Judging from conversations overheard in the corridors, developed countries may finally be getting excited about the idea of preparing a 2020 climate finance roadmap. After suggesting this for years, ECO is in an appreciative mood.
Given the mixed outcomes on finance in Paris, the unmistakable call for such a roadmap is an opportunity to get back on track.
The question now is what the roadmap should contain. Its purpose should be clear: to demonstrate how developed countries will deliver on the promise of US$100 billion a year.
ECO suggests that the roadmap should outline scenarios for the variety of instruments and channels to help deliver this pledge, as well as types and purposes of finance that play a role in the context of the commitment. This will also include identifying barriers and actions to make these scenarios possible. Countries will need to look at the range of available multilateral funds, such as the Green Climate Fund and the Least Developed Countries Fund, reflect on the role of the multilateral development banks to help developed countries deliver on their promises, draw scenarios for evolving bilateral assistance, and enhance direct access and country ownership.
To give the roadmap teeth, it should offer quantitative information too. The roadmap should include a clear projection for the annual level of financial assistance for adaptation to be reached by 2020. Sadly, adaptation remains the neglected child of climate finance, but luckily, paragraph 114 of the Paris COP decision specifically highlights the need to significantly increase adaptation finance. Developed countries cannot avoid this point. There is no doubt that adaptation finance needs to be a core component of the roadmap.
The icing on the roadmap cake would be if developed countries outline how they intend to deliver on their promise while not compromising finance to meet aid commitments. Instead, the roadmap is a prime opportunity to show how climate finance is truly new and additional. To that end, developed countries may want to intensify the search for innovative sources, such as revenues from financial transaction taxes, auctioning permits under emissions trading schemes, and a levy on fossil fuel extraction.
The roadmap can be a bridge-builder, and it should be prepared with input from developing countries. The remainder of this session is the ideal moment to seek out such input, as well as through the coming months – so we can all enjoy the roadmap by COP22.