Equity and Justice Working Group equitybd

1. An Appraisal of UK-Bangladesh Climate Conference Management of Climate Fund and Role of the WB Md Shamsuddoha Equity and Justice Working Group www.equitybd.org

2. Background Information SCENARIO: Mad Climate REASONS: GHG Emissions RESPONSIBLE ? Humankind Rich Countries Vulnerable ? Poor Countries, Bangladesh

3. Background Information Facing Climate Crisis OPTION: Establishment of IPCC in 1998 Establishment of UNFCCC in 1992 HOPE UNFCCC Kyoto Protocol; that asked binding carbon emissions reduction by an average of about 5 % from 1990 level by the period 2008-2012 SHOCK Less Progress of Kyoto Protocol Political Un-willingness

4. CoP 13 of UNFCCC and Bali Action Plan HOPE ...... a global political commitment for immediate reduction of carbon emission SCIENTISTS Says...(IPCC Report) ....... we have to keep temperature rise below 2 C, ----- global emissions need to peak by 2015 and then be reduced by at least 50 % by 2050 ( from 1990 levels). This means rich countries cutting their emissions by at least 30 % by 2020 and 80 % by 2050.

5. Major Concern of CoP 13 Emission Reduction ! Emission Balance Emission Trading, Carbon Store Clean Dev. Mechanism New Energy Sources Technology Transfer Adaptation Fund

6. Agreed Structure of Adaptation Fund at UNFCCC Bali meeting agreed for separate AF Board, independent from the GEF The organization set-up of the AF also different from that of other UN funds; Vulnerable countries will get direct access to that fund without having involvement of the World Bank, UNDP etc. !!!: This news does not seem to have reached 1818 H Street in Washington, the headquarters of both the WB and GEF, even not been considered by the G8 leaders.

7. Adaptation Financing: WB Strategy The G8 Action Plan for Climate Change supported the launch of new CIFs by the World Bank This is accumulating ‘new and additional financial resources’ reflected in the sprit of UNFCCC article 4.7 Also reflected in the Bali Road Map; ‘combining measurable, reportable, &verifiable mitigation actions by developing countries with measurable, reportable & verifiable financing and technology transfer from developed Context: CDM and Nairobi Work Programme on impacts, vulnerability and adaptation on climate change

8. Architecture of CIFs The targeted CIFs, roughly US$7-12 billion, coming from the countries the UK, the US and Japan Financing will be in the form of credit enhancement and risk management tools, such as loans, grants, equity stakes, guarantees and other support Mobilized through donor contributions to the respective trust funds, implementing in collaboration with the RDBs. Context : UK’s Environ Transformation Fund , US’s Clean Tech Fund and Japan’s Cool Earth-50 initiative

9. Climate Financing In Bangladesh: Contemporary Discourse Bangladesh-UK conference on climate change on 25 March 2008 in Bangladesh Proposal to establish a Multi Donor Trust Fund 2nd Bangladesh-UK conference on climate adaptation financing for Bangladesh on 25 March 2008 in London Submission of Climate Change Strategy and Action Plan For Bangladesh to the UK Govt

10. MDTF: Disparity with UNFCCC Adaptation Fund MDTF is a parallel structure of mobilization and disbursement of climate finance under UNFCCC Will bypass existing multilateral negotiations of establishing adaptation fund under the UNFCCC. This ‘new and additional financial resources’ would divert of any existing or likely resources, Substantial part of the MDTF will be counted as ODA by donor countries, especially of the G8

11. MDTF: Disparity with UNFCCC Adaptation Fund There will be no additionality in overall development financing to the developing countries. This goes against existing multilateral commitments under the UNFCCC which states that .........developed countries should provide new and additional financial resources to meet the agreed full costs incurred by the developing countries in meeting their climate change commitments......

12. MTDF : Proposed Fund 75 million pounds from the UK government for 5 years 45 million dollars from Bangladesh Govt in 2008-2009

13. Management of MDTF Each investment fund would have a separate governing committee called the ‘Trust Fund Committee’ made up of contributors to Fund. Each Trust Fund Committee will be responsible for overall governance, strategic decisions and resource allocation of each trust fund. Context : To get access to CIFs Countries have to show progress in the implementation of PRS and other development planning

14. MDTF and World Bank Meantime WB showed interest to manage the MDTF and the G8 countries supported the involvement of WB This is violation of the multilateral negotiations of establishing adaptation fund under the UNFCCC. This fund will be operationalized forming a Board of Trust; will be composed with the contributors In the London conference Finance Adviser of the govt. of Bangladesh also supported involvement of WB

15. WB’s Involvement in CCDouble Standard & Hypocritical IFI’s, major investment is in energy sector; exploration of fossil fuel & exporting to the Northern countries From 1992 Earth Summit to 2004, the WB Group approved USD 11 b in 128 fossil fuel extraction projects in 45 countries- which contribute over 43 b tons of carbon Now IFIs are trying to ‘mask their dirty image’ through financing in CDM and Renewables; which is 17 times less than fossil fuel investment

16. NO to WB in Climate Financing Globally the IFIs ; the IMF, the WB, ADB, other regional banks, northern governments etc. desperately engaged in fossil fuel exploration & creating huge environmental loss, economic loss and corruption.Example NIKO, Occidental gas-fields blow-out in Bangladesh ALL THESE SHOULD PAY BACK

17. Thank You All www.equitybd.org