ICC WORLD BUSINESS BRIEF

Third conference of the parties of the UN Framework Convention on Climate Change


ICC represents over 7500 businesses and associations in 130 countries around the world. ICC has followed and participated in the UN Framework Convention on Climate Change (UNFCCC) since its inception. This paper summarizes the views of ICC, and reaffirms ICC's continued commitment to the UNFCCC process.

ICC will endeavour to contribute to a successful outcome of the Third Conference of the Parties (COP3). We call upon governments to support business in its efforts to address climate change, as it is business and industry that will be critical to the success of any governmental initiative in the area of climate change. The contribution of business and industry can be maximized if governments involve them in this critically important process of climate change policy development and implementation.

ICC is committed to addressing climate issues

ICC is committed to the UNFCCC process. ICC members fully acknowledge that business and industry have a continuing responsibility to respond to the challenge of climate change.

Business and industry, in partnership with governments, will continue to develop and participate in voluntary programmes to respond to the climate change challenge.

COP 3 should recognize voluntary actions as an effective policy option for implementing the goals set out in Kyoto. Voluntary measures reduce emissions; encourage ingenuity, technology and private sector financing; offer flexibility; and are therefore often a tool of choice among government and industry representatives working towards a balanced climate policy objective.

Climate change is a long-term, global issue

Climate change policies will have significant impacts on such important economic aspects as employment, investment, trade and competitiveness and, therefore, will determine prospects for economic growth, per capita income advances and standards of living. A balance in policy selection that will promote economic growth as well as climate change goals is required.

Implementation of the UNFCCC affects business operations, employees, customers, shareholders and the governments that depend on business for so many societal needs.

Non-Annex I countries should accept the need for their participation in climate change initiatives in an appropriate, differentiated, politically and socially acceptable fashion, if the global objective of the UNFCCC is to be achieved.

The displacement of industry from one country to another is unlikely to benefit the global environment and climate change policies should not damage the competitiveness of particular industries in particular countries.

Energy for development is critical in the context of climate change policies

Significant growth in the global economy is projected well into the next century, particularly in the emerging market economies and developing countries.

Even if current concerns over potential climate change result in concerted efforts to abate emissions of greenhouse gases, demand for energy and electricity will continue to grow significantly.

All forms of current energy sources, including nuclear, and of alternative and emerging energy sources, including renewables, will be required to meet projected growth in energy demand throughout the 21st century.

UNFCCC implementation must emphasize cost effectiveness and flexibility

The differences between national economies are important and should be reflected in goals and objectives that national governments undertake. Policy initiatives that national governments consider to achieve those goals and objectives will need to reflect not only differences in economic and societal structures, but also competing societal, environmental and economic priorities.

Flexibility in implementation of policy options with respect to timing and location can significantly reduce economic costs with the same ultimate climate change results. Without such flexibility, significant negative effects on economic growth will occur.

Exploration and development of options in addition to emissions reductions should be pursued -- such as sinks, mitigation and adaptation.

The UNFCCC should undertake further analysis of innovative market-based instruments, such as joint implementation and emissions trading.

Technology and innovation must be part of the solution

Business plays an integral role in the development, commercialization and dissemination of technologies, and in applying its broader experience and technical and managerial expertise to environmental challenges.

Business will continue to develop and participate in projects that bring to developing countries not only investment and technology, but also more environmentally sound management and operating practices.

Governments should promote a favourable investment climate in all countries and encourage investment in scientific research of climate change and in the development and dissemination of technology, and by promoting investment in projects that mitigate the potential impacts of climate change.

Technology development and commercial dissemination and policy initiatives requiring major capital investments constitute long-term challenges that will need to respect investment cycles and to address and resolve existing barriers to implementation.


Head of Delegation: Clement Malin
Chairman of the ICC Joint Working Party on Climate Change: Juhani Santaholma