Transcript Slide 1

european capacity building initiative
initiative européenne de renforcement des capacités
ecbi
Climate Finance 2011
Operationalising the Standing Committee
Benito Müller
Director 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
The Cancun Agreement (Decision 1/CP16)
102. Decides to establish a Green Climate Fund, to be designated as
an Operating Entity of the Financial Mechanism of the Convention
under Article 11, with arrangements to be concluded between the
Conference of the Parties and the Green Climate Fund to ensure
that it is accountable to and functions under the guidance of the
Conference of the Parties, […];
112. Decides to establish a Standing Committee under the
Conference of the Parties to assist the Conference of the Parties in
exercising its functions with respect to the Financial Mechanism of
the Convention
in terms of
• improving coherence and coordination in the delivery of climate
change financing,
• rationalization of the Financial Mechanism,
• mobilization of financial resources and
• measurement, reporting and verification of support provided to
developing country Parties;
Parties agree to further define the roles and functions of this
Standing Committee.
The UNFCCC Financial Mechanism: Oversight
“An Operating Entity of the Financial Mechanism of the
Convention under the guidance of and accountable to the
COP”
Provides annual guidance
UNFCCC COP
GEF Council
Submits draft
Decision for
approval
Sends annual reports
Presents draft
Decision for
submission
SBI
SBI Finance Contact Group
Box 1.1: SBI Draft Guidance to the GEF on funding National Communications
2006: The COP invites the Global Environment Facility, as an operating entity of the financial mechanism of the
Convention, … (b) To provide updated information on the operational procedures for the expedited financing of
national communications from Parties not included in Annex I to the Convention, for consideration by the Subsidiary
Body for Implementation at its twenty-sixth session;
2007: The COP requests the Global Environment Facility, as an operating entity of the financial mechanism of the
Convention:
(g)
To continue to ensure that financial resources are provided to meet the agreed full costs incurred by
developing country Parties in complying with their obligations under Article 12, paragraph 1, of the Convention;
(j)
To refine, as appropriate, operational procedures to ensure the timely disbursement of funds to meet the
agreed full costs incurred by those non-Annex I Parties that are in the process of preparing their third and, where
appropriate, fourth national communications;
2008: The COP reiterates the following requests to the Global Environmental Facility made by the Conference of
Parties at its thirteenth session to the Global Environmental Facility:
(a)
To continue to ensure that financial resources are provided to meet the agreed full costs incurred by
developing country Parties in complying with their obligations under Article 12, paragraph 1, of the Convention;
(b)
To refine, as appropriate, operational procedures to ensure the timely disbursement of funds to meet the
agreed full costs incurred by those non-Annex I Parties that are in the process of preparing their third and, where
appropriate, fourth national communications;
2009: No guidance (Copenhagen)
2010: The COP requests the Global Environment Facility:
(c)
To work with its implementing agencies to further simplify its procedures and improve the effectiveness
and efficiency of the process through which non-Annex I Parties receive funding to meet their obligations under
Article 12, paragraph 1, of the Convention, with the aim of ensuring the timely disbursement of funds to meet
the agreed full costs incurred by developing country Parties in complying with these obligations, and to avoid
gaps between enabling activities of current and subsequent national communications, recognizing that the
process of preparation of national communications is a continuous cycle;
(d)
To finalize any remaining operational procedures to ensure the timely disbursement of funds for those
Parties that decide to access resources for the preparation of their national communications through direct
access;
Operationalizing the Standing Committee:What Functions?
Source: Khan and Müller (2011)
The COP’s key function with respect to the Financial Mechanism is
‘oversight’, i.e. the provision of guidance to, and the holding accountable
of, the Operating Entities of the Financial Mechanism of the Convention.
By assisting the COP in carrying out this oversight function through the
provision of draft guidance and reviews, the Standing Committee would
provide the assistance to the COP in the coordination (between Operating
Entities) referred to in the Cancun Agreement.
The Cancun Agreement task of assisting the COP in improving coherence of
the overall climate finance regime, in turn, would be carried out by the
Standing Committee through the provision of draft recommendations.
Operationalizing the Standing Committee:What Functions?
Source: Khan and Müller (2011)
1. Guidance and Recommendations
The Standing Committee should support the COP by providing:
1. annual synthesis reports of the annual reports by the Operating Entities
of the Financial Mechanism of the Convention which, for that purpose,
should report directly to the Standing Committee;
2. draft guidance to the Operating Entities;
3. draft decisions on how other UNFCCC bodies, such as the Adaptation
Committee or the Technology Transfer Executive Committee, are to
relate to the Financial Mechanism;
4. draft decisions/recommendations on rationalizing the Financial
Mechanism;
5. draft recommendations/guidance to all actors involved in climate
finance, with a view to improving coherence in delivery of finance and
complementarity in their approaches, including comparable standards,
guidelines, and rules of allocation.
