Upload
faisal-yusuf
View
224
Download
0
Embed Size (px)
Citation preview
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 1/19
chan e
Key outcomes & questions
from recent OECD work
Jan Corfee-Morlot, Environment Directorate
,
1
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 2/19
. Some thoughts on why, what and how to
to track climate finance
. stat st cs on a ows targete toclimate change mitigation and adaptation
2
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 3/19
OECD work on climate finance focused on a
number of questions
How to improve effectiveness of international climate
finance? What goals and pathways for climate change support ?
• Finance, capacity building and technology support
What is the baseline for climate change finance today?• How much money in absolute and relative terms is already flowing to
How to develop a comprehensive system of MRV of
su ort to build trust and accountabilit ?
What do we know about the GHG performance of these
flows?
3
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 4/19
The domestic policy framework is central to drivingprivate investment and a target of international
“support”INTERNATIONALINTERNATIONAL CLIMATECLIMATE
CHANGECHANGE SUPPORTSUPPORTDOMESTIC FRAMEW ORK DOMESTIC FRAMEW ORK
FOR FOR MITIGATION & AD APTATIONMITIGATION & ADAPTATION
Technology
Enabling environment
for investment
apac ty u ng
FinanceInvestment & climate
policy framew orks
Social change Institutional change Technological change
GHG EMISSIONGHG EMISSION REDUCTION & CLIMATE RESILIENCEREDUCTION & CLIMATE RESILIENCE
Source: Adapted from Corfee-Morlot, Guay & Larsen 2009
4
A central goal of international public climate finance is to work in partnership withdeveloping countries to build capacity and momentum to integrate climate change
considerations into domestic policy frameworks
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 5/19
Multiple origins and channels for climate
TOTAL MITIGATION
• North-South, South-South and
domestic are relevantSUPPORT
PUBLIC-
• Public, private and public-private
• Public finance is bilateral or
RELEVANT
(ODA) PRIVATEMITIGATION-RELEVANT
(FDI&DEBT)PUBLICPUBLIC
MITIGATIONMITIGATION--SPECIFICSPECIFIC
CD MCD MINVESTMENTINVESTMENT
, -
• Private flows are much greater
than public flows e.g. CDM
• Not much is known about the
GHG performance of the largest
“ ” PUBLIC & PRIVATE
Source: Corfee-Morlot, Guay & Larsen 2009
5
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 6/19
Mitigation “relevant” sectors and mitigation“specific” flows
North-South investment flows, mitigation specific and other mitigationrelevant in 2007: total est. about 310 billion USD
FDI mitigationrelevant
CDMInvestment estimates
Miti ation
ODA mitigationrelevant
MDB mitigation specific
itigation specific
specificUSD10-50 bn(without “green” FDI)
MDB mitigationrelevantExport
creditsmiti ation
ODA 'Rio Markers'mitigation specific
GEF
relevant
Source: Corfee-Morlot, Guay and Larsen 2009
tracked for GHG performance
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 7/19
How much do mitigation relevant flows representcompared to total flows?
Mitigation specific and mitigation relevant ODA, Export Credits and FDI todeveloping countries (average 2003-2005, thousands)
250.000,0
300.000,0
200.000,0
Mitigationspecific
Other
100.000,0
150.000,0relevant
Not mitigationrelevant
50.000,0
-
ODA Export credits FDISource: OECD-DAC 2006, OECD 2007c, UNCTAD 2006 – as compiled and cited in Corfee-Morlot, Guay and Larsen 2009
relevant – a few hundred billions of USD per year7
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 8/19
Understanding climate support in context
Mitigation specific Other mitigation relevant
Definition Financial support that targets GHGmiti ation in develo in countries
General financing for development that shapesmiti ation otential ace and amount of futureemissions
Amount Roughly USD 10-50 billion per year(without FDI)
Several hundred billion USD per year
Type
ExamplesPublic or Public-Private
Multilateral: GEF, Climate change funds;Bilateral: ODA, non-concessional loans;
Private (mainly), Public-private
FDI, international private loans, etc. in carbon-intensive sectors. Lar est shares of bilateral
official export credits (ECA); CDM ODA,OOF, ECA and multilateral flows.
Monitoring •Lacks consistency, and/or regularity ofre ortin
•FDI lacks GHG mitigation markers
•No centralized, comprehensive systemeven for public finance.
•No institution in charge of monitoring.
•No formal definition of “mitigation relevant”
•Confidentiality issues - no formal tracking
private/CDM flows.
•No methodology to track what is “green” or
emission intensity of these flows.
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 9/19
Different qualities and availability of information
Public Finance Private Finance
Financial DataSources
Mitigation specific and relevantMitigationspecific
Mitigationrelevant
Bilateral ODA & Multilateral ODA CDM FDI
Rio markers OECD-
institutional datasources/systems
OECD
CRS
CRS,
MDBsWorld Bank
UNCTAD, OECD
by sourcecountry
++ - - ++
by recipient ++ - + ++
by purpose + - + -
-
Source: adapted from Corfee-Morlot , Guay and Larsen 2009
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 10/19
Many outstanding methodological questions
– Public Finance Private Finance
Miti ation s ecific and relevant Miti ation s ecific Miti ation relevant Sources
Bilateral ODA, funds &
other (ECAs)
Multilateral ODA
& otherCDM FDI
Existinginstitutional datasources/systems
Rio markers – OECD CRSOECD CRS,
MDBsUNEP-Risoe , World
BankUNCTAD, OECD
Other relevantdata, ongoingresearch
WRI , Project Catalyst (fast start)Climate Funds Update (HBF & ODI), etc
UNFCCC, othersRINGOs
UNEP/SEFI,UNCTAD, OECD
•ODA: How to improve Rio Markers, eg tobetter account for “climate change” portion of
projects?
•What / how shouldfinancial flows for
CDM be accounted
•How to define whatis “green”? Data
confidentiality?
Keymethodologicalquestions
•Bilateral vs. multilateral flows: how to avoid
double counting?
• “ ”
•CER revenues vsCDM investment
•Whether and how to
monitor carbonintensity?
data into the system
or in pipeline)? If
investment,international?
•Who can create &
manage “green” FDIdata system?
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 11/19
50 D
Estimated CDM investments by
40
45
i o n s o f U
30
35 B i l l
Projects entering the pipeline
20
25
Projects registered Value of CERs(primary transactions)
10
0
2003 2004 2005 2006 2007Source: Seres and Haites 2008 ‐ revised estimates based on personal communication with authors. World Bank
Clean Development Mechanism: two different ways to accountfor total CDM investment flows over time.
for value of CERs.
Investment differs from the “value of CERs” approach which is better understood as return on investment.
Investments may not be fully attributable to CDM, no data on unilateral and no separation of domestic &international
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 12/19
OECD climate finance work
some ey messages
u c un ng mpor an u pr va e nves men as egreatest influence• Need to use ublic finance to direct and levera e investment
Domestic policy frameworks are central to attract, directand “green” private investment
A comprehensive system of MRV needed to build trust,deliver accountability• -
party to party reporting)
• Dual accountability needed (both recipients & donors reporting)
• rac mu p e mens ons .e. or g n source, goa , en -po n s ; exante & ex post for verification purposes
• Transparency, public access essential – civil society as watchdogs
• Include private flows (e.g. at least CDM, possibly green FDI)12
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 13/19
PART 2:
OECD statistics on aid flows
13
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 14/19
OECD statistics on aid flows targeted to
c mate c ange m t gat on an a aptat on
o mar ers - a es eve opmen s:
• Quality review of Rio marker data undertaken in 2009
• New adaptation marker applicable to as from 2011 reporting on 2010flows
• Task Team will continue discussions on quantification of marker data
(systematically):• non-DAC bilateral donors and multilateral agencies’ outflows;
• on- pu c un ng non-concess ona oans to eve op ngcountries)
In the context of work to improve DAC statistics on non-ODApublic and private flows, proposals on how to capture:
• Public funds used for leveraging private climate finance
• Climate finance extended throu h officiall su orted ex ort credits as aminimum, “climate-relevant” flows)
14
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 15/19
Official bilateral commitments (2003-2008 bnUSD)
of which USD 17bn/year is mitigation relevant
140000
120000
80000
100000
Industry, Mining, Construction
Agriculture, Forestry, Fishing
60000
Energy
Transport & Storage
Water Supply & Sanitation
Not mitigation relevant
20000
40000
0
2003 2004 2005 2006 2007 2008
Source: OECD DAC-CRS database 2010.
15Mitigation relevant ODA is not necessarily ‘green’
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 16/19
Mitigation specific bilateral ODA commitments –
Rio markers
• 8% of total ODA (2008)
• Climate change specific aid doubled between 2007 and 2008
• Annual average commitment 2003-2008 : $4.5 bn
USDmillion
6000
7000
8000
9000
25%
14%
Energy
2000
3000
4000
5000
11%
8%nv ronmen
Transport & Storage
Water & Sanitation
Forestry
0
2006 2007 2008
Principal objective
- -
20%
Other
16
Rio Markers system: 2 (mitigation as “principal objective”); 1 (“significant objective”); 0 (mitigation “not targeted”)
June 2008: Rio Markers became mandatory for DAC members
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 17/19
Official Long Term Export Credits by Sector (2002-2008)31.2 billion USD/year (average)
Energy9%
Transport & Storage45%
Sanitation
1%
Not MitigationRelevant
12%
Industry22%
Mineral Resources& Mining
ons ruc on
1%
Forestry
2%
8%
-
Export credit operating largely in carbon-intensive sectors
ECs rovided officiall b OECD members to develo in countries
, ,
Long term repayment: 5 years or more
Statistics with same level of disaggregation as ODA 17
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 18/19
What role for OECD “DAC statistics”?
some concluding thoughts DAC system / Rio Markers is a good basis to build
on for a broader system System can be extended to provide consistent
statistics on:
• Multilateral flows• Non-DAC donors e. . Arab donors
• Non-ODA (eg export credits) as well as ODA
track private climate relevant/specific flows
18
8/6/2019 OECD Climate Change Financing
http://slidepdf.com/reader/full/oecd-climate-change-financing 19/19
Thank you!
For more information:
. .
www.oecd.org/dac/stats
19