GREEN FUND (WORLD CLIMATE CHANGE FUND)

1. GREEN FUND (WORLD CLIMATE CHANGE FUND)

2. CURRENT SITUATION AND TRENDS Real and projected CO2 emissions and concentrations, 1958-2050 Stabilization of CO2 at 450 ppm CO2 concentration (ppm) Concentration CO2 emissions (GtCO2/year) Emissions Reduction of CO2 emissions by half below 2000 levels United Nations Framework Convention on Climate Change Kyoto Protocol YEAR CO2 historical concentrations CO2 historical emissions by fossil fuels burning Desirable trend Current trend Current international instruments (United Nations Framework Convention on Climate Change and the Kyoto Protocol) are insufficient, provided they have not impacted current trends. Objectives by 2050: • To reduce global emissions by 50% • To direct CO2 concentrations towards their stabilization at a safe level • To assure adequate financing for mitigation and adaptation actions

3. MAIN OPPORTUNITIES FOR IMPROVEMENT To increase accessibility to financial and technical resources • Insufficient and scattered resources: There are currently more than 12 funds, any of which is bigger than 5 billion USD annually. The Clean Development Mechanisms, CDM, of the Kyoto Protocol, has channeled less than 4,800 million USD/year. • The International Energy Agency estimates that 45 trillion USD are required from 2008 to 2050, to reduce emissions by 50% from current levels. Larger number of countries participating under equity conditions • 4 countries hold 75% of total CDM resources. • Africa was almost excluded: only 2% of resources from CDM projects. In the case of Latin America, the region has obtained 18% of CDM resources. More practical and functional mechanisms • To demonstrate that a CDM project yields additional reductions implies an average transaction cost of 100 thousand USD and 240 days in average for its approval. To expand the scale of global mitigation • Annual emissions reductions from all registered CDM projects amount 218 million tons of CO2: less than 1% of developing countries emissions. • To integrate more projects from a “Green Agenda”.

4. GUIDELINES OF A NEW PROPOSAL – THE GREEN FUND • Equity among countries. • To develop the criteria of “common but differentiated responsibilities and respective capabilities”, as well as to reinforce multilateralism. • Active participation of all countries. • All countries contribute and benefit from the Fund. • Contributions would be a factor of the following indicators, subject to negotiation and calibration: historic responsibility, emissions, population and gross domestic product. • More opportunities for mitigation and adaptation. • Current mechanisms do not favor actions or projects within the “green agenda”, such as: reforestation, agricultural land management, and forest fire prevention. • Complement of existing mechanisms. • The Green Fund will be complementary and not a substitute of existing funds.

5. GREEN FUND OPERATION SCHEME ¥ € £