Energy Comment

Price Formation in Oil Markets: Some Lessons from 2009 — This comment analyses the oil price dynamics in 2009 arguing that 2009 represents a remarkable year in at least two respects: it witnessed the sharpest increase in spot oil prices in decades; and in the second half of 2009 it exhibited a high degree of relative stability despite a very uncertain and volatile global economic environment. The 2009 price dynamics indicate that the existing frameworks for the analysis of oil prices need to be modified to take into account new features of the market and the interaction among the various players. Furthermore attempts to identify the relative importance of fundamentals versus speculation in explaining the last price cycle are of limited use. Instead one should attempt to endogenise the role of financial players and understand the conditions under which these players behave in certain ways.

No Trust Without Respect: Adaptation Quick Start Funding at the Cross Roads — In this Oxford Energy and Environment comment Dr Benito Müller (Director Energy and Environment at OIES) discusses some of the key options regarding how the (adaptation) quick start funding pledged under the Copenhagen Accord should be managed if we are to avoid a further deterioration of trust between the developed and the developing world.

On the Need to Certify: Oversight of compliance with financial commitments under the UN Framework Convention on Climate Change — The history of financial support for developing countries is seen by many as littered with disappointments and broken promises that have eroded trust to an unprecedented level. The aim of this Comment by Dr. Benito Müller. is to highlight this problem and to propose a solution through a system of certification and registration to be applied to payments towards such commitments.

The Time is Right!: Devolution of funding decisions to designated national/regional climate change funding entities — At the heart of any financial architecture debate is the question: who decides who gets how much and for what purpose? In this Comment Dr. Benito Müller. discusses the need to devolve funding decisions to the recipients as well as the need for joined-up decision-making through designated national funding entities.

Procrustes’ Bed & Ockham’s Razor: The debate on existing institutions in climate finance — In the debate on institutional arrangements for international climate finance a powerful mostly Northern school of thought contends that one should not create new institutions but only make use of existing ones. This Oxford Energy and Environment Comment by Dr Benito Müller analyzes the the basis of this contention and draws some implications for the current negotiations.