The Bali Communiqué
The Bali Communiqué Press Release:
30 November 2007
150 global business leaders call for legally binding UN framework to tackle
climate change
The business leaders of 150 global companies have today published a communiqué
to world leaders calling for a comprehensive, legally binding United Nations
framework to tackle climate change. The initiative represents an unprecedented
coming together of the international business community and includes some of the
biggest companies and brands from around the world, including the United States,
Europe, Australia and China. It has been led by The Prince of Wales’s UK and EU
Corporate Leaders Groups on Climate Change, which are developed and run by the
University of Cambridge Programme for Industry. The leaders hope that the
initiative is likely to have a significant impact on the UN climate negotiations
starting next week in Bali, Indonesia.
In an article published in today’s Financial Times, The Prince of Wales
congratulates the companies for showing “remarkable leadership” and expresses
his “fervent hope” that the communiqué “will strengthen the resolve of those
gathered in Bali to make the tough decisions the world so urgently needs”. The
communiqué also appears in full in a double-page spread in today’s global
edition of the Financial Times.
The communiqué notes that “The scientific evidence is now overwhelming” and that
“climate change presents very serious global social, environmental and economic
risks and it demands an urgent global response”. It presents a strong business
case for action by stating that “As business leaders, it is our belief that the
benefits of strong, early action on climate change outweigh the costs of not
acting”. It notes that the costs of action are manageable but that each year of
delay will result in greater disruption. The leaders also state that “The shift
to a low-carbon economy will create significant business opportunities”.
The 150 global companies go on to argue that a “sufficiently ambitious,
international and comprehensive legally-binding United Nations agreement to
reduce greenhouse gas emissions will provide business with the certainty it
needs to scale up global investment in low-carbon technologies”. This is
significant because there is still a debate in the international community as to
whether a mandatory or voluntary approach is most appropriate.
But most significantly, the business leaders argue that “the overall targets for
emissions reduction must be guided primarily by science”. This is in contrast to
the argument that has previously been made by some parts of the business
community that it is concerns over competitiveness and cost that should set the
limit of emission cuts. The leaders note that evidence from the
Intergovernmental Panel on Climate Change (IPCC) already points to a reduction
being required of “at least 50% by 2050” and comment that the “greatest effort”
will need to be made by those countries that have already industrialised.
In reference to the Bali meeting, the companies urge world leaders to “seize
this window of opportunity” and agree a “work-plan of comprehensive
negotiations” to ensure an agreement can come into force post 2012 (when the
existing Kyoto Protocol expires).
US based companies in support of the communiqué include Coca-Cola, Dupont, Gap,
GE, Johnson and Johnson, Nike, Pacific Gas and Electric, Sun Microsystems and
United Technologies. European based companies include Anglo-American, British
Airways, F&C Asset Management, Ferrovial, Nestle, Nokia, Rolls Royce, Shell,
Tesco, Virgin and Volkswagen while Australian based companies include Insurance
Australia Group, Macquarie, National Australia Bank, News Corporation and
Westpac.
Significantly, the communiqué has also been signed by a number of Chinese
companies including Shanghai Electric, Zhufeng Technology and Suntech.
James Smith, the Chair of Shell UK said: "The message from the international
business community couldn't be clearer. A comprehensive, legally-binding United
Nations agreement to tackle climate change will provide business with the
certainty it needs to scale up global investment in low carbon technologies. The
cost of inaction far out weighs the cost of taking action now. It is crucial
that, at the Bali conference, countries agree a work plan of comprehensive
negotiations to ensure a robust policy framework is in place, to guide us
forward over the coming decades."
Alain Grisay, CEO of F&C Asset Management said: “Business and investors can only
play their part in tackling climate change if governments take decisive action
to make this possible. This problem will not get solved through market forces
alone in the time that we have left to act, because climate change presents a
textbook example of market failure. This means that voluntary targets won’t do:
business needs a level playing field in order to take on the financial risks
that adequate action on climate change requires”.
Tony Juniper, Executive Director of Friends of the Earth, welcomed the
initiative: “The shift to a low carbon economy is not only an environmental
imperative but also an unprecedented economic and social opportunity. Scaling up
clean energy systems and using energy more efficiently could not only slash
emissions, but help to improve the quality of life for billions of people and
create millions of jobs. Time is now short, however, and if we are to have a
good chance of cutting emissions by a sufficient amount we need to act right
away, and that is why we need a strong outcome from the Bali talks, and that is
why it is so important that so many companies have signalled their support for
governments to negotiate a deal that is up to the task at hand”.
Polly Courtice, Director of CPI commented: "The University of Cambridge
Programme for Industry helps leaders from the public and private sectors
understand and act upon the challenges and opportunities of sustainable
development. So we are delighted to be working through The Prince of Wales
Corporate Leaders’ Groups on Climate Change to bring together so many global
companies who are calling on world leaders to take bold and urgent action in the
face of climate change"
The Bali Communiqué is being sent direct to the 130 Environment Ministers that
will be attending the Bali conference. It will also be handed personally to the
UN Secretary General Ban Ki-Moon, who will be attending the conference in its
second week.
Editor’s Notes
1. The Prince of Wales’s UK and EU Corporate Leaders Groups have been developed
by The University of Cambridge Programme for Industry. Members of the groups
include: ABN AMRO, AIG, Allianz SE, Anglian Water Group, AXA Insurance, BAA,
BskyB, Centrica, Deutsche Telekom AG, Enel SpA, E.On, F&C Asset Management, John
Lewis Partnership, Johnson Matthey, Kingfisher, Lloyds TSB, Philips Lighting,
Reckitt Benckiser, Schneider Electric, Shell, Skanska AB, Standard Chartered
Bank, StatoilHydro, Sun Microsystems, Tesco, Unilever, Vodafone.
More information on the groups is available at: www.cpi.cam.ac.uk/bep/clgcc
2. The United Nations Climate Change Conference 2007 in Bali will start on
Monday, 3 December and close on Friday, 14 December 2007. The Conference will be
presided over by Indonesian Environment Minister Rachmat Witoelar, with support
from the UN’s Climate Change Secretariat (UNFCCC), headed by Executive Secretary
Yvo de Boer. The first week will involve negotiations among the Parties at the
level of high-ranking government officials on a wide range of issues. On
Wednesday, 12 December, the high-level segment will start with addresses by the
UN Secretary-General and the President of Indonesia. It is expected to be
attended by 130 Environment Ministers. More information is available at: http://unfccc.int/
3. The Bali Communiqué and a full list of signatories is available at:
www.balicommunique.com
Press enquiries: for further information please contact Genevieve Maul,
University of Cambridge Press office 01223 332300 gm349@admin.cam.ac.uk
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- China - 2,430 million
- Russia - 600 million
- India - 529 million
- Japan - 363 million
- Germany - 323 million
- Australia - 205 million
- South Africa - 201 million
- UK - 192 million
- South Korea - 168 million
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