Summary climate finance ccxg gf march 2014


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  • Replicating and scaling up are different. Replication is not copying – need to modify to local conditions (different herbs and spices)
  • Summary climate finance ccxg gf march 2014

    1. 1. Climate Change Expert Group Co-facilitated by Georg Børsting, Tosi Mpanu Mpanu, Herman Sips, Suzanty Sitorus Climate finance replication and scaling up – key points CCXG Global Forum 19 March 2014
    2. 2. 2 Climate Change Expert Group What is replication and scaling up? Scaling up and replication crucial for real transformation Different topics – may need to be addressed separately Include the diversity of private sector actors Replication and scaling up for adaptation may need a different recipe book than for mitigation
    3. 3. 3 Climate Change Expert Group Mitigation and adaptation finance International finance not balanced at present; replication risks repeating this imbalance Projects have multiple aims; artificial divide between mitigation vs adaptation not helpful for replication and scaling up Adaptation is case-specific; more likely to be replicated if intervention aligned into a larger programme/policy Difficult to attract private adaptation finance if not directly related to core business interests, e.g. food industry and insurance
    4. 4. 4 Climate Change Expert Group Modify to fit local contexts Replication is not copying – need to modify to local conditions It’s not just the finance – domestic enabling conditions key to moving to programme-level Barriers include integrity of policies in the face of competing development objectives; translating commitment into actions that produce results
    5. 5. 5 Climate Change Expert Group Multiple barriers exist Information and knowledge gaps what works and what doesn’t (monitoring and evaluation – M&E- can help) how to incentivise front runners Capacity gaps in moving from planning to implementation and in developing portfolios Multiple financing instruments (e.g. capital cost reduction, Feed-in tariff) may be needed for projects that face multiple barriers and risks Note that business cycles are much shorter than public climate funding approval processes
    6. 6. 6 Climate Change Expert Group Information flow and M&E key… To provide enough information about what has worked and what hasn’t … this can increase political will and potentially also climate finance delivery Can also help to reduce risk and cost of project development (e.g. via improved resource surveys) To help financial actors understand what the real key risks are Information needs to be packaged so that it resonates with the business sector
    7. 7. 7 Climate Change Expert Group … as are institutions Strong institutional structure at a variety of levels (national, sub-national) needed to plan, prioritise, implement climate finance interventions. Support is needed for intervention by government Good, ongoing, communication and teamwork between government and private sector also needed Alignment of donors is crucial
    8. 8. 8 Climate Change Expert Group What creates appetite from the private sector? Enabling policy framework can help, whereas legislative uncertainty is a key barrier Reduced risk, e.g. via developing risk mitigation instruments; allow flexibility in how risk is dealt with Reduce high up-front capital costs – improve self- sustainability of intervention Reduce delays in funding approval and disbursement (multilateral climate finance delivery can be slow) Knowledge of domestic institutional structure Use programmatic rather than project approach
    9. 9. Climate Change Expert Group
    10. 10. 10 Climate Change Expert Group Possible future work How to scale up private climate finance for adaptation? Role that the 2015 agreement can play in enhancing the enabling environment for climate finance How to learn from Paris Declaration to improve country ownership and donor co-ordination re climate finance mobilised as part of the 2015 agreement How can M&E help to identify best practice for climate finance interventions How can “adaptation contribution” be financed? How can a future climate agreement provide incentives for enhanced climate-related finance and investment flows?