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v) Promoting sustainable development, green growth and the fight against climate change:

from MEXICO’S to Russia’s PRESIDENCY OF G-20View from Russian NGOs

Dr. Evgeny Shvarts,

WWF Russia

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кCivil G20 Meeting in Mexico, 23.02.2012Civil G20 Meeting in Mexico, 23.02.2012

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Russia’s Presidency in G20 (2013) and G8 (2014)

We are not beginners in the process

• 2006: Civil G8 Summit in Moscow;

• 2010: G20 Global Marine Environment Initiative (President D. Medvedev, Toronto – Seoul – Paris), implementation on regional and national levels (Arctic Council; draft of Russian Oil Pollution Act, Presidential orders);

• 2011-2012: Green Tax Reform – Fossil Fuel subsidies studies

From Mexico’s to Russia’s: G20 Presidency: similarities and differences

Similarities:

State owned oil companies;

Population is suspicious to Anglo-Saxon version of private property on natural resources and land as tools to solve all economic problems

Russian specific:-Around 70% of export – oil, gas, minerals,

-Around 34% of GDP – oil and gas sector;

-Do you know what means “Green Growth” model for Russia?

-No one FI are members in international voluntary sustainability mechanisms of FI (EP, UNEP FI, UN PRI, CDP etc);

-2,5-3,5 times less energy efficiency (CO2 per 1$ GDP) than in EU and NA;

-39-42% of potential increase of Energy Efficiency – in housing

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Redirecting fossil fuel subsidies

The G20 took the lead in eliminating fossil fuel

subsidies at the Pittsburgh Summit in 2009, but

countries have not yet fully implemented this

reform.

The billions of US dollars that can be saved

from these reforms can then be reinvested into

renewable energy access for all, directly

supporting healthy lives and modern economies

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Redirecting fossil fuel subsidies

towards protection of Arctic and

utilization of associated oil gas

Targets:

•“Second breath” for G20 GMEI;•Stop arctic oil drilling before “Three gaps” (knowledge, response and technologies) will closed;•Utilization of 95% associated oil gas

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Oil and gas expansion in Arctic during nearest 10-20 years (red lines)

Estimated flared volumes from satellite data

• 35,2

15,211,3

9,15,4 4,1 3,8 3,8 3,7 2,8 2,5 2,3 2,1 2,1 2,1 1,9 1,9 1,8 1,8 1,5

20,0

0

5

10

15

20

25

30

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

%

Bcm

Estimated flared volumes from satellite data, 2010 (bcm)

Share of global flaring level, 2010 (%)

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The sustainable management of natural capital and the

critical ecosystems that support life on earth

The sustainable management of natural capital requires that its value is

properly accounted for and reflected in national accounts and corporate

balance sheets

Tasks:

•G20 to support the best international voluntary environmental standards

as the base for honest and even global competition and as a base for new

generation o of sustainability indexes (FSC, MSC, ASC, sugar cone,

coffee, palm oil etc);

•Accounting and transparency of CO2 Emissions;

FSC certification in Russia

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Innovative financing for climate change and biodiversity

Mexico showed great leadership in helping to set up the Green Climate

Fund to help developing countries reduce emissions and adapt to the

impacts of climate change.

•Market-based mechanisms on international maritime and aviation

transport as funding sources for the Green Climate Fund.

•Financial Transaction Taxes as potential for investing in climate

action, biodiversity protection as well for the funding of news measures

emerging from Rio+20

•Support and promotion of TEEB agenda and payments for

Ecosystem Services – direct payments for protection of the most

important natural landscapes and ecosystems, especially transboundary

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From Financial Inclusion to Global Responsibility of Financial Institutions:

Targets:•State owned development FI (including sovereign funds?) should set up the same environmental and social requirements in their Policies and Procedures as WB/IFC Group and RDB (EBRD, ADB):

- Project categorization, public EIAs with fixed periods of complains, participation and protection of stakeholders;

- Compliance mechanisms in place;

•“The Equator Principles” FI should adopt regular “independent third party audit” for membership continuation(IFI and State regulatory financial authorities should recommend it);

•WB/IFC and RDBs: Mandatory requirement of countries membership in EITI for any mining project financing;

•Mutual funds with high level of environmental responsibility of investments policies – as potential source as financing for “green growth” in oil and gas producing countries

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Green Growth and Market Transformation issues

•Commodity Markets Subgroup of the Energy and

Commodity Markets Working Group, within the Finance

Track (???) - Sustainable commodities (FSC, MSC, ASC,

etc) have less price viability);

•Green growth is a transversal topic that will be taken into

account in all the above mentioned priorities.•Role of BRICS in financing sustainable development and climate change;

•the Development Working Group deal with sustainability

criteria for infrastructure planning and execution (???)

© WWF России / Владимир Филонов

Do you follow the best international standards and

practices? If not – we come for you!

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