13 June 2016: According to a policy paper from the Grantham Research Institute on Climate Change and the Environment, “carbon-intensive companies are not ready for the impact of the Paris Agreement’s commitments.” The authors, economists Nicholas Stern and Dimitri Zenghelis, submitted the paper to the Task Force on Climate-Related Financial Disclosures, arguing that the Financial Stability Board (FSB) should create robust reporting guidance on climate risks.

In the Paris Agreement on climate change, governments agreed on the need for global emissions to peak as soon as possible, recognizing that this will take longer for developing countries; and to undertake rapid reductions thereafter in accordance with the best available science. Furthermore, governments committed to take mitigation action as part of the 2030 development agenda, in particular in Sustainable Development Goal (SDG) 13 (Take urgent action to combat climate change and its impacts). The paper, titled ‘The Importance of Looking Forward to Manage Risks: Submission to the Task Force on Climate-Related Financial Disclosures,’ emphasizes the strong impact these climate commitments will have on the global economy. Announced at the UN Climate Change Conference in Paris in December 2015, the mission of the Task Force on Climate-Related Financial Disclosures is to develop voluntary climate risk disclosure procedures for companies. A final report is expected by the end of the year.

But how well are governments doing in turning their commitments into action and driving the transition to a “green” economy? This Mitigation Update issue recaps significant steps governments are making toward fulfilling those mitigation commitments.

Recent mitigation news highlights how governments are coming together through intergovernmental organizations on two significant mitigation challenges: aviation and black carbon/methane. Regional cooperation also stands out in recent news, with initiatives announced in Europe, Asia and Africa. [UNFCCC Press Release] [The Importance of Looking Forward to Manage Risks: Submission to the Task Force on Climate-Related Financial Disclosures]

Sectoral Progress: Work Continues on Emissions from Aviation, Black Carbon

The International Civil Aviation Organization (ICAO) continues its work toward its 39th Assembly this year, when member States are expected to adopt a market-based measure (MBM) to reduce carbon emissions from international aviation. Olumuyiwa Benard Aliu, ICAO Council President, addressed the 72nd Annual General Meeting of the International Air Transport Association (IATA) on 2 June, noting that the political will exists to pass the MBM resolution. He reported progress on “all elements in our basket of measures to reduce aviation emissions and their impact on climate change.” Member States are expected to continue consultations over the Northern summer so that the Assembly is ready to adopt decisions relating to registries, monitoring, review and verification (MRV) requirements, and emissions unit criteria to make the MBM operational by 2020. [ICAO Press Release]

On 8-9 June, the Expert Group in Support of the Implementation of the Framework for Action on Black Carbon and Methane (EGBCM) of the Arctic Council met for the second time in Helsinki, Finland. In addition to their impacts on the climate, black carbon and methane are projected to affect the Arctic’s economy and public health. The Expert Group is charged with periodically assessing progress in implementing the Arctic Council’s common vision for enhanced action to reduce black carbon and methane emissions. [Arctic Council Press Release]

Europe’s North Seas Countries Cooperate on Offshore Wind

On 6 June, Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and Sweden signed a political declaration and action plan aimed at fostering the development of wind energy. The four areas of focus will be: spatial planning for optimal use of limited space; grid development and market connection to get wind energy where it is needed when it is needed; information sharing on infrastructure needs; and harmonizing technical rules and standards. Such coordination could potentially save the region up to €5.1 billion, according to previous European Commission studies. Maroš Šefčovič, Vice-President for the European Energy Union, and Miguel Arias Cañete, Commissioner for Climate Action and Energy, also signed the plan, pointing to its importance in fulfilling climate commitments. [European Commission Press Release]

Asian Development Bank (ADB) Convenes Clean Energy Forum 2016

The 11th Asia Clean Energy Forum (ACEF) took place 6-10 June in Manila, the Philippines, offering regional stakeholders an opportunity to exchange knowledge about innovative initiatives, assess progress and consider ways to further scale the deployment of clean energy in Asia. The fourth day of the conference concentrated on clean energy in relation to climate change, with a focus on the Paris Agreement and the SDGs. Keynote speakers and panelists shared views on how clean energy can drive progress in achieving nationally determined contributions (NDCs) under the Agreement. [ACEF Website] [ACEF Newsletter – Report on Day 4]

African Development Bank (AfDB) Supports Mini-Grid Developers

As part of its Green Mini-Grid Market Development Program (GMG MDP), the Sustainable Energy for All (SE4All) Africa Hub, announced on 13 May that its host, AfDB, signed a service contract with a consortium of GVEP International, a non-profit organization, and INENSUS, a German company. Under the contract, the consortium will provide technical assistance to green mini-grid developers, including in business planning, market development, grid design, project finance, grid operation and maintenance. As Africa looks toward its goal of universal energy access, green mini-grids will be an important means of providing access without increasing emissions. [AfDB Press Release]