Co-hosted by the Federal Office for the Environment (FOEN), Government of Switzerland, and in collaboration with Building Bridges
Background
Article 2, paragraph 1, of the Paris Agreement states that the Agreement, in enhancing the implementation of the Convention, including its objective, aims to strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, including by:
(a) Holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change;
(b) Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production; and
(c) making finance flows consistent with a pathway towards low GHG emissions and climate-resilient development.
Article 2, paragraph 2 states that this Agreement will be implemented to reflect equity and the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.
Mandate: At CMA 4, Parties decided to launch the Sharm el-Sheikh dialogue between Parties, relevant organizations and stakeholders to exchange views on and enhance understanding of the scope of Article 2, paragraph 1(c), of the Paris Agreement and its complementarity with Article 9 of the Paris Agreement. Parties further requested the secretariat, under the guidance of the Presidency of the twenty-seventh session of the Conference of the Parties, to organize two workshops in 2023 and to prepare a report to CMA 5 on the deliberations at these workshops (Decision 1/CMA.4, paragraph 68). The first workshop under the Sharm el-Sheikh dialogue took place on the 19th and 20th July 2023 in Bangkok, Thailand.
Background: Since 2018, the Standing Committee on Finance has conducted a technical analysis of information relevant to Article 2, paragraph 1(c) through various mandates, including a Biennial Assessment and Overview of Climate Finance Flows (BA) and most recently a synthesis of views of Parties and non-Party stakeholders and a mapping of information relevant to Article 2, paragraph 1(c). The synthesis of views, mapping of information, and the BAs, inter alia, explore the relationship of Article 2, paragraph 1(c) with Article 9 of the Agreement and the relevance of efforts related to Article 2, paragraph 1(c) to Article 9 of the Agreement (See the third (2018), fourth (2020)and fifth (2022) BA as well as the synthesis of submissions and further mapping of information related to Article 2, paragraph 1(c) of the SCF in 2022). In addition, the SCF received a mandate to continue its technical work on ways to achieve Article 2, paragraph 1(c) including options for approaches and guidelines for implementation (Decision 14/ CMA.4, paragraph 4). Relevant recommendations by the SCF regarding Article 2, paragraph 1(c) are included in the third (2018) and fifth (2020) BA. For example, the third BA recommended the SCF to continue its work in the mapping of available data sets that integrate climate change considerations into insurance, lending and investment decision-making processes, and to include information relevant to Article 2, paragraph 1(c), of the Paris Agreement in future BAs. The fifth (2022) BA further encouraged climate finance providers to enhance their reporting on elements relevant to Article 2, paragraph 1(c), of the Paris Agreement, with a view to increasing the ability to advance work related to pathways for low-emission, climate-resilient development. Parties have shared views and positions on Article 2, paragraph 1(c) in tandem during the technical phase of the first global stocktake, that will culminate with the political consideration of outputs to take place at CMA 5.
Objectives
The objective of the second workshop under the Sharm-el Sheikh dialogue is to build on the discussions during the first workshop and to advance the understanding on the scope of Article 2, paragraph 1(c) and its complementarity with Article 9 of the Paris Agreement. The workshop aims to leverage a diverse set of perspectives from the public, private and non-governmental financial sector and will be structured along four substantive sessions:
- Session 1: Understanding the potential scope, challenges and opportunities of implementing Article 2, paragraph 1(c), of the Paris Agreement, and its complementarity with Article 9, at international level;
- Session 2: Mapping the potential intended and unintended consequences of actions to implement Article 2, paragraph 1(c), of the Paris Agreement and potential safeguards;
- Session 3: Complementarity with Article 9: How to ensure that finance supports country-driven action to realize Article 2 of the Paris Agreement, and what is the role of Article 2, paragraph 1(c) in relation to Article 9?
- Session 4: Linkages and moving forward inside and outside the intergovernmental process relevant to Article 2, paragraph 1(c) of the Paris Agreement, and its complementarity with Article 9.
The provisional draft programme presents the themes and topics for discussion at the second workshop. It is informed by and takes into account the views expressed by Parties and non-Party stakeholders during the first workshop, in their submissions, as well as the views expressed during informal consultations held with interested groups of Parties and relevant stakeholders during the fifty eight session of the Subsidiary Bodies in Bonn in June 2023.
