Shell has appointed a new Vice President for Nigeria and Gabon. He is Peter Costello. He succeeds Markus Droll, who assumes a new role of Executive Vice President, Projects in Shell International in Rijswijk, The Netherlands.
Outgoing Vice President, Shell Nigeria and Gabon, Mr. Markus Droll (left), welcoming his successor, Mr. Peter Costello, in Lagos last Friday
Peter, an engineer by background, has spent over three decades in the oil and gas industry, starting his career in British Gas and working in the UK, India, The Philippines, Thailand and Kazakhstan. He transferred to Shell following the combination with BG in June 2016.
Peter, who has assumed duty in Lagos, said: “I come to Nigeria with high hopes of what we can do to build on the excellent work that I’ve met on the ground. Shell Companies in Nigeria are major contributors to the economy, not only through the energy they produce and the revenues they generate for the country, but also via their supply chains, local content and social investment. Given the exceptional talent here and the huge resource base of the country, I’m confident we can address the challenges in our operating environment, and continue to deliver real value to all stakeholders. My sentiments for Gabon are similar as we work to reposition our business and take advantage of new opportunities.”
Markus, who also an engineer by background, joined Shell in 1985 and has held a variety of roles in Projects and Front-End Engineering in The Netherlands, Oman and Brunei. He first came to Nigeria in 2006, where he led the Corporate and Commercial Directorate, and then in 2007, became Vice President Technical Africa. From 2009 to 2012 he was Vice President Technical Asia, Upstream International. He was appointed Vice President Nigeria and Gabon in January 2013.
Markus said: “The last four years have been exciting as they have been challenging in what can easily pass as my most satisfying job in my career so far. Nigeria and Gabon continue to be fertile ground in our portfolio, and it has been a privilege working with staff and other stakeholders to deliver the kind of value that we can all be proud of both in the onshore and offshore oil and gas production. I leave with fond memories of the energy and resourcefulness of the staff in Nigeria and Gabon and the genuine friendliness of the people, which goes even for the climate.”
Osagie Okunbor, Chairman of Shell Companies in Nigeria and Managing Director of The Shell Petroleum Development Company of Nigeria Ltd (SPDC), commented: “We are sad to see Markus go. He has been a partner and friend of Nigeria using the experience from his first Nigeria posting. We also welcome Peter to Nigeria. His vast networks and experience will be very helpful in further consolidating and improving the Shell presence in Nigeria.”
The National Emergency Management Agency (NEMA) has opened new operation offices in Adamawa, Edo and Kano states in its effort to bring disaster management closer to communities, and thereby reducing response time to disasters.
Director General (DG) of the National Emergency Management Agency (NEMA), Muhammad Sani Sidi
A statement issued by the Head of Media and Public Relations, Sani Datti, quoted the Director General, Muhammad Sani Sidi, as saying during the weekend that “NEMA is making conscious efforts to build stakeholders’ capacity and devise an appropriate mechanism to address the various facets of disaster risk reduction, namely- prevention, mitigation, preparedness, response and recovery.”
To achieve the feat, the DG observed that there was the need for cooperation and collaboration of all stakeholders at the federal, state, local government and community levels.
He further stated that requests for NEMA’s intervention, even for minor incidents, across the country is a sign of the level of confidence reposed by members of the public on the agency.
Sidi commended the efforts of Adamawa and Kano state governments for donating office spaces and warehouses to facilitate the opening of the operation offices in the states.
The operation offices will be responsible for taking disaster risk reduction to grassroots, capacity building programmes for stakeholders and coordinating government agencies and non-governmental organisations involved in the disaster management in the states.
With the creation of the Adamawa, Kano and Edo operation offices, the agency now has a total of nine operation offices and six zonal offices across the country.
