V20 Calls for Clear Finance Roadmap to Excel in Climate Fight

V20 Calls for Clear Finance Roadmap to Excel in Climate Fight

  • The Vulnerable 20 (V20) Group of Finance Ministers of the Climate Vulnerable Forum (CVF) meet at the World Bank and IMF Fall meetings
  • Philippines hands over presidency as Ethiopia becomes V20 Chair
PRESS RELEASE
Download Press Release (English, Pdf, 0.2mb)
WASHINGTON D.C., 06 October 2016 – On the day after the Paris Agreement on climate change became law, finance ministers representing more than 40 emerging economies that form the Vulnerable Twenty (V20) Group met in Washington, DC to discuss how finance is key to driving the urgent action required at home. At the event, on the sideline of the Annual Meetings of the International Monetary Fund and World Bank Group, Ethiopia assumed the Chair of the V20 Group which was founded in 2015.
Carlos Dominguez, the Secretary of Finance of the Philippines called for a clear roadmap towards the mobilization of $100 billion in additional financing flows to help the most vulnerable countries deal protect themselves. He said V20 international cooperation would “provide our domestic economies with vital support and confidence we need to excel in fighting climate change”.
Abdulaziz Mohammed, the Minsiter of Finance and Economic Cooperation of Ethiopia, highlighted devastating effects and “lethal excesses caused by the world’s most gigantic externality”, adding that “we would like to express Ethiopia’s commitment for its candid leadership for the achievement of the V20 vision, and to work towards the fulfilment of the Paris climate agreement at large”.
Speaking at the V20 Ministerial, Helen Clark, UNDP Administrator, recognized the role of the vulnerable countries in the Paris Agreement through convincing the international community that a world where warming does not exceed 1.5 degrees was worth fighting for. She said “UNDP, and the entire UN development system, will work to support you in accomplishing your mission.”
Photo Caption: Philippines handover the V20 Presidency to Ethiopia; Source: The V20 Group of Finance Ministers; License: CC BY-NC 2.0

V20 to hold 3rd Ministerial Dialogue

V20 High-Level Meeting at 2016 Annual Meetings of the World Bank Group and IMF

6 October 2016, Washington, DC
V20 Ministers of Finance will convene in Washington DC for the third V20 Ministerial Dialogue on 6 October 2016. The meeting will mark the transition of presidencies from the founding Chair, Philippines, to Ethiopia, who assumed the Chair of the Climate Vulnerable Forum (CVF) in August 2016. The event will present updates on key initiatives launched by the V20, including the Global Preparedness Partnership. It will also facilitate the sharing of presentations from members on national experiences of climate finance. The Dialogue is expected to conclude with presentations from the three V20 Focus Groups established in the 2nd V20 Ministerial Dialogue in April 2016, outlining next steps in the areas of Advocacy and Partnerships, Climate Accounting and Risk.
Participation in the 3rd V20 Ministerial Dialogue is by invitation only and subject to registration for the World Bank and IMF Spring Meetings. Accredited media will be invited to attend a segment of the meeting.
Photo Caption: World Bank Main Complex Building Photo Credit: World Bank CC BY-NC-ND 2.0

