8/10/2019 Decisions on Pre-2020 Finance Needed at COP20

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High-level Ministerial Dialogue on Climate Finance:Decision s o n Pre-2020 Finance Needed at COP20!

The current gap in climate finance is alarming. Developing countries are concerned about the lack of clarity onthe support they can expect over the coming years, in particular provision of public finance. While the pledgesto the GCF are welcome, developing countries are right to demand that rich countries demonstrate that theyhave a plan to meet the $100bn goal before they sign a new agreement in Paris next year.

GLOBAL ROADMAP TO MEET $100 BILLION BY 2020

Agreeing to craft a global roadmap for scaling-up climate finance towards meeting the 2020 goal is essential inPeru. Ministers must make it clear that a global roadmap must be part of the Paris package.

A COP decision on pre-2020 finance should, inter alia, include the following elements: Decide that work will be undertaken during 2015 to craft a global climate finance roadmap towards the

$100 billion goal, for adoption at COP21. The roadmap should include information on:o The scaling up of public finance through to 2020;o Types and instruments of finance to be deployed; ando Channels, sources and distribution between adaptation and mitigation.

Decide on a future target level of annual contributions to the GCF to be reached by 2020. Ensure that thecurrent scale of contributions to the GCF acts as a floor, and that contributions continue to be scaled up. Awell-resourced GCF will also contribute a certain level of predictability.

GUIDING QUESTIONS FOR DISCUSSION DURING THE HLMD:1. To what extent are the Conventions information tools and institutional arrangements for climate finance

working together to ensure the predictability and scaling-up of international climate funding?

There is nothing predictable about international climate funding (except for the fact that it isunpredictable). Developing countries have made plans and strategies with the promise of internationafinancial support, but only a tiny fraction of what is needed is flowing. Funding is projectized and thereis no continuity of resource flows that would lead to enhanced predictability needed for planning actionto meet the long term climate challenge.

Current tools and arrangements are not providing any predictability nor do they ensure scaling-up ofclimate finance. The necessary predictability depends on the extent to which developed countriesprovide clarity on future climate finance through to 2020 and beyond. Hence, Lima should decide tocraft a 2020 finance roadmap providing details how the $100bn will be met, as outlined above.

2. How can these strengthen in-country decision-making processes and mobilize further funding andinvestments while encouraging the engagement of non-state actors?

Any efforts to strengthen in-country processes will depend to a large extent on capacity, includinginstitutional capacity. The direct access model of the Adaptation Fund (and soon the Green ClimateFund) is an approach that helps create this capacity and hence should be further strengthened,moving as much decision-making on climate finance as possible to the country level.

Developing countries are already investing their own scarce resources in addressing climate change.In countries that have begun to track climate expenditures evidence shows that domestic spendingoutstrips international support.

Providing the resources countries actually need to implement their national plans/strategies is a firststep towards creating the enabling environment for other non-state actors to follow suit

3. How can Parties ensure that articulating the current arrangements into a robust institutional framework and

an effective information system provide the necessary transparency and predictability in the provision andused of climate finance towards a post 2020 world?

Creating the much-needed predictability in the provision of climate finance is key but it requires thatdeveloped countries provide the information necessary hence ministers in Lima should agree tocraft a 2020 finance roadmap providing details how the $100bn will be met, as outlined above.

Adopt a robust and honest Measuring, Reporting and Verification (MRV) system for climate finance agree on what counts (common definition) and how to account for it, implement an exclusion list, stopdouble counting, ensure that climate finance is new and additional and allow for recipient countryverifications (not just trusting contributors word).