GEF-5 Climate Change Mitigation Strategies and Financing
GEF-5 Strategy for
GEF-5 Strategy for
Climate Change Mitigation
Climate Change Mitigation
G
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Mandate of the GEF
An operating entity of the financial mechanism of the
UNFCCC (and other global environmental conventions)
A partnership of 182 member countries along with the
private sector and civil society
10 GEF implementing and executing agencies
–
MDBs: World Bank and regional development banks
–
UN agencies: UNDP, UNEP, FAO, IFAD, and UNIDO
Provides grant and concessional financing for projects in
developing countries and economies in transition that
protect the global environment while promoting
sustainable development
Financing Climate Change under
the GEF Trust Fund
GEF Trust Fund invested in about $3
billion in over 150 countries
–
Mitigation
–
Adaptation
–
Technology Needs Assessments
–
National Communications to the UNFCCC
Largest multilateral public-sector
technology transfer mechanism
–
Financed demonstration, deployment,
diffusion, and transfer of environmentally
sound technologies
Roles of the GEF in Climate Change Financing
Catalytic
–
Leveraged more than $18 billion in co-
financing on its $
3
billion of investments
Innovative
–
Leader in financing new, emerging low-
carbon technologies (FCB, CSP, etc.)
–
Pioneer in supporting market-based
approaches (e.g., ESCOs) and innovative
financial instruments
Cost-effective
–
Over 2.5 billion tonnes of CO
2
avoided
–
Amounts to slightly over $1/tonnes CO
2
COP Mandate to GEF on Technology Transfer
Poznan Strategic Program on Technology
Transfer (
COP decision 2/CP.14)
–
Support for Technology Needs Assessments
–
Support for Technology Transfer Pilot
Projects
–
Dissemination of successfully demonstrated
technologies and know-how
GEF-5 replenishment
–
$4.3 billion total (six focal areas)
–
$1.4 billion for climate change mitigation
Guiding Principles for GEF-5 Strategy
Responsiveness to Convention guidance
Consideration of national circumstances of recipient countries
Cost-effectiveness in achieving global environmental benefits
Strategic Objectives for GEF-5
SO1:
Demonstration, deployment, and transfer of
innovative low-carbon technologies
SO2:
Market transformation for energy efficiency in
industry and the building sector
SO3:
Investment in renewable energy technologies
SO4:
Energy efficient, low-carbon transport and urban
systems
SO5:
Conservation and enhancement of carbon stocks
through sustainable management of land use and
forestry
SO6: Enabling activities and capacity building
Strategic Objectives for GEF-5-
SO1:
Demonstration, deployment, and transfer of
innovative low-carbon technologies
GEF intervention under this objective will include technical
Technical assistance for creating an enabling policy environment
for technology transfer, institutional and technical capacity building,
Establishment of mechanisms for technology transfer, North-South
and South-South technology cooperation, purchase of technology
licenses, and investment in pilot projects.
Project supported under this objective should clearly identify the
source of the technology and the target for the transfer, the scope
and the mechanism of technology co-operation and transfer, and
the market potential and strategy for replication.
Project activities may include developing local capacity to adapt
exogenous technologies to local conditions and to integrate them
with endogenous technologies.
Strategic Objectives for GEF-5-
SO2:
Market transformation for energy efficiency in
industry and the building sector
In the industrial sector, GEF will support cover promoting energy
efficient technologies and practices in industrial production and
manufacturing processes (including agro-processing) especially in the
small and medium-sized enterprises (SMEs) countries.
In the building sector, GEF support will cover residential, commercial,
and public buildings, and include both new buildings and retrofitting of
existing buildings.
Project activities may incorporate the use of solar energy and thermal
capacity of shallow ground for heating and cooling in the building
system. Emphasis will be placed on integrated and systemic
approaches and high performance buildings, appliances, and
equipment. Promotion of energy efficient cook stoves will be covered
under this objective..
Strategic Objectives for GEF-5-
SO3:
Investment in renewable energy technologies
GEF will support, on-grid renewable energy programs , decentralized
production of electric power and the use indigenous renewable
sources such as biomass, solar, wind, hydro, and geothermal.
GEF projects can promote local SMEs to enhance their technical
capacities to provide installation, operation, and maintenance services
for renewable energy technologies.
GEF support will extend to recovering methane from biomass wastes
for power generation or heat production.
