Posted November 5, 2010 by

Climate

The U.N. High-level Advisory Group on Climate Change Financing (AGF) released their report today, outlining a series of recommendations on one of the most controversial elements of the global climate negotiations. Everyone agrees that money must be raised to help developing countries both adapt to the effects of climate change as well as reduce greenhouse gas emissions. But how much money, where the money comes from, and who controls it, are all stumbling blocks in the climate negotiations.

Last month, IATP and 25 other civil society groups wrote the AGF, calling for public finance options, including a financial transaction tax, to be given a priority over private finance options that depend on volatile and unreliable carbon markets. IATP's Steve Suppan wrote a paper last month outlining concerns with carbon markets as a reliable source of climate financing. Below is the press release issued today by civil society groups in response to the AGF report:

UN Advisory Group on Climate Finance Report Falls Flat

Recommendations Downplay Role of Public Finance, Rely Too Much on Private Finance

A new report on climate change financing options released today by a U.N. Advisory Group unwisely emphasizes carbon markets and other private finance options, while irresponsibly advocating an increased role for multilateral development banks (MDBs). Despite concluding that public sources of climate finance are available and promising, the report’s findings downplay the role that public finance can and must play in helping developing countries deal with climate change.

The U.N. Secretary General’s High-level Advisory Group on Climate Change Financing (AGF) issued its report today ahead of the annual U.N. climate summit in Cancún that begins November 29. The report outlines a number of public and private options to raise money to help developing countries adapt to the impacts of climate change and reduce greenhouse gas emissions. 

“The AGF recommendations are unfortunately based on unduly optimistic econometric projections and a blind faith in the capacity of highly volatile and unreliable carbon price signals to induce long-term investments in low carbon energy production and manufacturing,” said Steve Suppan of the Institute for Agriculture and Trade Policy. “A better start on climate finance would be for developed countries to make good on their $30 billion pledge for immediate funding to allow developing countries to adapt agricultural production and water management systems to the imminent ravages of climate change.”

“It was inappropriate for the AGF Report to make reference to the role of multilateral development banks. MDBs are not a source of climate finance, but are used as a channel. And they are not acceptable even as a channel. MDBs are a part of the climate problem, not the solution. The World Bank and other MDBs are far, far more adept at causing climate pollution than in helping countries to mitigate or adapt to it. Using MDBs as a channel would also mean climate finance in the form of loans or other debt-creating instruments,” said Lidy Nacpill of Jubilee South – Asia/Pacific Movement on Debt and Development.

“Adaptation funding, in particular, is compensation for damages done by developed countries and should only be given in grants. It is untenable that the AGF suggests otherwise. The enormous costs of dealing with climate change must not add to the already heavy debt burdens experienced by many developing countries,” added Nacpil.

“The AGF report—as limited in scope and conservative in its estimates as it is—still shows that there are numerous viable options to generate public finance for climate change,” said Ilana Solomon of ActionAid USA. “Developed countries have no excuse for inaction. The options are there. They must work through the U.N. Framework Convention on Climate Change to come to agreement on a combination of public sources to generate the desperately needed resources to help developing countries confront climate change."

“The AGF acknowledges that meeting the needs of developing countries will take a ‘systemic approach’ to financing climate adaptation and mitigation,” noted Janet Redman, co-director of the Sustainable Energy and Economy Network at the Institute for Policy Studies. “Options like a financial transaction tax meet the mark: stabilizing the economy by curbing dangerous speculation and raising hundreds of billions of dollars each year for global public goods like combating climate change. The AGF is undercutting its own mission by underestimating the revenue generated by a feasible and popular source of public finance."

The groups expressed concern that the AGF was guided by a pledge developed countries made in Copenhagen to mobilize $100 billion per year by 2020 in public and private finance—a pledge which falls short of reasonable estimates of climate financing.

“The $100 billion is an arbitrary, political figure that is based neither on need nor on equity. If the U.S. government rapidly mobilized trillions to bail out Wall Street, why cannot at least equal effort be put toward bailing out the planet from a climate crisis that rich countries caused?” said Karen Orenstein of Friends of the Earth U.S.

In October, at the global climate talks in Tianjin, more than 25 civil society organizations sent a letter to the co-chairs of the AGF outlining their recommendations for climate finance.

