Evaluating the Copenhagen climate conference: seizing

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2 a new state of mind ««seizing the opportunity ««THEME the Evaluating the Copenhagen climate conference: seizing opportunity The telecom sector risks missing business opportunities unless it acts now to ensure that transformative solutions are at the heart of the continued climate discussions. As pressure mounts to find solutions to climate threats, it is essential to find new ways to connect ICT to the political process. WORLD LEADERS met in Copenhagen to negotiate the future of the global climate agreements in december From an industry perspective, the business input to the conference was largely dominated by the heavy emitters in transportation, construction and energy, and other sectors that would lose if ambitious targets were adopted. One of the main issues discussed at cop15 was the right to develop that developing countries want. Developed markets, however, want to see developing countries make concrete commitments and share responsibility. But they themselves do not want to commit to binding targets that could impact their economies negatively, at least not until growing economies, such as China, sign up. The disputes between rich and poor countries, and between the world s biggest carbon emitters China and the United States dominated the two-week conference, making it virtually impossible to raise any awareness of ict. While the heavy emitters were at least visible due to extensive and well-organized lobbying, the ict sector was hardly visible in the discussions, despite having much to offer in terms of viable solutions. Environmental organization Greenpeace commented at the time that: it companies also arrived at the un climate summit in Copenhagen in force for the first time, clearly eager to highlight the potential of it technologies to reduce emissions. However, beyond regularly repeating the message that it can lead to significant energy savings across the economy (discussed in reports such as the Smart 2020 document), it companies at cop15 lacked a clear strategy or a common voice for what they wanted or expected governments to deliver from Copenhagen. While the International Telecommunication Union provided a prominently featured ict kiosk on site at cop15, in the bargaining game of funding and carbon economics at the un level the real industry and technology solutions were not on the table. There was a lot of rhetoric, but nothing concrete in terms of driving real solutions to help reduce emissions. With the exception of a few countries, national plans for reducing greenhouse gases (ghg) missed the opportu- 37

3 THEME»» seizing the opportunity»» a new state of mind Much of the focus so far has been on incremental reductions to reach Kyoto targets, but now it is time for transformative reductions and ICT could present itself as the leader. nity to show that ict can deliver in creating a low-carbon, 21st century infrastructure. Thus there remains a great need for global industry commitments and technology inputs, not just country-level targets. cop15 fell short of any meaningful agreement on an updated climate treaty and it did not provide much value in making the case for utilizing communication solutions for a low-carbon economy. The Copenhagen Accord, the only significant agreement to come out of the conference, is a vague document with no legal status and no binding targets or timetables. It gives no indication of how global climate politics will develop or what will happen when the Kyoto Protocol expires in The outcome provides no incentive for global business to further prioritize climate change strategies. There were no incentives either for the energy industry to invest in new non-fossil fuels plants, potentially undermining other investments in energy efficiency and clean technologies, which promote a low-carbon society. The problem of different climate policies and targets in various parts of the world also remains after Copenhagen. The failure to create a competitive and level playing field worldwide is a real problem for Europe s energy-intensive industry. The failure to agree on a timetable for a treaty could also undermine confidence in carbon markets. Copenhagen will not give carbon markets the boost that traders had wanted from a strong agreement. WHAT COPENHAGEN MEANS FOR TELECOMS As the prospects for a strong and binding climate agreement remain uncertain, it is difficult to know exactly how any deal will influence future investments in and use of telecoms. Regardless, it will be important to define what technology sectors and solutions should be the priority. Most of the focus today is on problem sectors (e.g., by trying to put limits on the big emitters such as coal power, heavy industry, cars and aviation) and the supply side (e.g., discussions about carbon capture and sequestration (ccs), nuclear power and renewable energy), but there is a very little focus on enabling sectors like telecoms. At cop15 and in the lead-up to the climate negotiations, there was very little representation from the ict sector, despite the notable efforts of industry groups such as gesi (admittedly not a lobbying organization), itu, the gsma and others. Some attempts were also made on an individual company level. However, compared with other sectors, such as oil and gas, and transportation, we were barely visible. This is probably because the outcome of cop15 was not seen as a major business risk for ict, unlike sectors faced with potentially very costly legislation and other measures. However, the climate debate is not just about avoiding costs and doing business. It is also about opportunity. The most sustainable solutions are often those in which business, government and society are all winners. The fact that world leaders have now stated that global temperatures should not rise more 2C and that a 50 percent reduction in carbon emissions is needed by 2050 is an opportunity for the ict industry. Much of the focus so far has been on incremental reductions to reach Kyoto targets, but now it is time for transformative reductions and ict could present itself as the leader. Ensuring a strong and coherent message from the telecom sector is important in order to encourage policy makers to include ict as an important solution provider. Regulation and other measures will come, but the ict sector should start to clarify what it needs in order to deliver the reductions. If ict manages to get on the global climate agenda, it will indirectly drive and accelerate broadband as a key enabler of a more sustainable society. Every government is faced with meeting targets to reduce co₂ emissions, while simultaneously keeping its economy afloat. Environmental protection and economic growth do not need to be in conflict. On the contrary, investments in broadband can help to stimulate both. A strong and proactive push by the ict sector for recognition at cop16 in Mexico later this year would result in a tremendous opportunity to accelerate investment in broadband as a means of delivering low-carbon services. If policy makers understand that the urgent need for climate action can be met by a shift towards a service perspective dependent on accelerated investment into broadband and ict solutions, a significant change in investment flows can take place. This would ensure that much of the investment that has so far gone into an infrastructure based on fossil fuels can be invested in broadband and ict, the backbone of a low-carbon, 21st century information infrastructure. The global climate negotiations will continue at cop16, and there will be a number of key events and activities leading up to the negotiations. This 38