V20 Ministerial Communiqué

2nd Ministerial Communique: Vulnerable Twenty Group of Ministers of Finance

14 April 2016 | Washington DC
2nd Ministerial Dialogue of the Vulnerable Twenty (V20) Group
V20 Communique (English, Pdf, 0.2mb)
Introduction
  1. We met in Washington, DC on this 14th day of April for our second gathering as Finance Ministers of developing economies systemically vulnerable to climate change chaired by Hon. Cesar Purisima, Secretary of Finance of the Philippines with Bangladesh and Costa Rica as Troika Co-Chairs. We reviewed progress in responding to this defining challenge in our time for survival and for the economy, and we advanced our collective work.
  1. We recognized 23 new V20 members considerably strengthening our dedicated cooperation for enhanced economic and financial actions to address climate change while remaining true to the core needs of members most threatened by global warming. Our economies are home to one billion people whose fate hinges on an effective response.
  1. We called for bolder action by the world’s major economies, strengthened international partnership and reaffirmed our intentions to lead, despite our marginal contribution to global emissions, through actions at home to the limits of our capabilities. We take pride in our successful efforts advocating for the landmark new 1.5 degrees Celsius warming target agreed at Paris in December 2015. We now devote our energies to ensuring a financial system consistent with 1.5 degrees and the reinforcing of the resilience of vulnerable groups around the world.
  1. We expressed alarm at the shattering in 2015 of all temperature records and for surpassing a 1 degree Celsius rise in heat above the pre-industrial era norm. Vulnerable countries continue to suffer disproportionately from the fast accelerating rates of the planet’s warming. In past months we have struggled with widespread heavy rainfall, severe drought in Southern Africa, Latin America and the Caribbean, unprecedented cyclones and kingtides in the Pacific and heatwaves in Asia and Latin America. We face coastal flooding and erosion in our low elevation zones, increasingly adverse thermal conditions for much of our workforce, the compounding of regional security challenges and infringements to fundamental human rights. Even at 1.5 degrees, we will experience a considerable progression of impacts and dangers, underscoring the criticality and urgency of investing in increased resilience and adaptation. The impact of climate change, however, affects us all and carries macro-economic repercussions for growth already embedded as a negative weight on the global recovery.
  1. Determined to overcome these challenges, we fight on with renewed hope. Carbon emissions growth stalled for the second year in a row in tandem with global economic expansion. In addition, the past year saw around 90% of new energy production provided by renewables, according to the International Energy Agency, pointing to the clear compatibility of economic and climate change policies and the potential for further change. Strengthening responses to climate change will reinforce global economic recovery and help restore robust, sustained and balanced growth by containing explosive and costly climate change risks that worsen inequalities and harm people, communities and the world economy. Such actions are a humanitarian priority for protecting fundamental human rights.
Our Actions
  1. We presented our Intended Nationally Determined Contributions (INDCs) to reduce emissions under the new Paris Agreement as a first step to action. These INDCs are also the foundations of investment platforms for transformational economic action. Their realization calls for the delivery of additional and concessional international financing that safeguards debt sustainability, as we strive at ambition in communicated national adaptation and mitigation objectives that our Group aims to see realized, if not surpassed.
  1. We are advancing in parallel with the realization of our 2020 Action Plan to foster a significant increase in the level of resources from all sources to support ambition in our national climate actions. In the context of our Work Plan for implementing V20 priorities, we agreed on the commencement of the first phase of our Action Plan with an initial series of National-Regional Consultations to be hosted by Bangladesh and Philippines. We also established Focus Groups of our members to advance our work in the areas of Advocacy and Partnerships, Climate Accounting, and Risk Pooling. We welcomed the support of a wide range of partners and multilateral institutions behind our activities and look forward to building further on our collaborations moving forward with urgency in our response to climate change in the areas of disaster preparedness, financial protection, financial flow analysis, carbon pricing, public-private partnerships and risk pooling.
  1. In the context of our Action Plan, we agreed to enhance financial protection by addressing financial resilience against climate and disaster risks at national and regional levels. This includes a focus on strategies to improve the financial management of climate and disaster risks, and strengthen each country’s ability to recover from climate-related disaster shocks building from core principles of country ownership; sustainability; contingency planning; accountability; and private sector involvement.
