Justice in Funding Adaptation under the International Climate Change Regime

Justice in Funding Adaptation under the International Climate Change Regime

Contents Introduction 1 1.1 Justice and Climate Change 2 1.2 Aims of the Book 7 1.3 Outline of the Book 8 References 10 Adaptation to Climate Change 11 2.1 The Prominent Role of Mitigation 11 2.2 Integrating Mitigation and Adaptation 13 2.3 The Importance of Adaptation 15 2.4 The Notion of Adaptation 16 2.5 Vulnerability 20 2.6 Adaptive Capacity 22 2.7 Adaptation in Practice 23 References 27 The Ethical Bases of International Adaptation Funding 29 3.1 From Justice to Theories of Justice 31 3.2 The Scope of Distributive Justice 35 3.3 The International Span of Justice 37 3.4 The State's Responsibility in the Liberal Perspective 41 3.5 The State's Social Vulnerability in the Liberal Perspective... 44 3.6 Other Justifications of the Statist Perspective 46 3.7 The Extension of Liberal Theories of Justice to Adaptation Funding 47 References 51 The Framework of Justice 53 4.1 Fair Process Involving All Relevant Parties 53 4.2 Responsibility for Climate Impacts As an Ethical Basis for Raising Funds 55 4.3 Social Vulnerability to Climate Impacts as an Ethical Reference for Allocating Funds 58 4.4 Liberalism and the Environment 60 4.5 Fair Adaptation Funding: Inclusion, Specification and Commitment 61

viii Contents 4.6 Sharing the Burden of Adaptation: Differentiated Historical Responsibility 63 4.7 Allocating Raised Adaptation Funds: Lack of Human Security.. 66 References 69 5 The International Institutions and Instruments Governing Adaptation Funding 71 5.1 Funding Adaptation: Rationale 72 5.2 Funding Adaptation: Options 73 5.3 Funding Adaptation in the Convention and Kyoto Protocol... 74 5.4 TheGEF 77 5.5 The Sources of Funding 79 5.5.1 The GEF Trust Fund 79 5.5.2 The Special Climate Change Fund 80 5.5.3 The Least Developed Countries Fund 80 5.5.4 The Adaptation Fund 81 5.6 Problems and Challenges of Adaptation Funding Under the UNFCCC Regime 85 5.7 Funding Adaptation Outside the UNFCCC Regime: Significant Practices 86 References 88 6 Evaluation of Procedural Justice in International Adaptation Funding 89 6.1 Principal Documents: Convention and Kyoto Protocol 92 6.1.1 Recognition: Inclusion of All Countries 94 6.1.2 Participation: Possibility to Specify the Terms of Participation 94 6.1.3 Distribution of Power: Commitment to Assistance from Richer to Poorer 94 6.2 Other Principal Documents 95 6.2.1 The Berlin Mandate 95 6.2.2 The Buenos Aires Plan of Action 95 6.2.3 Beijing Declaration of the Second GEF Assembly... 95 6.2.4 The Delhi Ministerial Declaration on Climate Change and Sustainable Development 96 6.2.5 The Bali Action Plan 96 6.3 Governance Structures, Procedures and Practices 96 6.4 UNFCCC Institutions 98 6.4.1 The Conference of the Parties 98 6.4.2 The Subsidiary Body for Implementation 99 6.4.3 Consultative Group of Experts and Least Developed Countries Expert Group 100 6.5 TheGEF 101 6.6 The Importance of the Adaptation Fund and its Governance Structure 103

