Climate finance amoah (ghana)challenges in scaling up cf-ccxg gf-march2014
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Climate finance amoah (ghana)challenges in scaling up cf-ccxg gf-march2014



Challenges of institutional frameworks in scaling up Climate Finance in Ghana

Challenges of institutional frameworks in scaling up Climate Finance in Ghana



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Climate finance amoah (ghana)challenges in scaling up cf-ccxg gf-march2014 Climate finance amoah (ghana)challenges in scaling up cf-ccxg gf-march2014 Presentation Transcript

  • Antwi-Boasiako Amoah (EPA, Ghana) (,/ Climate Change Expert Group Global Forum 18 March 2014 OECD Conference Centre, Paris Challenges of Institutional Frameworks in Scaling up Climate Finance in Ghana
  • Reflection Questions 1. What are the challenges in designing suitable institutional structure of climate finance sources that can facilitate scale-up and replication of climate finance interventions? 2. How can international climate funds further contribute to encouraging mobilisation of climate finance from various sources (including private sector) through scale-up and replication processes?
  • Institutions are the capital stock for policy-making INSTITUTIONS Production of Policies Review of Policies Implementatio n of Policies Amoah, 2014 INSTITUTIONS-WHAT THEY ARE?
  • the nature of institutions (both at country and international levels) is crucial for access, replication and upscale of climate financing Institutional structures can enhance or constrain climate financing at all levels It is more challenging and complicated for developing countries due to high dependency on international climate funding sources and vulnerable economies
  • Governance & coordination Capacity building Research & knowledge management Finance International cooperation communication Monitoring & Reporting Ghana’s National Climate Change Policy Framework
  • Source: Tutu Benefoh, 2010 Key: NCCC– National Climate Change Committee, MoFeP: Ministry of Finance and Economic Planning, NDPC: National Development Planning Commission, MLNR: Ministry of Lands and Natural Resources, MoFA: Ministry of Agriculture, MEST: Ministry of Environment, Science and Technology, CSOs: Civil Society Organizations; CCU: Climate Change Unit, EECCU: Energy Efficiency and Climate Change Unit, CDM/ DNA: Clean Development Mechanism/ Designated National Authority, MoEn: Ministry of Energy, DPs: Donor Partners, MFA: Ministry of Foreign Affairs, PoGH: Parliament of Ghana, MoI: Ministry of Interior, NREAG: Natural Resource and Environment Advisory Group Operational Level StrategicLevel MEST National Development PlanningFramework NREAG EPA CCU CC ccu CC CDM/ DNA ccu CC Energy Commission (EECCU) ccu CC Forestry Commission REDD+ Secretariat ccu CC National REDD+ Steering Committee ccu CC Coordination & Harmonisation NADMO CLIMATE CHANGE GOVERNANCE INSTITUTIONAL FRAMEWORK IN GHANA
  • Institutional Challenges to Climate Financing in Ghana Absence of or little practical institutional coordination on climate change Funding for climate change is largely at the project level(notable exception to this is NREG a multi donor multi sector budget support programme of $25-30m pa for 5 years) Progress to date has been more donor-driven Funding for CC in Ghana is largely provided bi-laterally or through specific funds administered by the World Bank or UNDP and to a limited extent through global funding mechanisms Donor activities have not, to date, focused on developing systemic ownership of the agenda across government (OECD, 2011) Support has mainly been piecemeal and fragmented via never up- scaled pilot projects (e.g. AAP)
  • Institutional Challenges to Climate Financing in Ghana (cont.) The seeming absence of private sector in climate financing Different reporting as well as M&E systems between donor agencies and implementing institutions often results in delays  Donors are also in principle aligned behind government priorities for climate change but in practice are `not very Paris like’ in their behaviour (OECD, 2011)
  • PARIS PRINCIPLES PERCENTAGE (%) REALIZATION BY STAKEHOLDERS GOVERNMENT CSO DEV. PARTNERS Mutual Accountability 50 38 50 Managing for Results - 38 60 Harmonization 100 90 70 Alignment 75 25 50 Ownership 50 75 80 Assessment of Paris Declaration(PD) Principle in Ghana by OECD in 2011
  • OECD DAC Key Principles to Inform Climate Change Financing  Ownership: Activities in response to climate change should be country driven and be‐ based on needs, views and priorities of partner countries. National sustainable development strategies and climate change policies should be taken into account where they exist. Recipient countries should lead in establishing and implementing their climate change strategies in a broad consultative process ensuring full integration into policies, plans and programmes in all relevant sectors.  Alignment: Climate change financing needs to be integrated into countries‘ own planning and budgeting mechanisms to ensure genuine ownership. Where possible, new and additional climate change financing is channeled through countries‘ existing financial allocation systems.  Capacity Development: Capacity development is critical to ensure that recipient countries have the sufficient capacity to absorb and manage climate change financing.  Harmonization: To reduce administrative costs, it is important that the international community coordinates their actions, simplify procedures and share information to avoid proliferation and duplication of funding mechanisms. A shift to programmatic approaches can help.  Managing for Development Results: The Bali Action Plan acknowledged the challenge of yielding actual results on the ground and stressed the need for actions to be undertaken by Parties to implement the convention to be measurable, reportable and verifiable (MRV)― ‖ (OECD Factsheet Oct. 2009)
  • Conclusion Ghana’s visibility at the international level climate issues has not reflected proportionally in attracting international climate funding Ownership, alignment, capacity development and harmonization still remain key institutional challenges at the country level for climate finance up-scaling though some modest achievements have been made