September 29, 2008

Lessons from Conditionality Provisions for Southnorth Cooperation on Climate Change.

by Maike Sippel and Karsten Neuhoff

- This article examines what may be taken into account, when designing a mechanism of international public finance to support south-north cooperation on domestic climate policies in developing countries. Lessons are derived from existing mechanisms of conditional transfers. Experience with conditionality provisions that the World Bank, the IMF, and bilateral donors apply to development assistance is varied. Conditionality provisions applied during the EU enlargement process are generally evaluated more positively, as the shared objective is increased credibility and participation. Clearly defining global emissions reductions as a shared objective could offer similar opportunities for cooperation.

Sippel, M. and K. Neuhoff (2008). "Lessons from Conditionality Provisions for Southnorth Cooperation on Climate Change." Electricity Policy Research Group, Cambridge University, Working Paper EPRG0825, Sept 2008.