1. Finance
10/16 Taketo Muroya

2. Contents
• Cancun Agreement
• Bangkok & Bonn Conference of AWG
• Panama Conference of AWG
• What is expected in Durban?

3. Cancun Agreement

4. What was decided about Finance in Cancun Agreement?
• Green Climate Fund ,Transitional
Committee and Standing Committee were
established.
• By 2012 developed countries should
provide $30 billion to developing countries
as Fast Start Funding.
• By 2020 developed countries should
provide $100 billion per year to developing
countries as Long-term Finance.

5. The Finance System

6. What was not decided in Cancun Agreement?
• But Cancun Agreement says nothing about
funding source.
• The economic situations of developed
countries are worse than last year. So the
discussion of funding source becomes
more and more difficult.

7. Cancun Agreement
• 95. Takes note of the collective commitment
by developed countries to provide new and
additional resources, including forestry and
investments through international institutions,
approaching USD 30 billion for the period
2010–2012, with a balanced allocation
between adaptation and mitigation; funding
for adaptation will be prioritized for the most
vulnerable developing countries, such as the
least developed countries, small island
developing States and Africa;

8. Cancun Agreement
• 96. Invites, in order to enhance transparency,
developed country Parties to submit to the
secretariat for compilation into an information
document, by May 2011, 2012 and 2013,
information on the resources provided to fulfil
the commitment referred to in paragraph 95
above, including ways in which developing
country Parties access these resources;

9. Cancun Agreement
• 98. Recognizes that developed country
Parties commit, in the context of meaningful
mitigation actions and transparency on
implementation, to a goal of mobilizing
jointly USD 100 billion per year by 2020 to
address the needs of developing countries;

10. Cancun Agreement
• 99. Agrees that, in accordance with
paragraph 1(e) of the Bali Action Plan,
funds provided to developing country
Parties may come from a wide variety of
sources, public and private, bilateral and
multilateral, including alternative sources;

11. Cancun Agreement
• 100. Decides that a significant share of
new multilateral funding for adaptation
should flow through the Green Climate Fund

12. Cancun Agreement
• 102. Decides to establish a Green Climate
Fund, to be designated as an operating entity of
the financial mechanism of the Convention
under Article 11, with arrangements to be
concluded between the Conference of the
Parties and the Green Climate Fund to ensure
that it is accountable to and functions under the
guidance of the Conference of the Parties, to
support projects, programmes, policies and
other activities in developing country Parties
using thematic funding windows;

13. Cancun Agreement
• 103. Also decides that the Fund shall be
governed by a Board of 24 members,
comprising an equal number of members
from developing and developed country
Parties;

14. Cancun Agreement
• 109. Also decides that the Green Climate
Fund shall be designed by a Transitional
Committee in accordance with the terms of
reference contained in appendix III to this
decision; the Transitional Committee shall
have 40 members, with 15 members from
developed country Parties and 25
members from developing country Parties
as follows;

15. Cancun Agreement
• 112. Decides to establish a Standing
Committee under the Conference of the
Parties to assist the Conference of the
Parties in exercising its functions with
respect to the financial mechanism of
the Convention;

16. Cancun Agreement
• 112. Standing Committee
– improving coherence and coordination in the
delivery of climate change financing;
– rationalization of the financial mechanism;
– mobilization of financial resources, and;
– Measurement, reporting and verification of
support provided to developing country
Parties;

17. Bangkok & Bonn Conference
4/3-4/8, 6/6-6/17

18. What was discussed in two conferences?
• In Bangkok, there was only agenda fight
and the outcome was almost nothing.
• In Bonn, Medium-term (=2015) Funding
was suggested by EU. It was caused by
high possibility that the agreement of new
framework will be not decided in Durban.

19. One of hopeful funding sources
• Taxes on international aviations, ships,
currency transactions are desirable.
– International aviations and ships now emit
4% of world CO2 emissions.
– The principle of common but differentiated
responsibility
– Imposing taxes on only developed countries
is very difficult.

20. One of hopeful funding sources
• Rebate mechanism is suggested for the
solution.
– Taxes are imposed on all countries but tax
revenue from them is distributed to
developing countries larger than developed
countries. This has not been supported yet.
• In third phase of EU-ETS, EU decided to
impose tax on all flights whose arrival
and departure are in EU.

21. Panama Conference
10/1-10/7

22. The power of Standing Committee
• (Option 1) The Standing Committee
should be a Subsidiary body of the
UNFCCC. It should not be a decision
making entity but should report directly to
the COP in accordance with Article 11.1
of the Convention.
• (Option 2) Decides that the Standing
Committee shall report to the Subsidiary
Body for Implementation.

23. The member of Standing Committee
• Option 1
– 2 representatives from each of the 5 UN
regional groups
– 1 representative of the small island
developing States
– 1 representative of the least-developed
country Parties
– 2 representatives from Parties included in
Annex I to the Convention
– 2 representatives from Parties not included
in Annex I to the Convention

24. The member of Standing Committee
• Option 2
– Six members from developed country Parties;
– Six members from developing country Parties;
– Two members from civil society; and
– Two members from the private sector;

25. The member of Standing Committee
• Option 3
– Decides that the Standing Committee
should consist of 24 members, comprising an
equal number of members from developing
and developed country Parties;
– representation from developing country
Parties shall include representatives of
relevant United Nations regional groupings
and representatives of small island developing
States and the least developed countries;

26. Sources of Long-term Finance
• (Option 1) Invites parties,
international financial institutions and
relevant UN agencies to submit their
views by the March 31st 2012, on
preferred sources of long-term financial
resources, including innovative
sources; their technical feasibility,
applicability and potential incidence on
developing country Parties;

27. Sources of Long-term Finance
• (Option 2) Invites parties, observers,
international financial institutions and
relevant UN agencies to submit their
views by the May 15th 2012, on the
financial needs of developing countries,
public and private sources, and other
sources of long term financial resources,
and their technical feasibility, applicability,
and adequacy;

28. Negotiation of Long-term Finance
Developing Developed
Countries Countries
the issue has been
without finance,
adequately
there would be no
addressed
mitigation,
elsewhere, there
adaptation- nothing
was no mandate to
for MRV
discuss it here

29. What is expected in Durban?
11/28-12/9

30. What is expected in Durban?
• Stable Funding Source
– International Taxes
– Introduce Rebate Mechanism
– The deadline of decision
• Finance System of UNFCCC
– The details of GCF & SC
– Various opinions should be involved