–Agendas of meeting still not agreed more than a week into event (see pdf)
–6.4 draft text
By Mathew Carr
Bonn – 12-13 June, 2023 — An envoy at the intersessional climate talks in this German city said Monday countries should agree to proceed with urgency in supplying carbon finance via UN carbon markets.
People in developing countries are already benefiting tremendously from millions of US dollars of finance being provided by nations including Norway, the person said. He wasn’t authorized to speak to reporters.
Projects are making a meaningful contribution to climate protection, yet the forests being protected were hundreds of thousands of hectares rather than the millions of hectares that need the finance, he said. See this in Ethiopia, as one example:
I spoke with another envoy who said the climate talks were struggling to progress because there was too much focus on carbon markets / mitigation and not enough on adaptation.
A third envoy said a decision to delay access to adaptation money held in a trust fund would hurt developing countries’ ability to deal with climate change. There was not enough information available from the UNFCCC on how much is held, the person said.
As of 30 June 2022, cumulative receipts into the Adaptation Fund Trust Fund comprised $211.80 million from the monetization of Certified Emission Reduction credit, $982.00 million from contributions and $41.26 million from investment income earned on the Trust Fund balance. See this website:
That’s $1.2 billion about a year ago
“The Parties to the Paris Agreement decided earlier that, under the mechanism established by Article 6, paragraph 4, of the Paris Agreement (Article 6.4 mechanism), the share of proceeds that is levied to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change to meet the costs of adaptation shall be delivered to the Adaptation Fund. This will comprise:
- A levy of five per cent of Article 6, paragraph 4, emission reduction (A6.4ERs) at issuance;
- A monetary contribution to be set by the Supervisory Body of the Article 6.4 mechanism related to the scale of the Article 6, paragraph 4 activity or to the number of A6.4ERs issued;
- A periodic monetary contribution from the remaining funds received from administrative expenses after the Article 6.4 mechanism becomes self-financing.
CMA 4 noted that the Supervisory Body agreed to deduct three per cent of the issuance fee paid for each request for issuance of Article 6, paragraph 4, emission reductions and collectively transfer them annually to the Adaptation Fund.
With regard to the periodic monetary contribution from the remaining funds, the Supervisory Body shall review annually the state of the remaining funds as a result of the income from fees and the expenditure for operating the Article 6.4 mechanism, and decide on the timing and the amount of funds to be transferred to the Adaptation Fund after setting aside the operational reserve for at least three years.
Furthermore, CMA 4 decided that CDM issuance requests with provision status that transition to the Article 6.4 mechanism shall be subject to the share of proceeds for adaptation applicable under the Article 6.4 mechanism.”
CarrZee: given the pace of climate change, a 10% contribution from carbon market deals for adaptation seems like a good place to start.