Tag: Cancun

The $100 Billion+ Question

Cancun delivered the Green Fund, now Durban must deliver the sources of finance to fill it. Where the money will come from is the $100 billion+ question governments will need to answer at the African COP.

Financial flows for climate action must be scaled up to the tune of several hundred billion dollars a year. While much of this can come from the private sector, principally for mitigation, it won’t flow without public funding to invest in capacity-building, technology R&D, creating policy and regulatory frameworks, and to leverage the private sector investments into areas where they are not now flowing.

Meanwhile REDD requires public finance investments over the next decade in the tens of billions of dollars, and adaptation requires even greater sums of public finance. It’s clear to ECO that the annual $100b figure must be almost entirely public finance to make a significant contribution to the amount of financing needed.

ECO recognizes that there are many issues on the finance agenda in Bonn – from learning the lessons of the fast-start finance (2010-2012), establishing new institutions, and deciding the scale of finance requirements. The finance issue that parties should focus most of their efforts on here in Bonn, and between now and Durban, is how to generate the public finance required.

Part of this must be from developed country budgets. But how much and from which governments must be spelled out. Durban is only one year away from the end of the fast start funding period, and there are as of yet no concrete commitments at all for the 2013 to 2019 period.

But even if we assume optimistically that governments will scale up from the fast-start levels, the problem remains. Developed countries have a tendency to provide funding that is not new and additional, but rather often comes at the expense of other existing commitments to development finance. Supplementary sources alongside government budgets will be absolutely necessary if we are to reach the levels of predictable, new and additional public finance required.

What is needed is a clearly defined and structured process to analyze, negotiate and reach conclusions on the sources of long-term finance between now and Durban. This process should involve workshops, submissions, informal Ministerials, receipt of and responses to input from past processes like the AGF and ongoing processes like those in the IMO and G20. By Durban this process should reach key conclusions on several concrete sources of finance and set out a pathway forward to operationalize them and identify further sources needed. This should include the establishment of an effort sharing approach for developed country governments’ budget contributions, and also explore a range of new and innovative sources, including international transport (bunkers), financial transaction taxes (FTTs), and Special Drawing Rights (SDRs). 

A breakthrough agreement in Durban on the basic parameters of a mechanism to address emissions from international transport, that can generate finance for climate action in developing countries, would demonstrate conclusively that the multilateral process is alive and well and breaking new ground. If Durban can also get resolution on a second commitment period on the Kyoto Protocol that sends a strong signal and provides certainty to private sector investors, Durban could well be remembered as a turning point on the road to a fair, ambitious and binding global regime.

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Japan Takes 1st Place Fossil of the Day for KP Attack, U.S. Scores 2nd and 3rd

8 December 2010

Cancun, Mexico – Japan earned a 1st place Fossil for its continued efforts to kill the
Kyoto Protocol by preventing a second commitment period from moving forward.
The United States, fresh off its first, and 1st place, Fossil in Cancun yesterday, earned
its first 2nd and 3rd place Fossils for slowing technology transfer and developing
country adaptation support.

The Fossils as presented read:
"The United States wins the 3rd place Fossil. Congratulations US - Technology
transfer has been a core commitment since the beginning of the Convention, and
we’ve already wasted too much time discussing how to do it. A workable proposal is
finally on the table and everyone else is willing to go with it and establish the new
technology mechanism here in Cancun. But yesterday, you made it clear that in your
view, the Parties should only ‘consider’ establishing it.

That’s strange, given that the Copenhagen Accord clearly states that leaders agreed to
‘establish a Technology Mechanism’, ‘operational immediately’. We are surprised
you are going back behind what heads of state already agreed to and try to renegotiate
a deal struck a deal struck among world leaders. For the last year, most parties in the
technology negotiations have been working hard to answer the remaining questions
and a lot of progress was made in Cancun. While everyone else is being flexible, your
obstructionism is blocking any progress.

The US championed the need for a technology center and network and you are
developing some regional center pilots, so why the heartburn on the proposal on the
table? Concerns by US clean tech companies about being under a burdensome and
bureaucratic UN body are misinformed; what our warming world needs is precisely
what a multilateral mechanism can deliver: coordinated planning and implementation
to speed-up and scale-up the what poor countries and communities need to transition
quickly to a low-emissions future."

"The USA wins the 2nd place Fossil for delaying agreement on the establishment of
an Adaptation Committee, which is demanded by developing countries to improve
coherence and coordination of adaptation under the Convention. The US continues to
insist on clarification of the functions and asked in Cancun whether this could not be
dealt with under SBSTA, an approach which they had rejected some years ago when
it was on the SBSTA agenda. The Convention process requires a dedicated
institutional arrangement on adaptation which can initiate further action, not limited to
technical advice. This function cannot be fulfilled by existing institutions outside the

"The 1st place Fossil goes to Japan. Although the Minister arrived on Sunday, Japan
has not yet changed its position of rejecting to put its target for the second
commitment period of the Kyoto Protocol, which virtually kills the future of the
Kyoto Protocol. Despite the plea from all around the world, even in the midst of the
isolation (with hidden allies consisting of Russia and Canada), Japan's inflexibility
endangers the whole discussion of the future framework at CANCUN, which the earth
desperately needs."

About CAN: The Climate Action Network is a worldwide network of roughly 500
Non-Governmental Organizations (NGOs) working to promote government and
individual action to limit human-induced climate change to ecologically sustainable
levels. www.climatenetwork.org

About the fossils: The Fossil of the Day awards were first presented at the climate
talks in 1999  in Bonn, initiated by the German NGO Forum. During United Nations
climate change negotiations (www.unfccc.int), members of the Climate Action
Network (CAN), vote for countries judged to have done their 'best' to block progress
in the negotiations in the last days of talks.


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