Agustín Carstens, Governor of the Bank of Mexico, and Patricia Espinosa, Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), in this treatise, explore the financial implications of the coming into force of the Paris Agreement, as finance ministers and central bankers converge on Washington, DC for the IMF and World Bank Group Annual Meetings
Agustín Carstens, Governor of the Bank of Mexico. The IMF and World Bank meet in the US this week. Photo credit: Lionel Bonaventure/AFP/Getty Images
At the recent United Nations General Assembly in New York, Secretary-General Ban Ki-moon predicted the Paris Climate Change Agreement would enter into force before 2017, announcing 60 countries had now ratified its terms. This week (October 7-9), the International Monetary Fund and World Bank welcome an influx of finance ministers and central bankers, to its annual meetings in Washington, DC.
At first glance, these two events might appear totally unrelated. The imminent ratification of the Paris Agreement – a global deal to keep global temperature rise below 2°C – is a huge achievement and a real triumph for multilateralism. It also focuses the mind on the next step: how the Agreement will be implemented across the world?
Here, we get our first inkling as to why the finance ministers, central bankers and regulators meeting in Washington DC are so relevant to our story. Right now, progress is being made towards mobilising $100 billion in annual financing flows from rich countries to developing economies by 2020. Practical implementation is also taking place on the ground. Funding from the Green Climate Fund (GCF) is helping to build resilience into coastal and urban infrastructure projects in Bangladesh, while in Tanzania over 100,000 homes now have electricity through Off-Grid Electric, a clean energy company backed by debt financing from the Million Solar Homes Fund.
Yet overall, the cost of making the transition to a low-carbon future is measured in trillions. This quickly takes us far beyond the realm of public funds since no government – no matter how rich – can finance climate action through taxation and borrowing alone. One estimate suggests that around $90 trillion will need to be invested by 2030 in infrastructure, agriculture and energy systems, to accomplish the Paris Agreement.
This won’t happen without private capital and underlines why aligning the world’s financial system with the needs of climate action and sustainable development is every bit as important as emission reduction pathways and removing fossil fuel subsidies. Moreover, set against the $300 trillion of assets – held by banks, the capital markets and institutional investors – we’re faced with a problem of allocation rather than outright scarcity.
In fact, finance ministers and central bank governors are already deeply engaged. Those from G20 nations recently agreed a set of options to improve the ability of the global financial system to deliver green investment. One promising area is the rise of the green bond market where companies and municipalities can raise capital that is ring-fenced for priorities such as renewable energy, building efficiency and water management.
So far this year, the combined value of green bonds has grown to over $45 billion, a fourfold increase from 2013. By way of example, Mexico’s development bank, Nacional Financiera S.N.C (Nafin), issued its first $500 million green bond in November last year to finance wind energy in Oaxaca, Nuevo Leon and Baja California.
However, the world’s capital markets still do not fully incorporate climate factors when pricing assets and evaluating risk. In response, the Financial Stability Board setup a task force on climate disclosure headed by former New York mayor, Michael Bloomberg. Only with better and consistent reporting will banks, pension funds – and individual investors – be able to understand how the transition to a low-carbon economy will impact investments.
In all, the total number of policy and regulatory measures to build a more sustainable financial system has more than doubled in the past five years. This is a key finding of a new report published by UN Environment Programme (UNEP) (www.unepinquiry.org). It cites that measures taken by finance ministries, central banks and regulators to promote sustainable finance have risen to 217 and now exist in nearly 60 countries. These range from actions to steer finance towards clean energy through assessments of climate risk for insurance companies and on to roadmaps that set out how to green an entire financial system as China has just done.
These are all promising signs of positive momentum but the world’s financial architecture is still ill-equipped to deliver the necessary transformation. The national climate plans (INDCs) submitted by governments represent a real improvement on business-as-usual but do not yet provide the signals needed to steer capital towards global climate action. So while it is true investors are starting to measure the carbon footprint of portfolios and increase exposure to green assets, only a tiny minority has introduced comprehensive climate strategies.
