South Asia

This paper is a background review representing part of the initial phase of the Financing the Urban Transition work program. The review builds on a growing body of research that highlights both the importance of national sustainable infrastructure and the need to develop more effective and efficient financing mechanisms for delivering compact, connected cities that meet the UN’s Sustainable Development Goals. While progress has been made in both these areas over the last five years, there remains a policy gap between the international/national level and the municipal level.

Despite substantial progress in improving nuclear security in recent years, there is more to be done.  The threats of nuclear theft and terrorism remain very real.  This paper recommends learning from the much stronger national and international efforts in nuclear safety, and in particular taking steps to build international understanding of the threat; establish effective performance objectives; assure performance; train and certify needed personnel; build security culture and exchange best practices; reduce the number of sites that need to be protected; and strengthen the international framework and continue the dialogue once leaders are no longer meeting regularly at the summit level.

This paper proposes a new architecture for international climate policy that might usefully be considered by delegates at COP 17 in Durban. It highlights a top-down approach that is designed to produce a fair distribution of burdens across countries, while achieving objectives of: (a) economic development; (b) decreasing wealth inequality; and (c) emission reductions consistent with holding the expected increase in global average temperature to 2 degrees Celsius. In addition, this discussion paper discusses several key design elements that will be important, especially from the perspective of developing countries, to the success of COP 17 and subsequent international climate negotiations. These design elements include agreements on burden sharing, choice of policy instruments, financial mechanisms and technology transfer, penalties for noncompliance, and linkages between trade and climate change.

The finance of climate mitigation and adaptation in developing countries represents a key challenge in the negotiations on a post-2012 international climate agreement. Finance mechanisms are important because stabilizing the climate will require significant emissions reductions in both the developed and the developing worlds, and therefore large-scale investments in energy infrastructure. The current state of climate finance has been criticized for its insufficient scale, relatively low share of private-sector investment, and insufficient institutional framework. This policy brief presents options for improving and expanding climate finance.