Geoscience Reference
In-Depth Information
New domestic sources of adaptation financing
Governments should redirect their fossil fuel subsidies to support renewable
energy and assist developing countries to adapt to climate change. Recent
analysis has shown that the Australian government currently subsidises fossil fuel
use to the tune of Aus$12bn per year (ACF, 2011). The Australian government
should dedicate a small proportion of revenue from any carbon pricing scheme
towards supporting international adaptation finance.
Together, these innovative sources of adaptation funding have the potential to
generate significant, new and additional financing for adaptation in developing
countries. It is not a question of capacity - it is a question of will. But until these
or similar measures are in place, formal budget contributions from developed
countries will be crucial.
Making the global fund work
It is clear that the current system for financing adaptation in developing
countries is not working. The world needs to establish a new global climate fund
that can serve as a one-stop-shop for climate financing. We need a system that is
effective in meeting the scale of finance that is required in developing countries
and that is perceived as legitimate by civil society and governments alike. Oxfam
has conducted substantial research on the topic of a new global climate fund. Its
recommendations include ensuring developing countries and vulnerable groups
are properly represented in fund-related decision-making.
The entire governance
structure of the finance system should reflect principles of gender equity,
including striving for at least gender equitable representation on its governing
boards and committees. The membership of governance bodies should also
include dedicated representation from particularly vulnerable country groupings
and civil society.
Second, a finance board should be established to ensure developing countries
receive the funding they need. The board would have a central role in the
measuring, reporting and verification of financial support, and it would oversee
internationally agreed standards for what counts as climate finance against inter-
national obligations.
Third, a global climate fund must enshrine the principle of country ownership.
Recipient countries should be required to establish inclusive national decision-
making processes that are gender inclusive. Flexibility and financial support will
be needed for countries that lack sufficient human, institutional or technical
capacity. In addition, they should be able to access resources from the new fund
directly, without an intermediary (Oxfam, 2010b).