The financial system clearly needs to evolve further to price environmental risks, overcome short-termism and deliver greater transparency on climate performance. Making this happen, and happen with a sense of urgency, will require different players to put in place mutually reinforcing financial policies and regulations that support the Paris Agreement. If we can get it right, private capital will respond and the trillions needed for transformation across countries will flow.
Government, industry and civil society representatives on Thursday in Montréal, Canada agreed on a new global market-based measure (GMBM) to control CO2 emissions from international aviation.
ICAO Council President, Dr. Olumuyiwa Benard Aliu. An historic agreement has been reached to mitigate international aviation emissions
The historic move came as the Plenary Session of the UN aviation agency’s 39th Assembly agreed to recommend adoption of a final Resolution text for the GMBM.
“It has taken a great deal of effort and understanding to reach this stage, and I want to applaud the spirit of consensus and compromise demonstrated by our Member States, industry and civil society,” remarked ICAO Council President, Dr. Olumuyiwa Benard Aliu. “We now have practical agreement and consensus on this issue backed by a large number of States who will voluntarily participate in the GMBM – and from its outset. This will permit the CORSIA to serve as a positive and sustainable contributor to global greenhouse gas emissions reduction.”
ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is designed to complement the basket of mitigation measures the air transport community is already pursuing to reduce CO2emissions from international aviation. These include technical and operational improvements and advances in the production and use of sustainable alternative fuels for aviation.
Implementation of the CORSIA will begin with a pilot phase from 2021 through 2023, followed by a first phase, from 2024 through 2026. Participation in both of these early stages will be voluntary and the next phase from 2027 to 2035 would see all States on board. Some exemptions were accepted for Least Developed Countries (LDCs), Small Island Developing States (SIDS), Landlocked Developing Countries (LLDCs) and States with very low levels of international aviation activity.
“I would like to thank all those who have been part of this process,” said Dr. Fang Liu, Secretary General of ICAO. “This Resolution is the reflection of the spirit of cooperation and tremendous efforts. The ICAO GMBM endorsed today is an important addition to the basket of measures aviation is pursuing to address CO2 emissions.”
President Barack Obama of the United States on Wednesday hailed the fact that enough nations have ratified the Paris climate accord for it to enter into force, telling reporters gathered in the Rose Garden, a garden bordering the Oval Office and the West Wing of the White House in Washington, DC: “Today is a historic day in the fight to protect our planet for future generations.”
President Barack Obama of the United States addressing leaders at COP21 in Paris, France
The European Parliament voted on Tuesday by a wide margin to join the agreement, taking the participation level past the threshold required for the treaty to take effect.
Ratification by at least 55 countries representing 55 percent of global emissions was needed for the agreement to enter into force. Before the Tuesday vote, 62 nations accounting for 52 percent of the world’s greenhouse gas emissions had joined; seven members of the European Union have now individually ratified the accord, including Germany and France, which will ensure that it crosses the 55 percent threshold. There is a 30-day period before the agreement takes effect.
“Today the world meets the moment,” Obama said. “And if we follow through on the commitments that this Paris agreement embodies, history may well judge it as a turning point for our planet.”
The president said the United States had played a pivotal role in brokering the agreement through both international diplomacy and the adoption of domestic regulations that have “changed, fundamentally, the way that we consume energy.”
“One of the reasons I ran for this office was to make America a leader in this mission,” he said.
Obama noted that the voluntary targets that nearly 200 nations agreed to as part of last year’s deal will not be sufficient to keep global temperature rise to “well below” 2 degrees Celsius (3.6 degrees Fahrenheit), compared with pre-industrial levels: “Even if we meet every target embodied in the agreement, we will only get to part of where we need to go.” But he added that the agreement will avert some of the worst climate impacts and send a powerful signal that could “open up the floodgates” to new investment in renewable energy and other technologies that will cut the world’s carbon output.
“So this gives us the best possible shot to save the one planet we’ve got,” Obama said.