  1. We recognize the vital role of the private sector in generating transformation change to the world economy and in our domestic markets. In doing so, we moved to create a platform for collaboration with the private sector focused on investment opportunities associated with responding to the challenges of climate change through innovations in the sectors of energy, transportation, infrastructure, buildings, agriculture, water supplies, well-planned migration, and other areas. The platform will also focus on publics-private partnership best practice, and on policies and initiatives to mobilize investment and other forms of private sector collaboration.
  1. We reiterate our strong support for innovative revenue generating fiscal and financial measures to raise finance, stimulate technological innovation and redirect investment toward climate resilient and low-emissions development. In this respect and with consideration to each country’s respective capabilities, we commit to support carbon pricing by working to establish pricing regimes within the next decade. As a first step towards the realization of that vision, we will begin work with international partners and platforms–including the Carbon Pricing Leadership Coalition and Market Readiness Partnership–to review options and best practices and engage in advocacy to promote similar steps in other markets towards the goal of a greatly increased share of global emissions subject to pricing. We request the Secretariat to prepare a working paper based on these interactions and agree to revisit collective implementation ideas at the next V20 Ministerial Dialogue. We also reaffirm our support for the urgency of carrying out innovative financial measures, including Financial Transaction Tax, as contributions to closing financial gaps between Paris Agreement objectives and the inadequacies of projected flows.
  1. We will continue our work in the area of improving financial accounting including valuation of the costs of climate change and the co-benefits of climate action in order to inform sound and refined economic policy-making domestically and at international level. In particular, we will promote methods and approaches to internalizing the externalities of climate change into finance since the factoring of these costs is essential to altering business-as-usual courses of action and to driving greater ambition. We appreciate and call for further analytical research into the nature of international climate change finance flows with respect to UNFCCC commitments and the independent commitment of developed countries to provide 0.7% GNI in Official Development Assistance. Our work in this domain will continue under the Focus Group on climate accounting.
  1. Extending insurance coverage, ensuring grass-roots access and expanding risk pooling represent tremendous opportunities for increasing resilience to the wide array of climate-related catastrophes that continue to set back the lives of our people. Having reviewed the V20-mandated study prepared by the Secretariat into options for the creation of a V20 Risk Pooling Mechanism, we note that half the population of V20 countries lack access to external pooling mechanisms of any kind. Recognizing the importance of risk pooling for lowering premiums, extending insurance coverage, increasing pay-out reliability and promoting risk reduction, we agreed to move forward with the initiative. Building on the initial study, the Focus Group for Risk Pooling is tasked with developing a complete proposal for the Mechanism within one year in further consultations with key stakeholders.
Paris Agreement
  1. We strongly welcome the adoption of the Paris Agreement on Climate Change and its enshrining of our key priority to limit warming to not more than 1.5 degrees Celsius, keeping temperatures well below 2 degrees. We also welcome the new global goal on adaptation for enhancing adaptive capacity, strengthening resilience and reducing vulnerability and the new significance the Agreement accords to climate justice, human rights and loss and damage. Early ratification/accession led by the vulnerable countries–Fiji, Palau and Marshall Islands–is an immediate priority for all nations, and essential to give effect to the framework. Efforts should immediately be undertaken to implement and increase the ambition of national commitments to achieve compliance with a 1.5 degrees goal, recognizing that higher levels of warming threatens the very survival of a number of our low-lying island members. It is therefore equally imperative that all countries’ long-term low greenhouse gas emission development strategies for communication in 2020 demonstrate consistency with actions to achieve the 1.5 degrees limit. The international community should take advantage of the 2018 facilitative dialogue to take stock of collective efforts to inform these actions including on the basis of the forthcoming UN Framework Convention (UNFCCC) -mandated Intergovernmental Panel on Climate Change (IPCC) Special Report on 1.5 degrees that was agreed to this week in Nairobi during the IPCC’s 43rd session.
