Raising USD 100 billion per year is challenging but feasible
Prime Ministers Meles Zenawi of Ethiopia and Jens Stoltenberg of Norway pointed out that mobilising USD 100 billion annually by 2020 is challenging, but feasible. “If we are to reach this goal, we will need a mix of new public sources, a scaling-up of existing public sources and increased private flows. A carbon price in the range of USD 20-25 by 2020 will be important to meet the goal.” Mr Zenawi and Mr Stoltenberg have co-chaired the High-level Advisory Group on Climate Change Financing (AGF) and presented its report to the UN Secretary-General today.
Climate finance is a key ingredient of the global response to climate change. In this regard developed countries committed in Copenhagen to a goal of jointly mobilizing USD 100 billion annually by 2020 to address the needs of developing countries, in the context of meaningful mitigation actions and transparency on implementation.
The co-chairs of the AGF say they hope that the report will be valuable for the Parties to the UNFCCC as well as for other decision-makers.
To meet the goal of mobilizing USD 100 billion per year by 2020, key elements are:
• a carbon price in the range of USD 20-25 a tonne of CO2 by 2020;
• the development of new public instruments such as the auctioning of emissions allowances, carbon taxes, redeployment of fossil fuel subsidies and the pricing of emissions from international transport, and
• increased private investment flows for climate actions.
Public instruments based on carbon pricing are particularly attractive because they both raise revenue and provide incentives for mitigation actions.
Several sources of financing could be operational relatively quickly. In order to scale-up appropriate climate action in developing countries we need to make progress on establishing the Copenhagen Climate Green Fund, including windows, such as a possible Africa Green Fund.
The two prime ministers have co-chaired the group of 21 members that includes heads of state and government, representatives of developed and developing countries, academics and the private sector. The co-chairs pointed out that the AGF has drawn on expertise from a truly multi-stakeholder partnership. This has been vital for the group’s achievements, and they expressed their appreciation of the dedication, innovative thinking and valuable contributions from all of the members of the group.
Read the executive summary and the full report here, as well as the full background material from the various working groups.
The High-Level Advisory Group on Climate Change Financing was established by the Secretary-General on 12 February 2010. The Group’s mandate was to study potential sources of revenue that will enable achievement of the level of climate change financing that was promised during the United Nations Climate Change Conference in Copenhagen in December 2009.
Source: Royal Norwegian Embassy