Another great idea from the climate defense network.
Impose the Adaptation Levy on all Flexible Mechanisms
The Adaptation Fund is currently under discussion, and for good
reason. A crucial mechanism, the fund will be used to assist
developing countries at risk. Special emphasis will be given to
countries that are particularly vulnerable to the adverse effects of
The issue at hand is who will control the fund – the Parties, or the
World Bank and the Annex 1 countries? It is essential that the fund
and its operational modalities and guidance come from the COP/MOP and
not from the Global Environment Facility (GEF) Council where the
Annex 1 Parties have more control.
The adaptation levy is currently on the Clean Development Mechanism
(CDM) only, and account for two per cent of the proceeds from
Certified Emissions Reductions (CER) transactions. This situation
simultaneously hobbles the CDM and limits the size of the fund.
Developing countries, consequently, cannot benefit from either Joint
Implementation or the Emissions Trading Scheme proper, both Annex B
flexibility mechanisms with much bigger transactions. As this is both
unfair and short sighted, Parties here in Montreal should extend the
adaptation levy to apply to all the flexible mechanisms under the
And while Parties have reached agreement on the operational
modalities for funding adaptation under the Least Developed Countries
Fund (LDCF) and Special Climate Change Fund (SCCF), there is still
far too little money in the funds to implement priority adaptation
activities. It is essential that Annex 1 Parties provide sufficient
inputs to these funds to support urgently-needed adaptation
activities, as identified by the LDCs through their National
Adaptation Programmes of Action.