COP27

Loss and damage fund at COP27 a monumental win, if properly funded

November 21, 2022

Responding to the final communiqué of the COP27 climate talks in Sharm El-Sheikh, Gabriela Bucher, Oxfam International’s Executive Director, said:

“The establishment of a loss and damage fund is a monumental achievement for vulnerable developing countries and communities at the frontlines of the climate crisis. They have been calling for funding to cope with the devastating impacts of climate change for over 30 years.

“Given the urgency on the ground, the fund must be operationalised as soon as possible. Rich countries largely responsible for warming our planet should immediately mobilise substantial new and additional resources to pay for climate-related damage in vulnerable countries.

“In East Africa, nearly 40 million people are experiencing climate-induced hunger. Recent catastrophic floods in Pakistan have inflicted more than US$30 billion in damages and economic losses and left 10 to 12 percent of the country’s land area under water, affecting more than 33 million people. The list of extreme weather events and disasters is growing, as are the devastating impacts on communities.

“While we applaud the establishment of the loss and damage fund, we remain deeply concerned about countries’ failure to agree on an equitable and urgent phase-out of all fossil fuels. The world is on track for a catastrophic 2.8°C of warming.

“Rich countries, especially the US and those in the EU, have failed to use their power and resources to meet their fair share of responsibility and their moral and legal obligations. Rich countries and many middle-income countries that have the ability to do so are not transitioning away from fossil fuels fast enough to keep warming below 1.5°C, leading to more losses, damages and suffering. Rich countries are not providing the necessary finance to support developing countries to leapfrog to renewable energy.

“Rich countries have broken their US$100 billion climate finance promise and successfully blocked language at COP27 that would have required them to compensate for earlier shortfalls through increased climate finance in subsequent years. Climate finance is needed in the trillions for adaptation and mitigation. Given their responsibility for the climate crisis, rich countries at least could have provided a clear roadmap on how to deliver the US$600 billion they had promised between 2020 and 2025.

“We are also dismayed by the discussions to enhance the Gender Action Plan, which was at the heart of the UNFCCC processes for gender-responsive climate action. Gender was only marginally mentioned, if at all, in the climate talks’ decisions.

“The climate crisis is about inequality and injustice. Communities at the frontlines of the climate crisis are bearing the heaviest brunt of climate-induced disasters, in addition to multiple crises including conflict, loss of livelihoods, and economic shocks. World leaders must push political differences aside and put the needs of these communities first.”

Popular NZ fashion brands get 5 star rating from Oxfam

November 17, 2022

Today Oxfam Aotearoa launched the world-famous campaign, What She Makes. The campaign is about asking fashion brands to pay the women overseas who make our clothes a living wage.

Oxfam Aotearoa engaged with four New Zealand founded brands, Glassons, Hallenstein Bros, Kathmandu and Macpac, and two international brands H&M and Lululemon. Today Oxfam released the results of the first step in the process: a credible commitment towards paying workers in their supply chain a living wage.

Glassons, Hallenstein Bros, and Macpac came out on top with a 5 star rating. H&M received 4 stars, Lululemon received 3 stars and New Zealand brand Kathmandu received 2.5 stars.

Oxfam Aotearoa’s What She Makes Lead Tracy Decena said:

“We want to create a race to the top between fashion brands – starting with a real, credible public commitment towards paying the women overseas who make their clothes a living wage. It’s encouraging to see New Zealand founded brands leading the race. Even though some brands did better than others, we want to acknowledge that every brand made some progress. Yet, there is much more to be done, and you can bet we’ll be there supporting and pushing these brands towards the end goal.

“The women making our clothes often work up to 12 hours a day and then extra overtime, but because they make as little as 65 cents an hour, they don’t have enough money for decent housing, food or healthcare – let alone any savings. We are working to change this.

“We encourage our supporters, fashion lovers, and anyone who believes poverty can be a thing of the past to join us by signing the pledge and demanding fashion brands to do better.”

The What She Makes Brand Tracker

For rating and rationale head to https://www.oxfam.org.nz/what-she-makes-brand-tracker/

Our ask of New Zealanders

Oxfam Aotearoa will be asking Kiwis to let brands know they want them to do better, and to stand with the women who make their clothes. They can start by joining the campaign and signing the pledge through: https://www.oxfam.org.nz/what-she-makes-sign-the-pledge/.

Our ask of the brands

The What She Makes campaign calls on clothing brands that sell clothes here in Aotearoa New Zealand to make sure the garment workers in their supply chains are paid a living wage. Oxfam Aotearoa will work with six brands: Glassons, Hallenstein Brothers, H&M, Kathmandu, Lululemon, and Macpac. We asked them to take the first step of their living wage journeys: commit to paying workers in their supply chain a living wage. We’ll work with the brands to get them to there, and publish their progress (or lack of progress) regularly.

