Check out the interview with CEBDS president Marina Grossi for Smart Mobility Blog from the Ticket Log:
The 22nd edition of the Conference of the Parties, COP, took place in November in Morocco (city of Marrakesh) and was marked by much positivity and good progress. The Conference of the Parties (COP) is the supreme body of the United Nations Framework Convention on Climate Change (UNFCCC), which annually brings together the Party countries in global conferences. Its decisions, collective and consensual, can only be taken if they are unanimously accepted by the Parties, being sovereign and valid for all signatory countries.
In 2015, the outcome of the COP held in France was the “Paris Agreement,” which set ambitious goals to curb global temperature rises. The 2016 edition began with the announcement that 100 countries, including Brazil, had accepted the objectives proposed by the Agreement. For Amanda Kardosh, a sustainability expert, “the Paris Agreement surprised everyone positively due to the speed with which it was ratified. No one expected to start the Conference in Marrakesh with the agreement already in force, supported by more than 100 countries,” she notes.
Brazil was a highlight at the Conference, with a delegation of over 270 members, including authorities, business representatives and civil society. “In all spheres, the country stood out with proposals supported by concrete examples of action in pursuit of a low-carbon economy. Brazil has a leadership role because it is the only developing country with absolute emissions reduction targets, assumed in its commitments. In addition, it has been the country that has reduced emissions the most in recent decades due to the control of deforestation”, adds Amanda.
On that occasion, Brazil and 19 other countries signed a commitment to the Biofuture Platform, which aims to leverage the presence of biofuels in the global energy matrix. In the opinion of David Canassa, general manager of Sustainability at the Votorantim Group, and one of those present at the Conference, it is a good opportunity for us, because “new markets can open up for Brazil, as well as bringing new technologies to our country, which has an abundance of biomass and can provide not only the domestic fleet, but also export biofuels”. According to him, the role of Brazilian companies should increase with the Platform. “Many companies are engaged, but they are not the majority. The regulation of the iNDC (Intended Nationally Determined Contributions), in terms of biofuels, will be an important lever in increasing this engagement and developing new business opportunities”.
Canassa also emphasizes that with the new goals proposed and commitments made by the country, companies will have opportunities to incorporate improvements into their processes. “We have several opportunities, especially with the goals related to energy efficiency, biofuels and improvement in the logistics network, with technologies that incorporate the low-carbon concept. New businesses can be developed and significant improvements incorporated into companies’ processes. In addition, we have to value Brazilian products compared to other nations, since our production is much less carbon-intensive,” he concludes.
Amanda warns that Brazil needs to look carefully at two key segments to achieve its goal: Energy and Agriculture. “With emphasis on the energy sector, companies have a fundamental role in this task. Words such as energy efficiency and renewable fuels should be on the agenda of all those who aim to stand out in the coming years.”
One of the main spokespeople for the business sector, CEBDS – Brazilian Business Council for Sustainable Development – was represented by its president Marina Grossi, who spoke exclusively with the Sou Mobilidade blog about Brazilian participation and the challenges for the coming years.
1 – What is your assessment of COP22?
COP22 was very important in confirming the ambition of the Paris Agreement. Given all the fears that arose with the election of Donald Trump in the US, on the eve of the Conference, the first major message that came out of Marrakesh was: nothing can stop global climate action. Furthermore, it is worth noting that the Conference was less focused on negotiations and more focused on the action and engagement of all agents that are not parties to the Convention, represented by the governments of the various countries, but who are the essence of implementing the commitments to decarbonize economies, such as the business sector. And this is extremely positive. Therefore, the second major message of this COP was to affirm joint action – by governments, the productive sector, the financial sector, as well as research and technological development institutes and other important agents – as the way to achieve the long-term goal of keeping global warming below 2ºC, with efforts to contain it to 1.5ºC.
2 – Do you think there has been progress since the Paris Agreement in 2015?
Yes. It was interesting to see the continuation of this powerful collaboration of leaders that gave rise to the Paris Agreement now focusing on its implementation. The discussions revolved around the measures needed to attract the appropriate financial flows for the new low-carbon economy, new technology frameworks, and support for developing countries and those most vulnerable to climate change, for example.
One of the outcomes of COP22 was the commitment of developed countries to mobilize US$100 billion per year by 2020. Signals like these encourage companies to invest more confidently in the low-carbon economy, even though we need much more. The document Marrakech Partnershipindicates that investments of US$1.4 trillion will be needed to achieve the objectives of the Paris Agreement.
That is why COP22 was marked by – and continues in full swing – debates on climate finance and mechanisms capable of enabling the transition to the new economy, such as carbon pricing. CEBDS launched a study on this topic during the event, together with the Ministry of the Environment, in Marrakesh. It was carried out in partnership with CDP and supported by We Mean Business, the study 'Carbon pricing: what the business sector needs to know to position itself' aims to provide Brazilian businesspeople with all the necessary information about these mechanisms, their effectiveness in reducing emissions, benefits to socioeconomic development, among other information.
3 – As a Business Council, inserted in this corporate context in Brazil, how do you evaluate the performance of Brazilian companies on the climate issue? Is there a real concern or just marketing speeches?
As president of CEBDS, I see a significant and growing number of companies considering the future scenario of the low-carbon economy in their strategic planning. They are increasingly aware of the changes that will come as a result of the developments of the climate pact, especially the commitments made by Brazil under the Paris Agreement. This is increasingly a question of business survival and there are already numerous tools that measure the risks posed to thebusiness.
Furthermore, it is important to understand that the price of carbon will rise to a new level. Reducing greenhouse gas emissions brings opportunities to the business world and this is not just a trend, but a factor that affects the competitiveness of companies and countries.
During COP22, very interesting business cases were presented, such as that of Ticket Log, who explained how she managed to generate 15 thousand tons of carbon credits in 2015 by exchanging gasoline for ethanol in the supply of fleets of her client companies.
Many companies are willing and committed to working together with the government, civil society organizations and experts to make Brazil's goal a reality, effectively contributing to the resumption of economic growth in more sustainable terms and paving the way towards a low-carbon Brazilian economy.
We still face some barriers to financing, lack of incentives for innovation and even lack of information. This is why CEBDS is dedicated to bringing together the business sector to build common solutions. We are currently working on a study to support the strategic planning for implementing the commitments made by Brazil in the Paris Agreement. We will deliver it to the Federal Government in early 2017.
4 – What are your expectations for next year? What do you think should move forward or remain stagnant until the next COP?
The business sector has an important role to play in strengthening networking and also in placing innovative technological solutions at the center of the global climate action agenda. The expectation is that innovative and disruptive solutions will be more valued than ever and that low-carbon businesses will gain a lot of visibility. There are several movements seeking to redirect existing resources and channel new ones towards this. Despite the recession, this is a market that will grow, due to foreign investments that can be raised at low interest rates. The issuance of green bonds, which quadrupled from 2013 to 2016 worldwide, is expected to gain a major boost in Brazil. Until the middle of this year, the country had the potential to issue US$$ 2.4 billion in green bonds, however, only 23% were labeled as such.
*Image: RH Online Magazine
*Post published on 12/07/2016.
