Transcript Negotiation Indices

ADAPTATION FUNDING
Ambassador Enele Sopoaga
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initiative européenne de renforcement des capacités
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for sustained capacity building in support of international climate change negotiations
pour un renforcement durable des capacités en appui aux négociations internationales
sur les changements climatiques
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Recognising that:
• Adaptation to the impacts of climate change is
key to poverty eradication and sustainable
development;
• Assisting developing countries, particularly the
poor and the most vulnerable countries, cope with
their adaptation needs due to the impacts of
climate change is an obligation under the
UNFCCC and its Kyoto Protocol.
• The devastations already impacted and predicted
on developing countries, due to climate change
are serious and life threatening;
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Recognising that:
• There is a genuine need to urgently explore
means of adequately addressing the adaptation
funding needs of developing countries in a
sustainable long term basis.
• There is also a need to carefully and timely
consider issues of governance of adaptation
funding and particularly that of the Adaptation
Fund to ensure equitable representation of
developing countries in its governance,
expediency of project approvals, and effective
implementation of real adaptation on the ground.
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Adaptation Funding Needs
• On recent assessments, adaptation funding needs of
developing countries will amount to tens of billions of
dollars a year (World Bank, Oxfam and UNFCCC);
• So far only a few hundred million dollars is available from
“voluntary” funding sources – (LDCF, SCCF, SGP/GEF,
SPA/GEF and bilateral);
• A huge gap exists between the adaptation funding needs
and the actual funding available – means to fill this huge
gap needs to be explored in earnest;
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Sources for Adaptation Funding
• Contributions from developed countries to honour
their obligations to assist meet the adaptation
needs of developing countries, based on
responsibility but without creating rights or
pressure on how or where funding is spent;
• Adaptation funding needs to be de-linked from
“aid/charity” thinking and linked to “polluterpays/obligations” paradigm – adaptation
assistance is not ODA;
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Sources for Adaptation Funding
• The “Adaptation Levy” can be the basis of such
de-linking and can be used to be applied to other
flexible mechanisms (JI and ET) as well as to
other emission activities – including levy on
airfares, and aviation and maritime freight;
• Levy higher than 2% on JI and ET activities
should be considered as source for adaptation
funding;
• The “Adaptation Fund” can be the vehicle for
such an expanded levy-based adaptation funding
mechanism;
• Adaptation (including funding) needs to be a
“top-level” negotiating issue in the
dialogues/negotiations between Annex I and
NAI – the upcoming UN High Level Event on
Climate Change, the G8 Summit, and others
need to be taken advantage of to advocate
strongly the issue of adaptation funding;
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Sources for Adaptation Funding
The Status Quo Model
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OPS3: Progressing Toward Environmental Results: Third Overall Performance Study of the GEF (June 2005):p.135
A ‘democratic deficit’ & ‘substantive shortcoming
• Only GEF Council members can request a vote
• Constituency: GEF Assembly/GEF Focal Points
GEF Council Composition
(a) Annex I
(b) non-Annex I
World Bank
Economics
Foreign Affairs
Donor Agencies
Environment
Others
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• Primacy of consensus: Voting Mechanism, no votes
GEF Trust
Fund
China 20%
India 10%
Russia 10%
Brazil 5%
Poland 5%
Mexico 4%
S. Africa 3%
Ukraine 3%
Turkey 2%
Iran 2%
Total: 64%
LDCs: 1%
Some Recent Developments
Institution (in alphabetical
order)
managed by…
Executive Body Governing Body
under the authority of…
Global Environment Facility
(GEF)
GEF Council
GEF General Assembly
Multilateral Fund for the
Implementation of the Montreal
Protocol (MLF)
MLF Executive Committee
Montreal Protocol COP
United Nations Development
Programme (UNDP)
UNDP Executive Board
UN Economic and Social
Council
Post Nairobi
Institution (in alphabetical
order)
managed by…
Global Environment Facility
(GEF)
Executive Body Governing Body
under the authority of…
GEF Council
GEF General Assembly
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Pre Nairobi
Some Recent Developments
Art. 1 (e): The Adaptation Fund should operate under the
authority and guidance of and be accountable to the
COP/MOP
Art. 3. Decides that membership of the governing body of
the Adaptation Fund shall
[i] be from Parties to the Kyoto Protocol,
[ii] follow a one-country-one-vote rule and
[iii] have a majority of Parties not included in Annex I to
the Convention;
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The Nairobi Adaptation Fund Decision 5/CMP.2
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Governance of the Adaptation Fund
• Recognising that the AF has to be seen as a
substantial mechanism considering its scopes
and potentials, ensuring its proper Governance is
of critical importance
• The Nairobi COP/MOP2 decision (5/CMP2) must
not be compromised n particular Para 1 (e) on the
“authority of the COP/MOP”, and Para 3 on the
membership of the governing body;
• The COP/MOP should constitute the voting
constituency for the Adaptation Fund; Parties
should have the right to request a vote;
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Governance of the Adaptation Fund
• The governing body of the Adaptation Fund should be
responsible for making available information relevant to its
decisions in a timely and transparent manner, in particular
to UNFCCC focal points;
• Taking into account the importance of expeditious
approval of projects and complementarity of funding
sources, a dedicated new body and structure should be
created the Multilateral Fund of the Montreal Protocol
could be taken as a good example (Some developing
countries are considering proposals)