Negotiation Indices

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ecbi
Lessons learnt and next steps in the negotiations
presented Benito Müller East and Southern
African Regional Workshop Hilton Hotel Nairobi
3 March 2010
european capacity building initiative initiative
européenne de renforcement des capacités
for sustained capacity building in support of
international climate change negotiations pour un
renforcement durable des capacités en appui aux
négociations internationales sur les changements
climatiques
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The Issue of Distributive Justice and Thematic
Balance

• Distributive Justice
• Traditional ODA neither involves obligations to
  pay, not entitlements to receive. Hence, strictly
  speaking, there is no issue of contributing or
  receiving a fair share
• The nature of financial payments for climate
  change activities, particularly in the case of
  adaptation and response to climate impacts is one
  of restitution.
• Hence there are both obligations to pay and
  entitlements to receive, which implies that
  equity, in these sense of either shouldering a
  fair share of the payment burden, or receiving a
  fair share of the revenue is an issue.
• At present, the focus really has only been of the
  former (e.g. Mexican and Swiss proposals). Few
  have raised the issue of how to distribute
  climate finance equitably.
• Thematic Balance
• Climate change finance involves a number of
  different themes (mitigation, adaptation
  ,technology transfer, etc. ), and the issue of
  thematic balance is whether each of these
  themes receives an appropriate share of the
  revenue.

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Three Fundamental Dichotomies
Fragmented v. Consolidated Centralized v.
Decentralized Devolved v. Retained
(a) Retained, Fragmented, Decentralized (b)
Devolved, Consolidated, Decentralized (c)
Retained, Consolidated, Centralized
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Centralized Decision Making The Problem of
Administrative Size
Multilateral Fund (0.19 people/m)
Global Fund (0.21 people/m)
Expected Size (0.2 people/m)
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RFM Core Consolidation and Decentralization
through Devolution
UNFCCC Conference of Parties (COP)
External Audit
Operating Entity
Executive Board
Expert Advisory Panel(s) (as required)
Administrative Services
RFM Trustee
Thematic Assessment Units (one per disbursement
window)
Internal Audit
Secretariat Services
International Level
Domestic Level
Designated Funding Entities
Direct Access
Legend Governance Relation (under the authority
of) Contractual Relation (MOU or contract)
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Funding versus Disbursement

• Disbursements to Designated (National) Funding
  Entities
• Funding is financing (incl. approval and
  evaluation) of activities such as projects,
  programmes)
• Disbursements are dependent on the disbursement
  criteria for each theme, as well as the thematic
  allocations (both approved by the COP on
  recommendation by the EB). They do NOT rely on
  evaluations of projects, plans or strategies.
• Disbursement Criteria
• Disbursement criteria will vary from theme to
  theme. For example
• Mitigation disbursements could be on a
  performance basis, with an flat per country
  component
• x million y million for the MRV reduction in
  the previous period
• Adaptation disbursements should be carried out by
  a very simple disbursement formula, e.g. a flat
  per country component a component proportional
  to the number of poor inhabitants.

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RFM International Funding

• The bulk of the transactions in terms of size of
  the RFM is (ultimately) meant to be carried out
  through money-in-money-out disbursements to
  designated (national) funding entities.
• However, there will still be a need for
  international funding in the more traditional
  sense, such as currently developed under the
  Adaptation Fund.
• For one, not all funding purposes lend themselves
  naturally to be devolved to the country level.
  While mitigation and adaptation per se would seem
  to be prime candidates for such a devolution,
  funding decisions for certain types of capacity
  building and technology transfer activities may
  be better kept at the international level.
• Even with respect to the other themes, there will
  for some time to be the need to retain a more
  traditional international funding capacity, for
  it may take some time before all countries will
  be able to participate in the devolved
  disbursement regime.

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The LCA Draft Decision
UNFCCC COP
Finance Board
Climate Fund/Facility
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Coordination or Consolidation Potential for
Compromise?
UNFCCC COP
RFM Administration
Finance Board
International Level
Climate Fund/Facility
Operating Funding Entity 2 (Adaptation)
Operating Funding Entity I (Mitigation)
Administrative Services, incl. Thematic
Assessment Units
National Level
Designated Funding Entity
Legend Governance Relation (under the authority
of) Contractual Relation (MOU or contract)
Oversight and governance/contractual RFM
Operating Entity Disbursement/Certification
International funding/Coordination
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• Thank you!