The attempt by developed countries to strengthenand expand the “pledge and review” model underthe guise of the Copenhagen Accord would haveallowed them to evade their responsibility and thecarbon debt that they owe to developing countriesfor their historic and excessive use of the Earth’satmospheric space. This over-consumption has resultedin an adaptation debt, as developing countrieshave suffered – and continue to suffer – the worstimpacts of climate change, and also an emissionsdebt. Therefore, developed countries must undertakeambitious domestic emission reductions in order toallow developing countries to increase their own tomeet their sustainable development needs.Financing adaptation: enormous cloudsbut little rainThe broader strategies for combating climate change(e.g., mitigation, adaptation and support to existingdevelopment and growth) are interlinked and are areal challenge to developing countries, which willrequire new, additional and incremental financialresources for their implementation.Adaptation financing – financing the adaptationof developing countries to climate change – isrequired to build their social and economic capacityto absorb current and future shocks. These include:climate proofing 7 development, economicgrowth, official development assistance (ODA) andexisting infrastructure; additional investments fornew infrastructure; costs of community level andcommunity-based adaptation; capacity building; restorationof eco-system services; addressing massdisplacement; and mainstreaming adaptation intopoverty reduction strategies and other relevant governmentpolicies and programs. Thus the amount ofadaptation finance is a critical concern to the LDCs,Small Island Developing States (SIDS) 8 and Africancountries that are likely to be the most affected by theimpacts of climate change.Several studies have estimated the amount offinances required for adaptation. Oxfam estimatedmore than USD 50 billion, 9 UNDP USD 86 billion 10and UNFCCC USD 28-67 billion 11 per year. Anotherreport on financial flows produced by the UNFCCCSecretariat put the financial resources needed by7 “Climate proofing” is a shorthand term for identifying risksto a development project, or any other specified naturalor human asset, as a consequence of climate variabilityand change, and ensuring that those risks are reduced toacceptable levels.8 There are 52 SIDS – both UN and non-UN member states –out of which 10 are LDCs.9 Oxfam, “Adapting to climate change: what’s needed in poorcountries, and who should pay,” Oxfam Briefing Paper 104,2007. Available from: .10 UNDP, Human Development <strong>Report</strong> 2007/2008: Fightingclimate change. Human solidarity in a divided world,NewYork, 2007). Available from: .11 UNFCCC, “Investment and financial flows to address climatechange,” background paper, 2007. Available from: .2030 at USD 130 billion for mitigation activities andseveral hundreds of billions for adaptation in developingcountries alone. Against these different estimations,mostly based on various “top-down” methodologies,developing countries asked for 1-1.5% ofdeveloped countries’ Gross Domestic Product (GDP)in addition to their existing ODA commitment. Chinahas suggested that developed countries should commit0.5% of GDP for such climate change paymentsin addition to the 0.7% Monterrey Consensus 12 ODAtarget (i.e., USD 260 billion in 2007). 13Given this context, the Copenhagen Accordforesees USD 30 billion of “new and additional resources”for the period <strong>2010</strong>-2012 as the collectivecommitment by developed countries ‘”with balancedallocation between adaptation and mitigation.” 14 AlthoughLDCs and SIDS, as well as Africa in general,will have preferential access to the adaptation fund,the present commitment is insignificant. Furthermore,there is no indication of the amount of adaptationfinancing beyond 2012. Long-term funding projectionfor adaptation actions in the most vulnerablecountries is ignored in the Copenhagen Accord.The reality is bleak: while developed countriesshowed common and indifferent interest in solvingtheir financial crisis resulting from market failure,they have been reluctant to show such interest insolving the climate crisis for which they are responsible.Yet, in comparison with the USD 20 trillion ofdirect bailouts and no-strings guarantees offered bydeveloped country governments to the private sectorduring the crisis, the amount needed to addressclimate change is relatively modest. 15Legitimizing the neo-colonial instrumentWhatever the amount, the ideology of climate financingis of critical concern to developing countries. Inthe concluding plenary of CoP 15 many of Westerndelegates wanted to link the funds they were offeringto developing countries as a pre-condition foraccepting the Accord – something that developingcountries’ delegates termed “offering a bribe”. EdMiliband, Minister for Energy and Climate in the UK,very specifically said that unless delegates acceptedthe Accord, “we will not operationalize the fund.” 16The delegate from the US also spoke in a similarvein.This attempted linkage of finances to the acceptanceof the Accord is not in line with the fundingnotion of the UNFCCC under which developed12 Adopted during the International Conference on Financing forDevelopment held in Monterrey, Mexico, 18–22 March 2002.13 Based on the fact that 2007 OECD/DAC’s ODA of USD 104billion amounted to 0.28% of DAC Gross National Income(GNI). Source: OECD (2008).14 UNFCCC, “<strong>Report</strong> of the Conference of the Parties on itsFifteenth Session,” op. cit.15 Antonio Tricarico, “If Keynes could sit at the climatenegotiations table... Proposal for an ‘International ClimateUnion’ and a SDR-based ‘Global Climate Fund’,” CBRMDiscussion Note 1, <strong>2010</strong>.16 Reuters, “U.S.