Environmental financing A UNDP perspective 17 March 2008

A quote from the SG “...It helps to have a vision of how the future might look if we succeed. Handled correctly, our fight against global warming could set the stage for an eco-friendly transformation of the global economy – one that spurs growth and development, rather than crimps it.”

The need for a paradigm shift Evolution of environmental financing; Domestic resource mobilization; From using ODA for pilot projects to redirecting investments towards sustainability.

The time is there to act We have the knowledge, tools and experience; + addressing the climate change challenge offers a unique opportunity to make major in roads toward achieving the MDG’s and moving forward on the path of sustainable development.

Paradigm shift at the national level Step 1: Support comprehensive national review of environmental financial flows; Step 2: Support realistic and long term planning to mobilize the necessary domestic and international financing; Step 3: Support the development of informed investment plans, taking new and innovative approaches into consideration;

Paradigm shift at the national level Step 4: Assist countries with pre-investment studies and investment pipelines, that lead to less carbon intensive development paths AND to poverty reduction; and Step 5: Align and integrate international development aid to better support countries in their development and MDG achievements

Paradigm shift at the international level Action 1: Move to a continuum in development cooperation: from policy setting and capacity development to investments and their evaluation; Action 2: Promote a new compact between the UN and the Bretton Woods Institutes;

Paradigm shift at the international level Action 3: Ensure a coherent delivery of environmental finance and investment support to national and local authorities by all development partners; Action 4: Strengthen the UN capacity to deliver environmental financing support at the national and regional level; Action 5: Set up a watchdog function to review the sustainability of major investments.

Some reflections A new international environmental finance regime is needed, contributing to a paradigm shift in development cooperation. UNDP, in full cooperation with other agencies, stands ready to support a transition that will lead to an integrated and coherent delivery of environmental finance support by all development actors to national authorities.

Thank you