-In the light of the emphasis of the UNEP on market-based instruments as a counter-cyclical tool, a look at sustainability as a tool for countering economic crisis
-Recommendations on the conceptual contours of a new environmental financing architecture that is based on the principles of new, additional, predictable and equitable modes of financing
Day One of the Round Table witnessed four sessions in which following topics were discussed:
• Maxims of Global Environmental Financial Architecture
• Structure, processes and outcomes of the existing financial systems for global public goods
• Public and Private Financing Systems - National and International and Carbon Funds
• Review of proposals on financing tabled by Conference of Parties to Climate Change and Biodiversity
On Day Two, a brainstorming session on Global Environmental Architecture was held. Participants in the final session included Mr Lokesh Chandra, Director, Ministry of Power.
The recommendations of the International Round Table on 'Towards an Enabling Environmental Financial Architecture for Global Public Goods' are as follows:
- An enabling environmental financing architecture should be country-led and based on the foundations of equitable and sustainable low carbon path of growth that is to be enabled by national priorities, programs and policies.
- Flow of funds for provisioning of global public goods should be adequate, predictable and additional to existing fund flows which are insufficient
- Governance of global financial architecture should be based on the principles of inclusive management and policy guidance set by both contributing and recipient countries. A related focus would be to develop and periodically review and adjust a set of global guidelines for allocating financial resources to different themes as well as different countries.
- Appropriate mechanisms have to be evolved to stimulate the inclusion of private sector funding into areas that would mitigate climate change. Public financing can be used to catalyze private investment in mitigation and adaptation.
- Market based instruments including carbon markets play an important role in enabling cost efficient mitigation and giving signals to markets, investors and policy makers. However, the principles of organizing Carbon Markets need to be revisited for correcting inadequacies and imbalances.
- Domestic policies and an enabling environment are important to address climate change. The feasibility of Integrating Carbon and Energy Efficiency Markets may be explored to secure economies of scale and scope.
- Development and diffusion of technology relevant to climate change is important to realize the goals of UNFCCC.
- Transfer of Technology needs to be on fair, equitable and affordable terms. Funds are needed to support clean technology development, demonstration and transfer. IP barriers also need to be addressed.
- Collaborative research ventures that reduce the costs of technology development, transfer and diffusion in the long term needs to be encouraged and relevant business models may be explored based on relevant experiences of other multilateral agreements.
- There is a need to direct finance to encourage technology assessment systems to stimulate national innovation and transform local development pathways.