session 3: climate change financing opportunities
TRANSCRIPT
SESSION 3:Climate Change Financing
Opportunities
Why climate change financing?
A plethora of funds and initiatives are supporting climate change initiatives – bilateral, multilateral, INGOs, Financial InstitutionsOpportunities for adaptation (and mitigation) financingPackaging of projects is necessary to establish the links between climate change and SLM
Climate change relatedfinancing opportunities for SLM
AFOLUREDDRenewable energiesEnergy efficiency at the household level
AFOLU: Agriculture, forestry, land use sectors
→ Activities with potential for establishing synergies between UNCCD et UNFCCCForestry/ reforestation, improved forest mgt, avoided deforestation, forest degradation)Cultivated landsLivestockAgriculture
REDD: → Prevent/ limit the impact of activities
causing the deforestation/ degradation of forestsConversion of forests into agricultural landsNon sustainable forestry and illegal cuttingSlash-and-burn culture
Renewable energiesBiogas (from agricultural, animal, and industrial waste streams) HydroWindSolar
Household level energy efficiency Capture and use of landfill gas Wood stovesSolar coolingLighting efficiency
What is the origin of the greenhouse gases in the AFOLU
sector?
Household cooking Waste and biomass Agricultural waste
Animal waste Deforestation Land degradation
UNFCCC Instruments
UNFCCC
Convention
Mitigation
(Kyoto Protocol)
Adaptation
Domestic measures
Flexible Mechanisms
Joint Implementation (IC)
International Emissions Trading
Clean Development Mechanism (CDM)
Strategies Instruments
Adaptation Funds
Bilateral and multilateral financing
Adaptation Fund
Special CC Fund (SCCF)
Least Developed Country Fund (LDCF)
REDD (Post Kyoto-2012)
Carbon emissions trading: AFOLU
Annex I Countries – Gaps in meeting targets after domestic mitigation measures
Regulated Market (Kyoto): Clean Development Mechanism (CDM)
Non-Annex I Countries
Certified Emissions Reductions
(CERs)
$$$ + Technology Transfer
SLM activities that capture carbon and thus generate CERs
Approved CDM Methodologies ONLY!
Carbon emissions trading: AFOLU
Anyone: Governments, NGOs, Individuals, Private sector
Voluntary Carbon Markets
Anyone
Verified Emissions Reductions
(VERs)
$$$ + Technology Transfer
SLM activities that capture or avoid GHG and thus generate carbon credits
Voluntary Market Standards
AFOLU: Examples
Agriculture
Biogas and methane recoveryFertiliser switch or management in order to reduce N2O emissions
Cropland and grazing land management: Soil conservation (e.g. no-till farming)Livestock management
Forestry Afforestation / ReforestationAgroforestry
Primary forest conservation (Reduced Emissions from Deforestation and forest Degradation - REDD)
Rural Energy
Energy efficiencyRenewable energyBiofuels and fuel switch
Kyoto + Voluntary
Voluntary only
Kyoto + Voluntary
Voluntary only
Kyoto + Voluntary
Compliance markets Voluntary markets
Regional distribution of projects
From: UNEP RISOE 2009
Voluntary markets
Type of projects
From: UNEP RISOE 2009
Compliance markets
GEF Funds Extent of Benefits
Scope of Focus Focus Areas Size (m
US$)
Eligibility
Strategic Priority for Adaptation (SPA)
Global EnvironmentalBiological diversity, climate change, international waters, land degradation, POPs
50 Non-Annex 1
Least Developed Countries Fund(LDCF)
Local, regional, or
global
Developmental Health, agriculture, water, infrastructure 115 Only LDC in
Non-Annex 1
Special Climate Change Fund (SCCF)
Local, regional or
globalDevelopmental
Health, agriculture, water, infrastructure 50 Non-Annex 1
Adaptation Fund Community
, regional or national
Full adaptation cost of projects and progs. to address the adverse effects of climate change
Water resources, agriculture, coastal zone management and marine resources, ecosystem management.
500 (estima
te)
“Particularly vulnerable” developing country Parties; AOSIS
Conclusions
Potential for mobilising finance through climate change mechanisms but hindrances still exists (scope of CDM, complicated procedures, lack of capacities for developing projects etc.)The design of a future REDD mechanism is crucial to its applicability to SLM related activities
Thank you!
Camilla Nordheim-LarsenFinancing Strategy Officer
Global Mechanism of the UNCCDRome, Italy
Email: [email protected]
www.gm-unccd.org