A Paris Replenishment Cycle for Contributions to the UNFCCC Financial Mechanism

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Developed country climate finance is generally regarded as quid pro quo for developing country mitigation action, and vice versa. In the Copenhagen Accord, for example, developed countries commit themselves to a goal of mobilizing jointly US$100 billion a year by 2020 to address the needs of developing countries … in the context of meaningful mitigation actions and transparency on implementation. The latter was provided through developing country ‘Copenhagen pledges’ (Nationally appropriate mitigation actions of developing country Parties). What could be the equivalent finance quid in Paris for the developing country Intended Nationally Determined mitigation Contributions (INDCs)? If, following the example of the Copenhagen pledges, the INDCs currently submitted are meant to be one-off occurrences, then some new overall finance goal for 2025/30 might be sufficient. If, however, the (I)NDCs are meant to be part of an enduring contribution cycle then it stands to reason that the ‘finance quid’ needs to have a similar periodic structure. This Concept Note argues that the most pragmatic and effective option for such a periodic finance instrument would be the establishment of a Paris Replenishment Cycle for the UNFCCC Financial Mechanism. This, it is argued, would satisfy many of the long-standing developing country demands, in particular the key demand for more predictability.