Private sector key, say GCF Latin America Dialogue partners

BOGOTÁ, 09 MAR 2018

The importance of the private sector was a common theme among many of the participants at the

recently-concluded GCF Structured Dialogue in Latin America.

Opening the Dialogue on Monday, Colombian President Juan Manuel Santos Calderón - a former economist and winner of the 2016 Nobel Peace Prize - emphasised the need for the private and public sectors to work together in developing sustainable solutions to address climate change.

A number of formal and informal discussions during the four-day event pointed to a shared view of the need to draw in the private sector further and to establish examples of climate finance in action.

More demonstrations of how climate finance can work are needed to dispel nagging perceptions by Latin American businesses of it being a risky venture, said Gloria Visconti, lead climate change specialist at the Inter-American Development Bank (IDB), a GCF Accredited Entity with seven projects approved by the GCF Board. 

"Such perceptions of risk, in addition to a general limited experience about climate finance, mean the Latin American financial system is not yet fully equipped to invest in climate action," she said, adding that IDB is striving to fill this space.

"There is already fertile ground for climate action in Latin America, with a sophisticated level of knowledge and commitment by governments in the region. We now need to address the perceived risks of climate investments by businesses in order to mobilise the private sector at scale."

GCF investment in the region could help produce a "dynamo effect" by easing the access of Small and Medium-sized Enterprises (SMEs) and other organisations embarking on climate measures to credit and other financial instruments, added Ms Visconti.

The first GCF Structured Dialogue to be held Latin America, which opened in Colombia on Monday, was designed to alleviate what many see as a current lag in regional climate investment.

Antonio Garcia, a climate change specialist with the Development Bank of Latin America (CAF), a GCF Accredited Entity with two approved projects, highlighted the need to attract the private sector further in boosting investment in climate change mitigation and adaptation.

"It is necessary to share knowledge about climate finance, such as during the Structured Dialogue, to show that it can be profitable for local financial institutions to take up this new line of business," he said.

"While there is a varying level of advances by Latin American countries in climate change related activities, we need to assure the same level of accessibility to international climate finance resources."

GCF regularly holds Structured Dialogues in different regions of the world to stimulate thinking on how to drive national and regional momentum on climate change mitigation and adaptation, and to improve knowledge of how to access GCF resources.

GCF has already committed close to USD 736 million in climate finance for Latin America, which in turn represents nearly USD 2.7 billion in co-financing.

The Latin American Structured Dialogue has generated discussions among proponents of a low-carbon, climate-resilient economy on how regional governments can work with GCF to find the sweet spots where climate action and business profits meet.

U.S. judge to question Big Oil on climate change

SAN FRANCISCO, March 21 (Reuters) - Five of the world’s biggest energy producers will be questioned by a federal judge on Wednesday about climate change science, part of a lawsuit that accuses the companies of misleading the public for years about their role in global warming.

The cities of San Francisco and Oakland, California sued Chevron Corp, Exxon Mobil Corp, ConocoPhillips , Royal Dutch Shell PLC, and BP PLC last year, seeking an abatement fund to help the cities address flooding they say is a result of climate change.

The companies argued in legal filings on Tuesday that the case in San Francisco federal court should be dismissed, partly because Congress has given regulatory agencies, not the courts, authority over the production and emission of fossil fuels.

The lawsuits, filed by Democratic Party politicians, are part of a larger campaign to address climate change in the courts. Worldwide, there are almost 900 lawsuits on climate change in 25 countries, a U.N. study said last year.

U.S. District Judge William Alsup invited both sides to a hearing on Wednesday to describe their views on “the best science now available on global warming, glacier melt, sea rise, and coastal flooding.”

Since U.S. President Donald Trump took office 14 months ago, domestic policy on climate change has been turned on its head. Republican Trump has pushed to increase production of fossil fuels and ordered a broad reversal of climate regulations. He said last year that he was withdrawing the United States from the Paris Agreement to reduce emissions but Washington has not disengaged from it completely.

Alsup, who has presided over high profile technology cases including one between Alphabet’s Waymo and Uber Technologies Inc over self-driving cars, is known to ask blunt questions from the bench.

Chevron attorney Avi Garbow on Tuesday told reporters the company will tell the judge it agrees with the scientific consensus that it is extremely likely human influence is the cause of warming. It is unclear whether the other companies will agree with that view.

Representatives for the other four companies could not immediately be reached.

