Our show today starts with two French communes -- namely, Contrexéville and Vittel -- because these two have some of the cleanest, purest water in all of Europe, but they also almost didn't.
Up until 1992, the farms here -- like those across Europe and around the world -- had been dribbling pesticide and cow poop into the water, while home-owners and businessmen had been doing the same for crude oil and other pollutants.
But then the communes undertook a massive environmental overhaul.
Farmers started getting rid of their cows and weaning themselves off of pesticides by rotating their crops in ways that didn't give bugs a chance. Home-owners and businesses started digging up their oil tanks and replacing them with natural gas installations. Today, more than 90 percent of the land in both communes is under some sort of environmental protection.
But this overhaul wasn't led by environmental regulators. It was led by a private company with a very clear incentive.
The company was Swiss food giant -- and perpetual water bad boy -- Nestlé, and its incentive was the fact that its lucrative Vittel, Contrex and épar mineral waters were only lucrative because they're certified as "natural". To keep that certification, they had to clean up the rivers that feed the aquifer that in turn feeds the springs that the waters gurgle up from.
The stakes were high enough – and the incentive strong enough – that Nestlé created a separate consultancy called Agrivair and spent more than €24.5 million throughout the 1990s “to design a system to either compensate farmers for their change in practice, or acquire the land and lease it for free under conditions targeting groundwater protection,” according to a new report called “State of European Markets 2017: Watershed Investments”.
The report is one of three market outlooks that the Forest Trends initiative Ecosystem Marketplace created to support a cluster of new online university courses launched by green businesses accelerator ECOSTAR to help organic farmers, watershed managers and other “green entrepreneurs” better understand the business elements of their respective missions. The ecosystem services e-learning course will run from October to December, and the application deadline is September, 30th. You can learn more at ecostarhub.com/e-learning-course.
The Agrivair project still pays farmers an average of €200 per hectare to keep things green, and it’s one of more than a dozen “payments for ecosystem services” (PES) programs highlighted in the three reports. Lead author Genevieve Bennett, a Senior Associate at Ecosystem Marketplace, says the project illustrates the ability of companies to provide resources when properly incentivized. She adds, however, that private and public interests rarely line up so neatly, and that such projects work best within a well-structured regulatory environment.
“You don’t really want a private company taking a lead on decisions about water resources management in your basin,” she says in an extensive, 45-minute interview that will run on episode 19 of the Bionic Planet podcast, which is set to be posted on Monday, 17 July. “That’s a public issue…but where there is a seat for the private sector at the table is contributing resources: if you’re a beverage company and you’re concerned about clean water and you want to kick in some funding to help pay for that…that’s a positive thing.”
Today we speak with Andrew Mitchell, founder and director of the Global Canopy Programme (GCP).
A zoologist by training, Andrew realized that to save the forest, he had to leave the forest and enter the economic system that was impacting it. So he founded and runs GCP in Oxford and recently became a Senior Adviser to Ecosphere Plus, which is an impact investment group that funnels money into sustainable land-use. I caught up to him in May at the Innovate4Climate conference in Barcelona.
I first met Andrew at the 2007 climate talks in Bali, Indonesia, when I was just starting to learn about the impact that forestry and farming had on climate change and how our consumption patterns fit into that. I'd done some research on my own and then plunged into the deep end -- jumping from technical panel to technical panel, and sleeping just four hours per night for two weeks.Andrew stood out from most of the other science guys because of his ability to communicate complex issues in simple ways -- which is a rare skill. More importantly, his ideas have stood the test of time, while a lot of the simple communicators are oversimplifying or speaking from a position of ideology instead of science.As I mentioned, we spoke at the Innovate4Climate conference in Barcelona.
Plan A amounted to nothing less than a complete restructuring of the company’s supply chain – from the thousands of small farmers who produce its raw materials to the millions of people who buy its products – and it launched with an ambitious list of 100 commitments covering everything from the way it treats its partners to the health and well-being of its employees.
Despite the name, Plan A was designed to change over time, with an initial five-year phase ending in 2012 and leading to a more ambitious second phase, and then another after that. By late 2009, however, it was clear that the project had succeeded in galvanizing the workforce and winning over suppliers, but it wasn’t resonating with customers.