ActionAid USA, Friends of the Earth U.S., Institute for Agriculture and Trade Policy, Institute for Policy Studies, Jubilee South – Asia/Pacific Movement on Debt and Development.

Posted November 3, 2010 by

ClimateFood securityMarket speculation

This week, the World Bank, the U.N. Food and Agriculture Organization and a number of governments are meeting in the Hague at the Global Conference on Agriculture, Food Security and Climate Change. The original goal was to develop a Roadmap for Agriculture that would feed into the global climate change negotiations at the United Nations.

One of the key obstacles to developing a joint approach on agriculture and climate change is financing: finding money to help farmers and communities adapt to the effects of climate change while reducing agriculture's contribution to climate change. Carbon markets have been one of dominant proposals for financing agriculture-related projects on climate change.

IATP's Shefali Sharma is in the Hague and delivered the below statement to conference participants on the risks carbon markets pose to food security and greenhouse gas reduction goals.

Between 2007 and the spring of 2008, the food price index shot up by 85 percent, then in a few months, agriculture commodity prices fell by 60 percent. The massive price spike and drop was devastating for developing countries, particularly net-food importers. The food price crisis drove another 150 million people into hunger. According to UNCTAD, the extent of price volatility during the food crisis cannot be attributed to supply and demand alone. There is now a wide consensus that speculation on commodity markets by financial traders had a significant role to play in creating the crisis.

In our discussions in the Hague on food security, climate change and “innovative finance," the discussion on speculation in carbon markets and their impact on agriculture commodities is glaringly missing. 

Carbon and commodity markets are tied together through futures markets. And carbon trading is essentially derivatives trading. Unregulated derivatives trading, starting with mortgage-backed securities, was a major source of the current global financial crisis. This crisis is the reason most developed countries claim they have inadequate public funds for climate finance. Yet, carbon trading, to the scale at which it is being proposed, would create a large secondary market of carbon derivatives that has thus far been poorly regulated. When bundled with other commodities, such as maize, wheat  or oil, carbon derivatives have a large potential to destabilize agriculture prices. A second way that carbon derivatives can destabilize markets is through over-the-counter trading: a preferred mechanism of financial speculators who can make unlimited bets in commodity markets through this window. In 2008, 44 percent of carbon traded on the European Emissions Trading Scheme was through over-the-counter trades. As a result the carbon price in the ETS has been highly volatile and low.

Land-based offsets included in carbon markets therefore have significant implications on land tenure, food sovereignty, biodiversity and the right to food. These linkages need to be carefully examined and have thus far been neglected as a topic of discussion in this conference.

Industrialized countries and their industries have a legal and historical responsibility under the UNFCCC to mitigate climate change. They should not pass this responsibility to countries who have had little to do with creating the problem, but who nonetheless will bear the largest impacts. 

Reliable, predictable and public finance needs to fund adaptation needs in developing countries and there are several proposals including carbon, transport and financial transaction taxes that are on the table that should be considered.

Posted November 3, 2010 by

ClimateFood securityMarket speculation

IATP's Shefali Sharma is reporting from the Global Conference on Agriculture, Food Security and Climate Change at The Hague.

It is the fourth evening of this six-day long conference, which promises to deliver a “roadmap” of concrete actions on agriculture, food security and climate change through a participatory process. This evening, a draft copy of the roadmap is supposed to be made available at the conference center with the announcement that this was “not going to be a negotiated text” and that only a “chairman’s summary” would be produced as the outcome of the meeting.

For three days now, the meetings have continued nonstop from 10 a.m. to 8 p.m. with plenaries morphing into working groups, morphing into numerous side events and an investment fair in the evening.  Participants have complained about not having any breaks or enough time to engage on the numerous topics. The conference has been dominated by panels and confusion has reigned with regards to the objectives of such a “roadmap” that will simply be delivered onto the participants in a top down manner.  Certainly, the chairmen’s summaries of what happened in working groups the day before illustrates that the conference is not meant to necessarily capture the diversity of views (and there are many, with little consensus on anything!), but steadily drive towards a planned outline of a “roadmap.”

