Climate Finance: Too Much on Detail, Too Little on the Big Picture?

Abstract

At the climate conference in Katowice, Poland, in December 2018 (COP 24), Parties to the Paris Agreement intend to adopt a comprehensive set of decisions that provide details on its implementation, based on the so-called Paris Agreement Work Programme (PAWP). We outline some of the many finance issues to be addressed COP 24 and look more in-depth at two particular issues: the overarching goal regarding finance flows in Article 2(1)(c); and transparency of support. Article 2(1)(c) is a major innovation because it establishes addressing financial flows as one of the three goals of the Paris Agreement. At the same time it is an essential means to achieve the mitigation and adaptation goals. Article 2(1)(c) has a transformational objective with huge potential implications in the real world. Despite its overarching importance, the current negotiations do not address Article 2(1)(c) in the holistic manner it requires. Transparency of support relates to the delivery of information and data on financial and other support within the UNFCCC. The Paris Agreement requires Parties to ‘build on and enhance’ the existing transparency arrangements. The current negotiations are focused mainly on the financial support provided by developed countries, with less time dedicated towards support received and other parts of the bigger picture. If it was more balanced and addressed all aspects of transparency of support, the real-world impact of the transparency framework could be considerable.