Overview of the revised proposal for fine-tuning the climate Rio markers and WP-STAT meeting outcomes (Ms. Gisela Campillo and Ms. Valérie Gaveau, OECD DAC Secretariat).
Participants will be invited to reflect on the 2nd November WP-STAT meeting outcomes and implications for future reporting, including:
What supplementary guidance material and tools could be made available to support the application of the Rio markers?
Should an online user-friendly format for the guidance table be developed?
In the context of continual developments across the international community on climate finance definitions, is there need for further harmonisation?
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Overview of the revised proposal for fine-tuning the climate Rio markers and WP-STAT meeting outcomes (Ms. Gisela Campillo and Ms. Valérie Gaveau, OECD DAC Secretariat).
1. Fifth Experts’ Meeting of the Joint
ENVIRONET-WP-STAT Task Team on
OECD Rio Markers, Environment and
Development Finance Statistics
November 4th, 2015
Valérie Gaveau and Gisela Campillo
OECD DAC Secretariat
2. Revised instructions for reporting
on the climate Rio markers
Proposal submitted to WP-STAT,
2-3 November,
DCD/DAC/STAT(2015)25
5. Revised definitions and guidance of climate
Rio markers1
Objectives of changes:
• 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)
Principles for revising:
• no fundamental change in the definitions
• clearer instructions
• maintain flexibility to reflect evolving adaptation and mitigation
practices
6. Discussions on definitions by the Task Team
• June 2014: Room document 5 -- initial proposals
• September 2014: Room document 10 -- refined proposals
• March 2015: meeting of a working group on definitions
• May 2015: Room document 15 -- full-fledged proposal
• June-July 2015: members’ written comments
• September 2015: Room document 15-REV -- revised version
shared with members in writing for final comments by mid-
September
• November 2015: proposal submitted to WP-STAT for approval
-- DCD/DAC/STAT(2015)25
Process for elaborating the proposal
7. Summary of proposed revised instructions:
Former instructions Proposed revised instructions
Generic guidance on policy
markers (Annex 17)
Add new generic guidance on Rio markers in Annex 18
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 following CRS purpose codes
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
N
E
W
8. Description of changes made since Room
Document 15:
• Reflect ongoing discussion on the marking of programmatic aid.
• Description of score “non-targeted” amended.
• Definition for adaptation adjusted to better align to IPCC latest
definitions.
• Features of the methodology slightly adjusted to mention that the
emphasis is on the objective pursued in providing support to the activity
in question (instead of on the provider’s reasons).
• Changes and improvements to the guidance table
– Sectors and sub-sectors adapted to match CRS purpose codes (list for
flows as of 2016)
– Examples improved, and scores adjusted based on numerous
contributions by members, guidance from the MDB methodology and
examples from the current CRS database.
– The suggestion to remove proposed scores on the ground that the
proposals might be too strict was not taken on board as the proposed
scores are intended to be informative and guiding, not prescriptive.
9. Description of changes made since
Room Document 15 – cont’d
• Double principal scoring kept as a possibility but only upon
explicit justification in particular cases: opinion against double
scoring by some members and observers
• For transparency in future statistical presentations, it will be
of value to report on climate-related development finance
support to high efficiency coal facilities separately from, and
additionally to, the aggregate total estimates (in line with
decision of the Technical Working Group on mobilising climate
finance of 19 bilateral donors )
10. 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.
11. 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 variability and change and climate-
related risks, by maintaining or increasing
adaptive capacity and resilience, through
increased ability to adapt to, or absorb,
climate change stresses, shocks and variability
and/or by helping reduce exposure to them.
This encompasses a range of activities from
information and knowledge generation, to
capacity development, planning and the
implementation of climate change adaptation
actions.
12. Changes to the adaptation definition
Based on IPCC definitions and members’ comments:
• Adaptation covers interventions targeted at adapting
to both current climate variability and expected
future climate change
=> Definition now includes adaptation to “climate
variability and change” instead of adaptation to
“climate change and climate-related risks”
However: MDBs question if climate variability widens
the eligibility criteria beyond climate change adaptation
13. 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 an assessment of vulnerability to climate variability and
change 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.
14. Characteristics of guidance table
• Guidance – not binding rules on marking
against the climate Rio markers by sector
• Sector/CRS purpose codes systematically
included for clarity
• Possible scores for Mitigation and Adaptation
• Rationale for scoring
• Examples of qualifying activities in adaptation,
mitigation and both
15. Example purpose code
Energy
generation,
renewable
sources –
232
2 0
or
1
Renewable energy:
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. Not only are direct effects (e.g.,
observed emission reductions) taken into account, but
also projected impacts on future emissions, i.e.,
changes in future GHG emission trajectories compared
to reference case ("business as usual") scenarios.
However, particular activities could score as significant
in the adaptation marker in case of specific measures
that take into account climate change impacts put in
place and are therefore climate resilient., for example
hydropower plants adapted to changed water flows
would score 1 in adaptation.
Mitigation
Wind energy, photovoltaic and concentrated
solar power (CSP), geothermal, biomass and
biogas, combined cycle (combined heat and
power), hybrid power, ocean power
(mitigation score 1 or 2 if main objective).
Hydropower (storage or run-of-the-river)
only if net emission reductions can be
demonstrated. (mitigation score 1 or 2).
Activities in which existing power plants
switch to lower emitting fuels (e.g., switching
from coal to natural gas) (mitigation score 2).
Rural electrification with renewable energy
(e.g. solar) (mitigation score 2).
Adaptation
New hydro-power activity that takes into
account the impact of climate change on
water resources and uses modern
engineering techniques (adaptation score 1).
Optimizing hydropower generation and dam
safety in the context of climate change
vulnerability (adaptation score 1).
Sector
/CRS
purpose
codes Mitigatio
n
Adaptation
Rationale for scoring
Examples of qualifying activities
The list is not exhaustive. The
activities may be scored against
the objective only if the
eligibility criteria are fulfilled.
By
descend
ing
order of
likeliho
od
17. • Principles of the proposal approved
• Agreement to bring this work to closure before
the end of the year:
– finalise the definition of adaptation after discussion by
the Task Team on the MDBs’ concern in relation to the
concept of variability
– make more explicit that scores proposed in the
guidance table aim at facilitating scoring and are by
no mean prescriptive
Outcomes of WP-STAT Formal Meeting2
19. Next steps3
• Final comments to be sent to the Secretariat
by 20th November
• Subsequent written procedure for WP-STAT
to approve a final version of the document
• Endorsement by the DAC before the end of
the year
20. Discussion questions
• Any outstanding issue on the proposal, including
views on MDBs’ proposal regarding the adaptation
definition
• What supplementary guidance material and tools could be
made available to support the application of the Rio
markers?
• Should an online user-friendly format for the guidance table
be developed?
• In the context of continual developments across the
international community on climate finance definitions, is
there need for further harmonisation?