GEF support may also extend to supporting sustainable production of
biomass for solid and liquid biofuels as a substitute to fossil fuels where
appropriate conditions, including safeguard policies, exist.
Strategic Objectives for GEF-5-
SO4:
Energy efficient, low-carbon transport and urban
systems
Options for GEF intervention will include the following types of
activities ;transport planning, public transit systems, energy efficiency
improvement of the fleet, efficient traffic control and management,
transport demand management, and non-motorized transport.
Technological options in the transport sector, such as promoting clean,
low-carbon vehicles..
GEF projects will address not only climate change mitigation but also
local air pollution, traffic congestion, and access to affordable and
efficient transport and public utilities.
GEF support under this objective will involve technical assistance in
transport and urban planning, development of innovative financing
mechanisms, awareness campaigns, and investments in high-
performance technologies
Strategic Objectives for GEF-5-
SO5:
Conservation and enhancement of carbon stocks
through sustainable management of land use and forestry
In GEF-5, the GEF will expand the LULUCF program within the climate
change focal area and through cross-cutting projects linking to SFM as
well as biodiversity and land degradation focal areas.
The objective on LULUCF during GEF-5 will be two-fold: one is to
conserve, restore, enhance, and manage the carbon stocks in forest
and non-forest lands, and the other is to prevent emissions of the
carbon stocks to the atmosphere through the reduction of the pressure
on these lands in the wider landscape.
GEF intervention will cover the spectrum of land-use categories
reducing deforestation and forest degradation and enhancing carbon
stocks in non-forest lands, as well as management of peatland.
Strategic Objectives for GEF-5-
SO5:
Conservation and enhancement of carbon stocks
through sustainable management of land use and forestry
During GEF-5, the GEF will support activities that will develop national
systems to measure and monitor carbon stocks and fluxes from forest
and non-forest lands, strengthen related policies and institutions,
undertake good management practices with local communities, and
establish financing mechanisms and investment programs.
GEF-5 has created a separate envelop of $250 million for funding that
will be operated as an incentive mechanism for beneficiary countries
willing to combine significant fractions of their STAR allocations from
biodiversity, climate change and land degradation for more
comprehensive SFM/REDD-plus projects and programs.
For every three dollars of investment from STAR resources from two or
more focal areas allocated to a particular country, one dollar will be
released from the SFM/REDD-plus incentive mechanism to the project
being proposed.
Strategic Objectives for GEF-5-
SO6: Enabling activities and capacity building
The GEF will ensure adequate resources to support non-Annex I
Parties to meet their obligation under the Convention. In addition, the
GEF will continue to fund the preparation and updating of TNAs,
especially for countries that did not receive support for TNAs during
GEF-4, in accordance with Convention guidance.
Subject to emerging COP guidance, the GEF may finance activities to
support capacity building activities, implementation of Articles 6 of the
Convention on education, training, and public
Options to be explored to support the carbon markets in GEF-5 may
include: (i) capacity building to help create enabling legal and
regulatory environments; (ii) support of programmatic carbon finance
and other activities under the post-2012 climate regime;
Contact Information
Ms. Chizuru Aoki
Coordinator-Climate Change
Mitigation
Email:
caoki@thegef.org
Website:http://www.thegef.org/gef/site
s/thegef.org/files/documents/docu
ment/GEF-5_CC_strategy.pdf
LDCF/SCCF Climate Change Adaptation
LDCF/SCCF Climate Change Adaptation
Strategy
Strategy
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LDCF and SCCF – a key role in global learning on
adaptation in practice
•
LDCF and SCCF – funds whose priority is adaptation
•
Managed and administered independently of from
the GEF Trust Fund
•
Among the very first international funds to provide
financing for concrete on-the-
ground adaptation activities
•
Learning by doing: What is “adaptation”
in practice?
17
Donor Funding of LDCF/SCCF
LDCF --$345M pledged from 23 donors
SCCF -- $186M pledged from 14 donors
Total > $530 M
Allocated, Committed or Disbursed:
–
62 projects in 64 developing countries
through:
•
LDCF for $156 million
•
SCCF for $100 million
–
45 National Adaptation Programs of
Action completed, 48 financed (LDCs) $12 M
As of 12/31/2010
18
18
LDCF SCCF Adaptation Strategy: Pillars
•
LDCF and SCCF Strategy pivots on
financing adaptation
•
An increase in adaptation funding, in
order to support the increase in volume
and scale of intervention – e.g.
programmatic approach
•
An increase in the predictability of the
funding, in order to better facilitate
medium-term planning
•
Channeling GEF-managed adaptation
financing resources through LDCF and
SCCF – GEF-5 strategy does not include
adaptation.
