estimates that auctioning just 7.5 per cent of these Assigned AmountUnits (AAUs) from the countries currently designated as Annex I partiesunder the UN Framework Convention on Climate Change (UNFCCC)could yield approximately $50 billion by the year 2015.
Revenues should be generated from international sectors that arecurrently not regulated under the Kyoto Protocol. The internationalaviation and shipping sectors have been identified by countrydelegations and observers to the UNFCCC negotiating process assectors where it’s possible to reduce greenhouse gas emissions whilegenerating new adaptation financing. Oxfam has calculated thatestablishing emission limits for aviation and shipping, focused ondeveloped countries only, and auctioning off emission allowances inthose sectors could generate more than $12 billion and $16.6 billion,respectively.
Funds should be delivered through a UN adaptation finance mechanismthat is responsible for oversight and delivery with a focus on theperspectives and needs of those communities that are most vulnerableto the impacts of climate change. The best way to achieve anadaptation funding mechanism under the governance of the UNFCCCparties is to maintain and bolster the Adaptation Fund as part of a post-2012 climate agreement.
Figure 1: Revenues from Oxfam’s adaptation financerecommendations
Estimated revenues for year 2015 in billions USD
RecommendationAnnual revenue at $45/tonallowance price
AAU Auction (7.5% of allowancesauctioned)$52Aviation Emissions Trading Scheme $12.4Maritime Emissions Trading Scheme $16.6
Source: Oxfam 2008
Turning Carbon into Gold
, Oxfam Briefing Paper, December 2008