Board members from developing countries insisted that making a 2050 net zero goal a condition for accreditation to the fund breaches equity principles
The UN’s flagship climate fund has been gripped by fierce debate over what decarbonisation conditions should be imposed to developing nation organisations seeking to access funding.
It was close to 4am on Friday in the Green Climate Fund’s South Korean headquarters when board members brought the four-day virtual meeting to a close.
Besides the usual delays and procedural wrangling, discussions became heated when board members were asked to consider whether to renew the GCF’s partnership with the Development Bank of Southern Africa (DBSA).
At the heart of the issue was a disagreement between members from large emerging economies and richer nations over whether decarbonisation conditions should be imposed on organisations from developing nations seeking to access funding.
The GCF was created to help poor countries curb their emissions and cope with climate impacts. It depends on agencies like DBSA to deliver projects in poor nations.
Some board members from rich countries added as a condition for DBSA to be re-accredited that the bank adopts a 2050 net zero emission target across its portfolio, and an intermediate 2030 target, within one year of the accreditation being approved.
The bank, which currently has no fossil fuel exclusion policy, would have to demonstrate how it is shifting its loans and investments away from carbon-intensive activities.
But the move was strongly resisted by developing country members who accused developed nations of imposing a carbon-cutting pathway on poorer ones.
Wael Aboul-Magd, of Egypt, told the board the 2050 net zero goal was “a global aspiration, not a prescription to every country, and particularly not for developing countries”.
Board member Ayman Shasly, of Saudi Arabia, described the condition as “blackmail,” adding that the GCF was being “manipulated by [developed countries] pushing their own agenda onto the fund”.
Yan Ren, of China, agreed with Shasly that the condition did not respect the Paris Agreement’s equity principle of common but differentiated responsibilities that nations that became rich from burning fossil fuels should cut their emissions faster to allow poorer ones to develop.
“We should not impose conditions on developing countries to force them to achieve certain targets. There is no one size fits all on fossil fuels,” she said.
DBSA is a development finance institution wholly owned by the South African government with 60% of its financing directed to the rest of the African continent.
Oil Change International data shared with Climate Home News shows that between 2018 and 2020, DBSA supported gas projects with $270m in financing, compared with nearly $320m for wind and solar.
Some of the DBSA-backed projects included a gas power plant in Ghana and LNG production in Mozambique.
However, campaigners warned that poor transparency in reporting at DBSA meant the true figures could be higher.
Campaigners have directly called on the South African government to commit to stop funding fossil fuels through DBSA by ensuring the bank adopts a fossil fuel finance exclusion policy and increases financing for accelerating the clean energy transition.
Members from rich nations pushed back against calls to re-accredit DBSA without any conditions and the issue was postponed to a future meeting.
Stéphane Cieniewski, of France, said the conditions were “not unreasonable or excessive” and aligned with the Paris accord.
Lars Roth, of Sweden, one of the board members who requested the net zero condition be applied to DBSA, told the meeting the bank was “already working on and intended to approve” a 2050 net zero goal across its portfolio and would be making a formal announcement in a couple of months.
Meanwhile, the fund agreed to re-accredit the UN Development Programme for another five years, amid ongoing corruption investigations into two of its projects in Albania and Samoa.
Overall, the board approved $1.2 billion for 13 new carbon-cutting and adaptation projects – a record amount for a single board meeting.
This included $125m for the GCF to become an anchor investor in the creation of a global fund to support and de-risk private investment designed to protect and restore coral reefs around the world.
The Global Fund for Coral Reef will support companies investing in sustainable fisheries and aquaculture practices, coral farming, plastic waste management and water treatment.
But it will also promote ecotourism and the development of “sustainably-managed hotel resorts” and tourists activities such as “surf, diving, snorkelling and cruises”.
The proposal was submitted by Pegasus Capital Advisors, a Delaware-incorporated private equity firm. The fund is due to be rolled out in 17 countries and aims to protect 29,000 hectare of reef globally and create nearly 13,000 jobs.
Board members overwhelmingly backed the design of the project despite strong opposition from civil society members acting as observers at the fund.