All of the oil companies generally acknowledge that greenhouse gasses are a contributor to climate change. However, the companies argued in court papers on Tuesday that they should not be held liable for global warming, which is caused by “billions” of parties and “complex environmental phenomena occurring worldwide over many decades.” (Reporting by Dan Levine; editing by Grant McCool)

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Panama: importacion de residuos peligrosos (PCB)

Francisco Rivas Ríos.

apronad@gmail.com

 https://www.facebook.com/apronadpana

Los bifenilos policlorados o PCB, son compuestos químicos formados por cloro, carbono e hidrógeno, los cuales se utilizaron sin restricciones entre 1929 y 1978, en transformadores y equipos eléctricos. El uso en transformadores se debe a sus cualidades como refrigerante y aislador.

Transformador de superficie

La preocupación acerca de la presencia de PCB en el ambiente comenzó alrededor de 1966 cuando investigaciones en Suecia revelaron la presencia de PCB en muestras del ambiente (suelos y agua) que eran analizadas buscando DDT. Estudios posteriores confirmaron las sospechas de que la tasa de biodegradación (o descomposición natural) era muy lenta para algunos de los congéneres de PCB.

En 1968, un extenso episodio de intoxicación en el oeste del Japón fue atribuido al consumo de aceite de arroz que se había contaminado con PCB durante el procesado. Las víctimas desarrollaron una muy severa y persistente forma de acné, llamada cloroacné, Los síntomas de la enfermedad progresaron hasta convertirse en náuseas e hinchazón de brazos y piernas; otras personas desarrollaron desórdenes en el hígado. Algunos recién nacidos de madres expuestas exhibieron un tamaño pequeño, decoloración de la piel y uñas y erupción prematura de los dientes.

Estos hechos hicieron crecer la preocupación mundial acerca de los efectos potenciales del PCB sobre la salud. Esta preocupación fue espoleada por otro episodio de intoxicación humana en 1978, involucrando aceite de arroz contaminado con PCB en Taiwán.

Desde ese momento, comenzaron los estudios en relación a sus características toxicológicas. Después de los estudios, la Agencia Internacional para la Investigación del Cáncer (IARC, por sus siglas en inglés) y la Agencia de Protección Ambiental de los Estados Unidos (EPA, por sus siglas en inglés), calificaron el PCB como probablemente cancerígeno.

Por tal motivo, empezaron una serie de normativas en diversos países y organizaciones internacionales a tal punto que el PCB se considera hoy una de las cuatro sustancias más peligrosas del mundo.

Existen dos posibilidades que el aceite dieléctrico que contienen los equipos eléctricos, en uso o desuso, escape al medio ambiente:

Explosiones o incendios de los transformadores y equipos eléctricos en general.  Después de un incendio, la materia es emitida a la atmósfera en forma de partículas. En este caso, el PCB se transforma en un producto químico llamado dioxinas. Las dioxinas son las sustancias más dañinas que se conocen. Son cinco millones de veces más tóxico que el cianuro y se ha comprobado que son cancerígenos.

Incendio de transformador de superficie

Los derrames del aceite dieléctrico contaminado con PCB, en los equipos eléctricos de los que están en uso, en desuso o durante su transporte.

Derrame de aceite contaminado con PCB en transformador de poste

Una vez liberado al medio ambiente el PCB puede causar cáncer, además de trastornos en los sistemas inmunológico, reproductivo y nervioso.

Los trastornos inmunológicos. Se confirmó que las personas que consumieron arroz con aceite contaminado adquirieron cáncer.

Efectos sobre el sistema reproductor. Reduce el peso del bebé dal nacer y disminuye los índices de fertilización y la tasa de natalidad. Efectos sobre el sistema nervioso.

Trastornos en el sistema endocrino. El nivel de la hormona de la tiroides disminuye, lo cual es fundamental para el crecimiento y desarrollo normal.

Con la ratificación del Convenio de Estocolmo, Panamá adquirió los siguientes compromisos:

Eliminar los PCB a más tardar en 2025. Para estos efectos, se debe identificar, etiquetar y retirar de uso de equipos con mas de 0,005% de PCB y volúmenes superiores a 0,05 litros. El PCB recuperado tendrá que ser tratado y eliminado en un plazo máximo de 2028.