4 a new state of mind ««seizing the opportunity ««THEME presents an opportunity to accelerate and expand this industry s position in climate policy. This year could be a breakthrough one with more focus on key technology transformation, as opposed to cleaning up the problem after it happened. To realize this, we need to more actively contribute to a process enabling the decisions in Mexico to put companies with practical solutions at the heart of the framework. Suggested action for the ict industry: Start to engage now, to ensure that lowcarbon ict solutions become part of national climate strategies. Join together to lobby locally in key markets such as China, India, the US and Mexico to bring the issue to the attention of politicians as soon as possible (see more specific recommendations, below). Find compelling examples and proof points that can help illustrate the role of broadband in creating more sustainable societies¹, and find credible ways to measure and document this. Prioritize and present concrete proposals for activities to standardize methodologies for measuring environmental impacts, such as those already started by the itu². CONCLUSIONS icts are among the most promising low-carbon technologies available today³. We should make sure that 2010 is remembered as the year ict became the leading low-carbon solution provider. In order for this to happen, the telecom industry should more actively engage in the global climate discussions and position broadband as the most important transformative solution available today. We have nothing to lose and much to gain. Strong global greenhouse gas emission reduction targets are only possible if the climate agenda focuses on solutions and supports companies that can provide low-carbon solutions, by ensuring strategic investments and a level playing field that is technology-neutral. The ict sector needs to proactively ensure direct co₂ emissions reduction by companies in our own sector. Only by doing so will we be able to credibly demonstrate and advocate that telecom can play a more significant role in reducing emissions. The telecommunications industry has numerous chances to create and link opportunities across sectors such as transport, energy and health for socioeconomic development, job creation and low-carbon solutions. An innovationdriven climate agenda could deliver significantly higher reductions than the 15 percent often cited from the smart 2020 report, and within this agenda new ways can be explored for innovative telecommunication solutions to help support a low-carbon development. The evolution of mobile broadband is an integral factor in building sustainable cities that minimize the use of energy and reduce co₂ emissions. It will form part of a modern, low-carbon 21st century infrastructure, together with optical fiber communications. It is time for the telecom sector to seize to this business opportunity. The formalities THE MAIN OUTCOME from the Copenhagen summit is the Copenhagen Accord, along with a number of cop decisions on detailed issues. The agreement is formally only a note, attached to the decision protocol from the meeting, a kind of letter of intent. Four countries Venezuela, Bolivia, Cuba and Nicaragua were opposed to the accord text, so it could not be adopted as a decision of the meeting. THE COPENHAGEN ACCORD has no legal status and cannot be a base for a future un treaty. It is only a political declaration negotiated by a group of major countries, referring to general principles but lacking specific targets and timetables. THE ACCORD SAYS that Annex I Parties commit to implement individually or jointly the quantified economy-wide emissions targets for 2020 and that the countries will submit the numbers to the unfccc secretariat. But this is voluntary and the emissions targets are not coordinated. DEVELOPING COUNTRIES will implement mitigation actions and submit a list of these to the unfccc secretariat. Less developed countries and small island states may undertake actions voluntarily and on the basis of support. These mitigation actions will be subject to their domestic measurement, reporting and verification, and will be reported through their national communications every two years. THE COPENHAGEN ACCORD underlines the importance of the immediate establishment of a mechanism enabling the mobilization of financial resources from developed countries to combat deforestation and forest degradation. This is one of the few concrete measures in the document, but is not binding. PURSUING VARIOUS APPROACHES, including opportunities to use markets, is stressed in the document. OLD FUNDING IS TO BE increased and new funding added to help developing countries in mitigation activities, such as reducing deforestation, adaptation, technology development, and transfer and capacity-building. The goal is to give usd 30 billion from 2010 to 2012 and to jointly mobilize usd 100 billion dollars a year by This funding will come from a variety of public, private, bilateral and multilateral, including alternative sources. A significant portion of funding should flow through the Copenhagen Green Climate Fund. It is noteworthy that the 39