“We are very concerned that instead of helping communities in reef ecosystems adapt from climate change impacts, this adaptation project will profit out of harming the reefs,” Erika Lennon, of the Center for Environmental Law, told the board.
Lennon described the absence of connection between funding surf, diving or snorkelling enterprises with safeguarding reef ecosystems as “woefully inadequate” and urged for investments in hotel resorts, cruises and shrimp farming to be explicitly excluded from the scope of the project.
She warned that reef-damaging practices promoted by the project risked damaging the GCF’s reputation.
The following story is about how one country responded to disappointing Doing Business scores to reform its rules and regulations for its own benefit. Would discontinuation of this instrument mean its non-availability to others?
The above image is for illustration and is of iStock.
How one country responded to disappointing Doing Business scores
On September 16, 2021, the World Bank discontinued the Doing Business (DB) report, one of its flagship diagnostic products. This action follows what the World Bank called “a series of reviews and audits of the report and its methodology.”
The DB report, published each year since 2004, was one of the World Bank’s most influential reports in recent years. Every autumn, people around the world would wait eagerly and, in some cases, with some trepidation, for its release. Over time, the reports increasingly attracted the attention of heads of governments who wanted to see their countries do well in the rankings.
When the DB report came out in 2015, the Indian government was disappointed. Soon after taking office in 2014, Prime Minister Modi announced his government’s intention to bring India’s ranking into the top 50 within a few years. Several reforms were carried out in the following months, which the Indian government hoped would put India on a trajectory of rapid annual improvements in the ranking. The 2015 report (officially called “Doing Business in 2016”, since the World Bank always gave the report a forward-looking title) indicated only a modest improvement in India’s rank, from 142 to 130.
The World Bank explained to the Indian government that while several reforms may have been enacted on paper, Indian businesses did not report feeling an impact on the ground. Some responded, “What reforms?”, while others heard about the reforms but had not seen improvement on the ground. The reforms could not be officially recognized until the private sector reported real improvements. The World Bank suggested that the government put in place feedback loops to provide real-time information from businesses on whether the reforms were being well implemented. The government, instead of whining further about the scores, started working on such feedback loops. For several regulatory reforms covered by the DB indicators, it started surveying businesses on whether they felt any reform impact on the ground.
From February 2016 to May 2017, the government carried out a series of business-to-government (B2G) feedback exercises and focus group discussions (FGDs) on how much the businesses were aware of the enacted reforms and their views on the quality of reform implementation. Nine B2G feedback exercises were carried out. Topics covered construction permits (three surveys each in Delhi and Mumbai), starting a business (two surveys), and trading across borders.
The exercises revealed several implementation gaps, some major and some minor. An example is construction permitting. A business survey carried out in Delhi in March 2016 revealed the following implementation issues: a) significant lack of agency coordination—architects still need to obtain approvals from up to 10 different agencies; b) some facilities for online payment were not properly implemented and certain fees were still paid manually; c) very low awareness of the online system among users; d) no way to track the status of an application; e) information lacking on documentary and other requirements. In other words, the reforms had not gone far enough to have impact on the ground.
This feedback exercise helped generate several recommendations to address the deficiencies. These were provided to the Municipal Corporation of Delhi (MCD), and most were acted upon. Follow-up feedback exercises in October 2016 and February 2017 validated these actions while generating additional recommendations for further improvement. A similar effort was made in Mumbai.
The impact of these efforts can be seen in the trends in India’s performance on the “Dealing with Construction Permits” indicator. In the Doing Business in 2016 report, India’s ranked 183 on this indicator. Thirty-three procedures were involved taking 191 days according to the indicators. Two years later, the number of days had come down to 144 with a modest improvement in the rank to 180. The more substantial improvements came the following year when the DB report published in October 2018 indicated a reduction in the number of procedures and days required to 18 and 95 respectively. Still a long way to go but enough to propel India’s ranking on this indicator to 52. While all this improvement cannot be attributed to the feedback exercises alone, it is possible to trace a substantial part of this improvement to actions taken as a result of these exercises.
