Tag: Finance

CAN Submission: Cancun Building Blocks, October 2010

THE POST-COPENHAGEN ROAD

A fair, ambitious and binding deal is needed more urgently than ever. Climate science is more compelling by the day. Impacts are coming harder and faster. Disastrous flooding in Pakistan, heat waves and forest fires in Russia and hottest recorded temperatures around the globe, amongst other devastating climate-related events, all point to the need for urgent action. Levels of warming once thought to be safe, may well not be, 1.5˚C is the new 2˚C. 

Negotiations Post-Copenhagen
Copenhagen was a watershed moment for public interest and support for climate action – and people have not lost interest. More people in more countries than ever have put their governments on notice that they expect a fair,
ambitious and binding global deal to be agreed urgently. Trust-building is essential after the disappointment of Copenhagen. Developed country leadership must be at the core of trust building efforts. Countries must show
their commitment to the UNFCCC process by driving it forward with political will and flexible positions, rather than endless rounds of repetitive negotiations. Many countries are troublingly pessimistic for Cancun, and are working to lower expectations. While others, including countries most vulnerable to climate change, maintain high expectations.

Challenges ahead of Cancun
There are many challenges to getting a full fair, ambitious and binding deal at Cancun, including:

  • Lack of a shared vision for the ultimate objective of the agreement, and the equitable allocation of the remaining carbon budget and emissions reduction/limitation commitments;
  • Sharp divisions on the legal form of an eventual outcome;
  • Failure of the US Senate to pass comprehensive legislation this year; and
  • Current economic difficulties facing many countries, which make it difficult to mobilize the substantial commitments to long-term climate finance needed as part of any ambitious agreement. 

Positive moves afoot
However, more and more countries, both developing and developed, are stepping up their efforts to pursue low-carbon development and adaptation, despite the absence of an international agreement. This can be seen in a variety of ways:

  • Investments in renewable energies have continued their exponential growth, increasing to 19% of global energy consumed;
  • Progressive countries are working to move the negotiations forward;
  • There is a growing perception that low-carbon and climate-resilient development is the only option to sustainably ensure the right to development and progress in poverty reduction. 

So, what does a pathway forward look like?

Firstly we must learn the lessons of Copenhagen. The “nothing’s agreed until everything’s agreed” dynamic from Copenhagen could mean that nothing would be agreed in Cancun. An agreement in Cancun should instead be a balanced and significant step toward reaching a full fair, ambitious & binding deal at COP 17 in South Africa. This will require parties to work together in good faith to create sufficient gains at Cancun, and a clear roadmap to South Africa. This paper outlines how that could be achieved. 

Show Us the Money

 

As nations consider whether to introduce a new, improved technology framework in advance of COP22, ECO has a plaintive question for delegates: Is this the year when you plan to show us the money?

COP veterans can trace debate over the technology framework back to COP7 in Marrakesh. ECO has heard about the fundamental dissatisfaction with the current tech framework and its limited utility in meeting the Paris goals. ECO has also seen developing countries driven into successive rounds of technology needs assessments (TNAs), project registries and bilateral/multilateral funding mechanisms. At every turn, precious time has been spent developing funding methodologies and accountability tools, so that projects could roll out.

It’s been a long and tortuous enough process to leave ECO counting the grey hairs on its head.

They’re much more plentiful than they were the last time we were in Marrakesh!

With the momentum and ambition that nations worked so hard to build into the Paris Agreement, COP22 must set the stage to turn TNAs into fundable projects. We need institutions that can move with lightning speed to mobilise funds, build capacity and introduce structures that make it easier for countries to adapt and adopt the technologies that pretty much every nation wants.

A successful mechanism will also require institutional architecture that enables developing countries to set their own technology priorities. That will mean transferring the “software” as well as the “hardware”. Solar panels, grid-scale batteries and soil remediation technologies will help developing countries to function as full participants in the Paris implementation. But they’ll also need the information, analysis and know-how to put those systems to use.

Countries started the technology dialogue the last time the COP was in Marrakesh. Let’s close the loop and get the right solutions in place when we go back this year.

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A Roadmap in the Making

 

August may be a month of vacation of many, but ECO is thrilled that developed countries are spending these months working on their roadmap, instead of their tans. It’s great that Parties want to show how they will fulfil their $100-billion-a-year-from-2020 promise.

An obvious starting point is to provide projections as to how levels of public and private finance will increase. Given that there will be a temptation to just extrapolate some shiny figures derived through questionable accounting methods, ECO suggests that, in both cases, public finance and mobilised private finance, should be accounted for through robust annual plans on how these levels will be reached. Don’t even think of simply applying some random leverage factors or anything of that sort from old trick tool box.

The roadmap should spell out scenarios for different sources, instruments and channels to back up the projections. It could also be an opportunity to show how it is possible to overcome existing barriers to achieve such scenarios, for example through massive support for capacity building and readiness measures, and accelerating implementation of direct access models for accessing finance.

For ECO, and more importantly all those severely affected countries in urgent need of adaptation, it would be a real downer if the roadmap were not to include a projection on how adaptation finance will increase significantly over the next couple of years, following the call from Paris. The roadmap should include a target level for the amount of annual adaptation finance to be reached by 2020.

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CAN Submission: Elaborating Modalities of Accounting for Climate Finance, July 2016

~CAN welcomes the opportunity to present its views on the modalities for the accounting of
financial resources provided and mobilized through public interventions in accordance with
Article 9, paragraph 7, of the Paris Agreement in this submission.

For climate finance provided towards meeting obligations under Article 9.1 of the Paris
Agreement (PA) to be politically sustainable, transparent and mutually-agreed systems for
accounting and tracking flows are fundamental, inter alia, to assess progress towards meeting
obligations but also to allow learning from experiences in the provision, mobilisation and usage
of climate finance, to enhance effectiveness and efficiency of such finance and its role in
keeping warming below 1.5°C by supporting low-carbon and climate-resilient development in
developing countries.

Current reporting systems (e.g. the Biennial Reporting provisions) lack completeness,
consistency and detail that in our view is required to meet those objectives. Some developed
countries are including many types of projects and financial instruments that recipient nations
and civil society observers do not consider appropriate. Levels reported may be inflated or
overestimated, financial instruments that do not constitute actual support are included, and the
climate-relevance of finance is often questionable. The current accounting systems do not
reflect on finance flowing back to developed countries (e.g. as part of repaying loans, or return
on private investments). Lack of detail, especially where countries do not report on a projectlevel
basis, does not allow comprehensive and consistent monitoring, verification and
evaluation, hampering potential to learn from, and advance, climate finance.

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CAN Briefing: G20 Key Demands, July 2016

In December 2015, the G20, as part of the 196 Parties to the UNFCCC, committed to a historic global agreement to address climate change and pursue efforts to limit the global temperature increase to 1.5°C above preindustrial levels, so as to mitigate the harmful effects on the world’s people, biodiversity and the global environment.

According to the IPCC, the global carbon budget consistent with a 66% chance of limiting the temperature rise to 1.5ºC will be used up by 2021 if we carry on under current projections. For any fair likelihood of meeting the Paris temperature targets, our collective mitigation efforts need to be multiplied as soon as possible. Otherwise, our countries and economies will face severe impacts of unstoppable climate change, including social, environmental and economic instability. In recent years, we have seen the G20 countries take more serious notice of the role that climate change plays on its overall objectives, in particular its objective to promote financial stability. G20 leadership on climate change is extremely important since the greenhouse gas emissions of the G20 member countries account for approximately 81% of total global emissions. It is therefore imperative that the G20 countries start collaborating immediately on the implementation of the Paris Agreement, using their influence, to develop a consensus-building approach and focus on financial stability to drive stronger action on climate change.

Climate Action Network has eight key demands for the G20:

  • Ratify the Paris Agreement as soon as possible; 
  • Develop and communicate interim National Long-term Strategies for Sustainable Development and Decarbonization by 2018; 
  • Achieve an ambitious outcome on HFC phase-down this year;
  • Introduce mandatory climate-risk disclosure for investments; 
  • Remove fossil-fuel subsidies;
  • Accelerate renewable energy initiatives towards 100% RE; 
  • Ensure that new infrastructure is pro-poor and climate compatible;
  • Support effective ambition for international aviation and shipping.
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The Pre-2020 Opportunities Package

It’s on everybody’s lips and on everybody’s mind: COP22 is going to be the Action COP. The Moroccan presidency will need to do their utmost to start closing the ambition gap with concrete action on mitigation, adaptation and support. ECO invites Parties to join the incoming presidency in its efforts to build on the spirit of Paris.

