High-Level Leaders’ Roundtable: Natural Disasters & Climate Change: Managing Risks and Crises Differently
24 May 2016 (9:00 am to 11:00 am) Beyazit Hall, B-2 Floor, ICC, Istanbul, Turkey
Hon. Roberto B. Tan, Treasurer of the Philippines, Department of Finance, Republic of the Philippines
Part 1: Country Statement
Mr. President, Excellencies, Honourable Colleagues and Partners, Ladies and Gentlemen, good morning!
This year, the rise in the global temperature marks the hottest ever recorded, prompting scientists to declare a climate emergency.
This climate phenomenon exposes humanity, particularly the most vulnerable, to increasing risks caused by weather-related extreme events and sea level rise.
To face the new normal, we acknowledge the need to further act to protect our people and our future.
Under Core Commitment 2, the Philippines is keen on working towards enhancing financial and social protection and further implementing our disaster risk financing and insurance strategy at various levels.
Using our budget, we will further prioritize investments on resiliency and adaptation, including building more resilient structures and using our natural systems. We will also improve the strategic use of our national and local funds on preparedness and prevention.
In sync with our public finance reforms, we will develop or strengthen policies to achieve better planning, including on procurement, and update our DRRM law.
We will continue to improve efforts in DRR such as the Pre-Disaster Risk Assessment (PDRA).
We will build on our experience in tracking our expenditures on climate action. Upholding good governance, the Philippines will continue to improve the accounting of disaster aid and enhance our coordination mechanisms to request and accept international assistance [through the guidelines for the Philippine International Humanitarian Assistance Center (PIHAC)].
Under Core Commitment 5, the Philippines will continue to participate in global platforms to develop common humanitarian civil-military coordination standards by taking a lead role in the UN Civil Military Cooperation.
The Philippines will uphold its commitment as a signatory to the ASEAN Agreement on Disaster Management and Emergency Response (AADMER) in coordinating humanitarian assistance in the region.
We will remain committed to support and actively engage in the Global Platform for Disaster Risk Reduction.
Part 2: Joint V20–CVF Statement at the World Humanitarian Summit
Mr. President, the Philippines chairs the Vulnerable Twenty Group of Finance Ministers (the V20) and its associated initiative, the Climate Vulnerable Forum, representing 1 billion people highly vulnerable to the effects of climate change.
We are highlighting at this Summit that dealing with climate change is now indispensable to dealing with humanitarian crises.
The landmark Paris Agreement and its goal of pursuing efforts to limit warming to 1.5 degrees Celsius must be fully implemented if we are to have hope of containing such escalating risks and their humanitarian repercussions.
Even limiting warming to 1.5 degrees, however, would still lead to approximately a doubling of effects. This is why climate finance flows to help communities adapt is as critical as funds for emission controls.
Achieving this balance by 2020 is not only a major humanitarian priority that will save lives. It also makes financial sense.
Consider that 56 billion dollars have been spent on humanitarian response by international donors in the 43 V20 countries between 1991 and 2010. This equates to 31.7% of total international humanitarian financing, which was $176.8 billion. However, in this same period only $13.5 billion was spent by the international community worldwide on Disaster Risk Reduction and preparedness. Where is the logic?
We are convinced that investing in preparedness is a no regret, cost effective investment for everyone. That is why the V20 is spearheading the launch of a major new initiative: the Global Preparedness Partnership. With the support of the international community, we can put a different, anticipatory and more cost-efficient formula into action.
We urge you to join forces in the Global Preparedness Partnership so that the most at-risk countries can achieve a minimum level of readiness to future shocks.
Part 3: Closing
Mr. President, we have put forward today what the Philippines is willing to invest in for the future of humanity. Our group of 43 countries resonates the call to action and will count on partners to work with us on tangible investments such as on preparedness.
Thank you, Mr. President.
2nd Ministerial Communique: Vulnerable Twenty Group of Ministers of Finance
14 April 2016 | Washington DC
2nd Ministerial Dialogue of the Vulnerable Twenty (V20) Group
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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. 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]  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.
 UN OCHA and DARA (2014). Saving Lives Today and Tomorrow. Managing the Risk of Humanitarian Crises. http://resources.daraint.org/sltt/complete_report.pdf
 As contained in COP 21 decision text 1/CP.21 and Article 4 of the Paris Agreement.
 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
Spring Message from H.E. Cesar V. Purisima, Secretary of Finance of the Philippines
The V20 Finance Ministers will gather for the second time this week in Washington, DC. Our attentions will again focus on economic and financial responses to climate change as we follow-up on the landmark Paris Agreement of last December. With temperatures still on the rise, climate change remains a primary threat to our prosperity and to global development.