  1. International public finance commitments including financial support will be vital to enabling an ambitious global response. Capacity constraints facing developing countries are particularly severe for those most vulnerable to climate change. Swifter progress towards the achievement of the joint US$100 billion developed country commitment for support to developing countries, including as a priority via the Green Climate Fund, will build confidence in global efforts and contribute to raising ambition. Global resource mobilization must go far beyond the US$100 billion. We further appreciate the new UNFCCC post-2025 joint finance commitment from a floor of US$100 billion by developed countries in support of meaningful developing country climate action. Important Paris Agreement provisions include the consistency of financial flows with low-emissions and climate-resilient development and the need for grant-based finance for adaptation, which is vital for actions among the world’s poorest groups and informal or non-market sectors. We also strongly welcome UNFCCC decisions on efficient access to financial resources through simplified approval procedures and enhanced readiness support for developing countries which are urgent priorities right now. We appreciate the Capacity-building Initiative for Transparency to support developing countries to meet the enhanced transparency requirements and frameworks including on finance. We welcome UNFCCC decisions encouraging all parties to voluntarily contribute to climate finance and recognize those V20 members that have already funded the Convention’s Financial Mechanism while encouraging all countries to consider similar actions.
  1. We continue our call for the internationally agreed balance of climate change finance to be achieved as an even 50:50 allocation between adaptation and mitigation by 2020 at the latest. Lives, health, fragile ecosystems, and progress towards the 2030 Sustainable Development Goals depend on greater support for adaptation given the socio-economic dimensions of climate change vulnerability with the poorest groups, women and children among the hardest hit. We expect the instruments to the UNFCCC Financial Mechanism to demonstrate progress towards early achievement of the balance and will focus our collective vigilance in that respect. We also call for the integration and continuation of the Adaptation Fund under the Financial Mechanism of the Paris Agreement. We call for additional support for our countries for the reinforcement of critical enabling climate finance mobilization capabilities.
Multi-Lateral Cooperation
  1. We express alignment with the G7 on the long-term objective of applying effective policies and actions throughout the global economy in the response to climate change, including carbon market-based and regulatory instruments. We extend appreciation to the G7 for its pledge to intensify support for vulnerable countries own efforts to manage climate change related disaster risk and build resilience. We welcomed the Financial Stability Board’s task force on climate-related financial disclosures and the establishment of a new G20 Green Finance Study Group to identify institutional and market barriers to green finance and develop options on how to enhance the ability of the financial system to mobilize private capital for green investment including in collaboration with external initiatives. We look forward to collaborate closely on these initiatives and call on the G7 and G20 to recognize the need for efforts to achieve the new 1.5 degrees limit and global adaptation goal. We urge G7/G20 steps to scale up climate action consistent with these objectives in solidarity with vulnerable groups inclusive of moves to implement and raise the ambition of previously communicated commitments by 2020 at the latest. We also expect the low greenhouse gas emission strategies of the major economies to demonstrate clear contributions to capping warming at 1.5 degrees.
  1. We urge further enhancement of the climate change focus of Multi-Lateral Development Banks and International Financial Institutions (IFIs), in the context of country-led/country-driven development and national partnerships, as aligned with ambitious new Paris Agreement objectives. We call for coordinated actions especially in the areas of infrastructure, energy and forestry, for the integration of climate change considerations in macroeconomic projections and Article IV IMF consultations. We request IFIs for innovative financing structures and solutions that respect our requirements for debt sustainability and for support on project due diligence and pipeline development. Such efforts would help leverage the full extent of investment opportunities embodied by our national commitments under the Paris Agreement and unlock further ambition as contributions towards achieving the 1.5 degrees limit and global adaptation goal. We welcome the World Bank Climate Change Action Plan, which we expect will make a significant contribution in this respect. In highlighting our need for mechanisms to pool risk and recalling our forthcoming work on carbon pricing, we also called for dedicated support to expand risk pooling and for readiness assistance on mechanisms for pricing emissions.
Next Meeting
  1. We agreed to reconvene at Washington, DC in October 2016 for the third V20 Ministerial Dialogue and directed the Working Group to continue its activities in advancing the priorities of the Group.

