November 23, 2000

U.S. Proposes New Funding to
Help Developing Nations Fight
Climate Change

By Jim Fuller
Washington File Science Correspondent

The Hague - The United States, along with its negotiating partners at the climate change talks in The Hague -- which include, among others, Canada, Japan and Australia -- have proposed an ambitious plan to provide new funding that would assist developing countries in their efforts to fight climate change.

Frank Loy, under secretary of state for global affairs and head of the U.S. delegation, told reporters November 23 that the proposal calls for contributions from all developed countries to provide new sources of immediate and long-term assistance. Developed countries that are the largest emitters of greenhouse gases -- mainly carbon dioxide from the buring of fossil fuels -- would make the largest contributions.

The funds would help developing countries increase their capacity to limit heat-trapping greenhouse gas emissions and deal with the adverse impacts of global warming.

The funding would be in additon to what developed countries have already agreed to provide developed nations to help them address environmental problems under the U.N. Framework Convention on Climate Change signed at the 1992 Earth Summit in Rio de Janeiro.

Loy said it was hoped that the ministers at The Hague conference would agree on the broad outlines of the latest proposal and launch a process to achieve consensus on the details at the next conference of parties next year.

"We have thought very long and very hard about how best to provide this reliable stream of additional funds over the years, and we think the ... proposal meets the needs in an effective and reliable fashion," Loy said. "I very much hope this conference will look at that very carefully, and our initial reactions are that, in fact, they are looking at it very carefully."

The proposal has two parts. Under the first part, developed counhtries would declare their intent at the conference to provide immediate increases in funding to assist developing countries with technology transfer, their capacity to limit heat-trapping greenhouse gases, and their ability to deal with and adapt to the adverse impacts of global warming. Special emphasis would be placed on helping the least developed countries and small island states, which are threatened the most by the possible adverse effects from climate change, such as a rise in sea level.

Assistance would be provided through both bilateral and multilateral sources, including additional contributions to the Global Environment Facility -- a joint funding program established by developed countries to meet their obligations under various international environment treaties.

"The idea ... is that these (contributions) would be in addition to those that were already contemplated or committed," Loy said. "And the idea is that it would be a serious political commitment that would be discharged, not just words."

Under the second part of the proposal, developed countries would declare their intent to establish a new mechanism to provide a steady stream of funding -- up to $1,000 million by the the period 2008 to 2012 -- to support developing country efforts. The level of funding would be reviewed periodically.

This new mechanism would include two funds -- one supporting adaptation to the impacts of climate change, and the other supporting emissions abatement measures and sequestration, which refers to improvements to forests and agricultural lands to absorb carbon dioxide from the atmosphere. Technology transfer and capacity building needs would be addressed by both these funds.

Loy said the funding mechanism could be managed through a new GEF "window," with policy guidance from the climate conference parties, and would not require a huge new organization.

"This is not intended to take the place of any other GEF contributions," he emphasized. "This is totally additional. The question of whether it is mandatory ... is one of the things that's still being discussed."

Earlier on November 23, Executive Director of the U.N. Environment Program Klaus Toepfer told conference delegates that it was time "to roll up our sleeves ... to help those small island nations, least developed countries, and those facing increased drought, desertification and other effects of a changing climate system.

"Making investments now to help human and natural systems to adapt to a changing climate is going to pay off in the long-term," he added.

Toepfer said two challenges confront the international community in assisting developing counties adapt to climate change. The first is the mechanism to channel funding for adaptation activities, and the second is to provide tools to help countries make wise decisions in investments for adaptation.

Toepfer said adaptation activities might include new coastal zone protection projects, the creation of new breeding grounds for fish, the expansion of irrigation agriculture, the implementation of new public health measures, and the avoidance of disaster risk through land use planning and building codes.

He said that in Africa there is a desperate need for drought-tolerant forests and crops that not only trap carbon, but stabilize soils, prevent desertification, and maintain biodiversity by providing people with basic resources and income opportunities.

"The challenge is to bring such projects into national economic development strategies," Toepfer said.