Spinning its Wheels at the Summit: Canada Commits $400 Million for Climate Change
June 30, 2010
Please welcome our summer student Georgia to the Zizzo Allan Climate Law LLP blog. Below is Georgia’s first post on Canada’s climate commitments during the G8 and the ensuing G20 developments:
On June 23, in advance of the G8 and G20 Summits, the Honourable Jim Prentice, Canadian Minister of the Environment, announced that Cabinet had approved funding of $400 million (CDN) for international climate change efforts, following through on Canada’s commitment under the December 2009 Copenhagen Accord.
Canada’s funding is part of the $30 billion (US) annually to be pledged in 2010-2012 from developed countries to tackle climate change. The money will aid developing countries in addressing deforestation, sustainable agriculture, clean technology development and implementation, while allowing them to adapt to the effects of climate change. Funding is expected to rise to $100 billion (US) by 2020.
To date, all participating G8 countries have announced their contributions between 2010 and 2012. Canada’s allocation will be on par with those of Norway, Germany and France whose annual contributions will be $333, $421 and $502 million (US) respectively. Although Canada is responsible for 2 per cent of global greenhouse gas emissions the country will provide 4 per cent of the fund.
Minister Prentice claims that the commitment is in line with Canada’s other multilateral international assistance efforts. Zoe Caron, WWF-Canada Climate Policy & Advocacy Specialist, sees Minister Prentice’s announcement as a “positive step in the right direction” provided the funding commitment is not met through a withdrawal of funds from prior commitments.
Nationally, Canada has aligned its reduction targets with the United States to reduce greenhouse gas emissions by 17 per cent below 2005 levels by 2020. To do so, significant attention will be paid to vehicle and heavy truck emissions as well as regulations on traditional coal-fired electricity plants.
The status of the environment surfaced at the Summits this past weekend but nothing substantial was achieved. Climate change talks were vague and leaders agreed to use country-specific strategies to reduce emissions. Prime Minister Stephen Harper concluded the G8 summit by announcing the pressing need to address climate change through a legally-binding pact via the United Nations process. Until then, global action and agreements are at a standstill.
By Georgia Campbell
Water and Climate Change
June 29, 2010
Most of the world will feel the effects of climate change through the medium of water. We all need it to live. It is also a necessary component of food and consumer products. Too much or too little of it in one place is devastating.
Climate change policy focuses on two main issues: mitigation (avoiding the worst climate affects by lowering greenhouse gas concentrations in the atmosphere) and adaptation (adjusting to the inevitable consequences associated with climate change). A recent report from the Copenhagen Climate Conference states, “If mitigation is about energy, then adaptation is about water.” This is because the biggest adaptation challenge will be to adjust to too much or too little water in various regions.
Scientists observe that water resources are experiencing significant stress globally and predict this trend will continue. Canada is blessed with an abundance of fresh water resources. Even with this endowment, we face serious challenges in preserving and protecting our water supply. As climate change becomes more pronounced, we will have to manage water more effectively and efficiently. So what are governments doing about it?
Energy has been a focus area for those interested in climate and environmental issues for a while now. The attention of governments, non-governmental organizations and the private sector is rapidly expanding to include water issues. To discuss these concerns, the first ever Canadian Water Summit was held in Toronto on June 17, 2010. We attended along with a broad cross section of businesses, non-governmental organizations and public sector representatives. Here are a few facts we learned:
• 97 per cent of water on earth is salt water and not readily usable
• two per cent is frozen and
• one per cent is fresh and usable for human use and consumption.
David Henderson, the Managing Director of XPV Capital and presenter at the Summit explained that two thirds of this freshwater is too polluted for direct consumption and will require treatment to be safely used.
We might not always think about it, but water is inherent in virtually everything we consume. For example, there are:
• approximately 10,000 litres of water used to create a pair of jeans
• between 9,400 and 19,000 litres of water to produce a pound of beef (global figures vary significantly so a range works better here than an average)
• about 3,100 litres of water to produce a pound of chicken and
• roughly 16 litres to produce just one microchip in your cell phone.
Strong regulation to conserve and efficiently use water is vital and will become more important as the effects of climate change continue to be felt around the globe.
Ontario has the capacity to be a world leader in innovative technology and water stewardship. Speaking at the Canadian Water Summit, Premier McGuinty outlined his government’s proposed Water Opportunities Act, which promotes, and in some cases mandates, water conservation and provides incentives for the development of innovative technologies related to water. The proposed Act aims to create an integrated approach to water infrastructure planning and will provide specific incentives for municipalities to more efficiently manage water resources. The Act will also allow for water efficiency labeling and require standard consumption information to be provided on water bills. The proposed bill is posted on the Environmental Registry for public comment until July 17, 2010.
On June 17, 2010 The National Roundtable on the Economy and the Environment (NRTEE) released a report entitled “Changing Currents: Water Sustainability and the Future of Canada’s Natural Resource Sectors.” This report outlines how Canada’s apparent water abundance “masks a looming scarcity challenge.” It discusses water’s importance, the way it is regulated and its use by the natural resources sector in Canada. The report makes a clear appeal to better manage our resources. Changing Currents presents the findings from the first phase of a two-phase study by NRTEE. It identifies the major risks and problems associated with the natural resources sector’s use of water. The second phase of the study will look at potential solutions to the risks and problems identified in the first phase. We look forward to the NRTEE’s recommendations in the coming year.
So, what is the solution to this most vital of issues?
We require an integrated response that includes regulation, better corporate responsibility, public awareness, and paying a fully cost-accounted price for water..