Oxfam reaction: NZ wins Fossil of the Day award at COP27

November 15, 2022

Climate Action Network International has awarded the New Zealand government the Fossil of the Day award at COP27 for opposing an agreement to establish a loss and damage finance facility this year.

This comes less than a week after the Government repurposed $20 million of its existing climate finance for adaptation and mitigation, for loss and damage.

Oxfam Aotearoa’s climate justice lead Nick Henry said:

“This is one award not to be proud of. Our government blocking urgently needed action on loss and damage is frankly not what we expect from a government that says it’s at the leading edge of loss and damage funding.

“Our government should be standing with Pacific nations at COP27 who are calling for a global fund to address the loss and damage they are experiencing due to climate change. This is a global problem that communities on the frontlines are experiencing right now. A decision is needed now, not in a year.”

Oxfam in the Pacific’s project coordinator in Vanuatu George Koran says that it is indigenous communities who suffer from rich governments’ inaction:

“We see the impacts of climate destruction across the Pacific, in Vanuatu and now even in Aotearoa. People in the most vulnerable situations, those who do not have the capacity to adapt, suffer the consequences. The New Zealand Government say they understand the urgent need for loss and damage funds, and yet, we are not seeing any real action. It’s like robbing Peter to pay Paul – we need new and additional funding from our neighbours to fight this crisis.”

Henry said: “We call on the New Zealand Government to back-up their acknowledgement that loss and damage needs funding by supporting a new loss and damage finance facility. This will help ensure that finance to address loss and damage is accessible and sustained and is delivered in accordance with the principles of climate justice. New Zealand can pledge our $20 million allocation to the new facility.”

ENDS

COP27: Oxfam reacts to NZ Government’s loss & damage announcement

November 9, 2022

Oxfam Aotearoa welcomes and congratulates the NZ government’s recognition that loss and damage exists and requires funding, but Jo Spratt, Communications and Advocacy Director says it still isn’t good enough:

“Sadly, this is not new funding. Instead, it is allocated from New Zealand’s existing climate finance, which is for adaptation and mitigation. Financing for loss and damage must be new and additional to adaptation, mitigation and overseas aid funding. There is a severe funding shortfall – countries are suffering irreversible damage in the climate crisis.

“To put it into perspective, last month Oxfam revealed that 55 of the most climate-vulnerable countries have suffered climate-induced economic losses totalling over half a trillion dollars during the first two decades of this century.

“While New Zealand is amongst the leading countries in providing dedicated funding for loss and damage, two further steps are necessary to clearly demonstrate our commitment to the Pacific. First, New Zealand must back-up this announcement by supporting a new loss and damage finance facility to help ensure that finance to address loss and damage is accessible and sustained and is delivered in accordance with the principles of climate justice. Second, New Zealand can pledge this $20 million allocation to the new facility.”

ENDS

A billionaire emits a million times more greenhouse gases than the average person

November 8, 2022

Billionaire investments in polluting industries such as fossil fuels and cement double the average for the Standard and Poor group of 500 companies – Oxfam

The investments of just 125 billionaires emit 393 million tonnes of CO2e each year – the equivalent of France – at an individual annual average that is a million times higher than someone in the bottom 90 percent of humanity.

Carbon Billionaires: The investment emissions of World’s richest people, is a report published by Oxfam today based on a detailed analysis of the investments of 125 of the richest billionaires in some of the world’s biggest corporates and the carbon emissions of these investments. These billionaires have a collective US$2.4 trillion stake in 183 companies.

The report finds that these billionaires’ investments give an annual average of 3m tonnes of CO2e per person, which is a million times higher than 2.76 tonnes of CO2e which is the average for those living in the bottom 90 percent.

The actual figure is likely to be higher still, as published carbon emissions by corporates have been shown to systematically underestimate the true level of carbon impact, and billionaires and corporates who do not publicly reveal their emissions, so could not be included in the research, are likely to be those with a high climate impact.

“These few billionaires together have ‘investment emissions’ that equal the carbon footprints of entire countries like France, Egypt or Argentina,” said Nafkote Dabi, Climate Change Lead at Oxfam “The major and growing responsibility of wealthy people for overall emissions is rarely discussed or considered in climate policy making. This has to change. These billionaire investors at the top of the corporate pyramid have huge responsibility for driving climate breakdown. They have escaped accountability for too long,” said Dabi.

