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Regions look to create global power base

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Published 17 September 2010, updated 10 June 2013

Regional representatives from around the world this week outlined plans to create an 'R20' for global cooperation on climate and energy reform during a high-level Energy Congress in Canada. Blogactiv reports from Montreal.

The original 'R20' declaration – the 'R' stands for 'Regions' - was made at last year's global climate summit in Copenhagen, following an initiative by California Governor Arnold Schwarzenegger at the 'Global Summit on Climate Change', held in Los Angeles in September 2009.  

The basic premise is to help willing and selected regions to design and implement their Climate Change and Energy Regional Package (CCERP). As well as bringing together leading regions with pre-existing devolved legislative power, the R20 will seek to develop the capacities of a limited number of interested sub-national governments from developing and emerging countries.

On Wednesday evening (15 September), at a side event of the World Energy Congress in Montreal, the plans for an R20 were fleshed out with considerable fanfare. An official launch for the new cooperation is expected in November.

As the concept has gathered pace, some major players have come to support the idea, most notably the United Nations Development Programme (UNDP) and global corporation GE Energy, which is a major player in developing 'green' technology and solutions in Europe.

In tandem with the Montreal World Energy Congress, which aims to be a forum for answers and solutions to the pressing questions of clean energy generation and smart grid technology ahead of the coming global climate summit in Mexico, the R20 is hoping to pool influence and impact in the fight against climate change.

Michele Sabban, president of the Assembly of European Regions, claimed the new body will "not be another talking shop," but an "action tank" as opposed to a think-tank.

According to the AER, and other R20 backers, while the role of world leaders at events like the Copenhagen or Mexico gatherings is clear – i.e. negotiating a legally-binding global treaty - the importance of regions, large and small, in implementing that treaty will be vital.

This role will require the approval and funding of many new clean energy generation and smart grid infrastructure projects and the communication of important energy saving messages to the public, meaning that national, regional and local politicians could potentially block the progress of any global deal.

To head off such problems in advance, Governor Schwarzenegger is busy building consensus for working together now.

Because the financial aspects of climate negotiations remain the sticking point in global summits, the proposed R20 is placing finance firmly at the forefront of its agenda.

Public-private partnerships, in particular, are viewed as a key tool to make these changes happen. For example, speaking in Montreal, Terry Tamminen, a New York-based venture capitalist at Pegasus Capital Advisers, laid out broad plans to start a 'Green Investment Bank' to bring R20 members, projects, partnerships and money closer together.

Industry representatives took a similar approach, spelling out a number of possible immediate solutions. Firstly, Ricardo Cordoba, president of GE Energy Western Europe, pointed to the benefits of regions taking up a technical partnership such as theirs with the Assembly of European Regions. According to Cordoba, such partnerships provide the benefit to policymakers of crafting policy, guidelines and regulations that have a real world relevance.

Positions: 

Representing the United Nations Development Programme in Montreal, Frenchman Yannick Glemarec spelled out some of the reasons why investments in clean technologies are not made.

He pointed to the "uneven distribution of investment funds" and the fact that "money stays within OECD nations" as major problems. He asserted that without finding a way for the risk and reward balance to be adjusted, the relevant funding for clean energy development will never reach Africa and other developing areas.

Assembly of European Regions (AER) President Michèle Sabban stressed that public-private partnerships must play an increasing role in the conversion of societies to the effects of climate change. "We have created a link between the largest stakeholders in this battle against climate change: business and regional/federal governments," she emphasised, adding that "it is through them that innovation emerges today".

On the subject of the R20, she noted that "these events and meetings constitute important steps towards a new approach of international action".

She concluded that "we have heard a lot about the role of think-thanks in the elaboration of national and international public policies. Today, due to the emergency of the environmental situation, we certainly have to think and debate, but most of all we need to act. That's why we would like to establish an 'action tank' that is a rapid, efficient and fair intervention tool for sustainable development projects". 

Background: 

As reported by EurActiv, EU regions have in recent years been agitating to play a greater role in shaping policies which affect them (EurActiv 17/12/09).

Particularly in the area of climate change and energy reform, regions believe they have a vital role to play, as they are the closest to the 'grassroots' level where lawmaking is translated into practical measures.

Many regions and cities have recognised the opportunities stemming from 'greening' the economy, not least with the help of EU funding. For example, EU structural and cohesion funds earmarked EUR 100 billion to support eco-innovation, environmental risk-protection measures, clean technologies and enterprises at local level (EurActiv 10/03/09). 

Earlier this year, European regions announced they would move ahead with reforming their energy sectors with or without an invitation from the European Commission (EurActiv 30/04/10).

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