While governments have taken some first steps to prepare for and respond to water challenges, everyone, from private citizens to corporations, municipalities and legislators has a big job ahead.
For further information please see:
RBC blue water project
Originally posted on The Legal Climate Blog of Corporate Knights… Written by Laura Zizzo and Travis Allan
Can law drive climate action? A new blog on law and climate change.
Posted Tuesday, June 29, 2010
Our Common Future 2.0 – A great summit discussing ideas on how to reconcile the environment and the economy
June 15, 2010
Corporate Knights is hosting what looks like a fantastic summit on June 21st. Here is some information – we hope to see you there!
Our Common Future 2.0
In advance of the G-20 meeting in Toronto, Corporate Knights and the International Institute for Sustainable Development will host this June 21 summit in honour of the accomplishments of Jim MacNeill, principal author of the Brundtland Commission’s landmark report “Our Common Future”. The summit will be chaired by Maurice Strong, whose idea it was to pair the occasion of honouring Mr. MacNeill’s life’s work with a strong substance-based dialogue that lays down in no uncertain terms just what it will take to make the 21st century pursuit of sustainable development a success.
Other distinguished panellists include Galen G. Weston, Executive Chairman of Loblaw Companies Limited; Mayor David Miller; Elizabeth May, Leader of the Green Party of Canada, David Runnalls, President and CEO of IISD; and Stewart Elgie, Chair of Sustainable Prosperity.
Don’t miss this incredible opportunity to hear frank dialogue on the most important issue of our time.
June 21, 2010 | Design Exchange, Toronto | Tickets: $195, Non-profits $95 | To reserve, go to http://www.corporateknights.ca/ourcommonfuture2.0, email events@corporateknights.ca, or call 416-203-4674 ext. 225.
A history of denial: Tobacco, Missile Defence, Acid Rain, Ozone, Climate
June 11, 2010
An interesting article on the history of science denial funded to sow uncertainty around important scientific debates in the US by Naomi Oreskes and Erik m. Conway.
Here’s a quote:
“In researching a book on global warming deniers, we often felt demoralized by the efficacy of doubt-mongering tactics and depressed that the American public had been repeatedly fooled by the same strategy and tactics. On the other hand, we felt cautiously optimistic because disputes over other issues — tobacco smoking, acid rain, second-hand smoke, and the ozone hole — ended with the scientific evidence prevailing, and with regulation that (however delayed or weakened) addressed the problem.”
Let’s hope they are right! You can find the full article here.
The Legal Climate – Green Bonds
June 7, 2010
Our 2nd installment of the Legal Climate Blog, posted on Corporate Knights Website discusses Green Bonds.
The Legal Climate: Green Bonds
Numerous financial tools have been proposed to help de-carbonize the global economy. Cap and trade, the carbon tax, and subsidized technology upgrades are the best known, but another idea, the “Green Bond”, has recently received a lot of attention as a way to complement cap and trade.
The most recent and highly publicized Green Bond plan was floated by the International Emissions Trading Association (IETA), which counts as its members many of the largest private players in the emissions trading industry. The idea for a Green Bond is aimed at tapping into massive pension and sovereign wealth funds (investment funds owned by countries). Up until now, many of these large money managers haven’t been able to fund carbon credit projects because they are only allowed to invest in projects with strong credit ratings that promise dependable financial returns. Most carbon credit projects create relatively unproven assets (carbon credits) and they often lack strong financial ratings. If Green Bonds can tap into these sources of funding they will be a huge step forward. The amount of public and private money needed to reduce global greenhouse gas (GHG) concentrations to a safe level is staggering. Some estimates suggest that up to $200 billion US will be required just to upgrade the energy sectors in developing economies, not including transportation and other GHG generating sectors, or the work that needs to be done in developed economies.
The IETA suggests using Green Bonds to finance projects in specific sectors with high GHG emissions, such as transportation or oil refining.
The Green Bond would repay investors in two ways: with a steady monetary rate of return on their investment (as in a traditional bond), and, if the project was successful, with a stream of carbon credits.
The hope is that International Financial Institutions (IFIs) like the World Bank and developed countries will guarantee the bonds for developing countries, which typically face high borrowing costs. This would help them obtain lower interest rates for their projects because if they default, the IFI or other guarantor would be required to pay investors back at a pre-determined rate.
While previous versions of the Green Bond have focused on return on investment, the IETA proposal has teeth as well. In order to encourage proper use of funds, IETA has suggested drafting the bonds so that if borrowing countries fail to meet their targets, they will be subject to higher interest payments and potentially early repayment. The developing country could also be excluded from future issuances of Green Bonds for failing to meet its obligations.
The Green Bond is a pretty exciting idea, particularly since it aims to tap some of the biggest pools of capital in the world. It can also be modified in many ways, with lower or no interest and higher proportions of carbon credit entitlements or an equity component. In addition, funds could be used to support both public and private sector projects.
The idea of Green Bonds is still at a preliminary stage. It is unclear whether widespread agreement to a supervisory body or even to the future of carbon credits will be forthcoming. These are pressing issues because large international investors will only sink billions of dollars into tools like this if they think that there is a real likelihood that the carbon credits they receive will be marketable.
Given the scope of the investment required to de-carbonize our economy and the Green Bond’s potential to help increase access to capital for developing countries, we hope this idea finds support among international decision makers.
The IETA’s draft concept note can be found here.
Originally Posted Thursday June 3, 2010 on http://www.corporateknights.ca
Video interview with Nimonik.ca on Climate law and trends
June 1, 2010
Recently I was interviewed by Yves Faguy at Nimonik.ca. We discussed the current scene in North America for climate law and policy.
