AFTER A YEAR of complicated and tough negotiations, world leaders will meet in the Danish capital, Copenhagen for a 12-day summit, beginning tomorrow, to try to reach an agreement on the fundamental issues that will form the substance of a legally binding international agreement.

Despite the camaraderie displayed in Port of Spain over a week ago during the climate change discussions by Commonwealth leaders, who were joined by UN Secretary-General, Ban Ki-moon, French President Nicolas Sarkozy and Danish Prime Minister Lars Lokke Rasmussen, no one should be under any illusion that it will be easy sailing in Copenhagen.

Far from it, according to signals already coming from many developed nations.

World leaders are facing three core issues: They need to resolve ambitious mitigation targets in the developed countries; how to consider mitigation actions in developing countries; and the issue of financing.

Reaching agreement in Copenhagen is important. According to the UN Framework Convention on Climate Change, mankind has already added enough greenhouse gases in the atmosphere to raise temperatures to a dangerous level, and this is already leading to increased incidences of drought, heat waves, and heavy storms.

The purpose of an ambitious and effective international climate change deal is to avoid catastrophic climate change, and to help the most vulnerable countries adapt. The world has only a very narrow window of opportunity to undertake a first dramatic shift towards a low-carbon society, and to prevent the worst scenarios of scientists from coming true.

Scientists report that the global average temperature of the planet in the past century has risen by about 0.7 degrees Celsius. They attribute some 90 per cent to human activities that emit greenhouse gases, such as power generation, deforestation, transport, agriculture and industry.

The Inter-governmental Panel on Climate Change (IPCC) warns that impacts are already being felt, and further changes could be abrupt or irreversible. They suggest global greenhouse gas emissions must decline rapidly, if we are to avoid a dangerous increase in temperature.

In Port of Spain, Secretary-General Ban warned against the costs of failing in Copenhagen.

Failure to seal a deal could result in increased human suffering, higher economic losses, and opportunities squandered in terms of productivity, global competitiveness and political stability.

In the Port of Spain Climate Change Consensus adopted at the conclusion of the Commonwealth meeting, the leaders defined climate change as the “challenge of our time.”

The agreement in Copenhagen, they said, must address the urgent needs of developing countries, by providing financing, support for adaptation, technology transfer and capacity building, as well as approaches and incentives for reducing emissions from deforestation and forest degradation from developing countries (REDD), and for afforestation and sustainable management of forests.

Commonwealth leaders also supported the establishment of a Copenhagen Launch Fund for developing countries to start in 2010, and build to US$10 billion a year by 2012, as proposed by UK Prime Minister, Gordon Brown and France’s President Sarkozy.

The Commonwealth called for immediate, fast disbursing assistance of at least 10% of the fund, with a dedicated stream for small-island States and associated low-lying coastal States of the Alliance of Small Island States, and for a specified and comparable funding stream for the poorest and most vulnerable countries.

At least, for this latter commitment, the Commonwealth meeting would have achieved substantially for island states already reeling from the impact of climate change.

For countries such as the Maldives, the lowest-lying nation on Earth, climate change is threatening to wipe out the chain of islands and submerge it beneath the sea.

To dramatically illustrate the devastating impact on the islands, Maldives President, Mohammed Nasheed and members of his government, outfitted with oxygen tanks and snorkels, last month held an underwater Cabinet meeting.

Underwater, members of the Cabinet signed a document calling on all countries to cut down their carbon emissions ahead of the UN Climate Change Conference in Copenhagen.

Several weeks ago, the Caribbean Community (CARICOM) Secretariat unveiled a campaign to promote the region’s collective position on climate change: 1.5 C to Stay Alive, which is intended to support and dramatise a common regional approach for mitigating the effects of climate change.

According to World Bank estimates, the total annual impact of potential climate change on all CARICOM countries is approximated at US$ 9.9 billion a year, or around 11.3% of total annual GDP of all CARICOM member states and associate members.

But whether a deal is struck or not in Copenhagen, each one of us — governments, business, communities and individuals — will have to accept personal responsibility to reduce impact on the environment.

Balancing economic fundamentals and environmental concerns is a major challenge facing countries worldwide, including the Caribbean, a largely natural resource-based region highly vulnerable to the pressures of trade of goods and services.

For the business sector, climate change presents a significant opportunity to transform their products and services, help shape public opinion, and influence policymakers.

Business, in fact, is increasingly recognised as being pivotal in helping to shape the quality and type of communities in which we live.

It is also facing greater demands to play an even broader role where their corporate strategy and behaviour can lead to positive impact on society, communities and on the environment.

For instance, dealing positively with environmental challenges such as pollution, resource depletion, loss of biodiversity, damage to ecosystems, harmful emissions and climate change can redefine the relationships between business and society.

An external environmental challenge that businesses will eventually face, if they haven’t started already, is the stringent policies that are being put in place by some of our key markets as more weight is given to environmental considerations in trade.

More countries worldwide are also recognising the increasing importance of environmental integrity as a source of competitive advantage, and as a driver of economic development, both in terms of new business opportunities and as a spur to innovation throughout the economy.

There are welcoming signs that businesses in the Caribbean are engaging in the climate change debate in the context of their own operation, and in the country and region where they operate.

It was heartening to hear Chairman and Chief Executive Officer of BP Trinidad and Tobago, Robert Riley saying that despite Trinidad and Tobago being a producer of oil and gas and a major energy consumer, the country should rethink its energy policy from both the supply and consumption sides, and consider the role it can play in more efficient energy utilisation, and the development and introduction of renewable energy.

He also supports the introduction of a regional policy that deals with energy efficiency and diversifying the energy mix of hydrocarbons and alternative wind and solar energy.

Jeffrey Mack, Chief Executive Officer, Guardian Holdings Group, noting the impact of climate change on the insurance industry, said insurers must seek to capitalise on opportunities to invest in sustainability for the future.

In the Caribbean, vehicles and vehicular accident claims make up a substantial percentage of payouts. This sector is one that contributes directly to carbon emissions, and, subsequently, climate change.

This, for instance, gives the insurance industry a window of potential to work with Caribbean governments to research and develop greener alternatives for consumers, according to Mr. Mack.

The insurance sector also has an important role to play in promoting the awareness of climate change.

As risk management experts, the industry has a responsibility to identify new opportunities and responses to address the effects of climate change, according to him.

Ultimately, the insurance industry will be expected to not just comply with resolutions established by COP 15. As members of the global community, we need to focus our lenses to lead the implementation of the new treaty, he said.

Indeed, what is required by all stakeholders in the climate change debate in Copenhagen is the political will to take concrete, decisive action.