CAN Intervention in the SB38/ADP2-2 Bonn Intersessional: Special Event with Co-Chairs on Finance, 8 June, 2013

Thank you for this opportunity. My name is Alix Mazounie and I’m speaking on behalf of Climate Action Network.

The importance of finance to both raising pre-2020 mitigation ambition and getting a successful deal in 2015 cannot be overstated.

But climate finance is currently in no man's land. After the end of the Fast Start Finance period last year, 2013 should mark the start of a new finance period.

Instead, we are almost half way through the year and we've seen no new commitments on finance beyond the small handful of pledges made in Doha.

 As CAN we think no developed country should be coming back to this process empty handed.

The various streams of work on finance this year, in particular the Long Term Finance work Programme and the Ministerial on finance at COP 19 (which crucially must involve finance ministers or ministers with mandate on finance), need to secure concrete decision options for consideration and agreement at COP 19:

(1) We need ALL developed countries to set out what climate finance they will provide over 2013-2015, and commit to a roadmap for scaling-up global public climate finance and reaching $100bn per year by 2020.

(2) We need agreement that a minimum of 50% of all public climate finance between now and 2020 will be spent on adaptation. Better than that, we need developed countries to make a collective pledge to save the Adaptation Fund and keep implementing ambitious projects on the ground.

(3) We need confidence that the Green Climate Fund is operational and ready to receive substantial pledges in 2014. A first round of pledges in Warsaw will send a strong political signal that the Green Climate Fund must not be left an empty shell for a fourth COP in a row.

With the LCA finance negotiations behind us, and ADP negotiations on pre-2020 ambition focused on mitigation, this year’s LTF WP is the main space for making progress on finance.

We need all countries to understand that forward steps on climate finance pre-2020 are key to ADP outcomes in both work-streams.

A new agreement applicable to all seems unlikely to emerge if developing countries have not seen existing promises of financial support being met.

So - in response to your question on our role in this process - we believe we would be fruitfully contributing to the ADP process if developed country parties agreed to our longstanding asks to scale up public finance. 

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Keep up your end of the bargain, Parties.

In Durban, Parties agreed to a package – the adoption of a second commitment period of the Kyoto Protocol, a successful conclusion of the LCA, urgent action to close the pre-2020 mitigation gap between the 2 degrees goal and the collective pledges now on the table, and collective movement toward a fair, ambitious and binding agreement in 2015. Parties must honour this political bargain.

Let's start with the KP. Those trying to get another bite of the negotiation cherry by dragging out submitting their carbon budgets (QELROs) have to understand that this will be perceived as acting in bad faith. Australia – ECO remembers the brinkmanship with your QELRO last time. So for you, as well as New Zealand, Ukraine and others on the fence on the Kyoto second commitment period, ECO demands to see your QELROs up front. And, of course, just any old KP second commitment period won’t suffice. We must have a robust, ratifiable agreement that respects the original intention of the KP to raise ambition and create real environmental integrity. The AOSIS and Africa Group proposals will facilitate this endeavour. Effectively eliminating surplus AAUs and ensuring the environmental integrity of the CDM is also essential – you can’t have your cake and eat it too.

On to the LCA. There are a number of elements that jump to the head of the queue in importance. We need a positive decision on finance – including ensuring that the discussion on scaling up Long Term Finance following the report of this year's work programme, among others, has a home in 2013 and beyond. And who needs an empty fund? We hear that the EU, Australia, Japan and Canada already have budgets they could allocate. Don’t be shy!

Enhanced post-2012 climate finance is essential to enable developing countries to implement low-carbon development strategies and facilitate desperately needed adaptation. Deciding to hold back on finance until the last moment – or not coming forward at all in Doha – will undermine confidence and faith in moving the climate negotiations forward.Japan, Canada, Russia and the United States, do not think that by jumping overboard from the Kyoto Protocol that you’re diving into balmy waters. You're still on the hook to do your share of closing the gigatonne gap, by putting forward quantified economy wide emissions reductions AT LEAST as stringent as the QELROs of Kyoto Protocol parties, and using common accounting to an equal standard as the Kyoto Protocol. We also expect to see your QEERTs well before Doha.

