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G20 and climate finance presentation 2012


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Presentation in G20 dialogue series organised by the Youth for Policy and Dialogue.

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G20 and climate finance presentation 2012

  1. 1. Climate Finance: Is G20 the platformPanel discussion at India G20 Dialogue Series – Youth for Policy and Dialogue February 2012 Jyoti Deka, cKinetics
  2. 2. Climate Finance Framework – agents, sources and uses of fundsAgents Source of funds Uses of fundsNational ImplementationAgencyBilateral cooperation orfinanceMultilateral cooperation orfinanceNational financial institution Climate finance forUNFCC adaptation and mitigation initiativesPrivate sectorsCorporate social organizationor NGOs To be decided Innovative climate finance To be decided Government cooperation National budget Direct assistance Private cooperation Return from carbon market Development assistance Capital market Carbon market Source: UNFCCC, India Carbon Outlook
  3. 3. G20 position on Climate Finance is apart of their Development Action PlanPart of its Development Action Plan, launched during 2010 Mexico SummitClimate and environment were reflected in its consensus summary, as follows – ..can help to catalyze action by calling on international institutions, such as multilateral development banks (MDBs).. …private sector participation by means, such as stimulating and leveraging the flows of private capital for development, including by reducing risks and improving the investment climate and market size..DAP sources of finance - Innovative Sources of Finance (“not boosting aid levels”) such as theFinancial Transaction Tax (FTT)
  4. 4. Convergence with the World Bank or the UNFCCC? G20 MDBs (the World Bank) UNFCCC Sources Climate investment funds – Recognize fossil fuel subsidy, FTT,Recognize fossil fuel subsidy Clean technology fund carbon tax on internationalelimination, FTTs and carbon tax on Strategic climate fund transport, private capital flows,international transport as sources With donor country’s contribution. national budgets, offset marketsof funds Need for additional sources are as sources of its “Green Climate acknowledged Fund”CooperationApril 2011 communique call for A major contributor to G20’s DAP G20 remains the key economicWorld Bank’s support to mobilize policy mandates force with in COP and will pledgeclimate finance major share for the fundInvestment area Clean technology, sustainable Various adaptation andClimate related initiatives in management of forests, mitigation assistance - ‘fastbiofuel and climate resistant increased energy through start’ (US$30b, mostly inagriculture (adaptation) renewable energy, and climate- development assistance) and resilient development (current long term finance (US$100b, pledge – US$6.5b) tbd)
  5. 5. Markets for mitigation investment – Energy Efficiency is a low hanging fruit..Source: Mobilizing Climate Finance, Paper for the G20 Finance Ministers
  6. 6. ..and India appears to enjoy a niche among the G20 Economic growth is correlated to the energy needs and nation’s emission intensity Emission per capita and per unit of GDP, among G20 Historic emission intensity – India vs. G20 average 0.60kgCO2 per unit of US$1, ppp terms 0.50 0.40 0.30 0.20 India G20 average 0.10 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Data source: IEA
  7. 7. G20 could well be a platform to leverage that niche for IndiaCase for a negotiation agenda• Re-conceptualising the climate equity argument based on emission intensity per unit of GDP “We seem to performing better in efficiency driven GDP growth and doing more with less”Case for innovation around climate finance• Take leadership in energy efficiency related mitigation financing, in terms of technology as well as targeted investment and create innovative financial instruments “In 2010, global investment in efficiency and low carbon tech/services were just US$6b out of total investment of US$550b in sustainable energy” Data source: Mobilizing Climate Finance, Paper for the G20 Finance Ministers