Transcript Negotiation Indices

Long-term Finance Sources
Erik Haites, Margaree Consultants Inc., Toronto
ecbi Finance Circle, Bonn, June 12, 2011
european capacity building initiative
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european capacity building initiative
initiative européenne de renforcement des capacités
ecbi
for sustained capacity building in support of international climate change negotiations
pour un renforcement durable des capacités en appui aux négociations internationales
sur les changements climatiques
Sources of Climate Finance
 Current international flows of climate finance
 Near term needs for climate finance
 Potential sources of additional funds, if needed
Need resources for the Green Climate Fund:
 Pledges by developed countries – amounts > faststart finance difficult given their financial
situations
 Innovative sources
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Need periodic review of:
Innovative Sources
 International financial transactions tax
 Levy/auctioned allowances for international aviation and
shipping emissions (or air passenger levy)
 Border levies on carbon intensive imports (or carbon
export optimization tax) – unlikely AGF
Other international needs (MDGs)
considering the same possible sources
International aviation and shipping emissions
most likely source for climate finance
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Possible innovative sources:
Revenue from Bunkers
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No agreement at ICAO/IMO to regulate
emissions and generate revenue for climate
EU will regulate aviation in 2012. Legal
challenges will not succeed. Shipping will
follow.
Result – revenue goes to developed country
treasuries; only part goes to climate finance
Exemptions/revenue rebates reduce funds for
climate and change distribution among
developing countries
Conclusions
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Getting substantial initial pledges for GCF will
be a challenge
Innovative sources increasingly important
Revenue from bunkers best prospect for
climate and it helps reduce emissions
Action by EU rather than ICAO/IMO turns it
into national revenue stream and so
reduces funds for climate finance
Air passenger levy could be implemented
quickly
Climate Policy
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Special Issue
International financial support to
address climate change
Just published
Available at:
http://earthscan.publisher.ingentaconnect.com
/content/earthscan/cpol