Contents 6.7 Observation of Meetings on the (Governance of the) AF: " Failure (SBI 24) and Success (SBI 25, COP/MOP 2) 106 6.7.1 The Failure: SBI 24 106 6.7.2 The Success: SBI 25 and COP/MOP 2 112 6.7.3 Final Considerations 117 References 117 Evaluation of Distributive Justice, Analysis of Fairness and Equity Criteria and of the Role of Justice in International Adaptation Funding 119 7.1 Principal Documents: Convention and Kyoto Protocol 119 7.1.1 Equality and Difference: Differentiated Historical Responsibility 120 7.1.2 Basic Capability Equality: Lack of Human Security... 121 7.2 Other Principal Documents 122 7.2.1 The Berlin Mandate 122 7.2.2 The Buenos Aires Plan of Action 122 7.2.3 The Bali Action Plan 122 7.3 Observation of Meetings on the (Governance of the) AF: Failure (SBI 24) and Success (SBI 25, COP/MOP 2) 123 7.3.1 The Failure: SBI 24 123 7.3.2 The Success: SBI 25, COP/MOP 2 124 7.3.3 Final Considerations 125 7.4 Fairness and Equity Criteria in Documents 125 7.5 Fairness Criteria in Governance Systems,.. 128 7.6 Fairness and Equity Criteria in Formal Adaptation Fund Meetings 129 7.7 Some Final Considerations on Justice in International Adaptation Funding 130 References 132 Further Application of the Framework of Justice and Concluding Remarks 133 8.1 Evaluation of Post-Kyoto Adaptation Funding Proposals 133 8.2 Conventional Funding: Budgetary Contributions 136 8.2.1 +0.5% GNP from Annex I Parties 136 8.2.2 Adaptation Finance Index 137 8.2.3 Climate Change Fund 137 8.2.4 Models Based on Existing Precedents: Global Fund to Fight AIDS, Tuberculosis, Malaria - Multilateral Fund for the Implementation of the Montreal Protocol 137 8.2.5 Multilateral Financial Structure for Climate Change... 138 8.3 Unconventional Funding: Contributions Raised Through Market-Based Instruments, Taxes, and Levies 138 8.3.1 Carbon-Gold 138 8.3.2 Financing Adaptation by Auctioning 139

x Contents 8.3.3 Global Carbon Adaptation Tax 139 8.3.4 Greenhouse Development Rights 140 8.3.5 Insurance Instruments for Adapting to Climate Risks... 140 8.3.6 International Air Passenger Adaptation Levy 141 8.3.7 International Climate Change Adaptation and National Security Fund. 141 8.4 Hybrid Funding: Conventional and Unconventional Contributions 141 8.4.1 Convention Adaptation Fund 141 8.4.2 Indian Financing Architecture 142 8.4.3 Integral Financial Mechanism for Living Well 142 8.4.4 International Blueprint on Adaptation 143 8.4.5 Sao Paulo Proposal 143 8.4.6 World Climate Change Fund (Green Fund) 143 8.5 Some Final Reflections on Justice in the Post-Kyoto Architectures 144 8.6 Main Contributions of the Book 145 8.7 Policy Ideas 148 References 150 Appendix A: List of Non-Principal Documents 151 Appendix B: Analysis of Documents (Procedural Justice) 155 B.I Guidance to the Financial Mechanism 155 B.I.1 Recognition: Inclusion of All Countries 156 B.I.2 Participation: Possibility to Specify the Terms of Participation 157 B. 1.3 Distribution of Power: Commitment to Assistance from Richer to Poorer Countries 158 B.2 Review of the Financial Mechanism 158 B.2.1 Recognition: Inclusion of All Countries 160 B.2.2 Participation: Possibility to Specify the Terms of Participation 160 B.2.3 Distribution of Power: Commitment to Assistance from Richer to Poorer 161 B.3 The Special Climate Change Fund 161 B.3.1 Recognition: Inclusion of All Countries 163 B.3.2 Participation: Possibility to Specify the Terms of Participation 163 B.3.3 Distribution of Power: Commitment to Assistance from Richer to Poorer 164 B.4 The Least Developed Countries Fund 165 B.4.1 Recognition: Inclusion of All Countries 166 B.4.2 Participation: Possibility to Specify the Terms of Participation 166 B.4.3 Distribution of Power: Commitment to Assistance from Richer to Poorer 167

Contents xi B.5 The Adaptation Fund 167 B.5.1 Recognition: Inclusion of All Countries 168 B.5.2 Participation: Possibility to Specify the Terms of Participation 168 B.5.3 Distribution of Power: Commitment to Assistance from Richer to Poorer 169 Appendix C: Analysis of Documents (Distributive Justice) 171 C.I Guidance to the Financial Mechanism 171 C. 1.1 Equality and Difference: Differentiated Historical Responsibility 171 C.I.2 Basic Capability Equality: Lack of Human Security... 171 C.2 Review of the Financial Mechanism 172 C.2.1 Equality and Difference: Differentiated Historical Responsibility 172 C.2.2 Basic Capability Equality: Lack of Human Security... 172 C.3 The Special Climate Change Fund 173 C.3.1 Equality and Difference: Differentiated Historical Responsibility 173 C.3.2 Basic Capability Equality: Lack of Human Security... 173 C.4 The Least Developed Countries Fund 173 C.4.1 Equality and Difference: Differentiated Historical Responsibility 173 C.4.2 Basic Capability Equality: Lack of Human Security... 173 C.5 The Adaptation Fund 174 C.5.1 Equality and Difference: Differentiated Historical Responsibility 174 C.5.2 Basic Capability Equality: Lack of Human Security... 174 Glossary 173 Index 179