Climate change and innovative financing
Climate change prompts innovative financing mechanisms
The global context in which increasing account is taken of climate change issues is leading many countries to put forward various proposals underpinned by specific instruments. In that context, the European Union has responded favourably to a particularly promising innovative financing mechanism: the implementation of a CO2 emissions trading system , part of the proceeds of which can be allocated to development. Germany and the United Kingdom have in fact decided on an auction process for the period 2008-2012, and in December 2008 the European Council proposed a compromise for the revenue generated by the auctions.
The Leading Group
In a global context characterised by the rising importance of issues relating to climate change, the Leading Group has mobilised its efforts in the area of “green diplomacy”.
At its most recent ministerial-level meeting in Conakry, it acknowledged that “the first victims of global warming are the least developed countries (LDCs), namely the ones that are less accountable for CO2 emissions”. The Conakry Declaration also points out the potential offered by the “opportunity to generate new resources to address that injustice and to finance actions for adaptation to climate change”.
One of the Group’s member countries, Germany, announced as early as 2007 that part of the revenue from carbon credit auctions would be earmarked for the combat against climate change