PLEA Network

9 November 2015, Energy Post, The biggest sticking point in Paris: money. In the run-up to the Paris climate change conference, there is much focus on countries’ voluntary commitments to reduce greenhouse gas (GHG) emissions (their so-called Intended Nationally Determined Contributions). But much less attention is paid to a part of the negotiations that is just as important, writes Henrik Selin of Boston University: how to finance the efforts of developing countries at mitigation and adaptation. The national climate plans (INDCs) are, of course, a significant aspect of any global effort to address the climate change threat. But another critical policy issue that is at the center of the Paris agenda is an age-old one: money. Going into the negotiations, there is a goal to scale up existing efforts toward providing US$100 billion a year to support climate change action primarily in developing countries by 2020. Ideally, these efforts should also contribute to long-term sustainable development. Many Paris financing debates will focus on how to most appropriately use the recently created Green Climate Fund (GCF) – the new main multilateral vehicle for helping developing countries to lower their GHG emissions and adapt to the effects of climate change. However, there remain significant questions about how the GCF will function, how it will operate alongside other organizations, and how effective the overall financing system may be. Indeed, the unresolved money question was front and center in the just-concluded Bonn talks, which were intended to pave the way for a Paris agreement. How will it work? Read More here