But Republicans, including House Speaker Paul D. Ryan (Wisconsin), said the voluntary carbon reductions the United States has agreed to could lead to curbs on energy exploration that could punish poor Americans much more than the rich.
“The Paris climate deal would be disastrous for the American economy. It carelessly throws away the great gains that the United States has made over the past decade in energy development,” Ryan said in a statement. “The abundant, low-cost energy that we have unlocked will now be shut in the ground, eliminating the economic growth and jobs that come with development.”
Obama appeared undaunted by such criticism. In the weeks ahead, he said, international negotiators are focused on finalising new agreements that would impose limits on the airline industry’s greenhouse gas emissions and on hydrofluorocarbons, which are used in refrigeration and air-conditioning equipment, “all of which will help build a world that is safer and more prosperous and more secure and more free than the one that was left for us.”
“That’s our most important mission, to make sure that our kids and our grand-kids have at least as beautiful a planet, and hopefully even more beautiful, than the one that we have,” Obama said. “And today, I’m a little more confident that we can get the job done.”
The African Development Bank (AfDB) has lauded the initiative by the African Ministers’ Council on Water (AMCOW) to deploy web-based system to track and report on the implementation of global and regional commitments on water and sanitation in Africa.
Mohammed El Azizi, Director of the Water and Sanitation department of the AfDB (left), with the AMCOW Executive Secretary, Dr. Canisius Kanangire
Mohammed El Azizi, Director of the Water and Sanitation department of the AfDB who also doubles as director of the African Water Facility Trust Fund, disclosed this on Friday while welcoming the AMCOW Executive Secretary, Dr. Canisius Kanangire, to the AfDB headquarters in Abidjan for the training on the web-based M&E system for stakeholders and member-states from francophone countries in Africa.
While restating the bank’s commitment to supporting the continent’s quest to achieve the sustainable development goals ahead of the 2030 target, El Aziz affirmed that “the development of a Web-based Monitoring and Reporting System marks a new milestone in the water and sanitation sector in Africa in line with the global quest for data revolution and evidence-based policy making.”
“We express our readiness to support AMCOW in monitoring and reporting on progress towards achieving not just African commitments, for which efforts to monitor progress towards attainment are constrained by the lack of baseline data, but also the SDGs which provide a great opportunity to establish baselines for both regional and global indicator frameworks,” El Azizi added.
Responding, AMCOW’s Executive Secretary Dr. Canisius Kanangire, acknowledged AfDB’s longstanding commitment to the development of the African water and sanitation sector as evidenced through the Rural Water Supply & Sanitation Initiative (RWSSI), the African Water Facility, and several others which go a long a way in increasing access to the clean and safe water on the continent.
“With more support and cooperation of the AfDB, we will be able to strengthen the AMCOW secretariat in its mission of providing effective political leadership in the Water and sanitation sector as well as achieving the Africa Water Vision 2025,” Dr. Kanangire said.
The African Water Facility (AWF) is an initiative led by the African Ministers’ Council on Water (AMCOW) to mobilise resources to finance water resources development activities in Africa. It is hosted and managed by the African Development Bank (AfDB).
Over its past decade of operation, the AWF developed a portfolio of grants covering 104 projects in 52 countries including Africa’s most vulnerable states.
The AWF strives to mobilise and apply financial and human resources in ensuring water security in Africa, thereby contributing to meeting the targets and goals established by the Africa Water Vision 2025 and the Millennium Development Goals.
The AWF supports the delivery of the Africa Water Vision 2025 which will result in enhanced equitable and sustainable development and management of African water resources for poverty alleviation, socio-economic development, regional cooperation, the environment and resilience to water-related disaster and climate change.
Ecobank Transnational Incorporated, the leading Pan-African financial institution, through its Foundation, has renewed its partnership with the Global Fund to Fight AIDS, Tuberculosis and Malaria for a further three years. The relationship between the two organisations began in 2011, and the new agreement formalises Ecobank’s support for the Global Fund’s work in Africa.
