The world and the global market are undergoing significant transformations. To curb climate change, it is essential that a low-carbon economy be achieved.
To this end, a series of measures are being taken, all aimed at directing the market and nations towards sustainable development, where social and environmental impacts are not negative.
The UN has protocols in place and in this text you will learn more about the history of combating climate change and the debate at the corporate/public level. Also see how Brazil is inserted in this context.
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History of the United Nations Framework Convention
The United Nations Framework Convention (UNFCCC) was created in 1992, as one of the three outcomes of Rio 92, and entered into force on March 21, 1994. Today, 197 countries have adhered to the Convention and the nations that have ratified it are called Parties to the Convention.
The Convention recognized the existence of climate change as a problem directly related to human activity and created annual meetings called the Conference of the Parties (COP). These have become the main global meetings to discuss measures to combat climate change.
The objective of the Convention is to stabilize greenhouse gas concentrations at a level that prevents dangerous interference with the climate system. The time frame for achieving this objective must be sufficient for ecosystems to adapt naturally to climate change.
This is necessary to ensure sustainable socioeconomic development, as well as to guarantee food production, preserve biodiversity and, most importantly, combat climate change and its consequences.
Kyoto Protocol
In 1997, countries met in Kyoto, Japan, for the Conference of the Parties. The goal was to reinforce stronger global commitments regarding climate change and the reduction of greenhouse gas emissions.
This meeting resulted in the Kyoto Protocol, an international treaty that sets mandatory reduction targets for the main greenhouse gases. Despite resistance from some developed countries, the principle of common but differentiated responsibility was agreed upon. Thus, developed and industrialized countries (belonging to the so-called Annex I), because they are historically responsible for emissions and have greater economic conditions to bear the costs, would be the first to assume the reduction targets by 2012. Developing countries would have until 2020, the second period of the Protocol, to achieve their reduction targets.
The Protocol came into force in 2005. Only after Russia signed it did they reach the number of 55 countries responsible for 55% of global emissions.
National Policy on Climate Change
The National Policy on Climate Change (PNMC) was created in 2009 in the context of the 15th Conference of the Parties (COP), which took place in Copenhagen.
It formalizes Brazil's voluntary commitment to the United Nations Framework Convention on Climate Change to reduce greenhouse gas emissions by between 36.1% and 38.9% of projected emissions by 2020. The policy seeks to ensure that economic and social development contribute to the protection of the global climate system.
The objectives achieved by the PNMC must be in line with sustainable development, seeking economic growth, the eradication of poverty and the reduction of social inequalities.
Paris Agreement
The most recent initiative, adopted in 2015, the Paris Agreement charts a new course in the global effort to combat climate change. It seeks to accelerate and intensify the actions and investments needed for a sustainable future with low carbon emissions. The main focus of the Paris Agreement is to keep the global temperature increase below 2ºC, compared to pre-industrial levels. In parallel, it seeks to strengthen countries' capacity to deal with the impacts of climate change.
The Agreement required all Parties to present their efforts through Nationally Determined Contributions (NDCs). Considered the main milestone of this agreement, it presents targets on emission reductions and strategies for implementation by each country.
In 2018, the Parties will undertake a joint analysis of the current situation and a global review will follow every 5 years to assess collective progress towards achieving the goals of the Paris Agreement.
The Agreement focused on cities, highlighting their importance in achieving the established goals. Talking about cities is extremely relevant if one wants to implement the NDC actions: urban centers are responsible for approximately 70% of global greenhouse gas emissions.
Relevance of cities and financing systems
Cities are responsible for a large part of emissions and energy consumption.
A study by the Climate Finance Cities Leadership Alliance (a coalition of over 40 banks, national governments and civil society organizations), called State of City Climate Finance, outlined five recommendations to encourage investment in low-emission and climate-resilient urban infrastructure. The recommendations include:
- Encourage national governments to adopt policies to incentivize low-emission infrastructure.
- Support the adoption of pricing structures for climate externalities.
- Strengthen climate action projects in cities.
- Helping cities finance climate-smart infrastructure solutions.
- Create new financial instruments and financing models.
Brazilian NDC
To achieve these goals, a series of guidelines will have to be followed in different sectors of public management of natural resources until 2030:
- Increase the share of sustainable bioenergy in the Brazilian energy matrix to 18%;
- Strengthen compliance with the Forest Code;
- Restore 12 million hectares of forests;
- Achieve zero illegal deforestation in the Brazilian Amazon;
- Reach the share of 45% of renewable energy in the energy matrix;
- Obtain 10% of efficiency gains in the electricity sector;
- Promote the use of clean technologies in the industrial sector;
- Stimulate efficiency and infrastructure measures in public transport and urban areas.
Our NDC has a broad scope, which includes pathways for mitigation, adaptation and implementation. The efforts that the country will have to make are equivalent to the contributions of more developed nations and understand the particularities of the national reality.
The federal government has been working on base document which will support the development of an implementation and financing strategy for the Brazilian NDC.
In this sense, the participation of the business sector is fundamental and has been gaining prominence in discussions on the transition to a low-carbon economy. The highlight is the paths of climate finance, a topic covered exhaustively in COP22.
By looking with commitment at the established goals and understanding the urgency of the circumstances, the public and private sector must unite in the mission of making Brazil a sustainable country.
For 20 years, CEBDS has been building bridges between different agents in society in favor of sustainable development. Collaboration is carried out actively, seeking to change the behavior of the business sector in relation to environmental issues.
In 2017, CEBDS promoted the action #TogetherPeloClima, which encouraged our member companies to share their sustainable experiences. They showed the contributions that have been put into practice to help Brazil achieve its mitigation goals.
To delve even deeper into the subject, read our materials:
Financing for Renewable Energy and Efficient Consumption of Electric Energy
