News

UNFCCC Issues Three Technical Papers on Finance

United Nations Framework Convention on Climate Change

27 November 2008: The UNFCCC Secretariat has released three substantive papers for parties on finance. One technical paper, entitled “Investment and financial flows to address climate change: An update” (FCCC/TP/2008/7), provides an update to the paper published by the Secretariat on the same topic in 2007.

This update was requested by the Ad Hoc Working Group on

Long-term Cooperative Action under the Convention, at its second

session, taking into account paragraph 1 of decision 1/CP.13 (the Bali

Action Plan). The technical paper presents different options, tools and

mechanisms to enhance financing for mitigation, adaptation and

technology cooperation for an effective response to climate change.

It

also contains information submitted by parties and other observer

organizations on these options, tools and mechanisms, as well as

relevant new information available on the investment and financial

flows needed. Another technical paper, entitled “Identifying, analysing

and assessing existing and potential new financing resources and

relevant vehicles to support the development, deployment, diffusion and

transfer of environmentally sound technologies Interim report by the

Chair of the Expert Group on Technology Transfer” (FCCC/SB/2008/INF.7),

presents the current situation on financing mitigation technology

transfer by stages of technological maturity (research and development,

demonstration, deployment and diffusion), by specific technologies and

by sources (under and outside the Convention).

It also summarizes

up-to-date estimations of additional financing needs to scale up

technology transfer from various sources and gives a number of insights

on barriers to financing technology transfer. The report provides

information only on financing mitigation technologies; the work on

financing technologies for adaptation will be presented in the final

report to be completed by the 30th session of the UNFCCC subsidiary

bodies. Another technical paper, entitled “Funding adaptation in

developing countries: extending the share of proceeds used to assist in

meeting the costs of adaptation; and options related to assigned amount

units of Parties included in Annex I to the Convention”

(FCCC/TP/2008/6), analyzes options for funding adaptation in developing

countries, by extending the share of proceeds or generating revenue

from assigned amount units.

The paper explores the scale of the funding

that could be raised for adaptation under each option, possible impacts

of the options on the carbon market and, where appropriate, issues

involved in the monetization of Kyoto units provided to the Adaptation

Fund. [Investment and financial flows to address climate change: An

update] [Identifying, analysing and assessing existing and potential

new financing resources and relevant vehicles to support the

development, deployment, diffusion and transfer of environmentally

sound technologies Interim report by the Chair of the Expert Group on

Technology Transfer] [Funding adaptation in developing countries:

extending the share of proceeds used to assist in meeting the costs of

adaptation; and options related to assigned amount units of Parties

included in Annex I to the Convention]