It has come to ECO’s attention that some rich countries may need a quick refresher course in the basics of mathematics. There are four elementary arithmetic operations: + (addition), − (subtraction), × (multiplication) and ÷ (division). Let’s put these to use in some examples:
Addition
Country A has a four-year budget allocation for multilateral climate funds of £2 billion. It decides to give £300 million to the Global Environment Facility (GEF), £200 million to the Adaptation Fund and £1.5 billion to the Green Climate Fund (GCF).
£300 million + £200 million + £1.5 billion = £2 billion.
Simple.
Subtraction
What if Country A decided that it wants to contribute £1 billion to the Climate Investment Funds (CIFs)? This would be subtracted from their £2 billion budget allocation like so:
£2 billion – £1 billion = £1 billion
This leaves only £1 billion to split between the GCF, GEF and Adaptation Fund, meaning these UNFCCC funds will have less money to go around. Not good, especially since the CIFs are not accountable to the UNFCCC, are 80% mitigation focussed, only support half of developing countries, and don’t allow direct access to funding.
Multiplication
Country B pledged €750 million to the Green Climate Fund’s initial resource mobilization in 2014, and decides to double its contribution in the replenishment this year:
€750 million x 2 = €1.5 billion
Way to go! All countries should at least double their initial pledges for this year’s GCF replenishment.
Division
Country C mishears the call to double their GCF contribution, and instead ponders cutting its 2014 pledge of US$1.5 billion in half:
$1.5 billion ÷ 2 = $750 million
This would be terrible backsliding.
Key lessons
- Don’t give money to multilateral climate funds set up outside the UNFCCC, because this subtracts from the amount available to funds under the Convention.
- Addition of funding is good, but multiplication is better. All contributors should at least double (multiply by 2) their 2014 contribution to the Green Climate Fund in the replenishment this year. Those who made low pledges in 2014 should more than double.
- Whatever you do, do not divide or subtract from your original Green Climate Fund pledge. This would be absolutely unacceptable.
ECO will never tire of reminding you to get your maths right! It’s a fundamental lesson to ensure the GCF coffers are adequately filled this year.