IJSRP, Volume 3, Issue 4, April 2013 Edition [ISSN 2250-3153]
Dr. Debesh Bhowmik
International climate finance is the transfer of funds from the North to the South to help enable developing countries adapt to the unavoidable impacts of climate change (i.e. adaptation), reduce greenhouse gas emissions (i.e. mitigation) , and embark on clean energy development paths.
If we are to avoid the dangerous impact of climate change we must limit global mean temperature increase to 20C above pre industrial levels. This means stabilizing atmospheric GHG concentration below 450ppm carbon dioxide equivalent. Emission reductions required for a 450ppm pathway adapted from Mckinsey global GHG abatement cost curve. Failure to cut emissions on this kind of scale would result in serious risks of temperature increases of 3,4,5 deg. C and higher. Scientists tell us that to have a 50-50 chance of holding temperature below 20C global emissions would need to be below 35Gt CO2e by 2030. The 2009 Copenha¬gen Accord pledged funds of $10 billion a year from 2010 to 2012, increasing to $100 billion per year by 2020 to combat climate change in developing countries through mitigation and adaptation. Even assuming ambitious GHG reductions by developed countries, large additional reductions in developing country emissions will be required in order to limit global warming to 2°C. This pathway requires global emissions to peak no later than 2015, and to fall 50% from 1990 levels by 2050, split so that developed nations shoulder the majority of the burden.
For mitigation in developing countries, approximately €55–80bn in financ¬ing from developed countries would likely be required annually in additional funds during the period 2010–2020 (an additional €10–20bn is required annually for adaptation). On the basis of the principle of compensation for incremental costs by developed countries, a total of €65 – 100 billion annually over the 2010 – 2020 period is needed to finance these reductions and meet developing countries adaptation needs. . McKinsey estimates th