“Internally, Plan A has been a powerful change brand, helping 75,000 M&S employees and 2000 suppliers to see the links between activities as disparate as taking trans fats out of food, reducing energy use and promoting Fairtrade,” wrote Mike Barry, the company’s director of sustainability, in a 2009 piece for the UK marketing magazine “Campaign”.
“Consumers buy more deeply into sustainability when they are engaged in change, and not just told about it,” he continued, explaining the company’s 2009 decision to add a consumer-facing tagline: “Doing the right thing”, coupled with an education campaign.
The 2008 banking crisis hit the retail sector hard, but by late 2009 Plan A had achieved 45 of its 100 commitments; and in 2010, auditors attributed £50 million of extra profit to Plan A – mostly because of energy efficiency and streamlined procurement costs. But Rose decided to leave the company that year, and one of his final acts was to initiate an early end to the phase one so that the sustainability team could harness the lessons learned for a new five-year phase through 2015, with regular five-year intervals after that.
“It might take 20 or 25 years to build a truly sustainable Marks & Spencer, and you can’t have a 25-year plan in retail,” says Barry. “Things change by the day, the week, the month. So what we had to have is a recognition that every few years – and five’s a nice cycle – we’d update the plan, and think about where to go next with it.”
Rose’s successor, Marc Bolland, recommitted to Plan A, which added 80 more commitments for the 2010-2015 period. By 2012, Plan A was delivering a net benefit of £105 million, according to that year’s annual report.
“The substantive part of this benefit comes from improved resource efficiency, although we are now deriving extra benefits from initiatives that drive our existing business and from new revenue streams,” it said.
To engage customers, they decided to crystallize their strategy into distinct Plan A Attributes, “and we decided that every M&S product has to have a Plan A story to tell by 2020,” says Barry.
“In most cases, a Plan A attribute will be a well-recognized external environmental and social standard such as Forest Stewardship Council (FSC) Certified wood or Fairtrade certified cotton,” the 2011 annual report said. “Where external standards don’t exist we work with others to develop our own approach which is credible and robust.”
The annual reports hint at rigorous internal debates over what is and is not a Plan A Attribute, and each attribute is clearly defined and documented. Even before settling on a list of Attributes, however, the company agreed make sure that half of all products sold had one by 2015. By 2012, they had identified 55 attributes – 40 for M&S food and household products and 15 for M&S clothing and home products. By 2013, that number had risen to 70, and by 2014 – one year ahead of schedule – 56 percent of all products sold had at least one attribute.
“Metaphorically, we are but 25% sustainable,” he says. “At least 75% of the journey lies ahead.”
And that journey, he says, can’t progress in a meaningful way unless we fix the entire ecosystem within which M&S operates. After all, the company’s $23 billion in revenue amounts to a rounding error in the $100 trillion global economy.
“Tiny little M&S is not going to make the world’s palm oil production sustainable on its own,” says Barry. “It needs to work with Unilever, with Coke, with Pepsi, with Walmart and all the others to make sure we can move the industry together.”
All of those companies have joined multilateral sustainability groups like the Consumer Goods Forum (CGF), where M&S plays a leadership role.
“We have to be part of a system change, and that system change is, in part, because all of the retailers that we work with at the Consumer Goods Forum and Sustainable Brands line up and specify the same high standard of expectation of their supply chains,” Barry says
Such cooperation does seem to be generating results, according to a report called “Tracking Corporate Commitments to Deforestation-Free Supply Chains, 2017”, which the Forest Trends Supply-Change published in March.
The initiative looked at 35 collective efforts and found that at least 95% of the companies participating in such groups had pledged to reduce their impact on forests.
Meanwhile, Plan A continues to evolve. Earlier this month, current CEO Steve Rowe unveiled the plan through 2025, and it includes a plan to support 1,000 communities and benefit 10 million people – making M&S one of more than 100 companies to explicitly
It's been almost a year since a Swiss engineer/businessman named André Borschberg and a Swiss psychiatrist/balloonist named Bertrand Piccard completed the first-ever around the world flight in a solar-powered airplane -- the Solar Impulse 2, a machine that could, theoretically, fly forever without every pausing to refuel.
