The Second Plenary Meeting of the Leading Group on Solidarity Levies to Fund Development was opened by Minister of International Development Erik Solheim in Oslo today.He announced that the Government is to support Advanced Market Commitments for Vaccines (AMCs), a scheme that guarantees future public purchases of vaccines for developing countries. The Government will propose to the Storting that Norway commits to a multi-year contribution totalling NOK 350 million.

AMCs are intended to provide an incentive for the pharmaceutical industry to develop much-needed vaccines that meet pre-agreed specifications, and are delivered at an agreed price.

- When the market fails to produce because no-one wants to develop medicines that are cheap enough for developing countries, we have to try to stimulate the development of such vaccines by guaranteeing large-scale future purchases, said Mr Solheim. Norway is to support a pilot project for the development of a vaccine against pneumonia.

The Ministry of Foreign Affairs is hosting a conference on innovative financing mechanisms for development from 6 to 7 February. The conference is being held in connection with Norway’s presidency of the Leading Group on Solidarity Levies to Fund Development.

- The UN Member States have set themselves the target of halving the number of the world’s poor by 2015. Good progress is being made, particularly in Asia. However, progress is too slow, particularly in sub-Saharan Africa. The UN Millennium Goals are underfinanced, and we have to do what we can to assist in mobilising more money for the fight against poverty, said Mr Solheim.

Solidarity levies on airplane tickets, new proposals for a currency transaction development levy, combating tax havens and capital flight, and new schemes for public-private partnerships for microfinance are among the other items on the conference agenda.

At the conference, the Government will primarily advocate solidarity levies on air travel.

- The Government is hoping that more countries will introduce air travel levies for development purposes. Before Norway introduces a new solidarity levy on air travel, more countries have to come off the fence. If more countries introduce air travel levies, so that there is more money in the pot, Norway will advocate using some of the revenues for climate-related development assistance, said Mr Solheim.

To date, about 20 countries have indicated that they plan to introduce levies on air travel. This year, Norway is channelling approximately NOK 140 million of the revenues from its CO ₂ tax on domestic air travel into UNITAID’s international purchase scheme for AIDS, tuberculosis and malaria medicines. The scheme facilitates large-scale joint purchases of medicines at reduced prices.

- We want to stimulate an unbiased debate on currency transaction development levies, and help to generate concrete proposals on how we can fight international tax evasion,” said Mr Solheim.

More information on the conference.

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