Addressing the challenges of our climate reality presents enormous opportunities. As the first group of finance ministers dedicated to responding to climate change, we are increasing our level of activity to pioneer innovative responses from across our enlarged membership of more than 40 economies, while remaining true to the core needs of members most threatened by global warming. We are also actively strengthening our partnerships with finance and development institutions and groups, as well as the private sector. We are working for a financial system consistent with the new 1.5 degrees Celsius Paris Agreement target and the reinforcing of the resilience of vulnerable groups around the world.
Without pushing a concrete and viable financial roadmap forward, we risk turning this forum into another talk shop that fails the most vulnerable of our populations. This is a risk we refuse to take. Having worked as an accountant for a large part of my adult life, I know very well that only what gets measured gets done. I do believe however, that there is indeed strength in numbers. Together, we are determined to find clear, definitive solutions for our countries to mitigate and adapt to climate change.
We are very optimistic on the progress of our work. Stay tuned to this week’s events and the outcomes of the 2nd V20 Ministerial Dialogue on Thursday. Join the conversation; help collaborate on global action towards a climate-resilient future.
Founding Communique: Vulnerable Twenty Group of Ministers of Finance
8 October 2015 | Lima, Peru
Communiqué of the Inaugural V20 Ministerial Meeting
We, the Finance Ministers of the Vulnerable Twenty (V20) Group, in our inaugural meeting this 8th day of October 2015 in Lima, Peru, chaired by the Philippines’ Finance Secretary, Cesar Purisima, hereby set forth our common and collective challenges, aspirations, and proposed actions in this Communiqué.
As called for by the Climate Vulnerable Forum (CVF) in its 2013-15 Costa Rica Action Plan, we agreed to form the V20 and discussed the role, objectives and activities of the group moving forward, and agreed to the creation of this new mechanism as a platform for leaders and countries highly vulnerable to climate change around the globe to highlight shared interests and contribute substantively to discussions on finance and other means of implementation, particularly to foster a significant increase in investment in climate resiliency and low emissions development.
On this day, we established the V20 to serve as a new high-level mechanism for dialogue and action to concentrate attention on economic and financial responses to climate change through the dedicated cooperative efforts of economies systemically vulnerable to this global phenomenon.
We believe urgent and ambitious global climate action is now a fundamental human right. Everyone, especially those living in the most vulnerable areas of the planet, has a right to breathe clean air, to drink clean water, and to live in prosperity on a secure and sustainable planet. Ineffective action on climate change deprives us of such rights.
Climate change is the defining challenge of our time. Overcoming it is a matter of survival for people on all continents and vulnerable communities everywhere. Standing on those frontiers most fragile to decades of inadequately checked human-induced climate change, we call out with a plea for humanity to unite. Together, we fight for a new hope.
Who We Are
Representing a significant number of nations most vulnerable to climate change, we are low-and middle-income, least developed, arid, isthmus, landlocked, mountainous, and small island-developing countries from Africa, Asia, the Caribbean, Latin America, and the Pacific. Home to close to 700 million people–or approximately one in ten alive today–our twenty nations are hugely diverse in ecology, biodiversity, culture, geography, language, population and territorial extent.
We are united in our shared vulnerability and exposure to a changing climate. Likewise, we share the commonality of an equally marginal contribution to warming–at less than 2% of current greenhouse gas emissions–and means to directly address the monumental challenges of global climate change, recalling that nearly half our people live in extreme forms of poverty, which the international community has pledged to eliminate by 2030 with the global Sustainable Development Goals.
Climate shocks already exceed our regional/national capabilities at approximately half our target level of global warming of not more than 1.5°C above pre-industrial temperatures. In light of insufficient measures to arrest dangers, the V20 already face:
an average of more than 50,000 deaths per year since 2010, a number expected to increase exponentially by 2030;
escalating annual losses of at least 2.5% of our GDP potential per year, estimated at US$45 billion since 2010, a number expected to increase to close to US$400 billion in the next 20 years;
more than half the economic impact of climate change by 2030 and over 80% of its health impact for V20 and other low-emitting developing countries;
doubling in the number of extremely hot days and hot nights in the last 50 years as the planet warmed appreciably;
countless extreme events which include typhoons with wind speeds that are around 10% stronger than they were in the 1970s translating into more than a 30% increase in destructiveness;
sea level rise that will partially or completely submerge the island nations of Kiribati, Maldives, and Tuvalu, displacing at least 500,000 people;
the displacement of up to 40 million people due to the inundation of low elevation land resulting from climate change driven sea-level rise ;
the threat of increasingly devastating and more frequent disasters, such as storms, flooding and drought.
