Workshop 6.5

Workshop 6.5 Financing for Climate Change: An opportunity for improved global governance, or the next resource curse?

Stream 3 Climate Change

Coordinators: Toby Quantrill, Head of International Governance, WWF-UK
Robert Barrington, Director of External Affairs, Transparency International (UK)
Date: Sunday 11:00 to 13:00
Location: Nikos Skalkotas Hall

To solve the challenges posed by climate change, we need to understand and address the deeper issues of unsustainable consumption and inequality in society and the drivers of these problems. Climate change both contributes to, and is exacerbated by poor governance. In recent years we have seen increasing understanding of, and commitment to, the need for significant investment of resources into climate mitigation and adaptation activities. The nature of this financing, in terms of quantity, allocation, donors and recipients is already under intense negotiation. A more detailed picture should emerge through the UNFCCC negotiations leading to the post 2012 Kyoto agreement.
But already climate change related markets (essentially for carbon trading) and climate relating financing are flourishing and projected to grow. The experience of Overseas Development Aid demonstrates that poor governance (whether real or perceived), at all levels, can significantly undermine public confidence in, and support for, large scale flows of international funding. Effective markets need trust and transparency to encourage trading and reduce volatility and risk premiums. While there are potentially great benefits to certain countries from climate relating markets and financing, there are also major corruption risks that could undermine these public and private initiatives. The governance structures now
being put in place to manage climate funding are likely to have a significant influence over the way that future structures will operate, post 2012.
This workshop therefore seeks to explore where, how and on what scale corruption may occur and howthis will impact negatively on mitigation/adaptation efforts. It will also aim to identify the extent to which the corruption issue in the context of climate change has dimensions that are different from the ‘traditional' aid and corruption issues The workshop will also seek to raise awareness of climate change related issues within the anti-corruption community, and equally, seek to develop increasing awareness within the climate change community of the specific aspects of corruption which could undermine current efforts.

Moderator: David Nussbaum, WWF-UK
Rapporteur: Toby Quantrill, WWF-UK

Chandrashekhar Krishnan, Executive Director, Transparency International (UK)
Shane Tomlinson, Programme Leader: Systems for Change, E3G
Oliver Tickell, Independent Author and Journalist
Peter Zamen, Partner, Clifford Chance