5 THEME»» seizing the opportunity»» a new state of mind The evolution of mobile broadband is an integral factor in building sustainable cities that minimize the use of energy and reduce CO₂ emissions. It will form part of a modern, low-carbon 21st century infrastructure, together with optical fiber communications. document contains no commitments or indica tions of the sources of funding. THE OBAMA ADMINISTRATION defended the agreement as a great step forward. China s Foreign Minister Yang Jiechi said the international climate talks produced significant and positive results. President Obama said the pact marks the first time in history all major economies have come together to accept their responsibility we know that this progress alone is not enough. The comments from the eu were much more pessimistic. Recommendations for policy makers WE RECOMMEND, as a starting point, that governments begin to develop a plan for ict-assisted low-carbon innovation4, which could include the following: MAKE ICT CENTRAL to national strategies so infrastructure investment decisions include evaluations of energy efficiency and low emissions through the use of ict. SHIFT FROM 20TH CENTURY physical infrastructure to 21st century low-carbon infrastructure by: incorporating ict in infrastructure investments and incorporating broadband-enabled services in city planning. ENCOURAGE CROSS-SECTORAL partnerships with a focus on new and innovative services so the partnerships encourage a green digital agenda. Specific measures could include; supporting common measurement of emissions and energy efficiency that companies can use for products and services (i.e. climate-positive reporting, not just a focus on the emissions of a company) and using public procurement processes to encourage the take-up of energy efficiency and low-emission technologies. GOVERNMENTS LEADING BY example and creating a low-carbon playing field by using low carbon and energy efficiency to evaluate policy options. Policy makers can also provide positive examples of low-carbon ict use to show what can be achieved. ENCOURAGING OPEN innovation for low-carbon solutions through policies that include cross-sector innovation, such as the use of ict for health, city planning and the use of intelligent technologies to better deliver services. Footnotes 1. See WWF/Ericsson Low-Carbon Solutions for Urban Development; Vodafone Carbon Connections Ericsson and WWF, Communication Solutions for Low Carbon Cities; Smart A Five Step Plan for Low Carbon Urban Development at ericsson/corporate_responsibility/index.shtml AUTHORS ELAINE WEIDMAN-GRUNE- WALD is Vice President of Sustainability and Corporate Responsibility for the Ericsson Group. She has worked for Ericsson in the US and Sweden for more than 11 years. She has held various positions in the company ranging from environmental product management to sales and marketing. She holds a double master s degree from Boston University s Center for Energy and Environmental Studies in International Relations with a focus on Latin American social and economic development issues, and Resource and Environmental Management. (elaine.weidman@ericsson.com) ULF PEHRSSON has been Vice President Government & Industry Relations for the Ericsson Group since Prior to joining Ericsson, Pehrsson worked for the Swedish Ministry for Foreign Affairs for 18 years, latterly as Deputy Director-General. His work is focused on the promotion of a favorable regulatory and market environment for the development, deployment and use of ICT, facilitating profitable investment. Pehrsson holds a Master s Degree of Business Administration from the Stockholm School of Economics. (ulf.pehrsson@ericsson.com) 40

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