A paper on Sectoral CDM which remains relevant till date on the subject of reduction of emissions. 

Relevance of Sectoral CDM under the Kyoto Protocol.

Stimulating Ethical Climate Actions

 A paper I presented at the University of Iceland, 2014, that persuades ethical actions by governments and private parties to promote environmental equity to mitigate adverse effects of climate change.

Climate Ethics and Climate Justice, A Discussion on Principles 

Reforming the International Investment Regime.

 A paper I presented in the year 2013 at Istanbul.  I am posting this paper, that is definitely outdated, since it was hacked and I recovered it online. I have also redacted all references although i am hoping   readers  understand the basic premise on which i wrote the paper initially. 

Reforming the International Investment Regime.

 

Let us not give up hope, as we endeavour to reform one society at a time.

 

I had started research and writing on indigenous rights a few years ago. For several reasons I could not complete it soon enough. I planned to publish the working paper on my blog, and it seems such a pleasant coincidence that today happens to be World Environment Day. It seems very superfluous to discuss protection of a certain sect of people under international law, as we watch the unimaginable horror that Gazans are being subjected to.   Witnessing such a global disorder and disruption caused by nations like Russia, Israel, individuals like Trump. The constant threat posed by China to Taiwan and its suppression of Hong Kong’s protesters seeking democracy, its indoctrination and tyranny imposed on Uighurs not just within its borders but also those who have moved out to other nations is a challenge to international community and international institutions. 

I remember a journalist in the Guardian posing a question to her readers, if we are becoming powerless societies. I guess we are. It appears we stand a very little chance in rising  against growing authoritarianism and despot like Trump who is seen dancing to tunes of foreign leadership. He probably gave us a clue even before he seemingly won the election in 2024, he danced his way into his campaign. By choosing him to be the President that nation has humiliated itself before the world. 

Indigenous peoples who practice subsistence form of living have nothing to do with what is happening around the world. They live in self-demarcated territories minding their own business. But when has world left alone those who wish to isolate themselves for the good of global commons and the planet earth. It is indeed a paradox.  In its essence, my paper conveys the need to respect these indigenous communities of the globe who manage natural resources for our future generations and give them a place in the international community that they genuinely deserve. Let us not give up hope and our will to resist anarchy and tyranny. 

  Expanding Business and Human Rights Treaty for Indigenous Rights

 

Wars and Climate Change -- A Juxtapose and a Paradox...

 

As an individual who has spent a few years in reading, researching and writing on climate change, the recent event of COP 29 at Baku has left with me with a sense of defeat and absolute helplessness. Nobody is listening to anybody on these issues concerning human lives or their right to sustenance form of living. Topics on Peace initiatives, mitigation and adaptation initiatives are given least importance while war and war-mongering nations are getting the full attention of the world. 

 Scientific integrity of arguments pertaining to global warming and sea level rise,  glacial climate intervention, overall impacts of climate change on global  food and water security and soil fertility has had no impact on the nations and global leaders who would rather spend more money on its military and defence either to protect their legitimate sovereignty from aggressors who wish to forcefully occupy their lands or to provide basic necessities like food and water to its starving nation like Sudan and Gaza. So, who do we turn to for financing global adaptation systems. If political leaders and climate leaders have lost their faith in the purpose of Climate Change Agreement, then it is time to just promote the global goal on adaptation that probably will help small island nations or least developed nations and developing nations that require large scale financial assistance to survive the adverse impacts of climate change. 

The Stockholm International Peace Research Institute identifies at least 25 companies profiting most from war topping almost $5 billion in arms and military service sales in 2021 with most of the companies headquartered in the United States, which during the earlier regimes promised contribution to  climate finance, and in China that uses the profits to promote its economic aggression in African and Central Asian countries by investing in extractive industries in regions that are conflict ridden and creating a debt-trap for these nations. 

The insecurity of nations over their territorial integrity, influx of migrants from war-torn regions,  increasing number of refugees and internally displaced persons has governing leaders looking for long-term solutions while global warming, floods, forest fires, cyclones and drought have been relegated to oblivion. Ultimately, all problems are anthropogenic and most of them have become endemic that people are learning to live without proper access to food, water and livelihoods. It is not too late for nations like the USA, UK, Germany and China to focus on humanitarian aspects and take up resolution of conflicts and promote peace initiatives in order  to present history  to its future generations in a more humane manner. Media should headline the absence of proactive measures by world's richest nations to mitigate the plight of innocent civilians across the world scrounging for a meal and glass of fresh water and proper medical aid and question the inertia among leaders in taking up humanitarian causes.  Media is powerful but those who can afford should pay for information to gain access to accurate and truthful information in order to take informed decisions. 