Format and Participation
The second workshop under the Sharm el Sheikh dialogue will take place over two days on the3rd and 4th October at the International Conference Centre Geneva (CICG) in Geneva, Switzerland, co-hosted by the Federal Office for the Environment (FOEN), Government of Switzerland and in collaboration with Building Bridges taking place from the 2nd to 5th October also in the CICG premises. The second workshop is open to nominated Parties, relevant organizations and stakeholders for on-site participation. To ensure inclusive and broader participation, the dialogue will be held in a hybrid format. Participants to the Sharm el-Sheikh Dialogue will obtain access badges to the Building Bridges initiative, and will have the opportunity to attend, as they wish, any of the events of the conference from the 3rd to the 5th October.
On behalf of the CMA Presidency, Mr. Tosi Mpanu Mpanu has been appointed as the facilitator of the Sharm el-Sheikh dialogue, to guide the discussions among Parties relevant organizations and stakeholders in an inclusive, open and transparent manner. Depending on the topic, the Sharm el-Sheikh dialogue will be conducted through a range of expert presentations, panel discussions, breakout groups and interactive plenary sessions. After each session, sufficient time will be dedicated to open discussion among all participants to exchange views on the input provided and to report back on the content of discussions in breakout group settings.
A report on the deliberations at both workshops will be prepared by the secretariat under the guidance of the Presidency, for consideration by the CMA at its fifth session.
Provisional programme
Webcast Day 1
Webcast Day 2
List of participants
List of participants of the Second workshop of the Sharm el-Sheikh Dialogue
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Day 1: Tuesday, 3rd October 2023
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| Time (CEST) |
Theme |
Guiding Questions |
| 08:30 - 09:00 |
Registration |
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| 09:00 - 09:30 |
Welcoming Remarks
- Ambassador Mohamed Nasr, COP27 lead negotiator
- Yolando Velasco, UNFCCC Secretariat
- Felix Wertli, Federal Office for the Environment (FOEN), Switzerland
- Patrick Odier, Chair - Building Bridges
Opening Remarks
- Ambassador Tosi Mpanu Mpanu, Facilitator of the Sharm el-Sheikh Dialogue
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09:30 - 10:00
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Keynote interventions: State of play of the financial system in relation to achieving the goals of the Paris Agreement, and opportunities to scaling up finance for low GHG emission and climate resilient development
- Luiz Awazu Pereira da Silva,bio former Deputy General Manager, Bank of International Settlements (BIS) – virtual
Presentation
- Avinash Persaud,bio Special Envoy on Investment and Financial Services to the Prime Minister - Government of Barbados, & Chair, CARICOM Commission on the Economy, Emeritus Professor of Gresham College
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- How can consistency of finance flows with the goals of the Paris Agreement be conceptualized, and what is the current status thereof in the financial system?
- What are the gaps in the current (climate) finance architecture and what are opportunities to scale up climate finance for low GHG emission and climate-resilient development in developing countries?
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Session 1
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Understanding the potential scope, challenges and opportunities of implementing Article 2, paragraph 1(c), of the Paris Agreement, and its complementarity with Article 9, at the international level
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| 10:00 - 11:15 |
Panel discussion on approaches and challenges to implementing Article 2, paragraph 1(c), of the Paris Agreement at the international level and opportunities in scaling up finance flows for low GHG emission and climate-resilient development (45 min)
- Caroline Wehrle,bio State Secretariat for International Finance, Switzerland
- Antoni Ballabriga,bio Global Head of Responsible Business, BBVA, and Member of the NZBA Steering Group
- Erick Decker,bio AXA, and Member of the NZAOA Steering Group
- Bing Leng,bio Member, International Sustainability Standards Board (ISSB) – virtual
Q&A (30 min)
- Moderator: Eric Usher, UNEP-FI
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- What are approaches and challenges to identifying pathways in the context of Article 2.1(c), and how do they differ across geographies and sectors?
- What policies or measures reflect the operationalization of Article 2, paragraph 1(c) of the Paris Agreement?
