Transcript Getting Africa ready for the Green Climate Fund

Getting Africa ready for the
Green Climate Fund
Report prepared for Financing
Climate Change: Africa’s Access to
Convention Funds
3rd December 2012
Getting Africa ready for the Green Climate Fund
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The Green Climate Fund could represent a watershed in the flow
of climate finance to Africa
Through both increasing their magnitude and changing their modality
two key concerns with current flows of
climate finance to the continent
Figure 1. Africa currently receives far less
climate finance than it will require
60
— they are too low given future needs
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the GCF may overcome both of these:
— recognition of the ‘urgent need’ in
African states (and elsewhere) for
adaptation and discussion of minimum
floors
— the use of direct access in what may
become ‘the main global fund for
climate change finance’
40
USD billion
— they are too fragmented leading to a
lack of country-ownership
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20
10
0
Current flows
Adaptation
Future needs
Mitigation
Source: CPI (2011), UNEP RISOE database and Vivid
Economics/AfDB (2011) and (forthcoming)
Getting Africa ready for the Green Climate Fund
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There are two possible forms of direct access: ‘standard’ direct
access and ‘enhanced’ direct access
The Governing Instrument supports the former and asks the Board to consider the latter
direct access involves placing more
responsibility for climate finance flows
with national institutions
standard direct access involves the
implementation body being national
entity
— responsible for identifying,
programming and monitoring and
evaluating projects/programmes
Figure 2.
Multilateral
Access
Different forms of access
Fund
Manager
Implementing
Body
GCF?
Executing
Body
Executing
Body
Direct
Access
Fund
Manager
Implementing
Body
Executing
Body
Implementing
Body
Executing
Body


— Adaptation Fund adopts this model
‘enhanced’ direct access also places
funding decisions at the national level
— no climate fund currently adopts
this model
Enhanced
Access
Fund
Oversight
Fund
Manager
International
Domain
Source: Based on UNDP/ODI (2011)
National
Domain
?
Getting Africa ready for the Green Climate Fund
Seven actions/options for the GCF Board to promote African
access to the GCF
Especially through direct access
1.act quickly to provide resources to support direct access
2.consider a more flexible approach to direct access where needed
3.explore opportunities to support existing funds that support climate
change activity through direct access
4.provide a minimum floor allocation to direct access
5.allow for NIEs already accredited under the Adaptation Fund to be
‘passported’ to the GCF
6.ensure that accreditation and project cycle processes are quickly
developed, transparent and well-understood
7.allow for accreditation applications in a variety of languages
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Getting Africa ready for the Green Climate Fund
Three actions for African countries
1. prepare a credible, robust
pipeline of funding opportunities
2. take early steps to create the
infrastructure needed to access
the GCF
3. build a cross-departmental
dialogue on the opportunities
provided by the GCF and direct
access
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Getting Africa ready for the Green Climate Fund
Roles for the African Development Bank
These might be key roles for the Africa Green Facility that the AfDB wishes to develop
1.support the capacity of African
NIEs before and after
accreditation
2.increase its attractiveness as a
Multilateral Implementing Entity
(MIE) for African partners
3.support the development of
Africa-specific climate change
and/or green growth action plans
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Getting Africa ready for the Green Climate Fund
Enhanced direct access offers more opportunities but also more
risks
It is an, as yet, untested modality for climate finance
enhanced direct access could further promote country ownership and ensure that the
GCF remains lean but creates new challenges in ensuring money is spent well
the GCF board may want to:
— identify the appropriate criteria for funding entities and determine the relationship
between itself and such funding bodies
— a small grants programme could be used to trial this approach
African countries may wish to
— decide whether a national climate fund (NCF) is appropriate for its country
— ensure that their governance environment will provide confidence in an NCF
the AfDB (potentially through the AGF) can
— support capacity building efforts in NCFs
— provide trustee arrangements for NCFs
— co-fund projects and programmes with NCFs
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Getting Africa ready for the Green Climate Fund
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Author contact details: John Ward
T: +44 7790 613951
E: [email protected]
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