Transcript Negotiation Indices - European Capacity Building Initiative

european capacity building initiative
ecbi
european capacity building initiative
initiative européenne de renforcement des capacités
ecbi
Lessons learnt and next steps in the
negotiations presented
Benito Müller
East and Southern African Regional Workshop
Hilton Hotel Nairobi
3 March 2010
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 Issue of Distributive Justice and Thematic Balance
Distributive Justice
• The nature of financial payments for climate change activities, particularly in the
case of adaptation and response to climate impacts is one of restitution.
• Hence there are both obligations to pay and entitlements to receive, which
implies that equity, in these sense of either shouldering a fair share of the
payment burden, or receiving a fair share of the revenue is an issue.
• At present, the focus really has only been of the former (e.g. Mexican and Swiss
proposals). Few have raised the issue of how to distribute climate finance
equitably.
Thematic Balance
Climate change finance involves a number of different themes (mitigation,
adaptation ,technology transfer, etc. ), and the issue of ‘thematic balance’ is
whether each of these themes receives an appropriate share of the revenue.
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• Traditional ODA neither involves obligations to pay, not entitlements to receive.
Hence, strictly speaking, there is no issue of contributing or receiving ‘a fair
share’
Three Fundamental Dichotomies
Fragmented v. Consolidated
National Level
International Level
Devolved v. Retained
International
Sources
International
Consolidated Fund
International
Consolidated Fund
IFIs/IGOs/Funds
Country A
Country A
Country B
Country B
Country C
International
Sources
International
Sources
Funded
Activities
Recipient Country D
(a) Retained, Fragmented, Decentralized
Country C
National
(Consolidated) Fund
Country A
Country B
Funded
Activities
Recipient Country D
(b) Devolved, Consolidated, Decentralized
Country C
Funded
Activities
Recipient Country D
(c) Retained, Consolidated, Centralized
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Centralized v. Decentralized
Centralized Decision Making: The Problem of Administrative Size
Global Fund
(0.21 people/$m)
Expected Size
(0.2 people/$m)
700
10000
9000
'Expected' Secretariat Size
600
Secretariat Size
500
400
300
200
100
8000
7000
6000
5000
4000
3000
2000
1000
0
0
0
500
1000
1500
2000
2500
Funding approved annualy ($million)
3000
0
10
20
30
40
Funding approved annually ($billion)
50
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Multilateral Fund
(0.19 people/$m)
RFM Core: Consolidation and Decentralization through Devolution
Operating Entity
Executive Board
Expert Advisory Panel(s)
(as required)
Administrative Services
RFM Trustee
Thematic Assessment Units
(one per disbursement window)
Internal Audit
Secretariat Services
International Level
Domestic Level
Designated Funding Entities
Direct
Access
Funded Activities
Legend:
Governance Relation (‘under the authority of’)
Contractual Relation (MOU or contract)
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UNFCCC Conference of Parties (COP)
External Audit
Funding versus Disbursement
Disbursements to Designated (National) Funding Entities
Disbursements are dependent on the disbursement criteria for each theme,
as well as the thematic allocations (both approved by the COP on
recommendation by the EB). They do NOT rely on evaluations of projects,
plans or strategies.
Disbursement Criteria
Disbursement criteria will vary from theme to theme. For example
• Mitigation disbursements could be on a performance basis, with an
flat per country component:
x million + y million for the MRV reduction in the previous period
• Adaptation disbursements should be carried out by a very simple
disbursement formula, e.g. a flat per country component + a
component proportional to the number of poor inhabitants.
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Funding is financing (incl. approval and evaluation) of activities such as
projects, programmes)
RFM International Funding
However, there will still be a need for international funding in the more
traditional sense, such as currently developed under the Adaptation Fund.
• For one, not all funding purposes lend themselves naturally to be
devolved to the country level. While mitigation and adaptation per se
would seem to be prime candidates for such a devolution, funding
decisions for certain types of capacity building and technology
transfer activities may be better kept at the international level.
• Even with respect to the other themes, there will for some time to be
the need to retain a more traditional international funding capacity, for
it may take some time before all countries will be able to participate
in the devolved disbursement regime.
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The bulk of the transactions in terms of size of the RFM is (ultimately)
meant to be carried out through ‘money-in-money-out’ disbursements to
designated (national) funding entities.
The LCA Draft Decision
Finance Board
Climate Fund/Facility
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UNFCCC COP
Coordination or Consolidation: Potential for Compromise?
UNFCCC COP
National Level
International Level
Finance Board
Operating Funding
Entity I (Mitigation)
Climate Fund/Facility
Administrative Services, incl.
Thematic Assessment Units
Operating Funding
Entity 2 (Adaptation)
Designated Funding Entity
Funded Activities
Funded Activities
Funded Activities
Legend:
Governance Relation (‘under the authority of’) :
‘Contractual’ Relation (MOU or contract) :
Oversight and governance/contractual:
RFM Operating Entity
Disbursement/Certification :
International funding/Coordination:
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RFM Administration
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Thank you!