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The role of the 2015 agreement 
in mobilising climate finance 
COP20 side event 
4 December 2014 
Jane Ellis, OECD 
Jane.e...
Presentation Outline 
Four different ways in which 
the 2015 agreement could 
mobilise climate finance 
o International i...
Four ways the agreement could 
help to mobilise climate finance 
In many cases, the 2015 agreement could facilitate 
mobi...
Intl. Institutional Arrangements 
International institutional arrangements under UNFCCC: 
oNeed to be responsive to rapid...
In-country Enabling 
Environments 
EEs are essential for attracting investment, and better 
accessing, managing and using...
PULL FACTORS 
What could the agreement do? 
• Encouraging Parties to establish predictable and transparent 
enabling envir...
PUSH FACTORS 
What could the agreement do? 
 Encouraging reduced fragmentation of international climate 
finance by reite...
Financial Instruments & Tools 
How to use financial instruments and tools are case-specific. 
But the agreement could in...
Enhancing transparency and MRV 
MRV is key to building trust among countries. 
In the new agreement, MRV could be more e...
Conclusions 
The 2015 agreement can: 
o Directly influence Financial Mechanism of Convention 
o Exhort Parties to act in ...
Thank you! 
For further information: 
www.oecd.org/env/cc/ccxg.htm 
www.oecd.org/env/cc/financing.htm 
11 Climate Change E...
(e.g.) A process for enhancing 
enabling env.in recipient countries 
Encouraging Parties to work together for durable and...
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2014 cop20-ccxg-adaptation-side-event-jane-ellis

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OECD side event at COP 20 on the role of the 2015 agreement in mobilising climate finance and enhancing action on adaptation

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2014 cop20-ccxg-adaptation-side-event-jane-ellis

  1. 1. The role of the 2015 agreement in mobilising climate finance COP20 side event 4 December 2014 Jane Ellis, OECD Jane.ellis@oecd.org Based on a paper of the same title by Takayoshi Kato, Jane Ellis and Christa Clapp Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
  2. 2. Presentation Outline Four different ways in which the 2015 agreement could mobilise climate finance o International institutional arrangements o Enabling environments o Financial instruments o Role of MRV Conclusions 2 Climate Change Expert Group
  3. 3. Four ways the agreement could help to mobilise climate finance In many cases, the 2015 agreement could facilitate mobilisation of climate finance indirectly The agreement could contribute to long-term shift of financial flows towards “green” in different ways The new agreement Intl. Institutional Arrangements In-country Enabling Environments Financial Instruments & Tools Enhancing transparency and MRV 3 Climate Change Expert Group Mobilising climate finance
  4. 4. Intl. Institutional Arrangements International institutional arrangements under UNFCCC: oNeed to be responsive to rapidly changing circumstances, while minimising duplication of work. oNeed to build on current climate finance framework What could the agreement do? • Encouraging operating entities to consider implications of thematic and geographical balance (also elaborating what “balance” is). • Facilitating better co-ordination and co-operation among institutions financing climate interventions. • Also, enhancing synergies with non-UNFCCC institutions. • Streamlining allocation processes by the operating entities. 4 Climate Change Expert Group
  5. 5. In-country Enabling Environments EEs are essential for attracting investment, and better accessing, managing and using climate finance. All parties to enhance push and pull factors for enhancing enabling environments. In practice, push and pull factors are often inter-linked. e.g. Push factors of enabling environments can be important for enhancing some pull factors. 5 Climate Change Expert Group
  6. 6. PULL FACTORS What could the agreement do? • Encouraging Parties to establish predictable and transparent enabling environments . • Urging Parties to put price on carbon in a coherent, stable and sustainable manner. • Encouraging co-ordination of domestic institutions in partner (recipient) countries. • Helping to strengthen ownership of recipient countries (with support for fiduciary, environmental and social standards).  Encouraging Parties to set timelines for such improvements. 6 Climate Change Expert Group
  7. 7. PUSH FACTORS What could the agreement do?  Encouraging reduced fragmentation of international climate finance by reiterating the agreement on the Global Partnership for Effective Development Co-operation.  Encouraging Parties to facilitate inter-agency co-ordination within and between contributing countries.  Encouraging Parties to further use innovative sources of climate finance in addition to “conventional” public climate finance sources such as Official Development Assistance (ODA). (e.g. Market based approaches, funds raised by carbon pricing policies, Financial Transaction Taxes (AGF, 2010)). 7 Climate Change Expert Group
  8. 8. Financial Instruments & Tools How to use financial instruments and tools are case-specific. But the agreement could indirectly contribute to the use of full range of financial instruments and tools by… What could the agreement do? • Explicitly encouraging the use of the full range of relevant financial instruments, tools and vehicles. • Providing opportunities for information exchange on the use of financial instruments and tools. • Encouraging the further involvement of multiple financial instruments/tools and multiple actors. 8 Climate Change Expert Group
  9. 9. Enhancing transparency and MRV MRV is key to building trust among countries. In the new agreement, MRV could be more elaborated and broadened its scope. What could the agreement do? • Using MRV as a tool to generate more information as well as disseminate information on results from interventions MRV Broadened Elaborated • Elaboration on methodologies of MRV to address issues 9 Climate Change Expert Group
  10. 10. Conclusions The 2015 agreement can: o Directly influence Financial Mechanism of Convention o Exhort Parties to act in a specific way (e.g. how to allocate international climate finance) o … but only indirectly influence private climate finance providers The agreement could help to green investments by: o Facilitating countries’ work on strengthening the push and pull factors for enabling environments o Encouraging Parties to identify opportunities to improve efficiency in delivering climate finance o Facilitating trust-building among countries by enhanced MRV 10 Climate Change Expert Group
  11. 11. Thank you! For further information: www.oecd.org/env/cc/ccxg.htm www.oecd.org/env/cc/financing.htm 11 Climate Change Expert Group
  12. 12. (e.g.) A process for enhancing enabling env.in recipient countries Encouraging Parties to work together for durable and flexible enabling environments in recipient countries. Process flows Feedback or interaction Climate policy instruments Setting predictable and stable policy goals Investment policies Human capital Aligning policies with national development goals 12 Climate Change Expert Group In-county Institutional capacities Monitoring and evaluating Revisiting and updating policy goals and/or instruments Feedback Feedback Source: Based on Kato et al. (2014), OECD (2014a), OECD (2014b), OECD (2013a), GIZ (2013), OECD (2013b) and Corfee-Morlot et al. (2012)

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