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G8 Leaders ‘Need To Go Further’ On Food Security In Africa

G8 leaders ‘need to go further’ on food security in Africa by Jonathan M. White 14 June 2013 When they meet at Lough Erne, G8 leaders will have to reconcile two competing visions of the New Alliance initiative started last year to lift millions of people out of poverty, says think-tank The New Alliance for Food Security and Nutrition – a joint initiative of African leaders, the private sector, and G8 governments – was launched at last year’s G8 Summit with the ambitious goal of lifting 50 million people out of poverty by 2022. Over the past 12 months, 91 per cent of G8 government commitments have been disbursed on time, and more than half of the private sector investments, worth a total of over $3bn, have commenced. From creating an electronic customs clearance system for agriculture commodities in Burkina Faso to a new seed law in Ghana, New Alliance policy actions could prove to be transformational and strengthen food security in participating countries, which also include Ethiopia, Tanzania, Côte d’Ivoire, and Mozambique. During a pre-G8 Summit event on nutrition last week, Nigeria, Benin and Malawi signed up as well. When they meet at Lough Erne, the G8 leaders will have to reconcile two competing visions of the New Alliance. Some argue that, although well intended, it will not result in sustainable or responsible investments. Big global companies only understand large-scale intensive single crop production models, which are often highly destructive to biodiversity and the social fabric of smallholder farming communities. While the flow of corporate investment and the adoption of modern farm management, skills, and technology will increase agricultural production, these benefits would come at a high cost. Investments will also go toward exportable products and not the local market, making smallholder farmers increasingly dependent on volatile international markets. Others contend that the New Alliance aligns public and private resources with country-led strategies that are consistent with host-country priorities and needs. The initiative is also supportive of multinational guidelines on the governance of land, fisheries, and forests, designed to guard against land grabs and social disruption. Proponents argue that corporate investors, non-governmental organisations, and development partners will assist smallholder farmers integrate into agriculture value chains by helping them organise into cooperatives and engage in contract farming Public-private partnerships and innovative business models will ensure both development and commercial goals are achieved. Which narrative is right? Each holds some merit. In at least four New Alliance countries, there is evidence that local communities have not been sufficiently consulted by investors or governments in land transactions. In two countries, the compensation to households affected by these land investments has been determined to be inadequate. While public-private partnerships are promising, it is clear that some companies simply do not understand how to engage with smallholder farmers. At the same time, the Grow Africa initiative, which is supporting the New Alliance, has reported that more than $60 million invested so far has incorporated smallholder farmers into market-based activities. Approximately 270,000 metric tonnes of commodities were sourced, generating $300m in sales for farmers. Nearly 800,000 smallholders have benefited from a mix of training, service provisions, and market access. While land grabs are a concern, the New Alliance is not dominated by large global corporations. Many sizeable investments are, in fact, driven by African firms and small and medium-sized enterprises. Grow Africa data covers New Alliance countries minus Côte d’Ivoire and plus Kenya and Rwanda. At the heart of the debate over these competing visions is the role of the private sector. Business and trade are often viewed as sources of plunder in Africa – the depletion of oil, gas, and natural resources through shadowy networks of business and government officials. Africa’s economic growth and rising middle class are promising, and African leaders have clearly committed to private sector development. Yet, this has not completely tipped the balance in local perceptions about the private sector. Weak governance and corruption further undermine trust in both governments and business. As the host of the upcoming G8 Summit, British Prime Minister David Cameron will have to navigate this thicket of issues. He is off to a good start, forming a ‘coalition of the willing’ to publish guidelines for land transactions and making progress on nutrition through the Global Nutrition for Growth compact and commitments . Transparency through the release of the 2013 New Alliance progress report will build confidence behind the initiative. But global leaders will need to go further. New Alliance dialogues must be embedded in local contexts, opening them more broadly to public debate through formal platforms or institutions. This means local public and private sector leaders will have to step up. Others can help, but it is these local actors who must ultimately build the mechanisms that will strengthen governance and reveal which investment models succeed or fail, so that we may learn along the way to enabling agricultural transformational in Africa. Jonathan M. White is a transatlantic fellow with the German Marshall Fund of the United States, which first published this article in its Transatlantic Take series as Can the G8 Navigate Competing Visions for Food Security in Africa? Read more: http://www.publicser…a#ixzz2WrP1lKzS Continue reading

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EU Politicians To Try Again To Rescue Carbon Market

Business Spectator 19/06/13 European Union politicians are likely to back a plan to support prices on the EU carbon market on Wednesday, in a step towards resolving debate over whether to prop up the world’s largest emissions scheme. Even if the vote, expected after 3pm (1300 GMT), is positive, the proposal to temporarily remove some of a glut of allowances from the EU Emissions Trading Scheme (ETS) faces further hurdles. To become law, it would require backing from a session of the full European Parliament at the start of July and from individual EU member states. Following a parliamentary defeat in April, EU lawmakers have changed the wording of the proposal, known as backloading, aiming to win over opponents. The European Parliament’s largest group, the center right European People’s Party, which previously helped to block the proposal, this week lent support. One of its leading members said he was optimistic it would pass. Yet diluting the wording has lost the goodwill of some of those who originally backed it. Some members of the Green Party say they will vote no at committee level, although they still want wider structural reforms to the market, which are meant to follow the emergency rescue plan. Carbon prices have reacted to the twists and turns of the debate, which has dragged on for years. Price swings, often in excess of 10 percent, have been exaggerated by the weakness of the market. The April parliamentary defeat pushed the carbon price to a record low of less than €3 a tonne. Allowance prices have recovered to trade above €4 on expectations of a yes vote. DEEP DIVISIONS The purpose of the EU ETS is to help persuade operators of power plants and factories across Europe to switch to greener energy, but carbon prices need to be much higher to drive such change. Opponents to bolstering prices include those who do not wish to pay more to cover their carbon output, those opposed to intervening in markets generally, and those who doubt the move will boost carbon prices to meaningful levels. Market analysts say even with backloading, the carbon price will remain far below the 40-50 euro price seen high enough to drive carbon-cutting investment in greener energy. Thomson Reuters Point Carbon has estimated backloading will raise permit prices within two years to around €10, before a retreat to €6 by the end of the decade. European heavy industry is particularly sensitive to the idea of higher costs related to energy when US rivals are benefiting from cheap shale gas. Yet some energy firms, especially utilities, strongly favor supporting the EU ETS, seeing it as the cheapest way to drive innovation in lower carbon energy sources. Among EU members, Poland, whose economy depends on coal, has been a vehement opponent, while Germany has failed to take a stand ahead of elections in September. Germany’s economy ministry has reflected the views of heavy industry, while the environment minister has backed the idea. Despite the stance of Germany and Poland, there might be sufficient backing from other states for the plan to win agreement at member state level, if it can get parliamentary approval, EU sources say. Britain has been at the forefront of calls for backloading, as a first step towards deeper reform. It has agreed a carbon price floor and needs a higher carbon price to justify continued use of carbon-free nuclear generation and development of carbon capture and storage technology. UK Energy and Climate Change Secretary Edward Davey said this week he hoped for agreement on legislative proposals for deeper carbon market reform by the end of the year. Continue reading

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China Test Markets May Help Set Emission Cuts, GreenStream Says

By Mathew Carr – Jun 18, 2013 Karl Upston-Hooper, general counsel at GreenStream Network Plc in Helsinki, comments on emissions trading in China , including the nation’s seven test carbon markets and offsetting program called China Certified Emission Reductions, or CCERs. He spoke by phone on June 14. China started today its first test carbon market in Shenzhen. On how China will use its test markets to help determine a trajectory for its own emissions output after 2020: China negotiators will travel to a key United Nations climate conference in Paris near the end of 2015 “knowing what they can achieve. Environmental problems are a potential disruption to social harmony. The government knows it.” On whether China is genuinely embracing carbon markets: “I don’t think it’s a sham or a facade. I’ve got a very positive impression of Shenzhen’s program.” The test programs “are not going to burst into life as a liquid, functioning market.” On China’s preference for spot trading: “The problem with having a spot market is you have no long-term price signals. I can’t lock in the price of carbon. In the EU, I can hedge.” On challenges: China will face setbacks as it sets up a system that links its programs, transitions to a national market and allows outside traders to participate, Upston-Hooper said. On trading: GreenStream expects it may after about 2015 be able to sell some of the 3 million metric tons of CCERs it’s already arranged to buy to emitters including in Shenzhen, Upston-Hooper said. CCERs will become “a currency that links the pilots. We’re a firm believer there will be in due course a functioning carbon market in China.” To contact the reporter on this story: Mathew Carr in London at m.carr@bloomberg.net To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net Continue reading

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