climate-related development finace in eecca countries
TRANSCRIPT
CLIMATE-RELATED DEVELOPMENT FINANCE IN
EECCA COUNTRIES
Takayoshi KATO Policy Analyst, Environment Directorate, OECD
11 July 2016
From
ToThis presentation is based on the draft paper (OECD, forthcoming) . Please seek the permission of the author before citing this presentation.
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• This OECD work aims to: – Improve clarity on how 11 Eastern Europe,
Caucasus and Central Asian countries and their development co-operation partners are working together to finance climate action in the countries; and
– Explore ways in which these countries can assess readiness to access various climate finance sources.
• The work uses the data on “climate-related development finance” committed in 2013-2014 and reported by the DAC members and multilateral providers of finance to the OECD DAC Creditors Reporting System*.
• For definitions of climate-related development finance under the DAC CRS, see: http://www.oecd.org/dac/environment-development/Annex%2018.%20Rio%20markers.pdf
• For further information on the database, visit also: http://www.oecd.org/development/stats/rioconventions.htm
OECD work on climate-related development finance in EECCA countries
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Climate-related development finance vs total finance for climate actions (USD in 2014)
Global total CF (±340-650bln)
All CF from developed to developing countries (±40 - 175bln)
Climate-related ODA, climate funds, and MDB finance (±35-48bln)
Source: UNFCCC SCF (2016) 2014 Biennial Assessment and Overview of Climate Finance Flows Report
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Climate-related development finance*Global vs EECCA countries (committed 2013-14)
EECCA 7.1%(USD 3.3bln/y)
Global 92.9%(USD 47.3bln/y)
2013-2014
Mitigation vs Adaptation (USD bln/y)
Sources: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting SystemNote(*): The financial flows are delivered through bilateral (mainly DAC members) and multilateral channels and calculated as a two-year average between 2013 and 2014.
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Comparison across the regions(Finance committed vs GDP per capita)
Ann
ual f
inan
ce c
omm
itted
(U
SD
bln
pe
r yea
r: av
erag
e in
201
3 an
d 20
14)
Sources: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System
GDP per capita PPP (USD: 2014)
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Comparison across the regions(Finance committed vs Population)
Population (million: 2014)
Ann
ual f
inan
ce c
omm
itted
(U
SD
bln
pe
r yea
r: av
erag
e in
201
3 an
d 20
14)
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Development finance for climate action by country in EECCA (2013-2014)
Annual climate-related development finance flows committed to EECCA countries in 2013 and 2014
7Source: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System; WB (2016) World Development Indicators
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0
200
400
600
800
1 000
1 200
0 5 000 10 000 15 000 20 000 25 000 30 000
GDP per capita PPP (2014)
Annu
al fi
nanc
e com
mitt
ed
(USD
mln
pe
r yea
r: av
erag
e in
201
3 an
d 20
14)
UZB
UKR
KAZ
TJKGEO
ARM BLR
AZETKM
MDA
KGZ
Ave.
AcronymsARM Armenia AZE Azerbaijan BLR Belarus GEO Georgia KAZ Kazakhstan KYR KyrgyzstanMDA Moldova TJK Tajikistan TKM Turkmenistan UKR Ukraine UZB UzbekistanAv. Average
Level of committed amounts vs GDP per capita (PPP) by EECCA countryAnnual climate-related development finance and GDP per
capita PPP (2-year average between 2013 and 2014)
Sour
ce: O
EC
D (f
orth
com
ing)
Clim
ate-
rela
ted
deve
lopm
ent fi
nanc
e in
E
ECC
A, b
ased
on
OE
CD
-DAC
Cre
dito
r R
epor
ting
Syst
em; W
B (2
016)
Wor
ld
Dev
elop
men
t Ind
icat
ors
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Sectoral level analysis of climate-related development finance in EECCA
Annual climate-related development finance by sector (2-year average between 2013 and 2014)
Sources: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System
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Mainstreaming of climate-consideration into development finance in EECCA
Climate-related development finance as a share of total bilateral and multilateraldevelopment finance (2-year average between 2013 and 2014)
Sources: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System
(%)
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Financial instruments and concessionality
Sources: Based on the data from OECD (2016) OECD-DAC Creditor Reporting System
Annual climate-related development finance by financial instruments at EECCA regional level (2-year average between 2013 and 2014)
(*)Note: Information on concessionality is not available
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Major channels of finance in 2013-2014(Multilateral channels)
Major multilateral channels of climate-related development finance (2-year average between 2013 and 2014: USD mln per year)
Sources: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System
Multilateral
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Major channels of finance in 2013-2014(Bilateral channels)
Sources: OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System
Major bilateral channels of climate-related development finance (2-year average between 2013 and 2014: USD mln per year)
Bilateral
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Access to dedicated climate funds/programmes
Major dedicated climate funds/programmes accessed by the EECCA countries
(Between 2007 and 2016)
Sources: Websites of individual climate funds/facilities; OECD (2015), Climate Fund Inventory, Prepared for the G20
(*) Note: Six countries (ARM, AZE, BLR, GEO, MDA and UKR) are eligible for NIF and Green for Growth Fund.