19
LDCF SCCF Adaptation Strategy: Pillars
•
Responsiveness to UNFCCC guidance
•
Responsiveness to vulnerable
developing country needs
•
Moving to the next stage of LDCF and
SCCF funding – a programmatic
approach
•
Responsiveness to Independent
Evaluations of the SPA and LDCF
•
Complementarily among different
adaptation-related funds
20
LDCF/SCCF Adaptation Strategy 2010-2014
•
Goal:
To support developing
countries to increase resilience to
climate change through both
immediate and longer-term
adaptation measures in
development policies, plans,
programs, projects and actions.
•
Impact:
Reduce absolute losses
due to climate change, including
variability.
21
21
LDCF and SCCF Strategic Objectives
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Pioneering Activities in Priority Sectors and Areas of
Intervention: LDCF
23
Pioneering Activities in Priority Sectors and Areas of
Intervention: SCCF
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Innovative Features of LDCF/SCCF
25
GEF TRUST FUND:
•
Incremental cost
•
Global benefits
•
STAR
•
Co-financing
LDCF & SCCF:
•
Additional cost
•
NO Global benefits requirement
•
No STAR
•
Existing BAU Financing
•
Higher MSP ceiling for LDCF
•
Rolling basis approval for
LDCF
Thank you!
26
For more information, please visit LDCF/SCCF websites:
LDCF:
http://www.thegef.org/gef/ldcf
SCCF:
http://www.thegef.org/gef/sccf
The Global Environment Facility (GEF) plays a crucial role in financing climate change mitigation efforts, leveraging billions of dollars and promoting sustainable development worldwide. Through its various initiatives, the GEF supports technology transfer, catalyzes co-financing, and adheres to guiding principles such as cost-effectiveness and responsiveness to global environmental challenges.
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GEF-5 Strategy for Climate Change Mitigation GEF Expanded Constituency Workshop March 1 3, 2011 Belize City, Belize
Mandate of the GEF An operating entity of the financial mechanism of the UNFCCC (and other global environmental conventions) A partnership of 182 member countries along with the private sector and civil society 10 GEF implementing and executing agencies MDBs: World Bank and regional development banks UN agencies: UNDP, UNEP, FAO, IFAD, and UNIDO Provides grant and concessional financing for projects in developing countries and economies in transition that protect the global environment while promoting sustainable development
Financing Climate Change under the GEF Trust Fund GEF Trust Fund invested in about $3 billion in over 150 countries Mitigation Adaptation Technology Needs Assessments National Communications to the UNFCCC Largest multilateral public-sector technology transfer mechanism Financed demonstration, deployment, diffusion, and transfer of environmentally sound technologies
Roles of the GEF in Climate Change Financing Catalytic Leveraged more than $18 billion in co- financing on its $3 billion of investments Innovative Leader in financing new, emerging low- carbon technologies (FCB, CSP, etc.) Pioneer in supporting market-based approaches (e.g., ESCOs) and innovative financial instruments Cost-effective Over 2.5 billion tonnes of CO2avoided Amounts to slightly over $1/tonnes CO2
COP Mandate to GEF on Technology Transfer Poznan Strategic Program on Technology Transfer (COP decision 2/CP.14) Support for Technology Needs Assessments Support for Technology Transfer Pilot Projects Dissemination of successfully demonstrated technologies and know-how GEF-5 replenishment $4.3 billion total (six focal areas) $1.4 billion for climate change mitigation
Guiding Principles for GEF-5 Strategy Responsiveness to Convention guidance Consideration of national circumstances of recipient countries Cost-effectiveness in achieving global environmental benefits
Strategic Objectives for GEF-5 SO1: Demonstration, deployment, and transfer of innovative low-carbon technologies SO2: Market transformation for energy efficiency in industry and the building sector SO3: Investment in renewable energy technologies SO4: Energy efficient, low-carbon transport and urban systems SO5: Conservation and enhancement of carbon stocks through sustainable management of land use and forestry SO6: Enabling activities and capacity building
Strategic Objectives for GEF-5- SO1: Demonstration, deployment, and transfer of innovative low-carbon technologies GEF intervention under this objective will include technical Technical assistance for creating an enabling policy environment for technology transfer, institutional and technical capacity building, Establishment of mechanisms for technology transfer, North-South and South-South technology cooperation, purchase of technology licenses, and investment in pilot projects. Project supported under this objective should clearly identify the source of the technology and the target for the transfer, the scope and the mechanism of technology co-operation and transfer, and the market potential and strategy for replication. Project activities may include developing local capacity to adapt exogenous technologies to local conditions and to integrate them with endogenous technologies.