V20 Chair’s Opening Statement at the V20 2nd Ministerial Dialogue

Opening Statement of the V20 Chair at the V20 2nd Ministerial Dialogue

H.E. Mr. Cesar Purisima, Hon. Secretary of Finance of the Philippines (V20 Chair)
Second Ministerial Dialogue Vulnerable Twenty (V20) Group at the 2016 Spring Meetings of the IMF and World Bank Group
14 April 2016, 12:15 pm –2 pm Washington, DC, USA
Download the statement (English, Pdf, 0.2mb)
Excellencies, Partners, Colleagues, Ladies and Gentlemen, good afternoon!
Last year was a landmark year for our planet and people. Four documents were adopted internationally, identifying plans of action and setting commitments to address complex issues on development. The Addis Ababa Action Agenda Document under the Financing for Development and the 2030 Sustainable Development Agenda set targets and courses for action to achieve sustainable development over a 15-year period. The Sendai Framework 2015-2030 renewed our efforts on disaster risk reduction and resiliency. And before the year has ended, the world witnessed the historic adoption of the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC).
Thus, the launch of the Vulnerable 20 last year could not have happened under a better backdrop. Our membership represents the world’s most urgent rationale for action, with some facing down the threat of extinction with rising global temperatures. Be that as it may, last year’s developments gave us our best hope yet, that we could still unite and work towards climate change mitigation and adaptation.
Today, we meet again to manifest our commitment and pick up the pace of the progress we made on the advocacies we first set during the V20 launch in Lima last October 2015. The commitments we have made during our first Ministerial meeting in Lima and the goals we pushed for in Paris – the temperature goal, the financial goal, and other non-financial commitments – were all borne out of dire existential threats the lives and livelihoods of our people face. Indeed, the very creation of this grouping was such that vulnerable, developing nations—often at the margins, and who far too often go unheard—can band together to voice a clear demand and vision for global climate action, with financing as an integral part of the solution.
While the adoption of the climate agreement in Paris was by all accounts historic, we recognize that this is merely a modest beginning towards securing a sustainable future for our world. The climate agreement retained the less than 2 degrees Celsius target for top emitters while recognizing the importance of working towards a global temperature below 1.5 degrees Celsius. Let us be unequivocal about this: we need to achieve and undertake more ambitious targets, especially for top emitters. We will continue to advocate for a below-1.5 degrees Celsius target, as agreed in Lima last year. This is a matter of survival; settling for less ambitious goals means some of us, our people and our lands, would be wiped off the face of the earth by the ravaging effects of global warming.
If we do not push for stronger measures to arrest dangers, the estimated US$45 billion annual loss of GDP potential since 2010 is expected to increase to close to US$400 billion in the next 20 years, which means an annual loss of at least 2.5% of our GDP potential per year will be escalated.  We would experience a sea level rise that will partially or completely submerge the island nations of Kiribati, Maldives, and Tuvalu, displacing at least 500,000 people. The inundation of approximately 17 percent of land areas and the displacement of about 18 million people by 2050 in the case of Bangladesh will be made more likely.
We know that significant levels of finance, including US$90 trillion in infrastructure investments by 2030, are a requirement. Current estimates argue for more investments for climate action. In a 2014 joint report of the UN Office for the Coordination of Humanitarian Affairs and DARA, the ever increasing funding requirement to finance climate actions have led to a “global deficit in the operational and financial capacities” of governments and non-government humanitarian organizations, to respond to climate-induced problems, especially in the vulnerable countries.[1]
Thus in Lima, we agreed to scale-up and accelerate the rapid mobilization of climate finance. We acknowledged the internationally recognized commitments on climate finance, in particular the US$100 billion per year from 2020 joint mobilization target of developed countries to support developing countries in responding to climate change. The Paris Agreement has also stressed the goal of US$100 billion per year by 2025 and as a floor thereafter.
Our members appreciate the considerable progress achieved as developed nations strive to deliver on the joint 2020 mobilization commitment of US$100 billion per year for global climate action. According to a recent OECD report in 2014 however, mobilization levels were still US$38 billion short of this figure, underscoring just how much remains to be accomplished in the next 5 years. The V20 Group is convinced closing the outstanding gap to US$100 billion is not only achievable, but that it may even be surpassed prior to 2020 in order to secure fast-tracked climate protection and benefits for all—if we keep up the healthy amount of pressure for progress for the sake of the most vulnerable of our populations.
We are encouraged that developed countries have scaled up financial and non-financial resources through announced commitments and pledges of contributions. We will count on developed countries to fulfill their commitments towards providing “public and grant-based resources for adaptation” and achieving the balanced funding for adaptation and mitigation, focusing on “particularly vulnerable” countries with significant capacity constraints from the Least Developed Countries and Small Island Developing States.[2] The formulation of a clear, concrete road map for support is crucial in the delivery of these commitments. We need more clarity on how the US$100 billion will exactly be mobilized.
The V20 has set in place an ambitious goal of mobilizing US$20 billion per year by 2020 to address country determined priorities to support the implementation of INDCs [Intended Nationally Determined Contributions] [3] as well as plans consistent with low emissions and climate-resilient development. We continue to call on partners and financial mechanisms to achieve simplified and efficient application and approval procedures of accessing climate finance, and through continued readiness support to developing country Parties, including the least developed countries and small island developing States, both for the period before and after 2025.
As the fight for our survival and future continues, we welcome into our V20 Group our new 23 member countries (member countries of our sister initiative, the Climate Vulnerable Forum, inducted in December 2015). Our growing number strengthens collective advocacy by assembling more voices and more hands towards global climate financing solutions. Our growing membership should not dilute our focus nor keep us from serving the core needs of our most vulnerable members.
As we look towards COP22 in Morocco, our shared view in setting strong and innovative policies should translate to more accessible policy, financial, and technical resources. Our Group will be relentless in continuing to pursue transformative solutions for our shared climate-resilient future.
I hope today will turn out to be a productive Ministerial meeting. May we have a meaningful discussion and work to agree on the targeted outputs and deliverables this afternoon.
I look forward to building on our progress today.
Thank you.
[1] UN OCHA and DARA (2014). Saving Lives Today and Tomorrow. Managing the Risk of Humanitarian Crises. http://resources.daraint.org/sltt/complete_report.pdf
[2] As contained in COP 21 decision text 1/CP.21 and Article 4 of the Paris Agreement.
[3] World Resources Institute presentation material on Climate Finance Accounting during the 2nd Working Group Meeting of V20 on March 29-30, 2016
Photo caption: H.E. Mr. Cesar Purisima, Hon. Secretary of Finance of the Philippines delivering the Philippines CVF Chair opening statement at the V20 2nd Ministerial Dialogue at the 2016 Spring Meetings of the International Monetary Fund and the World Bank Group, Board Room, World Bank Main Complex, Washington DC (14 April 2016); Source: CVF/UNDP; Licence: CC

