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The UN Climate Summit in Doha has agreed the Doha Climate Gateway, including the agreement of a second commitment period of the Kyoto Protocol which commits Europe, Australia and several other developed nations to emissions reduction to 2020.

Raising ambition
Jonathan Grant, Director, PwC sustainability & climate change said:

"Governments in Doha achieved little more than was expected - the really contentious issues of financing and ambitious action were postponed. The UN climate negotiations are still on the rails, but it will only get harder as we get closer to 2015. Doha sends a clear signal that it will be very difficult to agree a meaningful climate treaty in 2015."

“The PwC Low Carbon Economy Index shows the levels of reductions required by all major developed and developing economies. To keep to 2 degrees the increase in ambition has to come before 2020.”

Carbon markets
Jonathan Grant, director, PwC said:

"Lots of factors which could influence the carbon market were discussed in Doha, such as reforms to the CDM, eligibility and carry over. With carbon prices at record lows, the only significant boost would have come if the EU had upped its target to 30%. Those signing up to Kyoto again took on targets in line with their national legislation.

“Japan, EU, Australia, Norway, Switzerland and others lined up to renounce the use of surplus allowances carried over from the first commitment period. This helps to retain some integrity in the Protocol which now applies to countries with only 15% of global emissions.”

Finance
Celine Herweijer, partner, PwC sustainability & climate change

“Money talks at the climate negotiations and finance as always became a critical part of the negotiations.
It was always going to be sticking point at Doha, only weeks away from the end of the Fast Start Finance period. There were a smattering of commitments, from UK, Norway and others. This includes a UK-German facility to support NAMAs, an idea which could speed up climate compatible development in developing countries.”

“Countries have been called on to submit plans on how they plan to reach the 100Bn/yr target by 2020. While that didn’t feel ambitious enough to developing nations, it was enough to prevent a de-railing. Next year we can expect developing countries to demand more. There needs to be a concrete plan to increase funding over the next 8 years or the financing gap risks becoming much too high.”

Loss and Damage
Celine Herweijer, partner, PwC said:

“The decision to establish an international mechanism for loss and damage is a landmark one. In practical terms it could include, for example, a climate risk insurance facility. The Doha text itself only enshrines the principle of loss and damage, not agreement on the mechanism. That discussion will come back next year.

“For the talks to make progress on this issue, the discussion needs to move towards viewing this more constructively as another form of adaptation finance. Finance is already on the table to build climate resilience in vulnerable countries, and finding more effective ways internationally of managing loss and damage is an important piece of this jigsaw.”

The process
Sam Bickersteth, director, PwC and CEO, the Climate & Knowledge Development Network said:

“We were reminded that the UNFCCC is a process which grinds along at a pace that doesn’t match the urgent needs to reduce emissions, address impact and provide finance.

“Amongst the good news, an agreement on improving the gender balance of delegations, and more climate finance pledges - well done the UK, Norway and the EU. This includes a UK-German facility to support NAMAs, an idea which could speed up climate compatible development in developing countries.

“The calls for climate finance and more ambition both within the Kyoto Protocol and outside have not as yet materialised – some countries seem to be heading in the opposite direction by announcing plans for emissions rises (e.g. Russia and Kazakhstan).”