The Green Fund:
An approach based on ‘Common but Differentiated Responsibility’ and Equity.
Proposed by Jeffrey Sachs and Shiv Someshwar, Asia Development Bank Paper 371, July 2012)
“Purpose. The Green Fund will receive assessed contributions of member countries and will disburse grant and loan funds to low-income and middle-income countries to pursue programs of climate-change mitigation and adaptation.
Duration. The Green Fund will operate until the sustainable reduction of GHG emissions sufficient to meet the objectives of the UNFCCC. This is targeted to occur no later than 2050.
Members. All signatories of the UNFCCC are members of the Green Fund.
Governance. The Governing Board will include two representative countries of each Regional Development Bank. Each RDB will select its representatives according to procedures set by the Governing Boards of the respective banks. The countries will serve for two years. At least one of the two countries will be a recipient country of the Green Fund. Each MDB will have a non-voting representative, as will relevant UN agencies.
Funding. The Green Fund will be funded by assessments paid by member countries. Assessments will be determined according to each country’s CO2emissions and the country’s GDP per capita (World Bank Atlas method)”.
Although its carbon reduction strategy is very different, in practice, the Green Fund would be similar to Kyoto 2. Like K2, it gives the impression that some developing countries cannot be trusted to administer affairs to the advantage of its citizens. Nevertheless, it may attract support from climate vulnerable nations that like the prospect of a guaranteed steady income which is largely insulated from recession. However, it will be hard to quantify the amount by which the Green Fund will reduce carbon emissions – nationally or globally.