Elaborating a coherent and adequate financial structure for a post Kyoto framework

Abstract

The present paper reviews the international climate change financial framework and aims at providing insights on its future post-2012 development. This study offers an overview of the good attributes and distortions of the current regime, while investigating the work currently done by many countries and international organisation, in proposing unique and original financial schemes for a post-Kyoto agreement. The objective is to define potential strengths and shortcomings of the current (or projected) financial regime, and put this in relation with the creation of an improved new financing scheme, that could transfer sufficient resources from North to South in an efficient, transparent and participatory way. Indeed, international climate change negotiations are now working in this direction, and the regular submissions from Parties and civil society to the UNFCCC's AWG-LCA witness the desire of governments and organisations to achieve an innovative climate change agreement that could overcome existing weaknesses in the global financial structure, while providing nations with suitable tools to handle the adverse consequences of climatic modifications. The paper will additionally focus on the role of CDM and credit-based mechanisms in a new future financial framework, in consideration of needed improvements in the current international credit system and country visions and AWG-LCA submissions.