As the climate change conference in Durban enters its final days, it seems clear that as expected, there will be no new treaty to replace the Kyoto Accord that runs out in 2012. The economic crisis, political differences, and conflicting priorities in addressing climate change have been the persistent themes.
“The ultimate goal of a comprehensive and binding climate change agreement may be beyond our reach—for now,” conceded United Nations Secretary-General Ban Ki-moon in a statement on Tuesday.
But while international coordination remains elusive, Ban did point out that governments, businesses, and individuals are nonetheless moving ahead.
However, many in the green economy sector hope that governments can still provide the legislative incentives to help the industry keep moving forward.
Yvo De Boer, the former U.N. climate chief who presided over the Copenhagen summit in 2009, wrote in a briefing for the business community ahead of Durban, that a business-friendly response to climate change is “vital.” De Boer now works as an adviser on climate change and sustainability for KPMG, a network of professional service firms.
In the publication, “Sustainable Insights,” De Boer observes that little was mentioned about the role of business in the documents from the last round of climate change talks in Cancun in 2010.
He writes, “Governments must give companies and investors the confidence they need to ensure they can play their part.”
Matt Horne, climate change director of the Canadian-based Pembina Institute, agrees that legislation is essential since the trend has been that private business only acts in response to government policies.
Of course there are examples of proactive companies, but most businesses simply have not been given the opportunity yet, with the right kind of incentives.
“When the policies are in place, you can harness the creativity of the private sector and get better solutions,” he said.
The problem, says Horne is that generally, governments will not be able to afford the kind of money that would bring change on the scale that’s needed. In that case, the private sector will have to pick up the tab.
The green climate fund, one of the few areas where progress may be made during Durban, will have to be funded in part by private businesses. Small carbon fees on international aviation may be one such initiative.
Horne says business is often perceived as not being supportive of making environmental changes, when in fact they are. The issue is that they need to be more proactive at telling governments what kinds of policies they need.
“Lots of businesses are happy to say ‘Climate change is an important issue and we have to find a solution.’ They tend to get much more quiet when you start talking about specific solutions,” he said. “They should weigh into that debate in a constructive and nonpartisan way.”
In some cases, companies are big enough to tackle things on their own. Multinational giant Unilever, for example, has set ambitious goals for itself. It wants to halve the greenhouse gas impact of their products and sourcing all agricultural raw materials sustainably. They are looking at transportation, energy use, and manufacturing, as well as trying to influence consumers of their shampoos and detergents to use less water, something they say on their website they'll have to find ways to engage with their consumers to achieve.
For smaller businesses, however, some have found that they can do better if they get together.
In California, which is historically progressive on environmental issues, the California Business Alliance for a Green Economy is seeking to amplify the business voice in support of better policies on cleaner energy, less fossil fuel dependence, and avoiding climate change related problems.
The latter may become very costly for the state in the future. According to a 2008 UC Berkeley study, climate change could cost the state $47 billion per year in direct damages. Conversely, investing in green technology will create job opportunities and growth.
Business Alliance Director Susan Frank says that although some businesses are ahead of the curve, “more often than not, it is policy that drives the change.” For example, government incentives have been critical in pushing ahead electric vehicles and solar powered technology.
Coalitions of this kind may also be the way forward for businesses to communicate more effectively with governments, says Frank.
“Businesses continue to improve when it comes to communicating what is beneficial for their business models. This wasn’t always the case. Fortunately with large associations like Silicon Valley Leadership Group, CleanTECH San Diego, Bay Area Council, and other business associations and progressive chambers of commerce, they are able to communicate with legislators and regulators in a more coordinated manner.”
