Affairs and Tourism on early breakthrough on new fund to assist developing
countries to adapt to climate change, Bali, Indonesia
11 December 2007
After 10 days of intense negotiations we achieved an early breakthrough in
the climate negotiations in Bali.
By late last night negotiators clinched a deal to officially launch the
Multilateral Adaptation Fund. South Africa led the negotiations on this issue
for the largest negotiating bloc, the Group of 77 (G77) and China, which
represents 130 developing countries.
The decision constitutes a major victory for the developing world in setting
in a new governance system for funding of adaptation activities that are aimed
at expedited and direct access to the fund, whose operations will be guided by
an independent Adaptation Fund Board. Another major breakthrough for the
developing group was the fact that the majority of members would come from
developing countries and that if any voting on decisions would be needed; this
will take place on the basis of one country one vote.
The purpose of the fund is to assist vulnerable developing countries to
adapt to the inevitable impacts of climate change. It will be worth up to $500
million per year by 2012, and is expected to grow exponentially beyond
2012.
Our cabinet mandate was to establish a transparent and fair governance
regime under an Adaptation Fund Board, with direct access for developing
countries, and a secretariat to be provided by the Global Environment Facility
(GEF). Our aim was also to ensure that this fund will be exempt from the
decision-making procedures of the GEF, to give developing countries a more
direct and equitable voice in how funds are prioritised and spent.
The possibility of direct access to the Adaptation Fund by eligible parties
was of major concern for the Group of 77. The G77 did not want to continue a
process where they would be forced to use implementing agencies. After agreeing
to include criteria relating to financial responsibility and the ability to
deliver the projects, it was agreed that eligible countries will have direct
access to the Fund.
The appointment of a secretariat and trustee was of the most contentious
aspects of the decision, given the negative experiences that most developing
countries have with their interaction with the GEF and the World Bank in
respect of the funding of climate related projects. In the end it was decided
that the GEF and the World Bank will be appointed on an interim basis and that
this arrangement will be subjected to a rigorous review.
Nominations for the board will now be requested and the board is to urgently
start its work in 2008.
Note to Editors
The United Nations Climate Change Conference in Bali will continue until 14
December 2007. Delegates to the conference are deliberating on a wide range of
topics and agenda items, with a major focus being post-2012, when the Kyoto
Protocol's first commitment period expires.
In particular, delegates will seek to agree on a negotiating process to
finalise a post-2012 regime. Other issues that will be taken up include the
Kyoto Protocol's flexible mechanisms, reducing emissions from deforestation in
developing countries, technology transfer, financial issues, and issues
relating to adaptation, including the Adaptation Fund.
Enquiries:
Riaan Aucamp
Tel: 012 006 2815
Issued by: Department of Environmental Affairs and Tourism
11 December 2007
