According to Christiana Figueres, Executive Secretary of the UNFCCC, here in Cancun, Mexico we are in the land of the ancient Mayan goddess Ixchel, who, along with reason and weaving, is the goddess of creativity. I believe that the latter of these three virtues, creativity, is certainly a key to success at these negotiations and beyond if we hope to solve the global climate crisis. 

One of the most important outcomes from last year’s negotiations in Copenhagen was that developed countries pledged to provide “new and additional resources” to fast track and long-term climate financing in support of mitigation and adaptation, approaching $30 billion by 2012 and $100 billion by 2020. Obviously, it is not easy to raise these large amounts of money, but a new report shows that while challenging, it is feasible to raise $100 billion, if not more, by 2020. 

In his welcoming remarks at a December 8th press briefing about the findings of his high-level Advisory Group on Climate Change Financing, Secretary General Ban Ki-Moon stated that, “climate change financing is not about charity… but ultimately an investment in a safer, more stable, more prosperous world for us all.” 

The advisory group was tasked with identifing additional sources of funding to meet the goal of $100 billion by 2020, and a creative inventory of financing mechanisms was the result. The group did not look at the delivery of the mechanisms in detail-- that is for the countries to determine-- nor did they suggest what the balance of public vs. private funding might look like. Their intention was not to make policy decisions but rather, “to provide a toolbox for the decision making process,” said panel member Ernesto Cordero Arroyo, Mexican Minister of Finance. 

According to panel co-chair Jens Stoltenberg, Prime Minister of Norway, the report findings are, “a kind of menu where we as decision makers and governments can choose.” There is not one single solution to generate these funds, rather, it will need to come from a variety of sources, and private funding will need to be combined with traditional and new public funding. 

Instruments in the report include auctioning emission allowance (a not-so-new idea, which could raise $30 billion), C02 taxation for international transport (aviation and shipping industries, coming in at $10 billion), and the redirection of funds allocated for subsidizing fossil fuels (raising a possible $10 billion).

Carbon pricing appears to be an important item on the panel’s menu of financing options. Panel co-chair Meles Zenawi, Prime Minister of Ethiopia, began by noting that it would be difficult to generate these funds in an environment where the cost of carbon is too low, and Stoltenberg reminded that carbon pricing will not only raise revenue, but also give the right incentives to the developed world to reduce emissions.

While the long list of financial instruments offered by the panel is impressive, also worth noting is that such a varied group was able to come to agreement. Aside from the fact that so few women were involved (not a minor oversight as pointed out by Mary Robinson, former president of Ireland, during the Q&A), the 21-person panel included members from the developed and developing countries, and the private and public sectors.

This brings me to the second key to success: flexibility. Several comments at the briefing alluded to the challenges that this diverse group faced while coming to agreement on the report’s findings. But while each member may not have been 100% satisfied with every detail, they exercised flexibility and respected the views of other members ultimately coming to an agreement. Those at the press briefing were openly pleased with the final report and proud that such a diverse group had produced it.

Informal hallway conversations with conference attendees today provided a mixed review regarding which countries have been flexible vs. which have not. Many shared the opinion that the U.S., China, and Japan were among the least willing to compromise, and others noted that Bolivia, Chile and India showed willingness to negotiate outside their comfort zone. With the 16th Conference of the Parties formally closing tomorrow evening, time will soon tell what countries have or have not acknowledged creative new ideas and found the flexibility to reach around political obstacles. After all, as the Secretary-General has reminded, “Nature isn’t waiting while we negotiate.”

 

Watch an interview from OneClimate.net with UN Fair Play's Charlie Young on the inequalities of negotiations:

Developing countries are hardest hit and not yet served by funds that should be helping them.  

On the first day of week two of the UNFCCC climate negotiations, things are busy at the Cancunmesse exhibition hall, which is filled with hundreds of booths staffed by NGO, IGO, and national representatives. Among them are antipoverty development organizations such as Oxfam, WEDO, and CARE who are calling for the establishment of a fair global climate fund that will meet the needs and rights of the world’s most vulnerable communities. They, and scores of other attendees at the conference, believe that climate change poses an unprecedented threat to poor people who are already struggling to sustain their livelihoods and maintain food security, and that women and other marginalized groups are most vulnerable.

 

UK Ambassador to Mexico speaks at Funding the Future press conference

Yesterday afternoon at a press briefing titled Funding the Future organized by Oxfam International, six panelists shared their visions and experiences to help set the path to establish a fair global climate fund by week’s end. Top climate negotiators and ministers responsible for actualizing this goal are in Cancun right now and more are flying in this week. Although the first week of talks seems to have shown a fairly positive spirit and willingness to compromise on the part of many countries, a feeling of trepidation is present that the building pressure to make progress regarding emissions cuts and the Kyoto Protocol may result in insufficient time and energy for agreement on the establishment of a fair climate fund. 

So what is this fund and how is it different from what Tim Gore, International Policy Advisor for Oxfam, calls the “spaghetti bowl of different climate financing channels” that currently exists?  Well, as outlined in a letter signed by 215 civil society organizations released today at the press briefing, in order for the fund to be legitimate and effective it must:

 

• Be established under the authority of the UNFCCC, a legitimate forum where all countries are represented. 
• Have equitable representation for developing countries on the board and not be donor country dominated. 
• Ensure consideration is given to gender and multicultural balance on the board.
• Guarantee at least 50 percent of the resources of the fund are channeled to adaptation.
• Be a one-stop shop with the vast majority of climate financing passing through the fund.
• Ensure that vulnerable communities, especially women and indigenous populations, participate fully in decisions on uses and monitoring at the national level.

"There's a problem with the current system," explained Gore. "We think that the current arrangements for managing climate finances are really broken. They're not delivering the money to those that need it most and can spend it best."

Cate Owren, Program Director for WEDO, noted that, while climate financing is politically challenging, it should not be economically challenging because investments now save money in the future. She also reiterated that design, implementation, monitoring, and evaluation of the fund will be crucial and will help prevent a negative impact on women and marginalized groups. Stories of climate adaptation needs and successes were shared by Alcinda Abreu, Mozambique’s Minister for Coordination of Environmental Affairs. 

The briefing began and ended with the message that the establishment of this fund in Cancun will not only help developing countries adapt to the changing climate and adopt low-carbon development pathways, but also help rebuild trust in the negotiations. While a legally binding climate agreement seems almost certainly not on the cards for this round of negotiations, a fair global climate fund will hopefully produce tangible, concrete outcomes by Friday that addresses the need for both mitigation and adaptation assistance.