Hill Heat

1. WMB Ask #1: Net zero greenhouse gas emissions well before the end of the century

Businesses and investors need a strong long-term goal in the Paris Agreement that sets a clear destination and time frame, and that operationalizes a global emissions pathway which holds warming below 2°C. This would provide the policy certainty and clarity needed to drive low carbon and climate resilient investment in the real economy. By providing long-term details in national decarbonization strategies to 2050, governments will increase business confidence in making multi-decadal low carbon capital investments.

Preferred Text

• Article 2 (Purpose)
  “The purpose of this Agreement is to hold the increase in global average temperature below 2°C and preferably below 1.5°C above pre-industrial levels by ensuring deep cuts in global greenhouse gas emissions, and to achieve the global transformation to low carbon and climate resilient economies and societies.”
• Article 3 (Mitigation)
  “To achieve the long-term temperature goal set out in Article 2 of this Agreement, Parties collectively aim to reach net zero global greenhouse gas emissions well before the end of this century.”
• COP Decision
  “Strongly encourages Parties to formulate and communicate, by 2018, national decarbonization strategies to 2050, to facilitate the mobilization of climate finance and investment.”

2. WMB Ask #2: Strengthen commitments every 5 years

After COP21, from 2016 to 2020, businesses will unleash additional low carbon innovation and investment. Continuous improvement should apply not only to businesses but to governments as well. By strengthening their commitments every 5 years, starting in 2020, governments will keep pace with private sector innovation, stimulate increased private sector ambition, and progressively realize the transformation of the global economy.

Preferred Text

• Article 3 (Mitigation)
  “Successive nationally determined commitments shall be communicated every 5 years.”

  “Each Party shall progressively strengthen the ambition of their successive nationally determined commitment every 5 years from 2020 onwards, informed by the global stocktake set out in Article 10 and by the best available science, until the ultimate objective of the UNFCCC and the objective of this Agreement are achieved.”

• Article 10 (Global Stocktake)
  “The CMA shall, in 2024 and every 5 years thereafter, take stock of the implementation of this Agreement, to assess collective progress towards achieving the ultimate objective of the UNFCCC and the objective of this Agreement, in order to inform the formulation and communication of successive nationally determined commitments.”
• COP Decision
  “Requests all Parties to communicate an updated nationally determined commitment well in advance of the twenty-sixth session of the COP (by the first quarter of 2020 for those Parties ready to do so), with a view to enhancing the ambition of their nationally determined commitment.”

  “Decides to convene a dialogue among Parties in 2019 to take stock of the collective efforts of all Parties, to inform the communication of their updated nationally determined commitments.”

3. WMB Ask #3: Enact meaningful carbon pricing

Carbon pricing is one of the key policy instruments needed to harness the power of business to tackle climate change. With the majority of INDCs either putting or considering a price on carbon, whether through carbon taxes or markets, the Paris Agreement should recognize their efforts and the merits of these approaches to driving emissions reductions. Over a thousand companies have reported using an internal carbon price or plan to do so, in anticipation of future regulation. A price on carbon incentivizes low carbon innovation, shifts investment towards low carbon technologies, and helps ensure sustained economic competitiveness. To be effective, carbon pricing needs to be adopted globally, to reach high enough levels to change investment decisions and behaviour towards lower carbon ones and to converge to avoid trade friction.

Preferred Text

• Preamble
  “Emphasizing that many Parties have already put a price on carbon, and that where the price is sufficient to drive lower carbon investment and behavior, this is an important, efficient, and cost-effective approach to achieving deep cuts in global greenhouse gas emissions.”
• Article 3 (Mitigation)
  “The CMA shall further facilitate international cooperation between Parties in the implementation of mitigation activities.”

  “Parties shall ensure the environmental integrity of internationally transferred mitigation outcomes used towards the fulfillment of its nationally determined mitigation commitments. Internationally transferred mitigation outcomes must avoid double-counting and be real, permanent, additional and verified.”

• COP decision
  “Invites all Parties to consider further international cooperation in the implementation of nationally determined mitigation commitments.”

  “Requests that the IPC commence a work programme to develop standardized accounting rules which ensure the environmental integrity of internationally transferred mitigation outcomes, with a view to the IPC making recommendations to the CMA at its first session.”

  “Decides that the CMA shall, at its first session, adopt standardized accounting rules which ensure the environmental integrity of internationally transferred mitigation outcomes.”

• NDCs
  Many submitted NDCs put a price on carbon, whether through carbon taxes or markets, and if through markets, anticipate potential links to other markets.

4. WMB Ask #4: New and additional climate finance at scale

The satisfaction of the Copenhagen pledge to mobilize $100 billion per year of climate finance in 2020 is key to an ambitious deal in Paris. But building the low carbon economy will take trillions – not billions – of dollars in climate finance. To shift these trillions, the Paris Agreement will need to improve the predictability of financial flows, improve domestic enabling environments to facilitate climate investment, and direct international support towards low emission and climate resilient investment.

Preferred Text

• Article 6 (Finance)
  “Developed country Parties, and other Parties willing to do so, shall scale up the mobilization of climate finance from USD 100 billion per year from 2020.”

  “Parties shall improve the predictability of finance flows, including through the transparency system set out under Article 9.”

  “All Parties shall strive to improve domestic enabling environments, to encourage the mobilization of climate finance from a wide variety of sources, including public and private, bilateral and multilateral and alternative sources.”

  “Parties shall enhance international support for low emission and climate resilient investments, and reduce international support for high emission and maladaptive investments.”

• COP Decision
  “Decides that Parties shall, in accordance with their national circumstances, consult and cooperate to mobilize climate finance and investment, including partnering with other Parties and with the private sector.”

