High-level Ministerial Dialogue on Climate Finance:

Decisions on Pre-2020 Finance Needed at COP20!

The current gap in climate finance is alarming. Developing countries are concerned about the lack of clarity on
the support they can expect over the coming years, in particular provision of public finance. While the pledges
to the GCF are welcome, developing countries are right to demand that rich countries demonstrate that they
have a plan to meet the $100bn goal before they sign a new agreement in Paris next year.
GLOBAL ROADMAP TO MEET $100 BILLION BY 2020
Agreeing to craft a global roadmap for scaling-up climate finance towards meeting the 2020 goal is essential in
Peru. Ministers must make it clear that a global roadmap must be part of the Paris package.
A COP decision on pre-2020 finance should, inter alia, include the following elements:
Decide that work will be undertaken during 2015 to craft a global climate finance roadmap towards the
$100 billion goal, for adoption at COP21. The roadmap should include information on:
o The scaling up of public finance through to 2020;
o Types and instruments of finance to be deployed; and
o Channels, sources and distribution between adaptation and mitigation.
Decide on a future target level of annual contributions to the GCF to be reached by 2020. Ensure that the
current scale of contributions to the GCF acts as a floor, and that contributions continue to be scaled up. A
well-resourced GCF will also contribute a certain level of predictability.
GUIDING QUESTIONS FOR DISCUSSION DURING THE HLMD:
1. To what extent are the Conventions information tools and institutional arrangements for climate finance
working together to ensure the predictability and scaling-up of international climate funding?
There is nothing predictable about international climate funding (except for the fact that it is
unpredictable). Developing countries have made plans and strategies with the promise of international
financial support, but only a tiny fraction of what is needed is flowing. Funding is projectized and there
is no continuity of resource flows that would lead to enhanced predictability needed for planning action
to meet the long term climate challenge.
Current tools and arrangements are not providing any predictability nor do they ensure scaling-up of
climate finance. The necessary predictability depends on the extent to which developed countries
provide clarity on future climate finance through to 2020 and beyond. Hence, Lima should decide to
craft a 2020 finance roadmap providing details how the $100bn will be met, as outlined above.
2. How can these strengthen in-country decision-making processes and mobilize further funding and
investments while encouraging the engagement of non-state actors?
Any efforts to strengthen in-country processes will depend to a large extent on capacity, including
institutional capacity. The direct access model of the Adaptation Fund (and soon the Green Climate
Fund) is an approach that helps create this capacity and hence should be further strengthened,
moving as much decision-making on climate finance as possible to the country level.
Developing countries are already investing their own scarce resources in addressing climate change.
In countries that have begun to track climate expenditures evidence shows that domestic spending
outstrips international support.
Providing the resources countries actually need to implement their national plans/strategies is a first
step towards creating the enabling environment for other non-state actors to follow suit
3. How can Parties ensure that articulating the current arrangements into a robust institutional framework and
an effective information system provide the necessary transparency and predictability in the provision and
used of climate finance towards a post 2020 world?

Creating the much-needed predictability in the provision of climate finance is key but it requires that
developed countries provide the information necessary hence ministers in Lima should agree to
craft a 2020 finance roadmap providing details how the $100bn will be met, as outlined above.
Adopt a robust and honest Measuring, Reporting and Verification (MRV) system for climate finance
agree on what counts (common definition) and how to account for it, implement an exclusion list, stop
double counting, ensure that climate finance is new and additional and allow for recipient country
verifications (not just trusting contributors word).