Ladies and gentlemen,
Let me start by thanking the Government of Mexico. For hosting COP16 here in Cancun. And for a broad and inclusive process leading up to this important meeting. I also want to thank my friend President Calderon and the COP President, Minister Espinoza for their strong personal engagement. In guiding this process - and this meeting - towards a successful outcome. An outcome which takes us forward - substantially - in our common efforts to avoid dramatic climate changes.
Securing progress here in Cancun is a responsibility that lies with all of us.
A consensus based process requires that all countries - both developed and developing - show responsibility and willingness to compromise.
This is a challenging meeting. But it is within our reach to agree on a package of decisions.
A package of decisions that takes us forward, and that lays the foundation for a comprehensive climate agreement. Indeed, if we do not use this meeting to move forward together, we have not only lost an important opportunity.
We have also lost precious time.
And we risk losing the confidence of the world. That we are at all capable of pulling together to meet the challenge of climate change.
The outcome from Cancun must be a balanced package of decisions. It must respect the interests and perspectives of all parties. It should cover all the key elements. Including mitigation, MRV, adaptation, financing and deforestation.
Climate financing is one of the key elements. Climate financing is not only about funding. It is also about balancing economic interests and responsibilities.
And of creating trust between countries at all levels of development.
In Copenhagen, the developed countries agreed to mobilise one hundred billion US dollars per year for climate actions in developing countries by twenty-twenty (2020). This commitment was made in the context of meaningful mitigation actions and transparency of implementation.
Together with Prime Minister Meles I had the honour to chair the Secretary Generals Advisory Group on Climate Change Financing. We were asked to study how the one hundred billion can be mobilised. Our report concludes that it is challenging but feasible to reach this target.
There is, however, no single solution. No single source. Reaching the target will require a combination of:
Scaling up existing public instrumentsImplementation of new public instrumentsAnd increased private green investments in developing countries.
The report underlines the importance of putting a price on carbon. Pricing carbon emissions has a double climate effect: It represents a huge potential source of revenue for climate actions in developing countries. And it provides incentives for reducing emissions in developed countries.
Here in Cancun we should agree to establish a Green Fund. And agree on a process for how to fund the Fund. I hope that the Advisory Groups report will be of value in this process.
The other key area I would like to address is deforestation. Deforestation in the developing world accounts for about 15 per cent of total global emissions. More than all the worlds ships, cars, trains and planes combined. Reducing deforestation and forest degradation can provide the largest, fastest and cheapest cuts in global emissions. It will be extremely difficult, if not impossible, to limit global warming to 2 degrees without a significant reduction in deforestation.
Since Copenhagen, more than 70 countries have come together to form a partnership to stop deforestation, and also to ensure the rights of indigenous peoples. More than 4 billion US dollars have been pledged. We now need to secure this progress in a formal decision under the Climate Convention.
Ladies and gentlemen,
It is extremely important that we make substantial progress here in Cancun:
Both for the battle against climate change and for the confidence in the negotiation process.
The task before us in the next couple of days is therefore to agree on a balanced package of decisions. This should include a framework for a Green Fund and a mechanism for reducing deforestation.
If we manage to agree on a balanced package of decisions, Cancun will be a success and represent an important step forward in our common efforts to combat climate change.