“Emissions from billionaire lifestyles, their private jets and yachts are thousands of times the average person, which is already completely unacceptable. But if we look at emissions from their investments, then their carbon emissions are over a million times higher,” said Dabi.

Contrary to average people, studies show the world’s wealthiest individuals’ investments account for up to 70 percent of their emissions. Oxfam has used public data to calculate the “investment emissions” of billionaires with over 10 percent stakes in a corporation, by allocating them a share of the reported emissions of the corporates in which they are invested in proportion to their stake.

The study also found billionaires had an average of 14 percent of their investments in polluting industries such as energy and materials like cement. This is twice the average for investments in the Standard and Poor 500. Only one billionaire in the sample had investments in a renewable energy company.

“We need COP27 to expose and change the role that big corporates and their rich investors are playing in profiting from the pollution that is driving the global climate crisis,” said Dabi. “They can’t be allowed to hide or greenwash. We need governments to tackle this urgently by publishing emission figures for the richest people, regulating investors and corporates to slash carbon emissions and taxing wealth and polluting investments.”

The choice of investments billionaires make is shaping the future of our economy, for example, by backing high carbon infrastructure – locking in high emissions for decades to come. The study found that if the billionaires in the sample moved their investments to a fund with stronger environmental and social standards, it could reduce the intensity of their emissions by up to four times.

“The super-rich need to be taxed and regulated away from polluting investments that are destroying the planet. Governments must put also in place ambitious regulations and policies that compel corporations to be more accountable and transparent in reporting and radically reducing their emissions,” said Dabi.

Oxfam has estimated that a wealth tax on the world’s super-rich could raise US$1.4 trillion a year, vital resources that could help developing countries – those worst hit by the climate crisis – to adapt, address loss and damage and carry out a just transition to renewable energy. According to the UNEP adaptation costs for developing countries could rise to US$300 billion per year by 2030. Africa alone will require US$600 billion between 2020 to 2030. Oxfam is also calling for steeply higher tax rates for investments in polluting industries to deter such investments.

The report says that many corporations are off track in setting their climate transition plans, including hiding behind unrealistic and unreliable decarbonisation plans with the promise of attaining net zero targets only by 2050. Fewer than one in three of the 183 corporates reviewed by Oxfam are working with the Science Based Targets Initiative. Only 16 percent have set net zero targets.

Ahead of the deliberations at COP27, Oxfam is calling for the following actions:

Governments to put in place regulations and policies that compel corporations to track and report on scope 1, scope 2 and scope 3 GHG emissions, set science-based climate targets with a clear road map to reducing emissions, and while at it ensuring a just transition from the extractive, carbon intensive economy by securing the future livelihoods of workers and the affected communities.
Governments should implement a wealth tax on the richest people and an additional steep rate top-up on wealth invested in polluting industries. This will reduce the numbers and power of rich people in our society, drastically reduce their emissions. It will also raise billions that can be used to help countries cope with the brutal impacts of climate breakdown and the loss and damage they incur and fund the global shift to renewable energy.
Corporations must put in place ambitious and time-bound climate change action plans with short-to-medium term targets in line with global climate change objectives in a view to reach carbon neutrality by 2050.

“To meet the global target of keeping warming below 1.5 degrees Celsius, humanity must significantly reduce carbon emissions, which will necessitate radical changes in how investors and corporations conduct business and public policy,” said Dabi.

Notes:

Download Oxfam’s report “Carbon Billionaires”.

Oxfam began with a list of the 220 richest people in the world according to the Bloomberg Billionaires Index and worked with data provider Exerica to identify a) the percentage ownership these billionaires held in corporations b) the scope 1&2 emissions of these corporations. To calculate the investment portfolios of individual billionaires, we used the analysis by Bloomberg, who provide detailed breakdowns of the sources of billionaire wealth. Here is the methodology note.

The estimate on the money that could be raise on wealth tax on millionaires, multi-millionaires and billionaires, is through using data from Wealth X and Forbes.

Recent data from Oxfam’s research with the Stockholm Environment Institute shows that the wealthiest 1 percent of humanity are responsible for twice as many emissions as the poorest 50 percent and that by 2030, their carbon footprints are set to be 30 times greater than the level compatible with the 1.5°C goal of the Paris Agreement.

The GHS protocol greenhouse accounting standards widely used globally spells out the three categories of gas emissions associated with companies as follows: Scope 1 are direct emissions from the company’s operations. Scope 2 are indirect, where the emissions take place elsewhere. Scope 3 are all other indirect emissions, this includes everything from emissions in the company’s supply chains to employee commuting, to the use of the products they sell by consumers.