simon zadek

Davos vs Copenhagen:Its a Knockout!

Copenhagen was a structured, sovereign-state based negotiation with clear rules of engagement (albeit abused). It had a beginning, middle and (at least in theory) an end. It was designed to reach agreement on a specific set of activities entirely focused on the public good. It was also a veritable ‘walk through babylon’ (as my video clip painfully illustrated), and as we now all know deteriorated into a shambolic, ego-laden, mecantilist dog-fight.

Davos is designed as the elite market place for anything the globe has to offer. Intellectuals, activists and would be politicians ply their trade as casually as the attending traders normally do so glued to their phones, computer screens and wallet books. It is ordered along the lines of chaos, legitimacy is a matter of power, money, influence or stardom through the arts. There is no one deal to be done, no obvious rules of the game (there are some less obvious ones, to be sure), and governments compete for airtime with the latest bestselling writer, and the rowdiest Texas oilman.

Davos is a spectacle to behold, always threatening to reflect our worst Darwinian inclinations. Copenhagen, on the other hand, was meant to reflect humans at their best, open to collaboration for the public good. And yes, you have guessed it (you smart, cosmopolitan blog readers), life has its way of inverting the expected. Copenhagen actually demonstrated humans’ capacity to be petty, narrow-minded, and deeply tribal. far from being focused on the public good, it was focused on the private gain of vested interests largely not in the room, whether they were businesses, parochial politicians or even short-sighted populations of citizens who should have known better.

And Davos…well it is what it says on the tin, in one moment abstracted from any sense of reality, at another exhibiting the human ego at its most profoundly revolting. Yet it somehow unlocks the participants’ passion, innovation and a will to imagine and take risks. In muddling up the public good with private gain, it evokes much of what is amazing about our species and without doubt explains how we have survived to date (for better and worse). It is in Davos that investors in green technology have the stage,

yes aching for public subsidy if they can get it, but in truth knowing that they will fund the low carbon economy if it is going to happen. It is in Davos that the Chinese business community schmoozes with Western Governments and vice versa. It is on these snowy hills that more irreverent potential is discussed than could be dreamed of in any formal multilateral procedure.

Yes, a Managing Director of the World Bank was right when she reminded us at Davos that the farmers we were discussing were not in the room. And who knows what complex political equation Strauss Kahn from the IMF was making when he supported Soros’s proposal to unlock capital to fund climate management. And it is slightly crazy making when Sarkozy proposes to rewrite the rules of capitalism (better than his Italian counterpart though), and it makes you wonder when Davos declared itself ‘green‘ on the back of a half-hearted labelling of carbon-spewing, attending SUVs. But frankly such weaknesses are chicken-feed when compared to the cynical nonsense that stalked the corridors of the Bella Center in Copenhagen just weeks before.

You may well despair, and I might join you for an accompanying drink when you do, but Davos is more about our future than Copenhagen will ever be in bringing more of the right people to the table, and providing more opportunities for the deal making that is needed to safeguard our children and theirs in turn. We can bemoan the elitism, the false dawns too often announced and then neglected forever more, and the fly-in humbug of much that is said and neither meant nor even heard. But through this there is an authenticity in the demonstration of real power, truly extraordinary wealth, unbelievable innovators (for whatever reason and end), and a will to grasp the world as it is and shape it into the future. The tens of thousands leaving Copenhagen were angry, burnt out, and deeply exhausted. Those leaving Davos will be tired, often confused, but in the main better informed, connected and able and willing to act.

Have I drunk the Davos Kool Aid for too long to have any remaining sense? Well maybe, self-diagnosis is not humankind’s speciality, far from it, and I am no exception to the rule. Certainly Davos exhibits in technicolor more than it resolves what I called in an earlier blog this week sustainability’s very own Valley of Death, in a nutshell our ’struggle to innovate at scale in a timely way in addressing the world’s toughest problems‘. But its more likely that the solutions lie lurking beneath the canapes at Davos than the decrepit cheese sandwiches of Copenhagen if only because the folks in the former are actually treated with respect, treat each other in the main with respect, and have a will to live rather than just survive.