Ade Ayeyemi, Ecobank Group Chief Executive Officer
A selected high-level audience composed of business leaders and development experts were present at the signing ceremony on September 16 2016, in Montreal, Canada. The event, “Changing Africa: Enabling growth through the private sector”, led by the Chief Executive Officer of the Ecobank Foundation, Ms. Julie Essiam, took place on the side-lines of the Global Fund’s Fifth Replenishment Conference. According to the terms of the agreement, Ecobank Foundation will work with the Global Fund to build the partnership into an engagement and advocacy platform for organisations and individuals who share a vision of accelerating the transformation of Africa.
Ade Ayeyemi, Ecobank Group Chief Executive Officer, pledged $3 million at the Global Fund’s Fifth Replenishment Conference in Montreal. Canada’s Prime Minister Justin Trudeau hosted the event attended by Heads of State, government officials and hundreds of private sector and development leaders from across the globe. The Fifth Replenishment raised $12.9 billion with a goal of saving eight more million lives.
Mr. Ayeyemi said, “Our job as bankers is to build the technical infrastructure that brings tens of millions more Africans into a more formal financial system. Ecobank’s founding fathers established a Pan-African bank to support Africa’s transformation. We are pleased to renew our productive partnership with the Global Fund. I am confident that we are a step closer to enabling prosperity across Africa.”
Through its Foundation, Ecobank will continue to take a prominent role with the Global Fund To Fight against AIDS, Tuberculosis and Malaria on the African continent.
Julie Essiam, Chief Executive Officer, Ecobank Foundation signed the agreement with Mark Dybul, Executive Director, Global Fund.
She said, “The Ecobank Foundation is pleased to be part of a historic moment with the Global Fund and what we are trying to do in Africa, which is to create a ‘thriving Africa’, and a prosperous continent. It is important for the private sector to collaborate to ensure that we use our platforms to unlock funds which will deliver sustainable progress and prosperity to Africa.”
Programmes supported by the Global Fund partnership have put 9.2 million people on antiretroviral treatment for HIV, provided 15.1 million people with TB treatment and distributed 659 million mosquito nets to protect families from malaria.
Mark Dybul, Executive Director, Global Fund, said, “We are excited about the Ecobank partnership, which improves the impact of our grants in numerous ways. When you workto advance financial management, all the way down to sub-recipients in rural areas, that’s hugely important for development.”
The Global Fund is an organisation designed to accelerate the end of HIV/AIDS, tuberculosis, and malaria as epidemics. As a partnership between governments, civil society, the private sector and people affected by diseases, the Global Fund mobilises and invests nearly $4 billion annually to support programmes run by local experts in more than 100 countries and supports attainment of the Sustainable Development Goals (SDGs) adopted by the United Nations.
Ministers and Heads of Delegation from the Least Developed Countries (LDC) Group have welcomed a new initiative designed to scale up renewable energy and energy efficiency for the world’s poorest and least developed countries.
Chair of the LDC Group, Tosi Mpanu-Mpanu
The new initiative, called the “LDC Renewable Energy and Energy Efficiency Initiative (REEEI) for Sustainable Development”, is to be launched at the next UN climate change conference to be held in Marrakech this November.
“This Initiative is a bold, collaborative effort by the LDCs to drive the global charge towards clean, renewable energy future. It will enable LDCs to leapfrog fossil fuel based energy by providing modern, clean, resilient energy systems that will generate prosperity and safeguard our futures,” said the Chair of the LDC Group, Tosi Mpanu-Mpanu.
Mr. Mpanu-Mpanu presented the Initiative to LDC Ministers and Heads of Delegation, which was met by broad support. “The adoption of the Paris Agreement and Sustainable Development Goals are propelling the world towards a phase of global action and implementation. The LDC REEEI is an important part of this process, providing concrete action to address climate change while empowering the world’s most vulnerable communities” said Mr. Mpanu-Mpanu.