- What are opportunities and challenges in scaling up finance flows for low GHG emissions climate resilient development, taking into account complementarity with Article 9 of the Paris Agreement and fostering scaled up financial support?
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| 11:15 - 11:30 |
Coffee break |
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Session 2
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Mapping the potential intended and unintended consequences of actions to implement Article 2, paragraph 1(c), of the Paris Agreement and potential safeguards
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| 11:30 - 13:00 |
Expert roundtable on mapping policies and regulations with potential intended and unintended consequences of actions to implement Article 2, paragraph 1(c) of the Paris Agreement and their specific safeguards (60 min)
- Barbara Buchner, Global Managing Director, CPI
- Nick Robins,bio Professor in Practice, LSE
Presentation
- Atty. Kelvin Lester K. Lee,bio Commissioner SEC Philippines - virtual
Presentation
- Raphael Jachnik,bio Team Lead & Policy Analyst, Finance for Climate Action, OECD Environment Directorate
Presentation
Q&A (30 min)
- Moderator: Barbara Buchner, Global Managing Director, CPI
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- What are current policies, regulations and approaches to implementing Article 2, paragraph 1(c) of the Paris Agreement?
- What are potential intended and unintended consequences of these actions and measures?
- What safeguards are put in place to ensure an equitable and just approach to Article 2, paragraph 1(c) of the Paris Agreement?
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| 13:00 - 14:00 |
Lunch break |
| 14:00 -15:30 |
Panel discussion on potential intended and unintended consequences of actions to implement Article 2, paragraph 1(c), of the Paris Agreement and potential safeguards to avoid greenwashing for just and equitable pathways towards low GHG emissions, climate-resilient development (45 min)
- Michalli Harmsen,bio Deputy Co-chair Sherpa of the Coalition of Finance Ministers for Climate Action (CFMCA)
- Jean Boissinot,bio Head of the NGFS Secretariat, NGFS
- Ludivine Tamiotti,bio Head, Environment Section, Trade and Environment Division, WTO
- Igor Paunovic,bio Chief of the Climate and Development Strategies Unit, UNCTAD
- Faten Aggad,bio African High Level Panel of experts on the reforms of the multilateral system
Q&A (45 min)
- Moderator: Nick Robins, LSE
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- What are potential intended and unintended consequences of actions to implement Article 2, paragraph 1(c) of the Paris Agreement?
- How do potential intended and unintended consequences differ across countries, regions and sectors, and what is their impact on delivery of sustainable development and poverty eradication?
- What are key principles and safeguards for implementation to ensure a just and equitable pathway towards low GHG emissions, climate-resilient development and to combat greenwashing?
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| 15:30 - 15:45 |
Coffee break |
| 15:45 - 17:00 |
Breakout groups on mapping potential intended and unintended consequences in pursuing actions to implement Article 2, paragraph 1(c), of the Paris Agreement and potential safeguards to avoid greenwashing, for just and equitable pathways towards low GHG emissions, climate-resilient development
[Report back on afternoon (14:00-15:00) of Day 2] |
- What are potential intended and unintended consequences of actions to implement Article 2, paragraph 1(c) of the Paris Agreement?
- How do potential intended and unintended consequences differ across countries, regions and sectors, and what is their impact on delivery of sustainable development and poverty eradication?
- What are key principles and safeguards for implementation to ensure a just and equitable pathway towards low GHG emissions, climate-resilient development and to combat greenwashing?
