20140123_CE

Source: World Economic Forum

URL: http://www.weforum.org/events/world-economic-forum-annual-meeting-2014/player?p=1&pi=1&a=53591

Date: 23/01/2014

Event: Leading the Global Climate and Energy Agenda

Attribution: World Economic Forum

People:

• Ban Ki-moon: Secretary-General of the UN
  • José Manuel Barroso: President, European Commission
  • John Heilprin: Chief Correspondent, Switzerland, Associated Press
• Jim Yong Kim: President, The World Bank
  • Richard Samans: Managing Director, World Economic Forum

Richard Samans: Welcome to the press conference on leading the global climate and energy agenda. We're privileged to have with us, this afternoon, United Nations Secretary-General Ban Ki-moon, President of the European Commission José Manuel Barroso and President of the World Bank Jim Yong Kim. With that, I'd like to invite the Secretary-General to make some opening comments.

Ban Ki-moon: I'm first? Okay... President Barroso, President Jim Yong Kim of World Bank. Good afternoon, ladies and gentlemen. I'm pleased to be in Davos and that so much attention is being placed on the issue of climate change. The European Commission has announced an ambitious proposal, with the economy-wide CO2 emissions targets of 40% by 2030 and the renewable energy target of at least 27% by the same date. I commend the leadership of President Barroso of the European Union. The European Union has set the standard that all need to follow.

We are now at a critical stage in the global conversation on climate change. The global agreement to be concluded in 2015 offers us an opportunity to limit global temperature rise below two degrees Centigrade, and underpin our press [?] for global sustainable development. In September I'll host a climate summit in New York. I'm asking government, business, finance and civil society to come with a bold announcement and actions, because achieving an ambitious and legal climate agreement will require political leadership and clear signals.

My intention is to provide a high-visibility platform so that those who are ready to lead can do so. I want to spur a race to the top. I want all leaders to be inspired and to define what they each can bring to the table. With this announcement, the European Commission has set the ball rolling. I urge European Union leaders to put their full support behind this transformational proposal. I hope by the time of the summit, we can celebrate the adoption of the Commission's proposal into law. I also hope the Commission's leadership will motivate all countries to aim high and come to the summit with their own bold announcements. Thank you.

Richard Samans: Thank you, Mr. Secretary-General. President Barroso.

José Manuel Barroso: Mr. Secretary-General Ban Ki-moon, President Kim of the World Bank, ladies and gentlemen. First of all, Secretary-General, thank you very much for your kind words that are for us a great encouragement. Indeed, the European Union continues to be a pioneer for global climate action.

As you know, we are already committed to reduce our greenhouse gas emissions by 80-95% below 1990 levels by 2050. We have adopted the world's most ambitious and binding goals for 2020, and we are on track to meet them. And just yesterday, 22nd January, the European Commission proposed an ambitious climate and energy package for 2030, with a binding 40% CO2 reduction target to be reached by 2030, and a special European Union target of at least 27% for renewable energy. It is clear that Europe will continue to lead and contribute its fair share to global climate action, this defining challenge of our time.

This high level of ambition and leadership - we must recognise it - is in our own economic interest. We are spending too much on importing costly fossil fuels from abroad, around one billion euros a year. This package will also increase the competitiveness of European industry, boost innovation and demand, create jobs, attract investment and increase energy security.

Let me say that I also understand the concerns of those around the world, that fear that such an accent on climate may have problems for growth - I know the concerns of some of the major economies and also developed economies that are now a little more reluctant to go ahead, because of the impact of the economic crisis. But let me tell them that there is no contradiction between growth and ambition in climate change. The European Union has already proved that reducing emissions can go hand in hand with economic growth. In the last 22 years, after 1990, our emissions have gone down by 18%, while GDP has risen by 45%. So I think there cannot be a better demonstration of this compatibility with growth.