Véase en este blog:

Alternativa de solución al problema de los residuos de aceite dieléctrico contaminado con bifenilos policlorados (PCB) en Panamá

Pero mientras que las autoridades del Ministerio de Salud de Panamá (MINSA), se esforzaban por identificar y almacenar el aceite dieléctrico contaminado, en el período 2003-2010 Costa Rica exportó 19,7 millones de toneladas métricas de estos residuos peligrosos a Panamá, con un valor de US $ 13,8 millones.

A partir de 2011 las exportaciones de aceite contaminado con PCB desde Costa Rica ya no se registran. Pero el daño estaba hecho, las dioxinas se bioacumulan por largo tiempo (son persistentes) y se desplazan a largas distancias.

En la actualidad se exportan aceites usados con el arancel “Producto: 271099 Otros residuos de petróleo“.

ANEXO

XX Reunión del Foro de Ministros de Medio Ambiente de América Latina y el Caribe

Cartagena, Colombia. 28-31 de marzo de 2016

“Recordando la solicitud a la Secretaría, en la Declaración de Los Cabos, de elaborar un análisis de perspectiva regional sobre los principales desafíos y tendencias sobre la gestión integral de los residuos, y reconociendo los progresos alcanzados hasta la fecha;

Considerando los efectos adversos que sobre la salud y el medio ambiente puede ocasionar una inadecuada gestión de los residuos, y conscientes del progresivo aumento de la cantidad y complejidad de los residuos generados en los asentamientos urbanos”;

Deciden

“Instar a los países a incrementar sus esfuerzos individuales y colectivos y colaborar en la prevención, minimización y recuperación de los desechos peligrosos y otros desechos, con arreglo a la Declaración de Cartagena del Convenio de Basilea, así como en el control del tráfico ilícito de desechos peligrosos y productos químicos”.

Painters of Azuero support environmental project with children

In the La Villa River Basin, in the center of the Republic of Panama, elementary students, their parents, teachers and community  wage an epic battle in one of the most impacted territories by climate change, with high rates of deforestation and environmental degradation.

With the support of teachers in 14 educational centers anmd the support of the parents, the children plant native trees in the yards, the and watch over their robust growth.

In this way, 14,000 trees have been planted, helping to combat deforestation and generating greater environmental commitment in the new generations.

To these children the outstanding painters of Azuero and international prestige, EVENE RODRÍGUEZ and RUIZ MELGAR offer for salne the following beautiful pictures:

Evene Rodríguez 40x40 inches. Gallery price $ US 2,500.00, Special price for children's project $ USD 1,000.00.

Ruiz Melgar 30x40 inches. Gallery price $ US 2,300.00, Special price for children's project $ USD 1,000.00.

Those interested in contributing with this initiative can contact Pablo Bermudes, by phone (507) 67029427, Email pablobermudezmera@gmail.com

Making Money by Restoring Degraded Lands

Biocarbon Engineering is one of many companies that make up the expanding restoration economy, businesses that have landscape restoration at the core of their customer value proposition. WRI and The Nature Conservancy (TNC) analyzed more than 140 companies in this space to understand how companies are making money from restoring land. Among these, 14 companies, whose median sales growth reached 100 percent in 2017, are showcased in a new report titled The Business of Planting Trees: A Growing Investment Opportunity.

While these companies represent just a small subset of the broader sector, they showcase the diversity of business opportunities. Companies involved in the restoration economy range from early stage, pre-revenue startups to timber funds that manage billions of dollars. Similarly, the goods and services produced by these companies vary widely as well, from biofuels to climate-smart credit systems to green infrastructure.

For example:

1. Guayakí reinvented the traditional Argentinian “yerba mate” drink for the American market in the form of ready-to-drink teas and energy drinks. Since yerba mate is best grown in the shade, the company partners with small farmers and indigenous communities in Argentina, Brazil and Paraguay to regenerate the Atlantic rainforest and grow yerba mate under the rainforest canopy. With this market-driven restoration approach, Guayaki reached $60 million in sales in 2017.
2. EcoPlanet Bamboo aims to alleviate the pressure on natural forests by developing sustainable bamboo as an alternative timber and fiber source for major industrial markets, including for toilet and tissue paper, renewable packaging materials for the food and beverage industry, and construction and housing materials. The company has plantations in Nicaragua, South Africa and Ghana, and expects to produce 280,000 tons of raw fiber per year by 2024.
3. New Forests is a Timber Investment Management Organization whose investment strategies include ecosystem restoration in the United States, as well as sustainable forestry in Australia, New Zealand and Southeast Asia. New Forests currently manages $3 billion in timberland assets, with 39 percent of the area managed for conservation outcomes and the remainder used for sustainable timber production.