6. draft recommendations/guidance with regard to overcoming thematic
and geographical imbalances in the international flows of climate
finance.
Operationalizing the Standing Committee:What Functions?
Source: Khan and Müller (2011)
2. Review
The Standing Committee should support the COP in reviewing:
• the accountability of the Operating Entities to the COP, inter alia
through independent external evaluations;
• the operational rules and modalities of Operating Entities;
• the modalities of the Operating Entities with respect to implementation
of Art. 11.3 (b) of the Convention;
• the modalities for reporting and verifying financial support, including
certification by recipient countries (if applicable);
• resource access modalities, including direct access;
• (and promoting) comparable standards, guidelines, and rules for the
allocation of finance;
• contractual arrangements between the COP and Operating Entities;
• the scale of assessed contribution, if applicable;
1. the adequacy of resources, in particular the needs for, and sources and
flows of, international financial support.
The UNFCCC Financial Mechanism: Oversight
“Operating Entities of the Financial Mechanism of the
Convention under the guidance of and accountable to the
COP”
Provides annual guidance
Submits Annual
Report on OEs
Submits draft
guidance for
approval
UNFCCC COP
Standing Committee
Commissions External Evaluations of OEs
Operating Entities
GEF Council
GCF Board
Send annual reports
Operationalizing the Standing Committee:What Functions?
Source: Khan and Müller (2011)
In order to assist the COP in reporting and verifying the support provided to
developing country Parties, the Standing committee should:
3. Reporting
1. set up and manage a Financial Support Registry to record all relevant
information on financing channels, both inside and outside the
Financial Mechanism, particularly with reference to the information
required in performing the review functions;
2. request/invite Operating Entities and other entities involved in
providing climate finance to provide required information;
3. act as a platform of consultation with private sector and civil society,
as well as with multilateral and bilateral funding entities;
4. liaise on all relevant matters with other relevant bodies – in
particular, but not solely, with Convention bodies such as the
Adaptation Committee and Technology Executive Committee;
4.Verifying
5. provide the COP with all necessary support to verify:
• financial flows to be counted against financial obligations under
the Convention, including, if applicable, assessed contributions;
• certification by recipient countries, if applicable.
Operationalizing the Standing Committee:What Functions?
Source: Khan and Müller (2011)
5. Other functions
1.
2.
3.
Support the COP in the mobilization of financial resources, including
from the private sector, by inter alia:
• developing policy frameworks for mobilizing supplementary
finance sources for the guidance of, and recommendation to, the
Operating Entities;
• commissioning independent studies on the topic.
Report directly to the COP.
Fulfil any other function assigned by the COP.
Operationalizing the Standing Committee:What Form?
Source: Khan and Müller (2011)
Table 3.1. UNFCCC Electoral Constituencies and Seat Allocation
Africa
Asia
G’LAC
EE
WEOG
Bureau
2
2
2
2
2
CDM EB
1
1
1
1
1
EGTT
3
3
3
AFB
2
2
2
TC
7
7
7
TEC
(3)
(3)
(3)
ECOSOC
14
11
10
AI
NAI
2
8
2
2
2
15
9
6
AOSIS
LDC
Total
D’ed
D’ing
1
11
36%
64%
2
1
10
40%
60%
1
1
19
42%
58%
2
1
1
16
38%
63%
0
2
2
40
38%
63%
9
1
1
20
45%
55%
Av.
40%
60%
54
35%
65%
16
38%
63%
13
Submissions to UNFCCC
G77+China
2
2
2
2
2
JUSCANZ/EU
Turkey
2
2
1
1
n/a
n
n
n
n
n
No distinction ‘developed’ – ‘developing’
Source: Table 1 in Benito Müller, UNFCCC – The Future of the Process: Remedial Action on Process Ownership
and Political Guidance, Climate Strategies Brief, Feb. 2011; www.oxfordclimatepolicy.org
Legend
G’LAC:
GRULAC
AI:
Annex I
NAI:
non-Annex I
D’ed:
Developed country constituencies (EE. WEOG, Annex I)
D’ing:
Developing country constituencies
Operationalizing the Standing Committee:What Form?
Source: Khan and Müller (2011)
Table 3.2. Two Politically Balanced Models
(A)
(B)
9
3
3
2
2
1
1
18
21
40
* = Developing
62%
65.00%
** = Developed
33%
32.50%
Non-Aligned
5%
2.50%
G77 and China*
Umbrella Group**
European Union**
Least Developed Countries*
Alliance of Small Island States*
Environmental Integrity Group**
Non-Aligned
Total
6
6
4
4
1
1
Operationalizing the Standing Committee:What Form?