Such a shell of an outline was handed to participants today with the headings such as: “Shared Understanding of the Challenges,” “Shared understanding of the Solutions,” “Urgent Need for Action,” and  “A Roadmap for Action.” This latter heading is further divided into “Policies and Strategies” for the catch phrase of the conference: “climate-smart agriculture,” “Tools and Technologies for Climate-Smart Agriculture” and “Financing for Transformational Change.” And yet the working groups have not necessarily been addressing these issues in any meaningful way, nor has there been adequate governmental and civil-society participation in the debates or time to merit a “shared understanding.”

The conference appears to be dominated by agribusiness interests and those promoting opportunities for carbon-related offsets and market-based approaches to solve the climate crisis in agriculture sector in the Global South. The words “mitigation” and “adaptation” have been used interchangeably, particularly by representatives from industrialized countries such as the U.S. and New Zealand, raising concerns that this so-called “roadmap” of the chair of the conference will simply ignore the legal obligations of industrialized countries who are party to the UNFCCC to reduce their own carbon footprint and greenhouse gases domestically and to set the stage for carbon offsets in agriculture.

In response to the proceedings of the conference, Bolivia and Nicaragua on behalf of the ALBA group of countries (Bolivia, Cuba, Ecuador, Nicaragua and Venezuela) made 13 recommendations to the conference organizers regarding the chairman’s summary as the outcome document of the conference. 
They noted that “a process that genuinely seeks to draw together the linkages between agriculture, food security and climate change should involve government delegates from both the agriculture and climate change sectors in order to support fair and effective solutions to the agriculture and climate crises.“ 

They called on the chair to “honor the commitments” under the UNFCCC on mitigation, adaptation and financing. They said, “Developed countries should not shift the burden of reducing their emission to developing countries through the carbon market and offsetting […]” Instead, they called for a “holistic framework” that also includes water management, biodiversity, agricultural prices, commodities markets, livelihoods, employment, salaries, womens’ and indigenous rights and poverty reduction.”

The ALBA group also supported the findings of the International Assessment on Agriculture Science Technology and Development (IAASTD) and referenced the World People's Conference on Climate Change and the Rights of Mother Earth held in Cochabamba on April 2010. They stressed that ecological agriculture “is the route to food security and adaptation to climate change” and as such adaptation should be the main priority of the conference. They noted that a market-based approach will lead to carbon speculation “and inevitably a carbon bubble. On the contrary, we need to get non-sector speculators out of food futures markets. Speculation in food security that leads to mass malnutrition is immoral and should be illegal,“ they said.

They concluded by emphasizing the Adaptation Fund of the Kyoto protocol as the appropriate channel for financing and stressed that further funding could also be obtained through Special Drawing Rights at the International Monetary Fund.

Tomorrow begins the ministerial roundtable to deliberate on the chair’s summary.

Posted November 1, 2010 by

This month's Radio Sustain podcast is all about food security and farmworker justice: Why does exploitation of farmworkers and modern-day slavery still exist in the United States, and why do some (both domestically and internationally) go hungry while others have more than enough? 

First, IATP Food and Society Fellow Sean Sellers discusses the shocking modern-day farmworker exploitation that takes place throughout the country. In a new campaign, he and IATP Food and Society Fellow Shalini Kantayya have created a video with the Coalition of Immokalee Workers to ask for One Penny More for farmworkers.

Domestically, hunger remains—unsurprisingly—concentrated in low-income urban areas. Mark Winne, author of Closing the Food Gap, is a veteran food security and anti-hunger advocate. He's founded multiple food security organizations, including the Community Food Security Coaltion (CFSC). Winne talks about his ideas on where the food gap comes from and shares his insights on what steps must be taken to close it.

Finally, IATP's Sophia Murphy discusses the state of international food security, and why food reserves hold promise as a tool for stabilizing volatility in agriculture markets that devastates farmers and poor consumers around the globe.

Listen to the latest Radio Sustain (mp3) and check our archives for past podcasts.

Posted November 1, 2010 by

In 2003, at an Integrated Pest Management (IPM) conference in Indianapolis, I presented a paper entitled "GMO’s and IPM: are they compatible?" One focus of the discussion centered on the question of whether GMO’s will increase or decrease pesticide use over time? I, and others—especially Chuck Benbrook—predicted that over time pesticide use will actually increase as pest resistance develops. I also covered this issue recently in a previous Think Forward blog.

