Barro Blanco – a CDM approved hydro dam in Panama – has entered in its most critical phase, following back pedaling from the government of Panama and threats by European lenders. Indigenous people set a deadline for the project to be cancelled.
Currently, parties to the UNFCCC are meeting in Bonn for a new round of climate negotiations. One of the topics that is on the table is the review of the Modalities and Procedures of the Clean Development Mechanism (CDM). Parties are thereby discussing rather “light” issues and shy away from more conflicting topics. But, when turning a blind eye on the necessity for more controversial themes, such as the establishment of a grievance mechanism, the review of the Modalities and Procedures may fall behind its great potential to improve the CDM for the future.
With another round of UN climate talks underway in Bonn, uncertainty remains over the role that carbon markets will play in the Paris Protocol and accompanying decisions.
Following the temporary suspension of the controversial CDM hydroelectric project Barro Blanco in February, Panama’s government acknowledges “recurring administrative flaws and improper handling” by the company in charge. After its dismissal, a new roundtable is now convened to analyse how the project can continue under a new management and “in accordance with the well-being of the communities”. The crucial decision to continue financing the project is now up to the German and Dutch development banks.
As the deadline for industrialised countries to submit their international climate pledges for the future climate treaty has passed, only seven countries have submitted their climate plans. While numerous high emitting countries, such as Canada, Australia, Japan and New Zealand failed to make submissions, Mexico was the first developing country to commit to climate action as part of the of the Paris agreement.
Last week in an event in the European Parliament, various stakeholders discussed experiences with existing climate mechanisms against the future climate finance policy landscape, where potentially huge amounts of climate finance will not only be channeled through the Green Climate Fund (GCF) but also through bilateral agreements and other instruments where it is still unclear what types of safeguards and compliance mechanisms will be applicable and how the respective public and private stakeholders involved will be accountable.
Tomorrow, the EU is expected to announce its climate contributions towards the Paris climate agreement. The expected decision will build on the European Commission’s Road to Paris vision published last week. Hopes are that Ministers take their chances to address a number of critical issues that risk severely undermining the 40% domestic reduction target. They include a clear commitment to increase the 40% target in case of linking the EU’s emissions trading system (EU ETS) with other carbon markets, the way land use emissions are accounted for and the threat the existing surplus of emission allowances pose on the 2030 climate target.
Last week, Switzerland was the first country to officially submit its climate commitment ahead of the international climate agreement to be finalized in Paris at the end of this year. Switzerland announced a 50% emission reduction target by 2030, of which at least 30% must be achieved in Switzerland itself. The remaining up to 20% should be attained through purchasing carbon credits with “high environmental standards” applying a negative list and excluding projects that violate human rights but no criteria are proposed to assess the environmental integrity of ETS allowances.
Today, the European Commission (EC) has published a first glimpse of the mitigation contributions the EU intends to contribute to the Paris Protocol. The Communication launched today entitled “The Paris Protocol – A blueprint for tackling global climate change beyond 2020” includes a proposal for the EU’s proposed Intended Nationally Determined Contribution (INDCs) prepared in…
Following community protests by the indigenous Ngobe communities, Panama’s environment agency ANAM supended the Barro Blanco hydroelectric yesterday. The decision was taken because of breaches of the national environmental impact assessment requirements, including shortcomings in the agreement with the locally affected indigenous communities.
Kaisa Amaral, Communications Director
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