Model Conference of the Faculty of International Relations
Environmental section: Draft 3
Model Conference of the Faculty of International Relations
Environmental section
Long-term financing of climate change struggle and capacity building
Draft 3
Bratislava, 27.02.2016
Model Conference of the Faculty of International Relations
on The Long-term financing of the climate change struggle and capacity building
Preface
Model Conference of the Faculty of International Relations (hereinafter referred to as „the Model Conference“) is multilateral forum focusing on negotiating and reaching consensus among participating states, which are significant subjects referring to international challenges. Regarding the current economic, environmental and political situation in international relations we consider establishment of this Model Conference crucial and important to find peaceful and unanimous solutions to these global issues.
Considering the main goal of the Model Conference, the Environmental Section will create a room for multilateral negotiations focusing mainly on various possibilities of financing of the climate change struggle and building environmental institutions with effective environmental management (so called ,,capacity building“).We feel the importance of the environment in case of sustainable development. In our opinion, any global agenda of development without taking environment into account is like a house built on sand.Climate change presents the biggest socio-economic challenge of the 21st century. Current commitments on greenhouse gas emissions run out in 2020, so we take responsibility for creating an agreement dealing with situation later on.
Therefore, we highly value the willingness of the below listed entities, who have agreed to partake in our negotiations and endeavour to come to an agreement. The Environmental section invites the delegates of
Japan,
the European Union,
the Federative Republic of Brazil,
the Kingdom of Norway,
the Kingdom of Sweden,
the Kingdom of the Netherlands,
the People´s Republic of China,
the United States of America
as the major representatives related to the question of financing of the climate change struggle and capacity building in international relations.
Notes
In the period of years, 1970-2004 greenhouse gas emissions caused by mankind increased by 70%. In that case many scientists have warned that if greenhouse gas emissions continue to rise we will pass the threshold beyond which global warming becomes irreversible. That threshold is estimated as a temperature rise of 2°C above pre-industrial levels. On the contrary, we are heading for arise of about 5 °C on current emissions trajectories. The threat of continuous climate change is serious. It can shift weather patterns, which may threaten food production through increased unpredictability of precipitation; rising sea levels are able to contaminate coastal freshwater reserves and increase the risk of catastrophic flooding; a warming atmosphere aids the pole-ward spread of pests and diseases. It is a question of survival for some states such as Tuvalu. This country gradually becomes inundated and therefore could become the first casualty of human-induced climate change.
Global negotiations on climate change have been carrying on for more than 20 years. In 1992 governments met in Rio de Janeiro and forged the United Nations Framework Convention on Climate Change (hereinafter referred to as „UNFCCC“), which does not specify actions for avoiding climate change. The Kyoto Protocol produced in 1997 required cuts in emissions of about 5% with 1990 levels by 2012. Each developed country was assigned a limit on emissions reductions, but on the contrary developing countries were given no targets. The significant landmark was carried out at Copenhagen conference in 2009. Developed countries and the biggest developing countries agreed on limits oftheir greenhouse gas emissions.Current commitments on greenhouse gas emissions run out in 2020 and global warming rate seems to accelerate. The new global binding agreement on climate change is needed.
Over the past several years, capacity building has become a principal priority of the United Nations Environment Programme (hereinafter referred to as „UNEP“).The main goal is sustainable development and capacity building is a mean how to achieve this objective.
The main guidelines of the climate change and capacity building are defined in the following official documents:
- the United Nations Framework Convention on Climate Change
- the Kyoto Protocol
- Assessment Reports of Intergovernmental Panel on Climate Change
- Agenda 21
- Draft decision of the Paris Agreement
Current State of Negotiations
With a big interest in fulfilling aims of the Environmental Section of the Model Conference, with respect of various attitudes to the subject matter, we held the second round of negotiations with the delegations of eight states (hereinafter referred to as “participating states”), which represent different opinions to the possibilities of financing of the climate change struggle and capacity building.
The Chairman of the Environmental Section highly appreciates the open attitude of all participating states invited to partake in multilateral negotiations. With regard to outcomes of the second meeting, the Chairman of the Environmental Section would like to express gratitude to the honoured delegations of all participating states for their presence, as well as for their active interest and willingness to reach a consensus.
- Financing via REDD+ Mechanism
This mechanism is an effort to create a financial value for the carbon stored in forests and offers incentives for developing countries to reduce emissions from forested lands. REDD+ mechanism builds one part of the United Nations Environmental Programme and offers incentives for developing countries which fight with deforestation and degradation. All participating states see the importance in reducing of deforestation and many of them have implemented their own national programs.
All present Parties have closed this issue and agreed on the bilateral cooperation within REDD+, with opt-out for People´s Republic of China which has own effective national programmes and funds.
- The role of Technology transfer
It plays a critical role in an effective global response to climate change, since technology is the source of greenhouse gas emissions. All participating states are wise to the importance of providing “clean” technologies towards combating the climate change. Each state provides own projects and all incentives are mainly based on bilateral cooperation. In many cases private investments and foreign direct investments play crucial role.
