Climate Finance: It’s Talkshop Workshop
Time!
ECO has always been a faithful attendee of the long-term finance
workshops, and has sympathy for the working group set-up. This approach offers
much more room for creativity and constructive exchange as, in theory, people do
not need to hide behind their country’s flags. Of course, there isn’t exactly a
lack of talkshops in this world, so ECO knows that the value of it heavily
depends on how it will ultimately feed back into actual negotiations and sound
agreements to advance the climate finance agenda. The good news is, each of the
scheduled working groups offers potential to do just that. Let’s have a little
look, shall we?
For instance, the first group will tackle the question of
interlinkages between provided and mobilised finance and the temperature goals.
It’s not rocket science to understand that the more we want to limit planetary
overheating, the more we need to shift investment flows away from fossil fuels
toward renewables, and the more much-needed assistance has to flow from
developed countries to developing countries for enhanced climate action. And,
ECO’s here to remind you that the less the world achieves this, the more
financial assistance will be required to enable vulnerable countries to adapt to
climate change and recover from losses and damages.
Among the issues to
discuss in breakout group 2, ECO is most intrigued by the question of access to
climate finance. It’s been much lamented that directly accessing climate finance
through a national implementing entity often remains a challenge – despite the
fact that implementing climate action through in-country entities (including
local communities) is key to ensuring that institutional capacities are enhanced
and that developing countries remain in the driver’s seat for making their
countries climate-resilient. Group 2 could spend some time contemplating how to
overcome existing barriers to direct access to climate finance.
When it
comes to group 3 on climate finance effectiveness, ECO thinks an obvious step is
to stop overseas coal financing and to stop the smug labelling of it as climate
finance (Australia, Japan, are you reading this?). It is not only ineffective
but actually counter-productive if you want to keep global temperature rise to
below 1.5°C. Effectiveness in adaptation finance is another area of concern, for
instance when it comes to ensuring that adaptation action reaches the poorest
and most vulnerable peoples. These groups are often marginalised with little
access to political decision making, so working directly with local communities
and civil society organisations can cover the extra mile needed to achieve real
change on the ground. And, if Parties are keen to enhance effectiveness of
climate finance to assist vulnerable countries in recovering from losses and
damages, a first step is to recognise that such flows are needed and the
existing climate finance architecture still lacks a funding mechanism for that
purpose. Remember the review of the WIM? It’s an excellent opportunity to
ameliorate that situation.
Continuing on to group 4, ECO believes a good
use of the biennial submissions on strategies and approaches would be to search
them for information on barriers (and other experiences) that seem to be common
in developed countries’ efforts to ramp up climate finance in both scale and
effectiveness. The common experiences that developed countries have highlighted
over the past iterations of their strategies and approaches would be a great
starting point to inform the forthcoming discussion on the post-2025 finance
goal. ECO wonders if, instead of just another 100-billion type goal with all its
shortcomings, a broader goal matrix might be a way to collectively set targets
for various purposes. For example, setting targets for the provision of
adaptation finance, elements related to removing barriers in increasing
effectiveness, or identifying ways to enhance shifting financial flows to be
compatible with below-1.5°C pathways, among others. This could enhance
predictability not only related to volumes of finance but also of actions to
deal with past experiences around implementing funded actions.
So,
there’s a lot to talk about. ECO will be monitoring the workshop closely.
Hopefully, it won’t be just another talkshop.
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WIM review: guided by developing countries’ needs and strong guidance by
the COP
The Warsaw International Mechanism on loss and damage
(WIM) is approaching its sixth birthday and Parties are busily negotiating the
Terms of Reference (ToR) for its review. ECO has listened and clearly supports
the views of those vulnerable developing countries that the WIM was set up for;
who ask that their needs in addressing loss and damage should be a key guiding
aspect of the review. And, to be honest, understanding this request is pretty
straightforward and simple. ECO was happy hearing that some Parties suggested
this should include consideration of particularly vulnerable populations and
ecosystems, as well as better integrating gender concerns, beyond country needs,
as has already been in the work plan of the WIM. ECO is annoyed about those
developed countries who are resisting referencing developing countries’ needs in
the ToRs.
When negotiators hone in on finalising the ToRs, it is
essential that they do so with the perspective to provide the COP with the
information necessary to take immediate action to strengthen the WIM, in
particular in relation to finance to allow vulnerable countries to deal with the
losses they face. That is why substantive discussions on the way forward for
finance, for an improved architecture and new sources of finance, need to happen
between Bonn and COP25. Unfortunately, in the absence of clearer guidance from
the COP, developed countries have resisted any meaningful discussion on those
matters in the WIM’s ExCom so far. But communities in developing countries,
facing large unmet needs, as illustrated by the constant gaps between appeals in
the case of weather-related humanitarian disasters and the finance provided,
cannot wait for the ExCom to just have more superficial discussions that
circumvent finance issues. COP25 must be positioned to give clear guidance on
this so that the ExCom — and potentially other bodies dealing with finance —
will know the task it has to live up to in order to deliver much greater action
and support for the benefits of vulnerable communities and
countries.
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ACE matters, because ACE
matters!
Action for Climate Empowerment (ACE) forms a crucial
pillar for successful implementation of the Paris Agreement and is the focus of
Article 12. It includes six elements: education, training, public awareness,
public access to information, public participation, and international
cooperation.
Today is the second ACE day of SB50, so what needs to be
done? We need to start moving from evaluation of the eight-year-long Doha Work
Programme (DWP) to look towards a new ambitious framework for ACE. Here are some
thoughts from ECO:
1) Talk loudly and proudly about ACE and invite
others to join the debate, making sure that the voices of those groups
explicitly mentioned in the DWP are included. ACE matters!
