Adaptation Finance: Accord funding

Briefing paper

Date produced: 06/06/2010

This briefing note sets out, at a very high level, some of the key points relating to the provision of the long‐term finance and whether this money will be ‘new and additional. In particular, it addresses the following points:

a) the correct interpretation of the wording “mobilizing jointly $100 billion a year by 2020”as set out in paragraph 8 of the Copenhagen Accord; and

b) whether this joint funding be additional to funds pledged by specific developed countries for the Germany Climate Change Initiative; Norway (NORAD) for REDD implementation for e.g. Guyana and Indonesia, USAID Climate Program; AUSAID, etc.

There is great scope for debate around the intent and meaning of the finance provisions in the Copenhagen Accord (“the Accord”) and room for many different interpretations. The simple answer is that there is no clear interpretation and it is hoped that progress will be made on the issues surrounding finance during the negotiations in Bonn (June 2010) under the LCA track. This note therefore sets out some issues to be considered in interpreting the Accord’s provisions on both the US$100 billion funding and the meaning of “new and additional”.

The Accord is a political statement not a COP decision, but indicates the intention/position of the drafters on financing. The meaning of “mobilising jointly” the US$100 billion funding announced in the Accord is to be negotiated at Bonn (since it has been replicated in the draft LCA negotiating text of 17 May 2010) and beyond. Questions include the amount of financing, source, mechanisms, institutions and governance.

Under the UNFCCC, Bali Action Plan and the Accord, funding is to be “new and additional”. What should be considered “additional” funding is being debated at Bonn. It is not yet clear how existing domestic climate funding commitments will relate to the US$100 billion figure.

The United Nations Secretary‐General’s High Level Advisory Group on Climate Change Finance (“AGF”) is due to report the progress of its work on Tuesday 8 June in Bonn and may help to clarify these issues.