Source: Khan and Müller (2011)
Miscellanea
Being a subsidiary body of the COP, the Rules of Procedure of the COP are deemed
to apply mutatis mutandis to the proceedings of the subsidiary bodies.
As to the provision of secretariat services, there is equally no choice: according to
Article 12.1, the first function of the UNFCCC Secretariat is: To make arrangements
for sessions of the Conference of the Parties and its subsidiary bodies established
under the Convention and to provide them with services as required.
Submissions I: JUSCANZ
•
Decision 1/CP16 provides a role for the SC in advising the CoP on the four
issues enumerated in paragraph 112. We look forward to further defining
the role and functions of the SC in the AWG-LCA.
•
Decision 1/CP16 provides for an advisory, rather than supervisory or
executive role for the SC.
•
Decision 1/CP16 confirms that the SC’s relationship with operating entities of
the financial mechanism is via CoP guidance, rather than direct.
•
Therefore, the SC could most usefully provide advice via the SBI to the CoP
on the four issues enumerated in paragraph 112 of Decision 1/CP16,
inasmuch as they are related to the CoP’s execution of its functions with
respect to the financial mechanism as defined in Article 11.
•
We support a continuation of the current role of the SBI in developing draft
recommendations on CoP guidance to the financial mechanism.
•
To best advise the CoP, the SC could undertake the following functions […]
Helping to inform and improve the guidance to the financial mechanism
that is recommended by SBI to the CoP and enhancing the periodic review
of the financial mechanism.
Submissions II: G77 and China, Africa Group, India
1. Improving coherence and coordination in the delivery of climate change
financing
Through, inter alia:
• the development of recommendations to the COP for the coordination of all current
and future funds under the Convention to ensure coherence in the delivery of
climate change finance
• the provision of a forum for the exchange of information with relevant financial
institutions, bilateral aid agencies, and UN agencies dealing with climate change
financing, as well as the provision of assistance to the COP in analyzing relevant
information to ensure coherence and coordination; and
• the establishment of a communication platform to advice coordination and
coherence of operating entities of the financial mechanism under the Convention,
as well as coordination with other thematic bodies of the Convention to identify the
gaps in implementation related to financial support.
•
Standing Finance Committee should, besides establishing a
communication platform to advice coordination and coherence
of funds under the Convention, also advance and enable such
coordination in order to improve the effectiveness of these
funds through rationalization measures;
•
assessing this information to consider its consistency with the guidance provided by
the Conference of the Parties on policies, programme priorities and eligibility criteria in
financing climate change;
Submissions II: G77 and China, Africa Group, India
2. Rationalization of the Financial Mechanism
Through, inter alia, developing recommendations to rationalize the financial
mechanism of the Convention and existing funds under it, for achieving
cost‐effectiveness and efficiency.
3. Mobilization of financial resources
Through, inter alia, the preparation of recommendations to the COP on the technical
feasibility and enhancing accessibility of the mobilization of resources from a wide
variety new and additional sources, including public and private, bilateral, multilateral
and alternative sources, taking into account the financial needs identified by developing
country Parties, including those contained in their national communications.
Preparation of financial needs assessments of developing countries, based on information
received from developing countries, and including through, information received from other
thematic bodies under the Convention, reports on the needs and estimates of the cost of
climate change by UN bodies and other Multilateral financial institutions, and any other
sources of information the Committee considers;
4. MRV of support provided to developing country Parties
Through, inter alia,
(i) the assessment of information related to the measurement, reporting and
verification of support and enabling means provided to developing country Parties
under the Convention, including through the information contained in Annex I
national communications and information received from developing countries.
(ii) the development of recommendations on indicators for an assesed scale of
contributions for Annex II countries, where applicable.
Submissions III:The EU
We do not see the standing committee having a role in designing, operating or
revising the MRV system relating to reporting obligations of individual parties. This is
addressed through the updates to the guidance on preparing national
communications. We could not agree to a separate additional MRV system.
The SC could somehow include expertise eg. from GCF, GEF, AF, LDCF, and experts
from other relevant financial institutions in an ex officio role.
An important issue is that we need clarity on the division of labour between SBI and
Standing Committee. The division would depend on the functions in question and
also the composition of the SC. We are open to discussion on this area and to explore
the issue. There shall be no duplication of work between the Standing Committee
and institutions.
The functions outlined in the Cancun Agreements, as developed above, together
with an expert composition could help improve the production of guidance given by
the COP to the financial mechanism by making it more result orientated