Federal Department of the Environment,Transport, Energy and Communications DETEC

Federal Office for the Environment FOEN

Funding Scheme for the Bali Action PlanOverview of the Swiss Proposal

Bonn, 5 April 2009

International Affairs Division

2 Funding Scheme for the Bali Action Plan | A Swiss ProposalThomas Kolly, FOEN

The Swiss Proposal in brief

Polluters pay principle• Levy on GHG emissions: 2 US$/ton CO2

Common but differentiated responsibilities• Exemption from the tax up to: 1,5 ton CO2/cap• Net transfer of money from high income countries

(>20’000 US$/cap) to middle income countries (15’000-20’000 US$/cap) and low income countries (<15’000 US$/cap)

Transfer through a Multilateral CC Fund• Prevention pillar: risk reduction• Insurance pillar: risk transfer

3 Funding Scheme for the Bali Action Plan | A Swiss ProposalThomas Kolly, FOEN

General overview

Low income< 1.5 tCO2/cap

Multilateral Fund(18.4bn)

1. Prevention(9.2bn)

2. Insurance(9.2bn)

High income

National Fund 40% (9.3bn)

60% (14.0bn)

Middle income

National Fund 70% (3.0bn)

30% (1.3bn)

Low income> 1.5 tCO2/cap

National Fund 85% (17.6bn)

15% (3.1bn)

2 x 9.2bn