*By Marina Grossi
A 23rd Conference of the Parties (COP23) of the United Nations Framework Convention on Climate Change (UNFCCC, its acronym in English) placed on the negotiating table the urgency of expanding actions to mitigate and adapt to climate change. This edition was chaired by Fiji, a small island state whose existence is threatened by the effects of climate change. The symbolism was intentional and its impact was great. For Fiji, as for other nations in the same situation, combating climate change is a matter of pure and simple survival.
The highlight of this COP, hosted in Bonn since Fiji does not have the infrastructure to host events of this size, was the regulation and creation of a book of rules, which will allow the effective implementation and monitoring of the Paris Agreement. Right at the beginning of the negotiations, we received news that the Syrian government announced its adherence to the Agreement, despite the precarious political situation in that country. It is a sign of Syria's effort to return to a place of geopolitical normality among the nations of the world.
In Fiji-Bonn, it became clear that President Donald Trump's position, contrary to the terms of the Agreement, had no significant effect on actions taken by other relevant actors in American society. Next to Bula Zone, one of the areas that hosted the conference, it was possible to find the space We Are Still In, which represented nearly 2,500 cities, states, tribes, businesses, universities and religious groups that came together in US Climate Alliance. Even without government presence or sponsorship, it was clear that the Paris Agreement points to an irreversible path.
At COP23, the Brazilian Business Council for Sustainable Development (CEBDS) showed how it has been contributing to central discussions to advance the implementation of the Agreement and, especially, the Brazilian NDC. We argue that the strategy to achieve the NDC goals must be seen as a low-carbon development agenda for the country. This agenda will create economic opportunities that will lead to positive results in production, job and income generation, and environmental conservation. In this sense, Brazil boasts important assets that can become competitive advantages in the global market if the country continues on the path of transition to a low-carbon economy. Our publication Opportunities and Challenges of the Brazilian NDC Goals for the Business Sector points out the countless possibilities of this process.
On November 10th, we held a side event in Espaço Brasil which addressed the contributions of large companies such as Braskem, Monsanto, Votorantim and Grupo Boticário, to low-carbon development, including reflections on long-term developments. On this occasion, we took the opportunity to launch the publication Green Bonds – Ecosystem, Issuance, Process and Regional Perspectives, in partnership with GIZ, a German cooperation agency, and SEB, a Scandinavian bank with pioneering activity in the green bond market. The study presents problems and solutions for the development of this topic in Brazil, the main actors involved, the issuance process and the challenges to expand its market presence.
During our event, the chief negotiator of the Brazilian delegation, ambassador José Antônio Marcondes, reaffirmed the importance of the business sector's participation in the COP. The comment was made in response to the statement by Fiji's ambassador, Deo Saran, who, by facilitating an open dialogue on the participation of non-governmental actors in the COP, even positioning himself neutrally, opened the possibility for some countries to express themselves in a contrary to private sector participation. I believe that the business sector is an agent driving innovation and social transformation and its participation is central in the transition to a low-carbon economy.
For some time now, CEBDS has been working to promote the green bond market in our country. In partnership with the Climate Bonds Initiative, we reorganized the Brazilian Council for Sustainable Market Development, which came to be called Brazilian Green Finance Council. Last year, we launched the Guide for Issuing Green Bonds in Brazil, in partnership with the Brazilian Federation of Banks, detailing the issuance process and discussing expansion strategies.
Water security was also one of our concerns. On the 13th, CEBDS participated in the panel promoted by the National Water Agency. The deep relationship between water security management and the climate issue was discussed. This theme will also be present at the 8th World Water Forum, which will take place in Brazil in 2018. CEBDS occupies the position of chair of the Forum's Sustainability Focus Group.
Our member companies present at the conference took to the international stage concrete examples of actions in renewable energy and technologies to reduce greenhouse gas (GHG) emissions in industry, forestry and agriculture. Braskem, for example, presented data showing a reduction of 18% in its GHG emissions and announced a partnership with Haldor Topsoe for the production of chemicals from renewable sources. The Votorantim Group has invested in Legado das Águas – Reserva Votorantim, the largest private Atlantic Forest reserve in Brazil. It is a sign that the Brazilian business sector is paying attention and is making efforts to create, implement and share low-carbon solutions.
Another highlight of this COP was the complex issue of carbon pricing. A Carbon Pricing Leadership Coalition, an initiative of the World Bank, organized the panel Leaders' Voices on Carbon Pricing to Drive Climate Action, which had the participation of several leaders from governments, companies and organizations with the aim of reflecting on recent advances in pricing in the world. I was there to talk about the Brazilian context and our efforts to move this agenda forward.
The ambitions of the various NDCs reaffirm the importance of evolving pricing mechanisms. Recently, the Climate Business Initiative (IEC), of which we are members, launched the Open Letter: Business Sector Supports Carbon Pricing in Brazil, defending the establishment of a pricing mechanism suited to the characteristics of the economy and the GHG emissions profile of our country. At COP, IEC also held an event on the 13th, at which I was a speaker, to discuss the role of pricing mechanisms in achieving NDC goals.
Speaking of ambitions, Fiji-Bonn also came out with a proposal for the Talanoa Dialogue, which will discuss in 2018 the expansion of financing targets and cutting greenhouse gas emissions. Recently, the United Nations Environment Program (UNEP) released the report Emissions Gap, which warns that the period from 2018 to 2020 is the last chance to put the world on the path to a low-carbon economy, capable of stabilizing global warming in less than 2OW.
Brazil took one of the largest COP delegations, with around 130 people. Our country maintained its historic position of leadership and reaffirmation of our commitments, we left the conference with the draft implementation manual for the agreement and convinced that we can increase the ambitions of our NDC.
*President of the Brazilian Business Council for Sustainable Development (CEBDS).