This topic was closed on the second round of negotiations. All present Parties have agreed on providing clean technologies through licensing. Licensing involves public private partnership and will be based on bilateral cooperation between the entrepreneur from a developed country, who offers rights and know-how, and the entrepreneur from a developing country who wants to purchase rights for new clean technologies. These licenses will be offered for symbolic price (half price).
Present Parties have also agreed on providing tax benefits and various economic incentives for companies and this measure will intensify demand for clean technologies.
Present Parties have agreed on halving diffusion time for clean technologies to 10-15 years by 2025 aiming smoother and quicker spread of clean technologies all over the world.
- Financing viaGreen Climate Fund
The purpose of the Fund is to make a significant contribution to the global efforts towards combating climate change. According to the outcome of COP21 there is a need to expedite support for LDCs and other developing countries. Developed countries are intended to raise climate finance of 100billion USD a year by 2020, later by 2025, and other countries may provide financial support on a voluntary basis. Almost all participating states express support to the Green Climate Fund and highlight its importance in case of combating climate change.
In general, we see the importance in:
setting of binding amounts of finance for each state contributing to the Green Climate Fund
discussing allocation of money properly (national/international projects focused on combating climate change, support of private investments)
discussing the micro and small climate investments and crowdfunding in order to accelerate the speed of funding
thinking about bigger South-South cooperation and helping Small Island Developing States (Tuvalu, Kiribati, etc.) and LDCs = the most vulnerable states
- Financing via Carbon Pricing
There are two main types of carbon pricing, and thus emissions trading systems (ETS) and carbon tax.All participating states have implemented or will implement ETS on their national levels and also carbon tax is considered to be very popular and beneficial.COP21 recognizes the importance of providing incentives aimed for reduction of emissions including carbon pricing.
There is a need to reach an agreement in:
setting the initial price of emissions within global market for emissions trading – based on metric tonnes of carbon dioxide emissions per capita/taking into consideration of historical contribution to the raise of global temperatures/20USD per ton/289 JPY per ton/ rising of the price of emissions every second year about 10 USD?
setting the level of carbon tax – should be carbon tax differentiated taking into consideration the status of the country (developing or developed one)?
sale of emissions through auctions
- Financing via Climate Investment Funds
Climate Investment Funds involve 4 funds and thus Clean Technology Fund, Forest Investment Program, Pilot Program Climate Resilience and Scaling up Renewable Energy Program.All of themare managed by the World Bank and provide resources to mitigate the challenges of climate change and reduce their greenhouse gas emissions. Fourteen countries have pledged 8.1billion USD to the Climate Investment Funds.
The Environmental Section sees the importance in:
ensuringtransparency in case of multilateral/bilateral climate projects – infrastructure, the role of developing banks, regular providing of information, demonstrable results, detailed information, comparable data, etc.
discussing matching MRV of finance from developed countries and MRV of actions in mitigation and adaptation in developing countries and its mechanism
discussing putting stress on Forest Investment Program as a possible way of fighting against deforestation and degradation
discussing providing grants for developing countries and loans for developed ones
- Support and effectiveness of the Capacity building
A number of countries may require assistance in knowledge, tools, public support and political know-how to reach a sustainable development. We have to point out that there is no general approach to capacity building.
In case of effective capacity building is very important to:
take into consideration the help of Subsidiary Body for Scientific and Technological Advice in order to enhance linkages between mitigation, adaptation, finance, technology transfer and capacity building
discuss the possibility of building one body or fundfinanced by balanced contributions from states, banks or NGOs in order toimplement the environmental management among states
discuss the establishing the Committee on Capacity-building and its aims and functions
discuss the mechanism of understandingcountry´s needs and thus realizing tailor-made activities
think about the issue of transparency - effective mechanism of capacity building created on national/international basis
- Intended Nationally Determined Contributions (INDCs)
On the first round of negotiations each country outlined publicly what actions they intend to take within the new global agreement on climate change. Their importance lies also in the possible creation of constructive feedback between national and international decision-making on climate change.
With aim to ensure bigger transparency and willingness of states to keep their words the Environmental Section suggests to:
discuss the adoption of national programs which will contain detailed information about timing, measures and efforts to reducing greenhouse gas emission as they have promised and all these programs will be subordinate to the UNFCC Secretariat
discuss the possibility of adoption “partly conditioned” INDCs for the most vulnerable countries
All members of the Environmental Section vow to attempt to find consensus and compose an applicable agreement, while bearing in mind the daily lives and the importance of environment and sustainable development.
We would like to leave room for suggestions of new ways of financing climate change struggle. By the authority of the Model Conference, I hereby express our gratitude and officially invite the representatives of member states to commence the negotiations.
Ivana Repčáková
Chairman of the Environmental Section
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