Innovative Public Finance: Fruit Ripe For Picking
2 September 2015
Many delegates have spent years, inside and outside of this process, on the seemingly enticing topic of innovative finance. ECO understands if some of you are getting tired of this work–so now is the time to harvest the fruits of your labour and lock in new, predictable and significant sources of finance that aren’t at the whim of treasuries!
The ground has been prepared by studies, such as those of the High-Level Advisory Group on Finance, the Leading Group on Innovative Finance, and others who have scoped the landscape.
Trial plantings have been made with a share of proceeds of the CDM that initially provided funds for the Adaptation Fund. Unfortunately, this fruit has withered on the vine.
Early seedlings in ICAO and IMO have so far come to nought–it seems they need UNFCCC fertiliser to grow. And if there’s one thing the UNFCCC can produce, it’s fertiliser.
Now that the ground has been prepared, and the Paris agreement is well placed to ensure that, within a year, we are harvesting the fruits of innovative public finance.
We need only one more ingredient: a process to agree on new innovative sources of public finance. Paragraph 82 in Part II is a good start, but should be spliced with the detailed options found in paragraph 54 and paragraph 64, Part III.
We need to be sure that predictable finance flows into adaptation, loss and damage, and no-net-incidence are considered, as well as targeting the drivers of climate change where possible. And then, with some gardening work in 2016, we will be in a position to enjoy the fruits of our labour.