Climate change finance

Abstract

Click to increase image sizeClick to decrease image size Notes UNFCCC (2007 Parry, M., Arnell, N., Berry, P., Dodman, D., Fankhauser, S., Hope, C., Kovats, S., Nicholls, R., Satterthwaite, D., Tiffin, R. and Wheeler, T. 2009. Assessing the Costs of Adaptation to Climate Change: A Review of the UNFCCC and Other Recent Estimates, London: Imperial College London. International Institute for Environment and Development and the Grantham Institute for Climate Change [Google Scholar]: 172). UNFCCC (2007 Parry, M., Arnell, N., Berry, P., Dodman, D., Fankhauser, S., Hope, C., Kovats, S., Nicholls, R., Satterthwaite, D., Tiffin, R. and Wheeler, T. 2009. Assessing the Costs of Adaptation to Climate Change: A Review of the UNFCCC and Other Recent Estimates, London: Imperial College London. International Institute for Environment and Development and the Grantham Institute for Climate Change [Google Scholar]: 176). UNFCCC (2010 United Nations. 2010. Report of the Secretary-General's High-level Advisory Group on Climate Change Financing, New York: United Nations. [available at http://www.un.org/wcm/content/site/climatechange/pages/financeadvisorygroup/pid/13300] [Google Scholar], Article 8). UNFCCC (2010 United Nations. 2010. Report of the Secretary-General's High-level Advisory Group on Climate Change Financing, New York: United Nations. [available at http://www.un.org/wcm/content/site/climatechange/pages/financeadvisorygroup/pid/13300] [Google Scholar], Article 8). UNFCCC (2011 UNFCCC. 2007. Investment and Financial Flows to Address Climate Change, Bonn: UNFCCC Secretariat. [Google Scholar], para. 95 and 98). UNFCCC (2011 UNFCCC. 2007. Investment and Financial Flows to Address Climate Change, Bonn: UNFCCC Secretariat. [Google Scholar], para. 102). UNFCCC (2011 UNFCCC. 2007. Investment and Financial Flows to Address Climate Change, Bonn: UNFCCC Secretariat. [Google Scholar], para. 109). Narain et al. (this issue) illustrates this effect for adaptation costs by reporting the gross sum, net sum and X-sum. The X-sum is the net sum within each country but not across countries. See Metz et al. (2007 McGray, H., Hamill, A., Bradley, R., Schipper, E. L. and Parry, J.-O. 2007. Weathering the Storm: Options for Framing Adaptation and Development, Washington, DC: World Resources Institute. [Google Scholar]) for the latest assessment. To illustrate differences in sectoral definitions, food processing may or may not be included in the agriculture sector. The water supply system could be designed to provide the same volume of potable water, for example. However, in a warmer climate more water might be needed for irrigation. Also, equivalent service might be provided using a variety of conservation measures. Thus, equivalent welfare can also be difficult to specify in operational terms. This does not, of course, address other issues such as the use of different discount rates for private and public entities. Metz et al. (2007 McGray, H., Hamill, A., Bradley, R., Schipper, E. L. and Parry, J.-O. 2007. Weathering the Storm: Options for Framing Adaptation and Development, Washington, DC: World Resources Institute. [Google Scholar], Table SPM.4) reports a range of global GDP reduction in 2030 for stabilization at 535–590 ppm CO2e of 0.2–2.5%. Global GDP in 2030 is projected to be of the order of US$50 trillion. So the global costs would be US$100–1,250 billion, of which approximately half would occur in developing countries. UNFCCC (2011 UNFCCC. 2007. Investment and Financial Flows to Address Climate Change, Bonn: UNFCCC Secretariat. [Google Scholar], para. 65). Countries also agreed that developed countries should develop low-carbon development strategies or plans (para. 45). Other market failures include barriers that inhibit the adoption of energy efficiency measures and under-funding of research and development.