ECO overheard on several occasions €” even at the plenary yesterday €” some alarming conversations between negotiators and Ministers. After three years, there still seems to be some confusion of two very different notions of “finance” in the context of climate ambition!
So, in an attempt to help out busy Ministers (and negotiators, as and if needed), here is a little summary on the fundamental differences – and complementarities €“ between the two finances:
- Making Finance Flow – aka Shifting the Trillions “consistent with a pathway towards low greenhouse gas emissions and climate- resilient development” (Art. 2.1c); and
- International Climate Finance, to be provided by developed countries to developing country parties to support their action and compliance within the UNFCCC (Art. 9 & relevant paragraphs of 1/CP.21)
Make no mistake, both are urgently needed and an assessment of progress towards both climate finance mobilization goals and Article 2.1c must be part of the global stocktake. What is important to distinguish is that “shifting the trillions” should not divert developed countries from their climate finance obligations under the Paris Agreement, and the recognition for support for loss and damage.
…International Climate Finance (Art 9 & paragraph 114 1/CP.21)