It has been a very interesting couple of days here at the COP. I had a very interesting chat with the World Business Council for Sustainable Development and Sustainable Business Australia around the prospect of developing a renewable energy LCTPI style project for Australia. When back in Australia, this is something that we will try and facilitate with others in the energy industry. Market design will be a critical part of this discussion.
There was a fascinating discussion in relation to climate change related disclosure. The Financial Stability Board presented on the work it is doing around physical, legal liability and financial risks through the process chaired by Michael Bloomberg. AVIVA (Steve Waygood) made an excellent point around disclosure being focused on emissions (direct, supply chain, per unit of output), competitor analysis and governance structure. He made the important point that national standards and using corporations law is unlikely to work. He stated that an international conversation around listing rules for publicly listed companies is required. He was of the view that the International Organisation of Securities Organisations (IOSCO) should be focused on making the listing rules consistent across countries. As a member of the Governance Institute in Australia, I found this particularly interesting.
The highlight of my Friday was the presentation by the IEA on data. Here are some interesting statistics/facts:
- In 2014 emissions did not rise.
- Renewable capacity additions were 130 GW - this is equivalent to around three NEMs!
- INDCs through COP21 will nearly triple the rate of global energy intensity improvement. 70% of additional power generation would be low carbon.
- The IEA has five key actions but the most important two are: energy efficiency, investment in renewables.
- Coal plant closure is expected to deliver 9% of emission reductions required.