Tag: Kyoto

Finding the Finance

ECO is pleased to see the discussions on long-term finance in Panama finishing on a better note than they started. Too many hours in Panama were lost as developed countries pondered whether there was a need to even discuss how to mobilize the money they committed in Cancun. At one stage one developed country party even seemed to query what climate finance was.

 Let’s hope all that is now water under the bridge (or through the Panama canal). Yesterday the EU joined their partners in AOSIS, the Africa Group, India and Saudi Arabia in submitting text on long-term finance. As ECO goes to press, there is news that Japan and even the US are bringing their own ideas to the table. That sounds like consensus on the need to negotiate a package on long-term finance in Durban. The homework countries face until then, is what that package will contain.

Two upcoming meetings in the meantime may give them some ideas. First, the final session of the Transitional Committee will start to clarify the ambition of the Green Climate Fund. Many developed countries have said they are waiting to hear more about the contours of the fund being created before committing the resources that will ensure it is not an empty shell. ECO hopes that the final meeting will again capture the imagination of governments North and South. The world needs a new kind of fund to meet the climate challenge and spur commitments at the scale of resources needed.

Second, G20 finance ministers and leaders will discuss the report they requested from the World Bank and IMF on sources of long-term climate finance. The leaked preliminary report indicated an encouraging analysis of the potential to raise large sums from the international shipping sector, without hitting the economies of developing countries. ECO was told the report will show that a $25 per tonne carbon price will increase the costs of global trade by just 0.2%, while generating around $25 billion per year. ECO was particularly pleased to hear that the World Bank and IMF have found that it is possible to compensate developing countries by directing a portion of these revenues to them, ensuring they face no net incidence as a result of these measures. That would be a unique international solution to the high and rising emissions of a unique international sector.

ECO has never questioned the legitimacy of the UNFCCC process to take the final decisions on questions such as sources of finance. But any responsible country that is serious about generating the scale of resources so urgently needed – especially by the poorest countries – will not ignore such strong evidence to help do that.

So ECO leaves Panama with cautious optimism on the finance track. Countries have finally come together to negotiate text. With the inputs they will receive from the Transitional Committee meeting and the G20, there is every chance they can arrive in Durban ready to strike the real deal on long-term finance that developing countries need.

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A Fund to Inspire the World

There are nine days left before the members of the Transitional Committee (TC) tasked with the design of the Green Climate Fund (GCF) will gather in Cape Town, South Africa for their fourth and final meeting before the COP in Durban.

It is clear that discussions are in a critical phase. The outcome of the TC meeting will likely determine whether the GCF will become a major driver for change that allows developing countries to shift towards a sustainable, low-carbon and climate-resilient development pathway, or alternatively become just another business-as-usual instrument. Will the Fund initiate a shift in the global financial architecture towards increased ownership for those who face the harsh reality of climate change impacts and wish to harness the benefits from low-carbon development? Or will it be another body with difficult access procedures for developing countries and thus lag behind the urgency of response that is needed? Success is possible in Cape Town, but there is also a real risk of failure.

ECO would like to encourage all TC members to do their utmost to conclude a strong and ambitious GCF which gives the developing world the bold means necessary to address climate change. Concluding their task will not be the endpoint for the design of the Fund, but rather a starting point which will hopefully provide the framework from which the key pillar in the international fight against climate change will emerge. Thus, ECO urges the TC members to focus on finding common ground, seeking compromise and show that the GCF is a joint response by the global community to the urgent problem which we are facing with our backs against the wall. It will not be perfect from its inception, but has to be a solid foundation on which to build.

Importantly, the TC must ensure that the Fund is credible from its inception, and ECO would like to urge the TC members to ensure that the outcome of their discussions is one which civil society can continue to defend. We seek assurance that civil society will be given at least the same attention as the private sector in the procedures of the GCF – for example, through active observer seats on the board and strong in-country participation.