The broad-spectrum herbicide glyphosate (Roundup, until recently manufactured exclusively by Monsanto), when used with corn or soybeans containing a transgenic gene resistant to the effects of the herbicide has provided excellent control of both grass and broadleaved weeds. This permitted more use of no-till and narrow row farming, and increased the acreage that can be managed per farm unit. Thus, it has indirectly contributed to yield and to profits. In short, it has been a major contributor to large-scale industrial agriculture that has decimated the countryside. As Andrew Wargo III, president of the Arkansas Association of Conservation Districts, states in a New York Times article, ”It (Roundup) is the single largest threat to production agriculture that we have ever seen.”

Chuck Benbrook estimates that it takes about 12–15 years to develop resistance to a pharmaceutical in a general population, which fits the time frame that is occurring for Roundup-resistant weeds (Roundup-Ready soybean was first introduced in 1996). Dr. Mike Owen, the Extension Weed Scientist at Iowa State University, calls this “Darwinian evolution fast forwarded.” Owen, in a “Stewardship Tips” fact sheet from ISU Extension, recommended timely weed control, knowing the weed issues in the field, using a pre-followed post herbicide system to control weeds and using full labeled rates of glyphosate. These recommendations were in general ignored. Many publications have been available over the years giving the facts behind the occurrence of resistance. Yet now Roundup resistance is a big problem and growing bigger.

Why? Basically it was overused and poorly managed.

Benbrook wrote “glyphosate herbicide and genetically engineered corn, soybeans and cotton (are) the most stunning and profitable market success story in the history of the pesticide and seed industry.” Dr. Owen points out that while it is logical to blame GMO crops, the real blame lies with the cropping and weed control system that has come out of the Roundup-Ready marketing and promotion efforts, coupled with the convenience and simplicity of the Roundup-based systems. He also faults the aggressive marketing by industry that downplayed the risks involved. And after going off patent, glyphosate prices dropped, encouraging farmers to increase herbicide rates to kill the more resistant weeds. Of course, this only encouraged the weeds to fight back with increased resistance. It has becoming a losing arms race, or what Willard Cochrane called—years ago—the "Technology Treadmill." Chemical companies are delighted with the new business opportunities; now they can revive old chemistry.

The most persistant problems have been seen in only a few weed species. Among these are pigweed (Palmer amaranth), horseweed and giant ragweed. Even though only about 7 to 10 million acres are currently impacted, resistant weeds will spread rapidly as forces such as birds, dirty combines and wind and soil erosion spread resistant weed seeds from field to field.

While Monsanto spent precious years in denial, it now recognizes the problem and realizes that if the effectiveness of glyphosate is diminished, farmers will be reluctant to pay the premium for Roundup-Ready seeds. Recently, Monsanto became aggressive, actually subsidizing the use of alternate herbicides that control the Roundup-resistant weeds in cotton, where the problem first surfaced and is the most severe. In 2010, they began paying farmers to use these alternatives as well as developing crops that have resistance to other herbicides.

The herbicide subsidy program by Monsanto has been extended in 2011 to corn and soybeans. This is admittedly an effort to extend the use of glyphosate, but also likely has a financial return because Monsanto is forming partnerships with chemical companies such as Sumitomo Chemical and Valent that produce the alternatives. Valor, a herbicide made by Monsanto, has also been approved but it is a very toxic herbicide. Warrant is another subsidized herbicide (made by Monsanto) which is particularly effective for pigweed control in soybean.

Of course, these subsidy programs fall back into the old pattern; the overuse of glyphosate has lead to the use of more herbicides and these are more toxic. And while Monsanto and other companies are racing to develop crops resistant to alternate herbicides, no silver bullet has emerged. While farmers might think a new magic herbicide-GMO combination is in the works, it is not likely.

Still with the high and rising demand for soybeans worldwide (The October 28, 2010 Chicago Board of Trade Price was $12.25) growers will be looking for all the ways possible to maintain their current soybean production systems. Industry will benefit but farmers will be paying higher input costs.

As long as the free market reigns supreme and corporations control agriculture’s destiny, there will be no way to halt the development of even more pest resistance and more dominance by the chemical/seed industry. Will the loss of the ability to control weeds cripple agriculture’s economy? Some think so. And they may be right. Remember, Bt insect control through GMOs has greatly expanded recently. The clock is ticking.




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