Tag: text

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.

Topics: 
Related Event: 

Drought in Ethiopia Requires Financing From Developed Countries...Do It by Durban!

Mahlet Eyassu: what is needed on climate finance this year.

Photo Credit: Manjeet Dhakal

Mahlet Eyassu
Climate Change Program Manager
Forum for Environment
Ethiopia

We are now in Panama, for the intersessional which is the last meeting before the Conference of the Parties (COP) in Durban. The 17th COP will be in Durban, South Africa, which make this a very important COP for Africa.  Africa along with Least Developed Countries and the Small Island States are the most vulnerable to the adverse impacts of climate change. Even though Ethiopia is one of the least developed countries that is showing a rapid economic growth, it is still being affected by drought.

At the moment the Horn of Africa, including Ethiopia, is confronted with recurring climate change related disasters, in particular prolonged droughts and floods. This drought is said to be the worst in 60 years. Drought is not something new for Ethiopia nor the Horn. However, it has become more recurrent and severe in the last decades.  Climate change is making the matters and problems worse for us who are under-developed.

In order to address the impacts of climate change, countries are negotiating under the United Nations Framework Convention on Climate Change (UNFCCC). In its 15th and 16th meetings an agreement was reached that developed countries will be supporting adaptation and mitigation actions of developing countries. We are now approaching the end of 2011, where the fast start finance of $30 billion for the years 2010-2012 is about to end. The other decision we have is the one on long-term finance to mobilize $100 billion by 2020. So far there are no pledges from the developed countries for the year 2013 and onwards.  That is a worry for us coming from the developing world. We have learned some lessons from the fast start finance, which is not new and not additional to the ODA, but is just relabeled as climate finance, given in the form of loans instead of grants. There is an imbalance between adaptation and mitigation with more money going to mitigation actions instead of adaptation.

Forty member countries of the transitional committee are designing the Green Climate Fund (GCF) of whose works will be presented in Durban to be approved by the Conference of Parties (COP).  However, most developed countries do not want to have any form of discussion on long-term finance which is supposed to fill this fund. With all of these climate related disasters happening in most parts of the world, especially developing countries being the most vulnerable and having no capacity to adapt, adaptation finance is very crucial for us. It is a matter of survival and should be taken seriously by others. Developed countries need to get more serious and commit themselves to discuss the sources of finance that will feed into the new fund. If we want an outcome in Durban, most discussions and texts need to happen here in Panama.

It is good to note that, developing countries at the local and national level are also working to raise funds for their adaptation and mitigation actions. In my organization back home, Forum for Environment-Ethiopia, we have started an initiative to raise funds, which can be used for some local adaptation actions. We have started implementing the green tax initiative in which 1% of our salaries are deducted every month. We have done this for the past year and have raised small amount, which has not been used yet. Now we want this to be taken up by other organizations at the country-level to show our commitments by raising more money and taking  local initiatives. We have started the process of engaging others to hopefully have a larger impact. Progress in Panama in all issues, especially finance, is very important for us to achieve something in the African COP in Durban.
 

Topics: 
Region: 
Related Event: 
Related Member Organization: 

LEAKED LULUCF LOOPHOLE TEXT

ECO just found (under a delegates desk) the draft final decision on LULUCF for Durban. In the interest of full transparency, we reproduce it here.

Decision -/CMP.7

Land use, land use change and forestry

Acknowledgingthat we have been working on this subject far too long and may have lost all sense of proportion,

Recallingthat we made a real mess of this last time as well,

Affirmingthe need to generate credits and hide debits from LULUCF activities,

Recognisingthe need to change jargon frequently, as with force majeure natural disturbance,

Hidingforest management emissions beneath unrealistically inflated reference level projections,

ForgettingArticle 4, paragraph 2 (a) of the Convention, which states that “Each of these [Annex I] Parties shall adopt nationalpolicies and take corresponding measures to mitigate climate change, by limiting its anthropogenic emissions of greenhouse gases and protecting and enhancing its greenhouse gas sinks and reservoirs,”

Overlookingthe urgent need to reduce emissions in all sectors,

Underminingthe ultimate objective of the Convention,

Wonderingif we will get away with this,

Decidesthat each Party in Annex B can account for LULUCF activities however it likes,

Further decidesthat other Parties shall not use this transparent accounting scam as an excuse to fiddle their own LULUCF or REDD accounting .

Topics: 
Related Event: 
Subscribe to Tag: text