EU Multiannual Financial Framework post 2020

 
EU Multiannual Financial Framework post 2020
External Financing Instruments Webinar
 
Wednesday October 10
th
 2018
 
Maeve McLynn
Climate Action Network (CAN) Europe
Finance and Subsidies Policy Coordinators
maeve@caneurope.org
www.caneurope.org
 
Important Backdrop
 
“Making finance flows consistent with a pathway
towards low greenhouse gas emissions and
climate-resilient development”
 - 
Paris Agreement, Article 2
 
The current MFF and climate finance
commitments
 
20%
 of the EU budget on 
climate action
 
For international climate finance, this equates to 
€14
billion
 over the 7-year budget period
 
All in the form of
 grants & public funding
 
Channelled mainly through the Development Cooperation
Instrument (EU budget) and the European Development
Fund (currently outside of the EU budget)
 
The current MFF and international climate finance in numbers
 
Source: Act Alliance EU Report & Briefing, 2018
 
The MFF and international climate finance in numbers (2)
 
The MFF and international climate finance in numbers (3)
 
The figure
 shows the adaptation-mitigation share over time.
EC-EDF’s around 50% - 50%
EIB share of adaptation funding  has remained close to an average of 4% over the 2013-2016
 
New MFF Proposal
Fair and Balanced
A new Architecture for the Future
 
In billion euro, current prices
 
Current External Instruments
 
New external instruments
 
Total: EUR 123 bn
 
Notable shifts in political direction of external action
 
The proposed Regulation - 
‘Neighbourhood, Development and International
Cooperation Instrument’ 
(NDICI) – 
combines the objectives of EU Foreign
Affairs and international development cooperation
 
The Regulation seeks to serve Agenda 2030, the European consensus on
development, and the Global Strategy on Foreign and Security policy
 
Thus it promotes the 
EU’s interests, objectives & values
 in neighbouring and
partner countries; demonstrates reaction to recent migration trends in the
European Neighbourhood
 
Simplification and flexibility 
key aspects of the instruments to allow for
funding unexpected challenges or trends
 
External Instruments Architecture
 
Geographic Programmes €68 million 
(priority) – receive the bulk of
funding
 
Thematic Programmes €7 million 
(secondary) – smaller pot of
funds that finance a number of core and small-scale projects
 
Rapid Response 
€4 million
 
(tertiary) – to support quick response to
crises
 
 
External Instruments Architecture & Climate Action
 
EC development cooperation through current & proposed instruments
does not support fossil fuel infrastructure
 
Targeted climate action is covered in thematic programmes (
Global
Public Goods and Challenges
 – budget of €3 mln)
 
But the 
25% climate action 
target for whole budget needs to be
reflected & operationalised across the Geographic Programmes
 
Opportunity in NDICI to make all overseas support Paris compatible; in
particular support for NDC implementation, resilience-building &
longer term sustainable development plans
 
Brief Impressions of CSOs of the design of the
Regulation
 
PROS
 
Less fragmentation of the numerous
financial instruments,
 
Overall a higher pot of money for
external action
 
Mainstreams climate, environment,
gender and aligns funding with
development plans in partner
countries
 
CONS
 
Not clear how it will guarantee
sustainability, accountability or
transparency standards
 
Growing reliance on private financing
and  blending instruments (EFSD+) –
poses a risk to climate objectives &
action, particularly in lower-income
countries & communities
 
Heavy focus (and funding) on
geographic programmes which don’t
have a good track record on
mainstreaming climate change
 
 
 
 
Links to Climate Convention & Paris climate finance
commitment
 
Increasing the share of climate action in EU external instruments will
ensure that climate finance support will remain (at least) consistent &
(ideally) increase
 
Ongoing pressure on the EC and Member States to increase and
guarantee 
support to adaptation
 
EU budget brings into light 
reporting and methodology 
of climate
finance, in parallel with UNFCCC discussions on methodology –
opportunity to improve and better streamline EU reporting standards
 
Tailored and coherent support for NDC implementation in developing
countries
 
 
 
Advocacy Opportunities
 
EU level:
European Parliament outreach (DEVE & AFET Committees); building
alliances with progressive MEPs
Perm Reps – especially large and medium donor countries;
 
National level:
Development & environment ministries
Busy year ahead of Foreign Affairs and General Affairs Council meetings;
targeted messages to ministries & Ministers
For this, we need to Inform & (ideally) mobilise CAN Europe member
groups to engage with their governments
 
Question:
Do national groups need more information/resources/material on climate
action in EU spending?
 
