Tag: Finance

CAN Intervention - AWG-LCA Opening Plenary - May 17, 2012

 

Distinguished delegates,
My name is Sunil Acharya and I will speak on behalf of the Climate Action Network. With the LCA's mandate extending till the end of this year, Parties must ensure that outstanding issues will be dealt with promptly, and any remaining matters transferred to the ADP or SBs without loss of work.
 
Parties must agree to a peak year by COP 18 in order to put global emissions on a pathway and keep warming below 2 C and to keep 1.5 C within reach.  Moreover, Parties must urgently agree upon the structure and technical input required as part of the review of the adequacy of the long-term goal to begin in 2013.
 
To ensure the peak year and global goal are respected, Parties must also make progress on clarifying the assumptions behind their targets and actions – a process crucial to raising the level of ambition by COP18 and beyond as part of both the LCA and ADP.
 
As the FSF period is in its last year and the GCF on the way to being operationalized, Parties’ attention should now turn to scaling up towards the $100 billion, and capitalizing the Fund with a significant portion. 
 
This year’s Long Term Finance (LTF) Work Programme provides a critical opportunity for focused and constructive engagement under the UNFCCC on mobilizing and scaling up climate finance, especially from public sources. In order to enable progress towards concrete decisions, previous efforts should now inform a process under the UNFCCC where all Parties can participate in defining the way forward. 
 
The Work Program should contribute to decisions at COP 18 that identifies and advances promising sources of finance especially public sources, provides a roadmap for agreeing to specific pathways for mobilizing $100 billion by 2020, establishes a shared understanding of developing country needs and explicitly commits to providing financing from 2013 onwards. Both the new market mechanism and the framework on various approaches must ensure the high environmental integrity of all carbon markets and not lead to double counting or a “race to the bottom.”
 
Thank you Chair
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CAN Intervention - Long Term Finance Consultations - May 17, 2012

 

Distinguished delegates,
My name is Mahlet Eyassu, Forum for Environment, Ethiopia and I will speak on behalf of the Climate Action Network.At a time when the impacts of climate change are increasingly severe, progress on long-term finance must be more ambitious and cannot be delayed any longer.Since the commitment to mobilize $100 billion in climate finance by 2020 was made in 2009 we’ve seen little progress towards it.  Even more worrying is the fact that there is currently no certainty on how much climate finance will be delivered after the Fast Start Finance period ends this year.
 
The long-term finance work programme provides a critical opportunity for focused and constructive engagement on mobilizing and scaling up climate finance that must not be wasted. It is vital the Work Programme contributes to decisions at COP 18 that:
 
1. Identify and advance promising sources of finance, especially public sources, such as providing guidance to the IMO and ICAO on generating financing from measures to address emissions from international shipping and aviation; as well as public finance liberated in developed countries through the elimination of their fossil fuel subsidies.
 
2. Provide a roadmap for agreeing to specific pathways for mobilising $100 billion by 2020 - including maximization of public sources, an appropriate role for the private sector and trajectory for scaling up.
 
3. Establish a shared understanding of developing country financing needs – based on a review of recent literature on mitigation and adaptation financing requirements; and
 
4. Explicitly commit to providing scaled up financing from 2013 onwards, including for the capitalization of the Green Climate Fund.
 
In addition to constructive engagement on these areas through the work programme, parties must also be afforded sufficient contact group time in Bonn, Bangkok and Doha to negotiate vital decisions for agreement at COP 18.  In this respect it is imperative the Work Programme is seen as a compliment to, rather than a substitute for, the formal negotiations.
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CAN Intervention - AWG-ADP Opening Plenary - May 17, 2012

 

My name is Nina Jamal and I will speak on behalf of the Climate Action Network
Acknowledging the establishment of the Durban platform in COP 17; there is a need to increase ambition immediately AND as part of the comprehensive global climate change agreement to be adopted no later than 2015.  Parties must make progress in Bonn on BOTH in order to ensure that warming stays below 1.5 degrees Celsius and prevent catastrophic climate change.  There are many avenues through which to increase ambition: increasing pledges to the upper range and beyond, new pledges from countries that have NOT yet submitted any, closing loopholes, phasing out fossil fuels subsidies and adopting renewable energy targets.  We could go on! and we hope you do on Monday – but the most important thing is to act and act now.
 
The Durban Platform must mobilize FINANCE for developing country adaptation and mitigation actions, through an equitable global effort-sharing arrangement, both now and for the longterm. In order to mobilize the  needed finance, additional government budget allocations, new sources linked to carbon pricing mechanisms (such as bunkers), and innovative sources of public finance are required. For example, PHASING out fossil fuel subsidies as soon as possible and the FTT, represent an important potential sources of billions in climate finance from DEVELOPED countries and therefore SHOULD be included in these discussions. 
 
The ADP should ensure effective delivery of the $100 billion annual commitment by developed countries, in a manner that enables sufficiently ambitious adaptation and mitigation actions. We all know that $100 billion is not enough and the ADP will need to consider and build upon the work of the LCA work programme on long-term finance to further scale up resources.
 
Beyond 2020, a work plan on equity within the ADP should review contributions to international climate in the context of equity principles, including CBDRRC, and recognising the changing global distribution of capacities and responsibilities. Importantly the ADP must agree a workplan with clear milestones for agreements in 2012, 2013 and 2014 building a path to success by 2015.

Progress on the Path to $100 billion

This year’s long term finance work programme provides a critical opportunity for focused and constructive engagement on sources of climate finance and developing country financing needs. 2012 should be a pivotal year for climate finance, as Fast Start Finance comes to an end and developed countries start on the path to US$100 billion per year by 2020

Negotiations on long-term finance have faced significant headwinds in recent years, and analytical work has been limited to ad-hoc and one-off initiatives like the UN Advisory Group on Climate Change Financing, and fora with limited and exclusive memberships such as the G20. If rich countries want to show climate finance is not just another broken promise to poor countries, they must use this year’s work programme to help make significant progress on agreeing to a roadmap to scale up funding over the next eight years to $100 billion per year by 2020.

To help ensure this ambition is realised, ECO would like to highlight the following objectives for the work programme, for consideration by parties attending today’s UNFCCC consultation on its scope

It is vital the work programme contributes to decision(s) at COP18 that make concrete progress towards scaling up finance, including:

- Identifying and advancing promising sources of predictable and assured finance, especially public sources, such as providing guidance to the International Maritime Organisation and International Civil Aviation Organisation on generating financing from measures to address emissions from international shipping and aviation, as well as financial transaction taxes and public finance liberated in developed countries through the elimination of their fossil fuel subsidies

- Providing a roadmap for reaching agreement on a pathway to mobilising $100 billion by 2020, including maximisation of public sources channelled through the Green Climate Fund, an appropriate role for the private sector and a trajectory for developed countries to scale up

- Establishing a shared understanding of developing country financing needs, based on a review of recent literature on mitigation and adaptation financing requirements

- Clear commitments to provide scaled up finance from 2013 onwards, including for the capitalization of the Green Climate Fund

This work is all the more urgent given the link between raising and delivering climate finance and reaching the goal of staying below 1.5/2 degrees C of warming. Scaled up finance to support increased ambition in developing countries is critical to move them towards low carbon development pathways.

In addition to constructive engagement on these areas through the work programme, all parties must be afforded sufficient spin-off group time in Bonn, Bangkok and Doha to participate in defining vital decisions for agreement at COP 18. In this respect it is imperative the Work Programme is seen as a complement to, rather than a substitute for, negotiations involving all parties.

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Building a Tower of Climate Fighting Power

Like the Secretariat, our LCA chair and many other delegates in the Maritim, ECO also has experience with the trials and tribulations of construction projects. But not to worry. Yesterday, AOSIS and the LDCs presented a new blueprint for a sturdy and livable structure that can be a functional home for all of us, with a minimal carbon footprint and protection from the increasingly uncertain elements.

To build a good foundation, AOSIS has designed some strong pillars to replace or reinforce the flimsy developed country pledges. For instance, the EU, which has been mixing only 20% cement with sand for its concrete, can strengthen its climate edifice by rising to 30% concrete or even more. This is required to meet the building codes anyway, so why skimp and risk collapse?

New Zealand should raise its level to at least 20%. And in Australia, government papers, forced by NGOs to be made public, show that the conditions for its 15% target have already been met.