Tomorrow’s History

Tomorrow’s history is rarely created by extraordinary moments, it is merely punctuated by them.

Copenhagen will be seen as a failure of vision, leadership, and compassion. The Copenhagen Accord, ‘noted’ in extra time at COP15, will be stuck with the Sudanese’s naming as a “suicide pact”. And President’s Obama, Hu and many others, however they speak to their domestic constituencies, will have been party to this failed attempt to strike an ambitious deal.

Tomorrow’s history, i suspect, will profoundly disagree with this finger pointing diagnosis.

Studied history will point to Copenhagen as the last serious attempt to use 20th century techniques to arrange our 21st century affairs. Seeking consensus between 193 sovereign states through a zero-sum negotiation process was always going to be a fool’s errand. It failed because it handed exclusive rights to national governments, leaving 99% of the energy of business, civil society, cities, and the youth (just to same a few) as frustrated bystanders (see them in my Walk through Babylon). It failed because it sought to secure a “one for all, and all for one” consensus, unworkable even in the relatively simple world of trade. It failed, finally, because of its use of old style negotiation techniques where we have learnt so much from the “deliberative” approaches of communities and business in envisioning change and creating unlikely pathways to achieving it.

For Copenhagen to serve us well, we must learn from it.

It has failed because our global commons can no longer be managed by top-down, government-led, compliance focused, publicly-funded agreements between nations. Presidents and prime ministers, along with legions of negotiators, have been complicit in this by playing, frankly, their well-defined allotted roles in appealing to their domestic political constituencies (accountability) and in seeking re-election (whether in democracies or not). Who can blame folks for doing what we ask them to do, even if in the last hours we demand that they shift gear and behave as if they were chosen to lead in saving the global commons (which they were decidedly not).

Two things need to, and can happen now.

The first of course is to deal with climate with the right people where the action is. Whilst not wishing to trivialize today’s pain, we can deal with climate more effectively by catalyzing ambitious national action leveraged with international co-operation. We can get a better global deal, but only once nation’s have whetted their appetite for low carbon growth and development through action, not theory. This is not, as i have repeatedly argued, downgrading expectations, but upgrading them by leveraging where the real energy for change lies, and then uploading the results into a far smarter global deal going forward ( see my Revising Plan A).

Second concerns our global governance arrangements. Reforming global governance has been an esoteric topic for many years pursued by policy analysts, academics and international bureaucrats offering unintelligible diagnostics and incremental and largely technocratic recommendations. Copenhagen, and its potentially ghastly implications, makes this obscurity unacceptable. In the last two decades we have in fact already invented far more effective ways to do business internationally, from how we do global health through public private partnerships to building the hadron collider in CERN (it works now, but the amazing thing about it is how the global scientific and political community made it happen, not merely that it is ‘about the origins of everything’). We do not need another Commission made up of those who have presided over our failing global institutions, we need fresh blood and urgency in surfacing today’s institutional innovations and working out how to make these work in practice.

COP15’s real legacy.

Coming back, then, to climate. We should surely be disappointed by the final deal. But we are now poised to have to invent an alternative pathway in moving forward. John Maynard Keynes, the most extraordinary 20th century economist, argued that ‘our challenge is not to invent new ideas, but rather to let go of old ones’. Well, if he was right, and i suspect he was, then COP15’s greatest contribution to the public good may be to bury, once and for all, our outmoded ways of doing global governance. Such an achievement, whilst sad to contemplate today, may turn out in tomorrow’s history to be an extraodinarily important legacy that served us and our children well in decades to come.

Doing the maths

Contrary to rumor, money does not make the world go around – but making the maths work does help.

