the economics of climate change
DESCRIPTION
This work deals with the economics of climate change and the International financial Architecture. It deals with the recommendations of Kyoto Protocol.TRANSCRIPT
Slide 1
International Financial ArchitectureEconomics of climate changeAnd the
Climate Finance
Developed countries, with less than 20% of the worlds population, are responsible for 75% of global emissions (UNFCCC 2014)
Climate finance refers to financial resources given to help developing countries mitigate and adapt to the impacts of climate change
The GCF was finalized at the COP 17 held in Durban in 2011. It was intended to be the mechanism through which a large share of scaled-up global climate finance could be channeled.
Who pays and how much?All countries, except the least developed, should contribute their fair share of international financing for climate action in developing countries, with developed countries taking the leadThe main principles of contribution should be the ability to pay and the responsibility for emissionsGlobal Environment FacilityThe Global Environmental Facility (GEF) serves as an operating entity of the financial mechanism of the UNFCCC It was established in 1991 and has the longest track record on environmental funding The GEF also administers the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF) The LDCF has disbursed $108 million and the SCCF has disbursed $80 million since their inception in 2002
Climate Investment FundThe Climate Investment Funds (CIFs) were established in 2008, and are administered by the World Bank in partnership with regional development banks including the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), and the Inter-American Development Bank (IDB)
Why might governments resist measures to address climate change?concept of international obligations is foreignindividual national self-interest the costs of mitigation measures exceed the expected costs of climate change to the country concernedfuture generations, which are likely to be richer than the current generation, should pay the cost of mitigation.the costs of mitigation could be higher than expected. unemployment might result as production in carbon-intensive industries declines due to binding climate change policies Climate Change mitigation measures could be used to introduce trade barriers.