….. as we approach the Rio+20 Earth Summit, which will focus heavily on how to account for the way businesses use the planet’s natural capital. Investors and corporations are becoming increasingly aware of the extent to which their value chains are influenced by natural resource constraints which lead to increasing price volatility and risk of business interruption. CDP has pioneered a global disclosure system that helps businesses understand and value the current and future impacts from a changing climate and natural resource scarcity, as the world seeks to move towards a sustainable economy.
Forests provide essential ecosystem services that underpin our well being and economic prosperity and their destruction contributes around 15% of global carbon emissions. The issues of energy, climate change, water and forests should not be considered in isolation as all are inextricably linked. Having this information in one place will encourage and facilitate joined up thinking on the subject.
Making climate finance an effective driver of sustainable development, is now the most important subject that needs a through discussion, it was observed at the side events in the run up to Rio+20 Summit – on the 13th June that, Climate finance could become a powerful driver of sustainable development. By supporting mitigation, adaptation and capacity building, it can help build the governmental, social, economic and physical infrastructures needed to achieve poverty reduction and green economy growth. However, without concerted efforts to strengthen the governance of climate financing, these goals will remain elusive.
Presently climate money is channelled through a complex network of public and private institutions, where decision-making can be opaque and unaccountable, and independent oversight absent or under-funded. This heightens the risk of policy capture, mismanagement or corruption; all serious impediments to the Rio+20 agenda. Fiduciary standards such as those espoused by the GEF represent an important attempt to safeguard climate financing against abuse. Transparency, accountability and ethics are fundamental. But what are the challenges to implementing and enforcing these safeguards? And what are the best practice scenarios we can learn from?
The Rio+20 conference comes at a critical time in the development of climate finance governance. This year the global Green Climate Fund will enter into operation, once key decisions are taken over its governance structures. In 2012, OECD countries will also have to deliver on outstanding fast-track climate finance commitments, meaning billions of US dollars should enter circulation before December. Given the potential volumes involved and the relatively untested nature of its institutional framework, climate finance must be treated as a new and emerging challenge’, distinct from development aid. The Rio+20 outcome document currently under negotiation is missing this link.
World leaders have a chance at Rio+20 to stop subsidizing fossil fuels to the tune of nearly $1 trillion and make an important dent in reducing global warming.
The above statements which I have gathered together, shows that there is a lot of movement towards actually having a GEF which can make the desired positive change towards climate change. But what is most important is to have CSR mandatory, in India we are having a lot of buzz around the Government proposal of making CSR mandatory with both FICCI and CII opposing it. Before we understand in depth the reason for this opposition, let us put on record that nearly 16% of the top 100 listed companies in India are already having an CSR policy in place.
Now how many from the 16% are actually into People -Planet -Profit the 3 bottom line, which should make the baseline of any CSR is not known.
Corporate will do anything in which they see value. So when we speak of CSR, and CDP would be seen as such; we must be able to actually gauge which corporate is actually utilizing Community resources, and giving back to the People and Planet over and above what it must. Because more often than not, the mandatory obligation such as rehabilitating the project affected people, say from a mining site or a hydro-power project is passed on as CSR. So the danger lies in the CDP being used for market study of a corporate to understand its future business plans and passed on as CSR.
Another, danger is that we are already seeing a lot of commitment based on absent funds, especially in relation to solutions which have a direct bearing to climate change. There are Governments which in one hand declaring a financial crisis and on the other hand committing Millions for Climate change mitigation. How are both possible ? At Rio+20 we must keep our hearing sharp to understand fact from fiction.
Having said that, we all know that Peoples are interested in mitigation and adaptation to climate change. And this may be somewhat possible even without “money” as we understand the term. My suggestion would be that policy makers around the World can sit down and list product and process which they have in excess and find a system to barter that advantage with other Nations who have a deficit of the same. Thus some of the commitments which otherwise would have required money and man-power can be overcome. The idea is to look at “profit” from all-together different perspective and thus give a new meaning to the “triple bottom line”.
- Pacific island states push for good ocean management at Rio+20 (radioaustralia.net.au)
- Rio+20 Day 5 Live: Coverage from the UN Summit on Sustainable Development (rtcc.org)
- Video: What’s wrong with the green economy?: Joanna Cabello of Carbon Trade Watch at Rio+20 (climate-connections.org)
- Rio+20: We take our ecosystems and biodiversity for granted (rtcc.org)
- Rio +20: Prince Charles warning on climate change (telegraph.co.uk)
- ADVISORY: WRI Hosts Panels on Business Strategies, Climate Change and Green Economy at Rio+20 (wri.org)
- Rio+20: Canada shielding fossil fuel subsidies at Earth Summit (theprovince.com)
- Profiting from the Environment (the right way) (growthology.org)