Transcript Scaling - Up Private Climate Finanve

Asia Pacific Carbon Forum 2016
Jeju Island, Republic of Korea
Plenary 1- High Level Post Paris Dialogue & SDGs:
UNDP Perspective
Dr. Sarwat Chowdhury
Policy Specialist
UNDP Seoul Policy Centre
6 September 2016
2030 Sustainable Development
Agenda
Rebalancing and
integration of the three
dimensions of sustainable
development
SDG AGENDA PRINCIPLES
UNIVERSALITY
INTEGRATION
 Implies that goals and
targets are relevant to
all governments and
actors: integration
 Universality does not
mean uniformity. It
implies differentiation
(What can each country
contribute? – CBDR
principle)
 Policy integration
means balancing all
three SD dimensions:
social, economic growth
and environmental
protection
 An integrated approach
implies managing tradeoffs and maximizing
synergies across targets
‘NO ONE LEFT
BEHIND’
 The principle of ‘no one
left behind’ advocates
countries to go beyond
averages.
 The SDGs should
benefit all – eradicating
poverty and reducing
inequalities.
 Promotion and use of
disaggregated data is
key
UNDP’s climate change programme support
1
Work on climate change in 143 countries & territories
2
$7 billion CC Mitigation including co-financing
Access to
electricity (onand off-grid)
3
$ 3.5 billion CC Adaptation including co-financing
4
Energy
efficiency and
conservation
Develop Low-Emission Climate-Resilient Strategies
UNDP’s Low Emission Climate
Resilient Development Strategies
Integrated
Strategies
Ecosystem Based
Adaptation
Resilient
Livelihoods
Resilient Water
Management
Climate
Information &
Early Warningg
Resilient Energy
& Infrastructure
Sustainable
transport
systems
MDG Carbon Introduction (no longer a
stand alone programme)
• Carbon finance is one instrument which was used to assist
developing countries to transition to low-emission,
climate-resilient pathways
• MDG Carbon
• UNDP’s corporate programme for carbon finance
• Established in 2007
• Provided specialized technical assistance globally
3 core objectives:
• Access. Expanding to under-represented developing countries
• MDGs. Promoting sustainable development outcomes
• Scale. Promoting replication and solutions at scale
Operational Model
Sustainable
Development
and Capacity
Development
Programme
Development
And Actions
Thematic Area II: Sector Transformations
(Nationally Appropriate Mitigation Actions)
MDG Carbon, through sustainable development, capacity-development and its
direct programme development and actions seeks to address 2 thematic areas
Linkages
Thematic Area I: Project-Based Carbon Finance
(Programme of Activities) - discontinued
Climate Change: Paris Climate Agreement
•
UNDP is one of the largest service providers in UN
system on climate change supporting 140 +
countries transition toward low carbon, sustainable
development.
–
•
It draws upon its decades of experience in delivering results
under Global Environment Facility managed funds, Adaptation
Fund , UN-REDD Programme and other global and bilateral
programming.
Climate goals & targets of 188 countries are covered
under national climate plans (INDCs) submitted to
UNFCCC on the Road to COP21
–
UNDP supported nearly 25% of INDCs submitted from developing
countries, and will support partners in their implementation to
achieve national targets
•
UNDP is an accredited agency of the Green
Climate Fund grant assistance projects, a
central finance mechanism to achieve scaledup finance for Paris Climate Agreement goals.
Six projects approved by GCF so far.
SDG 13: Climate Action
Post Paris Carbon Finance programme that provides ideas
for our future activities to support Article 6 of the PA
• The challenge:
-The annual target of US$ 100 billion
by 2020 in support by developed
countries to developing countries is
already inadequate.
-Under current OECD growth
projections, the world will need to
invest $5 trillion/yr until 2020 in
water, agriculture, power, transport,
telecommunications, buildings,
industrial, and forestry sectors under
BAU with an additional $700 b
required to ‘green’ the global
economy
• Carbon markets:
International climate finance
through carbon markets is a
successful & cost-effective way to
accelerate low carbon investments
• CDM experience:
With more than 8,000 projects registered
& 1,645 m tonnes of CERs issued from
implemented projects by UNFCCC, the
CDM leveraged almost US$ 200 b of
investments in developing countries
• In the post-Paris era, carbon markets
can present the necessary incentive to
engage in the global climate goals.
Initiatives outside UNFCCC could inform
efforts within. The Carbon Market
Platform established under the G7, for
example, is a strategic policy dialogue
that can complement the UNFCCC in
developing guidance on accounting for
crediting mechanisms and international
transfers.
Post Paris Opportunity
•
•
•
PA reaffirmed carbon markets as an
instrument for meeting climate goals.
But did not finalize a new system of
international carbon markets or
cooperative approaches. The role of the
new mechnegotiated
anism remains to be Paragraph 6.4
establishes a mechanism “to contribute
to the mitigation of greenhouse gases
and support sustainable development”.