But this wasn't just an adventure. It was a mission to show that we can meet the climate challenge, and it's a mission that Bertrand Piccard is still continuing.
I ran into him in late May at the Innovate4Climate Summit in Barcelona, where he launched something called the World Alliance for Efficient Solutions, which aims to identify and fund 1000 profitable climate-change solutions by the end of 2018.
I'll be adding a complete article from Ecosystem Marketplace to the show notes for Episode 16 at Bionic-Planet.com, so be sure to check back next week. Also, if you want to visit the Alliance's site directly, go to alliance.solarimpulse.com.
More than 1.5 billion cows are spread across the planet, each with four stomachs. That's six billion stomachs emitting methane -- a powerful greenhouse gas that captures about eighty times more heat -- or contributes about eighty times as much to climate change -- as carbon dioxide does, at least in the short term.
Now a new product called Mootral -- like "Neutral" but with a Mooo instead of a Nooo -- aims to slash those emissions by killing off the bad bacteria in the stomachs of cows and other "ruminants" -- which is what we call four-stomached beasts like cows, goats, and sheep.By killing off the bad bacteria, Mootral makes the animals healthier and slashes the methane in their burps by about 30 percent. Can this new tool help to slow climate change?
Here is the Mootral web site: www.mootral.com
Topics: climate change, mootral, cows, methane, carbon offsetting
With the United Kingdom on the brink of leaving the European Union Emissions Trading System (EU-ETS), the United States locked in the inertia of a Donald Trump presidency, and populism stoking fears of slackening commitment to meeting the climate challenge, support for carbon markets is coming from two once-unlikely sources: namely, risk-adverse corporate boards and China, according to the International Emission Trading Association’s (IETA) annual Greenhouse-Gas Market Sentiment survey, which was released last week at the Innovate4Climate conference in Barcelona one day after Ecosystem Marketplace’s latest survey of voluntary carbon market practitioners, Unlocking Potential: State of Voluntary Carbon Markets 2017.
The Ecosystem Marketplace report identified transactions for roughly 63 million metric tons of carbon dioxide equivalent (CO2e) last year, including the 1 billionth metric ton transacted since the first State of Voluntary Carbon Markets Report in 2006. That represents a 24 percent drop from 2015, in part because two large participants failed to respond to the survey.
The total value was $191.3 million, and the report comes as governments around the world begin scaling up mandatory cap-and-trade programs to accelerate emission-reductions under the Paris Climate Agreement. In the past, governments have used voluntary carbon programs to incubate mandatory trading systems like the one currently underway in California. There are currently no plans for such incubation efforts, but the Dutch government recently became the latest government to formally endorse voluntary markets as a way to test new strategies and promote emission-reductions at home. At the same time, some voluntary offset types could be recognized under the aviation industry’s global cap-and-trade program, which kicks in after 2020.
The IETA report, which is built on a survey of 135 IETA members from across the globe and conducted by PwC, led to calls for a major “PR offensive” to counter populist rhetoric and anti-science propaganda, which reporter Jane Meyer ties to Koch Brothers, Richard Mellon Scaife, John M. Olin, and the DeVos and Coors families in her book “Dark Money“.
“The high of seeing the Paris Agreement enter into force last year was tempered by an increase in populist political movements that have pushed climate change down the agenda,” says IETA President and CEO Dirk Forrister. “While the changing political headwinds are cause for concern, we are encouraged by those that are stepping up to lead on climate action. Nationalism and isolationism won’t solve this global problem.”
Still, 77% of respondents said that climate change is a board-level priority, and 90% said board-level engagement has either increased or stayed the same in the past year.
On the voluntary carbon front, the majority of offsets sold came from programs that save endangered forests using mechanisms collectively known as REDD+ (Reduced Emissions from Deforestation and Forest Degradation, plus other land-use initiatives) and wind projects. Landfill methane projects followed as another top project type.
A disturbing 54.4 MtCO2e of offsets went unsold.
In addition to the above podcast, Hamrick will appear in two webinars we’re hosting on June 6th and 7th. For more resources and to download the free report, visit this page.
One hundred and forty-four countries have ratified the Paris Climate Agreement, and 143 of them say they'll stay-in-it – even if Donald Trump pulls the United States out. But staying in and delivering what you stayed in to do are two different things. One way to track progress is to track laws, and a newly-updated database tracks over 1200 of them.
11 May 2017 | The United States may be backsliding on climate under President Donald Trump and the Republican-controlled House and Senate, but the country still has 8 federal laws related to climate change and 6 climate policies; and hundreds of lawsuits are going on, including 54 under the Clean Air Act alone.
Together, they track more than 1,200 climate change or climate change-relevant laws worldwide – up from a mere 60 in 1997, when the Kyoto Protocol came into force. The LSE has spent the last few months combing through the data, and published their findings on May 9.
Countries won't officially take stock of their progress under the Paris Agreement until 2023, when they sit down and see who did what and how everyone can do more, but at this point we don't even know exactly what activities countries will be taking stock of.
That “stocktaking” is one of the things negotiators are negotiating this week and next in Bonn, Germany, but for now we just have proxies – like renewable-energy growth, rates of deforestation, and of course legal frameworks.
Climate negotiators are meeting in Bonn, Germany, the next two weeks to move the Paris Climate Agreement forward – even as Republicans in the United States seem intent on moving it backward. Most countries say they want the US to stay in the agreement, but there’s reason to believe it will be better off without us.
8 May 2017 | The dark-haired man looked haggard and world-weary as he leaned towards the microphone.
“We ask for your leadership,” he told US Undersecretary of State Paula Dobriansky, with cameras running and the world watching.
“We seek your leadership,” he continued. “But if for some reason you’re not willing to lead, leave it to the rest of us. Please, get out of the way!”
The year was 2007, and the young man was Kevin Conrad, who represents Papua New Guinea in UN climate talks. The place was Bali, Indonesia, where George W Bush’s US negotiating team had been gunking up talks with silly games and doublespeak. The words perfectly captured the exasperation in the room, and delegates roared in rare applause. Bush’s team backed down.
But ten years on, it’s déjà vu all over again, except this time the world isn’t haggling over how to fix the climate mess. Instead, negotiators are meeting in Bonn, Germany this week and next to begin implementing the bottom-up fix that the world has already agreed on – a fix the United States was instrumental in creating: namely, the Paris Climate Agreement, which is a flexible framework that gives every country the leeway to meet the climate challenge as it sees fit.
It does require the creation of science-based rules for measuring and monitoring emissions, and the world’s media should be focused on the substantive efforts to develop a detailed rulebook for handling international cooperation on emission-reductions. Instead, however, the Trump Show has stolen the spotlight, and media is preoccupied with the question of whether Trump will or will not pull out of the landmark accord.
Most reports focus on the tragedy of him leaving, but some insiders fear the opposite: namely, that he’ll stay in and sabotage progress.
Gus Silva-Chavez is one of those. A longtime NGO observer, Silva-Chavez now runs the Forest Trends REDDX initiative, which tracks carbon finance – finance that depends on accurate measurements of greenhouse-gas emissions and reductions, as well as rigorous tracking of international carbon transfers.
It’s complicated stuff, but 99 percent of the work has already been done. Silva-Chavez, however, fears the Trump team will either complicate it even more or try to “streamline” it, which would undermine the environmental integrity of the system.
“They could go in and say, ‘The UN is not going to tell the US what to do,’” he says in an interview to appear on today’s episode of the Bionic Planet podcast. “They could say, ‘We don’t need an extensive, detailed rulebook. All we need are the basics, and we’re not going to agree to anything more.’”
That, he says, could slow the talks without formally appearing to do so, just as Republican strategists undermined civil rights while formally protecting “freedom”. Also, he adds, while the US stands alone now, any opposition could provide cover for other countries to also bail or stall.
“Right now, on the record, every country is saying the right thing: that they’ll toe the line,” he says. “But that could change if the US breaks its word.”
If that sounds far-fetched, we need just look back to the bad old days of the second Bush administration, which handed negotiations over to a previously unknown and famously unqualified congressional staffer named Harlan Watson.
