Posted on June, 23 2010

'Bunker finance' – revenues from the international aviation and maritime sectors – attracted considerable attention at COP 15 in Copenhagen as a potential new source of climate change finance.

This paper explains the different options for bunker finance, outlines the status of discussions in other fora, then assesses the options against the criteria published in the terms of reference for the AGF.

It finds that bunker finance could be a valuable, reliable and equitable source of finance, and that a recommendation from the AGF would give a boost to discussions elsewhere, potentially securing a double dividend by also unlocking mitigation packages in two sectors that have so far escaped greenhouse gas regulation.