Belarus, Ukraine and Kazakhstan will need to dig deeper foundations in the second commitment period to prevent vast amounts of hot air.

Canada, which has been out of compliance with building codes for some time, has decided to build tar sand castles and has given up on any construction that will last more than a few years.

Moving from the foundation to the ground floor, AOSIS, troubled by the United States, Canada, Russia and Japan ¨C fleeing the building and planning to build their own shanties ¨C warns they must use comparable construction standards, and prepare for the visit of the building inspector. As long as they remain in the Convention, they must demonstrate that their efforts are comparable to those of Kyoto buildings, and will achieve results consistent with the best available science.

Adequate housing for all requires scaled up contributions to the building fund, which is why the LDCs are unhappy with the lack of reliable and predictable finance. Conventionland’s wealthier residents, who have already built comfortable homes with high carbon footprints, have thus far refused to give a clear timetable towards meeting the US$100 billion commitment by 2020. They only seem to be offering play money and junk bonds to add up to the $100 billion.

With a strong foundation laid, the LDC architects have proposed that a mighty Durban Tower can be built in a few years on the same institutional structure as the current, modest Bali Tower. The venerable old Kyoto Tower will be dwarfed by the combined ambition of these two new structures, which will have ample space for mitigation, adaptation, finance, technology transfer and capacity building. The new towers will be in full compliance will all codes. Regular visits by monitoring, reporting and verifying teams, checking up on finance and mitigation actions, will be welcome events.

The initial sketches from Durban are about to become detailed blueprints, full of shovel-ready projects that will be built for the occupants well in advance of the construction schedule.

The LDCs, like all of us, have placed their futures in the hands of a new Project Manager who we trust will not be satisfied with the current low level of ambition. All the settlers in Conventionland must spare no effort in ensuring the post-2020 Durban Tower reaches new heights, with clear milestones for each coming year.

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The Bonn Ultimatum

ECO is hopeful that countries will approach the Bonn intersessional with a renewed vigour for making real progress towards a fair, ambitious and globally binding deal that reflects the scientific, economic and humanitarian imperatives.

 Equity: All parties must make good faith efforts to understand each other's predicaments. The goal? Establish a commonly understood “equity corridor”, a channel of principles and approaches that could provide foundations towards more detailed, technical and difficult questions. Equity must explicitly and formally become integral to the ADP agenda.

 Mitigation: The work of the Kyoto Protocol track needs to be completed by the end of 2012 with a ratifiable outcome agreed in Doha. The QELROs inscribed in Qatar need to be as strong as possible, with Parties moving to at least the top ends of their pledges. The EU needs to make good on their long-dangled promise of a move to 30%. This move has to be solely through domestic action in order to meet their own target of reducing emissions by 95% by 2050. Another priority for Doha should be that the massive loopholes should be closed, including severely limiting AAU carry over and preventing double counting across the mechanisms and NAMAs.

 In LCA, non-KP developed countries need to define their QELROs, again with increased ambition and closed loopholes. Developing countries that have not come forward with NAMAs or pledges need to. ECO looks to countries like Argentina, Brazil, Indonesia, Nigeria, Iran, Venezuela, Saudi Arabia, Malaysia, Thailand and particularly our COP host Qatar. Their combined efforts have significant potential to close a part of the gigatonne gap. All countries need to use the upcoming workshops to give absolute clarity on the assumptions behind their pledges.

 Review: Bonn needs to continue from the Durban decision by preparing decisions for Qatar on the first periodic review’s scope and other modalities, such as the body to responsible. It is crucial to reach agreement on these remaining items in order to guarantee a timely start in 2013 and for the review to advise the COP’s decision in 2014 and its action in 2015. The opportunity to reinforce science-based knowledge into the highly political UNFCCC negotiations should not be missed.

 International Transport: Discussions to address fast-rising emissions from international shipping and aviation are under way in the International Maritime Organization (IMO) and the International Civil Aviation Organization (ICAO), but have been deadlocked on certain issues. Parties can speed progress there through guidance in the UNFCCC on how to address CBDRRC, and in particular inviting them to direct revenue raised to the Green Climate Fund, in accordance with the principals of the Climate Convention.