Watson was a human wrench tossed into the gears of global diplomacy by ExxonMobil for the sole purpose of grinding those gears to a halt. For that task, we was actually well-suited, and his name elicits such visceral feelings of disgust among those who were there that it probably warrants a trigger warning. The parallels to today are frightening: ExxonMobil inserted Watson into the Bush administration via a fax “which Exxon Mobil spokesman Russ Roberts said was sent by the company but not written by any of its employees,” as Washington Post reporter Juliet Eilperin put it – foreshadowing the daily doublespeak that Sean Spicer now spews at every White House presser.
Watson, along with Dobriansky and energy industry lawyer James Connoughton, formed an unholy Triumvirate of Obstruction that neutered the US on the world stage, and as an example, you can look to Bali: after months of stalling and flip-flopping, Watson said the US would only sign an agreement without targets or numbers because “once numbers appear in the text, it prejudges the outcome and will tend to drive the negotiations in one direction.”
After another collective groan from delegates, it was former US Vice-President Al Gore’s turn to speak.
“My own country, the United States, is mainly responsible for obstructing progress at Bali,” he admitted, but “over the next two years the United States is going to be somewhere it is not now….One year and 40 days from today, there will be a new (presidential) inauguration in the United States.”
He argued that even a watered-down agreement was better than nothing, so delegates passed an agreement that met all of Watson’s criteria, but Dobriansky still rejected it, prompting Conrad’s famous, exasperated retort and Dobriansky’s about-face.
As we all know now, Barack Obama won the next election, and his team incrementally helped shepherd the talks that resulted in the Paris Agreement – an incredibly flexible approach to fixing the climate mess that encourages a race to the top instead of binding targets.
Optimists like former Dutch negotiator Jos Cozijnsen point out that, from a rational perspective, the United States has no reason to either leave or torpedo the agreement.
“It’s not rational… and this is not Kyoto,” says Cozijnsen, who now advises environmental NGOs, referencing the Kyoto Protocol. “You can’t block anything anymore, and there is no reason for the US to do so.”
The Trump team, however, isn’t rational, either; and while they can’t formally block, they can gunk things up. Or they can get out of the way.
Today we examine an amazing new tool called "Trase", which launched at year-end climate talks in Marrakesh, Morocco.
It shows you something we've always known was there, but could never see: namely, 320,000 supply threads, going from individual municipalities in Brazil, through local brokers, to importers in countries around the world.
With it, you can see which trading companies are buying soybeans form municipalities where farmers are chopping forests to grow them, and companies can see, too.
It's a tool that good companies can use to reduce their impact on forests, and that watchdogs can use to keep bad companies honest.
Read the companion story on Ecosystem Marketplace:
US president-elect Donald Trump claims to have an open mind on climate science, but he put an unabashed climate-science denier in charge of his environmental transition team, and he says he'll slash NASA's climate-monitoring capabilities.
Might a president who doesn't believe in climate science still find it worthwhile to stay in the Paris Agreement? And who will pick up the slack if he doesn't?
These are questions we addressed in three stories on Ecosystem Marketplace:
“Can Individual US States, The Private Sector, And The International Community Fix The Climate Despite Trump Election?” came the day after the election, and pretty much says it all
“Investors See Rockier Road To Low-Carbon Economy Under Trump, But No Dead End” came in one week later.
“Hundreds Of US Companies Urge Climate Action As John Kerry, Others Calls For More ‘Business Diplomacy’” came in a day after that.
We harvested all three to generate today's episode of Bionic Planet, which offers an audio mosaic of snippets culled from interviews we conducted in the two weeks after the US Presidential election, as well as audio we harvested from a media call that the World Resources Institute hosted.
Guests, in order of appearance, are:
Yvo de Boer, former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC)
Andrew Steer, President and CEO of the World Resources Institute
Anthony Hobley, CEO of the Carbon Tracker Initiative
Michael Bloomberg, in his capacity as head of the Task Force on Climate-related Financial Disclosures
Christian de Valle, Founder and Managing Partner of Althelia Ecosphere
Alden Meyer, Director of Strategy and Policy for the Union of Concerned Scientists
Sam Adams, Director of WRI United StatesMike Korchinsky, Founder and CEO of Wildlife Works
Alan Greenspan, former Chairman of the US Federal Reserve Bank
Andrew Mitchell, Founder and Director of the Global Canopy Programme
Peter Grannis, First Deputy Comptroller for the New York State Office of the State Comptroller.
