Climate change financing -- the role of development cooperation

December 15, 2009

"Development cooperation can play an important role in ensuring that the poorest countries will benefit from climate change funding," says Olof Drakenberg, policy analyst at the Environmental Economics Unit at the School of Business, Economics and Law, University of Gothenburg, Sweden.

Available for addressing climate change and other environmental issues is but a fraction of what is needed. Swedish prime minister Fredrik Reinfeldt promised this week that Sweden will contribute about 370 million USD annually for adaptation and emission reductions in . With its move, the Swedish government seeks to increase the pressure on other EU countries to provide money.

"New and additional money is needed. But it's not just about the amount to be negotiated in , or from where the money comes from. It's also about who will get the money and under what conditions" says Olof Drakenberg. Together with his colleague Emelie César he has written the report, Old, New and Future Funding for Environment and Climate Change - the Role of Development Cooperation, which is a background study commissioned by Sida - Swedish International Development Cooperation Agency - that feeds into the ongoing work on Swedish government policy on environment and climate change

Weak rule of law, lack of transparency and low administrative capacity risk hamper climate funding to poor countries. The experience of climate finance coming through the Clean Development Mechanisms is illustrative. The least developed countries have attracted about 5 per cent of climate finance with the large majority ending up in China and India.

"The most important role for development cooperation in relation to environment finance in general and climate change finance specifically is to reduce the bottlenecks that inhibit financial flows and effective delivery, so that even the poorest countries benefit from funds. In practice, support for strengthening institutional capacity, increase transparency and combat corruption becomes even more important. In addition, Sida and other donors should prevent the proliferation of funds and conditions that increase transaction costs and reduces national ownership.

Explore further: Yale report cites emerging carbon finance market

More information: The report "Old, New and Future Funding for Environment and Climate Change - The Role of Development Cooperation" can be downloaded at

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5 / 5 (4) Dec 15, 2009
In practice, support for strengthening institutional capacity, increase transparency and combat corruption becomes even more important.

Here is a glimmer of honesty in this polished turd.

Never mind the billions in food and aid you already have and still do hand us to try and drag our corrupt governments out of the dirt, and never mind that it never does what it's supposed to do, now you must give us money under a different pretense which we can more easily misappropriate.

Fellow Citizens of the US, if you feel as I do: that international climate change based aid and legislation will be bad for Our economy while serving no measurable purpose, please be sure to take just a couple minutes to send an email or place a call to your law-makers to let them know the People cannot afford this at this time.

If you're environmentally minded, back the green movement with change that you know makes a difference, act locally. We are staring into the face of an economic coup de grace, here.
4.8 / 5 (4) Dec 15, 2009
This article is a little vague on what is being proposed. I've read a bit of the study, and "democratic governance, improved public financial management, decentralization reform and private sector development" seem to be the key words. Basically, you can't pump billions of carbon-dollars into dictatorships.

The reasoning is quite sound and, for what it's worth, if there's socialism to be implemented, the Swedish are the most appropriate. Still, there remains the issue of what gives another country the right to interfere in another's affairs.

Sure, most will welcome the help, but what about those really stubborn tyrants? How will they be swayed to democracy and eco-friendliness? Well, there's been a very recent example which showed how countries can be "liberated".
5 / 5 (2) Dec 15, 2009
A license for The IMF to legally steal even more from the world!
not rated yet Dec 16, 2009
People of the first world its now time that we, the know it all socialists, take your money and life energy and give it to the dictators and corrupt people in the world so that we socialists can equalize the world. We want an equal world, were all live under corrupt dictators, and the majority of the people are poor and live in filth.

Seriously is this a jobs creation gimick? We will need to hire people to determine who pays, and to distibute the money, to make sure the money goes to where it should, to investigate why the money went to dictators and other corrupt people, to investigate the investigators, etc....
not rated yet Dec 16, 2009
Europe has already given millions, if not billions, to developing countries for carbon mitigation.

Where has it all gone? Why haven't they performed audits to see that the money is spent for it's designated purpose instead of lining the pockets of corrupt officials, companies, and organizations?
not rated yet Dec 18, 2009

Obama has officially drank the kool-aid.

It's the People who have to swallow though. Unless the People let their lawmakers know We can't afford it, America is going to purposefully be introducing yet another permanent drain on it's economy with no measurable effect.

This is the wrong action at the wrong time.

This is surreal. Our Nation marches towards financial and bureaucratic ruin, will the People care enough to raise Their Voice?

It's enough to give one second thoughts about bringing children into such a bass ackwards world.

What a mess.
not rated yet Dec 18, 2009
A brilliant remark by president Hugo Chavez: "If the climate was a bank, it would have been saved already".

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