Presentation of refined proposals for improvements to the Rio markers, and of proposed next steps, (Ms. Valérie Gaveau, OECD Secretariat).

1. Fourth Experts’ Meeting of the Joint
ENVIRONET-WP-STAT Task Team on
OECD Rio Markers, Environment and
Development Finance Statistics
20-21 May 2015

2. Refined proposals for fine-
tuning the climate Rio marker
definitions, eligibility criteria
and guidance
Room document 15

3. Outline
Objectives1
Next steps3
Proposed revised instructions2

4. Objectives1
• facilitate reporting on Rio markers to the DAC
• improve quality of reporting and harmonisation of
reporting practices
• update terminology and enhance comparability
with other tracking initiatives (MDB approach,
IDFC)

5. Proposed revised instructions2
Principles for revising:
• no fundamental change in the definitions
• instructions not overly burdensome
• maintain flexibility to reflect evolving
adaptation and mitigation practices

6. Summary of proposed revised instructions:
Current instructions Proposed revised instructions
Generic guidance on policy
markers (Annex 17)
Add new generic guidance on Rio markers
Definition sheet – mitigation
(Annex 18)
Keep definition and eligibility criteria unchanged, merge
examples with the new indicative table
Definition sheet – adaptation
(Annex 18)
Update definition and eligibility criteria, merge examples
with the new indicative table
Add new indicative table to guide Rio marking by
sector/sub-sector
Background information on
the UNFCCC (Annex 18)
Merge with new generic guidance
Frequently asked questions
on Rio markers (Annex 18)
Merge with new generic guidance and indicative table.
N
E
W


N
E
W



7. New generic guidance on Rio markers – to be inserted in
Annex 18 of the Statistical Reporting Directives
• Background on Rio Conventions and Rio markers
• Field of application
• Scoring system (including the decision tree from the Handbook)
• Best practice for project descriptions
• Main features of the methodology:
• Purpose-based
• Overlaps between markers
• Qualitative methodology allowing an approximate
quantification of finance flows
• Information on how Rio markers relate to members’ reporting
to the Conventions

8. Mitigation definition sheet: keep definition and
eligibility criteria unchanged – Annex 18
DEFINITION
An activity should be
classified as climate-change-
mitigation related (score
Principal or Significant) if:
It contributes to the objective of stabilisation of greenhouse gas
(GHG) concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate
system by promoting efforts to reduce or limit GHG emissions or to
enhance GHG sequestration.
CRITERIA
FOR ELIGIBILITY
The activity contributes to
a) the mitigation of climate change by limiting anthropogenic
emissions of GHGs, including gases regulated by the Montreal
Protocol; or
b) the protection and/or enhancement of GHG sinks and
reservoirs; or
c) the integration of climate change concerns with the recipient
countries’ development objectives through institution building,
capacity development, strengthening the regulatory and policy
framework, or research; or
d) developing countries’ efforts to meet their obligations under the
Convention.
The activity will score “principal objective” if it directly and explicitly
aims to achieve one or more of the above four criteria.

9. Adaptation definition sheet: modernise language in the
definition – Annex 18
DEFINITION
An activity should
be classified as
adaptation-related
(score Principal or
Significant) if:
It intends to reduce the vulnerability of human
or natural systems to the impacts of climate
change, and/or to limit the risks of climate-
related risks change impacts, by maintaining or
increasing adaptive capacity and resilience,
and/or reducing exposure to climate change.
This encompasses a range of activities from
information and knowledge generation, to
capacity development, planning and the
implementation of climate change adaptation
actions.

10. Adaptation definition sheet: reference to context added
to eligibility criteria – Annex 18
CRITERIA
FOR
ELIGIBILITY
An activity is
eligible for
the climate
change
adaptation
marker if:
a)the climate change adaptation objective is explicitly indicated in the
activity documentation; and
b) the activity contains specific measures targeting the definition above.
Carrying out a climate change vulnerability or risk assessment adaptation
analysis, either separately or as an integral part of agencies’ standard
procedures, facilitates this approach.
To guide scoring, a three-step approach is recommended as a “best
practice”, in particular to justify for a principal score:
• Setting out the context of climate vulnerability/exposure of the
project;
• Making an explicit statement of intent to address climate
vulnerability/exposure as part of the project;
• Articulating a clear and direct link between the climate
vulnerability/exposure context and the specific project activities.
More details on this approach can be found in the MDB Joint reports on
tracking climate finance.

11. New indicative table to guide Rio marking by sector/sub-
sector– to be inserted in Annex 18
 indicates the most likely/appropriate scores to assign to
activities in each sector, with the most likely score indicated
first
 explains the rationale for scoring or not scoring activities
 provides examples
 refers to some of the principles used in the MDB methodology
• Guidance – not binding rules on marking against the climate Rio
markers by sector
• Basis – internal guidance material provided by Germany (KfW
Development Bank)
• Examples from current Rio maker instructions, MDBs and IDFC
methodologies, members’ suggestions
Preliminary !

12. Sub-sector
Miti
gati
on
Ada
ptat
ion
Rationale for scoring Examples
Renewable
energy
2 0 The main objective of
renewable energy production
is typically to reduce GHG
emissions, through project
development or the creation
of enabling environments for
the development and
dissemination of the skills and
technologies necessary to
expand renewable generation.
The rationale for projects to
qualify as mitigation is that, in
the absence of the renewable
energy
construction/rehabilitation,
high GHG emitting energy
sources would be used. Etc.
• Wind energy
• Photovoltaic and
concentrated solar
power (CSP)
• Geothermal
• Biomass and biogas
• Etc.
• Hydropower only if net
emission reductions can
be demonstrated**.
• Capacity development to
expand renewable
energy with the primary
objective of reducing
GHG emissions.

13. Next steps3
• Collect comments and suggestions
• Prepare revised version for submission
to the WP-STAT in the Fall
• Subsequently submit to the DAC for
approval