Money, at least on the surface, is the blunting edge of the deal. Estimates vary but there is a convergent focus on total incremental costs rising to about US$100-140 billion per year by 2020. Depending on how one draws the line between here and then, the total bill on this basis that is not going to be paid for by private commercial money might be of the order of US$1 trillion. of the course the number could be smaller, especially since China led the way in accepting that it is not going to receive international support for its own incremental costs. Some political leaders have talked about far less: US$10 billion a year from 2010-12 (fast start), US$25 billion a year from 2013-2015, and more or less US$50 billion a year from 2016-2020, or about US$300 billion over this period.

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Revising Plan A

My piece, ‘Revising Plan A’, published a couple of weeks ago first on OpenDemocracy.net and then on ChinaDialogue.net, has generated some heated responses, covered now on various forums including ChinaDaily.com. With 48 hours to go before the end of the Copenhagen talks, i thought it relevant to offer a couple of reflections based on my original argument and the current situation.

My argument, in a nutshell, was that any top-down multilateral agreement relying for success on sovereign abatement commitments and international public finance funding credibly verified outcomes is doomed to failure. Instead, i argued, we need to rely on the power of national interests, supported where possible by international co-operation. Of the many national interests that might exist, I argued, growth and development comes top on everyone’s list, so ‘low carbon growth and development’ should and will be the touchstone of success in climate management.

Respondents to my argument (which can be read through the linked articles) told me that I should not be so pessimistic, that some international agreements worked, and that national self-interest would not do the job alone (apologies if i have missed the breadth and nuance of the arguments).

Being right is not the point, but getting it right most definitely is.

If Plan A was indeed a conventionally-understood strong deal in Copenhagen, then we have underachieved. If this was the only way to save us from ecological meltdown, then such underachievement is indeed a disaster unfolding. My take is different: first, we will under-achieve in conventionally understood terms (too little legally binding commitment, too little public money); second, we are not doomed if we catalyze self-interested action, raising its timely ambition through international support. India’s solar drive, China’s extensive investments in low carbon growth, Europe’s carbon trading framework, and Brazil’s action on deforestation are all unilateral moves that work better through international co-operation.

My point is not that national, self-interested actions are instead of, but rather than that they are the heartland of real change. Hence the article’s title ‘Revising Plan A’. They might be effectively catalyzed by international action, but they are also in danger of being distracted by them, especially in weaker countries which could end up with yet another generation of rent-seekers rather than wealth creators.

Driving low carbon growth and development does require action on adaptation, which does require public as well as private money, and in some cases international public finance. Technology transfer is not going to be enhanced through a global climate deal, but does have to be facilitated through technology and country(ies) specific deals. Reducing deforestation and land use changes (REDD+) is hugely important, and will benefit from a strong international component, but even here money will flow mainly bilaterally when push comes to shove.

So far from being pessimistic, I am wildly optimistic. The difference is that i am looking somewhere else for my optimism, where real communities, domestic politics, national government actions, and private money rule the day. One last thing: a stronger global deal can be induced through action on the ground. That means that we need a political agreement now that does not ‘freeze’ the deal, then we need 1,000 days of intensive nation-level action to show how this stuff can work at scale. Then we can re-visit the deal and I warrant the appetite for more and stronger will be greater as Chinese, US, European and Indian economic interests converge on not just the logic but the practice of low carbon economics.

Walking in Babylon

Wednesday, and I am inside the Bella Center after a long chilly wait. One of the team has spent the entire night in the plenary accompanying the (last) attempt to develop a text in a consultative way. The place is now looking like a fortress as the world awaits two hurricane arrivals, over a hundred heads of state, and a riot planned for today.

Inside is like a Babylonian nightmare, every language, nationality, religion, creed and age, stalking the aircraft hanger-like corridors. You have to see, feel and if possible smell the place, the toxic extremities of consensual, zero-sum consultation. So for you, an eight minute walk through babylon…

Walking through Babylon from SImon Zadek on Vimeo.

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