Sources of Finance in the International Climate Change Regime
"Public sources first and foremost: the initial $100 billion dollars to capitalise the Green Climate Fund should come from public sources. While developed countries claim there is no money, resources have been found to bail out big banks, subsidise dirty energy and industry, and pay for war. Using traditional and innovative mechanisms – such as taxes, levies and SDRs –governments can raise funds to transfer into the coffers of the global fund. Ultimately mobilising public resources is a matter of political will. The private sector has a role to play in supporting renewable energy, clean companies and sustainable business models, but it must be regulated to uphold climate integrity and social development objectives. Avoid carbon markets: Carbon markets have demonstrably failed to meet the climate finance needs of African countries. Carbon off set mechanisms have not been found to contribute meaningfully to the transfer of clean technologies to Africa or to increase access to renewable energy. While carbon off setting is not designed to reduce GHG emissions (it can, at best, keep them at the level of a cap), it can lead to increasing emissions when credits are earned for spurious projects in the global South but equivalent pollution is still emitted in the global North. The potential to increase global warming is in conflict with the interests of African countries."