Nigel Topping, CEO of the We Mean Business Coalition
Jonathan Pershing, US Special Envoy for Climate Change
Brigadier General Stephen Cheney (ret), CEO of the American Security Project.
Peter Graham, former Canadian negotiator now working as a consultant in Washington, DC.
Initial reactions from Marrakesn to Trump Victory in US
I came to year-end climate talks here in Marrakesh with a clear plan to cover the most complicated elements of these talks and break them down for a general audience. I'd intended to focus mostly on how global supply chains would change in response to this process – and I still will – but Donald Trump’s victory in the US presidential election has changed everything.
The talks are continuing, and the Paris Agreement remains in place with or without the United States, but the backroom diplomacy that the Obama administration had proven so adept at – the unofficial talks inside the talks that lay the foundation for the next round – which was credited with getting the treaty ratified so early – that’s gone, and I’ll cover that in more detail in a later piece.
In first hours after Trump's victory, I spoke to some veterans of this process and found something resembling a consensus: namely, that individual US states and the corporate sector can step in to at least partially fill the void in climate competency.
On Thursday, 65 countries representing 83% of international aviation agreed to cap their greenhouse-gas emissions from international flights at 2020 levels from 2021 onward – in part by forcing airlines to offset emissions above that threshold, and MAYBE by funding programs that save forests and support sustainable agriculture around the world. A final decision on offset types, however, isn’t expected until 2018
Backgrond: The Paris Climate Agreement created a framework for keeping the global rise in temperatures below 2 degrees Celsius (3.6 degrees Fahrenheit) over pre-Industrial levels, but it left emissions from international flights in limbo – partly because their "international" nature made it hard to reach agreement on which countries to charge the emissions to.
That changed on Thursday, when the International Civil Aviation Organization (ICAO), the UN agency charged with coordinating aviation regulation, including environmental impact, agreed to freeze net aviation emissions at 2020 levels beginning in 2021, and to force airlines to offset emissions above that threshold.
The program, called “CORSIA” (Carbon Offsetting and Reduction Scheme for International Aviation), will be phased in, with a voluntary pilot phase running from 2021 through 2023, then a second voluntary phase from 2024 through 2026, and a final phase, running from 2027 through 2035 that is mandatory for all countries except the very poor.
ICAO President Olumuyiwa Benard Aliu said that 65 countries had already signed on for the voluntary phase, and these countries together represent nearly 83 percent of total aviation miles, measured in "revenue tonne kilometers" (RTKs), which translate into one metric ton of load (human passengers or cargo) per kilometer traveled.
Includes Interviews with Dutch environmental attorney Jos Cozijnsen and Arjun Patney, policy director of the American Carbon Registry.
Part One of a multi-part series examining the ways small Kenyan farmers are teaming up with multinational agribusinesses to confront climate change by reshaping the countryside. In today's episode, we meet Prisca Mayende, who ratcheted up yields on her four-acre farm by planting trees. We also visit the Kaptama farmers' cooperative -- a key conduit in the link between subsistence farmers and local grocery stores.
The United Nations Environment Program says that resources are a factor in 40% of all organized armed conflicts, but only 15% of peace agreements even mention them.
Today, we examine the role that carbon finance – especially REDD+ (reducing emissions from degradation of forests, plus other land uses) – can play in helping (or, if bungled, hindering) the peace process by stifling the use of blood diamonds and other conflict resources.
Canadian Environmental Consultant Art Blundell
Liberian Environmental Campaigner Silas Siakor
Saw Frankie Abreu, Director of Myanmar’s Tenasserim River and Indigenous People’s Network (TRIP NET)
Colombian Vice Minister of Environment and Sustainable Development Pablo Viera Samper
Kerstin Canby, Director of the Forest Policy, Trade, and Finance program at Forest Trends
In 2015, more than 150 countries endorsed the United Nations Sustainable Development Goals (SDGs), which are 17 goals to end poverty, improve health, and tackle climate change. They're broken into 169 specific targets, and billions of dollars in finance are tied to them.