“Most of the world’s 1.3 billion energy-starved people live in LDCs. The LDC REEEI will ensure no LDC is left behind by strengthening the capacity of African LDCs to take advantage of the Africa Renewable Energy Initiative, while providing similar support structures for Asian and other LDCs.”
The Ministerial meeting was one of a number of discussions held during the gathering of LDC negotiators in Kinshasa, Democratic Republic of Congo, in preparation for COP22. The meeting provided an important opportunity for the LDCs to share knowledge and expertise and to further elaborate their common needs and interests in the lead up to the negotiations.
The endorsement of LDC Ministers and Heads of Delegation builds on international support for the Initiative during the May UNFCCC negotiations in Bonn, Germany, where leaders of key negotiating blocs called for global action on renewable energy and energy efficiency. Mr. Mpanu-Mpanu also presented the Initiative at a High-Level event at the UN Headquarters in New York City on 21 September.
“As we head towards COP22 in Marrakech, the LDC REEEI is an opportunity for our developed country partners to fulfil their support responsibilities under the Paris Agreement and is a key example of the actions that can and must be taken to achieve the important goals we all set in Paris.”
At the meeting, LDC Ministers also noted the tremendous amount of work to be done to agree upon a comprehensive rulebook for the implementation of the Paris Agreement in preparation for the entry into force and operationalisation of the Agreement, and recognised the need to capitalise on mounting political will amongst all countries to take ambitious action on climate change.
Canada has taken a remarkable step in the drive towards realising its climate change commitments, thanks to a fresh resolve to provide a yardstick to price carbon.
Justin Trudeau, prime minister of Canada. Photo credit: AFP / Geoff Robins / Getty Images
In March 2016, the First Ministers committed to putting the country on a credible path to meet or exceed its national target of reducing greenhouse gas (GHG) emissions by 30 percent below 2005 levels by 2030. The First Ministers agreed that this would require transitioning to a low-carbon economy by adopting a range of measures, including carbon pricing, adapted to the specific circumstances of each province and territory. Federal, provincial and territorial governments are developing a Pan-Canadian Framework on Clean Growth and Climate Change to implement these commitments, for adoption at the First Ministers Meeting in fall 2016.
Economy-wide carbon pricing is the most efficient way to reduce emissions and, by pricing pollution, will drive innovative solutions to provide low-carbon choices for consumers and businesses. British Columbia, Alberta, Ontario and Quebec, representing over 80 percent of the population, have already introduced carbon pricing. More action is needed, however, to expand the application of carbon pricing across Canada and ensure that it plays a significant role in reducing GHG emissions by increasing its stringency over time, says Government in a recent statement.
The Government of Canada says in the release that it supports the following principles, which are based on those proposed by the Working Group on Carbon Pricing Mechanisms:
Carbon pricing should be a central component of the Pan-Canadian Framework.
The approach should be flexible and recognise carbon pricing policies already implemented or in development by provinces and territories.
Carbon pricing should be applied to a broad set of emission sources across the economy.
Carbon pricing policies should be introduced in a timely manner to minimise investment into assets that could become stranded and maximise cumulative emission reductions.
Carbon price increases should occur in a predictable and gradual way to limit economic impacts.
Reporting on carbon pricing policies should be consistent, regular, transparent and verifiable.
Carbon pricing policies should minimise competitiveness impacts and carbon leakage, particularly for trade-exposed sectors.
Carbon pricing policies should include revenue recycling to avoid a disproportionate burden on vulnerable groups and Indigenous peoples.
The Government proposes a pan-Canadian benchmark for carbon pricing that reflects these principles and the Vancouver Declaration. Its goal is to ensure that carbon pricing applies to a broad set of emission sources throughout Canada with increasing stringency over time to reduce GHG emissions at lowest cost to business and consumers and to support innovation and clean growth.
The benchmark includes the following elements:
Timely introduction. All jurisdictions will have carbon pricing by 2018.
