CAN Intervention Finance informal, November 30, 2011

Thank you Chair,

I am speaking on behalf of the Climate Action Network.

In Durban parties must take strides towards the full operationalisation of the Green Climate Fund by 2013 and make progress on long-term sources of finance to fill the fund.  A decision on finance in Durban must include the following elements:

First, developing countries cannot afford delay to the operationalisation of the Green Climate Fund, and the work of the Transition Committee this year cannot be wasted. CAN strongly urges parties to follow the recommendation of the Transitional Committee to adopt the governing instrument of the Green Climate Fund.

Parties must also ensure the Fund is capitalized as soon as possible; which will require commitments here in Durban to cover the costs of the Board and secretariat in 2012 and to ensure a substantial first tranche of funding so that disbursement of finance can begin in 2013.

To be successful over time, the Green Climate Fund must have stable and predictable sources of capital.  Parties must therefore move forward on the most promising new sources of public finance here is Durban, such as carbon pricing for international transport.  Crucially, parties must also adopt a work plan here in Durban to further consider other sources of public finance next year ahead of decisions at COP-18, such as use of Special Drawing Rights and Financial Transaction Taxes and reallocation of fossil fuel subsidies implemented in developed countries.

Finally, parties must agree that there will be no financing gap after the “Fast Start Finance” period ends, and agree a trajectory to progressively ramp up financing to meet the $100 billion per year commitment by 2020. Some parties have insisted there is no risk of climate finance falling off a cliff in 2013.  Informal statements to this effect are welcome, but the process would benefit much more from a clear statement of this intent in the text.