Improving the Effectiveness of International Climate Change Governance

Improving the Effectiveness of International Climate Change Governance John Drexhage Director, Climate Change & Energy, IISD UNFCC Side Event June 4, 2010

Climate Change Governance • Governance – “the sum of organizations, policy instruments, financing mechanisms, rules, procedures and norms that regulate the processes” of climate change (Najam, Papa and Taiyab, 2006) • Governance involves formal and informal mechanisms, processes and interactions among nations, states/provinces/cities, intergovernmental and nongovernmental organizations, the private sector, networks of specialists.

Climate Change Governance - Actors • Several actors at multilateral level – UNFCCC, other UN bodies, Bretton Woods Institutions, regional development banks, multilateral processes (e. g. , G 8, G 20, MEF), multilateral agreements (e. g. , APP, CSLF, M 2 M). • Increasing involvement of other levels – states/provinces, cities, corporations, private investors, voluntary offset schemes. • Interactions with other international regimes – e. g. , other MEAs, WTO. • Core actor-the driver-is the nation state.

Climate Change Mechanisms and Funds UNFCCC • Existing: CDM, JI, International Emissions Trading; GEF Adaptation Fund; SCCF and LDCF. • New: Copenhagen Accord includes REDD-plus mechanism, Technology Mechanism, Copenhagen Green Climate Fund, High Level Panel for financing, and need for registry of NAMAs. Outside the UNFCCC • e. g. MDBs, UN-REDD, UN High Level Panel on Financing, FCPF • WCI, RGGI, MWGA, EU ETS, EC, Bilateral initiatives • Private Sector Mechanisms: EG, VCS • Other Forums for Discussion: Petersburg Process, MEF, G 8/20, World People’s Conference

Critical Issues in Climate Change Governance • A significant flip is in playt for the UNFCCC; from a top-down approach (Kyoto) to a bottom-up approach. e. g. , Copenhagen Accord emphasizes bottom-up, flexible commitments. • International consequences for non-compliance. • Intended to meet the needs of a diverse group of countries, but what is the price for the environmental and legal integrity of the international agreement? • Implications for: • Rules and regulations for reporting of GHG emissions and scope of reductions • Rules for offsets (international and domestic) • Rules for sinks • MRV • Enhancing cooperation and coordination among the several institutions and bodies. • Creating the linkages with other policy spheres.

Negotiating Forums • Do too many problems beset the UNFCCC? • Too many countries • Too many stakeholders • Too many issues… • Too many AGENDAS… • Alternatives? • Petersburg Process • Would People’s Conference? • Major Economies Forum? • Regional Initiatives?

Critical Issues in Climate Change Governance (cont’d) • Financing is at the heart of the negotiations. • Relationship of traditional funding and the private sector: how to maximize/leverage optimum funding. • Climate change governance is state-centric; yet the private sector and civil society play an increasingly important role in policy making and implementation. • Private sector is expected to channel large amounts of financing and investment if climate change efforts are to be successful.

Financing • How should funds be managed and accounted for under the UNFCCC? • What should be left to other processes? • What decision-making/governance models are needed for both the raising of funds and their distribution and use? • How to expand the limited space for non-national government actors (e. g. , private sector, cities/states, NGOs)? • How can market-based instruments best be designed? • How do we account for the strong linkages between climate change and traditional development activities?

Financing Issues • Green Climate Fund • Separate Entity • How many Boards • Role and Profile of Board(s) • Determination of financing: where does development end and climate change begin? • Energy or mitigation? • Adaptation or natural resource management

The Shift to a Bottom-up Climate Regime • What are the advantages and disadvantages of the shift to a bottom-up regime? • How do we create incentives for broad participation in GHG mitigation? • How do we MRV action; connect commitments to actions? • What is the role of the UNFCCC?

Thank You John Drexhage Director, Climate Change and Energy jdrexhage@iisd. ca