$9.6 million in exchange for 3.4 million metric tons of reduced CO2e emissions

The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) is an innovative climate finance model developed by the World Bank Group to stimulate investment in projects that reduce greenhouse gas emissions while maximizing the impact of public funds and leveraging private sector financing.

Its results-based payment mechanism sets a floor price for future carbon credits in the form of a tradeable put option, which is be competitively allocated via auctions.

The PAF is backed by Germany, Sweden, Switzerland (Through a joint contribution of the State Secretariat of Economic Affairs (SECO) and the Climate Cent Foundation), and the United States.  The facility has a capitalization target of $100 million. In a first phase, it will support projects that cut methane emissions at landfill, animal waste, and wastewater sites facing low carbon prices.

The establishement of the facility was an outgrowth of the Methane Finance Study Group Report, delivered to the G8 in 2013 as a result of its request for innovative pay for performance approaches to addressing methane. In its design and development phase the facility benefited from the support of Partners in the Climate and Clean Air Coalition.

The PAF Secretariat has sent us this important news.

"Dear Colleagues,

We are pleased to announce that the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) has made the second repayment of PAFERNs bonds issued after its three auctions held in July 2015, May 2016 and January 2017.

This year’s redemption provided $9.6 million in exchange for 3.4 million metric tons of reduced CO2e emissions from projects that achieved methane and nitrous oxide abatement around the globe. The carbon credits came from landfill gas-to-energy projects in Brazil, Chile, Malaysia, Mexico, Thailand, and Uruguay; wastewater treatment and biogas utilization projects in Thailand; and a project addressing nitrous oxide emissions from nitric acid production in Egypt.

The World Bank issued a press release highlighting the results of this year’s redemption, available here.

The PAF provides a price guarantee for eligible future carbon credits in the form of a zero-coupon bond, allocated through an online auction. The bonds issued after the three initial auctions will continue redeeming through 2020. The PAF is backed by funding from Germany, Sweden, Switzerland, and the United States. Building on the success of the pilot, the World Bank is expandinLa g the facility into a broader Climate Auctions Program and willexplore how to use auctions to help countries implement their goals under the Paris Climate Agreement.

For more information about the PAF, please visit www.pilotauctionfacility.org or contact the PAF Secretariat at paf_secretariat@worldbank.org".

Leaders Commit to Regional Cooperation on Carbon Pricing in the Americas

Paris, 12 December – Today, on the occasion of the One Planet Summit, government leaders of

Canada, Colombia, Chile, México, the Governors of California and Washington, and the Premiers of Alberta, British Columbia, Nova Scotia, Ontario and Quebec launched the Carbon Pricing in the Americas cooperative framework where climate leaders rea ffirm their commitment to the Paris Agreement by pledging to implement carbon pricing as a central policy instrument for climate change action; deepen regional integration of carbon markets across the hemisphere; develop carbon policies that support competitiveness, encourage innovation, create jobs, provide healthy environment for its citizens, and deliver meaningful emissions reductions.

This new initiative on regional cooperation comes at a pivotal time for climate action and carbon pricing – with eight new or enhanced carbon pricing initiatives in place since early 2016 - three quarters of them in the Americas (Colombia, Chile, and several Canadian provinces) – there are now 42 national and 25 sub-national jurisdictions putting a price on carbon emissions.

The Carbon Pricing in the Americas cooperative framework builds on the sustainability commitments established by member countries of the Pacific Alliance and the ongoing efforts of Canada and California to accelerate efforts towards clean growth.

The Carbon Pricing in the Americas will serve as the platform for countries in the Americas to take on the climate challenge using the most cost-efficient path. According to a 2016 World Bank report, greater cooperation through carbon trading could reduce the cost of climate change mitigation by 32 percent by 2030.

As the working group “Carbon Pricing in the Americas (CPA)” sets to identify opportunities to increase alignment of carbon pricing systems and promote carbon markets; the private sector will have an instrumental role to play. Companies that apply a carbon price, can effectively manage their climate risk exposure and use this to their advantage to generate superior profitability and more earnings stability.

Quotes from Leaders:

Michelle Bachelet President of Chile

Our economies must stop denying climate change. When we incorporate climate change through carbon pricing we allow market forces to push climate action. When we align economic and environmental goals we make sustainable development inevitable. That is why we are happy that carbon pricing is spreading across the Americas, so that more people can benefit from market driven climate mitigation.