 Finance: Fast Start Finance comes to an end in 2012. Unfortunately, it looks like rich countries are planning for Fast Finish Finance instead. For example, the EU's finance ministers meeting this Tuesday may only agree to "continue" climate finance post-2012. ECO knows that this could mean a drop in funding levels compared to the 3 years since Copenhagen. Parties must use this year's Work Programme on Long-term Finance to agree on a pathway and promising sources of public finance. At Doha, parties need to capitalise the Green Climate Fund, set the Board in place and finalise the GCF host.

 Flex Mex: In order to prevent repeating past mistakes, ECO would like to see strong environmental and social safeguards for the new market-based systems under LCA. In SBI, Parties have another chance to adopt a meaningful CDM appeals procedure that would empower all local and global stakeholders, including project-affected peoples and communities.

 Adaptation: On National Adaptation Plans, Parties have to move forward by scaling up financial support immediately to allow LDCs and others to carry out well-designed, participatory planning. These processes should also inform the ADP negotiations towards 2015. On loss and damage, ECO reminds Parties that in Qatar they need to advance items like the consideration of approaches, including an international loss and damage mechanism and climate risk insurance facility.

 MRV: There are two outstanding issues on MRV that the LCA must address. First, there is the need to agree on common accounting rules – without these there can be no robust IAR/ICA processes nor rigorous carbon markets. Second, ECO is disappointed that all references to NGO participation in the IAR and ICA processes were deleted and expects that there will be opportunities to input into these process as they occur.

 Legal: ECO would assume that parties have now agreed that what they are negotiating will be legally binding. It is time to move forward, building off the agreements from Durban, with substantive discussions. An immediate priority should be that a work plan is developed under the ADP with clear milestones for each year leading up to 2015. The work plan should also agree that at some stage there will be a legal group to sort out the outstanding legal issues.

 Capacity Building: There is a chasm between ambition established by the Marrakech Framework and reality today. Over the last 11 years, a small set of developing countries and blocs (BASIC, South Korea, Singapore, Mexico, Israel, etc.) have built their capacity on their own, not as a result of outside support. That still leaves around 140 developing countries lacking the capacity to tackle climate change, even in the near future. In Bonn, the Durban Forum on Capacity Building must scale up capacity development and delivery. LCA should maintain its dedicated sub-item for capacity building.

 Technology: The Technology group needs to focus on two key issues this time. First, ECO asks for more information to be made public regarding the Climate Technology Centre and Network, before the report is presented to the SBI. Second, an effective ADP workplan must address the unfinished LCA technology issues in order to send the right political messages for an effective Technology mechanism.

 Agriculture: ECO expects the agriculture discussion will focus on the goal of maintaining and sustainably increasing food security, particularly in developing countries, whilst putting strong focus on the agricultural sector's adaptation needs. These issues are urgent, as most of the rural poor in developing countries depend on agriculture for their livelihoods. Negotiations must assist small-scale food producers and other vulnerable groups in becoming more climate change-resilient.

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Civil Society Organizations Submission: Observer participation in the proceedings of the Board of the Green Climate Fund

 

Preliminary responses for initial consultation

Our initial response to the questionnaire from the interim secretariat is based on the understanding that arrangements will be made by the GCF Board, including developing and operating accreditation processes in accordance with paragraph 16, section 7, "Observers", Chapter C "Rules of Procedure of the Board", of the GCF Governing Instrument.

We believe that the GCF will benefit from civil society participation/input in a number of ways including increasing transparency, effectiveness and credibility. Thus we invite the Board of the GCF, at its first meeting, to view these recommendations as the initial step in an inclusive, in-depth process for broad consultation and engagement on observer issues and we look forward to further opportunities in the near future to share additional and further developed views with the Board on these important issues.

Active observers according to the GCF Governing Instrument

·       Active CSO board observers (1 North, 1 South)

·       Active private sector board observers (1 North, 1 South)

Proposed structures for observers

 

·       Alternate CSO board observers (1 North, 1 South)

·       Alternate private sector board observers (1 North, 1 South)

·       Advisory Committee (helps vet selections for CSO and private sector seats, and helps advise observers once they are nominated, including preparing pre-board meeting materials and consultations; 1 North, 1 South from each of the UNFCCC 9 constituencies = 18 people total)

·       Third party facilitator for selection process

·       Civil society liaison staff person in the GCF interim secretariat (supports observers)

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