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6.3.3 Direct International Transfers
The UNFCCC states that Annex II Parties (basically Annex I Parties except for
the Parties in Central and Eastern Europe) shall provide new and additional
financial resources, including the transfer of technology, needed by the developing
country Parties to meet the agreed full incremental costs of implementing measures
taken under the Convention and that are agreed between a developing country
Party and the international entity or entities referred to in Article 11 of
the Kyoto Protocol (UNFCCC, 1997, Article 11). So, the extent to which developing
country Parties effectively implement their commitments under the Convention
will depend on the effective implementation by developed country Parties of
their commitments under the Convention related to financial resources and transfer
of technology.
6.3.3.1 Financial Resources
Sustainable development requires increased investment, for which domestic and
external financial resources are needed, particularly for developing countries
(UN, 1992, Agenda 21, Chapter 34). In its Resolution 44/228 of 1989 giving a
mandate to the convening of the UN Conference on Environment and Development
(UNCED) in Rio de Janeiro, the UN General Assembly notes, inter alia: “that
the largest part of current emission of pollutants into the environment originates
in developed countries, and therefore recognizes that those countries have the
main responsibility for combating such pollution”, and that “new and
additional financial resources will have to be channelled to developing countries
in order to ensure their full participation in global efforts for environmental
protection.” Developed country Parties reaffirmed their commitments in
the related provisions of the Kyoto Protocol. “The implementation of these
existing commitments shall take into account the need for adequacy and predictability
in the flow of funds and the importance of appropriate burden sharing among
developed country Parties” (UNFCCC, 1997, Article 11).
Accordingly, Agenda 21 (UN, 1992, Chapter 33, especially its 15th Section)
carries the consensus formulation that for developing countries: “ODA is
a main source of external funding, and substantial new and additional funding
for sustainable development and implementation of Agenda 21 will be required.”
In practice, however, there has been a clear trend of a continuing decline in
ODA levels since UNCED. Total ODA dropped from 0.35% of total gross national
product of the developed countries in 1991 to 0.29% in 1995, with further declines
in 1996 and 1997 (OECD, 1998c). Some developed countries are contributing to
solving the environmental problems that developing countries face with financial
resources other than ODA. For instance, the Japanese government is implementing
the Green Aid Plan that aims to achieve both economic development and environmental
protection in developing countries in Asia. Most developing countries maintain
that a sufficient level of financial resources is key to effective implementation
of Agenda 21 and is a priority issue to be resolved to enable the implementation
of the global consensus reached at the UNCED.
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