In this episode of Bionic Planet, we hear why business leaders like Unilever CEO Paul Polman are building their corporate strategies on the SDGs, and why governmental leaders like UN General Secretary Ban Ki-moon and the Prime Ministers of both Norway (Erna Solberg) and Cote d’Voi (Daniel Duncan) see them as key to future development.
We also examine the interplay between the SDGs and carbon finance.
Companion article at ecosystemmarketplace.com/articles/voluntary2016/
Hello, and greetings from Cologne, Germany, where we’re wrapping up two intense weeks that began a few dozen kilometers north of us, in the former German capitol of Bonn, where climate negotiators have begun the process of activating the Paris Agreement. Unfortunately, that meant I got swamped, which led to an unplanned two-week hiatus on this podcast, and I do apologize for that – but if you’ve been following Ecosystem Marketplace, you know we haven’t been idle. Yesterday, we released our annual survey of the voluntary carbon markets, which takes stock of what individuals, corporations, and governments have been doing to offset their greenhouse-gas emissions until the Paris Agreement takes effect – which could happen as early as next year.
Earth. We broke it. We own it – and nothing is as it was: not the trees, not the seas, not the forests farms or fields, and not the global economy that depends on all of these. But we can restore it – make it better than it is – more resilient – more sustainable. But how? Technology? Geoengineering? Are we doomed to live on a bionic planet, or is nature itself the answer? That’s the question we explore each week on Bionic Planet, a podcast of the Anthropocene – the new epoch defined by man’s impact on Earth. Today, our focus is voluntary carbon markets.
Green-minded companies use them to reduce their carbon footprints by offsetting those greenhouse-gas emissions that they aren’t able to eliminate by, say, re-tooling their factories or switching to renewable energy. Individuals use them as well – often to offset their travel emissions – as do governments.
New research from Ecosystem Marketplace shows that these three groups used voluntary carbon markets to reduce emissions by about 84 million tons of carbon dioxide last year alone, but the real story isn’t the volume – which is still too small to change the world – but rather, how those offsets are used in ever-more complex and effective emission-reduction strategies.
That’s my Ecosystem Marketplace colleague Kelley Hamrick, who spent a good chunk of the last six months on the phone with thousands of carbon market participants cobbling together the latest “State of the Voluntary Carbon Markets” report, which is entitled “Raising Ambition” to reflect the ever-increasing emission-reduction targets embedded in the Paris Agreement.
You can download the report at ecosystemmarketplace.com/articles/voluntary2016/ (repeat)
Voluntary carbon markets provide a way for companies to reduce their overall emissions by, say, saving endangered forests, or planting trees, or financing the construction of wind farms. They’re not to be confused with “compliance markets”, which are imposed under a cap-and-trade regime like the one in California.
If you heard our two earlier episodes focused on the need to create a price on carbon, you know the goal of such a price is to force companies to reduce the amount of greenhouse gasses they pump into the atmosphere. Voluntary markets are different – they’re not so much an “incentive” as they are an “enabling mechanism” – because companies and individuals that use them aren’t doing so to comply with the law, but to do the right thing.
In fact, our research shows that companies that buy offsets are usually also the ones that have already done the most to reduce their emissions internally – and they’re using offsets to get to zero net emissions – or at least try to. Offsetting, in other words, is almost never a stand-alone strategy, but rather one component in a larger, more involved emission-reduction approach.
I had a brief chat with Kelley right after she posted the report, and asked her how voluntary offsets usually fit into a company’s emission-reduction program.
So, who are the buyers? Ultimately, they’re companies that want to reduce their greenhouse-gas emissions, but sometimes they’re brokers as well, and they can also be a new breed of consultancy that helps manage emission-reductions. Let’s meet some now.
Did you hear what he said about price? If you heard our cost of episodes on the need for a price on carbon, you know that 3.3 dollars is nowhere near the “social cost of carbon” –or the damages that carbon dioxide causes once it’s in the atmosphere.
Now, I know what I said before – about voluntary carbon offsets being an enabling mechanism more than an incentive, and that’s true, but one way they enable companies to reduce is to create an “internal price” on carbon – a price companies can use to push greenhouse-gas emissions into the corporate consciousness. That just doesn’t happen at $3.3 per ton, so lots of companies buy low externally and then sell high internally – but that leaves another problem: most emission-reduction projects simply aren’t viable at $3.3 per ton.