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| 17:00 - 18:30 |
Building Bridges side events: Participants can avail of several small events held in the context of the Building Bridges conference (registration through the links) for example:
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Day 2: Wednesday, 4th October 2023
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09:00-09:45
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Building Bridges plenary session – Participants can avail of the Wednesday morning plenary session of the Building Bridges conference:
"Scaling Climate Finance to the Trillions"
- Dr. Mahmoud Mohieldin, High-Level Champion for COP 27
- Barbara Buchner, Global Managing Director - CPI
- Hubert Keller, Senior Managing Partner - Lombard Odier
- Avinash Persaud, Special Envoy on Investment and Financial Services to the Prime Minister - Government of Barbados
- Mattia Romani, Partner - Systemiq
Location: CICG, Room A
Further information on the theme of discussion available here: https://www.buildingbridges.org/event/bb23-plenary2/
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| Time (CEST) |
Theme |
Guiding Questions |
| 10:00-10:15 |
Introduction and Recap from Day I
- Ambassador Tosi Mpanu Mpanu, Facilitator of the Sharm el-Sheikh Dialogue
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Session 3
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Complementarity with Article 9: How to ensure that finance supports country-driven action to realize Article 2 of the Paris Agreement, and what is the role of Article 2, paragraph 1(c) in relation to Article 9? |
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10:15 – 11:30
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Panel discussion on complementarity of Article 9: how to ensure that finance supports country-driven action to realise Article 2 of the Paris Agreement, and what is the role of Article 2, paragraph 1(c) in relation to Article 9 and the NCQG. (45 min)
- Nancy Saich,bio Chief Climate Expert, European Investment Bank (EIB)
Presentation
- Teddy Mugabo,bio CEO, Rwanda Green Fund
- Sarah Zuegel,bio Financing the Global Transformation Financing/International Climate Initiative (IKI), BMWK, German Federal Ministry for Economic Affairs and Climate Action
- Amal Benaissa,bio Sustainable Finance Manager, Bank of Africa - virtual
Q&A (45 min)
Moderator: Preety Bhandari,bio World Resources Institute (WRI)
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- What is needed to ensure that finance flows are consistent with Article 2 of the Paris Agreement, in the context of equitable access to finance and to ensure that no one is left behind?
- How can Article 2, paragraph 1(c) enable supporting the scale up of climate finance, including with a view to the NCQG?
- How can climate finance under Article 9 be complementary to or support achieving Article 2, paragraph 1(c)?
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| 11:30 - 11:45 |
Coffee break |
| 11:45 - 13:00 |
Breakout Groups on how to ensure that finance supports country-driven action to realise Article 2 of the Paris Agreement, and what is the role of Article 2, paragraph 1(c) in relation to Article 9 and the NCQG.
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- What is needed to ensure that finance flows are consistent with Article 2 of the Paris Agreement, in the context of equitable access to finance and to ensure that no one is left behind?
- How can Article 2.1(c) enable supporting the scale up of climate finance, including with a view to the NCQG?
- How can climate finance under Article 9 be complementary to or support achieving Article 2.1(c)?
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| 13:00 - 14:00 |
Lunch break |
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Session 4
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Linkages and moving forward inside and outside the intergovernmental process relevant to Article 2, paragraph 1(c) of the Paris Agreement, and its complementarity with Article 9
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| 14:00 - 15:00 |
Report back session from Breakout Groups of Day 1 and Day 2
- Moderators of Breakout groups (Day 1 &2)
- Facilitator: Ambassador Tosi Mpanu Mpanu
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15:00 - 16:15
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Plenary session - Focussed exchange on linkages inside and outside the intergovernmental process relevant to Article 2, paragraph 1(c) and its complementarity with Article 9 of the Paris Agreement, and how should Parties and non-Party stakeholders move forward?
- Facilitator: Ambassador Tosi Mpanu Mpanu
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- What are the linkages, including actors and processes, inside and outside the intergovernmental process relevant to Article 2.1(c), and its complementarity with Article 9?
- What should be done to move forward on Article 2, paragraph 1(c) and its complementarity with Article 9 of the Paris Agreement under the intergovernmental process including the CMA?
- What should be done to move forward on Article 2, paragraph 1(c) of the and its complementarity with Article 9 of the Paris Agreement outside the intergovernmental process?
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| 16:15 - 16:30 |
Coffee break |
| 16:30 - 16:45 |
Closing remarks and outlook to COP 28 and CMA 5
- Rebeca Grynspan, Secretary General, UNCTAD
- Ambassador Tosi Mpanu Mpanu, Facilitator of the Sharm el-Sheikh Dialogue
- Ambassador Mohamed Nasr, COP27 lead negotiator
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| 17:00 - 18:30 |
Building Bridges side events: Participants can avail of several small events held in the context of the Building Bridges conference (registration through the links), for example:
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| 19:00 – 20:30 |
Building Bridges cocktail reception: Participants are invited to join the open cocktail reception in the context of the Building Bridges conference |
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