Adaptation to climate change requires adequate and fairly distributed funding
Bern, 04.09.2009 - On the occasion of the third World Climate Conference in Geneva, ministers and experts came together on 4 September 2009 at the invitation of Swiss Federal Councillor Moritz Leuenberger to discuss the funding of climate change adaptation measures.
Among the issues discussed at the international climate negotiations that are due to be concluded at the UN Climate Conference in Copenhagen at the end of this year are two key areas for action. Firstly, emissions of harmful greenhouse gases must be drastically reduced so that global warming can be stabilised at a maximum of 2ºC. Secondly, ways must be found of adapting to climate change that has already taken place.
Adaptation to climate change requires access to good and reliable climate data; this is the principal topic at the Geneva World Climate Conference taking place from 31 August to 4 September 2009. Adequate funding, though, is also essential. The UN's climate secretariat puts the funding requirement at between several tens of billions and 100 billion US dollars per year. On 4 September 2009 Switzerland, the host country of the Geneva conference and Denmark, which will be hosting the Copenhagen Climate Conference, together convened an informal meeting of ministers in Geneva to discuss the issue of funding.
Contributing to the UN Climate Conference in Copenhagen
Swiss Federal Councillor Moritz Leuenberger, who led the discussion with Danish environment ministry representative Thomas Becker and Polish minister Maciej Nowicki, made it clear that the ministers' discussion at Geneva could contribute to the success of the Copenhagen conference. He stressed that "the greatest challenge consists in making sufficient funds available for adaptation measures and allocating them fairly, thus enabling in particular the developing countries that are most severely affected by climate change to find appropriate ways of coping with it." Leuenberger pointed out that various financing proposals are currently on the table (see box); among them is a proposal from Switzerland, which would like to introduce a worldwide CO2 levy based on the "polluter pays" principle.
In view of the large number of proposals and the many issues up for debate in Copenhagen, Leuenberger urged the international community to reach agreement by the end of the year on the fundamental points. In Switzerland's view the questions that must be answered include:
- How will the funding requirements of recipient countries be gauged?
- How will requirements be met?
- How will the funding system be organised and monitored?
- What is the ratio of private and public financing sources?
Financing will be a crucial element in Copenhagen
Participants in the informal ministers' discussion agreed with Leuenberger and stressed that adaptation to climate change, and financing of it, will be a key issue at the UN Climate Conference in Copenhagen. They expressed their support for a combination of the proposed financing solutions and pointed out the need to consider also the short-term financing needs of particularly severely affected developing countries.
BOX
Major funding requirement
The funding required for adaptation and reduction measures is put at more than 200 billion US dollars per year worldwide. The less developed countries are not in a position to find the money needed to fund adaptation to climate change without outside help. Adequate funds therefore must be made available in the long term.
Various proposals have been put forward in the international negotiations, including one from Switzerland:
- The developing and emerging countries (G77 and China) are proposing that one percent of the GNP of industrialised countries should go to finance climate measures in the less developed countries.
- The Norwegian proposal envisages meeting the funding requirement from the proceeds of the sale of emission rights by industrialised countries (on the basis of the assumption that they might sell around two percent of the emission rights allocated to them under a post-Kyoto agreement).
- Mexico proposes setting up a multilateral fund for tackling global climate change. The level of each country's contributions to this fund would be determined from specific indicators (e.g. greenhouse gas emissions, population and capacity to pay).
- Switzerland's proposal involves a levy of 2 US dollars on every ton of CO2 equivalent emitted. The first 1.5 tons of CO2 equivalent per head would be exempt. For every ton in excess of this amount all countries, including the least developed ones, would have to pay 2 US dollars. The revenue would be redistributed to benefit the less developed countries and used to fund climate change adaptation measures (prevention and insurance).
Also under discussion are proposals for a levy on aviation and shipping and a tax on international financial transactions.
Address for enquiries
Thomas Kolly, Head of FOEN International Affairs Division, +41 (0)79 828 48 45
Publisher
Federal Department of the Environment, Transport, Energy and Communications
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