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LATEST NEWS UPDATES | Green climate fund faces delay amid mounting objections by Urmi A Goswami

Green climate fund faces delay amid mounting objections by Urmi A Goswami

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published Published on Dec 1, 2011   modified Modified on Dec 1, 2011

In a setback to the climate talks underway in Durban, discussions on finance, a key element of a successful outcome, appear to have hit the slow road. 

The discussions on the two integral elements - the Green Climate Fund and sources for long-term funding - have been put on hold. 

With the fate of the climate fund with predictable fund source hanging in balance, it is perhaps time for India to push through its informal proposal for a transparency framework for the financial contributions by developed countries. New Delhi had put forward a proposal for such a framework in June. 

The Green Climate Fund is expected to be made operational in Durban. For this purpose a Transitional Committee was set up to provide a blueprint of the fund, which would be the mechanism for disbursing climate finance. 

Certain recommendations of the committee's report were found to be unacceptable to a clutch of Latin American countries, represented by the Bolivarian alliance, ALBA, and Egypt. 

The committee made it clear that its recommendations aimed to present a middle ground, which would allow for the launching of the fund as part of the Durban outcome. However, these countries would like the discussions to be re-opened, and to redesign the fund. 

South Africa, which chairs this year's summit, has opted to undertake informal consultations on the committee's recommendations to resolve the issue. 

As the fate of the Green Climate Fund hangs in balance, the progress on sources for long-term finance also appears to be on hold. It is understood that South Africa is now not even considering the question of sources of finance. This could mean that there will be no work programme on this issue for the next year as well. 

The absence of resolution on the Green Climate Fund and fund sources would have a cascading effect on other key elements of a successful outcome. Work on setting up the mechanisms for technology transfer and development, forestry and adaptation is almost complete. 

However, without a predictive financial linkage, these mechanisms would have no meaning.


The Economic Times, 2 December, 2011, http://economictimes.indiatimes.com/news/politics/nation/green-climate-fund-faces-delay-amid-mounting-objections/articleshow/10951201.cms


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