• Declarations and Money
Diario COP21

Declarations and Money

01/12/2015
The first day of the conference has been devoted to the Opening Session and the Leaders Event. Heads of State and Government from all over the world were invited by the French President of the Republic to come to Paris and to show their support to the 21st Conference of the Parties of the Framework Convention on Climate Change (COP 21). The response has been impressive and 150 leaders came to Paris and had three minutes to deliver a message always supportive and sometimes even demanding. The expectation was on the speeches by President Obama and Chinese President Xi Jinping, both sent a supportive message, accepting a binding agreement with clauses to revise the objectives after fiver years. This seems to be the most likely outcome if the conference doesn’t lose track.

But besides the political declarations the debate is also about money, because if an agreement is reached it has to include the financial consequences in order to be feasible and not just one more paper. On December 2009, at COP15, the parties agreed on new ways to bring together public and private funds to combat climate change. For this the developed countries pledged to provide new and additional resources approaching USD 30 billion/year for the period 2010-2012. This collective commitment was called the “Fast-start Finance” (FSF). Later on, at COP 19 (Warsaw) the plan was renewed and scheduled to last until 2020. But also a new financial tool has be settled: the Green Climate Fund (GCF). The aspiration of these financial instruments is to collect by public and private funding for developing countries by 2020 “from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources" the target figure is USD 100 billion/year.

A recent report recently released by the OECD gives a deep understanding of how these financial mechanisms have worked in the last years. The main figures show that we are still far from the 100 billion/year, certainly an effort has been made but we are still half of the way and it’s only four years to accomplish the objectives. Public and private finance mobilised were estimated at USD 62 billion in 2014, up from USD 52 billion in 2013 and making an average of USD 57 billion annually over the 2013-14 period.These estimates comprise public finance provided by donor governments through various instruments and institutions, including non-concessional loans. It also includes private funding for climate-related projects that has been directly mobilised by developed country public financial interventions.

Public finance, either bilateral or multilateral, accounted for more than 70% of the flows during 2013-14, while mobilised private finance made up more than 25% and export credits the remainder. The report by OECD highlights that 77% of climate finance is allocated towards climate change mitigation objectives, only 16% towards climate change adaptation and 7% to activities that target both. This result is driven by the dominance of mobilized private climate finance towards mitigation-related activities (over 90%). It is striking the small share for adaptation taking in account that many of the effects of climate change will already be irreversible, for many regions in the world adaptation is the only way to cope with the situation, the distribution of funds should take this in account.

We need, necessary, an agreement but we also need concrete and substantial finance agreements be taken in Paris if we want real change happens.
1 dicembre 2015

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