curso sobre financiamiento para el cambio climático
DESCRIPTION
Explica los conceptos clave y ejemplos en la practica, sobre el financiamiento para el cambio climático. Este artículo forma parte de un curso impartido por el World Bank Group. Parte 1 de 5.TRANSCRIPT
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Module 01Climate Finance EssentialsLesson 1Key Concepts and Examples of Climate Finances in Practice
Presentation Script
Climate Finance Essentials
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
1. Home
Welcome to this e-course on Climate Finance. A large part of solving the climate
change challenge is using climate finance in a transformative way to enable the
transition to low-carbon and climate-resilient growth. In this course, you will
learn key concepts and draw from illustrative examples to build a working
knowledge of climate finance.
Click Next to begin.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
2. Introduction
In this first module of the course, you will become familiar with the key concepts
of climate finance, investment needs and financial flows. You will cover this
material in three lessons, shown here.
Take a moment to become familiar with the key questions addressed in Module
1.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
3. Key Concepts of Climate Finance
In this lesson, you will learn key concepts such as the need for climate finance to
help countries achieve low-carbon and climate-resilient growth in addressing the
climate change challenge. You will also learn the evolving global finance
architecture in the context of the United Nations Framework Convention on
Climate Change negotiations, and the magnitude of the investment challenge. By
the end of this lesson, you will also be able to identify how climate finance can
support low-carbon and climate-resilient growth.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
4. The climate change challenge
First, let us look at what is currently happening with emissions and surface
temperature - to fully understand the climate change challenge. According to the
recently published report by the Intergovernmental Panel on Climate Change
(IPCC), the atmospheric concentrations of three major greenhouse gases -
carbon dioxide, methane, and nitrous oxide - have increased to levels
unprecedented in the last 800,000 years. Carbon dioxide concentrations have
increased by 40% since pre-industrial times, primarily from fossil fuel emissions,
and secondarily from net land use change emissions. As for global mean surface
temperature, each of the last three decades has been successively warmer at the
Earth's surface than any preceding decade since 1850, and models show that we
are on our way to 3 and 4 degrees warming by 2100 with no additional
mitigation efforts. As stated in the World Bank report Turn Down the Heat, Why
a 4 Degree world must be avoided, emissions must reduce by 50% from 1990
levels by 2050 to limit warming to 2 degrees.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
5. The climate change challenge
Climate finance is necessary to combat this climate change challenge. We know
that, left unchecked, climate change threatens the health, homes, and
livelihoods of millions of people around the globe, with the poorest and most
vulnerable hit the hardest. Developing countries are particularly vulnerable to
climate change and are already suffering from severe flooding, longer droughts,
crop damage and biodiversity loss. Addressing the causes and impacts of climate
change, and planning for a resilient future, while maintaining development
priorities, all requires additional financial resources. Climate finance is therefore
vitally important to solving the global climate change challenge.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
6. The critical need for climate finance
While there is no internationally agreed definition at present for climate finance,
it is generally thought to refer to financial resources invested in mitigation and
adaptation measures. How much climate finance is required to achieve low-
carbon and climate-resilient growth, depends on the mitigation and adaptation
activities desired. Take a moment to review the various ranges of additional
resources required for addressing climate change. You can see that mitigation, as
well as adaptation interventions, require significant additional investments
compared to business as usual. Investment needs vary by country and the size,
nature and timeline of mitigation and adaptation interventions. These ranges
also illustrate that the overall dollar amount for climate finance needed to
combat climate change will be evolving as the world continues to grapple with
how it plans to respond to the challenge.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7. Climate Finance Architecture under the UNFCCC
The international community is taking action on climate finance and the
investment challenge under the United Nations Framework Convention on
Climate Change (or UNFCCC). At the 13th Conference of the Parties in Bali in
2007, the Parties identified finance as a critical issue, pursuing enhanced action
with a financial architecture under the UNFCCC, to which we will turn to now.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7.1. UNFCCC - 15th COP 2009, Copenhagen
One main aspect of the finance architecture is the commitment to mobilize
resources. This emerged at the 15th Conference of the Parties in Copenhagen in
2009. Industrialized countries party to the Convention agreed to a goal of
mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of
developing countries. At the same time, parties agreed to what is known as Fast
Start Financing' or initial funds approaching USD 30 billion dollars to concrete
actions in developing countries, leading to the USD 100 billion dollar goal.
Click on the button to learn more.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7.2 UNFCCC - 16th COP 2009, Cancun
Another main aspect of the finance architecture under the Convention is the
delivery of finance. In order to scale up the provision of long-term financing for
developing countries, Governments at the 16th COP in 2010 in Cancun decided
to establish a Green Climate Fund (or GCF) as an operating entity of the
financial mechanism of the Convention. Click on the button to learn more about
the GCF.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7.3. UNFCCC - 17th COP 2011, Durban
The 17th COP in 2011 in Durban launched the work of the Green Climate Fund,
and decisions were made around the governing instrument for the GCF.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7.3.1 SC - 17th COP 2011, Durban
Another main aspect of the finance architecture under the Convention that
evolved in Durban is the institutional arrangements to provide oversight to the
planned, mobilized and delivered finance. Parties decided to establish a Standing
Committee on Finance (or SC) to assist the Conference of the Parties in
exercising its functions in relation to the financial mechanism of the Convention.