V20 to hold Ministerial Dialogue

V20 High-Level Events at 2016 Spring Meetings of the IMF and World Bank Group

13-14 April 2016, Washington, DC
Following the 2nd V20 Working Group Meeting held last week, V20 delegates will convene in Washington DC for the 2nd V20 Preparatory Deputies/Senior Officials Meeting and the 2nd V20 Ministerial Dialogue on 13th and 14 April 2016 respectively. The meetings will affirm the V20’s commitment to the Paris Agreement, calling for a path towards the 1.5 degrees Celsius limit and greater financial protection for climate change impacts.
The Ministerial meeting of the V20 is considering a Work Plan and extending commitments to pioneer and deploy financial and fiscal solutions to climate change. The V20 Risk Pooling mechanism will be a focus of discussion, along with progress on the 2020 Action Plan to mobilise unprecedented investment from all sources beginning with national finance dialogues and building partnerships with private sector partners. A V20 Communiqué will be issued at the conclusion of the event.
The V20 2nd Ministerial Dialogue will also see confirmation of new CVF member countries as V20 members.
Participation in the 2nd Preparatory Deputies/Senior Officials Meeting and the 2ndMinisterial Dialogue is by invitation only and subject to registration for the World Bank and IMF Spring Meetings. Accredited media will be invited to attend a segment of the 2ndMinisterial Dialogue meeting. Admission to the V20 with Business reception is by invitation only.
Photo Caption: World Bank headquarters. Washington DC. Photo Credit: Deborah W. Campos / World Bank. Photo Licence: CC BY-NC-ND 2.0

Vulnerable Twenty Group Founded

V20: Twenty Ministers of Finance agree on financial mechanisms to foster greater investment in climate resiliency
PRESS RELEASE

English release: Pdf (0.2mb, pdf) Word (1.2mb, ms word)

Spanish release: Pdf (0.2mb, pdf) Word (1.2mb, ms word)

