Published:
December 21 2009, 02:45 PM
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by
Sonny Masero
We all know that the expectations for the Copenhagen conference were very high, but after two years of negotiations many of those people closely involved in the negotiations knew, at least for the last few months, that a substantive agreement on global targets, finance and forestry was unlikely at the conference. There was hope that the appearance of so many powerful heads of state would make the difference, but ultimately many feel let down by the Copenhagen Accord.
The Accord has no hard target nor a clear position on measures to prevent further deforestation and perhaps most importantly there is no timetable for the legal agreement required to replace the Kyoto Agreement in 2012. Hope now turns to the negotiations in Germany in June and in Mexico in November 2010.
What can we take from Copenhagen? In the end we did see collaboration between some of the countries with the largest proportions of global emissions: USA, China, India, Brazil and South Africa agreed to the Accord, which included the vital reference point of a limit on global temperate rise of 2 degrees Celsius. Even if there is not a plan to deliver this goal it will be hard for global leaders to now challenge the science and the equity of the need to act on climate change. It is not a case of whether action will happen, but when.
The evidence base for urgent action is building and this includes the economic basis for early action before 2020 rather than further delay. The year 2010 will be a time for domestic climate policy to progress and for organizations to continue to position themselves for the transition to a low carbon economy. There are many who are already leading this change and are benefiting from this enlightened management of risk. Structural change is happening in many institutions on a global scale and only time will tell whether we are making that change quick enough.
As a company CA is preparing for a low carbon economy, both as an organization and in our products. The prospects for 2010-2015 are promising and we are already working with some of the organizations that are the sustainability leaders in their space. Like many other businesses though we need clarity from the UNFCCC negotiations in 2010 to ensure we invest wisely.
Published:
December 11 2009, 10:00 AM
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by
Sonny Masero
With President Obama and President Hu Jintao attending the UN Climate Change Conference in Copenhagen next week, the climate change community is almost at fever pitch. Why is Copenhagen a big deal? It has been billed as the event when an international agreement on global climate change policy will be agreed to supersede the Kyoto Agreement which comes to an end in 2012. To combat man-made climate change, the Kyoto agreement is responsible for introducing "emissions trading" and was the political basis for the international carbon market being established. The size of the carbon market in 2008 was estimated at between €92bn-€118bn and will continue to grow as more stringent targets are set and the scope expanded. The Kyoto Agreement also sets out greenhouse gas emission reduction targets for 26 countries in the European Union, Canada, Japan and Australia, amongst others. A successor agreement is vital for long term economic growth and for the future of the international carbon market.
In Copenhagen over the next fortnight, the reality is that a political agreement could be reached, which would set out the over-arching principles of a legal agreement. It will then be down to detailed negotiations over the next year before an enforceable agreement will be reached. Whatever the outcome, the fact that some of the most powerful men in the world will be in Copenhagen next week surrounded by the largest corporate lobby group seen at these negotiations in 15 years indicates that climate change is not about to disappear as an issue for the public or the private sector. In fact, the absence of an international agreement will make progress more complicated as regional and voluntary initiatives move forward regardless.
What does this mean for business? This high level of anticipation is an indication of the future direction of the market. Regional and national climate change policy and regulation is moving forward with or without an international agreement. Investors now see climate change as a material business risk. Companies now see carbon management and low carbon products and services as essential for competitive advantage. Governments recognize that their electorate is concerned about climate change and that they need to be seen to be taking action. The changes required to reduce greenhouse gas emissions won't come if the aim is just to protect the planet, but they will happen if the low carbon solutions also help reduce costs, demonstrate regulatory compliance, differentiate products & services, help to retain the best staff and respond to other stakeholder demands on transparency, active management and reporting. As national and international climate change policy grows up, environmental governance will mature as well.
The proliferation of voluntary and regulatory initiatives around the globe means there has been an exponential growth in data collection, analysis and reporting over the last few years. Due to the dispersed nature of the data collection, this is often a hidden cost within organizations, spread across several budget lines. Companies like Tesco have realized that a more intelligent solution is required to bring the spreadsheets under control. Working with CA ecoSoftware, Tesco is efficiently collecting data from its global operations providing immediate visibility through a centralized system. This is a competitive advantage because it provides better and more immediate information on which to make informed decision and make clear communications to a variety of audiences. The nature of this response is one example of the rapidly expanding demand for environmental software in response to the global debate on climate change.