Key Finance Terms

Briefing paper

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Date produced: 24/11/2010

One issue that is likely to be important at COP16 in Cancun relates to the creation of a new fund or a finance board (or both) to govern and distribute new finance flows.

In this briefing paper, we set out general background information in relation to the following issues which may be useful to delegates when discussing the proposed fund or finance board:

(A) the meaning of ‘‘direct access’’ to funds;
(B) the difference between “equal” and “equitable” representation on any finance board / body;
(C) the meaning of and difference between “under the authority of” and “under the guidance of and accountable to” the Conference of the Parties (“COP”); and
(D) the role of the finance board and the difference between “oversight”, “overview” and “co-ordination” of the fund.

In this briefing paper we do not look at the sources of finance that could be leveraged to meet the $100bn target set out in the Copenhagen Accord. The UN Secretary General’s High-level Advisory Group on Climate Change Financing released a report on this very point on 5 November 2010 and the options set out in this report are likely to be discussed in Cancun.