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The Business Behind Climate Change Paul Quintos

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The Business Behind Climate Change Paul Quintos National Grassroots Climate Change Conference 20-21 April 2009 Balay Kalinaw UP Diliman

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Philippine 1st National Grassroots Climate Conference on Climate Watch Change Alliance
Pambungad Banggaan ng pribadong ganansya (tubo) vs. pampublikong interes o panlipunang pangangailangan. Sa kalagayang konsentrado ang pag-aari at kontrol sa resources sa kamay ng iilan, -- sa kamay ng mga monopolyo kapitalista -- ang nananaig ay ang pribadong interes nila sa halip na interes ng kabuuan o ng nakararaming mamamayan. Makikita ito sa papel ng TNCs at IFIs sa pagbabago sa klima at pag-init ng mundo
Papel ng TNCs sa pagbabago ng klima  Tuwirang kontribusyon sa pagbuga ng GHGs  Kontrol o impluwensya sa kabuuang padron ng produksyon at konsumo sa lipunan  Impluwensya sa mga patakaran ng gobyerno  … at multilateral institutions (international financial institutions)  Impluwensya sa mga patakaran at programang tugon sa problema ng pagbabago sa klima
Greenhouse gasses (GHGs) mula sa Pilipinas
CPA LALOG
1. Kontribusyon ng TNCs sa pagbuga ng GHGs  1992 UN Centre for Transnational Corporations (UNCTC) report: “The influence of TNCs extends over roughly 50 % of all emissions of greenhouse gases. This includes about half of the oil production business, virtually all of the production of road vehicles outside of the centralized economies, most CFC production, and significant portions of electricity generation and use.”  Global oil and gas industry ay dominado ng 4-5 TNCs. CO2 emissions ng Exxon Mobil + Gazprom noong 1997 ay mas malaki sa kabuuang CO2 emissions ng Indonesia, Malaysia, Thailand, Pilipinas, Mexico,
1. Kontribusyon ng TNCs sa pagbuga ng GHGs  production and use of energy-intensive metals are also largely controlled by TNCs. Around 30-40 TNCs dominate the exploration, mining, smelting, refining, and selling of metal concentrates and metals in the world market, with a trend towards increasing concentration in recent years [source: MMSD]  TNCs have now come to monopolize virtually the entire value chain of food production from farming to distribution, from seeds to fertilizers and equipment,
“Globalisasyon”: Northern TNCs outsource GHG emissionsemissions generated by a  E.g. the GHG to the South US TNC that operates a manufacturing plant in China that exports all of its output back to the US would be counted entirely as GHG emissions from China.  Around 8.9% of China’s GHG emissions in 2005 was due to the production of goods destined for US consumption [Source: Weber et al, 2008]  35.4% of CO2 emissions from energy consumption in the Philippines in 2000 was due to production for export [source:
2. Impluwensya sa kabuuang padron ng produksyon at konsumo  1992 UNCTC Report: “TNCs are also intimately involved with implementing and operating technologies which cause the problems that confront us... It is the international corporations which manufacture and market on such a large scale that, through their decisions, establish industry standards for production technologies, which are then replicated and dominate the industry.  Sa agri: ”Nitrogen fertilizer production is also in the hands of TNCs which have historically promoted patterns of over-use, often in conjunction with government development schemes.”
2. Impluwensya sa kabuuang padron ng produksyon at konsumo  Sa transport: “big automobile producers in the US have discouraged both public transportation and non-fossil fuel based transportation, and continue to produce automobiles which are far less fuel efficient than available prototypes. “  Sa kuryente: “TNCs which play an important role in designing equipment and plants, have inappropriately placed priority on size rather than efficiency.”  The UNCTC concludes, “Even when the TNC role is not dominant, it is difficult to identify any area of manufacturing in which TNCs do not play a significant role at some stage in the production-to-consumption process.”
3. Impluwensya sa mga patakaran ng gobyerno  Mining act  Biofuels act  Coal-fired power plants  Chemical-intensive agri  Lack of support for community-based adaptation (education, health, disaster-preparedness, R&D, etc.)
4. Impluwensya sa mga patakaran ng multilateral institutions at IFIs  The World Bank remains heavily committed to investments in carbon-intensive energy projects and reforms in energy sectors that focus on large-scale, privatised energy provision.  from 1997-2007, the Bank financed 26 gigatons of CO2 emissions – about 45 times the annual emissions of the UK. [Source: WWF-UK]  This year World Bank Group's total lending to coal, oil and gas is up 94% from 2007, reaching over $3 billion. Coal lending alone has increased 256% in the last year. It reported lending over $2.5 billion for renewable energy and energy efficiency but the bulk of this went to large hydropower projects and supply-side energy efficiency.  Only $476 million went to support “new” renewables such as wind, solar, biomass, geothermal, and hydropower projects that will produce up to 10 MW per facility.
WB as Climate Banker  The Bank is using Climate Investment Funds to push the neoliberal corporate agenda on climate change (carbon offsets, carbon trading, proprietary technologies, business-as-usual)  donor-driven scheme that places developing countries at a disadvantaged position.  new conditionalities on developing countries.
5. Impluwensya sa mga patakarang tugon sa pagbabago sa aklima of fake  Exxon Mobil funded network citizens' groups and bogus scientific bodies (after the IPCC was created) that have been publicly claiming that the science of global warming is inconclusive. [Source: Monbiot, George, “The Denial Industry” The Guardian, Sept. 19, 2006 ]  corporate interests in the US have lobbied against the ratification of the Kyoto Protocol and watering down its content during negotiations (hence the introduction of market-based mechanisms: ET, JI at CDM).  1,500 industry or corporate lobbyists at
Corporate Message to the UNFCCC  That technology can fix the problem of global warming. AND that business, particularly the high tech companies from the advanced industrialized countries are the only ones or the best ones that can deliver these solutions  That mitigating or reducing GHGs and adapting or dealing with its adverse consequences will require vast amounts of money. AND therefore private capital is necessary to provide the financing but as investments
Corporate Message to the UNFCCC  That if we want to change people's behaviour --production and consumption patterns -- the best way to do it is through price incentives in the market.  Climate policy (whether multilateral or domestic), should be aimed at enabling private capital to do its magic.
Ang resulta? Profit- oriented Climate Policy  Carbon trading (EU-ETS, JI, CDM, etc.)  Biofuels  Carbon-capture and storage  Nuclear energy  REDD  Geo-engineering  Etc.
EU-Emissions Trading Scheme. binigyan ng libreng mga permit to pollute ang malalaking kumpanya sa Europa, tapos pwede nila ito ibenta o bumili sa iba. Pwede rin mag-import na lang ng CERs mula sa CDM projects mula sa mahihirap na bansa.
Ano dapat ang ating tugon? Kilusang masa! 1. Labanan operasyon ng mga TNCs at mga proyekto ng gobyerno na sumisira ng ating kabuhayan at kapaligiran, at singilin sila sa kanilang pananalasa 2. Labanan ang mga patakaran sa ekonomya (neoliberal globalisasyon) na nagbibigay ng higit na laya sa pananalanta ng mga dayuhang monopolyo kapitalista (TNCs) 3. Ilantad at labanan ang mga “market-based solutions” o ang business as usual approach sa climate policy
Dapat ipaglaban … 1. Demand shift of public resources away from military spending, debt payments and fossil fuel subsidies towards essential social services and adaptation support for vulnerable communities 2. Demand drastic legally binding reductions in GHG emissions according to the principle of CDR&RC 3. Demand liability payments/compensation from those principally responsible for destroying the climate and ecology, and violating human rights
The Business Behind Climate Change Paul Quintos

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The Business Behind Climate Change Paul Quintos

  • 1. Philippine 1st National Grassroots Climate Conference on Climate Watch Change Alliance
  • 2. Pambungad Banggaan ng pribadong ganansya (tubo) vs. pampublikong interes o panlipunang pangangailangan. Sa kalagayang konsentrado ang pag-aari at kontrol sa resources sa kamay ng iilan, -- sa kamay ng mga monopolyo kapitalista -- ang nananaig ay ang pribadong interes nila sa halip na interes ng kabuuan o ng nakararaming mamamayan. Makikita ito sa papel ng TNCs at IFIs sa pagbabago sa klima at pag-init ng mundo
  • 3. Papel ng TNCs sa pagbabago ng klima  Tuwirang kontribusyon sa pagbuga ng GHGs  Kontrol o impluwensya sa kabuuang padron ng produksyon at konsumo sa lipunan  Impluwensya sa mga patakaran ng gobyerno  … at multilateral institutions (international financial institutions)  Impluwensya sa mga patakaran at programang tugon sa problema ng pagbabago sa klima
  • 5. CPA LALOG
  • 6. 1. Kontribusyon ng TNCs sa pagbuga ng GHGs  1992 UN Centre for Transnational Corporations (UNCTC) report: “The influence of TNCs extends over roughly 50 % of all emissions of greenhouse gases. This includes about half of the oil production business, virtually all of the production of road vehicles outside of the centralized economies, most CFC production, and significant portions of electricity generation and use.”  Global oil and gas industry ay dominado ng 4-5 TNCs. CO2 emissions ng Exxon Mobil + Gazprom noong 1997 ay mas malaki sa kabuuang CO2 emissions ng Indonesia, Malaysia, Thailand, Pilipinas, Mexico,
  • 7. 1. Kontribusyon ng TNCs sa pagbuga ng GHGs  production and use of energy-intensive metals are also largely controlled by TNCs. Around 30-40 TNCs dominate the exploration, mining, smelting, refining, and selling of metal concentrates and metals in the world market, with a trend towards increasing concentration in recent years [source: MMSD]  TNCs have now come to monopolize virtually the entire value chain of food production from farming to distribution, from seeds to fertilizers and equipment,
  • 8. “Globalisasyon”: Northern TNCs outsource GHG emissionsemissions generated by a  E.g. the GHG to the South US TNC that operates a manufacturing plant in China that exports all of its output back to the US would be counted entirely as GHG emissions from China.  Around 8.9% of China’s GHG emissions in 2005 was due to the production of goods destined for US consumption [Source: Weber et al, 2008]  35.4% of CO2 emissions from energy consumption in the Philippines in 2000 was due to production for export [source:
  • 9. 2. Impluwensya sa kabuuang padron ng produksyon at konsumo  1992 UNCTC Report: “TNCs are also intimately involved with implementing and operating technologies which cause the problems that confront us... It is the international corporations which manufacture and market on such a large scale that, through their decisions, establish industry standards for production technologies, which are then replicated and dominate the industry.  Sa agri: ”Nitrogen fertilizer production is also in the hands of TNCs which have historically promoted patterns of over-use, often in conjunction with government development schemes.”
