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Global Climate Change Alliance: Intra-ACP Programme Training Module Climate Change Finance Module7 – Synthesis Ms Isabelle Mamaty Senior Expert Climate Support Facility An initiative of the ACP Group of States funded by the European Union Recap of the framework 2 Environment – climate change – development linkages Climate change: - an environmental issue - a development issue Source: Millennium Ecosystem Assessment (2005) Figure B, p. 7. 3 Climate Change, sustainable development and MDGs Climate change Both adaptation and mitigation support more sustainable development Biophysical effects Environment Socio-economic impacts Sustainable development Social dimension In turn, the pursuit of sustainable development enhances society’s response capacity 4 Economy Potential impacts on MDGs The development–adaptation continuum Vulnerability Response to impacts Addressing the drivers of vulnerability Building the response capacity Managing climate risk (e.g. DRR) Specifically confronting climate change Developmental benefits => Developmental and climate adaptation benefits => Primarily adaptation benefits, developmental benefits as a ‘side effect’ => Quasi-exclusive focus on very specific CC impacts, adaptation benefits only 100 Benefits in the absence of climate change Adapted from: McGray et al (2007), OECD (2009a), Olhoff & Schaer (2010) 5 0 Addressing the climate challenge without compromising development objectives Mainstreaming climate change into national/sectoral/subnational and local levels Climate resilient development: selection of appropriate adaptation options Low emission development: selection of appropriate mitigations options NAMAs may be first step NAPAs may be first step 6 Matching finance with needs 7 Mainstreaming CC into budgetary process Mainstreaming climate change into national/sectoral/subnational and local levels Climate resilient development: selection of appropriate adaptation options Low emission development: selection of appropriate mitigations options NAMAs may be first step NAPAs may be first step Development of national/sectoral development plan Domestic resources Allocation of funds under annual budget 8 External resources External climate financing sources External climate financing sources National climate funds multilateral/bilate ral funds Market-based instruments (CDM, voluntary market) 9 Private-public partnership initiatives Key features of External climate financing sources Demonstrate additionality GEF funds – concept of “additional cost” is referring to the costs of measures that would not be necessary in the absence of climate change. CDM & voluntary market – concept of additionality: requirement that the GHG emission after the implementation of the project activity is lower than those that would have occurred in the most plausible alternative scenario to the implementation of the project activity Use of baseline scenario hypothetical case representing the volume of GHG that would have been emitted if the project were not implemented (use of specific methodologies) - GEF funds; CDM/voluntary + REDD key challenges market reference levels; Leakage permanence safeguards governance, MRV External climate financing sources Specific application process incl. specific project document: exp. Project Identification Form (PIF)/Project design document (PDD) Selecting funds Adaptation Adaptation fund; Least developing Countries Fund; Special climate change Fund; Adaptation & Mitigation EU-Global Climate Change Alliance (GCCA), Market based instruments (CDM, voluntary market); (future) Green Climate fund; (future) African Green Fund, International climate Initiative; International Climate Fund (ICF) Mitigation CC focal Area-GEF5; Clean Technology Fund; Global Energy efficiency Fund; REDD: World Bank’s Forest Carbon Partnership Facility Readiness Fund and Carbon Fund; World Bank’s Forest Investment Programme; UN-REDD Programme Conclusions 12 Planned actions/Way forward 13 Seminar evaluation 14 • Thank you • Contact: Dr. Pendo MARO, ACP Secretariat [email protected] or +32 495 281 494 www.gcca.eu/intra-acp