Biodiversity – Resilient LLP (formerly DeMarco Allan LLP)

The Group of Seven (G7) recently published the Climate, Energy and Environment Ministers’ Meeting Communiqué following the G7 Ministers’ Meeting on Climate, Energy and Environment held last week in Turin, Italy. This marked the first meeting of G7 climate, energy and environment ministers (the Ministers) since COP28 last November and included renewed commitments on strengthening energy security, greenhouse gas (GHG) emission reduction, limiting global temperature increases to 1.5°C, and the imperative of transitioning to cleaner energy sources for economic growth and climate resilience. We view the Ministers’ renewed dedication to energy transition as the meeting’s most significant outcome, although it is important to note that countries heavily reliant on coal maintain some degree of flexibility. This bulletin briefly highlights key commitments made by the Ministers. Carbon Markets. Key carbon market commitments include: work jointly towards delivering robust outcomes from the Work Programme on Article 6 at COP29 in Baku, Azerbaijan later this year; explore innovative options for carbon markets and carbon pricing to contribute to mobilizing public and private contributions to climate finance; and enhance demand and robust certification standards for carbon dioxide removals. Energy. Key energy commitments include: phase out existing unabated coal power generation in energy systems during the first half of 2030s or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with national net-zero pathways; setting a global target of reaching 1,500 GW of energy storage in the electricity sector by 2030, six times more than in 2022; reduce demand for and use of fossil fuels, including by rapidly scaling-up clean technologies in power generation, transportation and other end users; and phase out inefficient fossil fuel subsidies, with all countries committing to a progress report in 2025, when Canada will have the Presidency of the G7 (read our earlier bulletin on Canada’s inefficient…

Countries meeting as parties to the Convention on Biological Diversity (CBD) at COP15 in Montreal reached an ‘historic’ deal aimed at protecting nature’s biodiversity early today. Draft decision documents are available on the CBD website. The Kunming-Montreal Global Biodiversity Framework (the GBF) sets out 23 conservation targets, including a requirement the countries ensure that at least 30 per cent of terrestrial, inland water, coastal and marine areas are “effectively conserved and managed” by 2030 (referred to as the 30×30 goal). The GBF also includes a requirement that countries take legal, administrative or policy measures to encourage and enable businesses (particularly multi-nationals and financial institutions) to: (a) monitor, assess, and disclose risk and impacts on biodiversity; (b) provide information that promotes sustainable consumption patterns; and (c) report on compliance, all in order to “progressively reduce negative impacts on biodiversity, increase positive impacts, reduce biodiversity-related risks to business and financial institutions, and promote actions to ensure sustainable patterns of production.” In addition, the GBF includes: An acknowledgement of the US$700B annual gap in the estimated cost of preserving nature globally as compared to the amount that is currently spent. A target to close the gap by reducing government subsidies that promote nature loss by at least US$500B per year by 2030. A target to substantially and progressively increase the level of financial resources to implement national biodiversity strategies and action plans by mobilizing at least US$200B per year by 2030, including an increase in financing from developed countries to the developing world to aid in conservation efforts from US$10B to at least US$20B annually by 2025 and at least US$30B annually by 2030. Multiple targets making express reference to the rights and role of Indigenous peoples in protecting nature. Countries previously agreed the Strategic Plan for Biodiversity 2011-2022 under the CBD, which…