On these and the other LCA issues, it is essential that the LCA Chair, and the spin-off group facilitators, be supported to develop text proposals to put forward in Doha. Finally, on the ADP, you all need to do your homework between now and Doha on the ADP work programme. Doha must agree to a plan of work, including a clear timeline and milestones. So let’s take inspiration from our setting here in Bangkok – these milestones can incorporate a period of “contemplation” on some issues. How equity and CBDRRC will apply in the 2015 protocol will require a work stream that allows discussion and agreement on principles before being applied to all of the elements that will constitute the final deal. On other elements, including ways to urgently enhance short-term ambition, Parties must pick up and start negotiating immediately in Doha and beyond.

Leaving the workplan “loosey goosey” will result in a repeat of the Copenhagen tragedy. Rather, parties must agree on specific issues to manage each year while ensuring compilation text by COP19, complete negotiating text by COP20 and draft a fair, ambitious and legally binding protocol to be circulated by May 2015.This is indeed an ambitious agenda for Doha. But it is the least the peoples of the world demand, and expect their political leaders to deliver at a time when the impacts of climate change – and the costs in terms of both human suffering and economic development – are more evident than ever.

Mission Not Accomplished!

The 5-year mission of the AWG-LCA is about to end, without going anywhere very boldly, or finding much new life. The frustrated and deeply divided crew of the USS Bali are already packing their bags, and preparing to jump over to the Durban Platform as soon as they dock in Doha in a few months.

The AWG-LCA will leave in its wake some new institutions, actions and achievements on various fronts, which may yet prove their worth. But in one crucial area there remains a gaping hole – sources of financing for the next year and out to 2020. Without adequate scaled up financing, most of what has been achieved by the LCA will be merely an empty shell. Yet with three months to go, there are no firm commitments or assurances of financing after 2012, when the Fast-start Finance period ends.

Having created the Work Programme on Long Term Finance, and mandated it to report directly to the COP in Doha, developed countries in the LCA are now claiming mission accomplished. That is clearly not the case. Right now, there is little confidence that scaling up climate finance will be given the attention it so desperately deserves.

Once the report of the Work Programme is finalised, there will only be a short window in the Doha COP itself to consider its contents and recommendations, decide on the scope of a COP decision and generate and negotiate the actual text. This is a risky strategy, and is unlikely to do justice to the issue or the Work Programme report, especially since some developed countries are keen to shut down any discussion of scaling up finance.

This is why ECO backs the call by developing countries to keep finance on the LCA agenda and work up some draft text here in Bangkok for a decision in Doha. Political decisions are needed that guarantee sources and scaling up of financing. These are a central element of efforts to achieve the objectives of the Convention and ensure it won’t drop off the agenda or be sent to languish in the SBs.

The list of finance issues that need to be addressed in Doha, either by reaching some conclusions or finding a future home, is substantial. The LCA can lay the groundwork now for an adequate outcome at COP18 by getting some clarity on the scope of the issues to be addressed, and creating some draft text. Of course, the final decision will only be decided in Doha, informed in many areas by the report of the Work Programme on LTF. When the COP considers the report of the Work Programme on LTF in Qatar, it can be informed by the deliberations of the LCA, and perhaps then find creative ways to divide up the different issues requiring decisions.

So what issues need decisions in Doha?

1.) Commitments of climate finance from 2013 to 2020, or at the very least for the mid-term period from 2013-2015. There must be at least a doubling of Fast-start Financing levels from 2013, with agreed criteria for new and additional finance

2.) Commitments to the initial capitalisation of the Green Climate Fund, of at least US$10-15 billion over the period 2013-2015

3.) MRV of financial support

4.) Outstanding institutional issues

5.) Clarification of where ongoing discussions about the various elements of long-term finance will take place after Doha – whether in the Standing Committee, as a continuation of the Long-term Finance Work Programme or under the ADP.

ECO sees potential benefits and downsides of different options for continuing the finance discussions beyond COP18, and urges an open discussion among Parties on the issue. And let's not forget that adaptation finance needs a suitable home, too...

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CAN Intervention - Long Term Finance Consultations - May 22, 2012

Distinguished delegates. Thank you for the opportunity to speak. My name is Lies Craeynest from Oxfam International, and I will speak on behalf of the Climate Action Network.

Thank you co-chairs for your proposal on how to implement the decisions made in Durban on the Long Term Finance work programme. Many delegates from developing countries have spoken about the need for a balanced approach in taking forward the Durban agreement, and have stressed that the discussion on raising mitigation ambition pre 2020 needs to go hand in hand with the discussion on  mobilising the means of implementation to do so. We agree. 
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Durban's Legacy: Get On With It

After a tumultuous week, ECO is concerned that some Parties might be in danger of losing sight of the forest amongst the trees. ECO would like to remind parties that in Durban they set themselves a tall order to undertake a LOT of work this year – now is the time to stop the shenanigans, roll your sleeves up and get on with it.