The GCF will be a key channel for adaptation finance, and many civil society organizations have long experience in addressing the needs of peoples most affected by climate change. We seek assurance that a balanced allocation between adaptation and mitigation will be achieved to correct the major global over allocation towards mitigation that exists. We seek assurance that the GCF will enable direct access to funds for developing countries, notwithstanding the fact that reliable fiduciary standards are an important part of direct access design.

We seek assurance that environmental, social and gender safeguards are consistently and effectively applied with a view to reducing the risk that GCF resources are harming the people they are intended to help. Finally, we seek assurance that the GCF will be a key driver of low-carbon, climate-resilient and gender-equitable development pathways thus providing developing countries the help they have long been promised to alleviate poverty and achieve their development goals. There is still a chance to come up with a great result in Cape Town, the world will be watching.

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28 Mouths – 1 Voice

ECO truly appreciates that the European Union still supports the Kyoto Protocol (KP), and is heartened by the commitment of the EU to continue (what some might call) ranting about the importance of a legally binding regime. This week, ECO has been particularly pleased to see that the EU started to show some more readiness to accept a second commitment period of the KP. And ECO understands, from the EU’s stated preference for a comprehensive legally binding outcome of the future framework, that the commitments under the Protocol are going to be kept legally binding.

Of particular concern to ECO is that some representatives from particular European countries favor other positions. Understandably it can be hard to make 28 mouths express the same, clear and coherent position but this is, indeed, urgently needed.

ECO believes that the EU should fight harder to ensure that, in Durban, the KP will move into a legally binding second commitment period with broad participation and binding rules. How would anyone understand that the EU believes it would be easier to build a legally binding regime after abandoning the only legal building block we have?

It is in the EU’s, and the planet’s, own interest to ensure that its commitment to the Kyoto Protocol goes beyond a political declaration. Moreover, if the EU is really keen to get all countries to negotiate a legally binding outcome in the LCA, promoting a political commitment to the KP does not seem the best strategy. Increasing ambition means going up, not down.  

Next Monday, when the EU member states' environment ministers meet in Luxembourg, the EU has the chance to unambiguously put its position on paper and ECO believes the time has come to do so and take on a clear leading role. To accept and adopt a second commitment period of the KP does not require anything more than what the EU is already doing, so ECO would find it difficult to understand that the EU denied this breath of fresh air to the current climate talks.

ECO believes the EU could gain a lot if it could leave Durban as the Party that (once again) shaped the outcome of the COP and helped to save the only existing pathway to a global legally binding agreement.

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Don’t Give LULUCF the FLU

LULUCF has been suffering from a variety of ailments but now it looks in danger of getting FLU. The “Flexible Land Use” proposal, being heavily marketed by New Zealand, allows countries to cut down trees and replant them somewhere else, but instead of counting this as deforestation and reforestation and counting the emissions accordingly, it brings this under forest management rules – the ones that allow countries not to account for substantial increases in logging emissions compared to historical levels.

 Some might argue that New Zealand having FLU is unfortunate but not disastrous but this provision could be contagious - what if lots of other much larger countries have FLU too? What if this proposal goes viral and REDD countries catch it?  ECO suggests that a cure is achieved as soon as possible by eliminating FLU from the LULUCF discussions.

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Lackofambitionitis

One thing that developed country delegates might want to report to their ministers back home is how they spent the full week talking about measuring, reporting, and verification. This was done instead of getting serious about their need to increase their levels of ambition. The signs of chronic lackofambitionitis are clear and have dire 4°C symptoms –  including rising sea levels, disruption of food production, forest fires, increasing droughts and much more.

 The gigatonne gap, which negotiators have left largely untouched in Bangkok, Bonn and again in Panama, is now up to the ministers to pick up. Of course, it can still be hidden under the carpet of a number of technical COP decisions on mitigation, but ECO can’t believe anyone will be thinking that this related disease has been even remotely addressed.