This is a powerful signal to the rest of the world, and shows that we are beyond the debate, where we had to be either green or a defender of industry. So I call on all our partners, globally, from developed countries to emerging economies, of course to developing world and especially on big emitters, to come with us and to respond also to the clear appeal of Secretary-General Ban Ki-moon. This - one of the reasons why we have presented these proposals just yesterday - I mean now - is precisely to help the international, global debate.

Erm, in 2015 France will host a key United Nations climate conference in Paris, COP21. Already, this September, Secretary-General Ban Ki-moon will host a leaders' summit in New York, which I will attend. And I applaud his leadership in the climate cause, and I can tell you how I know well there's a very strong ally as President Kim of the World Bank. I thank him as well. This summit in New York will be a further stepping-stone towards an ambitious, binding global climate agreement in 2015, and an agreement which we hope will cover all emitters. The European Union will make its first contributions to this in Spring 2015, as foreseen, and I sincerely hope that our global partners will be with us in an equally ambitious and determined manner.

Addressing climate change is not simply an option, it is a must. And it is in the interests of everyone, environmentally, economically and politically. Thank you for your attention.

Richard Samans: Thank you, President Barroso. President Kim.

Jim Yong Kim: Thank you very much. It's great to be here with the Secretary-General - I applaud his leadership. I especially want to draw attention to the leadership that President Barroso has shown, in reaching this agreement, and we all have to remember that the member organisations of the European Union have an extremely diverse set of views on this particular issue, so his ability to bring the Union together, I think, is a very important signal for all of us.

A year ago, I said that this meeting, we needed a plan for tackling climate change, a plan fit for the challenge that we face. A year later, we have seen great leadership on climate, from countries and companies, but emissions are still rising and the poor are still suffering. We don't have a plan yet, and the bits we do have are not equal to the size of the challenge.

The UN Secretary-General has called for a leadership summit, and we all should be very grateful for having done so. This gives us the opportunity to organise our collective leadership. This is the year to take action on climate change. No more excuses. If we fail, our children and grandchildren will ask us why we didn't act when it was still possible to do so. We need leaders who are not thinking about short-term returns or election cycles. We need leaders who are thinking foremost about taking care of the most vulnerable in this generation and the generations ahead.

The good news is that there is action we all can take to turn economies around, so they are investing in what is clean and healthy, and there are innovations that will bring future growth, jobs and competitiveness. Through policy reforms, we can divest and tax that which we don't want, the carbon that threatens development gains of the last 20 years.

First things first. Many have called for a price on carbon. Now we must act. Governments must put a price on pollution. Putting a price on carbon, through either taxes or market-based instruments, is key. Can we be ready, by September, to set target dates for implementation? We should set performance standards for buildings, cars, appliances, transport systems, and drive efficiency to encourage investment away from high-carbon growth and toward innovation and cleaner, greener growth. We've called for a phase-out of harmful fossil-fuel subsidies.

Act now. The 1.9 trillion dollars in subsidies can be redirected to support investment in clean growth. The challenges - this challenges the notion that responding to climate change is not affordable. Financial regulators need to lead, as well. Sooner rather than later, they must address the systemic risks associated with carbon-intensive activities in their economy, made clear of course by price signals. Start now by enforcing disclosure of climate risks, and requiring companies and financial institutions to assess their exposure to climate-related impacts. The so-called long-term investors must recognise their fiduciary responsibility to future pension-holders who'll be affected by decisions made today.

Corporate leaders should not wait to act until market signals are right and national investment policies are in place. Be the first mover. Use smart due diligence. Re-think what fiduciary responsibility means, in this changing world. It's simple self-interest. Every company, investor and bank that screens new and existing investments for climate risks is simply being pragmatic. The release of the Green Bond Principles this month is welcome, but we need to seize the opportunity, one that many financial leaders have been calling for. Let's use appetite for green bonds to expand the universe of investors who are investing in green assets, and let's create demand for those assets faster.