2) After the
review of the DWP, ACE needs to empower learners and take into account the new
UNESCO ESD2030, currently a draft, which emphasises “ESD has to affect the
unsustainable production patterns of current economic structures more
directly”. ACE empowers learners for transformation and active global
citizenship. ACE matters!
3) ACE efforts need to be valued. All countries are
encouraged to incorporate their ACE activities in their upcoming NDCs,
reflecting all six elements in a balanced manner. ACE matters for NDCs!
4)
Public participation is a human right. It is always important, especially
in the preparation of new, enhanced NDCs. It’s part of ACE and ACE
matters!
5) All countries shouldl nominate ACE Focal Points and provide them
with the necessary support to play an active role in coordinating and upgrading
ACE-activities. ACE focal points matter!
So, what about your
country?
ECO would like to see all of this reflected in the ACE framework
that will succeed the DWP: a framework that should be even more ambitious and
robust. ACE matters!
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Doubling Down to Avoid Double-Counting
Today, ECO is
redoubling its efforts, and sharing not one, but two pieces about Article 6! You
guessed it, this one is about double counting...
There is no time to
double-back on this. Parties, remember when you signed the Paris Agreement?
That’s when you agreed to avoid double-counting.
Corresponding
adjustments must be applied to all credits transferred, both from inside and
outside of NDCs, and regardless of whether they are used towards an NDC or any
other climate commitment. ECO is frightened by the prospect of CORSIA, the
international aviation’s carbon market, going ahead in 2021 without proper
accounting rules having been agreed on by the UNFCCC. Additionally, transparency
must be ensured, and the thought of having to track credits around the world is
making ECO dizzy. Avoiding double counting will take a combination of proper
accounting rules and sufficient transparency to ensure those rules work. Simply
reporting transfers without actually adjusting the relevant emissions account
(based on the Party’s inventory) is not enough to ensure environmental integrity
or proper accounting.
Preventing double-counting is one aspect of
ensuring the environmental integrity of carbon markets. Robust rules must be
applied to all aspects of 6.2, 6.4, and all other potential or future mechanisms
where mitigation outcomes are transferred between countries or used for other
international purposes (e.g. by airlines under CORSIA).
Environmental
integrity is, well, integral to Article 6. The atmosphere only counts emissions
once. Let’s not delude ourselves with fuzzy accounting
tricks.
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We’ve Got Questions
It’s exciting to see so many Annex I
Parties participating in the multilateral assessment for their biennial reports.
ECO congratulates Parties for participating and thinks the multilateral
assessment can be a great place to share lessons learned and experiences with
other Parties in a constructive environment. We look forward to hearing your
presentations and listening to the Q&A sessions throughout the day.
Since ECO can’t ask questions during these workshops, we thought we
would share our questions with you, so here they are:
To all
Parties:
Can you provide an update regarding any action taken to strengthen
your policy-making process - in particular in relation to public access to
information and public participation - so as to improve climate responses and
promote policy coherence in the context of progress made towards meeting your
commitments under the UNFCCC?
Australia:
Australia’s Minister for Emissions Reductions states that
the country’s growing fossil fuel LNG exports is a “substantial global
contribution to be proud of,” as it led to avoided emissions of 148 MT. Can
Australia say how it came up with this number for avoided emissions? Is
Australia keen to change the accounting framework to take ownership for Scope 3
emissions?
Denmark:
There is a risk that emissions from biomass combustion are
not accounted for when importing from countries where forests and deforestation
is not counted in their NDCs. As Denmark has the largest imports of wood pellets
per person, what does Denmark do to make sure that the drawdown in carbon stocks
with harvesting of biomass is accounted for in the producing country at the
point where forests are harvested? This must be the minimum demand as the
emissions from burning biomass are not counted.
Finland:
First, congratulations for your impressive net zero 2035
target! This is the kind of leadership we would like to see from the rest of the
EU. But when it comes to implementation, ECO has some concerns. Preliminary
information from Statistics Finland shows that LULUCF net sink decreased 30% in
2018 compared to the previous year due to increased forest harvesting volumes.
In the National Forestry Accounting Plan, Finland has projected an even further
increase of harvesting volumes. We are wondering how the projected increase in
harvest rates and the planned use of forest biomass is consistent with Finland's
new carbon neutrality target 2035 and what kind of impact it is expected to have
on biodiversity?
Japan:
ECO longs for your new and ambitious targets and additional
measures to meet the 1.5°C pathway in 2030 and 2050. ECO doesn’t understand why
Japan continues to use coal fire power plants. Why waste the opportunity
to become a strong global climate leader? The technical assessment of Japan’s
energy policy found that the new coal plants you are planning will “lead to a
substantial increase in emissions, an increased risk in lock-in carbon-intensive
infrastructure, and underachievement of the NDC” (p. 14). Are there plans to
cancel construction of these planned projects, given that their construction
ensures Japan’s failure to meet its NDC?
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DAMaging the Paris AgreementThere was some additional humour
in the air last week as the below picture spread both inside and outside of the
Article 6 room faster than a climate change-induced wildfire. As Parties restart
their discussions on the KP transition, ECO hopes that they will remember this
dam, and won’t let it crack.
If it was up to ECO, no KP credit would be
used after 2020. Clearly, the “robust rules” in the below picture are not robust
enough, because none of these hot air credits should be allowed to flow through
to article 6.
In Doha and Marrakesh, Parties agreed to limit the
transition of AAUs from the first to the second commitment period of the Kyoto
Protocol. Very much the same debate is taking place now. And there is no reason
to suddenly change course. You know the numbers: if the dam breaks, the market
will be flooded.

Credit goes to the anonymous humorous carbon markets geek who made
this.
(ECO also hopes that no human rights were infringed or ecosystems
destroyed in the making of this picture.)
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