LAC region calls for climate finance and market-based instruments in the Paris agreement
Santiago de Chile, 11 September 2015 – The 9th Latin American and Caribbean Carbon Forum (LACCF 2015) concluded today in Santiago de Chile, where key business and government representatives from across the region discussed the use of market-based mechanisms and other forms of carbon pricing and climate finance. The Forum called for their inclusion as mitigation and development tools in the new global climate deal expected from Paris at the end of this year.
Following the recent negotiations that took place in Bonn where Parties clarified many issues and the way forward for negotiations before Paris, the Forum showcased successful examples of the use market-based approaches such as the CDM, innovative financial instruments, carbon pricing policies and mechanisms which have fostered climate finance deployment in the region, and reiterated their need to be able to continue using them in the long term.
Having a stronger and shared understanding of the enabling policy conditions and business actions that are required to move toward carbon neutral economies in the LAC region, participants underscored the need for ongoing exchanges and collaboration.
Countries are currently preparing and submitting their Intended Nationally Determined Contributions (INDCs) in advance of Paris. In this context, and since INDCs will be revised over time to increase climate ambition, climate finance and market-based mechanisms are key to achieving the carbon neutrality goals that the world is striving for by the end of the century, participants at LACCF 2015 heard.
Bridging the gap between public and private sector actions was praised as a prime opportunity to leverage the climate finance required to fight climate change in the region.
The LAC region is committed to preserving its natural resources and protecting its environment by building a resilient and decarbonized future for itself and the world. The region thus aims for a low-carbon development pathway, and it clearly emerged from this Forum that no tool or means shall be neglected in the Paris agreement to reach this objective.
The wealth of methodologies and experiences that were developed by the CDM were recognized as an important tool and a solid model to monitor, report and verify emissions.
The Economic Commission for Latin America and the Caribbean (ECLAC) and the government of Chile hosted the LACCF 2015 in Santiago de Chile from 9 to 11 September. This year’s Latin American and Caribbean Carbon Forum attracted over 400 participants from 48 countries, senior officials, policy-makers, project developers and investors, and built on the success of last year’s forum in Bogotá, Colombia.
This conference was jointly organized by the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC), the World Bank Group, the Latin American Energy Organization (OLADE), the International Emissions Trading Association (IETA), the United Nations Environment Programme (UNEP), the UNEP DTU Partnership, United Nations Development Programme (UNDP), the Inter-American Development Bank (IDB), and CAF development bank of Latin America (CAF).
What the Forum Organizers Said About Climate Change and Development in the LAC region
“What I have heard at this Latin American carbon forum in Santiago illustrates and echoes loudly the ideas that Parties are bringing forward in the negotiations, namely that the use of the existing mechanisms such as the CDM, carbon markets and other carbon pricing instruments needs to be reflected as part of the mitigation solutions in the Paris agreement. The LAC region is a forerunner in terms of implementing a variety of carbon policies and measures with a view to a clean and sustainable development leading to carbon neutrality, and I trust that their leadership will be key in 80 days.”
John Kilani, Director, Sustainable Development Mechanisms programme, UNFCCC
“The LACCF for the last 9 years has provided a valuable platform to discuss issues of Low Carbon development in the Latin American and Caribbean (LAC) region. This year’s Carbon Forum has sent a very positive message about the readiness of countries in the LAC region to make significant contributions to a new global climate agreement in Paris in December. Many countries have already taken domestic action in areas such as carbon pricing policies, expansion of Renewable Energy supply, and increased focus on efficient public transportation. In addition, there has been broad political and public engagement in the process of preparing INDCs in several countries.”
John Christensen, Director, United Nations Environment Programme DTU Partnership
“As always, the LACCF 2015 remains a unique platform to exchange experiences, best practices and innovative climate finance and policy solutions that can support the Latin America and Caribbean Region transitioning to a low carbon economy. With the new challenges ahead of achieving the required global ambition to address climate change, while also understanding the new financial flows in play, this is assuming an increasing importance. I want to recognize the support of the government of Chile and the different partners supporting this event.”
Neeraj Prasad, Manager, Climate Change Group, World Bank Group
“With the Paris climate summit approaching, the LACCF offered business professionals a valuable opportunity to debate how carbon pricing solutions can empower companies to offer bolder actions and greater investment. Latin America has a proud history of championing market-based solutions to climate change – and this Forum offered a vision for the next phase of market growth in the region.”
Dirk Forrister, President and CEO of International Emissions Trading Association
“It is important to build bridges between Latin American countries to harmonize policies, methodologies, and procedures to integrate the region into the migration to low-carbon and climate-resilient economies to ensure sustainable development. In that vein, CAF will support countries with the implementation of actions and projects arising from national contributions: in this regard, CAF manages today a green portfolio, which is 24% of its overall portfolio, and intended to be 30 % by 2020. Additionally, it is important to analyze the development of regional carbon markets, that take into account the lessons learned in the carbon markets operating in China, Europe and the USA, where countries can play a dual role of buyers and sellers, which will help to ease the way countries can make their contributions.”
Ligia Castro, Head of Environment and Climate Change of the CAF, Development Bank of Latin America
“The Latin American Carbon Forum has proved again, in this 9th edition, to be an excellent platform for exchanging lessons on climate activities among different stakeholders. It is important to demonstrate that climate investments are under implementation and that the LAC governments are taking the leadership on climate commitments.”
Luis Estanislao Echebarria, Representative Inter-American Development Bank, Chile
“In Latin America and the Caribbean, the electricity supply covers more than 90% of the region, the energy matrix has an important component of renewable energy that surpasses the world’s average, it also has a great potential of renewable sources, and CO2 emissions, although not as significantly as in other regions of the world, have been increasing in recent years. That is why OLADE has been increasing its activities in the region to support countries in their policies to protect the environment by promoting a series of measures to mitigate and adapt the energy sector to climate change.”
Fernando Ferreira, Executive Secretary, OLADE
Latin American and Caribbean Carbon Forum 2015: