Archives For Poland

SustainabilityBy Gordon Hewitt, sustainability advisor, ACCA

The COP18 climate negotiations came to a close in Doha on 8 December, a day later than scheduled and following an all-night final negotiation session.

The two-week conference resulted in nations signing the Doha Climate Gateway. This outcome document makes modest progress in addressing the risks associated with climate change, with the main points including a continuation of the Kyoto Protocol, reiteration of commitments on long-term climate finance and the inclusion of ‘loss and damage’ in a conference outcome document for the first time. The conference also saw progress on the Durban Platform (ADP) towards an agreement covering all countries by 2015.

The Kyoto Protocol, which is currently the only binding agreement under which developed countries have committed to cut their greenhouse gas emissions, has been extended for a period of eight years from 1 January 2013. Whilst the continuation does maintain some degree of forward momentum, it will not result in a major reduction in emissions, as many developed countries have not signed up to the second commitment period. Countries that have signed up include the EU, Norway and Australia; whilst those who have not include the US, Japan, Canada and Russia.

As the Protocol only covers around 15 per cent of emissions, forging an agreement that encompasses a much greater proportion of emissions will be a key focus of future negotiations. A critical challenge will be the distinction between developed and developing countries, as the world has changed enormously since the UNFCCC was negotiated in 1992, yet the classification of countries has remained the same.

Developed countries have reiterated their commitment to scale up climate finance, mobilising US$100bn per year by 2020, but practical commitments were scarce and few nations made any pledges that cover the period between 2013–2020. A number of European countries, including the UK, Germany, France and Denmark announced concrete finance pledges for the period up to 2015, totalling approximately US$6bn. The lack of further finance commitments was seen as a major disappointment from developing countries.

Much of the negotiation focused on the inclusion of ‘loss and damage’ proposals within the outcome document. This term refers to the dispersion of funds to vulnerable communities for the loss and damage caused by climate change. A particular opponent of this term was the US, who did not want any language connoting legal liability to be included in the text, as this could result in unlimited amounts of litigation. Whilst no international mechanism on loss and damage was set up in Doha, the possibility of setting one up in the future has been included in the agreement, a point that will undoubtedly be a major focus of COP19 in Poland next year.

A common criticism of UNFCCC negotiations has been the decision making process, which relies upon consensus between all parties. This has allowed nations to veto and block policies that are against national interest and resulted in many stalled negotiations and missed opportunities over the years. In order to address this issue, Mexico and Papua New Guinea have proposed to introduce majority voting to the COP process. This was not discussed officially in Doha, but will likely be included on the agenda of COP19.

Whilst some progress was made at COP18, it is widely regarded that the commitments made by governments to date are failing to address the risks posed by climate change and if emission levels are not curtailed soon, we will experience a level of warming that will have widespread negative consequences. The next two years leading up to 2015 are critical if governments are going to reach an agreement that will limit warming to 2C – the commonly agreed limit to avoid dangerous climate change.

XXII Economic Forum in Poland

accapr —  18 September 2012 — Leave a comment

By Rosana Mirkovic, head of SME policy, ACCA

Between 4 to 6 September European politicians and business leaders gathered at the 22nd Economic Forum in the spa resort town of Krynica Zdrój, southern Poland.

Under the title ‘New Visions for Hard Times – Europe and the World Confronting the Crisis’, leaders discussed current models of integration, the economic system, and the substantial reforms required to tackle the on-going economic crisis. Much of the debate was dedicated to the competitiveness of the region and how its businesses can make greater impact on the global stage.

And as the title suggests, this was a high level gathering, attracting regional heads of state, international organisations and the major regional and global business leaders. Most impressively, there was a feeling of a genuine need for the government, business and the NGO sector to work together to address some of the socio-economic problems that remain, despite the remarkable period of transition the region has witnessed. With such a rich audience, the programme provided a similar tapestry of topics; from health, pensions and the ageing Europe, to future energy sources, technological innovations and the social media.

Inevitably, with the Forum’s host being so close to the Eurozone (currently expected to join the Euro in January 2016), the various angles on the Eurozone crisis were debated at length.

I was pleased to take part in a PwC panel debate ‘CEE Goes Global – the Expansion of Foreign Companies in Central and Eastern Europe’, which discussed the chances and the perspectives of the private entrepreneurs with their efforts to expand abroad and the obstacles they have to overcome in order to conquer new markets. The panel also debated the importance of such enterprises for the growth of their home regions and national economies. With larger corporations usually dominating such gatherings, it was especially pleasing to see that smaller, growing businesses were recognised for their dynamism and their increasing presence in international trade.

There was agreement among the panel that while national governments are keen to help the SME sector internationalise, their efforts tend to be mis-directed. The participants, who included presidents of boards of some of the major Polish exporting firms, agreed that government actions ought to be targeted towards making trade easier and less costly and removing barriers to growth and innovation. Other than that, there was reluctance to promote further state interference, and a real sense that entrepreneurs simply need to be left alone to do what they know best. Most interestingly, the extent to which the international expansion of Polish companies benefits the national economy, and as such warrant government support, was raised a number of times – as well as the effect of the country’s branding in boosting the international prospects of its companies. It’s difficult to imagine that either of the questions would be asked if a similar event was held in the UK, for example.

The overwhelming sentiment to note from the Forum however is the general optimism about the region’s future. Having witnessed moderate but steady growth throughout the economic downturn, some degree of retrospection was a common thread that tied together much of the conference’s programme, showing how far the region has come and most importantly, the role of business in opening up the region’s potential and cooperation even further.