Every nation is \ue002acing a \ue002uture in which \ue000uctuations in climatic patterns will be unpredict- able and erratic. Impacts will be \ue002elt \ue001rst and worst in the developing world, striking at the very livelihoods o\ue002 poor and vulnerable communities; the same communities that continue to have the least capacity to cope.

In the Bali Action Plan, developed and developing countries recognize \ue001nance as a key com- ponent to any success\ue002ul and equitable international climate treaty in Copenhagen. InterAc- tion strongly supports the progress that has been made thus \ue002ar and applauds the U.S. gov- ernment \ue002or actively reengaging in the UN international climate change negotiations. Within the context o\ue002 the G20, \ue001nance ministers have the opportunity to dismantle the log jam that is preventing progress in the UNFCCC process and signi\ue002y strong commitments \ue002or moving \ue002orward to Copenhagen.

1. Developed country \ue001nance ministers should use the G20 as an opportunity to take ambi- tious steps \ue002orward in \ue002ul\ue001lling their responsibility to provide new, additional, predictable and adequate \ue001nancial resources \ue002or adaptation, enhanced mitigation actions, technol- ogy sharing, and capacity building in developing countries.

3. Decisions about the institutional arrangements should be decided in the UNFCCC process where all parties are represented. However, when approaching these discussions, \ue001nance mechanisms must respect basic equity principles.

1. Developed country \ue001nance ministers should use the G20 as an opportunity to take ambi- tious steps \ue002orward in \ue002ul\ue001lling their responsibility to provide new, additional, predictable and adequate \ue001nancial resources \ue002or adaptation, enhanced mitigation actions, technol- ogy sharing, and capacity building in developing countries.

an overall \ue001nancing target will demonstrate their commitment to shared \ue001nancing o\ue002 global climate goals, and will help open the door to negotiating details o\ue002 adaptation planning and enhanced mitigation actions under the UNFCCC.

ing countries eforts on adaptation and mitigation, the world will need to mobilize public \ue002unding \ue002or developing country actions at the scale o\ue002at\ue000 least \ue000

on conservative estimates, represents the minimum resources required to meet the developed country obligations \ue002or support to developing countries \ue002or mitigation and adaptation measures. Nicholas Stern estimates that by 2050 two percent o\ue002 global GDP (about $1.08 trillion) will be needed per year to hold greenhouse gas emissions below 500 ppm carbon di- oxide equivalent, already above the 450 ppm thresh- old.2 The UNFCCC has put the incremental price tag o\ue002 moving to a low carbon economy at $200 billion to $210 billion above today\u2019s investments in greenhouse gas mitigation per year \u2013about hal\ue002 o\ue002 that will be needed in developing countries.3 The UNDP calls \ue002or another $86 billion each year to help communities in the developing world deal with the impacts o\ue002 global warming that is already \u201clocked-in.\u201d4

at the center o\ue002 support packages that help develop- ing countries meet public policy objectives \ue002or adap- tation and mitigation eforts and the distribution o\ue002 related public goods and services. Moreover, public \ue001nance is critical \ue002or providing the incentives that are required \ue002or strategic investments that will have long-terms returns, like innovative clean energy and

1 The \ue001gure is dependent upon the scale o\ue002 reductions achieved as well
as the prices o\ue002 goods, so it requires constant revision in light o\ue002 new
science, relevant studies, and improved policy \ue002rameworks.

2 Juliette Jowit and Patrick Wintour, \u201cCost o\ue002 tackling global climate
change has doubled, warns Stern,\u201d The Guardian, June 26, 2008. See:
http://www.guardian.co.uk/environment/2008/jun/26/climatechange.
scienceo\ue002climatechange. Stern\u2019s 2006 cost estimates pertain to
atmospheric levels equivalent to carbon dioxide (CO2) concentrations
o\ue002 450 to 550 parts per million. Stern\u2019s 2008 revision o\ue002 this estimate
re\ue002ers to 500ppm. This level o\ue002 CO2 is signi\ue001cantly higher than the 350
ppm target that NASA scientist James Hansen says we need to stay
below to avoid catastrophic global warming. (Remember This: 350
Parts Per Million, Bill McKibben, WashingtonPost.com, December 28,
2007. Available at http://www.washingtonpost.com/wp-dyn/content/
article/2007/12/27/AR2007122701942.html)

3 The United Nations Framework Convention on Climate Change,
\u201cInvestment & Financial Plans to Address Climate Change, Executive
Summary.\u201d See: http://un\ue002ccc.int/\ue001les/cooperation_and_support/

World Bank estimates the gap in annual \ue001nancing \ue002or transitioning to low-carbon development trajectories in developing countries is $100 billion annually. WWF. July 2008. New \ue001nance \ue002or climate change and the environment. p29. http://assets.panda.org/downloads/i\ue002a_report. pd\ue002

4 UNDP. May 2008. Scaling up International Eforts to Meet the
Climate Change Challenge. http://www.m\ue002a.gr/so\ue002tlib/Gklemarek.
pps#1770,7,Financing Climate Change

adaptation technologies, and that may be considered too risky \ue002or private investors. In addition, it may be re- quired to stabilize the private sector in times o\ue002 crisis, as the current \ue001nancial crisis has demonstrated.

2. Finance ministers should make concrete calls \ue002or climate \ue001nance by endorsing viable sources o\ue002 \ue002unds. At the G20, \ue001nance ministers should support the \ue002ollowing options, which i\ue002 implemented together have the potential to mobilize predictable public resources at the scale need- ed, $150 billion annually, starting 2020:

raised through an international auction o\ue002 developed country emissions allowances under a post-2012 cli- mate regime and/or national climate protection in- struments in developed countries and channelled to a multilateral \ue002und, or used to purchase international allowances.

These mechanisms could generate \ue001nance \ue002rom de- veloped countries that could be connected by an international body, while reducing greenhouse gas emissions \ue002rom aviation and shipping sectors at the same time.

could require dues over and above Overseas Devel- opment Assistance \ue002rom developed countries that could be raised through bonds, compliance \ue001nes or other means o\ue002 \ue002und generation.

Additional innovative sources o\ue002 climate \ue001nance that curb greenhouse gas emissions and economic instability in- clude:

place a small levy on international \ue001nancial transac- tions such as currency transactions. This could be passed unilaterally by developed country legislatures, and national governments would then participate in the international cooperation necessary to enact multilateral en\ue002orcement procedures through the UNFCCC or other multilateral body.

subsequent decisions o\ue002 the Parties already call on developed member countries to reduce \ue002ossil \ue002uel subsidies as a matter o\ue002 priority. The more than $67 billion in production subsidies annually given by An- nex 1 countries to the oil and coal industries could be used to support adaptation and clean energy.

Subsidy shi\ue002ts are supported by environmental and development groups, and communities impacted by extractive industries.

3. Decisions about the institutional arrangements should be decided in the UNFCCC process where all parties are represented. However, when approaching these discus- sions, \ue001nance mechanisms must respect to the \ue002ollowing principles:

planning, equitable representation, and meaning\ue002ul engagement o\ue002 civil society and climate impacted peoples in all stages o\ue002 activities

tage\ue000of\ue000broad\ue000public\ue000consensus\ue000on\ue000the\ue000need\ue000to\ue000make\ue000 public\ue000 money\ue000 available\ue000 for\ue000 \ue001nancing\ue000 near-term\ue000 cli- mate\ue000action.\ue000G20 countries can build political goodwill