World Business Summit on Climate Change
Toespraak van minister Cramer tijdens de World Business Summit on Climate Change in Kopenhagen op 25 mei 2009.
Good morning. It is an honour to be here with you today. First, let me thank the World Economic Forum for providing this platform for our discussion today.
Ladies and gentlemen, let me get straight to the point. Climate change presents an enormous challenge for everyone. Governments and companies alike. Cooperation is crucial! In this session, I want to focus on our mutual roles.
First some words on us, politicians. This coming December we will meet here again. Then all ministers will have to reach a solid global climate change agreement. That means binding reduction targets. And, to fund it, a solid financial foundation. We all know that acting now is much cheaper than waiting until tomorrow. Nothing less than a huge financial flow is necessary. This will be based on three principles, agreed upon last December in the Poznan summit: efficiency, effectiveness and equity. Within the next seven months, governments only have to fill in some minor details: who pays what, how and to whom?
This is the main issue for governments, but it is only modest compared to the challenges business is facing. As secretary general Ban Ki-moon pointed out yesterday, it is the market that has to fund the vast majority of the climate mitigation effort.UN officials reckon that companies, you guys, will have to contribute about 85% of the costs.
How can we achieve this? In my view, the long term goal is indisputable. We have to include pollution in the global economic equation. We need nothing less than a single, good working, worldwide carbon market.
At present, there are several countries with such a market, like New Zealand. There are also large groups of countries that have commonly set up an emission trading system, like the European Union and a large group of US States.
We need to expand these initiatives to a single, global carbon market. Why? Easy enough. It is like with single currencies and free trade zones. Companies need transparent, uniform market mechanisms to flourish in a globalized world. A single carbon market is in the best interest of business.
How do we get there? Rather sooner than later, OECD countries should join a single carbon market. However, on short term we can't expect developing countries to enter the same system.One reason for that is that the CO2 price should remain stable and high enough. For this transition phase, we need different approaches.
For advanced developing countries, we should set up national or regional carbon markets. And focus on key sectors, such as energy intensive industries. Tailor made markets, that take into account national circumstances and that still contribute to the reduction targets.
With regard to the least developed countries, the Clean Development Mechanism is in place. In these countries, the developed world can invest and bank part of the reduction credits. In the near future, this CDM should be continued and improved. More insight in efficiency and environmental performance is essential. And we need a shift from a project based to a programmatic or countrywide CDM.
Another issue is the transfer of innovative technology towards developing countries. We´re in a deadlock situation here. Developing countries say show us the money. Developed countries reply show us the action. In my view there is only one way out. We need to link finance to sound low carbon development strategies and to solid national adaptation strategies. This way, developed countries have value for money. Developing countries will have easier access to funding. With this in place, business opportunities open up and companies will step in.
Ladies and gentlemen,
I briefly presented to you some of the steps we have to take towards a single, worldwide carbon market. In this process, companies are crucial. I regularly discuss these issues with my fellow politicians in the developing countries. In these talks, I can only rely on my own eloquence and on the receptiveness of my counterparts. You business leaders bring something else to the negotiating table. Something that ´s probably a lot more convincing to my colleagues. Let me make an appeal to you. You have business contacts all over the world. Use them to champion the carbon market.
I like to propose to set up an ad hoc taskforce, with business representatives, ministers and NGO's, to further outline road to a single carbon market. Let's make sure we draft a joint proposal before December.
Thank you for your attention.