United Nations Climate Change
Our aim is to help our clients understand the potential opportunities and challenges that COP25 may have on their business.
The Paris Conference on Climate Change finally yielded results. On December 12, the 195 countries meeting at this conference approved a final agreement that is expected to enter into force in early 2016. What are the most important details of this agreement?
All of the above is to be framed within the Green Growth strategy (the master strategy behind the 2014-2018 National Development Plan: “All together for a new country"), which seeks to persuade all productive sectors to adopt practices that generate the added value that will lead to economically, socially and environmentally sustainable growth. This means increased productivity, competitiveness, sustainability and efficiency in the use of resources in the different sectors of the economy, while greenhouse gases emissions are being reduced. While the emission reduction goals are managed as a whole, under the aegis of the nation’s contribution it is expected that the above will particularly impact certain sectors of the economy, namely transport, industry, power generation and mining (i.e., producers of fugitive emissions). This is to be achieved taking into account that the programs will be implemented by sectors to the point of even including climate change considerations in the National and Strategic Interest Projects (Proyectos Estratégicos de Interés Nacional – PINES).
Therefore, although some are unhappy with the outcome of COP 21, others think it is a great improvement on the approach that has to be taken to the problem of global warming; whatever position is taken, however, there will be measures and regulations that will force many domestic productive sectors to implement different measures to mitigate their impact, and these cannot be undertaken exclusively by the private sector. International aid (economic and technological) and facilitation by the government will be required in helping to achieve them.
IMO 2020 is almost upon us. Readers are well aware of the impending switch to 0.5 percent fuel mandated by Annex VI of MARPOL which will cause an anticipated drop in HSFO demand, the potential hazards of new untested LSFO blends, the concerns around scrubber operations, the debate over open loop versus closed loop, and the myriad of other risks associated with the impending regulatory change.