We note the progress already made by V20 countries in promoting and undertaking climate action that serves as a foundation for future V20 work but draw attention to significant human, technological, institutional, risk-based and other special constraints facing vulnerable developing countries.
Our Call to Action
In this critical year, the minimum deliverable for the UN Climate Change Conference at Paris (UNFCCCCOP21) is an agreement entirely consistent with the non-negotiable survival of our kind. Given this and the extent to which climate change has set back the lives of our people, denied human rights, and devastated our homes and entire nations, we recognize climate action as a foremost humanitarian priority for the international community.
To concretize our own support for this international priority, we, the V20, commit to act collectively and decisively to promote the mobilization of public and private climate finance from wide ranging sources, including international, regional and domestic mobilization; share and exchange best practices on economic and financial aspects of climate action; develop and implement new, improved and innovative approaches; and engage in advocacy and other joint actions.
In a major first step, we agree to study the creation of a sovereignV20 Climate Risk Pooling Mechanism to distribute economic and financial risks, to improve recovery after climate-induced extreme weather events and disasters, and to enhance security of jobs, livelihoods, businesses and investors. This trans-regional public-private mechanism modeled on similar pre-existing regional facilities, featuring index-based risk transferal and other innovative insurance tools, would specifically address acute and chronic hydro-meteorological hazards, as affected by climate change. It would also improve spatial and temporal risk distribution resulting in highly accessible, dependable and cost-efficient insurance while incentivizing, through risk-determined pricing, upscaled adaptation measures.
We support innovative revenue generating fiscal and financial measures to finance climate action. A possible example is financial transaction tax and how the same can generate additional resources sourced from capital markets, while serving as a stabilizing financial measure.
We also call for improved access to international climate change finance from all sources – public or private – towards adaptation and mitigation action. This can be done through streamlining processes, with special considerations to the capacities and realities of vulnerable developing countries, and supporting institutional readiness and administrative capabilities to access available climate finance.
We will strive to develop or improve financial accounting models and methodologies and cost-benefit analysis to enhance accounting of climate change costs and effects and improve valuation of climate risks and co-benefits of climate action, among others. This will build on public and private sector initiatives on environment and natural resource accounting and valuation.
We agree on the annexed V20 Action Plan focused on attaining a significant increase in climate investment in our countries through the voluntary country-owned, country-driven, and country-led design and application of financial innovations, in collaboration with our country partners, international financial institutions, and development banks while leveraging finance in all its forms, expertise, and technology from international resources.
In pursuit of our vision of the world economy as a driving force for a resolution to the climate crisis, we plan to act as one to help lead the world towards a climate resilient future by inspiring strengthened efforts by all. We acknowledge that expanding our inherently limited contributions could nevertheless help to lessen the gap between life and death, prosperity and suffering, existence and annihilation: Every action will count just as every life does.
We look for a new international partnership with development partners, business and public-private arrangements to support the realization of V20 ambitions. We invite international financial institutions, international development actors and other relevant international institutions, including the WBG, the IMF, regional development banks, the UN Secretariat, UNDP and others to work collaboratively in delivering enhanced capacity and other assistance, including capacity building and technical assistance, to facilitate the efforts of V20 members as we work to achieve these objectives and initiatives here outlined.
We strongly welcome the increased climate focus and momentum for action by international financial institutions, bilateral and multilateral institutions, international organizations, the G7 and G20, and business, civil society and faith groups, among others. This includes the G20 commitment to phasing out inefficient fossil fuel subsidies and the launch of the Green Climate Fund.
We expect the realization of internationally recognized commitments on climate change 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 in the context of meaningful mitigation actions and transparency on implementation. We urge a rapid acceleration of progress towards an equal [50:50] balance of resources for adaptation compared with mitigation [by 2020 at the latest]. In light of the scale of the challenges faced and the manifest inadequacy of current efforts to tackle climate change, we also seek further contributions in finance, capacity building, technology transfer and development, and fair share emission reductions, aimed at delivering climate justice for all humankind including robust climate security for those vulnerable groups so heavily exposed both now and tomorrow, especially our women and children, the poor and future generations.
We have established an assigned V20 Working Group to define milestones and commence implementation of our Action Plan ahead of COP21 in Paris based on national circumstances. In guiding the Working Group’s efforts, we recognize the primacy and urgency of building climate resilient countries and the importance of safeguarding workplace health and productivity in light of increasingly adverse thermal conditions brought about by climate change.
We will operate on a voluntary basis in cooperation and in partnership, as well as in recognition of common but differentiated responsibilities and of limits on our achievements in the absence of international support. We will promote learning, coordination and complementarities of efforts. We will meet biannually in the margins of the WBG/IMF Spring and Annual meetings and will monitor follow-up.