Keynote Address by Dr.Maxine Olson, UNDP Resident Representative and UN Resident Coordinator

Hon'ble Minister of Environment and Forests, Mr. T R Baalu,
President, Federation of India's Chambers of Commerce and Industry, Dr.A.C Muthiah,
Chairman, FICCI Environment Committee, Mr. Salil Singhal,
Distinguished delegates,

On the behalf of UNDP, I would like congratulate the organizers of this Conference for having taken this initiative to facilitate a dialogue and exchange of views on this very important subject of climate change and the financial sector.

There is widespread scientific consensus that climate change is a reality-It is also increasingly clear that climate change is a sustainable development issue. New and stronger evidence that human activity is the major contributor to global climate change continues to mount. Every day deserts grow larger, the atmosphere grows more polluted and warmer and the fisheries and forests upon which we all depend shrink. Equally important, our climate becomes more unpredictable and because of this unpredictability, the damage from natural disasters continues to mount. In the next ten years, it is estimated that annual losses are likely to reach US$ 150 billion. Floods devastated Europe last year, fires wrecked havoc in North America and Australia this year, monsoons failed in South Asia for several consecutive years, leading to severe drought and misery for a large part of the sub-continent. Fortunately, India has had a very good monsoon this year, but in a sense, this only serves to build expectations for and dependencies on future good years, which may or may not, arrive.

We must accept that climate change is caused by us-people-and the technologies that we use. Population growth, coupled with economic growth, have resulted in larger, more noxious emissions. What was previously thought of as the problem of the richer countries, is now commonly accepted as everyone's problem, although with a variable responsibility in its solutions. This meeting, sponsored by FICCI, is one which focuses on one of the mechanisms devised to address the issue of climate change, with an appreciation of the different roles that each of us can play in reducing greenhouse gas emissions.

UNDP is pleased to be associated with this meeting, because of our commitment to sustainable environmental management. I personally have a double purpose in this commitment-first, because the environment is the fundamental base of the life on earth. Beyond our almost continues focus on the species homo-sapiens and meeting our own needs, the environment is a wonder whose importance exceeds our individual selves, and it must be cared for and sustained. That is my own, personal belief. As the representative of the United Nations Development Programme in India, the reason that I am here today, is because of our focus on Human Development. Our goal is the continual improvement in quality of life, particularly for those who have so little, and the continuous growth of human capacity to live meaningful lives, and to help to create conditions which the people themselves, can define, for themselves, what is meaningful. A key condition for human development, of course, is a physical environment that support human life. It is the responsibility of we, the people, to ensure that we use the environment in a such a way that we sustain it, rather than deplete it, and thereby deprive others of their right to an improving life quality.

Climate change poses a particular threat to those who are at the heart of our work, because it increases the vulnerability of the poorest in terms of the fundamentals of their lives-access to food and water and human health itself. It adversely affects human health through degrading air quality and increased exposure to vector and water-borne diseases. It speeds ecosystem destruction and loss of biodiversity, and because of all of the above, it jeopardizes livelihoods.

It is clear that the global human development as I have defined it is far bigger than any one organization. It has also become increasingly clear that our traditional partnerships with Governments around the world are not enough. This fundamental and life-compelling goal can only be accomplished through the effort of all sectors of society and especially you-the private sector. Your technology, your capital, your network, your ability to act, are essential, not only to provide for your shareholders, although we know that you have to do that too, but also to be able to sustain and to enhance, life as we know it on this planet.

Today you will be focusing on the Clean Development Mechanism, other carbon reduction funding mechanisms, and mechanisms to reduce risk in this increasingly unpredictable world.

Much of this conversation is now possible, because of technological advance that have provided the potential for reducing emissions, for predicting what the impact of these technologies can be, and for predicting climate itself.

Technological adaptation to slow and ultimately reverse the process of climate change, is evolving and shows promise. It cannot, however, operate in a vacuum. It needs to be integrated into the framework of overall national development. It is important that those who are most vulnerable to climate change-those that are poorest-not be in the position of seeing their livelihood disappear, with no alternative in sight. there is a need to learn and to develop technologies that can serve the dual purpose of long term climate change mitigation, and short term livelihood sustainability. There is a need to translate this learning into ground level activities for economic development and poverty eradication at local levels, and to ensure that this success feeds back to national policy and planning processes. In short-we need to create a virtuous cycle, based on technology for a cleaner, safe environment, that supports sustainable human development.

The Clean Development Mechanism (CDM) provides new opportunities for the private sector to participate in the process of emission reduction. CDM will not solve all problems of climate change; nevertheless it is an innovative instrument that can potentially influence investments, technology and overall economic growth in a country in the long term.

UNDP has worked very closely with a number of countries in developing innovative pilots that have potential for CDM financing. One example is Biomass Power Generation from sugarcane bagasse. Brazil, as one of the largest sugarcane producer in the world, can supply over 42 million tones of biomass annually as fuel for electrical power generation. Through a partnership with UNDP, a process was developed to generate electricity in state-of-the art aero-derivative gas turbines using sugarcane waste residues as fuel. The pilot project has stimulated the commercial use of sugarcane trash as fuel for power generation in conventional steam boiler and turbines throughout Brazil. The aero-derivative technology has the potential to reduce greenhouse gas emissions and particulate emissions estimated at 40 million tones of CO2 per year.

In China, UNDP is supporting a project on commercialization of energy efficient CFC-free refrigerators. Given current technology and practice, refrigerators over the next decade will consume 601 billion kWh of energy over their expected lifetimes, accounting for an annual average of 60 million tones of CO2 emissions. China is now the single largest refrigerator market in the world but their refrigerators consume 60 per cent more energy per liter of volume than in other countries. UNDP is assisting the private sector to commercialize energy-efficient refrigerators, by providing refrigerator and compressor manufacturers with technical training to improve energy efficiency, while simultaneously supporting new standards to ensure that minimum efficiency increases. Besides reducing CFCs, the project is expected to save approximately 100 million tones of CO2 emission from 20 million homes during the 15 year life span of refrigerators built through this initiative.

In India, we are exploring a similar initiative for market transformation in the refrigeration sector with the Bureau of Energy Efficiency and private manufacturers. We are also working with the smaller manufacturers for the phasing out of CFCs. In addition, we have a number of robust partnership with the private sector and the government on issue related to renewable energy and energy-efficiency sectors such as bio-methanation where we have assisted in the demonstration of different state-of -the art waste to energy technologies in paper mills, slaughterhouses and other agriculture and food-processing sectors. Turning waste into resources is one of the great challenges of the 21st century. It is also one which, if done thoughtfully, can have an important impact on poverty.

The Government of India has been proactive and supportive of global discussions on climate change. They are signatories to most conventions and hosted the last Conference of Parties on Climate Change in New Delhi. I am new to India, but before I came I was already aware of the dynamic partnership between civil society, private sector and the state, which has resulted in the pollution levels in the city of Delhi going down dramatically. This was also, I understand, a combination of the pull of technology, and the push of standard setting. Credit needs to be given to the Government for having taken on such a major challenge.

I hope that these examples have provided some idea of the work of UNDP, in expanding the range of options available to government and communities for adaptation to climate change variability and change within the broader context of poverty reduction and sustainable development.

We work in over 160 countries. Energy and environment issues are at the heart of our programme globally-the synergies and linkages between energy and environment and human development are clear. Our partnerships are expanding - with NGOs, civil society groups and with the private sector.

We are proud to partner with FICCI and its members. I would like to congratulate you on for taking up this issue, and I wish the conference every success. We, in UNDP would very much like to be a part of the movement to take this challenge further.

Thank You