Transcript 2015_06_24_ppt06_DEA-CC FLAGSHIP PROGRAMMES AND CLIMATE FINANCE

The Climate Change Near-Term Priority
Flagship Programmes & Climate Funding
Gauteng Provincial Climate Change Forum
June 24 2015
Climate Change and Air Quality
Presentation Structure
Climate
Finance
Climate
Change
Flagship
Programmes
Climate Finance
Introduction
• An effective climate change response requires significant financial
resources
• Commitments to deliver climate finance are longstanding
• Developed countries have committed to a goal of jointly mobilising 100
billion USD per year by 2020
• Global climate finance flows in 2013 topped USD 331 billion
• Private actors remain the largest source of global climate finance, and
invested USD193 billion, or 58% of total flows in 2013
• The cumulative gap between finance needed and finance delivered is
growing
Climate Finance Overview
• The global climate finance architecture is complex
• There are multiple sources, instruments, intermediaries and recipients involved in
providing or receiving climate finance
– Public finance, where the source of finance is public treasuries and where allocation is overseen by
government functions.
– Private climate finance is generated through a variety of means, including the carbon market,
routine investment decisions by companies, and triggered by national or international policies that
govern the functioning of markets in different areas (e.g. energy markets)
• Climate finance typically is intermediated and can flow through several channels for
various reasons
Climate Finance Sources & Actors
National Sources
Multilateral
Development Finance
Institutions
International Sources
Institutional Investors
Public Funds
Private Investors
(Commercial)
Private Sector Funds
Government/National
Public Institutions
Climate Finance Instruments
Grants
Debt Financing
• Climate
Funds
• Technical
Assistance &
Capacity
Building
• Concessional
Loans
• Loans
Risk Mitigation
• Guarantees
• Insurance
Equity
• Equity
Investments
• Sovereign
Wealth Funds
Most likely instruments for South Africa
Global Climate Finance Architecture
UNFCCC Financial
Mechanisms
Non-UNFCCC
Financial Mechanisms
Bilateral Country
Funds
• Green Climate Fund
• Adaptation Fund
• Global
Environmental
Facility
• Multilateral
Development Banks
• World Bank Funds
• African
Development
Bank
• UN Agencies (UNDP,
UNEP)
• Germany International Climate
Initiative
• Norway International Climate
and Forests Initiative
- ICFI
• UK - International
Climate Fund - ICF
NAMA Registry
UNFCCC Climate Funds
• The Green Climate Fund the Green
Climate Fund (GCF) was designated
as an operating entity of the Financial
Mechanism of the UNFCCC
accountable to the COP at COP 17
• The operation of the Financial
Mechanism is partly entrusted to
the Global Environment Facility (GEF)
• A large share of financial resources
for climate change is mobilized
through the GEF Trust Fund
Key Funds in Sub-Saharan Africa
• A multitude of actors are involved in directing
climate finance to the region
• Twenty climate funds are active in supporting
development and climate resilience
• The World Bank administered Clean Technology
Fund (CTF) and the Least Developed Countries
Fund (LDCF) are the biggest funding providers in
the region
• The largest contribution is from the CTF which has
approved a total of USD 466 million for four large
renewable energy and energy efficiency projects,
primarily in South Africa
Top 10 recipients countries by amount
approved (2003-14)
Climate Finance Adaptation/Mitigation
Split (Sub-Saharan Africa)
REDD, 334.57
Multiple foci,
112.73
Adaptation ,
1028.23
Mitigation, 834.44
Key National Role Players
UNFCCC Focal Point
UNFCCC NAMA Registry Focal Point
GEF and GCF Designated Authority
Flagship Programmes Steering
Committee reccommending NAMA
Registry Submission and facilitating
access to Climate Finance
• National Green Fund
•
•
•
•
• Accredited Entities: GEF and GCF
(accreditation application underway)
The Climate Change
Flagship Programmes
Setting the Context
National Climate Change Response Policy
NDP Vision 2030
• “A set of Near-term Priority Flagship
Programmes will be implemented…These
programmes will include both the
scaling-up of existing climate change
initiatives and new initiatives that are
ready to come on-stream”
• 2014-2019: Planning, Piloting and
Investing (Outcome 10 Delivery
Agreement)
• Creation of an implementation framework
• Unblocking regulatory constraints
• Data collection, establishment of baseline
information, and indicators
• Testing concepts and ideas to determine if
these can be scaled up
Climate Change
Flagship Programmes
What are the Near-term Priority Flagship
Programme?
• Front-runners in the transition to a lower carbon economy and resilient
society
• Build on existing expertise and insight of key sectors which have extensive
experience in implementing climate change relevant policies and measures
• Represent an important aspect of the practical implementation of the
National Climate Change Response Policy and National Development Plan
• Understand and track over time the actual climate change impact of these
programmes
• Catalyse sector-wide transformation
The Climate Change Flagship Programme Criteria
Significant mitigation potential and/or potential to enhance resilience
Ambitious and transformative in design, scale and impact
Realise significant social, economic and environmental benefits
Contribute to achieving existing commitments
Utilise, demonstrate and/or test a set of policy interventions, fiscal
instruments and modes of implementation
• Inter-linked components, developed and implemented in coordinated way
• Capable of near-term implementation
•
•
•
•
•
Priority areas
Current Flagship Programme Areas
Other Climate Change Response Areas
The Waste Management Flagship
Programme
The Climate Change Response Public
Works Flagship Programme
The Adaptation Research Flagship
Programme
The Energy Efficiency and Energy
Demand Management Flagship
Programme
The Renewable Energy Flagship
Programme
The Water Conservation and Demand
Management Flagship Programme
The Carbon Capture and
Sequestration Flagship Programme
Climate Change Priority Sectors
Near-Term Priority Climate Change
Flagship Programmes
The Transport Flagship Programme
Disaster Risk Reduction
and Management
Health
Agriculture and Forestry
Biodiversity And
Ecosystems
Human Settlements
The Importance of Provincial & Local
Governments
• Subnational and local governments are at the forefront of climate
action
• 50% - 80% of adaptation and mitigation actions necessary to tackle
climate change are or will be implemented at the subnational level of
governance
• Major international initiatives are increasingly making room for nonnational actors
• Vertical integration of all spheres of government is key
Emerging Themes
• MRV is a pre-requisite for participation in climate finance
• Direct access to key climate funds is growing
– South Africa already has 2 accredited entities
– Private sector accreditation also underway
• Programme preparation and support required – support from
the Flagship Programmes /NAMA Focal
• Additional steps are needed to fully integrate sub-national
players into national and global climate change response
Linkages between Climate Finance &
the Flagship Programmes
Climate
Finance
Climate
Change
Flagship
Programmes
• Scale
• Transformative
• Institutional Arrangements
• MRV
Reitumetse Molotsoane
Climate Change Flagship Programmes
[email protected]