The Indian government also recognized that the DB indicators did not cover many regulatory interfaces that created problems for businesses and that the indicator measures were based on conditions in just two cities, i.e., New Delhi and Mumbai. Thus, in parallel to its efforts on the DB front, the Indian government embarked on an ambitious regulatory reform program at the state-level covering all states and union territories in the country. A long list of regulatory reforms was identified covering several regulatory areas, and state governments were instructed to carry out the reforms. Called the Business Reforms Action Plan, the program started in 2015.
Progress was monitored through annual indicators that ranked states according to their performance on implementing the reforms. The first such indicators, published in 2015, did not take into account business feedback. However, seeing the usefulness of the feedback exercises carried out as part of the DB program, the government changed the state-level reform indicators in 2018 by making a substantial part of the indicator scores dependent on business feedback.
The powerful demonstration effect of such feedback exercises had touched individual state governments too. In 2018, four state governments, Chhattisgarh, Jharkhand, Orissa, and Rajasthan, expressed an interest in knowing why there was poor uptake of self-certification and third-party certification options provided in business inspection reforms carried out by these states. At their request, the World Bank carried out an independent feedback exercise that could help design corrective actions to improve uptake.
The Indian experience from 2016 onward is a good example of what the DB indicators can lead to if governments use them well. First, the government refocused its attention from reforms on paper to reforms on the ground. Second, it recognized the importance of consulting with the private sector, which knows best where the shoe pinched, and designed corrective actions based on the feedback. This iterative process helped improve reform implementation quality. Third, the government recognized that while the DB indicators were useful, they were not adequate to diagnose the myriad of regulatory issues that businesses all over India faced. Thus, the government embarked on a more comprehensive, state-level, reform program, and, inspired by the power of indicators, underpinned this program by a set of performance indicators. Finally, once the pioneering DB-related feedback exercises proved useful, they created a demonstration effect, first within the central government, which replicated such exercises for the state-level reform program, and then on individual state governments.
Hadi Khatib on AMEInfo of 18 September 2021 came up with this deep statement on the anxiety list for MENA entrepreneurs that is long, as is the one curing it
The anxiety list for MENA entrepreneurs is long, as is the one curing it
A research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region revealed anxiety has several facets in the minds of these leaders. But all of these insecurities have cures.
55% of startup founders said that raising investment has caused the most stress.
More than 95% of entrepreneurs view co-founders as family members and/or friends.
Research finds that entrepreneurs are happier than people in jobs.
EMPWR, a UAE-based digital media agency dedicated to mental health and an exclusive mental health partner for WAMDA and Microsoft for startups, published a research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region.
The research indicated that startup founders undergo higher levels of stress than the rest of the region, with twice the likelihood of developing depression issues.
55% of startup founders said that raising investment has caused the most stress; the pandemic was the second most-cited reason cited by 33.7% of respondents. 44.2% spend at least 2 hours a week trying to de-stress.
Other insights, uncovered by the report, include:
A good relationship between co-founders can help startups navigate the pandemic-hit market. More than 95% of entrepreneurs view co-founders as family members and/or friends
Many entrepreneurs live well below their means to fund their ventures, leading to stress that is detrimental to their health
With only 2% of healthcare budgets in the MENA region currently spent on addressing mental health, the impact of the COVID-19 pandemic on young entrepreneurs and achievers could lead to an economic burden of $1 trillion, by 2030, according to the report.
EMPWR’s MENA partners shared special offers on their mental health services for the region’s entrepreneur community.
From Saudi Arabia:
Labayh is offering the technology ecosystem a 20% discount on their online mental health services for 2 months. Promo code: empwr, with the offer valid until October 29.
O7 Therapy are offering 50% off their online mental health services, for 50 Entrepreneurs in the MENA region. Promo code: Entrepreneur50, valid until December 1, 2021.
From the UAE:
My Wellbeing Lab is offering 20 one-on-one coaching sessions to entrepreneurs that wish to be coached and helped; alongside unlimited access for any entrepreneur to their “Discovery Lab”, a platform that gives entrepreneurs and leaders insights into their mental wellbeing as well as their teams. Promo code: MWL21.
Takalam is offering 10% off for 3 months. Promo code: Impact.
Mindtales is offering the MENA ecosystem 50% off their services for one month. Their App can be downloaded here.
H.A.D Consultants is offering 20 one on one coaching sessions to entrepreneurs. Promo code: HAD_SME01.
