Where is the money?

They say that money makes the whole world go round. Certainly so, since governments from all over the world have congregated to come with one of the specific mandates being to table an establishment of finance that would help countries back home to fund combat and adapt to adverse impacts of climate change and to assist them to reduce the emissions from green house gases like CO2.

At Copenhagen last year countries pledged to mobilize 100 billion dollars per year for the long term finance needs of these countries and for more immediate needs 30 Billion dollars were pledged for what is called Fast track finance.

For the past week we have heard that negotiations had progressed till the extent that a decision on the establishment for a fund for the 100 billion to flow would be successfully established. But as we moved through the week it was like the money just flew out of our hands , literally.

First our country negotiators tell us that there is actually very less money on the table for fast start finance, that is in the order of 5 billion which has mostly come in for forestry initiatives.

Two days later you have a draft text in the drafting group which links the World Bank and gives it an integral role in climate finance as a TRUSTEE of the new fund. That is not good news and you can find out why here.

And day before yesterday you hear Jai Ram Ramesh at the press briefing for the BASIC grouping of countries comprising of South Africa, Brazil, India and China to highlight that fast start finance HAS to come through for any progress at Cancun. They highlighted that the fast start finance will only be for Africa, small island states and the least developed countries since they are more vulnerable.

And today is seems like there is it Not Fast No track and no finance. Yesterday night in the drafting group on finance there was a lot of friction. The friction led to the G77 group of over 100 countries to call for a break to a conduct a coordination meeting of their own. Apparently after which they just left , leaving the finance discussions stalled.

Even more so , Australia might announce an embargo on finance. Amidst this chaos and confusion where can they find compromise.The friction was on the governance and architectural issues of the fund proposed, wh0 will handle the fund? what representation will there be on the board? Where and how will the money flow and who will it go to?

When I asked my Lead Negotiator , Vijai Sharma , at first he was rattled by the question but then he told me , they recovened and the friction was pacified. He also said that the “statement” at Cancun will come through, either by tonight or tomorrow morning.

I was left with a shocking amount of optimism for one of the last days of the conference. Hope this stays and what he was saying comes true.