GEF Focal Area & Cross Cutting Strategies

Climate Change Mitigation

benoit.lebot@undp.org

 GEF Expanded Constituency Workshop

Central Africa Constituency

 15-17 February, 2011Hotel Memling, Kinshasa, DRC

2

Can we avoid Climate Change?

NO

Can we reduce Climate Change?

YES

The International Context encourages climate change mitigation activities

• The Cancun COP 16 confirms the target of maintaining global warming below 2°C

• Each country to develop National Appropriate Mitigation Actions (NAMAs)

• The price of conventional energy is high & will continue to rise

• Role of deforestation understood & accepted

18%

1%

8%

14%

59%

World Greenhouse Gas Emissions

CH4

N2OF Gas

CO2

From Combustion

CO2

From LUCF

64%

0%

11%

20% 5%

Mainstreaming CCRM into UNDP Core Activities- RBA RR Cluster Meeting

Greenhouse gas emissions in Sub-Sahara countries

CH4

N2O

F Gas

CO2

CO2

From LUCF

Source: IPCC AR4, Synthesis Report (shares are for 2004)

All sectors & regions have the potential to contribute

Note: estimates don’t include non-technical options such as lifestyle changes

1

2

3

4

Trend in Green House Gases

Low Carbon Path

Behavior & Waste

EfficiencyRenewable Energy

REDD & Sequestration

The goal of GEF Climate Change Mitigation is to support countries toward

a low-carbon development path

• Promote low-carbon technologies• Promote energy efficiency• Promote renewable energy• Low-carbon urban transport• Sustainable management land-use

change, & forestry (LULUCF)• Enabling Activities & Capacity Building

GEF 5 promotes low-carbon technologies

1.Technologies demonstrated, deployed & transferred

2. Enabling policy environment and mechanisms

Prevision $300 M (out of $1 350 M GEF 5)

GEF 5 promotes energy efficiency

1. Policy, legal and regulatory frameworks

2. Sustainable financing mechanisms

Prevision $260 M (out of $1 350 M GEF 5)

GEF 5 promotes renewable energy

1. Policy and regulatory frameworks

2. Increased investment in RE technologies

Prevision $320 M (out of $1 350 M GEF 5)

GEF 5 promotes sustainable urban transport

1. Legal and regulatory frameworks

2. Increased investment in sustainable transport

Prevision $250 M (out of $1 350 M GEF 5)

GEF 5 promotes the Conservation & enhancement of carbon stocks through

LULUCF

1. Good management practices in LULUCF

2. Restoration and enhancement of carbon stocks in forests and non-forest lands (peatlands)

Prevision $50 M (out of $1 350 M GEF 5)

GEF 5 supports enabling activities & capacity building

1. National Communications and Other Obligations under the UNFCCC

2. Countries can also receive support for vulnerability & adaptation assessments, capacity building, and technology needs assessments

Prevision $50 M (out of $1 350 M GEF 5)

GEF CC Mitigation & Carbon Finance(i) capacity building to help create enabling legal & regulatory

environments;

(ii) support of programmatic carbon finance & other activities under the post-2012 climate regime;

(iii)demonstration of technical and financial viabilities of technologies;

(iv)partial risk guarantees and contingent financing for carbon finance projects; and

(v) co-financing of innovative projects, with credits to be retained in the recipient country for further project replication.

Features of GEF & CDMGEF CDM

Mandate Financial mechanism of UNFCCC

Market-based mechanism of KP

Objective To transform the markets toward less-carbon-intensive paths

To meet emissions targets for developed countries and provide finances resources and technology for developing countries

Strategy Barrier removal; long-term; catalytic

Project based; focusing on direct emissions reduction

Modality Upfront grant or concessional financing for agreed incremental costs

Payment on delivery of emissions reduction (to improve project revenue streams)

Project type

Preventive measures to reduce/avoid CO2; primarily RE, EE, and transport projects

End-of-pipe fixes to capture/decompose gases of high GWP (HFC, CH4); relatively few RE, EE, transport projects

M&V Ex ante estimate; weak traceability; self-reporting

Rigorous methodology; quantified, monitored, verified, and certified

What GEF has supported

GEF creates enabling legal, regulatory environment; CF supports specific projects.

GEF demonstrates technical and financial viability; CF replicates.

GEF provides partial risk guarantees; CF participates in project financing.

GEF provides funding from non-CC focal areas; CF project earns credits from reduced/avoided emissions.

What GEF has shied away from

o Creation and operation of DNAs

o CDM methodology development

o PIN/PDD development

o CDM project verification and certification

o (Co-)Financing projects that earn CERs

GEF & CDM: “Rule of Thumb” in the Past“Rule of Thumb” in the Past

Climate Change Mitigation under GEF 5

• Focal Area Allocation $1,360 million

• Under STAR $1,088 million

• Contribution to Sustainable

Forest Management $100 million.

As Climate Changes, Can We?

Kofi Annan, UN SGWednesday, November 8, 2006

A

Thank you for your kind attention benoit.lebot@undp.org