Now, there are plenty of reasons the price is so low: it’s mostly because prices reflect political will, and political will has been pretty pathetic until last year, but it’s also because the offsets sold last year were created earlier, so there was an oversupply, and it’s because larger transactions can get away with a lower price. Ultimately, however, a price this low just isn’t sustainable – but there’s a sense that will be changing after Paris, in part because there are so many other initiatives underway outside of and tangential to the Paris Agreement.
CLIP: William Theisen EcoAct – 1
So – sustainable development goals, science-based targets, and carbon pricing – we’ve covered carbon pricing a bit in our previous editions of Bionic Planet, and we’re far from finished with that rabbit hole, while we’ll be covering the sustainable development goals in the coming week, so if you’re not familiar with them, be sure to subscribe to Bionic Planet or check back soon.
CLIP: William Theisen EcoAct – 2
The gist is that more and more companies are responding to demands for carbon neutrality, and while many start out by just offsetting, they soon weave offsetting into a broader emission-reduction strategy.
CLIP: William Theisen EcoAct – 3
It’s a theme that emerged over and over again at Carbon Expo, but one often lost on most observers and the media: carbon offsetting isn’t a “distraction” as some like to say, and it isn’t a way for companies to “buy their way out” of their obligations. Instead, it’s a tool that helps get companies and customers and suppliers all pointing in the same direction, as Danielle Spiesmann of DHL makes clear.
CLIP: Daniele Start
DHL’s GoGreen initiative is worthy of an entire program, and if I have the bandwidth to deliver, I will, because it involves a complete restructuring of the company’s transport system, but one that uses carbon offsetting to drive awareness – and it’s hardly an exception. Companies like Unilever, Marks&Spencer, Microsoft, and General Motors have all used voluntary carbon markets to drive down emissions and raise awareness at the same time.
CLIP: Daniela 2
That about wraps up today’s show – but we’ll close with a segment we call:
We’ll always have Paris, as in the Paris Accord – which was woven throughout today’s program, so rather than do my usual breakdown of some obscure element, I’d like to introduce you to Laurence Tubiana, the French Climate Ambassador who may be the next head of the United Nations Framework Convention on Climate Change. Here is her summary of the two weeks of talks that just wrapped up in Bonn. It’s fairly dense, and if you don’t understand all of it, don’t worry – just keep listening to us, and soon it will all be quite clear.
We covered the Bonn talks in a bit more detail at ecosystemmarketplace.com/articles/bonn2016/
And, to download your copy of the State of the Voluntary Carbon Markets, visit ecosystemmarketplace.com/articles/voluntary2016/
The US government estimates that every ton of carbon dioxide emitted into the atmosphere generates at least $40 in damages by contributing to climate change, but the Swedish government says the figure is closer to 100 euros, and it charges a tax to reflect that. Our guest, Gernot Wagner, says both figures are way too low. Today, he explains how economists blend climate science with financial accounting to come up with a price on carbon.
Plus: What's more effective -- cap-and-trade, or a carbon tax? We offer a primer on that debate.
Tanzania's Hadza people have lived in tune with nature for 40,000 years, but now they face their greatest challenge. Here's how they're both adapting to and combating climate change -- and how we can all learn from them.
Includes interviews with tribal leader Richard Baalow, Tanzanian legal expert Edward Letaika, and environmentalists Marc Baker of Carbon Tanzania, Matt Brown of The Nature Conservancy, and Gus Silva-Chavez of Forest Trends.
We also examine the evolving nature of REDD+ (Reducing Emissions from Deforestation and Degradation) in the United Nations Framework Convention on Climate Change (UNFCCC) and in the voluntary carbon market.
The Argument For a Price on Carbon: Part One.
Featuring Harvard Economist and "Climate Shock" co-author Gernot Wagner, with Canadian Prime Minister Justin Trudeau, Chilean President Michelle Bachelet, and Ethiopian Prime Minister Hailemariam Desalegn, as well as a special appearance by the ghost of Nobel Laureate Milton Friedman.