At the 17th COP, the SC launched its work, further defining the roles and
functions, as well as composition and working modalities.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7.4 UNFCCC - 18th COP 2012, Doha
At the 18th COP in Doha in 2012, the standing committee agreed to establish
clarity in the delivery of climate finance, particularly through preparing an
assessment of climate finance flows starting in 2014 and to organize a forum for
climate finance communication, focusing on adaptation finance in 2014.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
7.5 UNFCCC - 19th COP 2013, Warsaw
The finance architecture further evolved at the 19th COP in 2013 in Warsaw,
where Parties welcomed the establishment of the independent GCF secretariat
and the selection of the Executive Director of the GCF by the GCF Board. The
general message from Warsaw was to gain clarity on the delivery of climate
finance, with a large emphasis on the need to finalize as soon as possible, the
essential requirements to receive, manage, program and disburse financial
resources from the Green Climate Fund.
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7.6 UNFCCC 20th COP 2014, Lima
The 20th COP in 2014 in Lima, Peru, generated much conversation around climate finance, including a call for developed countries to enhance the quantitative and qualitative elements of a pathway for 2016 through 2020. Governments also noted that urgent support was required for developing countries to build institutional capacities and enable private sector participation, particularly in Least Developed Countries, or LDCs, Small Island Developing States, or SIDS, and African countries.
Ultimately, the Lima Call for Climate Action reiterated the global objective of holding global temperature increase limits below 1.5 or 2 degrees Celsius compared to pre-industrial levels, and set new levels of ambition for the Intended Nationally Determined Contributions (or INDC's), which should go beyond current targets. It also requested Parties continue enhancing enabling environments, policy frameworks, and methodologies that improve the transparency of climate finance projects. Click on the button to learn more.
Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
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7.6.1 Finance architecture under the UNFCCC
Another major topic in Lima was the readiness and preparatory support for the GCF. Governments welcomed the 10.2 billion dollars in pledges to date and noted that the GCF will be able to make funding decisions no later than April 2015, or when 50% of all pledges are received. Once operationalized, the GCF will enhance climate finance deployment. Governments also urged the GCF to accelerate the start of its Private Sector Facility. Click on each button to learn more.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
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Ministerial Dialogue
For the first time, the Conference of the Parties decided to convene a biennial High-level Ministerial Dialogue on Climate Finance, which launched at COP 20 in Lima. This Dialogue provides a unique opportunity for Ministers to engage with each other to reflect on the current institutional arrangements and the information tools for climate finance under the UNFCCC, and to further discuss their potential for scaling up funding.
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7.6.2 Finance architecture under the UNFCCC (cont.)
The next international climate negotiations are the 21st COP in Paris in 2015. This is a landmark date for reaching agreement on new ways forward in scaling up climate finance and overall efforts in tackling climate change. Leading up to Paris, Parties to the Convention worldwide will be making efforts in preparation for this critical climate negotiations meeting, where securing a universal climate change agreement in 2015 will be discussed. For the latest information, visit the UNFCCC website, which you can do by clicking the logo on-screen.
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7.6.3 The magnitude of the investment challenge
While there has been great momentum at the international level in climate
finance, nevertheless, the investment challenge is significant. The most recently
released Global Landscape of Climate Finance 2013 report by Climate Policy
Initiative (CPI) finds that global climate finance flows have plateaued at USD 359
billion. This is far below the UNFCCC goal to mobilize a 100 billion dollars a year
by 2020, or in other words, 1 trillion dollars in total. The gap between actual and
needed funds for mitigation and adaptation is large.
Click on the button to see how this amount compares to other global expenses.
Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
Other Global Expenses
The magnitude of the climate finance investment challenge may appear daunting
at first. But, it is dwarfed when compared to other global expenses, like fossil
fuel subsidies. In 2012, national governments poured USD 544 billion into fossil-
fuel subsidies. These subsidies are used by governments to keep the price of
fossil energy artificially low. By removing subsidies for fossil energy,
governments can create favorable conditions for alternative energy, and at the
same time free-up resources for climate finance. Also, according to the IPCC,
reduction of subsidies for GHG-related activities in various sectors can achieve
emission reductions as well.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
8. Participant Question
Lets take a moment to reflect on your own experience with climate finance.
How can climate finance help to advance low-carbon and climate-resilient
growth in your country?
