Research On Legal System Of International Climate Finance

After industrial revolution, Western countries made significant development bymeans of huge consumption of natural resources. They take over the economicalresources from poor countries by force, leaving more serious poverty and lessdeveloping spacing. Even after independence, these colonized areas still have manyproblems, including dissatisfaction of fundamental needs, overuse of globalenvironment, damage of environment factors like water and earth. Moreover, globalwarming has become the global problem jeopardizing the livability of mother earth,even if there seems to be no instant damage so far, but its accumulative effect will breakup to destroy the balance of energy exchanging between the sun and earth. It would firstshow damages to developing countries, putting the national destiny of these countries indanger, also hampering the tasks of development and needs satisfaction. Meanwhile,international world has already established the legal system with main frame of UnitedNations Framework Convention on Climate Change,(UNFCCC) and Kyoto Protocol,which is the guideline for international action, stating that developed countries shouldprovide funds for developing countries, to compensate their ability deficiency to formthe climate stakeholder community. Rights&obligation about fund were establishedbetween southern and northern countries, whose function fulfillment was hindered bythe openness of implementing mechanism.Legal system of International Climate Fund is based on theories of human rights,global treatment and climate justices. The ultimate goal of Climate Fund is to guaranteethe development right of developing countries at the times of climate change by meansof justices and participation of nations as well as non-nation bodies. This kind of goal isintegrated into each process of fund chain, guiding the legislation and implementationof international legal system within the convention body as well as other internationalrules. This is the foundation to upgrade the Climate Fund from needs to regulation. Italso determines the connotation, legal nature as well as action design of climate fund..However, the extant system abides by the fundamental regulations aboutfund-raising and fund running. At the process of fund donation, developed countriesintegrate climate finance and ODA, in accordance with the Terms of Rights underconvention system about fund using panels (mainly by bilateral assistance andinternational financial organizations), which mix private climate fund and international investment. This neglects the public welfare for global action of climate fund,regardless of the legal standards of being “New and Extra”, abusing the choosingrights of fund-providing panels. At the processes of running, developed countries takeadvantage of the dominating rights and internal managing rules of internationaloperating bodies, to set up restrictions and complicated applying procedures todeveloping countries about fund-using domain, and applicant qualification. At the end,the running norms of international organization’s recommendation and resolutionreplace the core principles of the Convention, with the usage of unilateral dominationand the Organization’s independence. As a result, the legal status of developingcountries is diminished to be beggar. The effecting rule in fund-raising and runningprocess go beyond Convention’s scope and supervision, making the dispart betweenpractical and desired law.This is the result of both the abstraction of convention system itself as well as theabsence of its supervision mechanism. Public-private entities provide financialresource in fragmented channels, most of them go beyond the Convention.International society is not clear about the supervision of fund-providing, and there isno consensus about the interpretation of the valid fund-providing standards of beingNew and Extra. Developed countries insist that the fund only should be accumulatingas the time gone and the account of projects, while developing countries believe thatthe characteristics and panels of climate fund should be independent on normalinvestment and official developing aid. Hence, there is no consensus about the legalcharacteristics and criterions for climate fund. Different running bodies use differentinternal procedures to supervise and evaluate the fund-using, which could not berecognized by international society.In general, convention system has innovatively established a fundamental legalstandard to cope with the ability difference between southern and northern countries,having formed fund current and fund-raising experiences in a certain level. But this hasnot solved the tension between human beings and climate. Consensus should be reachedbetween fund-expanding and fund collection, the implementation system andcompliance of convention system should be consummated, and the rationalaccountability system should be established to improve the fund-collecting andfund-using transparency. The economy body and emission scale of our country haveunique importance to the corresponding action of global warming, which is sensitive inthe international climate fund relationship. How to improve the interaction with development countries and to increase the fund relationship with developing countrieswould be a new legal topic. We need to adjust the model of domestic climate rules andregulations as well as the participation of convention system, to develop a strategy andmeasure which suits both the status as big country and the extant situation of ourcountry.