TWN Info Service
on Finance and Development (Jun08/07)
DEVELOPING COUNTRIES' STATEMENTS ON A MULTILATERAL CLIMATE FUND UNDER THE CLIMATE CONVENTION
the recent UNFCCC climate talks in
Besides announcing their intention to set up such climate funds within the UNFCCC, the G77 and China also stated (in paragraph 3 of their statement attached) that: "Any funding pledged outside of the UNFCCC shall not be regarded as the fulfilment of commitments by developed countries under Art. 4.3 of the Convention."
principle seems to have been prompted by the view of several developing
countries, expressed during the discussions on finance in
Under the Convention, developed countries are obliged to transfer financial resources to developing countries to meet the full incremental costs of mitigation and adaptation etc.
Under the Bali Action Plan, financing, technology development and transfer, and capacity building by developed countries must be measurable, reportable and verifiable. It is thus more appropriate that financing, including for technology, is undertaken within the Convention.
In the view of TWN, the World Bank should not be the host of the climate funds, and a multilateral mechanism inside the Convention is the best option, because (1) it is more democratic, and developing countries will have much better representation and say; (2) the financial mechanism can be linked to the Convention and the on-going negotiations.
Attached for your information are: