News | Climate Change

http://www.financialexpress.com/news/nations-rethink-copenhagen-commitment-on-climate-funding/678011/0

The informal climate change ministerial talks in Geneva hosted by the Swiss government to overcome the hurdle of tong-term financing of mitigation and adaption measures and its regulation on climate change evoked mixed responses from the players and NGOs.

The success of the climate change talks in Cancun in November will hinge mainly on the funding and financial issues.
Issues related to fund raising, coordination of funds and new sources of financing and how the private sector should be brought on board were discussed in the meeting among other points. Pledging of funds were on the agenda, with the US upping its offer of $7 billion from the Copenhagen pledge of $2.5 billion for the period upto 2012. Out of 45 participating countries, 20 ministers attended, including India’s environment minister Jairam Ramesh.
The proposal of the North on inclusion of private funding as over public funding was controversial. Discussed were also as how such a fund can relate to existing climate funds, as well as the access to and distribution of regulation of the associated funding. Country positions were not declared openly due to the confidentiality of the talks.
Under the Copenhagen Accord finalised last December, developed countries pledged $30 billion in fast-track financing for the period 2010-2012, but the larger goal was commitment to ‘jointly mobilising’ $100 billion in the long-term aid annually by 2020. The Swiss host, minister Moritz Leuenberger, was upbeat.
He said that industrialised nations are willing to pay according to the ‘polluter-pays’ principle. It now depends on whether emerging nations will also contribute to the fund. NGOs were sceptical of the results. Differences cropped up between perceptions of the North and the South. Doubts exist as to whether the money pledged is not ‘old’ money.
Environment minister Jairam Ramesh told FE, “We certainly hope that this meeting will go a long way in reducing trust deficit between countries. But, I doubt whether the Copenhagen logjam is broken. The single most important trigger for success at Cancun is the funding.”
He, however, said that when it comes to funding, the issues are very complex, and the continued financial crisis is making public funding difficult. “It is making countries now rethink their commitments in Copenhagen. Countries are instead talking more about private financing and carbon credits and less about public funding. Conscious efforts are being made to devalue the concept of public funding. If this mindset continues, it is unlikely that the developing countries will play ball,” he said.
According to him, public financing would continue to be a large share of developing countries desires. Countries will depend on public and private financing. At the dialogue, a large number of Latin American countries, Saudi Arabia, Pakistan, Brazil, opposed the devaluation of public financing. This should be fast-track fund operational before Cancun.
At the talks, use of the funds focused on the African states, the small island states and LDCs. Of the $30 billion pledged at Copenhagen, the EU will contribute $8 billion; Japan says it will put in $15 billion, and the US, which had pledged $3.2 billion earlier, has said it would go up to $7 billion.
According to Ramesh, countries must be realistic in their expectations and might have to downsise their ambitions.
Interestingly, ministers of important players ministers in the climate change talks—Australia, China, Indonesia, South Africa and the UK—were missing at the Geneva Dialogue
The US, which rejected the Kyoto Protocol, wants emerging nations such as Brazil, China and India to join in the effort and funds to cut pollution. US Special envoy Todd Stern felt that it would be a challenge to get a meaningful outcome in Cancun. The Green Fund should be efficient, effective and should not be tied down by red tape.
The Dutch government set up a website www.faststartfinance.orgo to track whether rich countries are keeping a pledge to come up with the $30 billion in fast-track climate aid for developing and poorer economies.