By Luis Fierro Carrion
(*)
The Independent
Association of Latin America and the Caribbean (AILAC) achieved a complete
success in its negotiating strategy on climate finance for the Paris Agreement
on Climate Change.
All of the priorities, red
lines, and "bridging proposals" made by AILAC were considered in the
Agreement and the Decision that adopted it; and the concepts developed by AILAC were
the core aspects of the climate finance "package" in the Agreement.
Thus, AILAC achieved an
incidence well above its weight in the world economy (measured by GDP, population
or greenhouse gas emissions). This was achieved due to the positioning of AILAC
as a group of ambitious developing countries willing to make commitments on
mitigation and adaptation, and with a capacity for dialogue with developed
countries (promoting the notion that an ambitious agreement on reducing
emissions required adequate counterpart funding commitments by developed
countries). The role of Peru as the COP20 Presidency was vital, as well as the
leadership of Colombia (Colombian delegates were appointed as Co-Facilitator
for Adaptation and as a member of the Group of Legal and Linguistic Experts).
AILAC, initially formed
by Colombia, Costa Rica, Chile, Guatemala, Panama, and Peru, was consolidated
throughout 2015 with the entry of Paraguay in June and Honduras in December.
AILAC had a very active role within the Group of 77 and China (the group of 134
developing countries), and in the Cartagena Dialogue (a space for dialogue
between developed and developing countries which share a progressive and
ambitious position). Several of its member countries also joined the "High
Ambition Coalition " that emerged in the course of COP21, which grew to
more than a hundred countries, including the United States, Canada, the
European Union, and Brazil.
Priorities defined by AILAC
Since 2014, AILAC defined
the following priorities for the climate finance component of the Paris Agreement:
• A collective quantitative target for the
provision and mobilization of climate finance, to be defined periodically (AILAC
proposed every five years), and to take as a "floor" the existing
commitment to mobilize $ 100 billion per year from 2020.
• Developed countries
should periodically communicate "ex
- ante" the funding that they will provide developing countries (AILAC
proposed a biennial communication).
• A qualitative long-term goal that would
lead to all investments and financial flows being gradually directed towards
promoting a low-carbon and climate resilient development.
• Ratifying the
existing obligation of developed countries to provide climate finance; initially,
it was proposed to invite "other countries in position to do so" to
also provide funding. Eventually, AILAC introduced as "bridging proposal "
a sentence ratifying the obligation of developed countries, and another one
inviting other countries to contribute (in a voluntary manner).
• to maintain all
developing countries as recipients of climate finance; avoiding giving
preference to any specific geographical regions.
• Promoting a more balanced finance for adaptation.
• Increased transparency of information on the provision of financial
support.
• Strengthen the Operating Entities of the Financial Mechanism of the
Convention, which should serve the new agreement.
• Allowing the
development of new international markets
for the exchange of emission reduction certificates.
The concepts were
introduced by "Submissions" presented at COP20 and during 2015; and also
verbally during the ADP sessions in 2015.
It was decided that the
main strategy to promote these priorities would be through the G77 & China,
which was achieved by incorporating most of these positions in the
"Submissions" presented by the G77 & China as a whole. In some
cases, when there was no consensus within G77 & China (for example, with
respect to qualitative long-term goal, and the invitation to other potential
donors), dialogue continued with different groups of developing and developed
countries.
An ongoing dialogue was
maintained with the European Union, the Environmental Integrity Group (EIG) and
NOAK (Nordic countries, including Norway); and also with the Cartagena
Dialogue. In October a dinner was organized with various groups of developed
and developing countries (including the United States, European Union,
Switzerland, Mexico, AOSIS, LDCs) to promote the AILAC priorities in financing.
The concepts that faced
greater resistance on behalf of developed countries were the quantitative
collective goal to be reviewed periodically; as well as the ex - ante communication
of the financing to be provided. Gradually, throughout 2015, these countries
realized that these elements were essential to providing balance to the Paris
Agreement as a whole.
How were AILAC priorities reflected in
the Agreement and the Decision?
