Climate Change

credit Kiara Worth, UNFCC website, "COP 27 Reaches Breakthough Agreement on new "Loss and damage" Fund for Vulnerable Countries"

What if a New International Financial Institution Started from Scratch? The Case of the Loss and Damage Fund for Climate.

At the 27th session of the Conference of the Parties of the UNFCCC (or, as everybody says, the COP27), held in Egypt from 6 to 20 November 2022, delegates from 197 countries, civil society and other institutions met again to discuss the further implementation of the Paris Agreement and the United Nations Framework Convention on Climate Change.

The usual “too little, too late” refrain usually filling the comments was somehow disrupted by an apparently colossal step forward: the historical (?) decision to establish a new financial instrument: a Loss and Damage Fund. Its goal would be to share among the richer countries the burden on those most affected by climate change, unfortunately mainly classified among the developing or least developed countries.

Yet, reading the papers anyone can quickly realize that the historical decision is an empty one: it is easy to agree on the establishment of a new institution/fund/financial tool (still we don’t know what it will be) if you don’t have to agree to the how, when, where and who…. and especially to who pays and how much.

Yet, at least one decision was taken: who would be on the Transitional Committee in charge of all these decisions. Almost. In fact, this “who” is quite unspecified.

We just know they will represent 24 countries, comprising 10 members from developed countries and 14 from developing countries. Among the 14, we also know that 3 will be from Africa, 3 from Asia and Pacific, 3 from Latin America and the Caribbean, 2 from small island developing States, 2 members from the least developed countries; and to get to 14, 1 from some category non specified above (which?).

Why 24? Maybe because this is the size of the IMF and (until a few years ago) World Bank boards. Does it mean that the fund, more than a financial instrument will be an international financial institution? One that we could classify as an international organization? Maybe.

If so, great opportunities lay ahead. After so many years of discussions on how to revise IMF and WB to make them more equitable and closer to their “clients”, both geographically and culturally, we could just take the new Fund as an occasion to design an entirely different way to build an equitable world organization. In fact, what best opportunity than starting from scratch?

The process in itself is not exactly transparent

The same Decision -/CP.27 -/CMA.4 establishing the Committee (not the Fund) was quite hidden among the COP27 documents. Moreover, it would be interesting to know who are the 24 selected countries and who are their appointed representatives. As these 24 people are in charge of submitting a detailed proposal for the real creation of the Fund on the occasion of the next COP, their knowledge, experience and wisdom are quite relevant.

I would also love – and maybe many experts and activists would as well – to know how to get in touch with them to submit suggestions or, even better, contribute to the work in progress.

I had a very interesting conversation about this topic with Nico Heller, founder and CEO of the Democracy School. You can listen to it here:

And here are a few suggestions to add some democratic features to the new financial institution, if they dare!

A Multistakeholder Assembly, as a second chamber flanking the (usually intergovernmental) Governing Council;
A Ministerial Committee with the same composition as the Transitional Committee to be renewed on a rotating basis, to provide political guidance;
An independent Executive Board, appointed by the chambers after a proposal by the Ministerial Committee;
Membership of regional integration organizations as an alternative to membership of States, with full rights;
Transparency, transparency, transparency (e.g. motivated decisions, to be published online);
An advisory role for civil society (e.g. online consultations on drafts of policy and strategy documents;
Structural links with other international organizations whose role is related or overlapping to avoid duplication of functions, fragmentation and dispersion of resources. We could start with…
- UNFCCC
- IPCC
- WMO
- UNEP

It does not happen every day that an interesting case study for institutional engineering is also a crucial tool to tackle a global issue.

And we didn’t talk about financing! There we have an even greater challenge as the new institution should be able to support itself and finance its grants somehow. Would be too much bold to imagine states’ contributions based on some kind of algorithm where both emissions and GDP are part of the equation? Could that not encourage indirectly reducing emissions? Just saying…

Active Global Citizenship: Making the Climate Convention Work

Posted on June 9, 2016 by Susanna Cafaro

First published on Vocal Europe

We are all shocked because of the floods in Paris and across most of central Europe: from Germany to Belgium to Romania. We are scared for the increased frequency and violence of such exceptional climate events, we are worried for our future and the future of our sons.

Yes, some commentators pointed correctly out that this kind of events – as exceptional as they are – already happened in the past, but everybody agrees that global aggregated data on temperature rise are unprecedented, at least as far as we humans can record.

And no events like natural disasters make us feel more powerless, just victims or scared observers.

Still, an attempt has been done – if not to restore the previous climate conditions – at least to slow down this crazy growth of temperature by limiting the impact of our species on the Earth’s ecosystems, to make it finally sustainable. This is the Paris Agreement on climate change, adopted by consensus on 12 December 2015 by 196 delegations, signed by 177 states and already ratified by 17 of them.

Unfortunately, as ambitious as it is, the Paris Agreement is not enough.

In the text, which is the result of the twenty-first meeting of the Parties (COP21) of United Nations Framework Convention on Climate Change (UNFCC), the member states “…Acknowledging that climate change is a common concern of humankind”, commit to hold “ the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 °C”.

The goal, so, it is not a correction of the current situation, but just the effort to stop further worsening.

While the convention offers some interesting guidelines to help to reach the goal –subsidiarity, transparency, responsibility – unfortunately it does not provide any real enforcement mechanism nor sanctions in case of infringement. The respect of so important commitments depends solely on the good will of the signatories and on the peer- review mechanism every 5 years.

We know that this isn’t enough, but how could we – the citizens – do something about that?

Well, actually, we can do something.

Through an initiative called “citizens’ climate engagement network” we can all do something.

And I have to thank Joseph Robertson, global strategy director at Citizens’ Climate Lobby for starting this wonderful lab for the empowerment of citizens across the world.

He was right when he wrote to me some days ago: “supranational democracy is underway!”

CCEN could be defined as a new global framework to support and expand direct citizens’ and stakeholders’ engagement in the intergovernmental process, in the surveillance over the States and the way they keep their commitments, in promoting new ideas and ways to stop climate change.

In practice, anybody can host a local working session, to contribute local insights and experiences to the global climate policy process. A toolkit for local sessions is on-line, ready to use. A platform will provide exchanges of views inside this community of engaged citizens. Finally, an Advisory Coalition meets once a month to share insights, think through challenges to meeting the mission of the CCEN, which is to ensure any voice from anywhere with an idea worth sharing can be heard in the global conversation.

The governance is completed by a secretariat and a global team of local networks of leaders, stakeholders and collaborators. The mission is to build a global base of local knowledge, relating to the Paris Agreement, and to bring all the local insight into the COP22 negotiations, making all voices heard. So increasing the legitimacy and the accountability of and the inclusion into the Paris Convention framework.

Representatives from several UN agencies and dedicated NGOs joined the advisory coalition in their personal capacity, and I’m very glad to be part of it. And the UNFCCC secretariat hosted the initiative in its newsroom. It’s getting big!

What is most relevant in this bottom-up exercise, we learned the lesson that organized citizens may take a stance for global goals, so filling the gaps of global governance. The CCEN is a precious lab. It shows how active global citizenship is possible, as a path towards a more democratic world.

The effort behind this accomplishment could be replicated for other goals, empowering communities of committed people to work together as active global citizens: I think of associations and NGOs promoting human rights, fighting poverty, claiming for women and children’s rights. And these are just examples.

If there is a lesson we can learn from the climate change challenge, it is this sense of belonging to the human family, sharing a “common concern” as humankind.

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