-led climate deal under threat in Copenhagen,”19 December 2009. Available from: .countries committed themselves. Moreover, somehave pointed to ODA once again as the most likelysource of funds – despite the fact that donor countrieshave completely failed to meet even existingODA commitments over the last 30 years. At present,all international adaptation funding instruments −with the exception of the recently operational KyotoProtocol Adaptation Fund − are replenished throughODA-type bilateral donations, mostly through theexisting financial architecture.There has been a long battle between developedand developing countries in setting the financial architecturefor adaptation and mitigation financing.Developed countries have wanted the existing financialarchitecture, the Global Environment Facility(GEF), to manage the fund while developing countriesdemanded a different institution since they considerthe GEF funding model as difficult to access. Thisissue was resolved by the consensual establishmentof an independent Adaptation Fund Board, whosemembers are selected by – and are under the directauthority of – the Convention’s Parties.Given the patterns of differentiated historic responsibilities,the costs of adaptation are seen asdebts to be borne by the largely responsible industrializedworld. Debts cannot be repaid by loans oreven by grants – this notion is beyond the so-called“donor-recipient” or “patron-client” relationship.Additionally funding is given to the countries alreadyeligible for concessional loans from Multilateral DevelopmentBanks (MDBs), meaning that the participatingcountry has to be in compliance with theloan conditionalities determined by the MDBs. Theseinstitutions lack the credibility to manage such fundsbecause of their poor record on social and environmentalprotection, lack of democratic governance orcommitment to transparency and accountability, andsignificant current and past lending for fossil fuels. 17The MDBs are neo-colonial instruments; legitimizingthem as the operating entity for climate finance isnothing but a remodelling of developed countries’aid politics.Killing KyotoFollowing the frustrating outcome of the CopenhagenConference, new polarization on climate diplomacyhas emerged. The Accord also does not bringmuch clarity on how the negotiation process willmove forward.As for the Bali Action Plan, adopted at CoP 13in December 2007, the negotiation are proceedingunder two tracks: the AWG-LCA, which is negotiatingthe enhancement of actions to ensure full, effectiveand sustained implementation of the Convention;and the AWG-KP, which is tasked with setting thereduction targets for the post-2012 commitmentperiod at a time when scientific evidence demandsdeep cuts in the range of at least 25-40% by 2020.Only the Kyoto Protocol provides a commitmentperiod from 2008–2012 and sets legally binding collectiveand individual targets for Annex I Parties,17 ActionAid, “Cereal Offenders,” Policy Briefing, July 2008.Available from: .Thematic reports 22 <strong>Social</strong> <strong>Watch</strong>
varying from country to country, in order to reduceGHG emissions.Almost all the developed countries – includingAustralia, Japan and the EU – raised their united voicesto dismantle the Kyoto Protocol, collapsing thetwo tracks into one and producing one single legaloutcome through ensuring inclusion of the advanceddeveloping countries. The US, for example, neitherintends to ratify the Protocol nor accepts a legallybinding agreement; it prefers instead a bottom-upkind of “implementing agreement.” Through a setof clear decisions under the UNFCCC, this wouldformalize and strengthen the existing provisions ofthe Climate Change Convention for voluntary, nonbindingand economy-wide emission commitmentsto reduce GHG and report on emissions. This “pledgeand review” approach is in plain contradiction of theKyoto Protocol and leaves countries with leeway onwhat kind of targets to adopt and how to meet them.While the Kyoto’s approach specifies targets for aspecific period and assessments on whether thosetargets have been reached, the process called forin the Copenhagen Accord resembles the negotiationsin the context of the World Trade Organization(WTO), where every few years countries make newpledges to reduce their trade barriers. 18The Kyoto protocol, which created a global coalitionbetween politicians, experts, bureaucrats, civilsociety organizations and people across the world,outlined an integrated approach to face the challengesof climate change. Now, the approach of “cherry picking”the preferable options by developed countries isreminiscent of the words of the Bush administrationthat “Kyoto is dead.” 19 At the time, this statement waswidely denounced in countries around the world;now these countries need to work to keep the KyotoProtocol functioning towards its next phase.A way forward to CancunAt CoP 15 in Copenhagen, as at CoP 13 in Bali, thecountry Parties negotiated through three majorblocs: (a) the European Union, (b) the US, supportedby Canada and Japan and (c) the G77 and China.Among these, the last is the major one with 132countries including developing countries, LDCs andAOSIS. It is the platform of almost all the non-AnnexI countries that