Nafas, a meditation app focused on reducing stress, anxiety, and help with insomnia, is offering access to its platform. Register as a user via this link to redeem benefits.
Entrepreneurs’ mixed emotions
Entrepreneurs must grapple with uncertainty and being personally responsible for any decision they make. They likely have the longest working hours of any occupational group and need to rapidly develop expertise across all areas of management while managing day-to-day business.
Work on the economics of entrepreneurship traditionally assumed that entrepreneurs bear all the stresses and uncertainties in the hope that over the long term they can expect high financial rewards for their effort. It’s false.
2. Highly stressful, but…
High workload and work intensity, as well as financial problems facing their business, are at the top of the entrepreneurs’ stress list.
But some stressors have an upside. While they require more effort in the here and now, they may lead to positive consequences such as business growth in the long term. Some entrepreneurs appear to interpret their long working hours as a challenge and therefore turn them into a positive signal.
3. Autonomy is both good and bad
The autonomy that comes with being an entrepreneur can be a double-edged sword. Entrepreneurs can make decisions about when and what they work on – and with whom they work. But recent research into how entrepreneurs experience their autonomy suggests that, at times, they struggle profoundly with it. The sheer number of decisions to make and the uncertainty about what is the best way forward can be overwhelming.
4. An addictive mix
The evidence review confirms that, by any stretch of imagination, entrepreneurs’ work is highly demanding and challenging. This, along with the positive aspects of being their own boss coupled with an often competitive personality, can lead entrepreneurs to be so engaged with their work that it can become obsessive.
So the most critical skill of entrepreneurs is perhaps how they are able to manage themselves and allow time for recovery.
Stress management tips for entrepreneurs
Identify what the actual source of your stress is. Is it tight deadlines, procurement issues, raising capital, managing investors’ expectations, building a talented team, or delay in landing the first sale for your new startup business?
Even if numbering more than a few, break them down because unmanageable tasks look simpler when broken down into smaller segments. Then, list down how you plan to successfully tackle each issue. Meanwhile, exercising multiple times a week has been rated as one of the best tactics for managing stress.
Another technique for handling stress is to take a break. Rest as much as you can before going back to continue with the tasks. It’s also a good idea to reach out to friends, family, and social networks because they are likely to understand what you’re going through and offer words of wisdom and courage.
Stay away from energy-sapping junk food. Eating healthy keeps you fueled for the next challenge. Finally, get enough sleep, and power naps. Sleep helps your body and mind recover.
Hadi Khatib is a business editor with more than 15 years of experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about them. He can be reached at: email@example.com
In so far as the MENA region countries are concerned, Democracy being vital for prosperity and sustainable development or the lack of it, has been demonstrated over and over the millennia. Let us see what it means in today’s world for the rest of the world with Androulla Kaminara.
The above image is for illustration and is of the FDSD.
Democracy vital for prosperity and sustainable development
Transparency and reliability of how elections are carried out are key to ensuring that the winners enjoy legitimacy.
On 15 September, we are marking International Day of Democracy. Since the pillars of democracy around the world are threatened as new challenges emerge, this day is perhaps more pertinent than ever. Democracy is a dynamic concept that has evolved over time, as have the challenges facing it. To those challenges, new challenges have been added of late, including by the impact of the Covid-19 pandemic deepening existing inequalities, spreading disinformation and distrust, and undermining women’s rights. In addition, the fast evolution of new technologies and their impact on all walks of life has also had a profound impact on democratic processes around the world.
As the world took emergency measures to address the Covid-19 crisis, concerns began to emerge that these actions could infringe on civil and human rights of citizens. Covid-19 also highlighted and aggravated inequalities within societies, including in social protection, increased discrimination and violence against women as well as disinformation. The pandemic was accompanied by a global infodemic that poses a direct threat to one of the pillars of democracy: the right to access to information.
The answer is — ‘to build back better’ — to build a society that works for all and that represents the will of the people is the objective. Democracy is built on inclusion, equal treatment and participation — is a fundamental building block of a progressive, stable and peaceful society that enables sustainable development, human rights and economic justice for all.