The European Union has by far been one of the best in finding solutions  for climate change impacts and should continue to be world leaders in addressing climate change and global warming.  The recent forecast of what might happen after January 2025 should push EU to consolidate its position on the global political map by taking up responsibility for global issues affecting innocent people. EU has always believed in playing a servile role within the international community without really understanding its own strengths and resilience, having survived two world wars. EU is capable of preventing total collapse of systems across the world and take up its role as a global leader in climate change and humanitarian issues.

A perspective on Green Investments and the ESG factor

According to recent research, investors should anticipate that green assets will under perform brown assets. Investors tend to invest in green assets and divest their stakes in brown holdings. The demand for green assets increases their market price while diminishing the value of future returns. Green assets are a 'climate hedge' as they will perform better than brown assets in the face of adverse climate change impacts, and investors tend to attribute more value to this hedging ability. When evaluating potential green investments versus brown investments, companies anticipate higher returns from green investments by measuring the greenness of an investment using the Morgan Stanley Capital International indices on environmental ratings. Eventually, when the returns fall below the cost of capital, brown investments tend to outperform green holdings. Further, research findings imply that greener assets have a lower cost of capital with all other parameters remaining equal, and therefore companies should use a lower cost of capital when evaluating potential green investments when comparing them with brown holdings, creating an incentive for investors to hold a portfolio with increased investments in green holdings.

Long-term climate strategies include shifting from fossil fuel consumption to clean electricity, clean fuels and electrification of end-uses is viewed as the most efficient and economical way to reduce emissions in power, transportation and construction sectors. In sectors that are deemed as hard-to-abate sectors such as industries and heavy-duty transportation that include aviation and shipping. It would be pertinent to quote an example of green investments in producing sustainable aviation fuel (SAF).  Technological advancement in production of SAF,  a low-carbon alternative to traditional jet fuel made from crude oil has accelerated investments in the technology aided by incentives from state and federal governments of the US and EU.  A consortium including the United Airlines has started a $100 million venture capital fund on Tuesday to invest in the technology. Aircraft manufacturer, Boeing has announced that it as doubling its use of sustainable fuel this year. Yet, as on date, no flights are powered by sustainable fuel because of the cost factor which makes it three times as expensive as conventional fuel and it seems difficult to overcome the considerable cost differential that exist between conventional fuel and SAF owing to the production pathways for SAF.

Investment levels  in the production of electro-fuels or power-to-liquids have been insufficient due to high production costs thereby creating a negative feedback loop among investors. The demand for SAF needs to be consistent with the certainty for future supply of the product and eliminating the  risk factor surrounding its production pathways.  Presently, the lack of real large-scale demand for SAF has stymied the deployment of the product at a global level.

Policy development by the International Civil Aviation Organization (ICAO) has brought in a three-phase program known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) that aims to stabilize international aviation emissions at 2020 levels by 2035. It is stated that a mandatory participation by all countries starting 2027 could create new demands for SAF globally. It is estimated that low-cost pathway for production of SAF could reach price parity with conventional jet fuels in 2027. Additional incentives and/or tax credits can render costlier production pathways to become cost-competitive as has been brought in under The Inflation Reduction Act of the USA.  Investments in producing sustainable CO₂  via point-source capture or direct air-capture (DAC) and green hydrogen (H₂) can help in producing clean fuels. Scientists believe that only SAF technology has the potential for unbounded production.

A European Corporate Governance Institute working paper on finance focused on a "natural experiment in responsible investment" conducted by the world's largest public pension fund, Japan's Government Pension Investment Fund (GPIF). In 2018, the GPIF gave its largest portfolio manager a compensation-based mandate to enhance the ESG performance of portfolio companies. The authors concluded that "engagement by the asset manager has led to improvements in certain ESG scores for mid- and large cap companies." The mandate was distinct from the asset management contract already in place to invest in and manage equity securities. The incentive of remuneration for stewardship services above and beyond a standard asset management fee motivates passive managers of assets to increase the value of active stocks, creating financial incentives to improve a company’s ESG scores and consequently increasing equity investments in such companies.

