Canada Announces Share of Climate Financing
Posted on 04. Oct, 2010 by joannadafoe in Canada
In Bonn, this tracker eagerly waits Canada's financing announcement
Fast track financing is one of the few things from Copenhagen that gave many of us a sense of hope. The announcement, made among wealthy nations, promised to deliver $30 billion to developing countries by 2010-2012. In Bonn I excitedly buzzed about the prospects for Canada to contribute to this financing and, finally this weekend, Jim Prentice announced Canada’s share: $400 million from Canada to go towards adaptation, clean energy, and forests and agriculture. This pledge, according to the Canadian Press, is the largest Canada has ever spent on international climate efforts. The wonks among us can read the full Government document here.
Jim Prentice expressed hopes this news will cast off the negative perceptions of Canada at the UNFCCC. According to Minister Prentice, “we fall pretty to some myths that do not give an accurate picture.”
Canada’s Fair Share: Do the numbers add?
Like many-a-Government memo, it is hard to tell what this stated policy really means. $400 million sounds great - but what about the fine print? First the good news - $20 million of this money will go towards the Least Developed Countries Fund, a UN supervised body.
But now some concerns.
Summary of Canada's finance contribution, courtesy of Canadian Press
First, this news is inconsistent with how the Government treats climate science domestically. On one hand, we are allocating $10 million to go towards improving African climate research. On the other hand, we are canceling federal funding for science research programs and prohibiting scientists from speaking to reporters. While funding for African climate research is essential, it seems backward to undermine our national efforts simultaneously.
A second concern is the allocation of $293 million (three quarters of Canada’s total) towards the International Financial Corporation. The IFC, according to its website, is “the private sector arm of the World Bank Group (and) shares its mission.” Giving this money to the IFC can only serve to fuel the trust-deficit between the Global North and Global South. Everyone seems to agree coming out of Copenhagen that the essential task now is to rebuild trust between North and South. Negotiators need to develop a sense of good-faith, transparency, and accountability among one another in order to gather momentum for Cancun. Does giving our money to the IFC deflate the efforts to build trust?
... reading the fine-print.
As summarized by Ilana Solomon, climate finance advisor at ActionAid, World Bank funds “are not accountable to the UNFCCC and are not likely going to serve to build the trust that we need to see in the negotiations moving forward.”
Fast track financing is important and essential for Canada, but the jury is still out if this funding will be welcomed or questioned by our partners in the South.
Sounds like this could be good news! If only we could get the US on board…