Close the gap: shift investments
Once the negotiations move into a contact group, ECO can only hope that delegates will see finance as a central pillar of the 2015 package. Developed countries must show a record of year-by-year increases and projections of their continued increase towards 2020. Finance is instrumental to low global emissions and climate resilient development. A failure here will scupper any hopes for a success in Paris.
South Africa has reminded everyone that the funding gap remains huge: trillions of investment dollars need to be shifted. All Parties, developed and developing, have parts to play in setting helpful policy frameworks and in adopting fiscal measures designed to make investors think about where their money is going.
Providing public finance will remain key too, such as support for adaptation in vital sectors like food production in poorer countries and mitigation in less developed countries. Parties will also have to leverage large volumes of private finance and shift investments much larger than the promised US$100 billion a year by 2020.
The debate over finance is part of the equity and adequacy debate. ECO suggests that the first pillar for developed countries is domestic emission cuts, and the second is the provisioning of finance. ECO can’t help but think that, when developed countries prepare initial offers for their nationally determined contributions, they would be well advised to keep the funding gap in mind, and ensure that their contributions are helping to close it.
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