The 2016 facilitative dialogue, finance high-level event, agreement on a capacity building work program, engagement of the high-level champions, and the high-level event to strengthen cooperative initiatives within the Global Climate Action Agenda can all be harnessed to help drive greater ambition.

The COP22 facilitative dialogue should aim to capture over-achievement by various countries and regional groups on the Cancun pledges, and should explore how NAMAs in the UNFCCC NAMA Registry pipeline could be supported to unlock potential short-term mitigation ambition even before Marrakesh. ECO also calls for developed countries to have a close look at what concrete sectoral commitments they can bring to the table.

At SB44, we saw the first ever technical expert meetings (TEMs) on adaptation, and two TEMs with follow-up dialogues on mitigation. The biggest challenge is converting the TEMs from a knowledge forum to an implementation one, developing a synergistic relationship with the various institutional bodies within UNFCCC and the broader Action Agenda.

ECO warmly welcomes the appointment of Laurence Tubiana and Hakima El Haité as the global high-level champions for pre-2020 climate action. In the next month, both must focus on developing a roadmap, which should lay out strategies to scale up transformative initiatives, and address the barriers to rapid deployment of climate-friendly technologies identified by the TEMs. They must also focus on championing the emerging Action Agenda.

Morocco should work transparently with France, Peru, the Secretariat, and the UNSG’s team to develop the necessary light-touch institutional infrastructure to strengthen the Global Climate Action Agenda. ECO proposes the establishment of a small permanent support team and funding arrangements, with clear links to the on-going UNFCCC technical examination processes for mitigation and adaptation.

There also needs to be an agreed set of criteria to bring initiatives into the Action Agenda. While it’s encouraging to follow the science-based target setting of some progressive business coalitions, it’s maddening to see the continued green-washing and sometimes blatant lying of the laggards (#ExxonKnew). ECO worries that giving the UN stamp of approval to such actors will not only undermine the credibility of the UNFCCC and the Action Agenda, but also put us further away from 1.5°C.

Then there’s the role of non-Party stakeholders. The Action Agenda must be about facilitating, enabling, and amplifying the interplay between states and non-state actors (with the exception, obviously, of those fossil fuel laggards!).

All these intended national actions cannot be scaled-up without the necessary finance. COP22 provides the opportunity for developed countries to finally “put their money where their mouth is,” enabling developing countries to upscale their NDCs. And to think about how they will move innovative sources of finance forward.

Lastly, capacity building will be the key to unlock much of the adaptation and mitigation potential of developing countries in the coming years. At COP22, Parties need to get the Paris Committee on Capacity Building (PCCB) off the ground to address gaps and needs, both current and emerging, to build capacity in developing countries.

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Roadmap to $100bn Must Specify Adaptation Finance

Between now and Marrakech, developed delegates should start reflecting how much adaptation matters to the continent that is going to host COP22. Africa (along with many other countries, to be sure) is already bearing the brunt of climate change: crops are failing, water is diminishing, and lives and livelihoods are under threat from climate change. These mounting impacts are underscoring the frightening lack of adaptive capacity in many developing countries and communities, and the need for donor countries to ramp up financial assistance to enhance adaptation and resilience.

ECO calls for the African COP to pick up this unfinished business from Paris. Mark a turning point in adaptation finance. As developed countries get serious (finally!) about drafting a roadmap on how they will meet their $100-billion-a-year promise, they should explicitly spell out to what extent they will significantly increase annual adaptation finance by 2020. It’s not that hard. The GCF managed to do it. They set a goal to allocate 50% of their resources to adaptation. Surely developed countries can set a similar target for adaptation finance.

What’s needed at COP22 is not window dressing, but a real change increasing adaptation assistance to developing countries. This doesn’t mean shifting around existing aid budgets. It means new sources of public finance are put in place.

Just a number is not enough. We must also develop scenarios on how to ensure increased adaptation finance reaches the most vulnerable communities, people and populations, looking specifically at the needs of LDCs, SIDS, Africa and other highly vulnerable countries with low capacity. The roadmap should empower recipient countries in using climate finance by dedicating significant investment in readiness, capacity building and direct access models.

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