Update on Climate Change Finance in the Pacific

Resource Mobilisation Working GroupSession 2, Pacific Climate Change Roundtable

2 October 2017, Holiday Inn, Suva, FijiBy Co-Coordinators: Exsley Taloiburi, PIFS Climate Change Finance Adviser

Meapelo Maiai, SPREP GEF Support Adviser

Presentation Overviewi. Linking country priorities to regional and international frameworks

ii. Regional support for Climate Finance in the Pacific

iii. Progress Update for Climate Finance in the Pacifica) Accessibility by PICsb) Accreditation for direct accessc) Coordinationd) Engagement of Private Sector & Civil Society

iv. Challenges and lessons learnt

v. Opportunitiesa) Engagement with Donors and Fundsb) Access to climate finance information

International/Regional PrioritiesInternational Frameworks:• Paris Agreement (Article 9 – US$100 billion/year

by 2020 target), Sendai Framework, SAMOA Pathway and the SDGs (Goals 13 & 17).

Pacific Regional Frameworks:• FPR – Leaders commitment to collective action

for deeper Pacific regionalism (CC and Resilience a FPR priority)

• FRDP (through PRP) shapes regional support on climate change (and disaster risk management) financing.

• Pacific SDG Roadmap – streamlined reporting against 132 indicators (climate change a priority)

Country PrioritiesNational Frameworks:• National Sustainable Development Strategy/Plan

or Green Growth Framework

• National Climate Change Policy & Joint National Action Plan for CCDRM

• Nationally Determined Contribution (NDC)

• National Adaptation Plan (NAP)

• Nationally Adaptation Programme of Action (NAPA)

• Nationally Appropriate Mitigation Actions (NAMA)

• GCF Country Strategic Framework

• Adoption of a “multi-tiered (sub-national, national, regional and international), multi-stakeholder” approach to progress this work on climate change financing as tasked by Forum Leaders and Economic Ministers.

Regional support for Climate Finance in the Pacific

Climate Finance: Accessibility by PICs (1)• Over 2010 – 2014, a total of ~US$645m was allocated to the 14 PICs as international

climate finance (Atteridge and Canales, 2017 – SEI Report). • Mostly from bilateral sources (54%) & largely project-based.

• Comprehensive national climate finance assessments completed for 9 PICs (PCCFAF and CPEIR) show increased quantities of climate finance being accessed, but significant portion outside of country systems. PICs undertaken PFM reforms to manage resources.

Committed amounts in US$m over 2010-2014 (Source: SEI Report 2017)

• Sources and allocation between adaptation vs mitigation (2010-2014)

Source: https://www.sei-international.org/mediamanager/documents/Publications/Climate/SEI-WP-2017-04-Pacific-climate-finance-flows.pdf

Climate Finance: Accessibility by PICs (2)

• Current access to key Multilateral Funds (source: climatefundsupdate.org)Climate Finance: Accessibility by PICs (3)

Source: https://www.sei-international.org/mediamanager/documents/Publications/Climate/SEI-WP-2017-04-Pacific-climate-finance-flows.pdf

Climate Finance: Accessibility by PICs (4)• Beneficiary sectors from key multilateral sources (2010 - 2014): Top six

are enabling environment (policy dev, research – 60%), renewable energy, water, disaster risk reduction, environmental protection & transport infrastructure.

Climate Finance: Accessibility to GCF• Between Nov 2015 and present, ~US$251m was approved for projects in 7 PICs.

Two additional projects are considered this week at the 18th GCF Board meeting.

• FSM, Cook Islands, Vanuatu, Nauru, Kiribati, Palau, Niue have had readiness grants approved from GCF. Fiji accessed readiness grant from the German Government.

Country Project focus GCF funding Accredited EntityFiji Water Supply & Sanitation USD31m grant ADBTuvalu Coastal Protection USD36m grant UNDPSamoa Flood Management USD57.7m grant UNDPVanuatu Climate Info Services USD23m grant SPREPCook Islands Renewable Energy USD17m grant ADBSolomon Islands Tina River Hydropower USD86m (70m loan & 16m

grant)World Bank

PNG (part of global multi-country)

Energy generation & access USD250m equity (global) & USD15m grant (global)

EIB

RMI PREP Phase II - Resilience USD25m grant World BankNauru Climate Resilient Port USD26.91m grant ADB

Climate Finance: Are we accessing our fair share?