Democracy is one of the core values of the European Union, together with human rights and the rule of law. The EU is taking steps to safeguard and strengthen democracy inside our Union since no democratic system is perfect and continuous efforts are need for improvement. In the EU, we practise our rights, also through regular elections both at individual Member State level — local, regional and national elections — as well as at the European Union level. The elections to the European Parliament are one of the largest democratic exercises in the world, with over 400 million citizens being represented.
The European Union also takes a leading role in promoting democracy around the world through the implementation of relevant projects and through Electoral Observation Missions (EOM).
In 2019, cooperation projects in support of democracy amounted to €147 million in 37 countries. Over the last 7 years, the EU has implemented projects of €618 million in Pakistan and currently, the EU supports the National Assembly, Senate and four provincial assemblies by strengthening their functioning in terms of capacity, transparency and accessibility as well as accountability towards Pakistani citizens with a project of €9 million.
Since 2019, the EU deployed over 20 observation missions globally as part of its commitment to democracy, human rights and the rule of law across the world and these offer a comprehensive and impartial assessment of electoral processes. In addition, EOMs publish recommendations aiming to improve future elections and strengthen democratic institutions.
In Pakistan, the EU so far has deployed four observation missions since 2002 upon the invitation of the respective governments. The EOM of 2018 put forward a set of thirty recommendations for electoral processes and framework reforms. It is encouraging to note that several of these recommendations are reflected in the 3rd Strategic Plan of the Election Commission of Pakistan.
However, other recommendations are still pending. Among those is the need to ensure a full level playing field for women: registration of women voters and women representatives in parliaments as well as in the media. In Pakistan, there are 63 million registered male voters and 50 million female voters, clearly indicating that about 13 million women voters are missing. The report argues that stronger involvement of women in political decision-making leads to more accountability, better use of public resources, as well as stability and peace. The fact that a large number of women are not eligible to vote leads to alienation of a significant part of the population. Ensuring their inclusion in the electoral process as well as adequate representation for marginalised groups is key to a more inclusive and fair democratic system.
We recognise the difficulties in implementation of some of the EOM’s 2018 recommendations which are public. Nonetheless, as Pakistan is approaching its next general elections, it is paramount to keep the reform momentum and maintain efforts to further strengthen the electoral system and practice. In this context, the role of a fully functioning Election Commission of Pakistan supported by all is crucial.
The experience within the European Union and elsewhere shows that for democracy to work, trust in the democratic process, including the electoral mechanism, is vital. Transparency and reliability of how elections are carried out are key to ensuring that the winners enjoy legitimacy and support from the electorate. Without democracy, peace and stability, sustainable development and prosperity cannot exist.
The EU continues to be committed to safeguarding and strengthening democracy within its borders and across the world, and we work with all our partner countries including Pakistan in this endeavour.
France24‘s story by Aziz El Massassi with AFP Correspondent in the Gulf on how Oil-rich Gulf faces prospect of unlivable heat as planet warms unabatedly up. The described scenario is no more open for debate and the likelyhood of what is advanced has great chances to happen. The reasons of climate change are not only rightly founded but insufficient as a justification amongst many others, all because of the extent of the over-built environment that was frenetically developed within the last fifty years.
Oil-rich Gulf faces prospect of unlivable heat as planet warms
Gulf cities such as Dubai are known for their scorching summers, but experts warn climate change could soon make parts of the fossil fuel-rich region unlivable for humans.
Daily temperatures in the coastal metropolis regularly top 40 degrees Celsius (104 degrees Fahrenheit) for several months of the year and are exacerbated by high humidity.
“I work from 9 am until 4 pm in this heat,” Pakistani scooter driver Sameer said, sweat dripping from his forehead.
“Sometimes, the company or people give us water to drink, and we get a break every three hours,” added Sameer, who works for a mobile delivery app and declined to provide his surname.
A new report this month by the UN’s Intergovernmental Panel on Climate Change (IPCC) showed unequivocally that the climate is changing faster than previously feared, and because of human activity.
Even now, Dubai residents often leave for cooler climates during the hottest months, while many who stay spend their time scurrying between air-conditioned locations—or rely on delivery drivers for a panoply of services.