Strategic Objectives for GEF-5- Market transformation for energy efficiency in industry and the building sector SO2: In the industrial sector, GEF will support cover promoting energy efficient technologies and practices in industrial production and manufacturing processes (including agro-processing) especially in the small and medium-sized enterprises (SMEs) countries. In the building sector, GEF support will cover residential, commercial, and public buildings, and include both new buildings and retrofitting of existing buildings. Project activities may incorporate the use of solar energy and thermal capacity of shallow ground for heating and cooling in the building system. Emphasis will be placed on integrated and systemic approaches and high performance buildings, appliances, and equipment. Promotion of energy efficient cook stoves will be covered under this objective..
Strategic Objectives for GEF-5- Investment in renewable energy technologies SO3: GEF will support, on-grid renewable energy programs , decentralized production of electric power and the use indigenous renewable sources such as biomass, solar, wind, hydro, and geothermal. GEF projects can promote local SMEs to enhance their technical capacities to provide installation, operation, and maintenance services for renewable energy technologies. GEF support will extend to recovering methane from biomass wastes for power generation or heat production. GEF support may also extend to supporting sustainable production of biomass for solid and liquid biofuels as a substitute to fossil fuels where appropriate conditions, including safeguard policies, exist.
Strategic Objectives for GEF-5- Energy efficient, low-carbon transport and urban systems SO4: Options for GEF intervention will include the following types of activities ;transport planning, public transit systems, energy efficiency improvement of the fleet, efficient traffic control and management, transport demand management, and non-motorized transport. Technological options in the transport sector, such as promoting clean, low-carbon vehicles.. GEF projects will address not only climate change mitigation but also local air pollution, traffic congestion, and access to affordable and efficient transport and public utilities. GEF support under this objective will involve technical assistance in transport and urban planning, development of innovative financing mechanisms, awareness campaigns, and investments in high- performance technologies
Strategic Objectives for GEF-5- Conservation and enhancement of carbon stocks through sustainable management of land use and forestry SO5: In GEF-5, the GEF will expand the LULUCF program within the climate change focal area and through cross-cutting projects linking to SFM as well as biodiversity and land degradation focal areas. The objective on LULUCF during GEF-5 will be two-fold: one is to conserve, restore, enhance, and manage the carbon stocks in forest and non-forest lands, and the other is to prevent emissions of the carbon stocks to the atmosphere through the reduction of the pressure on these lands in the wider landscape. GEF intervention will cover the spectrum of land-use categories reducing deforestation and forest degradation and enhancing carbon stocks in non-forest lands, as well as management of peatland.
Strategic Objectives for GEF-5- Conservation and enhancement of carbon stocks through sustainable management of land use and forestry SO5: During GEF-5, the GEF will support activities that will develop national systems to measure and monitor carbon stocks and fluxes from forest and non-forest lands, strengthen related policies and institutions, undertake good management practices with local communities, and establish financing mechanisms and investment programs. GEF-5 has created a separate envelop of $250 million for funding that will be operated as an incentive mechanism for beneficiary countries willing to combine significant fractions of their STAR allocations from biodiversity, climate change and land degradation for more comprehensive SFM/REDD-plus projects and programs. For every three dollars of investment from STAR resources from two or more focal areas allocated to a particular country, one dollar will be released from the SFM/REDD-plus incentive mechanism to the project being proposed.
