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Entries tagged "climate change"Page 1 • 2 • 3 • 4 • 5 Next
The World Bank likes to talk a good game on climate change. But when it comes to taking action, its approach can be “too narrowly focused, small scale and uncoordinated,” admits Bank President Jim Yong Kim. Worse still, it often backs entirely the wrong strategies, like carbon markets, while continuing to invest billions every year in new fossil fuel infrastructure.
VIEW NEW WEBSITE HERE: www.climatemarkets.org.
Since taking the helm, Jim Kim has made repeated promises that addressing climate change – and the devastating impacts it has on development – will be at the center of the Bank’s agenda. Key to this is a new Presidential Task Force on Climate Change, which will examine fossil fuel subsidies, carbon markets, “climate smart” agriculture, and partnerships to build cleaner cities. At the same time, the Bank’s low-income focused International Development Association (IDA), and its private sector arm, the International Finance Corporation (IFC), have both identified climate financing as a priority area.
The World Bank-IMF spring meetings convening in Washington DC provide an opportunity for the Bank to flesh out a new approach. The early signs are not promising, though. Carbon markets remain a central pole of the bank’s strategy, with $110 million pledged to a “Partnership for Market Readiness” that is encouraging the creation of new markets modeled on a European scheme that has already virtually collapsed.
There are indications, too, that much of the Bank’s “bold” new thinking is based on reaching out to the financial sector, using some of the same Wall Street tricks that proved so devastating for the United States and global economy in the 2008 crash. The Bank isn’t alone in this approach: the Green Climate Fund, and many of the other international financial institutions, are looking to encourage (“leverage”) private sector finance to plug the massive holes in climate financing left by industrialized countries failing to meet their obligations.
Dusting down the same old financial approaches isn’t going to work. In climate circles, it's already possible to hear the familiar refrain that rich-country austerity means that “There Is No Alternative” to courting the private sector. To which we’d respond: the United States is not broke, and neither are the other industrialized (“Annex I”) countries that should be making far larger public financial contributions and developing ambitious domestic plans to curb the greenhouse gas emissions that cause climate change. On the financial side, these could be supplemented by a range of genuinely “innovative” approaches, including financial transaction taxes, or a "Robin Hood tax."
We’ve set up a new website on Climate Finance and Markets (climatemarkets.org) to explore these new approaches, and to monitor how the World Bank, the Green Climate Fund and others are courting the financial sector.
The site, put together by IPS with the support of the Heinrich Böll Foundation North America, offers a range of materials that could help climate activists and advocates understand the new financial tools that are emerging, the role of key private sector actors (from banks to private equity funds), attempts to “leverage” private investment, and alternatives to this Wall Street-driven approach. Bank staff, public officials and journalists attending the World Bank-IMF spring meetings could even learn a thing or too as well.
IPS joined other members of the U.S. Robin Hood Tax campaign in Washington DC, where officials from the finance and climate ministries of select developed countries met to discuss how to mobilize private sector investment in developing countries to address climate change. Chanting, "Human need, not corporate greed! Robin Hood Tax now!" protesters dressed as polar bears, farmers, and bankers engaged with officials entering the meeting to urge them to support a Robin Hood Tax.
This demonstration drew attention to the fact that trillions of dollars of public money have been spent to bail out Wall Street while government officials pay short shrift to untapped and extremely promising innovative sources of public money like a Robin Hood Tax. In doing so, officials risk putting corporate profits over the needs of climate-impacted people.
Both the financial crisis and the recession have left a massive hole in public finances, threatening job creation, community services, and the ability to address climate change. While Wall Street has already bounced back, ordinary people are still trying to recover from problems caused by corporate abuse in the financial sector. The Robin Hood Tax calls for the institution of a small tax of less than half of one percent on Wall Street transactions in order to generate many billions of dollars each year toward crucial public goods and services, like healthcare, education, and helping the world’s poor confront the climate crisis.
VIEW RECENT ARTICLE ON CLIMATE FINANCE BY JANET REDMAN: http://www.fpif.org/articles/wall_streets_climate_finance_bonanza
April 10, 2013 · By Janet Redman and Antonio Tricarico
Government officials from an elite group of developed countries meeting in Washington, D.C. at the invitation of U.S. climate envoy Todd Stern appear to be on the brink of instigating yet another corporate handout and big bank giveaway—this time in the name of fighting climate change.