In the end, as was
already mentioned, all of the AILAC priorities were reflected:
1. Quantified Collective Goal: Para. 54 of the Decision: "Also decides that, in
accordance with Article 9, paragraph 3, of the Agreement, developed countries
intend to continue their existing collective mobilization goal through 2025 in
the context of meaningful mitigation actions and transparency on
implementation; prior to 2025 the Conference of the Parties serving as the
meeting of the Parties to the Paris Agreement shall set a new collective
quantified goal from a floor of USD 100 billion per year, taking into account
the needs and priorities of developing countries".
2. Ex-ante communication of financing to be provided: Art.9.5. "Developed
country Parties shall biennially communicate indicative quantitative and
qualitative information related to paragraphs 1 and 3 of this Article, as
applicable, including, as available, projected levels of public financial
resources to be provided to developing country Parties. Other Parties providing
resources are encouraged to communicate biennially such information on a
voluntary basis".
3. Qualitative Long Term Goal: Art 2.1.c.. "Making finance flows
consistent with a pathway towards low greenhouse gas emissions and climate-
resilient development."
4. Ratification of obligation of developed countries to provide financing
/ invitation to others to do so: Art 9.1 and 9.2 "9.1. Developed
country Parties shall provide financial resources to assist developing country
Parties with respect to both mitigation and adaptation in continuation of their
existing obligations under the Convention. 9.2. Other Parties are encouraged to
provide or continue to provide such support voluntarily."
5. Keep reception of
resources open to all developing countries: Article 9.1. already mentioned, as
well as 9.3 and 9.4. There is no reference to specific geographic regions.
6. Greater balance in financing for adaptation:
Art. 9.4. "The provision of scaled-up financial resources
should aim to achieve a balance between adaptation and mitigation, taking into
account country-driven strategies, and the priorities and needs of developing
country Parties, especially those that are particularly vulnerable to the
adverse effects of climate change … considering the need for public and
grant-based resources for adaptation."
7. Greater transparency in financial support: Art.
9.7: "Developed country Parties shall provide transparent and
consistent information on support for developing country Parties provided and
mobilized through public interventions biennially in accordance with the modalities,
procedures and guidelines to be adopted by the Conference of the Parties
serving as the meeting of the Parties to the Paris Agreement, at its first
session, as stipulated in Article 13, paragraph 13. Other Parties are
encouraged to do so."
8. Strengthen the Operating Entities of the Financial Mechanism: Art
9.8 and 9.9. "9.8.The Financial Mechanism of the Convention, including its
operating entities, shall serve as the financial mechanism of this Agreement. 9.9.
The institutions serving this Agreement, including the operating entities of
the Financial Mechanism of the Convention, shall aim to ensure efficient access
to financial resources through simplified approval procedures and enhanced
readiness support for developing country Parties, in particular for the least
developed countries and small island developing States, in the context of their
national climate strategies and plans."
9. Allow a market mechanism: this is reflected in
Art. 6.4 and Paras. 38 and 39 of the Decision.
The Green Climate Fund
(GCF) will become the main operating entity of the financial mechanism of the
new agreement. During COP21, additional contributions to the GCF were announced
by Norway, Canada, Vietnam, Estonia, City of Paris, and regions of Belgium;
bringing the total committed to more than USD 10 billion. Similarly, additional
donations were received for a total of USD 75 million for the Adaptation Fund
from Germany, Sweden, Italy and the Belgian region of Wallonia (https://goo.gl/CKYgkz); 11 countries announced
grants totaling USD 248 million to the Least Developed Countries Fund (LCDF);
and several countries announced substantial increases in their climate
financing in general (a summary of these announcements is available at: http://goo.gl/TZI01f).
AILAC Finance Team
One reason for the
success of AILAC in the climate finance field was the strength of the team of
delegates from AILAC that followed this issue. During COP21, the AILAC Finance Coordinators
were Isabel Cavelier Adarve of Colombia and Jorge Gastelumendi of Peru. Other delegates
that have played leading roles over the past two years include Maria Laura
Rojas and Santiago Briceño of Colombia; Giovanna Valverde of Costa Rica; and
Mirko Serkovic and Natalia Rojas-Jordan of Peru.
For me, it was a
privilege to have supported the AILAC climate finance team, and to have
contributed to the conceptual and strategic development that enabled these
important achievements, which ultimately will make it easier for developing
countries to pursue their mitigation and adaptation actions in the context of
the Paris Agreement.
(*) Climate Finance
Advisor for AILAC. The views expressed are personal and do not reflect the
positions of AILAC or its member countries.
