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ENVIRONET Implementing Agenda 2030 and the Paris Agreement on climate change March 2 nd , 2016 Gisela Campillo and Tara Shine OECD DAC Secretariat

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ENVIRONET Implementing Agenda 2030 and the Paris

Agreement on climate change

March 2nd, 2016

Gisela Campillo and Tara Shine

OECD DAC Secretariat

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Outline

Post 2015 development landscape: an overview 1

Opportunities and challenges 2

Guiding questions 3

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• More ambitious agenda - larger number of

issues to engage with;

• Environmental sustainability part of every

SDG;

• More resources needed and more finance

to flow from a wide range of sources.

• 2015-agreements call for country-led

action;

• “leave no one behind“

Implications of SDGs for development co-operation 1

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• Climate finance and development finance

need to target the most vulnerable;

• ODA is stalling and climate-related ODA is increasing;

• LDCs are very dependent on ODA, but ODA to poorest countries is falling as their vulnerability to climate change increases;

Synergies between climate finance and development finance (I) 1

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In

Trends in ODA vs. Climate-related ODA 1 Figure 1: Trends in bilateral climate change ODA and total ODA from DAC members (2005-2014).

Source: CRS DAC Statistics (2016).

-

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

USD

, b

illio

n

Total ODA Total ODA excl. climate-related ODA Climate-related ODA

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• Climate-related ODA is 18% of total bilateral ODA

in 2013-2014;

• 63% of climate-related ODA for mitigation only, 25% for adaptation only and 12% for both

• More gender mainstreaming in adaptation than mitigation: opportunities exist for greater women’s participation in CC decision making

Need for coordination to maximise

effectiveness!

Synergies between climate finance and development finance (II) 1

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• Country ownership to enhance coherence and effectiveness;

• Smarter use of ODA to catalyse investment;

• Greater mainstreaming of environment and climate in development co-operation.

Opportunities 2

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In

Integration of climate into sectors (2014) 2

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• Reduce fragmentation: complementarity and coherence

• Improve access to finance, especially for LDCs and SIDS

• Use the wealth of experience of DAC members

Opportunities 2

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• Mainstreaming strategies and direct support to “green” sectors – Inclusion of environment and climate as a key priority in DAC

members’ development co-operation strategies

– Allocation of budget for environmental sustainability and/or climate change objectives

– Climate proofing ODA

– Direct support to “green” sectors, including environmental, climate, biodiversity and desertification projects in partner countries

• Building Partnerships to improve delivery of environment-related aid – Partner with countries to build capacity

– Partner with private sector

– Partner with other providers

– Partner with climate/environment partner country leaders

Experience of ENVIRONET integrating environment and climate (I): results from the survey (2015) 2

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Experience of ENVIRONET integrating environment and climate (II) 2

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leiem

• Defining climate finance and increasing transparency – Role of UNFCCC

– Role of OECD DAC

• Increased need for resources and pressure on ODA – Multiple demands – more resources – capacity

requirements

– Balancing adaptation and mitigation

– Paris decision para 44 - banks to report on how dev and climate finance are climate proofed / resilient

Challenges (I) 2

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• Predictability of support – 0.7% and the $100 billion

– Paris Agreement article 9.5 – biennial reports with projected levels of public financial resources

– DAC donors forward spending plans

• Competition between climate ODA and ODA for other purposes – Global picture inconclusive

– Need for country level analysis

– The ‘new and additional’ dilemma

Challenges (II) 2

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Figure 1: Historical evolution of bilateral ODA dedicated to selected sectors as % of total bilateral ODA of

DAC members (2005-2014)

Source: CRS DAC Statistics (2016)

Competition between uses of ODA 2

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• Prioritising public international climate finance for particularly vulnerable countries and people • Addis, Action 2030 and Paris – all highlight particularly

vulnerable countries (LDCs and SIDS) and people

• But majority of climate related development finance goes to MICs and ODA to LDCs is declining

• DAC ODA modernisation

• Changing the trend? More public finance to LDCs / SIDS for adaptation - different role or ODA for mitigation in MICs…

• Don’t forget the people - Gender mainstreaming, pro-poor and rights based approaches

Challenges (III) 2

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Recipients of adaptation and mitigation finance 2

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Guiding questions (I)

• What synergies and key opportunities are embedded in the 2015 agreements for environment and development co-operation practices?

• How are DAC members positioning to implement

the development co-operation commitments embedded in these agendas?

• What strategic changes, priorities and approaches

will be taken in their agencies’ programs on climate change, environment and development?

Guiding questions (I) 3

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• How can financial support for climate continue to increase without causing a shortfall in funding for other development priorities, especially in LDCs and SIDS?

• How can official development finance, including ODA,

maximise its catalytic role and leverage other resources for climate action and environmental sustainability while protecting the most vulnerable?

• What the tools and resources do DAC members have for

SDG implementation and climate action? Are there gaps and how can we work together to ensure we have what is needed?

Guiding questions (II) 3

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Thank you.

Questions? Comments? [email protected]