The UAE is also one of the world’s most arid countries, and for the past several years it has used aircraft for cloud seeding to artificially produce rain.
One expert has warned of the risks for the region as climate change progresses.
“In general, the level of heat stress will increase significantly,” said Elfatih Eltahir, a professor of hydrology and climate at the Massachusetts Institute of Technology.
With higher temperatures and humidity towards the end of this century, some parts of the Gulf will experience periods of “heat stress conditions that will be incompatible with human survival”, he warned.
“That will not happen all the time, they will be episodes that would happen once or twice every seven years,” he added.
The combination of heat and relative humidity has the potential to be deadly if the human body is unable to cool off through sweating.
Scientists have calculated that a healthy human adult in the shade with unlimited drinking water will die if so-called “wet-bulb” temperatures (TW) exceed 35C for six hours.
It was long assumed this theoretical threshold would never be crossed, but US researchers reported last year on two locations—one in the United Arab Emirates, another in Pakistan—where the 35C TW barrier was breached more than once, if only fleetingly.
Calls to reduce carbon emissions pose major economic challenges for oil and gas-rich Gulf countries, from OPEC kingpin Saudi Arabia to Oman and Qatar.
UN chief Antonio Guterres has said the IPCC report “must sound a death knell” for coal, oil and gas, and warned that fossil fuels were destroying the planet.
But some Gulf states in recent years have taken up greener rhetoric as they try to improve their environmental credentials and diversify their economies away from oil.
Tanzeed Alam, managing director of Dubai-based Earth Matters Consulting, said there was increasing interest in the environment and the impact of climate change in the UAE.
“But we are yet to see the large, family-owned businesses really taking this issue to the core of their business models,” he told AFP.
“Businesses don’t often understand how they can cope with increased heatwaves, storms, flooding and other physical impacts,” Alam said.
He expressed hope that the UN report would act as a “wake-up call”.
The United Arab Emirates aims to increase its reliance on clean energy to 50 percent by 2050 and reduce its carbon footprint for power generation by 70 percent.
Abu Dhabi, one of seven emirates along with Dubai that make up the country, says it is building the world’s largest single-site solar plant.
Once fully operational, the Al Dhafra solar project will have the capacity to power some 160,000 households nationwide, according to the WAM state news agency. It is scheduled to commence operations in 2022.
In Bahrain, where average summer temperatures range between 35C and 40C, Mohammed Abdelaal’s company Silent Power uses solar technology to cool water tanks.
He said demand had increased in several Gulf countries this summer, noting that the region’s ample supply of sunlight facilitates the production of “clean, sustainable, low-cost energy”.
Bahrain aims for 10 percent renewable energy by 2035, according to state media, while neighbouring Saudi Arabia—with ambitious plans to diversify its oil-reliant economy—in March unveiled a campaign to generate half of its energy from renewables by 2030.
In Kuwait, Khaled Jamal al-Falih expressed concern at what runaway climate change could mean for his country.
“In Kuwait today, a person who needs to run an errand can’t do so until after six o’clock in the evening, and leaving the house means being in an air-conditioned car to go to an air-conditioned place,” he told AFP.
Almost entirely dependent on fossil fuels, the country has a 15 percent renewable energy target by 2030, according to state media.
Falih said his house ran solely on solar power, and urged the government to make “clear decisions” to combat climate change.
The idea of being able to escape the reality of global warming has “become impossible”, Falih said.
Originally posted on Destination NOW: Once again, my image of what the Sahara Desert would be like only slightly reflects reality. I didn’t expect to find this very productive farm amidst sand dunes. The farmer’s father, once a member of a nomadic tribe, used ancient techniques to find water. The family hand dug two wells:…
Originally posted on The All I Need: TOPICS: election, failed state, Gaddafi, Libya There were many who thought in 2011 that the death of Muammar Gaddafi would lead to a process of democratic reconstruction in Libya, which, despite the hopes, has not yet become a reality. On October 20, 2011, after the end of the…
“The crimes committed that night under the authority of Maurice Papon are inexcusable for the Republic. “ This was therefore the verdict announced by Emmanuel Macron, Saturday, October 16, during a long-awaited ceremony in memory of the Algerian victims
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