Strategic Objectives for GEF-5- SO6: Enabling activities and capacity building The GEF will ensure adequate resources to support non-Annex I Parties to meet their obligation under the Convention. In addition, the GEF will continue to fund the preparation and updating of TNAs, especially for countries that did not receive support for TNAs during GEF-4, in accordance with Convention guidance. Subject to emerging COP guidance, the GEF may finance activities to support capacity building activities, implementation of Articles 6 of the Convention on education, training, and public Options to be explored to support the carbon markets in GEF-5 may include: (i) capacity building to help create enabling legal and regulatory environments; (ii) support of programmatic carbon finance and other activities under the post-2012 climate regime;
Contact Information Ms. Chizuru Aoki Coordinator-Climate Change Mitigation Email: caoki@thegef.org Website:http://www.thegef.org/gef/site s/thegef.org/files/documents/docu ment/GEF-5_CC_strategy.pdf
LDCF/SCCF Climate Change Adaptation Strategy GEF Expanded Constituency Workshop March 1 3, 2011 Belize City, Belize
LDCF and SCCF a key role in global learning on adaptation in practice LDCF and SCCF funds whose priority is adaptation Managed and administered independently of from the GEF Trust Fund Among the very first international funds to provide financing for concrete on-the- ground adaptation activities Learning by doing: What is adaptation in practice? 17
Donor Funding of LDCF/SCCF LDCF --$345M pledged from 23 donors SCCF -- $186M pledged from 14 donors Total > $530 M Allocated, Committed or Disbursed: 62 projects in 64 developing countries through: LDCF for $156 million SCCF for $100 million 45 National Adaptation Programs of Action completed, 48 financed (LDCs) $12 M As of 12/31/2010 18 18
LDCF SCCF Adaptation Strategy: Pillars LDCF and SCCF Strategy pivots on financing adaptation An increase in adaptation funding, in order to support the increase in volume and scale of intervention e.g. programmatic approach An increase in the predictability of the funding, in order to better facilitate medium-term planning Channeling GEF-managed adaptation financing resources through LDCF and SCCF GEF-5 strategy does not include adaptation. 19
LDCF SCCF Adaptation Strategy: Pillars Responsiveness to UNFCCC guidance Responsiveness to vulnerable developing country needs Moving to the next stage of LDCF and SCCF funding a programmatic approach Responsiveness to Independent Evaluations of the SPA and LDCF Complementarily among different adaptation-related funds 20
LDCF/SCCF Adaptation Strategy 2010-2014 Goal: To support developing countries to increase resilience to climate change through both immediate and longer-term adaptation measures in development policies, plans, programs, projects and actions. Impact: Reduce absolute losses due to climate change, including variability. 21 21
LDCF and SCCF Strategic Objectives Reduce vulnerability to the adverse impacts of climate change e.g. reduced risks to economic losses through implementation of adaptation measures 1. Increase adaptive capacity to respond to the impacts of climate change e.g. within relevant development sectors and natural resources; diversified and strengthened livelihoods and sources of income 2. Promote transfer and adoption of adaptation technologies as defined under the Climate Convention (example: SCCF-TT Jordan) 3. 22
Pioneering Activities in Priority Sectors and Areas of Intervention: LDCF Food Security and Agriculture drought resistant crop, farming techniques Water Resources Management resilient water infrastructure, rainwater harvesting, micro surface and ground water treatment facilities Disaster Risk Management Integrated disaster risk management strategies, glacial lake outburst floods hazard management Community Based Adaptation forest management, mangrove restoration, alternative livelihoods, strengthened animal health systems Natural Resources Management efficient wood management, ecotourism, fishing around mangroves, renewable energy use Health climate change challenges incorporated into health programs, use of medicinal plants to treat diseases Infrastructure critical infrastructure 23
Pioneering Activities in Priority Sectors and Areas of Intervention: SCCF Water Resources Management drainage and water-saving technologies, increased reservoir capacity through energy efficiency of turbines Agriculture/Land Management drip irrigation, drought and salinity resistant crop varieties Infrastructure Development infrastructure for alternative water sources, e.g. climate resilient roads and harbors Fragile Ecosystems repopulation of coral reefs, buffer zones and biological corridors between vulnerable wetlands Integrated Coastal Zone Management nourishment, protection structures (e.g. jetties, groins, breakwaters) Health heat-wave warning systems, surveillance and response for malaria epidemics Disaster Risk Management early warning systems Cross Cutting Issues information sharing systems to monitor crop choices and contingency crop plans, and pest and disease severity beach reinforcement and 24
Innovative Features of LDCF/SCCF GEF TRUST FUND: LDCF & SCCF: Incremental cost Global benefits STAR Co-financing Additional cost NO Global benefits requirement No STAR Existing BAU Financing Higher MSP ceiling for LDCF Rolling basis approval for LDCF 25
Thank you! For more information, please visit LDCF/SCCF websites: LDCF: http://www.thegef.org/gef/ldcf SCCF: http://www.thegef.org/gef/sccf 26
