- We need a global contract

Attending the High Level Event on Clima Change for finance ministes on Bali, the Norwegian finance minister, Kristin Halvorsen, stressed the need for a global contract.

- The number one priority is to start a process here in Bali that will lead to a broad, ambitious and equitable agreement – a global contract – which will help the world to effectively reduce emissions from greenhouse gases. In order to reach such an agreement we have to build confidence between the various negotiation groups, she said in her statement.
 
- Rich countries have to reduce emissions substantially and contribute to climate friendly growth in developing countries. Carbon pricing should be a part of an equitable and effective global emissions reduction scheme. Establishing a global price of carbon will induce countries, businesses and individuals to invest in low carbon assets.
The countries that have undertaken quantitative commitments under the Kyoto protocol are responsible for less than 30 per cent of global emissions, and this percentage is decreasing. Therefore, the new agreement, should include all major emitters. It is the sum of allowances issued which will decide the global level of emissions. With tight caps we get lower generated emissions and smaller permit supply, higher price and more revenues to net seller of permits. The distribution of the allowances between countries is primarily a question of income distribution and equity.

Her proposal is as follows: To support funds for adaptation a small portion of permits could be withheld from national quota allocation, and auctioned by the appropriate international institution. Even a small percentage of auctioning will be a large source of finance for adaptation in developing countries.

- To stress the need for strong and early action, Norway has signalled ambitious national climate goals.  We will contribute substantially to development of new technologies such as technologies for capturing and storing carbon, said minister Halvorsen.

Norway also attaches great importance to efforts aimed at reducing emissions from deforestation in developing countries The Government two days ago announced that Norway is prepared to increase its support to NOK 3 billion (corresponding to USD 500-600 million) a year on conditions that satisfactory mechanisms, for example under the UN or the World Bank, are established for certification and for handling large transfers of funding for forest-related measures.

In the start-up phase, resources will need to be used to develop a framework, including monitoring and control arrangements. Norway advocates the inclusion of commitments to achieve reduced emissions from deforestation in developing countries in a global climate change regime for the period after 2012.

- A rich country like Norway should live up to its responsibilities. We hope that the measures we are taking will make a positive contribution in this new process toward agreement on an effective framework for large scale international reductions of greenhouse gas emissions, said Kristin Halvorsen. Curbing deforestation is a highly cost effective way of reducing greenhouse gas emissions, and has the potential to offer significant reductions fairly quickly.