Now we have ratified the Paris Agreement what next?


November 18th, 2016

Today, the UK ratified the Paris climate agreement[1]. This means that we join a group of over 110 countries that have so far ratified a global agreement in record time, less than one year since its inception.

The UK delegation stand at the recent COP22 in Marrakesh

The UK delegation stand at the recent COP22 in Marrakesh

Last week on the 14th November, the Prime Minister, made a call. She said “Britain has ‘historic chance’ to give leadership to world[3] Today, in Marrakesh, the climate change negotiations enter their final day, with the negotiations having been laboured unlike in Paris and Lima before them. In Marrakesh there has been a lack of urgency, leadership and as a result the negotiations have stalled in lengthy discussion around protocol and rules. Bogged down around difficult issues such as Loss and Damage, or how to respond to the immense challenge of climate change particularly for those who are least able to respond themselves. This is an issue that chimes well with the PMs words last week, “To be the true global champion of free trade in this new modern world, we also need to do something to help those families and communities who can actually lose out from it”. I know she wasn’t specifically referring to climate change, but we have long recognised the link between climate change and the economy and how our collective failure to act on climate impacts the global economy.

Loss and Damage was added as a third pillar under Article 8 of the Paris Agreement. In responding to the Prime Minister’s call for leadership, in the climate arena there is no better issue where our collective skills could deliver real progress. This is something we have done before. In 2006 the government of the day published the Stern Review on the Economics of Climate Change[4]. For the UK government to take leadership – climate leadership – we could be instrumental in breaking the log jam on Loss and Damage. Currently Loss and Damage is stuck in a blame game between developed countries seen as responsible for causing the problem and developing countries seen as suffering from the problem – we must move away from this polarisation, but how?

TheresaCurrently the UK provides 5.8 Billion pounds in global assistance to tackle climate change. According to policy, half of this is for mitigation. Investment in developing countries to deliver renewable energy, energy efficiency and transform the power sector. This leaves 2.9 billion to respond to the very real threat of climate change, half should be invested in adaptation to changing climates and the remainder dedicated to support the most vulnerable people for who climate change adaptation is already too late.

For many people in small island states losing their land to sea level rise is a real problem; or to the multitude of small holder farmers forced to give up on agriculture due to seasonal shifts in climatic conditions, and we must not forget the voiceless the species, habitats and the ecosystem services they provide, upon which our daily lives depend; for food, freshwater, clean air and recreational space. The poorest and most vulnerable are running out of choices, these people are driving political and social change around the world and as we see reported in the news daily they form the climate migrants threatening to imbalance global systems as they seek refuge around the globe.

On Africa Day, 

This situation could be reversed if we could progress with the Loss and Damage debate. This is where the UK could take decisive action and be recognised for our bold commitment to not only act on climate change but also to provide a long term resilient solution to a global problem, one our close economic and political partners are struggling with too. Here at the negotiations we hear on an almost daily basis the challenge of how to unlock the missing trillions of global investments and how can they be diverted to drive climate smart investment?

First demonstrate UK commitment to the Loss and Damage debate by taking forward the proposal for a centre of excellence in the City of London on climate insurance, but broaden this away from purely insurance based solutions to more holistic investments. Insurance we know is unaffordable to the people that Loss and Damage needs to help. Now is the time for leadership, come up with some innovative suggestions on how to finance Loss and Damage with the deadline for submissions the 27th February 2017. We know if it’s not led, the process will move slowly and could be framed under a context we are not comfortable with.

Secondly – this is why a clear distinction between Loss and Damage and Adaptation and Mitigation is urgently needed. The UK has significant leadership in the thought debate related to climate change, so we are well placed to influence. A definition of a clear space for Loss and Damage would halt the waste of time spent arguing about “what it is” and “what it is not”. This would focus efforts on developing solutions. Defining the space for Loss and Damage brings together what are currently different perspectives. Different perspectives imply different priorities so coherence on Loss and Damage would help consolidate action.

Session photo

And finally, the missing piece of the jigsaw the missing trillions. Current UK investment exposure is considerable, especially in respect to retirement and insurance funds exposed to increasing climate, social and political risk. These funds well directed could be catalytic in transforming the role of private sector investment in driving climate smart development. Exploring innovative finance by eradicating outdated fossil fuel subsidies or from new sources from the aviation or shipping industries. We need a global finance system that works for the planet. The UK could contribute to develop pro poor and climate smart investment principles, which deliver for the planet and for the poorest, therefore building the ecological and social stability we all need.

The UK Is well placed to contribute to moving forward the Loss and Damage debate as we have the technical and thought leadership necessary to explore the debate in detail. This was something that Practical Action along with the MET Office, Oxford University, Lund University and IIASA did in Marrakesh last week in our side event titled “Loss and Damage; Perspectives and options”. We have the global skills in innovative financing, insurance and investment necessary to unlock the missing trillions, and finally whatever we recommend, Loss and Damage has got to be about more than just insurance.

[1] http://www.bbc.com/news/science-environment-38014611

[3] http://www.bbc.com/news/uk-politics-37966519

[4] https://web.archive.org/web/20081211182219/http://www.hm-treasury.gov.uk/stern_review_final_report.htm

 

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