Read the founding documents

8 October 2015, Lima – Finance Ministers of the Vulnerable Twenty (V20), representing close to 700 million people threatened by climate change and spanning world regions, held their inaugural meeting on 8 October 2015 in Lima, Peru. They announced a series of actions to foster greater investment in climate resiliency and low emissions development at home and internationally.
In its first statement the group called the response to climate change a “foremost humanitarian priority”, with the V20 committing to act collectively to “foster a significant increase” of public and private finance for climate action from wide-ranging sources, including international, regional and domestic mobilization.
 “In the absence of an effective global response, annual economic losses due to climate change are projected to exceed US$400 billion by 2030 for the V20, with impacts far surpassing our local or regional capabilities,” said Cesar Purisima, Finance Minister of the Philippines. “Here in Lima, we unite for what we believe is the fundamental human rights issue threatening our very own existence today. Global climate action gives us hope that we can still see a future free from the most devastating effects of climate change.”
Finance Ministers decided to develop and apply innovative fiscal measures. They voiced support for an international financial transaction tax to aid the mobilization of additional resources for the fight against climate change. They also called for improved access to international climate change finance for adaptation and mitigation action, the fulfillment of the $100 billion commitment to the Green Climate Fund, and acceleration towards a 50:50 balance in resources mobilized given prevailing shortfalls for initiatives to adapt to climate change.
“This is not a typical group of major economies. Instead we represent countries put at high risk by the economic failures to address climate change,” said Jose Francisco Pacheco, Vice Minister of Finance of Costa Rica, calling the event today in Lima “historic”. “We have decided to work together to ensure we are not made victims, but do everything we can to contribute to a resolution to this crisis.”
Dr. Atiur Rahman, Governor of the Bangladesh Bank, added: “We want to the world to know that we will not overlook the perils that our economies have been placed at due to the shortcomings, particularly of action by major economies. The world also needs to know that working together our vulnerable countries are doing everything in our power to bring the climate crisis under control, and we won’t relent until we’ve succeeded in our ambition.”
Additionally, Finance Ministers agreed to establish a sovereign V20 Climate Risk Pooling mechanism to distribute economic and financial risks, enabling participating economies to improve recovery from climate-induced extreme weather events and disasters and to ensure enhanced security for jobs, livelihoods, businesses and investors. Modeled on similar regional facilities, the trans-regional mechanism would increase access to dependable and cost-efficient insurance while incentivizing scaled-up adaptation measures.
Finally, V20 countries committed to develop or improve their financial accounting models and methodologies to enhance accounting of climate change costs, risks and response co-benefits in all their forms, while seeking a new international partnership to help realize the group’s aims.
“Financial constraints put up serious barriers for climate action and expose millions to disaster and hardship. We believe the V20’s vision to deploy innovation in finance, based on shared experiences, has great potential to knock down such barriers” said Helen Clark, UN Development Programme (UNDP) Administrator.
“The world needs stronger voices from developing countries to draw more attention to their great needs for investment in fighting the impacts from climate change,” said World Bank Group President Jim Yong Kim. “This new group of 20 countries, led by the Philippines, will play an important role in pushing for greater investment in climate resiliency and low carbon growth at home and internationally.”
The V20 was created to promote climate finance mobilization; to share and exchange best practices on economic and financial aspects of climate action; to develop and implement improved and innovative approaches; and to engage in advocacy and other joint actions.
A Working Group of the V20 commenced immediate follow-up to begin implementation of the first Action Plan, progress on which will be presented at the UN Climate Change Conference at Paris (COP21) later this year. The V20 statement said COP21 must deliver “an agreement entirely consistent with the non-negotiable survival of our kind,” while highlighting the significance of a strengthened below 1.5°C temperature goal.
Afghanistan, Bangladesh, Barbados, Bhutan, Costa Rica, Ethiopia, Ghana, Kenya, Kiribati, Madagascar, Maldives, Nepal, Philippines, Rwanda, Saint Lucia, Tanzania, Timor-Leste, Tuvalu, Vanuatu and Vietnam are part of the V20 and the associated Climate Vulnerable Forum (CVF) that mandated the group’s formation.

 

Photo caption: Secretary Purisima of the Philippines and high-level delegates at the V20 Inaugural Ministerial at Lima – 08 November 2015 – source: V20/CVF – license: CC