Negotiators have worked through the past three nights in search of agreements that all nations can sign up to (see my last blog). At 3 am this morning they reached consensus on a package of decisions that represents progress in the journey towards a global deal.
But most of those in Cancun have more down-to-earth reasons for being here. They’re here to initiate action – to share experiences, learn from best practice, forge new partnerships, and launch new programs.
Here’s a sample from the past 48 hours of some of the action that we’ve been moving forward, when many heads of state, ministers and global leaders such as Ban Ki Moon and Bob Zoellick were in town.
Developing Countries push the frontiers on Carbon Markets:
A new Partnership of Market Readiness was launched by the World Bank and by ministers from 15 countries with the purpose of supporting innovation in developing nations on market based instruments. Countries like China, Chile, Columbia, India, Indonesia, Mexico, Ukraine and many others – are introducing their own market based instruments. This new facility – now US$30 million but expected to rise to US$100 million – will provide technical support to these efforts, and seek to share practical lessons for others to follow.
This is part of a much bigger movement on carbon markets here in Cancun. The Clean Development Mechanism is in need of reform so that transactions costs are reduced and low income countries get better access to funds. [So far around US$25 billion has flowed to developing countries through carbon markets, but only 2% of this goes to Africa.] The High level Advisory Group on Finance estimates that US$30-50 billion could flow annually to developing countries through the offset markets by 2020 with moderate progress in policies. The fact that so many leading developing countries are now creating their own internal markets could help hugely in driving down the cost of mitigation, bringing in new technology and, over time, building a linked global market