Common scope. Pricing will be based on GHG emissions and applied to a common and broad set of sources to ensure effectiveness and minimise interprovincial competitiveness impacts. At a minimum, carbon pricing should apply to substantively the same sources as British Columbia’s carbon tax.
Two systems. Jurisdictions can implement: (i) an explicit price-based system (a carbon tax like British Columbia’s or a carbon levy and performance-based emissions system like in Alberta), or (ii) a cap-and-trade system (e.g. Ontario and Quebec).
Legislated increases in stringency, based on modelling, to contribute to our national target and provide market certainty. (a) For jurisdictions with an explicit price-based system, the carbon price should start at a minimum of $10 per tonne in 2018, and rise by $10 per year to $50 per tonne in 2022. (b) Provinces with cap-and-trade need: (i) a 2030 emissions reduction target equal to or greater than Canada’s 30 percent reduction target; (ii) declining (more stringent) annual caps to at least 2022 that correspond, at a minimum, to the projected emissions reductions resulting from the carbon price that year in price-based systems.
Revenues remain in the jurisdiction of origin. Each jurisdiction can use carbon pricing revenues according to their needs, including to address impacts on vulnerable populations and sectors and to support climate change and clean growth goals.
Federal backstop. The federal government will introduce an explicit price-based carbon pricing system that will apply in jurisdictions that do not meet the benchmark. The federal system will be consistent with the principles and will return revenues to the jurisdiction of origin.
Five-year review. The overall approach will be reviewed by early 2022 to confirm the path forward, including continued increases in stringency. The review will account for progress and for the actions of other countries in response to carbon pricing, as well as recognition of permits or credits imported from other countries.
Jurisdictions should provide regular, transparent and verifiable reports on the outcomes and impacts of carbon pricing policies.
The Government will work with the territories to address their specific challenges.
The pan-Canadian approach to carbon pricing is described as a practical and cost-effective way to address climate change and will contribute to substantial emission reductions, stimulate innovation, clean growth and jobs for the middle class to support the transition to a low-carbon economy.
The Government says it is committed to continuing to work with provinces and territories to implement carbon pricing as a central component of the Pan-Canadian Framework on Clean Growth and Climate Change. It will also continue to engage with Indigenous peoples, it adds.
“By acting now and acting together, we will build a better Canada for our children and grandchildren,” says the Canadian government.
Analysis of Colombia, Brazil and Bolivia finds land rights for indigenous communities in the Amazon is key to sustainable economic development, slowing deforestation and curbing climate change
Andrew Steer, President and CEO, WRI. Securing land tenure in the Amazon, he says, is not only the right thing to do, it’s also one of the world’s most cost-effective climate mitigation strategies
A report released in Washington DC on Thursday by the World Resources Institute (WRI) offers new evidence that the modest investments needed to secure land rights for Indigenous Peoples in the Amazon will generate billions of dollars in returns – economically, socially and environmentally – for governments, investors and communities.
“We now know that there is a clear economic case to be made for ensuring that Indigenous Peoples have secure rights to their land. Not only is securing land tenure the right thing to do, it’s one of the world’s most cost-effective climate mitigation strategies,” said Andrew Steer, President and CEO, WRI. “National governments should take note – and move quickly – to secure Indigenous lands and incorporate land rights into their climate change strategies and commitments to the Paris Agreement.”
“In the pursuit of inclusive growth and climate action, we must recognise the profound value of securing land rights for those communities who best protect our forests,” said Lord Nicholas Stern, Chair, Grantham Research Institute, London School of Economics. “Rising to the challenge of the climate crisis requires that we find new and sustainable ways to develop and grow.”
Previous WRI research found that when Indigenous Peoples and communities have secure rights to land, both deforestation rates and carbon emissions in those lands often go down significantly. In the new report, matching analysis data show that the average annual deforestation rates in Bolivia, Brazil and Colombia were significantly lower in tenure-secure indigenous forests than in similar areas without secure tenure: 35% lower in Bolivia, 40% lower in Brazil, and 50% lower in Colombia.
