Transcript Climate Finance - Finanzas Carbono

Challenges and Oportunities of
International Climate Finance
Seminario BID – BNDS-ALIDE-ABDE
Rio, 27 August, 2013
María Paz Cigarán
What are we
addressing on this PPT?
1
DEFINITION AND SCOPE:
What is Climate Finance and how
much do we need?
2
HISTORY AND UPDATE:
What originated it and where are we?
3
FLOWS AND TRENDS:
Where do resources come from and go
to?
4
5
BARRIERS AND OPORTUNITIES:
What challenges need to be overcome
from an int. & nat. perspective?
FINAL REMARKS
What are we
addressing on this PPT?
1
DEFINITION AND SCOPE:
What is Climate Finance and how
much do we need?
2
HISTORY AND UPDATE:
What originated it and where are we?
3
FLOWS AND TRENDS
Where do resources come from and go
to?
4
5
BARRIERS AND OPORTUNITIES:
What challenges need to be overcome
from an int. & nat. perspective?
FINAL REMARKS
What is International
Climate Finance?
World Resources Institute:
Used to describe financial flows
from developed to developing countries
for climate change
mitigation/adaptation activities
Principles: Scaled up,
New and Additional, Predictable,
Adequate ; Transformational
FSF $30 billion 2010-2012
LTF $100 billion by 2020
Landscape of Climate Finance, 2013: Project-level financing data is
as close as we can get to emission reductions, enhanced climate
resilience, and a stronger enabling environment.
Climate finance refers to local, national or transnational financing, which may be drawn
from public, private and alternative sources of financing (…) critical to addressing
climate change because large-scale investments are required to significantly reduce
emissions (…) equally important for adaptation. In accordance with the principle of
common but differentiated responsibility and respective capabilities set out in the
Convention, developed country Parties (Annex II Parties) are to provide financial
resources to assist developing country Parties in implementing the objectives of the
UNFCCC. (UNFCCC)
What amount of resources are
needed?
ADAPTATION
$10s- $100s billion
per year (UNFCCC)
MITIGATION
USD 200 – 210 billion
to reduce CO2 eq emissions
by 25 % below
2000 levels in 2030 (UNFCCC)
USD 10 trillion of aditional investment in
energy in 2030 and USD 26 trillion of gradual
shift of investment (3GE)
Gradual investment in energy of USD
36 trillion in 2012-2050 - or USD 1
trillion per year (IEA)
Developing countries would need
300 by 2020, and 500 by 2030 to
limit their emissions (WRI)
$145 trillion of investment in low carbon
resilient infrastructure (3GE)
USD 140 – 175 billion for
developing countries (WB)
NEW TECHNOLOGIES
Duplicate speed of technology
difussion (3GE)
900 billion per year until 2050
WRI, wp2013
What are we
addressing on this PPT?
1
DEFINITION AND SCOPE:
What is Climate Finance and how much
do we need?
2
HISTORY AND UPDATE:
What originated it and where are we?
3
FLOWS AND TRENDS:
Where do resources come from and go to
4
5
BARRIERS AND OPORTUNITIES:
What challenges have to be overcome
from an int. & nat. perspective?
FINAL REMARKS
What is the outlook for Paris 2015?
• Cancun: GCF is created
• Agreement under DP: new and universal GHG reduction instrument with
legal force by 2015 for the period beyond 2020. Further raise the existing
level of action and stated ambition.
• Doha: The finance in the period between 2013 and 2015 should equal or
exceed the average annual level with which countries provided funds
during the 2010 to 2012 fast-start finance period (a total of USD 30
billion.) This is to ensure there is no gap in continued finance support
while efforts are otherwise scaled up.
– Governments will continue a work programme on long-term finance during
2013 to identify pathways for mobilizing scaled-up finance to reach the 100
billion target by 2020. A high-level roundtable on finance is planned for
COP19/ CMP9 in Warsaw so that ministers can provide general guidance.
• “Bottom up approach” – need to start consolidating and
scaling best practice
What is the outlook for Paris 2015?
• Review: Governments launched a robust process to review
the long-term temperature goal, which is to start in 2013 and
conclude by 2015, aimed at providing a reality check on the
advance of the climate change threat and the possible need
to mobilize further action.