5. WMB Ask #5: Transparency and accountability to promote a race to the top

A strong transparency system under the Paris Agreement will reassure businesses and investors that all governments will be accountable for their commitments. By making collective progress towards a global 2°C trajectory clear, transparency will allow businesses to prepare for the climate impacts of projected warming. Shared accounting and reporting rules will prevent governments from gaming their commitments, which would distort the perceived risks of climate impacts.

Preferred Text

• Article 9 (Transparency)
  “The purpose of the system for transparency of action is to:
  (a) provide the clearest possible understanding of the emissions and removals of individual Parties, and of global aggregate net emissions relative to the objective of this Agreement in Article 2, and the long-term mitigation goal in Article 3;
  (b) ensure clarity and tracking of progress made in implementing and achieving individual Parties’ nationally determined mitigation commitments;
  (c) provide a clear understanding of Parties’ progress in implementing adaptation actions…”
  

  “The purpose of the system for transparency of support is to:
  (a) ensure clarity on support provided and received by individual Parties;
  (b) provide a full overview of aggregate support provided, mobilized and received…”

  “In tracking progress towards achieving their nationally determined commitments, Parties shall apply the principles of transparency, accuracy, completeness, comparability and consistency according to rules adopted by the CMA at its first session.”
  “Each Party shall, subject to its respective capabilities, provide information at least biennially. This information shall be reviewed, subject to the Party’s respective capabilities, by an expert review team, which shall identify any issues related to facilitating implementation and compliance under Article 11.”

6. WMB Ask #6: National commitments at the highest end of ambition

An agreement with the broadest possible participation will address business concerns around maintaining competitiveness on a fair playing field. Broad and ambitious participation is also crucial to addressing climate change. Businesses will need to be confident that national commitments made by governments are more than words, and will be implemented. Countries joining the Paris Agreement should therefore commit to implementation and not merely communication of their national climate action plans.

Preferred Text

• Article 3 (Mitigation)
  “Each Party shall regularly formulate and communicate a nationally determined mitigation commitment that it shall implement.”

  “Each Party’s successive nationally determined mitigation commitment shall be at that Party’s highest possible level of ambition as of the time of its formulation.”

• NDCs
  The Paris Agreement is universal. Nearly all countries covering nearly all global greenhouse gas emissions submit nationally determined commitments for the Paris Agreement and becomes Parties to the Paris Agreement.

7. WMB Ask #7: Adaptation to build climate resilient economies and communities

Even if warming is held below 2°C, businesses will need to adapt to substantial climate impacts. By treating adaptation with the same political parity as mitigation, including with a long-term global vision on adaptation, the Paris Agreement will signal that all actors must build climate resilience while they reduce emissions. Business can play a constructive role in building this resilience not only within their own economic infrastructure, but also within the workforce, communities, and ecosystems on which they depend. Private sector consultation in national adaptation planning will help to facilitate this.

Preferred Text

• Preamble
  “Emphasizing that adaptation is a global challenge which must be addressed with the same urgency as mitigation.”
• Article 4 (Adaptation)
  “Parties establish the long-term vision of increasing resilience and reducing vulnerability to climate change, recognizing that adaptation is a challenge faced by all, with local, national, regional and international dimensions, and impacts on all sectors, and that it is a key component of a contribution to the longer-term global response to climate change to protect people, livelihoods, ecosystems, and economies.”

  “Parties recognize that adaptation will be needed regardless of the level of mitigation reached and that the greater their mitigation efforts, the less adaptation will be needed.”

  “Each Party shall engage in a national adaptation planning process and enhance its adaptation plans, policies and actions…”

• COP Decision
  “Decides that the national adaptation plans, policies and actions referred to in Article 4 should be developed in consultation with relevant stakeholders including…the private sector/b>.”

8. WMB Ask #8 Pre-2020 ambition through Workstream 2

In the years 2016 to 2020, Workstream 2 under the Durban Platform can raise pre-2020 ambition by exploring and scaling up technical solutions to reduce emissions and build climate resilience. Two high-level champions will give this effort the political profile needed for success. An annual high-level event can build upon the many initiatives that have been launched under the Lima-Paris Action Agenda at COP21, and promote new efforts.

Preferred Text

• COP Decision on Workstream 2, High-level Dialogue/Events
  “Decides that two high-level champions, with relevant experience in leadership positions in government and the private sector, shall be appointed to facilitate the scale up and launch of new or strengthened efforts, voluntary initiatives and coalitions, through strengthened high-level engagement in the period 2016-2020, including by:
  (a) Working with the UNFCCC Executive Secretary and the current and incoming presidencies of the COP to coordinate an annual high-level event that provides an opportunity to announce new or strengthened efforts;
  (b) Engaging intensively with interested Parties and non-Party stakeholders, including the private sector; and
  (c) Providing guidance on the organization of the Technical Examination Processes.
• COP Decision on Workstream 2, Mitigation
  “Requests the appointment of co-facilitators to guide the Technical Examination Process on mitigation and, in consultation with Parties and high-level champions referred to below, to create a detailed work programme for 2016 and 2017 focused on scaling up implementation.”

  “Encourages Parties, Convention bodies, international organizations and non-Party stakeholders, including the private sector, to engage actively and effectively in this process, to submit their experience and suggestions…to this process, and to cooperate in implementing the policies, practices and actions identified during this process…”

• COP Decision on Workstream 2, Adaptation
  “Decides to launch a second Technical Examination Process on adaptation in the period 2016-2020…with the meaningful participation of non-Party stakeholders, to enhance adaptation action and support, share best practices and address gaps in implementation, knowledge, finance, technology, planning and institutional capacity.”