If it follows a recently leaked agenda, the meeting will focus on using capital markets to raise money for climate finance. The goal is to fill the void left by the United States and other developed nations that have failed to meet their legal obligations to deliver funding to poorer countries for climate programs.
In this corporate-oriented approach, countries would provide generous loan guarantees and export subsidies that sweeten investments for private firms and give them the chance to net big profits while leaving governments (and the taxpayers they represent) to cover the losses if investors’ bets don’t pay off. Wealthy countries would then be able to claim that they had moved billions of dollars of new climate investments.
Unfortunately, the projects best placed to benefit from large-scale private investment and market mechanisms—like mega-infrastructure projects and fossil fuel-powered ventures that hide behind a “low-carbon” label—are likely to be those that have fewest sustainable development benefits. In many cases, the funding will channel windfall profits to corporations that would have invested profitably even without these new channels of support.
The sad fact is that this has happened before. Nations spent five years negotiating the Kyoto Protocol—the only multilateral treaty to regulate emissions of greenhouse gasses and spell out binding targets for reducing climate pollution. But before the treaty was finalized in 1997, the United States led a push to replace the enforcement mechanism—a fine for missing reduction targets paid into a clean development fund—with a market mechanism meant to lower the cost of compliance for polluting companies. The accompanying clean development mechanism (CDM) was born so that companies in the industrialized world could purchase ultra-cheap carbon pollution credits from developing nations to offset their continued pollution at home.
In the end the United States pulled out of the Kyoto treaty. But by shifting a global regulatory regime into a market-based regime centered on enticing private-sector investment with promises of profitability, Washington left its mark.
A decade and half later, carbon markets have collapsed, developing countries are awash with carbon credits for which there is no demand, and the planet keeps getting warmer.
Meanwhile, the clean development mechanism has led to private sector investment in spurious projects like mega-hydropower dams and coal-fired power plants that have delivered little in the way of sustainable development outcomes—and in some cases have further harmed the environment and human health.
Passing the Buck
And now Washington is at it again, hijacking the debate about how to support the global transition to a low-carbon, climate-resilient economy—and keeping the public, the press, and even developing countries out of the conversation. They’re repeating the same tired story that rich governments are broke and thus have to call in the private sector to finance climate change solutions.
In today’s economy, mobilizing private finance means going to the capital markets to raise money. But relying on financial markets for funding to support renewable, clean energy or to resettle climate refugees would subordinate climate action to the speculative whims of bankers.
Americans have visceral reminders of the consequences of leaving decisions about critical needs to the market—the more than 1.6 million families locked out of their homes and the $2.5 trillion in taxpayer dollars handed over to bail out Wall Street and U.S. car companies are just two. Europeans can point to the recent bailout after the carbon bubble burst. If a global climate finance bubble were to burst, we wouldn’t just lose our houses; we might have lost our chance at averting catastrophic global warming.
Governments in the developed world shouldn’t pass the buck to the private sector. They must act now. They can start by cutting subsidies for fossil fuels, including for natural gas “fracking” in the United States, and set binding regulation for reducing climate change pollution. Then governments can adopt innovative ways to raise public money, like taxing pollution from shipping or financial transactions. Indeed, even a very low financial transactions tax would generate substantial revenue and deleverage capital markets.
And of course, if there is any hope of creating a new paradigm of climate-sound development, there will have to be a role for the private sector. But the micro, small, and medium enterprises of the developing world would be preferable partners to the multinational firms that have been responsible for sucking wealth and resources out of countries for decades, leaving pollution and poverty in their wake.
At some point—and for the sake of the future generations who will bear the results of our decisions, we hope it’s sooner rather than later—the government officials who place their bets on private finance will have to learn that putting corporate profits over the needs of climate-impacted people is a risk the rest of us are not willing to take.
Antonio Tricarico is director of the New Public Finance program of the Italian organization Re:Common based in Rome and a former economic correspondent at the Italian newspaper Il Manifesto.
Janet Redman is the co-director of the Sustainable Energy and Economy Network at the Institute for Policy Studies in Washington, DC.
Editorial support by Peter Certo and Oscar Reyes of the Institute for Policy Studies.
** This piece originally appeared in Foreign Policy In Focus
February 13, 2013 · By Janet Redman
1) Say no to the Keystone XL pipeline.
