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Bali

13 October 2018

Remarks at the Climate Finance Ministerial Meeting

António Guterres

This event comes at an opportune time.
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The Paris Agreement calls for governments to keep global temperature rise to well below 2 degrees and as close as possible to 1.5 degrees.Ìý
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We are way off target.
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Climate change is running faster than we are.
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The commitments made so far by Parties to the Paris Agreement represent just one-third of what is needed.
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We risk irreversible catastrophe if we don’t act more quickly and with more ambition.
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The world has already warmed by 1 degree.Ìý
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We are already seeing the consequences for people, economies and ecosystems everywhere.
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The IPCC’s 1.5-degree report released last week is clear.
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Limiting global warming to 1.5 degrees is still possible and will prevent some of the worst-case scenarios.
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To limit warming to 1.5 degrees, greenhouse gas emissions must come down by 45 per cent by 2030 and reach net zero by 2050.
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To achieve that, we absolutely must bend the emissions curve by 2020.
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As the UN Intergovernmental Panel on Climate Change stressed, limiting temperature rise to 1.5 degrees will require rapid, far-reaching and unprecedented changes in all aspects of society – especially how we manage land, energy, industry, buildings, transport and cities.
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That means ending deforestation and planting billions more trees.
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It means drastically reducing the use of fossil fuels and massively increasing renewable energy.
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It means switching to climate-friendly sustainable agriculture.
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And it means considering new technologies, such as carbon capture and storage.
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I see three areas where you can make a difference.
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First, we need a new economic framework that integrates climate and disaster risk in all aspects of finance, planning and budgeting.
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Last year, the economic costs of climate-related disasters hit a record 320 billion dollars.
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By 2050, climate change could reduce annual GDP in some countries in South and Southeast Asia by up to 4 per cent.
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We cannot afford to ignore climate risk.
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Second, we need effective economic policy and fiscal instruments.
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We need to put a meaningful price on carbon and end fossil fuel subsidies, which today amount to 373 billion dollars a year.
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Carbon pricing and ending fossil fuel subsidies can promote the low-carbon and climate-resilient growth we need.
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Carbon taxes or emissions trading systems are now in place or planned in 70 jurisdictions worldwide.
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But this coverage amounts to only one fifth of total global emissions.
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According to the 2018 New Climate Economy report, carbon pricing and ending subsidies could generate nearly 3 trillion dollars in government revenues or savings by 2030.
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Third, we need fundamental shifts in climate financing.
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We need to turn global investment in climate action from billions to trillions.
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The money is there but the policies that will liberate it are weak or non-existent.
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Mobilizing private sector financing is essential.
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But public financing and policies need to provide the foundation for the private sector to embrace climate action.
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Governments need to encourage their banks to support green financing and innovative financial instruments – such as green bonds -- and debt instruments that can strengthen the resilience of vulnerable nations.
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We need to see the Green Climate Fund become fully resourced and operational.
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It is also essential that governments fulfil their pledge to mobilize 100 billion dollars a year by 2020 for climate action.
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In this regard, President Emmanuel Macron of France and Prime Minister Holness of Jamaica have accepted my invitation to co-chair an initiative to support a political process to meet this pledge.
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Finally, we need to avert investment decisions in infrastructure and agriculture that would lock in irreversible, high-carbon unsustainable development.
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Some 90 trillion dollars of infrastructure investment is expected by 2030.
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It needs to be climate friendly.
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As I said, the next few years are critical.
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So, I think you can see how your leadership is needed.
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Next September, I will convene a Climate Summit to mobilize action and enhance ambition.
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We have six areas of focus: energy transition; industry transition; resilience; local action and cities; finance and carbon pricing; and nature-based solutions.
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We need to show that countries and businesses are putting in place the policies and instruments that we need.
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Between now and then, we have the annual UN Climate negotiations in Katowice, in December.
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It is important that this COP is a success.
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We cannot afford another Copenhagen.
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We need to come out of the meeting with a robust framework that allows countries to operationalize and implement the Paris Agreement.
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The negotiations in Poland will require strong and visionary leadership from around the globe.
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I count on all leaders to call on their negotiators to resolve all sticking points and insist on progress.
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I encourage you all to engage in moving these critical issues forward.Ìý
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Thank you.Ìý