Climate Finance Week in Lima: Following the Money

In the last intersessional climate meeting that took place in Bonn, Germany, there was a workshop between negotiators and observers regarding one of the main topics of the climate finance agenda: long-term financing, derived from the Copenhagen agreement that established the allocation of $ 100 billion by 2020 (COP 15).

During the workshop there were two major areas of discussion: the “updated strategies and approaches for scale-up climate finance from 2014-2020” and the "cooperation on enhanced enabling environments, support needs of developing countries and support for readiness activities” (Long term Finance Programme)

The "informal" discussions that took place in these sessions allowed the participants to openly discuss important topics regarding the climate finance agenda. The results of the discussion (facilitated by the negotiators from different countries, like Mexico and Peru from Latin America), will be presented by the co-chairs after the celebration of the COP20.

Nevertheless, it is important to capitalize the discussion in order to encourage substantive discussions that allow countries to achieve accurate agreements on this issue. Three key issues that emerged from this workshop were: the need to harmonize language to determine what climate finance is from the point of view of developing and developed countries. This discussion goes beyond financing sustainable development (development aid), which is very much related to climate finance, in order to include additional resources, since climate change adds and intensifies problems that need additional resources to be tackled.

On the other hand, countries must be able to establish systems for monitoring, reporting and verifying to ensure full accountancy of funds, which will assess the impact of climate finance. It is necessary to ensure that climate finance is having an impact on the reduction of emissions and vulnerability of populations and territories exposed.

Another key issue is the inter-relationship between donors and recipients. One key aspect raised in the workshop was the establishment of a system based on the triple "C" - coordination, collaboration, communication- among donor countries including an assessment of the needs of developing countries, not based on the interests of developed countries. Secondly, recipient countries must have a discussion among institutions to define the priorities of countries at national and subnational levels. This will give more clarity to the parties, avoiding duplication of projects or funds and dispersion of the already scarce resources.

These issues reflected in the debate require comprehensive and deeper discussions. This is why the Peruvian government supported by various organizations decided to start a new dialogue to discuss questions related to the integration of key aspects of the agreement to be signed in 2015, with a first draft ready by the COP 20.

The so-called Climate Finance Week in Lima will be a suitable session for encouraging countries to capitalize the Green Climate Fund and show a political will, as well as to discuss key issues such as the enabling environment processes and the transparency and accountability mechanisms that should be part of the process of climate finance in all countries.

The private sector, government and civil society will have to take responsibility for generating a productive dialogue that provides key elements for the creation of concrete proposals. We all know what we need, and the spirit which needs to prevail in this space is to build substantive elements for the agreement in 2015, rather than create another interesting but non-productive workshop.

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