Without waiting for Congress the State Department can deny TransCanada’s request for permission to build a pipeline across the United States carrying toxic tar sand oil to polluting refineries in the Gulf of Mexico.
2) Regulate power plants.
Since the Supreme Court ruled that greenhouse gases are pollutants in 2007, the Environmental Protection Agency has the power to put controls on carbon emissions. This means the EPA has tools to regulate new and existing power plants and industrial sources that are spewing methane, nitrous oxide and soot into the air.
3) Curb natural gas exports.
The Department of Energy can reject licenses for oil and gas industry to expand their export of liquid natural gas to countries with which we don’t already have free trade agreements. And Obama could direct the U.S. Trade Representative to withdraw from negotiations on the TransPacific Partnership, which would fling the doors wide open to LNG export to countries in Asia.
4) Negotiate a global climate deal in good faith.
Obama should instruct the climate team at the State Department to return to the negotiating table ready to compromise in order to reach international consensus for a strong and equitable 2015 climate treaty.
February 12, 2013 · By Janet Redman
In the last year, climate change has come home to the United States in a visceral way. During his State of the Union address, Obama should lay out bold plans for the transition to an ecologically sane economy that reduces inequality.
Images of waves crashing into the Statue of Liberty, wildfires engulfing homes in Colorado, and flood water shutting down the Louisiana interstate have rocked the American psyche over the past twelve months.
For me, 2012 meant living through record-breaking heat waves that buckled metro tracks and derailed commuter trains in my adopted home of Washington, DC. Sadly it also meant saying good-bye to the beach on the Jersey shore where my brother and I played as kids.
Since Obama committed the United States to responding to climate change in his inaugural address, saying that a “the failure to do so would betray our children and future generations,” American families in the Southeast were hit by severe tornados and in the Northeast by crippling snowstorms.
Of course, dealing with climate change in our country is about more than bad weather. We’ve heard about how battered infrastructure and closed businesses strain on national and local coffers. We hear less about how climate change exacerbates inequality — disproportionately impacting the lives and livelihoods of people living in poverty and low-income communities.
A shot at a better life for everyone has to entail a shift away from an “all of the above” energy plan that includes sources that poison people, pollute the environment, and lock us into decades of pumping carbon dioxide into the atmosphere. The expansion of fossil fuels and the increasingly extreme ways of getting at it — through fracking, deepwater drilling and blasting the tops off mountains — has got to go the way of the dinosaurs.
Obama said that “the path towards sustainable energy sources will be long and sometimes difficult” — no less because the fossil fuel industry and the members of Congress to whom they contribute continue to undermine legislative action on climate. But the transition to shared prosperity and a vibrant clean economy can be made easier with sustained leadership from the president and his administration.
Here are a few actions Obama can take without Congress that he can highlight in tonight’s State of the Union address to show he’s serious about the fight against global warming:
- Say no to the Keystone XL pipeline. Without waiting for Congress the State Department can deny TransCanada’s request for permission to build a pipeline across the United States carrying toxic tar sand oil to polluting refineries in the Gulf of Mexico.
- Regulate power plants. Since the Supreme Court ruled that greenhouse gases are pollutants in 2007, the Environmental Protection Agency has the power to put controls on carbon emissions. This means the EPA has tools to regulate new and existing power plants and industrial sources that are spewing methane, nitrous oxide and soot into the air.
- Curb natural gas exports. The Department of Energy can reject licenses for oil and gas industry to expand their export of liquid natural gas to countries with which we don’t already have free trade agreements. And Obama could direct the U.S. Trade Representative to withdraw from negotiations on the TransPacific Partnership, which would fling the doors wide open to LNG export to countries in Asia.
- Negotiate a global climate deal in good faith. Obama should instruct the climate team at the State Department to return to the negotiating table ready to compromise in order to reach international consensus for a strong and equitable 2015 climate treaty.
Obama doesn’t have to wait for Congress to act — and we don’t have to wait for Obama, either.
People have already started. They’re putting their bodies in the path of Keystone’s southern leg to halt construction. They’re closing down dirty power plants in the cities where they live and work, and meeting with neighbors to create plans to make their communities climate resilient. And thousands of people from around the country will gather in Washington, DC this weekend to call on Obama to push forward on climate in his second term.
Tonight, as Obama addresses the nation he’ll be laying the groundwork for his climate legacy. His comments will also shape how the growing majority of Americans who care about global warming perceive him — as a climate champion or an agent of politics as usual.