A dynamic climate finance allocation mechanism reflecting the Paris Agreement
Reaching the goal of the Paris Agreement requires substantial investment. The developed country parties have agreed to provide USD$100 billion in climate finance annually from 2020 to 2025. Ongoing negotiations on post-2025 commitments are likely to exceed that sum and include a broader scope of par...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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IOP Publishing
2019-01-01
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| Series: | Environmental Research Letters |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/1748-9326/ab443b |
| _version_ | 1797747967377014784 |
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| author | Florian Egli Anna Stünzi |
| author_facet | Florian Egli Anna Stünzi |
| author_sort | Florian Egli |
| collection | DOAJ |
| description | Reaching the goal of the Paris Agreement requires substantial investment. The developed country parties have agreed to provide USD$100 billion in climate finance annually from 2020 to 2025. Ongoing negotiations on post-2025 commitments are likely to exceed that sum and include a broader scope of parties. However, there is no guidance regarding the allocation of contributions. Here, we develop a dynamic mechanism based on two conventional pillars of a burden sharing mechanism: emission responsibility and ability to pay. The mechanism adds dynamic components that reflect the Paris principle to ‘ratchet-up’ ambition; it rewards countries with ambitious mitigation targets and relieves countries with a high degree of climate vulnerability. Including developed country parties only, we find that ten countries should bear 85% of climate finance contributions (65% if all parties to the Paris Agreement are included). In both scopes, increasing climate ambition is rewarded. If the EU increased its emission reduction target from 40% to 55% by 2030, member states could reduce their climate finance contributions by up to 3.3%. The proposed mechanism allows for an inclusion of sub-, supra- or non-state actors. For example, we find a contribution of USD$3.3 billion annually for conventionally excluded emissions from international aviation and shipping. |
| first_indexed | 2024-03-12T15:58:12Z |
| format | Article |
| id | doaj.art-f991be7ec97448b78499cc84fcf70638 |
| institution | Directory Open Access Journal |
| issn | 1748-9326 |
| language | English |
| last_indexed | 2024-03-12T15:58:12Z |
| publishDate | 2019-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Environmental Research Letters |
| spelling | doaj.art-f991be7ec97448b78499cc84fcf706382023-08-09T14:46:33ZengIOP PublishingEnvironmental Research Letters1748-93262019-01-01141111402410.1088/1748-9326/ab443bA dynamic climate finance allocation mechanism reflecting the Paris AgreementFlorian Egli0https://orcid.org/0000-0001-8617-5175Anna Stünzi1https://orcid.org/0000-0002-5854-3126Energy Politics Group, ETH Zurich, Haldeneggsteig 4, 8092 Zürich, SwitzerlandChair of Economics/Resource Economics, ETH Zurich, Zürichbergstrasse 18, 8092 Zürich, SwitzerlandReaching the goal of the Paris Agreement requires substantial investment. The developed country parties have agreed to provide USD$100 billion in climate finance annually from 2020 to 2025. Ongoing negotiations on post-2025 commitments are likely to exceed that sum and include a broader scope of parties. However, there is no guidance regarding the allocation of contributions. Here, we develop a dynamic mechanism based on two conventional pillars of a burden sharing mechanism: emission responsibility and ability to pay. The mechanism adds dynamic components that reflect the Paris principle to ‘ratchet-up’ ambition; it rewards countries with ambitious mitigation targets and relieves countries with a high degree of climate vulnerability. Including developed country parties only, we find that ten countries should bear 85% of climate finance contributions (65% if all parties to the Paris Agreement are included). In both scopes, increasing climate ambition is rewarded. If the EU increased its emission reduction target from 40% to 55% by 2030, member states could reduce their climate finance contributions by up to 3.3%. The proposed mechanism allows for an inclusion of sub-, supra- or non-state actors. For example, we find a contribution of USD$3.3 billion annually for conventionally excluded emissions from international aviation and shipping.https://doi.org/10.1088/1748-9326/ab443bclimate financeclimate policyequity principles |
| spellingShingle | Florian Egli Anna Stünzi A dynamic climate finance allocation mechanism reflecting the Paris Agreement Environmental Research Letters climate finance climate policy equity principles |
| title | A dynamic climate finance allocation mechanism reflecting the Paris Agreement |
| title_full | A dynamic climate finance allocation mechanism reflecting the Paris Agreement |
| title_fullStr | A dynamic climate finance allocation mechanism reflecting the Paris Agreement |
| title_full_unstemmed | A dynamic climate finance allocation mechanism reflecting the Paris Agreement |
| title_short | A dynamic climate finance allocation mechanism reflecting the Paris Agreement |
| title_sort | dynamic climate finance allocation mechanism reflecting the paris agreement |
| topic | climate finance climate policy equity principles |
| url | https://doi.org/10.1088/1748-9326/ab443b |
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