COP 13: Intervention by the United States Delegation -- Financial Mechanism Fourth Review (Agenda Item 5(a))

Meeting of the Subsidiary Body for Implementation
Tuesday, December 4, 2007
Financial Mechanism Fourth Review (Agenda Item 5(a) )

As prepared.

Thank you Mr. Chairman.

The United States remains firmly committed to enhancing the financing tools needed to address global climate change.

Our work here toward the fourth review of the Financial Mechanism is an important part of our efforts.

The papers we have before us, we believe, are helpful additions to the body of information assessing this challenge.

Mr. Chairman, we do note that there are varying perspectives regarding the level and nature of the funding necessary to mitigate and adapt to climate change.

In reviewing this information and reflecting on the recent workshop in Bonn, we believe several factors are notable:

• First, as has been widely observed, the private sector will provide the bulk of the needed investments, and the major economies of the world, including major emerging economies, have an especially strong capacity for generating these investments -- domestically and internationally;

• Second, the stability and strength of the local enabling environment for investment is critical, and governance is an essential part of that. Open markets, and the elimination of tariff and non-tariff barriers will promote the adoption of clean technologies;

• And third, as was observed at the workshop, carbon pricing alone will not be sufficient. Additional investment tools are needed -- especially in the early phases of technology development.

We look forward to hearing the views of other Parties as we work to facilitate our next Review.