(The number of EECCA countries)
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Global EECCAInternational Access 30 3
Direct Access 11 0
International Access 13 2
Direct Access 3 0
Adaptation Fund (2011-2015)
Green Climate Fund (2015-2016)
Access modalities for the Adaptation Fund and the GCF (EECCA vs Global)
Sources: AF (2015) Independent Evaluation of the Adaptation Fund; GCF (2016) GCF Website
No EECCA country has used direct access modalities to date to apply for support from the Adaptation Fund or GCF.
Intended Nationally Determined Contributions
Nationally Appropriate Mitigation Actions
Low Emission Development Strategy
National-level adaptation strategy
National-level climate strategy
ARMAZEBLRGEOKGZKYGMDATJKTKMUKRUZB
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National-level climate policy documents (Examples of existing/planned ones)
Intended Nationally Determined Contributions
Nationally Appropriate Mitigation Actions
Low Emission Development Strategy
National-level adaptation strategy
National-level climate strategy
ARMAZEBLRGEOKGZKYGMDATJKTKMUKRUZB
Approved/submitted Being developed
Sour
ces:
OEC
D (f
orth
com
ing)
Clim
ate-
rela
ted
deve
lopm
ent
finan
ce in
EEC
CA,
bas
ed o
n th
e co
untr
ies’
IND
Cs
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Economic incentives for low-carbon development
Direct subsidies for private sector
Investment in publicly owned infrastructure
Fiscal/Tax incentives
Feed-in-Tariff or premium payments
Environmental labeling
ALL
e.g. KAZ
e.g. GEO, TJK, UKR, KGZ
e.g. BLR, MDA, UKR, UZB
e.g. UKR, BLR, ARM, AZE
Sources: UNECE/REN21 (2015) UNECE Renewable Energy Status Report; OECD (forthcoming) Climate-related development finance in EECCA, based on OECD-DAC Creditor Reporting System
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Country Fund
Armenia The Renewable Resources and Energy Efficiency Fund of Armenia (R2E2)
Belarus The Innovation Fund of the Ministry of Energy
Georgia The Georgian Energy Development Fund (GEDF)
Kazakhstan Samruk-Kazyna (Sovereign wealth fund)
Moldova The Energy Efficiency Fund
Uzbekistan The Fund for Reconstruction and Development
Selected examples of national funding entities in the EECCA countries
• Now being prepared for the 11 countries in Eastern Europe, Caucasus and Central Asia countries (to be finalised by end 2016)
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Individual country reports
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• A significant amount of climate-related development finance committed, while big difference among countries and sectors.
• Large share of finance committed to energy sector, while adaptation finance still low (even in the countries with priorities in adaptation)–larger gaps than global avg.
• Great potential to mainstream climate considerations into broader development finance (i.a. transport, agriculture, forestry, and water sectors)
• Overall, scaled-up finance still needed for climate actions from various financial sources.
Findings (1/3)
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• Further work needed also on how to better use international climate finance to mobilise more private and domestic green investments where relevant (e.g. by de-risking instruments, fiscal incentives, capital investments, TA for local banks & project developers.)
• A clearer picture of how/what/where climate finance is delivered within the country could help improve effectiveness of such finance.
Findings (2/3)
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• Analytical work needed to better understand; what readiness of each country to access CF is, which capacities/skills should be enhanced; how to do it, etc.
• Progress being made in development of climate policies, while worth considering how to better implement them and connect “dots”. (e.g. NDCs, LEDS, NAMAs, NAPs, TNAs and national climate and development policies/strategies).
• Pursuing Direct Access Modality could help to strengthen ownership over accessing and absorbing finance.
• National funding entities: potential actors to enhance ownership and efficiency?
Findings (3/3)
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• Greening finance– Reforming energy subsidies– Facilitating access to private-sector finance for green
investments (e.g. environmental lending)– Better financial planning in the public sector
• Greening industry• Water resource management and green growth• Measuring green growth
More work under the GREEN Action Programme
See also our latest Brochurehttps://issuu.com/oecd.publishing/docs/from_eap_to_green_action_programme_?e=3055080/36192948
See website http://www.green-economies-eap.org/
Thank you.
Contact: Takayoshi [email protected]
http://www.oecd.org/env/outreach/eap-tf.htm http://www.oecd.org/environment/