Source: climatefundsupdate.org

• Mid-2017, Micronesian Conservation Trust (MCT) on behalf of FSM became the first National Implementing Entity (NIE) to the GCF in the Pacific. MCT also an NIE to the Adaptation Fund. Fiji Development Bank is at advanced stage of GCF NIE application. Other PICs actively pursuing NIE status to Adaptation Fund and GCF.

• Cook Islands Ministry of Finance and Economic Management is an NIE to the Adaptation Fund. MFEM is also a national readiness delivery partner for the GCF.

• Other national ministries of finance (e.g. Kiribati, Solomon Islands etc.) are pursuing readiness delivery partner status from the GCF.

• SPREP is the sole Regional Implementing Entity to both the GCF and Adaptation Fund (pursuing accreditation to become an Implementing Agency for the GEF). SPC is seeking to become the second RIE to the GCF in the Pacific. SPC is also a GCF readiness

delivery partner.

• PIFS is an Observer to the GCF Board Meeting and a readiness delivery partner.

Climate Finance: Accreditation for Direct Access

Regional level:• CROP Working Arm on Resilient Development (WARD) – CROP officials level

supporting CROP Executives for coordinated approach. Currently chaired by SPC and meets at least 3 times per year.

• Development Partners on Climate Change (DPCC) – Convened by UNDP every two months for partners in Suva (open to regional organisations, INGOs and development partners).

• GCF Accredited Entities Coordination Meeting – convened by PIFS at least twice per year since June 2015.

• Climate Finance Stakeholders Group – jointly convened by GIZ/PIFS for partners/projects supporting climate finance readiness in the Pacific.

National level:• Vanuatu NAB Climate Finance Taskforce – meets regularly and includes private

sector and civil society (supported by a Climate Finance Roadmap).• Samoa Sector Coordinators Meeting – meets monthly• Tonga JNAP Taskforce

Climate Finance: Coordination

Regional level:• Efforts are still limited and lack of clarity on the available funding opportunities and

how to access them – made difficult by the way many global climate funds are designed.

• PIPSO launch of Pacific regional Business Resilience Network in July 2017-could potentially link up national business resilience councils and/or national private sector organisations.

National level:• MoU signed between national government and chamber of commerce in Vanuatu

and Solomon Islands – support engagement on issues of interest.• Fiji and Vanuatu recently launched National Business Disaster Resilience

Councils – plan in place to roll out to other PICs.• NGO consortium in Vanuatu to develop GCF project for community resilience

building.

Climate Finance: Engagement of Private Sector & Civil Society

Challenges & Lessons Learned• Access barriers – technical capacity to manoeuvre accessrequirements, co-financing expectations, cost of projectdevelopment, delay in fund disbursement etc.• Weak PFM systems – absorptive capacity, procurement, audit, anti-corruption, whistle blowers etc.• Horizontal and vertical institutional coordination. • Policy coherence between climate change and development.• Need to catalyse private finance.

Opportunities: Engagement with Donors/Funds• Engagement with GCF through Accredited Entities.• Engagement with the GEF, LDCF & SCCF through Implementing

Agencies.• Engagement with the AF through Accredited Institution [NIE, RIE and

MIE].

• Key policy forums and meetings:– GCF Executive Board/GEF Governing Council/LDCF &SCCF Governing Council– GCF Structured Dialogue– GEF Constituency Meetings and Expanded Constituency Meetings– GEF Replenishment meetings– GEF Assembly

• UNFCCC COP meetings (SBI & SBSTA)˪ UNFCCC Standing Committee on Finance

Opportunities: Access to Climate Finance Information

– Pacific Regional Climate Finance Navigator and Adaptation Tool (GriffithUniversity & SPREP under iCLIM project)

– SPREP Adaptation donor database in 2013– SPREP Pacific Climate Change Portal– PIFS/SPREP Guide on key funding sources for CCDRM in 2015– World Bank Climate Change Knowledge Management Portal– ADB Climate Change Financing Dashboard– GCF Portfolio Dashboard– GCF Project & Programmes– GEF Project Database– GEF Country Profiles– Adaptation Fund Project & Programmes– UN Environment Climate Change– UNDP Climate Change Adaptation– UNFCCC Standing Committee on Finance

Thank youFollow-up contact:

– Exsley Taloiburi – exsleyt@forumsec.org– Meapelo Maiai – meapelom@sprep.org