Transcript Title

Financial Mechanisms
to address Climate Change
Arab Climate Resilient Initiative
“Towards Sustainable Energy – Resources, Challenges & Opportunities”
Manama, Kingdom of Bahrain
Benoit Lebot
UNDP Climate Change Advisor
[email protected]
Earth
Venus
Diameter
Distance to Sun
Temperature
Venus
12 100 km
Earth
12 700 km
Mercure
5 000 km
110 M km
150 M km
50 M km
460 °C
15 °C
180 °C
1 1
-36 m
The Mediterranean Today
Source: GoogleEarth 4
The Mediterranean 15 000 years ago
.
-5 °C compared to today average temperature
Source: France 2 Malaterre
5
http://hdr.undp.org
UNDP HDR Objective for 2050:
• In the north, - 80% in emissions
CO2/Cap/year
North
16.1 tCO2eq/Cap
•In the south, - 20% in emissions
Arab States
9 tCO2eq/Cap
South
4.2 tCO2eq/Cap
Today World
Average
2007
2020
2050
Target
50%
Global
Emissions
2050
7
World Greenhouse Gas Emissions
14%
CH4
8%
F Gas
1%
18%
N2O
CO2
From
LUCF
CO2
From
Combustion
59%
Greenhouse gas emissions in the Arab States
20%
CH4
10%
0%
CO2
From
LUCF
3%
N2O
CO2
From
Combustion 67%
Source: CAIT WRI
Source: IPCC AR4, Synthesis Report (shares are for 2004)
All sectors and regions have the potential to contribute
Note: estimates don’t include non-technical options such as lifestyle changes
1
2
3
4
Contribution of Technology Wedges
70
CO2 emissions (Gt CO2/yr)
60
Baseline Emissions 62 Gt
50
40
30
20
BLUE Map Emissions 14 Gt
CCS industry
and transformation 9%
CCS power generation 10%
Nuclear 6%
Renewables 21%
Power gen. efficiency &
fuel switching 7%
End-use fuel switching 11%
End use electricity
efficiency 12%
End use fuel
efficiency 24%
10
WEO2007 450 ppm case
IEA ETP2008 BLUE Map scenario
0
2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
We are not short of Financial Instruments to
address Climate Change:
Sources
International
National
Public
Finance
- Official Development Aid
- Multilateral Funds (Global
Environment Facility, GEF)
- Phase out subsidies on
Private
Finance
-Carbon Finance (CDM,
- Demand Side Management
- New Insurance services
- Tax Credit
- Green municipal funds
Public
Policies
- Tax on Financial
voluntary, REDD, ETS…)
- Private Equity Funds
- Green or White (Energy
Efficiency) Certificates
- Foundations
conventional energies
- Tax rebates & Tax Credits
- Subsidies on Clean Technologies
- Low or zero interest rate for loans
- National Tax on Carbon
- Energy Tax
- Auctioning of GHG quotas
- Feed-in Tariff for Renewable
transaction (Tobin)
- Tax on Airline tickets
- Global Tax on Carbon
- IMF Special Drawing Rights Energy
- Wipe out exterior debts
14
Policies &
barriers
Incentives
Carbon finance
Research,
development ,
demonstration
GEF, ODA
FiTs, taxes, loans,
CDM
PoAs, sectoral
crediting
Technology
transfer
Rating, Labeling, Benchmarking
apply to a large number of markets
50%
45%
1. Set Right Price Signal $
2. Knowledge & understanding
3 .Rating & Benchmarking
4. Research & Development
5. Set Standards
6. DSM, $ incentives, CDM….
40%
35%
30%
25%
20%
15%
R&D
Percentage of Market
6 Steps to move towards
a low carbon economy
10%
5%
0%
Low Carbon Footprint
High Carbon Footprint
Key operational provisions for development
from the Copenhagen Accord:
1. $30bn pledged by developed countries between 2010 &
2012 for mitigation and adaptation inclusive.
• New and additional
• Priority access for SIDS, LDCs, Africa.
2. 2020 Target : $100bn/year
• “in the context of meaningful mitigation actions and
transparency”
• Come from a wider variety of sources
3. Creation of Copenhagen Green Climate Fund (CGCF) as
an operating entity of the financial mechanism
• GEF no longer only operating entity
• Support all main Bali Road Map areas
Key operational provisions for development
from the Copenhagen Accord:
4.
Creation of a Technology Mechanism in support of
mitigation and adaptation
• Country-driven and based on national priorities
5. Establishment of a forestry mechanism around REDD+
6. Monitoring, Reporting & Verification (MRV) of actions and
financial flows
20
National Appropriate Mitigation Actions (NAMAs)
may condition future financial mechanism
•
Developing countries invited to develop low emission
development strategies that include NAMAs
•
Developed countries will provide financing, capacity
building and technology for some NAMAs, although the
means for deciding which is unclear
•
Supported NAMAs will likely be internationally recorded
in a registry, and their implementation monitored,
reviewed, and verified (MRV)
UNDP’s message to National Government:
Let’s get ready for any future financial mechanism
• Green Fund will not be a silver bullet
• National coordination is essential for governments to
access, coordinate, sequence & combine climate
finance (e.g. MDCFs next slide)
• National Strategies can guide the flow of funds:
=> National Communications to UNFCCC, TNA, NAMA,
NAPA, IF&F…
Multi Donor Trust Fund as a national instrument
Comparing 3 possible formats
1
National MDTF
2
UNDG MDTF
Government led
Steering Committee
with UN as Co-Chair
UN & Government
co-chair the Steering
Committee
In line with POPP
Who receives the
funds
National Entities (for
direct access);
Part UN Orgs
Part UN Orgs (they
can in turn pass
resources to national
entities)
UNDP (which can in
turn passes
resources to national
entities)
Governance
Structure
Government for
resources passed-on
to national Entities
Part UN Org
Part UN Orgs
receiving funds
UNDP
Donors
1+
1+
1+
Guidance during
establishment
UNDP MDTF
Office
UNDP MDTF
Office
UNDP PB/ DRM
UNDP MDTF Office web-site: http://mdtf.undp.org/
3
UNDP TF
Multi Donor Trust Fund as a national instrument:
Comparing 3 possible formats
1
National MDTF
2
UNDG MDTF
3
UNDP TF
Strategic
Document
Government
document
UN document
UNDP document
Legal
Documents
TOR
MOA (Gvt and AA)
SAA (donors & AA)
MOU (PUNO & AA)
TOR
SAA (donors & AA)
MOU (PUNO & AA)
Prodoc
Contr. agreement
(donors & UNDP)
Indicative
financial size
(over 5 years)
> $100 million
> $20 to $30
million
> $3 to $5 million
UNDP MDTF Office web-site: http://mdtf.undp.org/
As Climate Changes, Can We?
Kofi Annan, UN SG
Wednesday, November 8, 2006
A