Enrique Peña Nieto, President of Mexico

The pilot phase of our carbon market is scheduled to initiate on the second half of 2018. This is an unprecedented step in Mexico and Latin America. By adopting this Declaration, we recognize the enormous potential of collaboration in the continent, to continue broadening, deepening and linking our carbon markets.

Manuel Gonzalez Sanz, Minister of Foreign Affairs of Costa Rica

Costa Rica has a long history of recognizing the economic value of environmental services as key aspect of our environmental policy, both at home and abroad. We are proud to adopt this Declaration and look forward to continue working with our friends and colleagues to find ways to strengthen the connections between carbon pricing, transparency and ambition in support of the goal of the Paris Agreement. 

Iain Rankin, Environment Minister, Nova Scotia

“Nova Scotia has worked hard to reduce greenhouse gas emissions. We can be proud of what we’ve accomplished, and through our new cap and trade program, we will keep contributing to the global effort on climate change. We are happy to be working with other countries, states and provinces to reduce greenhouse gas emissions”

As co-conveners of the One Planet Summit, Emmanuel Macron President of France, Jim Yong Kim, President of the World Bank Group, and António Guterres Secretary-General of the United Nations welcomed the initiative and stated.

Jim Yong Kim, President, World Bank Group

As the world comes together to reaffirm its commitment to the Paris Agreement, we welcome the Carbon Pricing in the Americas cooperative framework. Carbon pricing provides the most stable, cost-efficient and predictable path for transitioning countries toward low-carbon economies. The World Bank Group stands ready to support countries in the Americas as they work together to implement carbon pricing for ambitious climate action.

Other supportive quotes:

Ban Ki-moon, former Secretary-General of the United Nations

Carbon pricing is a critical quantum jump for the much-needed fundamental transformation towards low carbon future. Carbon Pricing of the Americas will unleash market forces to drive climate innovations and solutions. This unprecedented unique initiative should lead the Global Coalition for Carbon Pricing as was called for in 2015 by the Paris Climate COP President Hollande

Kofi A. Annan, Chair of the Kofi Annan Foundation

I welcome this engaging initiative for climate change action. By putting a price on carbon, we are setting the right incentives to green our economies and accelerate the shift towards clean and efficient sources of energy.

Feike Sijbesma, CEO of Royal DSM, World Bank Climate Leader and co-chair of the Carbon Pricing Leadership Coalition

The collaboration of leaders across the Americas is an important milestone. A famous expression is “If you want to go fast, go alone. If you want to go far, go together.” Fortunately, when governments collaborate on carbon pricing, this incentivizes the private sector to go not only further, but faster too! Many companies in the Americas are already future-proofing their business by putting an internal price on carbon, and I would encourage more to join us. At DSM, we apply already an internal price of €50/ton CO2. A price on carbon unlocks the potential of the private sector, like business and investors to contribute more and faster to addressing climate change by ensuring an economic incentive.

Dirk Forrister, President and CEO, International Emissions Trading Association (IETA)

IETA wholeheartedly supports the commitment of governments across the America’s to form a cooperative framework to integrate their carbon markets in the future. The rising interest in market based solutions around the world will help mobilize business to advance the Paris Agreement’s goals while preserving competitiveness. IETA congratulates the signatories for their vision and pledges to help the signatories meet the objectives of this important declaration.

Fred Krupp, President, Environmental Defense Fund (EDF)

Coming two years to the day after the Paris Agreement was adopted, the Carbon Pricing Declaration of the Americas shows what the Paris accord made possible: A new model of international cooperation that brings countries together with states and provinces to raise global ambition on climate action and move the world closer to a future of low-carbon prosperity.  Carbon pricing is already working to reduce greenhouse gas emissions and spur clean energy innovation in California and Quebec. This declaration paves the way to spread those benefits throughout the Americas, positioning the region as a leader in the fight against climate change.  Environmental Defense Fund applauds the signatories for their leadership and looks forward to supporting the implementation of the Declaration.

The Carbon Pricing of the Americas initiative drives action to strengthen the implementation of carbon pricing as a central policy instrument for climate action and the shift to clean energy, innovation and the promotion of sustainable economic development. This initiative strengthens the alignment of carbon pricing systems and introduces harmonized systems for measurement, reporting, and verification (MRV) of greenhouse gas emissions, as a necessary foundation for regional cooperation, and development, of carbon markets within the Americas.