  • 10. 2. Impluwensya sa kabuuang padron ng produksyon at konsumo  Sa transport: “big automobile producers in the US have discouraged both public transportation and non-fossil fuel based transportation, and continue to produce automobiles which are far less fuel efficient than available prototypes. “  Sa kuryente: “TNCs which play an important role in designing equipment and plants, have inappropriately placed priority on size rather than efficiency.”  The UNCTC concludes, “Even when the TNC role is not dominant, it is difficult to identify any area of manufacturing in which TNCs do not play a significant role at some stage in the production-to-consumption process.”
  • 11. 3. Impluwensya sa mga patakaran ng gobyerno  Mining act  Biofuels act  Coal-fired power plants  Chemical-intensive agri  Lack of support for community-based adaptation (education, health, disaster-preparedness, R&D, etc.)
  • 12. 4. Impluwensya sa mga patakaran ng multilateral institutions at IFIs  The World Bank remains heavily committed to investments in carbon-intensive energy projects and reforms in energy sectors that focus on large-scale, privatised energy provision.  from 1997-2007, the Bank financed 26 gigatons of CO2 emissions – about 45 times the annual emissions of the UK. [Source: WWF-UK]  This year World Bank Group's total lending to coal, oil and gas is up 94% from 2007, reaching over $3 billion. Coal lending alone has increased 256% in the last year. It reported lending over $2.5 billion for renewable energy and energy efficiency but the bulk of this went to large hydropower projects and supply-side energy efficiency.  Only $476 million went to support “new” renewables such as wind, solar, biomass, geothermal, and hydropower projects that will produce up to 10 MW per facility.
  • 13. WB as Climate Banker  The Bank is using Climate Investment Funds to push the neoliberal corporate agenda on climate change (carbon offsets, carbon trading, proprietary technologies, business-as-usual)  donor-driven scheme that places developing countries at a disadvantaged position.  new conditionalities on developing countries.
  • 14. 5. Impluwensya sa mga patakarang tugon sa pagbabago sa aklima of fake  Exxon Mobil funded network citizens' groups and bogus scientific bodies (after the IPCC was created) that have been publicly claiming that the science of global warming is inconclusive. [Source: Monbiot, George, “The Denial Industry” The Guardian, Sept. 19, 2006 ]  corporate interests in the US have lobbied against the ratification of the Kyoto Protocol and watering down its content during negotiations (hence the introduction of market-based mechanisms: ET, JI at CDM).  1,500 industry or corporate lobbyists at
  • 15. Corporate Message to the UNFCCC  That technology can fix the problem of global warming. AND that business, particularly the high tech companies from the advanced industrialized countries are the only ones or the best ones that can deliver these solutions  That mitigating or reducing GHGs and adapting or dealing with its adverse consequences will require vast amounts of money. AND therefore private capital is necessary to provide the financing but as investments
  • 16. Corporate Message to the UNFCCC  That if we want to change people's behaviour --production and consumption patterns -- the best way to do it is through price incentives in the market.  Climate policy (whether multilateral or domestic), should be aimed at enabling private capital to do its magic.
  • 17. Ang resulta? Profit- oriented Climate Policy  Carbon trading (EU-ETS, JI, CDM, etc.)  Biofuels  Carbon-capture and storage  Nuclear energy  REDD  Geo-engineering  Etc.
  • 18. EU-Emissions Trading Scheme. binigyan ng libreng mga permit to pollute ang malalaking kumpanya sa Europa, tapos pwede nila ito ibenta o bumili sa iba. Pwede rin mag-import na lang ng CERs mula sa CDM projects mula sa mahihirap na bansa.
  • 19. Ano dapat ang ating tugon? Kilusang masa! 1. Labanan operasyon ng mga TNCs at mga proyekto ng gobyerno na sumisira ng ating kabuhayan at kapaligiran, at singilin sila sa kanilang pananalasa 2. Labanan ang mga patakaran sa ekonomya (neoliberal globalisasyon) na nagbibigay ng higit na laya sa pananalanta ng mga dayuhang monopolyo kapitalista (TNCs) 3. Ilantad at labanan ang mga “market-based solutions” o ang business as usual approach sa climate policy
  • 20. Dapat ipaglaban … 1. Demand shift of public resources away from military spending, debt payments and fossil fuel subsidies towards essential social services and adaptation support for vulnerable communities 2. Demand drastic legally binding reductions in GHG emissions according to the principle of CDR&RC 3. Demand liability payments/compensation from those principally responsible for destroying the climate and ecology, and violating human rights