• Pathway for institutional arrangements for Adaptation
• Programme on market mechanisms
• Clarify ways to measure deforestation
• Registry and Programme to build climate action capacity
• Economic diversification activity (took note)
Specific Climate Finance Instruments:
Unfccc and derived
CIF: Climate Investment Funds
ICI: international Climate Initiative
ICF: International Climate Fund
The NAMA Facility
What are we
addressing on this PPT?
1
DEFINITION AND SCOPE:
What is Climate Finance and how much
do we need?
2
HISTORY AND UPDATE:
What originated it and where are we?
3
FLOWS AND TRENDS:
Where do resources come from and go
to?
4
5
BARRIRES AND OPORTUNITIES:
What challenges have to be overcome
from an int. & nat. perspective?
FINAL REMARKS
Climate Finance: General Outlook
(1)
• USD 364 mil millones en 2010/2011.
– Aumentó pero aún lejos de la inversión requerida para 2°C (AIE: inversión gradual en
energía 36 USD billones en 2012-2050 - o USD 1 billón por año).
• Fuentes:
– Sector privado (USD 217-243 miles de millones) de países desarrollados.
– Sector público (USD 16-23 miles de millones) como catalizador para privado y como
ayuda al desarrollo (de 9.5 miles de millones a 23)
• Intermediarios, en especial los bancos nacionales de desarrollo y
comerciales cumplen papel importante en levantamiento y canalización de
fondos (USD 110-120 miles de millones), y en la creación de un entorno
propicio para la inversión del sector privado.
• Instrumentos: USD 293-347 MM instituciones financieras con interés de
propiedad (el dinero que tiene que ser devuelto).
– Intermediarios públicos habilitan proyectos que serían inviables a través préstamos
concesionales y donaciones.
Sources and mitigation end uses
Country source
End use (mitigation)
Usos: Economías emergentes destinatarios principales, y fuentes
importantes (un tercio de inversiones de mitigación a China, Brasil e
India).
Source: Climate Funds Update
What are we
addressing on this PPT?
1
DEFINITION AND SCOPE:
What is Climate Finance and how much
do we need?
2
HISTORY AND UPDATE:
What originated it and where are we?
3
FLOWS AND TRENDS:
Where do resources come from and go
to?
4
5
BARRIERS AND OPORTUNITIES:
What challenges have to be overcome
from an int. & nat. perspective?
FINAL REMARKS
Challenges (1)
Challenges and oportunities (2)
At an international level:
•
An insufficient amount, target, speed: Is 100 billion enough?
–
–
•
Lack of coherence and coordination among different institutions
and bodies under the convention
–
•
Lack of climate finance mobilization: developed and developing
Lack of notion of pathways/roadmap
Various source institutions / international burocracy /different rules and
procedures
Mechanisms/decisions do not match specific country needs
–
–
–
Adaptation vs. mitigation: what if 2015 agreement not ambitious?
Local needs not necessarily match global (try to standardize, not a flexible
approach)
Innovation promotion? Who takes the risk?
• Unpredictable carbon pricing
• Lack of trust & transparency
 Private sector window in GCF and readiness approach
Challenges and opportunities (3)
At a national level:
•
BAU is the current option:
–
–
•
•
•
Growth without constraints, perception that environment is an additional
burden
lack of clear signals to promote LCD
How much do we need? What do we prioritize? What
instruments should be promoted
Institutional coordination and capacities to be strengthen
Up front cost and risks
 NDB:
–
–
–
knowledge on national investment conditions
Bridge: government/private sector
Fiduciary standards
What are we
addressing on this PPT?
1
DEFINITION AND SCOPE:
What is Climate Finance and how much
do we need?
2
HISTORY AND UPDATE:
What originated it and where are we?
3
FLOWS AND TRENDS:
Where do resources come from and go
to?
4
5
BARRIERS AND OPORTUNITIES:
What challenges have to be overcome
from an int. & nat. perspective?
FINAL REMARKS
A window of oportunities (1)
• Influencing from a practical perspective:
– Play an active role: Influence the international climate finance
architecture
– Use this as an excuse for your further strengthening: new
strategic vision and role for development (under a new
risk/opportunity)
– Work with national institutions and stakeholders to create the
enabling environment
• Build the case
– Cases that work: what would be needed to scale it to meet a
national target
– COP20 (2014) in Lima: bring practical ideas to the table
• Innovate for adaptation:
– Gap for credit approval – the most vulnerable
– Catalyse resilient investment
• Create evidence based systems
• Direct access
Thank you!
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