New Frameworks for Financing and Governance of Loss and Damage
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Financing and cost-sharing for compensation mechanisms largely centers around developed countries for their historic contributions even since industrialization started. However, using the UNFCCC charter (see also Muller et al., 2009),especially Article 3.1 which refers to ‘contribution’ ‘respective capabilities’ and ‘common but differentiated responsibilities’, suggests considerable need for precise application of the norms with a good degree of empiricism. This is not a part of this Monograph. Among the estimates of burden sharing offered for financing CCA an estimate of about $100 billion per year has been suggested for supporting CCA (Dellink et al., 2009); it is also suggested that a combination of ability to pay and historical contributions might be relevant, and the per capita burden for compensation in this context among industrial countries ranges $43–82 per year. Suffice it state that if the order of magnitude for compensation for L and D (beyond CCA financing) is about $120 per year the per capita may not be high for the developed countries. These magnitudes and higher levels of support could involve co-financing of insurance coverage and other risk spreading mechanism, concessional transfer of technology that bring in economies of scale, and related measures that promote the businesses in the developed countries as well. Thus a set of win–win strategies are relevant in this context.
KeywordsPrecautionary Principle Burden Sharing International Telecommunication Union Poverty Reduction Strategy Historic Contribution
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