Introduction to the OECD DAC Statistics & Rio markers

Stephanie Ockenden & Mariana Mirabile, DAC Secretariat

Workshop on partner country perspectives for tracking domestic and international climate and biodiversity-related finance 19 May, OECD Paris

Outline

1. Overview of DAC Statistical System

2. What are the Rio markers?

3. How marker scores are applied for policy objectives?

4. The key features and caveats to note

5. Two perspectives for viewing DAC statistics

6. Accessing the data

7. Future improvements

OECD DAC Statistical System

• Development finance statistics are: – reported by members,

international organisations & some non-DAC and charities

– collected within the Creditor Reporting System (CRS),

– monitored by Secretariat & WP-STAT (quality controls & reviews)

– transparent - activity-level ODA data publically available online

• Reporting guided by standardised definitions and classifications, e.g. – commitments,

disbursements – sector classifications – Bilateral / multilateral

(avoids double counting) – exchange rates – ODA definition

Identifying climate, biodiversity- & desertification-related finance

4 Rio markers: • Climate Change Adaptation, and Mitigation • Biodiversity • Desertification

+ 1 Environmental Marker

• Rio markers indicate policy objectives i.e. activities targeting Rio conventions as a principal

objective, a significant objective, or not at all Applied ex-ante, purpose based, cross-cutting and multiple

objectives can be tagged

• To ensure common understanding among reporters, application of each marker guided by: Definition, eligibility criteria, examples, and guidance Recorded in CRS reporting directive & Handbook

How does the marker methodology indicate policy objectives?

Activities are screened, identified and marked as either, targeting the Rio conventions as a: • 2 = Principal

objective • 1 = significant

objective, or • 0 = not targeted

• The Rio markers are descriptive rather than strictly quantitative

• Track mainstreaming and allow for an approximate quantification of financial flows targeting the objectives of the Rio conventions.

Key features and caveats: Marker presentation and quantification

Principal +significant data = Upper bound or total estimate

Principal data only = Flows specifically targeting Rio conventions

• Finance reported by Parties to the conventions is often based on, but may not be directly comparable to, Rio marker data

• Allows tracking of multiple objectives

simultaneously whilst avoiding double counting Figure 18.2. The multiple objectives of environmental development co-operation

3 year annual average, 2010-2012, bilateral commitments, USD billion, constant 2012 prices

Source: OECD DAC Creditor Reporting System statistics, July 2014.

Key features and caveats: Tracking of Multiple

Access the data

• Data can be analysed from two perspectives

Recipient perspective Provider perspective

How many resources were invested in Mexico for renewable energy projects?

How many resources did Norway invest to fund green projects?

Bilateral provider

Multilateral institution

Developing country

Transfer of resources (USD)

Bilateral flows

Two perspectives

How the DAC statistical system work

Core contribution

Multilateral outflows

Recipient perspective = bilateral flows + multilateral outflows Provider perspective = bilateral flows + core contributions

Bilateral provider

Multilateral institution

Developing country

Bilateral flows rio marked

Two perpectives

How the DAC statistical system work Climate-related development finance

Imputed multilateral

contributions

Climate-related components for

MDBs & Rio markers for climate funds

Recipient perspective = bilateral flows Rio marked + climate component of multilateral outflows Provider perspective = bilateral flows Rio marked + Imputed multilateral contributions

Transfer of resources (USD)

Access the data

• Data visualisation • Excel

Goal: DAC methodologies and data remain a point of reference on Official Development Assistance & Other Official Flows* targeting environmental objectives Areas for improvement :

• Quality: “fine tuning” Rio marker definitions

• Use: supporting transparency and exploring the evidence base to support more quantified reporting

• Coverage: collaboration with MDBs and multilateral funds to provide integrated picture of bi and multi flows, and imputed multilateral contributions.

• Communication: statistical flyers and data visualisation portals

ENVIRONET-WP-STAT Task Team on improvement to the Rio markers, environment and development finance statistics

Questions for discussion today & tomorrow:

• Are countries and stakeholders aware of the

DAC statistics and using these? • Can the communication and user access to

these be improved? If so how? • Do countries have similar definitions

understandings of what are climate and biodiversity activities?

OECD DAC CRS Rio marker statistics and analysis www.oecd.org/dac/stats/rioconventions.htm Joint ENVIRONET-WP-STAT Task Team: Stephanie.Ockenden@OECD.org and Valerie.Gaveau@OECD.org

Additional slides

To what & how are the markers applied?

Coverage • Bilateral flows only • Official Development

Assistance (ODA) – Since 1998 for biodiversity,

climate mitigation and desertification

– Mandatory from 2006 flows – Adaptation introduce and

mandatory from 2010 flows • Other Official Flows (OOF)

– Voluntary basis since 2012 (excl. export credits)

Application • Every activity screened • Excluding:

– general budget support imputed student costs,

– debt relief except debt swaps,

– administrative costs, – development awareness,

and, – refugees in donor countries

• Commitments basis