 The cure is simple but requires a steely resolve.  Acknowledging the magnitude of the gap and resolving to close it, is the first step that ministers can take as they fly to South Africa for the pre-COP. A second step would then be to move the mitigation ambition to the upper end of the pledges. Extensive research has shown that countries like Australia and the EU can both reduce the symptoms of the broader disease and improve their own economic health by moving to the upper end of their pledges. Of course, the cure requires other countries to do more and thoroughly review their pathetic low pledges. This is the case for Canada and the US neither of which is planning to reduce their emissions much below their 1990 levels. And this is also the case for countries as Russia, Ukraine and Belarus whose pledges would assume emissions that are much higher than all business-as-usual projections. Preventing the deadly effects of lackofambitionitis requires industrialized countries to move their emission reduction targets to the upper end of the 25-40% pledge that was agreed in Cancun. We know that the cure is within reach as countries like Denmark, Norway, Germany and others have shown the way and thus deserve to be recognized as leaders in a race to the top.

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Good Things Come to Those Who Talk

One of the key emerging stumbling blocks for an outcome in Durban is the unrepentant blocking of progress by some countries on long-term sources of finance.  ECO is not amused by the strong arm tactics of the US, Japan, and Canada.  As part of the balanced package in Cancun, countries agreed to meaningful progress on finance, which didn’t just include creating institutions.  After all, why create bank accounts if you don’t fill them with some money?

These few countries are either confident they can get the money they have committed mobilized all on their own, and don't need to talk about how to do that here, or they weren’t serious in the first place.

Giving these countries the benefit of the doubt and assuming they’re serious about keeping their long-term finance commitments, it's not unreasonable for others to ask them what their plan to deliver on those commitments looks like.  Surely discussing the plan with others will also be mutually beneficial - after all, many heads are better than one.

A new process to discuss the mobilization of long-term finance would enable countries to bring their best ideas into the mix. It would enable all countries to start talking about how to implement a certain finance option or set of options. Instead of talking about the “many, many” reasons why they can’t do something, Parties could discuss how to find solutions. Last we checked, saying “no, no, no” doesn’t qualify as problem solving. 

ECO is disappointed that these countries – with so much finance expertise – wouldn’t see an opportunity to help mobilize the kinds of resources needed to address climate change.

Opportunities exist that can help the US, Canada, Japan and others to raise the resources they have committed, if they work with partners in this process, not on their own outside it. Spurring a process to price emissions from international shipping under the International Maritime Organization is just one example.  

So stop blocking and instead help to create a process to bring to bear your expertise in finding solutions. You are claiming that you are doing a lot to scale up climate finance, there will be no gap between 2013-2020 and that you are fully committed to deliver on your long term finance commitments. So why resist moving forward via having text as basis for negotiations?

We know that there are red lines issues, but this shouldn’t be one of them for the U.S., Japan, and Canada.

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Canada Exposed!

Under Stephen Harper the Canadian Government has become a seasoned veteran when it comes to dealing with criticism for their lack of action on climate change and reckless approach to tar sands expansion. This week in Canada, there has been a triple blow to the Government’s climate and energy policy from some prominent sources:

- National Round Table on the Environment and the Economy – this para-governmental institute with close ties to the conservative government released a report that estimates climate change impacts and adaptation costs in Canada have been seriously underestimated.  The report finds that these costs could reach between 21 and 43 billion dollars per year by 2050.

- Canada’s Environment Commissioner – the Government’s own watchdog, issued a report saying he could find no evidence that the government had any plan that would come close to reaching even its own weak GHG reduction targets.  He went on to berate the government for basing tar sands projects on “incomplete, poor, or non-existent environmental information.”

- European Commission – despite years of aggressive lobbying by the Canadian and Albertan Governments, the European Commission is sticking to the science and insisting that their Fuel Quality Directive reflect the high GHG content of the tar sands. This precedent-setting decision, sends a clear signal reinforcing the truth that the tar sands are one of the world’s dirtiest fuels.

 Responding to questions in Parliament on these reports Environment Minister Peter Kent tried to reassure his colleagues that, “our government has definitely not given up on the environment.” One could almost hear the proverbial ice melting from under his feet.  Oh Canada!

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