On 12 December in Paris the One Planet Summit was held on the 2nd anniversary of the Paris Agreement. Fifty world leaders gathered to agree on financial flows in field of climate change which will lead to low-carbon future and will bring the achievement of Paris Agreement goals.
Namely, to limit the growth of global average temperature well below 2oC, financial flows were set in order to combat climate change, which will support countries around the globe to accomplish their National Determined Contributions (NDCs). The Summit should help operationalising of those flows. During the Summit 12 contributions were set:
I Financing of climate change adaptation and vulnerability
1. Respond to extreme events in island states
The idea behind is to establish the world’s first “Climate Smart Zone” on Caribbean. $US 8 billion will be invested through public-private partnerships in order to help Caribbean and other island states to better adapt to climate change.
2. Protect water and land from climate change impacts
Over $US 300 million will be invested in reducing land degradation in order to achieve land degradation neutrality until 2030. Also it will be invested in research of possible adaptation options in agricultural sector, especially farmers in developing countries. In next 5 years all over Africa 100 projects will start with a goal to reduce the impact of climate change in water management sector.
3. Encourage researchers and young people to work on climate change
Big corporations like Bill Gates Foundation and BNP Paribas Foundation are planning to invest $US 15 million in next 5 years in capacity building of young researchers from Europe and Africa. Additionally, 40 million EUR is going to invest by European Commission in engaging volunteers to work on climate change projects.
4. Access of local governments to “green” financing
On initiative of European Bank for Reconstruction and Development (EBRD), Global Covenant of Majors, European Commission and European Investment Bank a new programme was lunched with a goal to facilitate the procedure for cities and regions all over Europe to get financial resources to implement ideas and plans to sustainability (sustainable infrastructure, reduction of emissions in households, increase in energy efficiency etc.)
II Accelerating the transition towards a decarbonized economy
5. Carbon neutral economy
A coalition of 16 countries that have committed to achieving carbon neutrality by 2050 has been formed, and will develop plans to achieve this goal from 2020 onwards.
In cooperation with the French Space Agency and with the support of the European space agencies, a Climate Observatory for the monitoring of the condition on the planet Earth was established.
6. Sectoral shifts towards a decarbonised economy
The main goal is the transition of the energy sector from the usage of fossil fuels to renewable energy sources. The Powering Past Coal Alliance brings together 58 actors including 8 governments and 24 businesses in the world, united to speed up the transition from fossil fuels towards renewable energy.
The International Solar Alliance aims to collect one billion dollars from private and public partners by 2030 to invest, develop technology and expertise in solar energy, as one of the most widespread renewable sources.
7. Non-polluting transport
Given that 15% of the total global emissions come from the transport sector, more efforts will be made in the future for decarbonisation and cleaner transportation. 34 countries have committed to reduce GHG emissions from maritime, while western US states have partnered to promote electric cars and develop a network of charging stations to allow travel from one country to the other by electric cars.
8. Increase in the price of carbon
The Ministers of Environment and Climate Change of France, Germany, Holland, Sweden and the United Kingdom have supported the recent initiative of the European Council to reform the GHG Emission Trading System (ETS) that will lead to an increase in the price of carbon. On the other side, Mexico initiated regional cooperation with individual states of the USA, Canada, Colombia and Chile to charge GHG emissions.
China has established a unified system for the trade of allowances, which bring together existing 7 local systems. There is also an initiative of private companies to establish a system for trading of emissions allowances.
III Strengthen climate issues at the centre of funding decisions
9. Actions of Central Banks and businesses
More than 200 companies in cooperation with 3 countries (France, Sweden and the United Kingdom) have supported the implementation of recommendations that the world should move towards low-carbon economy and in line with the objectives of the Paris Agreement. Also, more than 10 central banks around the world have launched a network called Greening the Financial System in order to promote investment in combating climate change.
10. Mobilization of Development Banks
The Joint Declaration is made between more than 30 national and regional Development Banks in order to increase funding for activities related to achievement of Paris Agreement goals. They committed themselves to:
- Further engagement of climate change in strategies and activities
- Redirect financial flows for the transition to a low-carbon economy and climate-resistant and sustainable development
- Supporting the implementation of NDCs and long-term emission reduction targets by 2050
- Promoting the reduction of greenhouse gas emissions, reducing the use of fossil fuels and promoting the usage of renewable energy sources
11. Ensuring Sustainable Financing
On the initiative of the French President supported by Kuwait, Norway, Qatar, New Zealand, Saudi Arabia and the United Arab Emirates, a coalition of these countries was created to provide a $US 15 billion fund by 2020 to combat climate change.
12. Mobilization of institutional investors
During the One Planet Summit a coalition “Climate Action 100+” was lunched, which will connect 225 investors and provide an investment of $US 26 billion. This coalition should encourage companies to present strategies for reducing greenhouse gas emissions and thus contribute to the achievement of the objectives of the Paris Agreement. It was concluded that more effort must be done in order to develop new technologies for the production of energy from renewable sources, in which an additional one billion dollars will be invested.