Can CEOs and energy infrastructure and agri-business come to New York in September with their green bond issue in hand, or under way? And institutional investors should commit to purchasing specific significant amounts of green bonds for their portfolios. So, as a first step, we should aim to double the green bond market and reach 20 billion by the September summit, and at least 50 billion by the time of the Paris meeting.

In the face of the science, and the risks associated with climate volatility, and the social volatility of inequality, the question isn't why we should act but rather it's why aren't we acting. We have to help poorer countries in this transition. We have to reduce the risks of low-carbon investments, especially in developing countries. But we can do it. Development - development finance institutions can leverage their capital and use the Green Climate Fund to reduce the risk in catalysing new investments and resilience.

Finally, to heads of state: announcing your commitments to capitalise the Green Climate Fund at the time of the SG's - the Secretary-General's - summit will build trust and important momentum. In 20 years, all of us will be asked the question: "What did you do to fight climate change?" The leaders here in Davos, both from the private sector and from governments, have it in their power to act in substantial ways. Now is the time to act, for future generations, before it's too late. Thank you.

Richard Samans: Thank you, President Kim. Indeed, 2014 is a crucial year for engagement on climate change. And I just want to note, in moving to questions, that there are over 30 different sessions, both public and private, on many different practical aspects of what could be done to prepare the ground for a successful mobilisation of both policy and action in 2015. The floor is now open. Please simply identify your publication or your affiliation before asking your question on climate change and energy. Questions... Yes.

John Heilprin: John Heilprin, Associated Press. I apologise, because I have a very keen interest in climate change but I have to ask the Secretary-General about the Syria talks - what the prospects are for peace, there -

Richard Samans: I'm sorry -

John Heilprin: - and Iran's participation, here.

Richard Samans: - we've - this is a press conference on climate and energy. There'll be other opportunities to ask questions about other matters, such as Syria. Thank you for understanding. Questions... about energy or climate, the agenda here, this week. If not...

José Manuel Barroso: Silence means enthusiastic support! [Laughter among the speakers.]

Richard Samans: Yes, right here in the front. Right here.

Man 1: My name is [inaudible] from the Swiss Public Radio. I wanted to ask: what has changed, in the discussions, since 2006 to now? In between, there was just a crisis mode, here in Davos. What has changed significantly, in the talks that you attended here, at the WEF?

Ban Ki-moon: For me?

Man 1: Yeah.

Ban Ki-moon: This climate change issue has not been seriously tackled before 2006 or 2007. Er... Since I became Secretary-General, 2007, through the Bali Roadmap, the international community has been paying much heightened attention and commitment. And we made a quite historic milestone in Bali Roadmap. Then it went on, then finally, in Durban - Cancun, Durban and Doha.

Member states have agreed that there should be a global, legal climate agreement by 2015. This is a very firm agreement by member states of the United Nations. That is why we are - we have been working very, very hard. We have only two years - less than two years - left, now. One final - before we go - final meeting before we go to Paris will be in Peru, this year. Then, by the time, in Peru, we need to have concrete document, draft document, so that the member states will negotiate, on the basis of this document, which we hope will be adopted in Paris summit meeting, 2015, next year.

In that regard, to spur some actions and political will of the leaders, I have decided to convene a climate change summit meeting on September 23rd in New York. We have two proposes [sic] - the first, we have to raise much, much higher the political will, at the leaders' level. Now, this time, the leaders mean not only government but business communities and civil societies, and all - all the concerned parties - they should come with a bold commitment and actions. And second, through this summit meeting, I get to use this opportunity to catalyse actions on the ground. Many people may have, some jokingly, say "Well, this is going to be another talk-shop". But this is going to be actions summit, not talk summit - actions summit, which will generate much, much spur in the area of energy - sustainable energy - and mobilising climate financing and also promoting this resilient urban development, cities and transport and all these areas - there are many, many areas which we have discussed in Rio+20 summit meeting in 2012.

Reducing carbon and greenhouse gas, and having green economy, will put us onto sustainable path - that's the main propose. In that regard, European Union's announcement yesterday of reducing, targeting 40% of reduction of greenhouse gas emissions against 1990, is a very positive message. I hope this will be, you know, emulated by all the countries in the world. Our hope is that all this announcement and declaration and their commitment should be scalable one and replicable one, by other countries and other forms. That is why, with President Barroso and President of World Bank Jim Yong Kim, I am going to meet a lot of people - business leaders and government leaders - to use this Davos forum as the starting ground now - launching ground for this two-year campaign, yeah.

Richard Samans: President Kim?

Jim Yong Kim: Yes, let me just jump in, here. I think there are three main points that - there are three main things that are very different than they were before. First, there's political leadership. So the fact that the Secretary-General has made battling climate change one of his very top priorities is extremely important. But we also see changes in the United States, a much stronger commitment to tackling climate change and reducing greenhouse gas emissions. China has one of the most ambitious plans for reducing greenhouse gas emissions, an ambition that they need, given that they're the largest emitter. And then, President Barroso. So, the three top emitters - the European Union, China and the US - are all in a very different place, right now, than they were even two or three years ago. So that's the first thing, political leadership.

Second thing is the private sector. I see a completely different mood among private sector companies - CEOs of the largest banks in the world are talking to us - talking to me, particularly - about the possibility for green bonds and how they can use their capital to facilitate the movement toward renewable energy.

And finally, the technology's different, and it's changing all the time. Concentrated solar, for example, was a dream, several years ago, and now the possibilities are much better. And that's only going to accelerate, over time. But to get - to get the kind of investment in new technologies that we need, the market signals have to be very strong. And so the combination of commitments from the governments, and from leaders like Secretary-General Ban Ki-moon, and the new and growing approach of the private sector, the commitment of the private sector, I think will lead to the new technologies and we can begin the virtuous circle that we've all been waiting for.

Richard Samans: President Barroso.

José Manuel Barroso: Answering directly your question about the differences I see compared to other editions of Davos, one of them - I don't resist to say it - is that the European Union crisis is no longer at the centre. There is less talk about the concerns of Europe, because in fact our recovery has started, even if we have to do still a lot of work - I think now we have turned the corner.

Now, regarding climate change, also I think that now we have better conditions precisely because the last years, the minds of world leaders were much more focussed on the urgency of the financial crisis - and so it is true that in the last years, after Copenhagen, after other important events, there was less attention to the pressing, existential crisis of climate change. That's why I'm so happy with the leadership of Secretary-General Ban Ki-moon, putting in the agenda already in 2014, in this meeting he's organising in New York, this agenda, this topic, and that's why also yesterday the Commission already put forward proposals that are indeed ambitious, that now are going to be debated in Europe and beyond, as a contribution for the global conversation that we need.

So, 2014 is indeed the year. Why? Because we have this rendezvous in New York with Secretary-General Ban Ki-moon, we have the conference in Peru. And so that if you want to be ready for 2015, for the conference in Paris, where decisions - what can be really historic decisions - are going to be taken, it's now that we have to prepare them. Honestly, this is such a complex and ambitious matter, that we cannot only rely on the wisdom of leaders meeting at the last moment - it's the work that has to be done.

And for that, we - I think we - those who believe in this need to fight this cause, we have - we need two allies, at least. These are the allies I trust most. Science - because science is demonstrating that the climate change is indeed a threat with a huge impact on human life, and also on the economy. And, secondly, the public opinion. And for that, we count on the media. [Laughs.] Of course, respecting the freedom of the media. But the media should now, I mean, in my perspective also, give more attention to these issues, because this is the year where we need the countries and all the organisations of the world to focus, so that we can prepare an ambitious decision for 2015. This is the mood - the change in the mood - that I see, in some cases, and I hope to see, in some others.

Richard Samans: Thank you. We've reached the end of our time. I want to thank each of our distinguished leaders here, and wish everyone, including you, a good week, here in Davos. Thanks.