•
•
To fully operationalize the new
Sustainable Market Mechanism (SMM),
govts will require assistance to account
for emission reductions achieved, with
robust requirements to avoid doublecounting & ensure environmental
integrity
Real work of country level change begins
now. Accelerating actions on the ground
requires significant efforts by Parties to
engage state & non-state actors
Proposed New Initiative: on Post Paris Carbon
Finance
A new initiative is proposed, one that can seize on the opportunities PA offers. This Post-Paris
Carbon Finance Programme, will undertake the following tasks:
•
Developing sectoral standardized baselines, default values and standards for simplified
but robust and transparent MRV of early actions (for dual results – GHG emission
reductions and Sustainable Development benefits);
• Establishing national registries to allow linking with other Party systems;
• Mapping out initiatives of Non-Party stakeholders that can contribute to mitigation
actions, including quantified emission reductions (following a robust standard) against
an emission reference level in a Party’s NDC;
• Setting up a PPCF to encourage cost-effective mitigation actions at scale;
• Collaborating with providers of finance and technology to effectively support mitigation
actions;
• Organizing in-country workshops and regional dialogues on catalyzing carbon finance
post Paris;
• Supporting Parties to participate in international initiatives to build enhanced capacity to
engage in new mechanisms and encourage enhanced ambition.
Proposed Programme
Initially, 10 countries from 5 regions and 5
SIDS will participate in the 6-year
programme. They will receive following
support:
•
Developing sectoral, standardized
baselines for all NDC-covered sectors;
• Preparing a pipeline of at least 5 early
actions in each country; including
preparation of technical & financial
feasibility studies to ensure financial
viability of the actions and early
engagement of the private sector
•
Preparing a list of pre-approved
technical service providers for at least 1
technology in each sector and country;
• Engaging w key 2 industrial sectors in
each country to develop monitoring &
reporting standards for accounting of
mitigation outcomes;
Other support:
• Identifying 2 mitigation measures
with the highest mitigation benefits
for each participating industrial
sector
• Establishing national registries to
allow linking with other Parties
engaging in trading of ITMOs;
• Developing national verification
standards for internationallyrecognized verifiers of mitigation
outcomes & training of 2
companies/participating country to
achieve internationally- recognized
verifier status;
• Capacity building of gov’t, privatesector & CSO engage in new
mechanisms & organizing bi-annual
regional dialogues to increase
ambition of participating countries.
Climate Change in Asia Pacific
VULNERABILITY
456.4 million live on less than $1.90 a
day.
505 million are undernourished
10% of South Asia's population lives
on degraded land (2010)
58% of population live in rural areas
with 81% are dependent on
agriculture for their livelihoods
Population increase in East Asia and
the Pacific (in millions) from 2013 to
2030.
CLIMATE CHANGE IMPACTS
27.5% of total global economic loss
from weather- and climate-related
disasters (2000-2008).
INCREASED DEMAND
Declines in productivity and increased
water scarcity in many countries due
to increased demand and lack of
effective governance.
FOOD PRICES
14%-20% drop in irrigated rice yields
over the next four decades, pushing
up food prices and increasing the
number of malnourished children.
SEA-LEVEL RISE
A rise of 0.5-2 m in sea level over this
century could displace 53 to 125
million people.
NATURAL DISASTERS
Over 1,300+ natural disasters killed
331,000+ people and affected 1.4+
billion from 2005 to 2014
MITIGATION OPPORTUNITIES
• Forested area
5 29.7% (of total land area in the East
Asia and the Pacific region (2011))
2.6% change (1990/2011)
14.6% of total land area in the South Asia
region (2011)
3.3% change (1990/2011)
• Primary energy supply
76.3% fossil fuel and
23.7% renewable sources in South Asia
(2012)
83.8% fossil fuel and
16.2% renewable sources in East Asia and
the Pacific (2012)
• Carbon dioxide emissions
per capita (2010)
4.9 TONNES in the East Asia and
the Pacific region
1.7 TONNES in the South Asia
region
Challenges and Opportunities in Asia Pacific
•
•
•
•
•
•
•
•
Awareness of climate change and the realization that both state and non-state
entities need to act is at an all-time high.
Non-conventional actors, such as subnational governments, are also paying closer
attention to climate change and acting on their own (e.g. cities).
Need to enhance inter-sectoral dialogue and coordination at national and subnational
levels to improve synergies between mitigation and adaptation interventions.
Similarly, REDD+ national strategies should be designed to encompass major drivers of
deforestation outside the sole forest sector.
There are immense data, technology and institutional capacity needs related to climate
and mitigation scenarios and the understanding of risks and impacts. Engaging the
private sector in adaptation is constrained by a lack of awareness and capacity, as well as
by a lack of an enabling policy and regulatory environment.
An increased shift towards non-grant financing in the scale up of energy access, energy
efficiency and renewable energy and an increased availability of public and private
investments in sustainable cities and urban transport.
Governments have a short-term energy development vision and weak commitment to
enforcing GHG mitigation policies.
Many countries have high expectations for the Green Climate Fund (GCF) to finance their
scaled-up efforts to achieve the SDGs.
In conclusion…
•
The resurgence of international carbon markets and a new ‘ sustainable
development’ mechanism that ‘supports emission reductions and sustainable
development’ might provide countries with more flexibility to reach their
climate targets.
• This new ‘Sustainable Development Mechanism’ could channel private sector
investment into low carbon technologies and help close the opportunity gap
between current levels of private sector investment in renewable energy (US$
400 billion annually) and the US$ 16 trillion needed to meet targets and put
countries on a low-to-zero carbon path.
• Looking ahead, the upcoming Climate Change Conference in Marrakesh could
become another milestone achievement.
• The expectations are high that Marrakesh COP will move us forward towards a
second edition of the ‘Marrakesh Accords’ of 2001, and stimulate effective
participation in a new ‘Sustainable Development Mechanism’ under the Paris
Agreement.
• Acknowledgement:
Alexandra Soezer, Climate Change Technical Advisor;
Rakshya Thapa, Regional Technical Specialist, CCM
Thank You
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