are historically not responsible forthe present climate crisis but, given the disparity ineconomic comparability and GDP growth, it is alsothe most heterogeneous group and is mostly drivenby the interests of the advanced developing countries(China, Brazil, India and South Africa).These three blocs led to “triangular climate diplomacy.”For example, the EU took its stance to producea single legal outcome and attempted to pushprimarily the US, but also the advanced developingcountries, into accepting binding commitments. Onthe other hand, as mentioned above, the US pushed18 Harro van Asselt, “Copenhagen chaos? Post-2012 climatechange policy and international law,” Amsterdam LawForum, 2(2), <strong>2010</strong>. Available from: .19 Dick Thompson, “Why U.S. Environmentalists Pin Hopes onEurope,” Time, 26 March 2001. Available from: .Climate funding and the MDGsIan PercyThe USD 30 billion in “new and additional” fundingchampioned in the Copenhagen Accord isfar from assured. The amount may reflect UNpriorities and a commitment to climate changemitigation and adaptation, but the historicaltrend is not encouraging. Developed countrydonors are not on track to meet the target of0.7% of Gross National Income (GNI) to beprovided by 2015 for ODA; already there arereports from Finnish civil society, for example,that climate funding is being drawn from its developmentbudget. 1 The situation is similar inmost countries that have made the pledge. Inaddition Better Aid reports the projection thataid receipts are to lose over USD 2 billion onceclimate funds to middle-income countries beginto erode the aid budget. 21 Better Aid. Available from: .2 Ibid.for an “implementing agreement.” For their part, theadvanced developing countries stressed the historicalresponsibility of all the industrialized countries,including the US, and urged them to lead in combatingclimate change as they have committed to inArticle 3.1 of the UNFCCC.Significant divisions also took place amongother members of the G77 and China group; the SIDSand LDCs demanded Long-term Cooperative Actionnegotiations on a protocol that would function alongsidethe Kyoto Protocol. This group also demandedpreferential allocation of adaptation finance, whichthe other advanced developing countries did not support.Unlike in global geo-politics, the positions ofUS and China appear to converge in global climatediplomacy since both countries prioritize their nationalrather than the global interest.The emerging multi-polarity in the global climatediplomacy translates into a number of key actors ableto block substantial progress in the future negotiationleading to the 16 th CoP to be held in November<strong>2010</strong> in Cancun (Mexico). Without a complementarypolicy position among the advanced developingand developed countries, including the US, positiveoutcomes and breakthroughs in climate policy areunlikely. Besides, the division of UNFCCC partiesinto two groups – Annex I and non-Annex I countries– is no longer appropriate, given the complexity ofglobal climate policy. Even though many developingcountries and emerging economies insist that thisdichotomy must be maintained, some differentiationwithin the group of non-Annex I countries is neededin order to speed-up the negotiation process.The Millennium Development Goals(MDGs) will not be met, and development islagging behind other stated goals in many areasof the world. A lack of development funding isoften cited as a reason for slow progress onmeeting targets. Based on current trends it iseasy to imagine a severe drop in ODA reservedfor non-climate activities. Political leaders,especially in the Organization for Economic Cooperationand Development (OECD), are underincreasing pressure to show results for the aidthey provide. There is a real danger that lessquantitative development goals could be forgottenin favour of verifiable climate changemitigation and adaptation strategies.In order to ensure that donors and developingcountries do not lose sight of developmentcommitments, baselines for climate fundingmust be established at the 16 th Conference ofthe Parties in Cancun. Without verifiable andsuccinct qualifications for “new and additional”funds, there is a danger that education andother development priorities could end up playingsecond fiddle to wind farms and biomassprojects. nConclusionA recent analysis of the Copenhagen outcomes 20by UNDP notes that the conference fell short of acomprehensive agreement on a future frameworkon climate change. However if Parties were to usethe Copenhagen Accord as an overarching politicalguidance on the core issues, the technical negotiationsunder the AWG–KP and AWG LCA could besignificantly advanced and the texts finalized morequickly, while taking into account the concerns ofthose countries that did not agree to the Accord.Meanwhile, the first meeting of country Partiessince the Copenhagen Conference extends the mandateof the two ad hoc working groups – the AWG-LCA and the AWG-KP. In fact, there are significantmerits for such a two-track approach since much ofthe required institutional framework already exists.If this approach is not taken, then the progress thathas already been achieved in the negotiation processwill be jeopardized. n20 Alina Averchenkova, “The Outcomes of Copenhagen:The Negotiations and the Accord,” UNDP Environmentand Energy Group Climate Policy Series, February <strong>2010</strong>.Available from: .<strong>Social</strong> <strong>Watch</strong>23Global climate: the Copenhagen collapse