UPDATE 1-UN completes draft of green climate fund -official

Fri Oct 21, 2011 10:24pm IST

Related Topics

* Draft design submitted for approval at Durban talks

* When approved, paves way for set-up in 2012, launch in 2013 (Adds Mexico, South Africa, negotiator comments)

By Nina Chestney and Agnieszka Flak

LONDON/JOHANNESBURG, Oct 21 (Reuters) - A U.N. committee has completed the draft design of a fund to help developing countries tackle climate change, paving the way for its launch in 2013, the U.N.'s climate chief said on Friday.

Last year, countries agreed to create the 'Green Climate Fund' to channel up to $100 billion a year by 2020 to help developing countries fight climate change.

An international committee in charge of designing the fund met this week in South Africa, but some organisations accused the United States and Saudi Arabia of hampering the process.

Negotiators from around the world will consider whether to approve the design at next month's U.N. climate summit in Durban, at which hopes have faded for sealing a new globally binding climate pact to succeed the Kyoto Protocol from 2013.

"The Committee ended its work by submitting for consideration and approval in Durban both a draft instrument for the Green Climate Fund and recommendations on transitional arrangements to get it launched quickly," Christiana Figueres, executive secretary of the U.N. Framework Convention on Climate Change, said in a statement emailed to Reuters.

"The submissions (...) include a strong signal to engage the private sector and a solid basis to develop country-driven operations through direct access to funds."

"Once approved in Durban, they would allow the fund to grow quite quickly, especially as the financial environment improves, and the way would be open for a fairly rapid set-up of the fund in 2012 and full initial operations in 2013," she added.

The UK-based International Institute for Environment and Development (IIED) said on Thursday that the United States and Saudi Arabia had withdrawn their support for the overall design of the fund due to concerns about some wording of the text.

Ambassador Luis Alfonso de Alba, Mexico's special climate envoy, however, told Reuters on the sidelines of a pre-COP 17 ministerial briefing in Stellenbosch outside Cape Town that while there were some concerns about the document from the two countries, he did not see any obstacles to its implementation.

"What is important is that we agreed to forward that document to the COP for action," he said.

"We still need to do a lot of work in identifying the sources (of funding) and combination of public and private sources ... this will take us some time next year."

Host South Africa stressed that the issue of financing has been overshadowed by the global economic crisis.

"I have no doubt that the G20 finance ministers do not need much persuasion; the problems stem from the short-term financial crisis. The green climate fund will have to grow to receive anything close to the $100 billion annually," said Dumisa Jele, chief of staff at the presidency.

At a U.N. meeting in Panama last month, more than 100 of the world's poorest nations accused the United States of blocking talks on how to scale up climate finance.

Some of the poorest nations in Africa and Asia, which are particularly vulnerable to climate change, have been urging more direct access to the fund and want to ensure green finance is in place before committing to a binding climate pact.

They argue that national climate change trust funds in developing nations should be able to access the Green Climate Fund directly, rather than going through a third party such as the World Bank, which entails long delays and excessive paperwork.

"Direct access means that you don't have to go through implementing agencies. Many developing countries already have the capability of developing and implementing their own projects, to address their needs directly," Bernarditas Muller, the chief negotiator for the G77 group of developing nations and China, told a briefing in Johannesburg.

"Most important of all, it will allow equal access for developing countries. We need predictable financing to be able to do long-term adaptation and mitigation planning." (Additional reporting by Wendell Roelf in Cape Town, editing by Jane Baird)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

BACK IN JAIL

REUTERS SHOWCASE

Modi Hurdle

Modi Hurdle

Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle.  Full Article 

USL Board

USL Board

Diageo bars United Breweries from appointing independent director at United Spirits.  Full Article 

Amazon in India

Amazon in India

Amazon to sell packaged food and beverages in India - Economic Times.  Full Article 

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage