Norway and Mexico launched a joint model for climate funding at the negotiations in Copenhagen. The model will establish a Green Fund for financing of climate actions in developing countries. Contributions to the Green Fund should come both from public budgets and from auctioning of allowances. The size of the fund is likely to reach around USD 30-40 billion by 2020.
“To achieve an ambitious outcome in Copenhagen, it is crucial that we reach an agreement on financing climate actions in developing countries. We hope that through our joint proposal we can help develop a funding model everyone can endorse”, Mexico’s President Felipe Calderón and Norway’s Prime Minister Stoltenberg say.
The resources for funding climate actions in developing countries are inadequate. Both Norway and Mexico have at an earlier stage in the ongoing negotiations tabled proposals that can give increased predictable funding for climate actions in developing countries. The new model combines these proposals.
Norway’s proposal is a model where a certain percentage of the total UN-allowances should be set aside for international auctioning to finance climate actions in developing countries.
Mexico has proposed to establish a Green Fund that draws funding based on each countries emissions, GDP and population. The joint model uses both sources of income.
“In order to raise an adequate amount we will combine complementary sources of financing. This money should both finance adaption and mitigation efforts in developing countries. Financing should be based on results,” Mexico’s President Felipe Calderón and Norway’s Prime Minister Stoltenberg say.