Thank you for your attention.
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  1. EU Multiannual Financial Framework post 2020 External Financing Instruments Webinar Wednesday October 10th 2018 Maeve McLynn Climate Action Network (CAN) Europe Finance and Subsidies Policy Coordinators maeve@caneurope.org www.caneurope.org

  2. Important Backdrop Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development - Paris Agreement, Article 2

  3. The current MFF and climate finance commitments 20% of the EU budget on climate action For international climate finance, this equates to 14 billion over the 7-year budget period All in the form of grants & public funding Channelled mainly through the Development Cooperation Instrument (EU budget) and the European Development Fund (currently outside of the EU budget)

  4. The current MFF and international climate finance in numbers Mitigation, adaptation & cross-cutting 2011 2012 2013 2014 2015 2016 EU Budget (est) 155 277 650 640 992 European Development Fund (est) 499 678 418 41 523 Total 654 959 1,068 681 1,515 2,732 Source: Act Alliance EU Report & Briefing, 2018

  5. The MFF and international climate finance in numbers (2)

  6. The MFF and international climate finance in numbers (3) The figure shows the adaptation-mitigation share over time. EC-EDF s around 50% - 50% EIB share of adaptation funding has remained close to an average of 4% over the 2013-2016

  7. New MFF Proposal Fair and Balanced A new Architecture for the Future In billion euro, current prices

  8. Current External Instruments

  9. New external instruments Broad Instrument: 73% Instrument for Pre-Accession Assistance: 12% Humanitarian Aid: 9% Common Foreign and Security Policy (CFSP): 2% Flexibility Cushion: 2% Overseas territories & countries/ Greenland: 0,4% Others: 1,06% Total: EUR 123 bn

  10. Notable shifts in political direction of external action The proposed Regulation - Neighbourhood, Development and International Cooperation Instrument (NDICI) combines the objectives of EU Foreign Affairs and international development cooperation The Regulation seeks to serve Agenda 2030, the European consensus on development, and the Global Strategy on Foreign and Security policy Thus it promotes the EU s interests, objectives & values in neighbouring and partner countries; demonstrates reaction to recent migration trends in the European Neighbourhood Simplification and flexibility key aspects of the instruments to allow for funding unexpected challenges or trends

  11. External Instruments Architecture Geographic Programmes 68 million (priority) receive the bulk of funding Thematic Programmes 7 million (secondary) smaller pot of funds that finance a number of core and small-scale projects Rapid Response 4 million(tertiary) to support quick response to crises

  12. External Instruments Architecture & Climate Action EC development cooperation through current & proposed instruments does not support fossil fuel infrastructure Targeted climate action is covered in thematic programmes (Global Public Goods and Challenges budget of 3 mln) But the 25% climate action target for whole budget needs to be reflected & operationalised across the Geographic Programmes Opportunity in NDICI to make all overseas support Paris compatible; in particular support for NDC implementation, resilience-building & longer term sustainable development plans

  13. Brief Impressions of CSOs of the design of the Regulation CONS PROS Not clear how it will guarantee sustainability, accountability or transparency standards Less fragmentation of the numerous financial instruments, Growing reliance on private financing and blending instruments (EFSD+) poses a risk to climate objectives & action, particularly in lower-income countries & communities Overall a higher pot of money for external action Mainstreams climate, environment, gender and aligns funding with development plans in partner countries Heavy focus (and funding) on geographic programmes which don t have a good track record on mainstreaming climate change

  14. Links to Climate Convention & Paris climate finance commitment Increasing the share of climate action in EU external instruments will ensure that climate finance support will remain (at least) consistent & (ideally) increase Ongoing pressure on the EC and Member States to increase and guarantee support to adaptation EU budget brings into light reporting and methodology of climate finance, in parallel with UNFCCC discussions on methodology opportunity to improve and better streamline EU reporting standards Tailored and coherent support for NDC implementation in developing countries

  15. Advocacy Opportunities EU level: European Parliament outreach (DEVE & AFET Committees); building alliances with progressive MEPs Perm Reps especially large and medium donor countries; National level: Development & environment ministries Busy year ahead of Foreign Affairs and General Affairs Council meetings; targeted messages to ministries & Ministers For this, we need to Inform & (ideally) mobilise CAN Europe member groups to engage with their governments Question: Do national groups need more information/resources/material on climate action in EU spending?

  16. Thank you for your attention.

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