The history of financial support for developing countries is seen by many as littered with disappointments and broken promises that have eroded trust to an unprecedented level. Whatever financial regime is to emerge from the Copenhagen Climate Conference, it will have to remedy this situation. This is highly unlikely without some form of financial commitments.
The aim of this paper is develop a new institutional architecture and governance structure for the Financial Mechanism (FM) of the UN Framework Convention on Climate Change
Article 12.5 of the Kyoto Protocol specifies that emission reductions are only to be certified under the Clean Development Mechanism (CDM) if they are additional to any that would occur in the absence of the certified project activity. The primary question to be pursued in this discussion paper is simply: Why?
The aim of the recent UN climate change conference in Nusa Dua (Bali, Indonesia) was widely held to be two-fold. To finalise the operational details of the Kyoto Protocol Adaptation Fund (AF), and to put together a