Mitigation

ECO should not need to remind Parties how urgent it is to increase mitigation ambition! We need to make great progress this year in the KP and LCA, and in the ADP workplan.

As the KP rumbles on without urgency, Parties have not yet got to discuss how they will reduce the AAU loophole, nor the technical details of the QELROs. CP2 Parties and the ditherers need to up their game, so that their pollution reductions and targets contribute significantly and fairly towards closing the gigatonne gap.

Rapid progress in the LCA is needed on 1(b)(i), which lags far behind the KP in developing the QELROs promised in the Bali Action Plan. Countries that have jumped ship from the Kyoto Protocol need to show that their pledges are capable of being compared through common accounting and MRV systems.

ECO is disappointed with the silence from the 1(b)(ii) counties that have not yet brought forward pledges. We look for all countries to table NAMAs, both those that can do so unilaterally and those that need support.

The workplan to increase ambition must go on until the ambition gap has been closed. Agreement to have an agenda item and progress on the workplan on increasing short term ambition in the ADP is a non-negotiable and essential element of the regime. The ADP has a dual role on mitigation: to negotiate a fair, ambitious and binding deal by 2015 and to increase ambition in the short term by all Parties. This is a crucial space where some of the elements of the gigatonne gap-closing agenda can be addressed.

Finance

ECO fancies the work pro-gramme on long term finance as a constructive way to mobilize US$100 billion a year, but is kept awake at night worrying that, if not clearly connected to the LCA negotiations, it could come to nought. ECO does not want the co-chairs’ report to the COP18 to sit on yet another dusty shelf. ECO needs this report to actually spur decisions on new and additional sources of public finance to address urgent adaptation and mitigation needs. ECO is still not sure why some parties would choose to block the creation of this important spin-off group on finance under the LCA. ECO is painfully crossing both fingers and toes that all parties finally agree on the need for negotiating space to start drafting text before Doha for a decision on finance to be adopted there.

Adaptation

ECO is pleased that Parties have made progress on the NAPs, with a draft conclusion text outlining funding modalities. But more progress is needed this week – Parties need to show how support will be scaled up, including through direct access. NAPs preparation needs to commence as soon as possible so that they can provide input into post-2020 considerations, whilst simultaneously enhancing the implementation of existing NAPAs.

Given that the major work on loss and damage in 2012 will happen through the work programme expert meetings, Parties should agree on holding an informal meeting before the COP to assess the achievements of these expert meetings, and draft decision text there. A failure to sufficiently increase mitigation pledges will lead to an increase in loss and damage, which must be recognised.  And ways to explore the institutional options from Durban and Cancun must be outlined in the run-up to 2015.

Shared Vision

Listening to last week’s spin-off group on shared vision had a distinctly “Groundhog Day” feel, as Parties expressed their long known views. The first workshop on equity had some interesting and relevant discussion, which leads ECO to suggest that Parties focus their efforts on agreeing to the peak year in Doha. In order to stay below 2°C and keep 1.5°C within reach, the Qatari Presidency must highlight the need for Parties to agree to an early peak year. Consider the gauntlet thrown – this will be a key measure of success at Doha.

Review

It is no secret that ECO favours a narrow scope of the first periodic Review, sticking to the Cancun agreed definition, which would support the effectiveness of the Review. ECO is hopeful that Parties can reach agreement in Doha through solution-oriented discussions in the spin-off group.

Capacity Building

Lately, capacity building has been treated like Parties' forgotten child. ECO is therefore looking forward to two whole afternoons this week of the Durban Forum on Capacity Building. ECO hopes the Forum will concentrate on reviewing action on capacity building in the context of the many current and future capacity needs of developing countries, rather than those that applied in 2001.

Technology Transfer

Parties don’t seem to be much closer to choosing a CTCN host from among the three ranked  possibilities. Nor have they moved much in addressing the constitution of the advisory board. Additionally, the LCA contact group raised the issue of IPR as motivation for a spin-off group. As a result, some who are wary of IPR discussions pointed to the TEC as the appropriate venue. It's solidly within the TEC's mandate. Let's get on with it!

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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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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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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.

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