Sep 4 2009
WWF is calling on G20 finance ministers to commit to providing $160 billion per year of public funding, to help the world’s developing nations to adapt to climate change and set them onto a low carbon pathway for the future.
G20 finance ministers are gathering in London starting today to discuss finance for the crucial global climate deal due to be signed in Copenhagen in December.
This finance should be additional to Overseas Development Assistance (ODA), additional to carbon market finance and channelled through a UNFCCC recognised institution.
In advance of the meeting, Keith Allott, Head of Climate Change at WWF-UK said:
“It is vital that global finance leaders recognise that investing in tackling climate change now will sow the seeds for resilient and sustainable economies in the future. Ignoring the problem will simply mean bigger financial bail outs in years to come, while the planet is left to cook.”
“In June, Gordon Brown told the world that we need to commit US$100 billion each year towards tackling climate change. This is an admirable start, but it still isn’t enough to ensure that we avoid the worst impacts of climate change, while honouring our responsibility to help the world’s poorest nations to adapt to a problem primarily not of their making.”
“Alistair Darling needs to show true leadership at this meeting by encouraging the G20 nations to commit to increasing the public finance on the table, and stop pretending that carbon markets are a magic wand.”
In addition, sources of climate finance should include:
- Auctioning of Assigned Amount Units: Finance would be raised by holding back and auctioning a small portion of developed country emissions allowances. Funds to purchase these auctioned allowances should be public funds, for example, funds raised through developed country national climate protection instruments (e.g. emissions trading systems or taxes that reduce greenhouse gas emissions).
- International Aviation and Shipping Mechanisms: This would address emissions from these sectors while at the same time raising finance. In the case of civil aviation, a cap would be established for the sector, and airlines would buy allowances via a dedicated auction. There would be the option to purchase carbon credits on the market. For shipping, both trading schemes and fuel levies have been proposed. Revenues should be collected by an international body and would be allocated only for adaptation and mitigation in developing countries, as part of fair effort sharing and to respect common, but differentiated responsibilities for climate change.
- Levy on Credits from Market Mechanisms: There is currently a 2% levy on credits in the carbon market that are generated through use of the Clean Development Mechanism. This levy could be increased or extended to other market mechanisms in order to generate additional finance.
- Financial transaction tax: A very small levy on international financial transactions such as currency transactions would be very effective. This could be passed unilaterally by national legislatures, and national governments would then work together to set up multilateral enforcement procedures through the UNFCCC or other multilateral body.
- International assessments or dues: Like the United Nations, the UNFCCC could levy dues from countries that would help finance the global transition to a low carbon, climate-resilient economy. These dues could be raised through bonds or other means of fund generation.