FOURTH SESSION OF THE UNFCCC CONFERENCE OF THE PARTIES (COP4)

Buenos Aires, Argentina, 2 al 13 de Noviembre de 1998.

At the COP4, the BCSD-LA announces its publication Global Climate Change: The Private Sector Challenge in Latin America, which shows the desire of the Latin American business establishment to become involved in the global effort to seek solutions to the problem of climate change.

In this book, the region's business leaders respond to queries such as: What challenges does climate change pose to Latin America? How can the business community offer its leadership to help solve a global problem? In this manner "Global Climate Change: The Challenge of the Private Sector" demonstrates an unprecedented and coordinated Latin American proactivity through discussions on topics of global interest.

Also, it is recognized that the challenge of climate change obliges coordination among governments, international organizations and the private sector, starting with the generation of viable energy efficiency and eco-efficiency projects. It also proposes effective options for realistic and practical actions related to climate change through the mechanism for clean development and negotiable permits.

The book provides an agenda for the private sector, which provides the possible procedures in how to implement the Kyoto’s Protocol mechanisms and methodologies. For the first time, the private sector, in a developing region, makes a voluntary commitment to become part of the solution to the problem any international regime obligations.

This business commitment is expressed by the following criteria and basic proposals:

  GLOBAL CLIMATE CHANGE: THE PRIVATE SECTOR CHALLENGE IN LATIN AMERICA

CRITERIA AND BASIC PROPOSALS

  1. The challenges posed by climate change are requiring an unprecedented effort for coordination and institutional development among governments, international organizations and the private sector. This effort should be guided by principles of cost effectiveness and efficiency, as well as by criteria of shared but differentiated responsibility among countries.
  1. The Annex I countries of the Framework Convention on Climate Change will be fulfilling their commitments through different policies and instruments they will be using within their own countries and economic structures. However, they also need to have broad opportunities for compliance through joint projects with developing countries by using the Clean Development Mechanism (CDM).
  1. The CDM and trade in negotiable permits represent the most efficient option for reaching global objectives in the area of climate change. They should create a broad, transparent market for rights, governed by clear, simple rules to minimize transaction costs, facilitate bilateral arrangements and enable public and private initiatives to be supplemented. They also need to operate with autonomy and flexibility, without becoming a pretext for the creation of huge international bureaucracies.
  1. The CDM requires a design that will allow private companies to engage in projects and to trade emission rights either directly or through their governments as intermediaries.
  1. There is a need for carbon absorption projects in the forestry sector to be included within the CDM, involving commercial plantations, reforestation and environmental restoration. Within this context, Latin America can provide a considerable added value represented by the conservation of its natural treasures.
  1. The concept of having additional features in projects involved in the CDM should not be any excuse for blocking or hindering investments, nor for creating uncertainty or discretionary limitations on private and public mitigation initiatives.
  1. Reliable and efficient systems for standardization and accreditation and certification are required, which instead of inhibiting the development of projects through the CDM, would encourage and facilitate it. It will be necessary to establish private certification systems that are equivalent or similar to those currently existing in the international setting.
  1. The countries of Latin America should participate in the CDM by individually and voluntarily assuming domestic energy efficiency and/or carbon efficiency initiatives (considering their agricultural and livestock sectors). This would be achieved through programs for privatization, deregulation, elimination of subsidies and creation of markets that do not restrict their capabilities for expansion and sustained growth. Within this context, Latin America finds significant opportunities for international cooperation and contribution to global climate efforts, as well as for financing environmental projects.
  1. New studies and research need to be done to document the climate change phenomenon in a more objective fashion, as well as its environmental, social and economic costs and solutions. A solid base of information needs to be built on ecoefficient projects, examples and practices, in addition to a data base that would enable the development of reliable emissions inventories for the region. This will enable emissions from activities related to the agricultural and livestock sector and the rest of the gases included under the Kyoto protocol to be accounted for through strict methods.

The individuals, companies and organizations members of BCSDLA and its Network are backing this proposal.

Available soon for download the document “Global Climate Change: The Challenge of the Private Sector in Latin America”, publication by the BCSD-LA and the Interamerican Center for Sustainable Development (today INNOVA Center for Sustainable Development), 1998.