Accountability and Transparency

Climate change funding: Needs and expectations

By Andrea Rodríguez, legal advisor, AIDA, @arodriguezosuna, and Mónica Valtierra, AIDA volunteer Warsaw, Poland. In the discussions about the financial resources needed to tackle climate change, the plenary session of the Conference of the Parties (COP 19) in Warsaw focused on three topics: long-term financing, a report by the Standing Committee on Finance, and another report of the Green Climate Fund (GCF) of the COP.  Long-term financing  The Philippines. The Philippine representative said long-term financing is crucialfor developing countries and that the outcome of the agreements reached in 2015 will depend on how far those countries are willing to go to see them through.  He said: “There needs to be clarity on the specific amount [of resources required] and which projects will receive the finances. But until now the situation can only be described as disastrous.”   Egypt. The Egyptian delegate, on behalf of an African group of nations, said: “The agreements will depend on the climate fund’s progress in realizing its goals,  the ability of countries to keep the global temperature from rising at less than 2°C this century, and mobilizing US$100 billion. These are the urgent issues.  European Union. The EU reaffirmed its commitment to mobilize climate change finances with the expectation that the Green Climate Fund will increase its funding in the area of adaptation.  Malpes. The Malpes’ delegate spoke about the need to strike a balance between the funding granted for global warming mitigation and what is put toward climate change adaptation. It is an essential issue for developing countries, he said.  Colombia. Colombia’s delegate called for continued efforts to secure climate change funding because up until now there has been very little action taken in this regard. The commitment of US$100 billion in funding for climate change  mitigation and adaptation is another a pressing task, he added.  The Standing Committee report  The Philippines. The Standing Committee has a great deal of work to do, especially with regard to the issues of transparency and access to information, the delegate said on behalf of the G77. “We need to strengthen the mechanisms in place for monitoring, verification and reporting purposes before 2015,” and fully address the issue of additional financing, he said.  Egypt. Along the same vein of the Philippines, this delegation emphasized the urgent need to provide support for the verification, monitoring and reporting mechanisms.  Bolivia. The Bolivian delegate spoke about access to funds, which he said is “the cornerstone of addressing the impact of climate change.” It requires the support of all countries, he added.  Green Climate Fund (GCF) report to the COP  The co-chairs of the GCF said the organization must be ambitious and have ever-increasing efforts. They repeated earlier calls to strike a balance between the funds put toward mitigation and adaptation to climate change, and to mobilize financial resources before mid-2014.  On this topic, the countries said the following:  The Philippines. There are high expectations for the GCF, said the delegate. But three years after the COP meeting in Cancun, Mexico, it is time to start moving the money.  Egypt. The mobilization of funds should be optimized as soon as possible and the Fund must concentrate on sustainable financing for climate change, this delegation said.  India. According to this delegation, the agreements to be reached in 2015 depend on the climate funding that exists at that time. He reiterated the idea of finding an equilibrium between the resources for mitigation and adaptation of the Fund.  Zambia. “Fifty percent of the funds should be put toward adaptation measures,” which will also support programs set up to reduce poverty in vulnerable groups, said the Zambian delegate.  Malpes. On the importance of mobilizing financial resources promptly, this delegate called for the funds to be available before the COP 20 in Lima.  Uganda. This delegate reminded the audience that climate change is not waiting for the mobilization of resources to begin. 

Can COP19 move the Green Climate Fund closer to reality?