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
9. How can climate finance support low-carbon and climate-resilient growth?
More and more countries are integrating low-carbon and climate-resilient
growth into sustainable development plans and investment decisions. With
support from developed countries, development institutions, the private sector
and civil society, many developing countries have begun to integrate climate
change considerations into national development plans, focusing on different
priorities according to their national circumstances and capacities, as well as
international support.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
9.1 How can climate finance support low-carbon and climate-resilient growth?
Countries require diverse climate finance investments to carry forth such climate
change considerations in their national development plans. Resources are
required to build national capacities, cover costs and risks, help enable national
climate-friendly investing and catalyze more climate finance in order to
transition to low-carbon and climate-resilient growth, as depicted in the
framework displayed.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
9.2 How can climate finance support low-carbon and climate-resilient growth?
With climate finance support available, countries can pursue any combination of
national-level interventions that support low-carbon and climate-resilient
growth. Take a moment to read and consider this list. After reviewing, we see
the range of interventions that are made possible by climate finance, which can
help address climate change and shift countries toward a low-carbon and
climate-resilient growth pathway. The next challenge is how to mobilize climate
finance investments, particularly in developing countries, to make these types of
interventions possible.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
10. Typology of investments that climate finance can cover
According to common practitioner use, climate finance can usually be used to
refer to different investments. We will now review a typology of investments
that climate finance is used to cover.
Click on each of the buttons to learn more.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
Incremental Costs
The incremental cost is the present value of the extra capital and operating costs
associated with a mitigation or adaptation measure over its lifetime; for
example, the present value of the capital and operating costs of a solar power
plant less the present value of the capital and operating costs of the natural gas
unit displaced. Climate finance is provided to incentivize the shift to mitigation or
adaptation technologies by compensating for the increase in cost associated
with these options. Incremental costs often make the difference in the final
investment decision, influencing where investors decide to put their money, and
are generally funded by public climate finance resources.
Click on the button to view a graph displaying the annual investment flows for
mitigation activities over the next two decades.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
This graph shows the change in annual investment flows for mitigation activities
from the average baseline level over the next two decades. What is interesting
here is that such investment changes based on model studies and model
comparisons reflect a significant shift in investment behavior - increasing
resources dedicated to low-carbon technologies, and decreasing investment in
the two high emitting technologies represented: fossil fuel power plants without
carbon capture and storage, and extraction of fossil fuels. This underscores that
investment needs are evolving in the direction of addressing climate change.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
Incremental Investment
The incremental investment is the extra capital cost required to implement a
mitigation or adaptation measure; for example, the investment in wind turbines
less the investment that would have been required for the coal generating unit
displaced. Incremental investment is generally covered by private sources of
funding.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
Cost to Remove Barriers
Climate finance also helps cover the costs to remove barriers - both domestic
and foreign - to technology introduction and create an enabling environment
that promotes low emissions and climate resilient development plans.
Click on each of the highlighted icons to learn more about the types of potential
barriers and then click on the button for additional considerations.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
11. Climate finance funds under UNFCCC
To help manage delivery and deploy climate finance to cover the types of costs
just mentioned, parties to the UNFCCC Convention have established four special
funds: Special Climate Change Fund (or SCCF), the Least Developed Countries
Fund (or LDCF) - both managed by the Global Environment Facility (or GEF) - the
Green Climate Fund (or GCF) under the Convention, and the Adaptation Fund (or
AF) under the Kyoto Protocol. These special funds help developing countries in
addressing the climate change challenge. The UNFCCC Finance portal provides
updated information on these funds. Click on the button to learn more.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
12. World Bank Examples of Climate Finance Funds and Facilities
Outside of the UNFCCC, a number of other bilateral and multilateral funds were
created in past years. The World Bank has established or housed a number of
funds and facilities that are also helping developing countries with climate
finance.
Click on each of the logos to learn more.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
13. Climate finance supporting Colombias sustainable transport and energy goals
A concrete example of climate finance helping countries transition to low-carbon
and climate-resilient growth, is funding from the Clean Technology Fund (or CTF)
which is supporting Colombia's implementation of abatement measures in two
key sectors -- urban transport and energy efficiency. Both sectors are identified
as ready for scaling-up of investment, through use of CTF resources, and as
exhibiting high potential for transformation change in terms of shifting
investment patterns onto a lower carbon path. Through the specific
interventions in the targeted three consuming sectors (industrial, commercial
and residential), it is estimated that the CTF Efficiency Program would save 4.9
Mt CO2e over a 20-year period, with a total program cost of US$147.2 million.
Click on the button to learn more.
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Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
14. Summary
In summary, you have seen how climate finance is in critical need, in order to
help countries address the climate change. The finance architecture under the
UNFCCC Convention has evolved to encompass mobilization, delivery and
oversight of climate finance to developing countries now and for the future.
While the magnitude of the investment challenge seems large, if mobilized,
climate finance makes it possible for countries to implement interventions for
low-carbon and climate-resilient growth. In the next lesson, you will become
more familiar with the current landscape of climate finance and what
instruments are critical to mobilizing more climate finance to fill the resource
gap.
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Climate Finance Essentials
Lesson 1 Key Concepts and Examples of Climate Finances in Practice Presentation Script
15. References and Resources
You have reached the end of Lesson 1. Displayed are some links that you may
visit for additional information.
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