discussed: education and awareness as a fundament building block
of sustainable development; the links between poverty, security and the
environment; eco-effectiveness principles; and the absence of research on the
linkages between climate change and public health.