CCXG Global Forum March 2018 Climate Related Development Finance in the context of Future Spending Plans by Jens Sedemund, OECD

1. Climate Change Expert Group (CCXG)
Global Forum on the Environment and Climate Change
Indicative Climate Finance Session
7 March 2018 – 14:30h
Climate Related Development Finance in the context of
Future Spending Plans
Jens Sedemund - Team Lead for Environment and Climate Change
Financing for Sustainable Development Division - FSD
Development Cooperation Directorate - DCD

2. Outline
Forward Spending Surveys1
2 Indicative Climate Finance in FSS
3 Discussion Items

3. 1 Forward Spending Surveys – intro
The only regular,
global process
that provides an
outlook in aid,
up to 3 years
ahead
Started to monitor
G8 commitments,
has become one of
the main tools to
improve aid
predictability
Support countries
in their planning
and budgeting
processes
Can help improve
aid effectiveness.

4. 2 Forward Spending Surveys - Characteristics
Started in 2006
Surveys from 2012 to 2016
available on OECD .Stat
Bilateral and Multilateral
Data
Generally a good coverage
of the current and following
year
Longer term finance more
challenging to predict
They are not firm
commitments, but donors’
best estimates.
The surveys traces Country
Programmable Aid (CPA), a
core subset of ODA.

5. 5%
46%
2%
14%
2%
14%
14%
3%
Country programmable aid Debt relief
Humanitarian and food aid Imputed student costs
Other and unallocated Refugees in donor country
Support to NGOs Administrative costs
Country Programmable Aid (CPA) is the portion of aid that can be
planned at country-level.
It excludes: 1) humanitarian and food aid, 2) unallocated aid, 3)
refugees in donors countries, 4) debt relief, 5) support to NGOs,
6)imputed student costs and 7) administrative costs
Composition of bilateral ODA (2016)
3 Country programmable Aid Share

6. Bilateral CPA and Climate Related Development
Finance
36%
11%
3%
50%
CPA non-Climate
CPA Climate
non-CPA, Climate
non-CPA, non-Climate
A portion of the total climate
finance is outside the CPA
perimeter, representing in
2016:
- 3% of the total ODA or
- 23% of the total Climate
Related Development Finance
4

7. 5 Climate Change in Forward Spending Surveys
A voluntary
question on
indicative climate
finance was
included between
2014 and 2016
Overall totals
requested,
disaggregated by
adaptation,
mitigation and
overlapping.
Data requested
was not
disaggregated by
recipient country.
Data requested for current year, plus up to three years in the future

8. 6 Climate Change in Forward Spending Surveys
only 16 (out of 52)
respondents provided CC info
Limited
data
coverage
In 2016
The 16 respondents
represented 22% of total
climate commitments
Often available only for the
current year, and/or not
disaggregated for adaptation
and mitigation
Data paucity
limited its use
The info was not
further
collected in
2017

9. 7 Climate Change in Forward Spending Surveys
Difficulty in producing indicative climate spending plans may arise from various
factors, some common to all CPA while others specific for climate financing, such
as:
Budgetary
cycles
Political
sensitiveness
Climate marker often
attributed ex-post
Methodological differences between data
transmitted to UNFCCC and to the OECD
Others…

10. Some discussion items8
The Paris Agreement (art 9.5.) foresees that parties shall
communicate biennially “projected levels of public
financial resources to be provided to developing country
Parties” as available and as applicable.
What kind of qualitative and quantitative information would
be most relevant for partner countries?
What information is essential for effective planning of climate
action at country level, in relation to funding or financing?
What information from partner countries might help donors
provide better plan forward expenditure, and provide this
information to partner countries?

11. ADDITIONAL SLIDES

12. Climate Related Development Finance
0 10 20 30 40
DAC members
Multilateral
development banks
Other multilaterals
USD Billions
Climate Related Development Finance in 2016
Climate components
Principal
Significant
The OECD DAC has the most comprehensive activity level dataset of climate related
development finance.
Final 2016 data have just been published