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Climate Finance and Direct Access
Matt Spannagle
Climate Change Advisor, AusAID
1 July 2011, Canberra
Direct Access – what is it???
The COP in its decision 1/CP.16 entrusted the
Transitional Committee (TC) with the design of the
Green Climate Fund (GCF) to develop and recommend
operational documents for approval by the COP at its
17th session. The TC at its initial meeting held in
Mexico City on 28-29 April 2011, agreed to organize
its work through four workstreams, including (i)
Workstream I on Scope, Guiding Principles, and Crosscutting issues, (ii) Workstream II on Governance and
Institutional Arrangements, (iii) Workstream III on
Operational Modalities, and (iv) Workstream IV on
Monitoring and Evaluation.
Pathways to Development
Direct Access – what is it???
The modality for direct access is described in the
Adaptation Fund Board’s ‘Operational
Policies and Guidelines’ as:
… Eligible Parties who seek financial resources
from the Adaptation Fund shall submit
proposals directly through their nominated
National Implementing Entity (NIE).
Pathways to Development
Direct Access – what is it really???
developing countries can have funds directly
transferred to their own organisations
Eg – national treasury, agriculture department,
QuaNGOs, parastatals etc
Compared to current arrangements
Pathways to Development
Direct Access – why is it important?
Perception = avoid ‘tax’ – side/non-issue
Scale of funds
Link & integrate directly with government
policies & LEGITIMATE development
– better coordination and targeting
Control of funds – host governments determine
what/how money spent
Pathways to Development
Direct Access – challenges?
Fiduciary responsibility
Cheaper/more effective to use intermediaries?
Pathways to Development
Example - Ethiopia
80M, big, HDI = 171, LDC
Somalia, sudan, djibouti, eritrea, kenya, (yemen)
capable big plans:
MIC 2025
food security issues
large direct programmes already with WFP
aid ~10% of GDP
Pathways to Development
Example - Honduras
Hondras – 9M, LIC, HDI = 106
Nicuragua, El Salvador, Guatamala, (Belize)
aid ~7% of GDP
More US focused and security and trade-related
development issues
Pathways to Development