By Andrea Rodríguez, AIDA's legal advisor, and Marcus Pearson, AIDA's volunteer (article published in Respond/RTCC Magazine) The Green Climate Fund was created as an effective response to the impacts of climate change by channeling financial resources from developed to developing countries. Will this happen? The Conference of the Parties in November will provide an opportunity for developing countries to lobby for significant financial commitments from the developed world to ensure the long-term viability of the GCF. The Green Climate Fund (GCF) was created in 2010 at the 16th Conference of the Parties (COP16) to the United Nations Framework Convention on Climate Change (UNFCCC). Its mission is to channel public and private financial resources to developing countries to help them mitigate and adapt to the impacts of climate change through low-emission and climate-resilient programs. But nearly four years later, the GCF has yet to disburse any funds. The GCF board has held four meetings with only limited results. At the first meeting in Geneva in August 2012, the board selected two interim co-chairs: Mr. Zaheer Fakir of South Africa and Mr. Ewen McDonald of Australia. It also formed committees, designated the World Bank as Interim Trustee, and agreed to invite observer organizations to participate, albeit in a restricted capacity. A lack of consensus stalled decisions at the October 2012 meeting in South Korea, where the only notable motion was making Songdo, South Korea the GCF’s headquarters. More advances came at the February 2013 meeting in Berlin. The board adopted procedural rules to govern its actions, regulate board member selection and define the participation and role of civil society observers. This laid the groundwork for the GCF to carry out its mission. At the June 2013 meeting in South Korea, the board then discussed the GCF’s business model framework (BMF) and the policies, guidelines and organizational structures needed to commence operations. The board also chose the governance structure of the private sector facility (PSF) [i] and appointed Ms. Hela Cheikhrouhou of Tunisia as executive director of the GCF Secretariat. The fifth meeting in Paris could address the many outstanding issues still needed to bring the GCF into effective operation. To do so, the Board must overcome its perceived ineffectiveness. Civil society concerns Civil society organizations (CSOs) are concerned about the GCF’s decision-making process and future. Perhaps the greatest issue is the uncertainty of funding. The GCF board has started to identify project areas and define criteria to allocate resources, but developed countries have yet to pledge meaningful funds. Concrete commitments are essential to ensuring the availability of predictable resources needed to achieve long-term results to mitigate and protect against the impacts of climate change. CSOs also fear that a lack of transparency and accountability will hamstring the GCF. Transparency does not seem to be a priority for the board. For example, the board has decided against webcasting its meetings even though the UNFCCC commonly does so, helping to cut costs and carbon emissions associated with travel. If the GCF already broadcasts meetings to observers in an overflow room, why not webcast? CSOs fear the board does not want to make its meetings open to the public. Lack of public accountability remains a concern particularly because of the small opportunity given to civil society to participate in the decision- making process. The GCF will mobilize financial resources from both public and private sectors, and civil society oversight is needed to ensure that policies do not respond to the investment interests of the private sector but to the needs of the most vulnerable. Moreover, the board is not granting CSOs meaningful opportunities for participation. The GCF publishes documents before meetings without sufficient time for many CSOs to review and comment on proposals[ii]. Meanwhile, only two CSO representatives may actively participate at board meetings in person and even so may not be allowed to talk or approach board members[iii]. These practices call into question the GCF’s legitimacy. Globally, CSOs play a vital role in developing climate change policy by informing decision makers about local issues and needs, and by providing examples of best practices for resource allocation. Given that the GCF stresses accountability in its mandate, CSOs should have access to government representatives and information in open and transparent meetings. COP19: An opportunity for the GCF? The COP19 this November in Warsaw will show the world whether the GCF can become an effective engine for climate change funding in developing countries. At this conference, developing countries must seek firm financial commitments for climate adaptation and mitigation. Only guaranteed funding will enable the board to make effective decisions regarding resource distribution or provide developing nations with a clear picture of how much funding is available. The GCF Board must also seek -- and receive -- guidance because many COP attendees will benefit from GCF resources. Countries can use the COP to provide advice on GCF policies, share their priority needs for funding, and recommend criteria to guarantee access to resources. The COP will also give CSO representatives a chance to raise questions and highlight counterproductive practices. Conclusions The COP presents a prime opportunity for developed nations to commit to the GCF’s stated goals and pledge desperately needed financing. Parties and CSOs must use the COP – GCF’s monitoring body – as a tool to improve GCF accountability, inclusivity and transparency so that the GCF can truly work to benefit vulnerable populations in developing countries. The COP should be a benchmark for advancing the GCF rather than just another event for developed countries to congratulate themselves on timorous steps forward. [i] The PSF will enable the GCF to directly and indirectly finance private sector mitigation and adaptation activities at the national, regional and international level. [ii] For the June meeting in South Korea, documents were published less than two weeks before the meeting, rather than 21 days as outlined in the additional rules of procedure decision taken in Berlin. [iii] As was the case on the last day of the meeting in Songdo.

AIDA presents report at Durban linking climate change to decline of human rights in Latin America

Calls for measures to protect the human rights of the most vulnerable communities. Durban, South Africa – On Wednesday, December 7, 2011, the Interamerican Association for Environmental Defense (AIDA) presented delegates at climate meetings in Durban, South Africa with a report detailing the negative effects of climate change on human rights to life, access to water, health, food, and housing for millions of people in Latin America. “Climate change causes the greatest harm to the human rights of those who are least responsible for greenhouse gas emissions – vulnerable and historically disadvantaged communities such as peasant farmers, indigenous peoples, and the urban poor,” said AIDA staff attorney Jacob Kopas. “Governments disproportionately responsible for historical and current emissions have an international obligation to contribute more to lasting solutions.” The most troubling of the impacts detailed by the report is a dramatic reduction in access to freshwater in Latin America. Increased melting of glaciers, degradation of high-mountain páramo wetlands, erratic weather patterns and severe droughts will limit dry-season access to water for up to 50 million people in the Tropical Andean region by 2050. Other impacts include heavier rains and flooding, which affected 2.2 million people and caused $300 million of damages in Colombia alone in 2010, and the loss of 80% of Caribbean coral reefs due in large part to warming ocean temperatures and ocean acidification. “The parties must understand that the climate change problem can no longer be ignored. We need to act now to help the world’s most affected communities cope with climate change by securing urgent yet attainable solutions like the Green Climate Fund here in Durban,” said AIDA attorney Andrés Pirazzoli, who distributed the report to delegates at the meeting. AIDA backs the Green Climate Fund, which would finance low-carbon technology adoption and adaptation programs in the developing world. AIDA issued the report this week to inform an investigation by the Inter-American Commission on Human Rights (IACHR) on the link between climate change and human rights. The report calls for a binding climate treaty and for the biggest emitters to pay for adaptation and mitigation measures in the developing world.

Advocating before the Green Climate Fund