From poverty to power - Oxfam-Québec
From poverty to power - Oxfam-Québec From poverty to power - Oxfam-Québec
5 THE INTERNATIONAL SYSTEM CLIMATE CHANGEcompensation for climate change damages under international environmentallaw. 218 Climate change could one day be treated as the equivalentof a gigantic industrial accident – an atmospheric Exxon Valdez.Butperhaps the closest parallel is with the tobacco industry,which has founditself forced to answer the question,‘Why did you continue trading andconcealing evidence, when you knew your activities would lead tomillions of deaths?’. Much the same could be asked of both companiesand governments that, despite the increasing strength of the evidence,fail to rein in carbon emissions. Uganda’s President Yoweri Museveni hasdescribed climate change as ‘an act of aggression by the rich against thepoor’. 219 Will the courts one day agree with him?In large part, the answer will depend upon the extent to which richcountries deliver on their commitments, and the principles underpinningthese, such as the ‘polluter pays’ principle, which establishes theduty of polluters – rather than victims – to pay for the costs of theirpollution. Since the worst impacts of climate change can be greatlyreduced through effective preventive steps – preparing for floods,anticipating dry spells and heat-waves, building infrastructureto withstand unprecedented frequency and scale of climate-relateddisasters – paying for adaptation rather than damages is a much moreefficient and humane approach for polluters to deliver on their obligations.Apart from helping to avoid a chaotic welter of litigation, itcan save lives and boost, rather than undermine, human development.How much will adaptation in developing countries cost? Whilecalculating such costs is a complicated and inexact science, setting aball-park figure is critical to provide guidelines for the internationalcommunity. Building on early World Bank estimates, but adding incommunity-level costs, Oxfam estimates the cost as a total of at least$50bn each year, and far more if greenhouse gas emissions are not cutrapidly. 220 The 2007 Human Development Report called for $86bnannually by 2015 in order to avoid ‘adaptation apartheid’ – a gulfbetween rich countries, where massive adaptation outlays are alreadyplanned, and poor countries, currently being left to (literally) sinkor swim.Studies are already under way to sharpen the economics of climateadaptation. While critical for better understanding how adaptationinvestments should be calculated and directed, it is already clear that409
FROM POVERTY TO POWERunless the worst-hit countries – already strapped for cash – receiveinternational compensatory financing, fighting climate change willstymie long-term efforts to reduce poverty. Equally, unless adaptationfinancing is additional to international aid commitments needed toachieve poverty reduction goals, developing countries will be unableto address both challenges.Who should pay, and on what basis? The UN Climate Convention’sprinciple of ‘common but differentiated responsibilities and respectivecapabilities’ (Article 3.1) provides a guide that still holds valid.Assuming that countries that are both responsible for producingexcessive emissions and capable of providing assistance should bearthe costs, Oxfam has developed an ‘Adaptation Financing Index’ as anindication of what each country should pay. On this basis, Oxfam hascalculated that the USA, the EU, Japan, Canada, and Australia areresponsible for over 95 per cent of the financing needed. It estimatesthat the USA is responsible for over 40 per cent, the EU for over30 per cent, and Japan for over 10 per cent. Within the EU, the top fivecontributors to adaptation financing should be Germany, the UK,Italy, France, and Spain. 221The international climate regime must become a strong andorderly global system to address both adaptation costs and the mitigationof carbon emissions. Rich countries have so far pledged a mere $250mto international funds for developing-country adaptation – less than0.5 per cent of what is needed. 222 Even the most promising new sourceof funding, the Climate Change Adaptation Fund, which will fundadaptation measures in developing countries, initially with fundsfrom a 2 per cent levy on carbon credits generated under the CleanDevelopment Mechanism (CDM), discussed below, is only expectedto raise another $80m–$300m annually from 2008–12.While the Adaptation Fund could become the primary channel fordirecting resources for adaptation in developing countries, its fundingbase needs to be massively expanded in order to meet the scale of need.One approach that is consistent with incentives to reduce emissions isto earmark proceeds from the auction of emissions permits in domesticcarbon markets, such as the EU Emissions Trading Scheme or similarmarkets proposed in the USA and Australia. Germany announced itsintention to set aside more than a quarter of proceeds for adaptation410
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5 THE INTERNATIONAL SYSTEM CLIMATE CHANGEcompensation for climate change damages under international environmentallaw. 218 Climate change could one day be treated as the equivalen<strong>to</strong>f a gigantic industrial accident – an atmospheric Exxon Valdez.Butperhaps the closest parallel is with the <strong>to</strong>bacco industry,which has founditself forced <strong>to</strong> answer the question,‘Why did you continue trading andconcealing evidence, when you knew your activities would lead <strong>to</strong>millions of deaths?’. Much the same could be asked of both companiesand governments that, despite the increasing strength of the evidence,fail <strong>to</strong> rein in carbon emissions. Uganda’s President Yoweri Museveni hasdescribed climate change as ‘an act of aggression by the rich against thepoor’. 219 Will the courts one day agree with him?In large part, the answer will depend upon the extent <strong>to</strong> which richcountries deliver on their commitments, and the principles underpinningthese, such as the ‘polluter pays’ principle, which establishes theduty of polluters – rather than victims – <strong>to</strong> pay for the costs of theirpollution. Since the worst impacts of climate change can be greatlyreduced through effective preventive steps – preparing for floods,anticipating dry spells and heat-waves, building infrastructure<strong>to</strong> withstand unprecedented frequency and scale of climate-relateddisasters – paying for adaptation rather than damages is a much moreefficient and humane approach for polluters <strong>to</strong> deliver on their obligations.Apart from helping <strong>to</strong> avoid a chaotic welter of litigation, itcan save lives and boost, rather than undermine, human development.How much will adaptation in developing countries cost? Whilecalculating such costs is a complicated and inexact science, setting aball-park figure is critical <strong>to</strong> provide guidelines for the internationalcommunity. Building on early World Bank estimates, but adding incommunity-level costs, <strong>Oxfam</strong> estimates the cost as a <strong>to</strong>tal of at least$50bn each year, and far more if greenhouse gas emissions are not cutrapidly. 220 The 2007 Human Development Report called for $86bnannually by 2015 in order <strong>to</strong> avoid ‘adaptation apartheid’ – a gulfbetween rich countries, where massive adaptation outlays are alreadyplanned, and poor countries, currently being left <strong>to</strong> (literally) sinkor swim.Studies are already under way <strong>to</strong> sharpen the economics of climateadaptation. While critical for better understanding how adaptationinvestments should be calculated and directed, it is already clear that409