Building on this analysis, the authors calculated the economic value of carbon and other ecosystem services benefits of secure indigenous lands in the Amazon and found billions of dollars in value. The report finds the total estimated benefits of secure indigenous lands in Bolivia are $54 to 119 billion, Brazil $523 billion to 1.165 trillion, and Colombia $123 to 277 billion over the next 20 years, when factoring in global carbon benefits and ecosystem services like clean water, soil retention, pollination, biodiversity, flooding control, and recreation and tourism fees.
The numbers are even more staggering because the costs to secure indigenous land rights in the Amazon are just a few dollars per hectare of forest per year – less than 1 percent of the total economic benefits. The report did not include additional social benefits such as job creation and increased social services, like healthcare and education for local communities.
Moreover, WRI’s report finds that securing indigenous and community lands is cost-effective when compared with other climate mitigation options like carbon capture and storage (CCS). Analysis shows that using CCS to reduce emissions costs five to 29 times more in coal-fired power plants and seven to 42 times more in natural gas-fired power plants than achieving the same emissions reductions through securing indigenous forestland tenure.
“Indigenous Peoples and local communities have a long history in using natural resources wisely and adapting to the changing climate in an integrated and sustainable manner,” said Naoko Ishii, CEO and Chairperson of the Global Environment Facility (GEF). “Protecting and enhancing the land rights of Indigenous Peoples is a necessary step towards greater economic prosperity and safeguarding our global commons.”
As attention shifts toward implementing the Paris Agreement, too few national climate contributions take secure land rights into account. The new report finds indigenous lands with secure tenure can reduce deforestation and sequester carbon, lowering greenhouse gas emissions and helping curb climate change. The report estimates avoided emissions over 20 years would be at least 31.76 Mt CO2 per year in Brazil, the equivalent to taking more than 6.7 million cars off the road per year. Estimates for Bolivia are 8.04 Mt CO2 per year and for Colombia 3.01 Mt CO2 per year. Had the Indigenous Peoples in these countries not maintained secure tenure over their lands, the CO2 emissions of each country would be higher – about 9 percent more per year in Bolivia, and 3 percent more per year in Brazil and Colombia.
Securing indigenous lands is an effective and cost-effective carbon mitigation strategy that can help countries meet their contributions to the Paris Agreement. However, analysis by RRI found that only 21 of 197 Nationally Determined Contributions (NDCs) included clear commitments to implement community-based tenure or natural resource management strategies as part of their emissions reduction plans; including only Bolivia and Guatemala from Latin America. The only country to set a measurable target for the expansion of secure tenure rights was Cambodia.
WRI’s new report shows that securing indigenous land rights could help Colombia meet its national climate commitment. Colombia committed to reduce its greenhouse gas emissions by 20 percent by 2030, a total of 67 Mt CO2. The authors calculate that through avoided deforestation on indigenous lands, Colombia could save a minimum of 45 Mt CO2 between 2016-2030, which could achieve 69 percent of its NDC emissions reduction target.
“Securing land rights for indigenous communities in the Amazon truly would have a global impact,” said Helen Ding, lead author and Environmental Economist, WRI. “At the local level, secure land rights would mean clean water, reduced pollution, revenue from ecotourism and forest products, and more. In terms of global carbon mitigation, there are billions of dollars to be gained from slowing deforestation and sequestering carbon in Indigenous forests.”
The report sets forth recommendations for decision-makers from government and other sectors who can establish laws and direct resources toward titling and protecting indigenous and community lands. It also recommends that donors, international development funds and climate finance mechanisms have a role to play to direct new resources in order to secure indigenous and community lands.
The WRI is a global research organisation that spans more than 50 countries, with offices in the United States, Brazil, China, India and Mexico, among others. The body’s over 550 experts and staff work closely with leaders to turn big ideas into action at the nexus of environment, economic opportunity and human well-being.