 To understand if ESG criteria have been met by companies, it is essential to be aware of the calls for stringent norms for scrutiny, regulation, and reform of practices followed by ESG rating agencies that wield a substantial influence over market fluctuations and retail investors. It is recommended that regulatory agencies prohibit rating agencies' direct outreach to businesses in order to reduce their influence and prevent an imbalance in favour of those who pay them for consulting and insurance services. These agencies require universal norms for ESG compliance by companies based on standards such as resource efficiency, waste management, ecological harm, and disclosure of the amount of 'natural capital' inputs to their businesses. Profits from the practise of sustainable business processes should not be the only metric used to declare ESG compliance. For an accurate assessment of ESG compliance, the negative environmental impacts of business processes that tend to affect the environment should be used to offset profits. The objectives of rating agencies should not be based on a company's market capitalization or financial significance. It should aid in enhancing corporate performance, thereby contributing to sustainability and the circular economy. The methodology employed by rating agencies to collect and aggregate relevant data has been criticised by financial analysts as lacking transparency. It is simple to attract investments using ESG ratings on sustainability, but the absence of uniformity and harmonised benchmarks for compliance assessments can divert funds to projects and companies that engage in greenwashing.

In 2021, the International Organisation of Securities Commissions urged global regulators to investigate the veracity of claims made by various ESG data providers regarding environmental and social governance. In response, the Securities and Exchange Board of India (SEBI) mandated that all ESG rating agencies register with the regulator in order to prevent conflicts of interest and increase transparency in rating ESG compliances by corporations. It is important for large-scale investors and institutional investors to compare the outcomes of ESG compliance by companies that impact several industries and sectors to get an overall view to guide their future investments. Several ESG data providers sell volumes of data online, which means that the data available on their website has been verified both quantitatively and qualitatively. One such website, for example, is Statista, which provides information from individual nations pertaining to various sectors for a price.

References:

1.     Pástor, R. F. Stambaugh, and L. A. Taylor (2022). Examining green yields. 146(2) Journal of Financial Economics: 403-424.

2.     Pástor, R. F. Stambaugh, and L. A. Taylor (2021). Balanced investments in sustainability. 142(2) Journal of Financial Economics: 550-571.

3.     Berg, F., Koelbel, J. F., & Rigobon, R. (2022). The divergence of ESG ratings has led to widespread confusion. Finance Review, 26(6), 1315-1344.

4.     Berg, F., Koelbel, J. F., Pavlova, A., & Rigobon, R. (2022). ESG ambiguity and stock returns: Addressing the issue of noise (No. w30562). Bureau of Economic Research, National.

5.     Go to https://www.esgthereport.com

6.     Go to https://www.statista.com

7.     Go to https://www.sasb.com.

8.     Go to https://www.globalreporting.org.

9.     Inputs from Financial Times and The New York Times

Preserving the rights of indigenous tribes using global administrative law.

 Indigenous communities should form the fulcrum of sustainable development of a nation. Their culture and  forms of subsistence living are imminent to building low-carbon economies. Indigenous communities in Borneo have successfully protested the implementation of proposed palm oil plantations reemphasizing the need to restore their rights over ancient and  ancestral lands as a pertinent move  to address adverse impacts of climate change. The Mapuche community in the Araucanía region of Chile have, over decades, protested the invasion of their ancestral lands and conversion of  native forests into pine and eucalyptus plantations leading to civil insurgency against forestry companies and consequent  militarization of regions belonging to indigenous tribes as a deterrent to environmental activism. The Americas as such is witnessing the degradation of indigenous populations while jungles disappear due to illegal clearances for palm oil cultivation and unregulated cattle ranching. Solutions to mitigate climate change impacts can be found within the traditional knowledge of indigenous practices and tribal customs that have been neglected as retrograde and outdated.

Land-restitution and reparation programs across nations have not fully succeeded  owing to lack of investments in environment-friendly and sustainable projects in indigenous regions. The rejection of Chile’s new constitution is a glaring example of incorrect application of negotiation techniques and rules of engagement  with the indigenous tribes as is  evident in their lack of awareness of the advantages of new Constitution.

There is a need to provide a universal definition for indigenous communities based on domicile, culture and nativity  and preserve their  knowledge of agricultural and forestry practices.  Laws that mandate payment of a universal and life-time royalty to these tribes when  such practices are adopted by decision makers and stakeholders can help  nurture  lands in ways best known to them.

International community needs to place adequate emphasis on indigenous rights over land and practices.  It is requisite to  design legal regimes which improve governance of global resources not restrained by national  boundaries and claims of sovereignty.  Studies have demonstrated that indigenous-managed lands have prevented biodiversity loss  even better than those lands specifically identified for  conservation. New Zealand’s government has set an example  by integrating  indigenous knowledge of local landscapes into their decision making on infrastructure and  land-use changes  to adverse impacts of natural disasters. 

Giving back to the indigenous communities their rights over lands that was taken away from them  may not be just an act of kindness but one that can save our planet from moving towards the ‘highway to hell.'   This is a preamble to a paper that builds  a case to  endorse the application of global administrative law to harmonize governance modules for tribal regions within nations. Just as ocean management, regulating forests and forestry rights of indigenous tribes needs to take precedence over reckless land-use changes.