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 Institutions Opportunities for adaptation (and mitigation) financing Packaging of projects is necessary to establish the links between climate change and SLM

Climate change related financing opportunities for SLM AFOLU REDD Renewable energies Energy efficiency at the household level

AFOLU: Agriculture, forestry, land use sectors → Activities with potential for establishing synergies between UNCCD et UNFCCC Forestry/ reforestation, improved forest mgt, avoided deforestation, forest degradation) Cultivated lands Livestock Agriculture REDD: → Prevent/ limit the impact of activities causing the deforestation/ degradation of forests Conversion of forests into agricultural lands Non sustainable forestry and illegal cutting Slash-and-burn culture

Renewable energies Biogas (from agricultural, animal, and industrial waste streams) Hydro Wind Solar Household level energy efficiency Capture and use of landfill gas Wood stoves Solar cooling Lighting efficiency

What is the origin of the greenhouse gases in the AFOLU sector? Household cookingWaste and biomassAgricultural waste Animal waste DeforestationLand 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 AgricultureBiogas and methane recovery Fertiliser switch or management in order to reduce N 2 O emissions Cropland and grazing land management: Soil conservation (e.g. no-till farming) Livestock management ForestryAfforestation / Reforestation Agroforestry Primary forest conservation (Reduced Emissions from Deforestation and forest Degradation - REDD) Rural Energy Energy efficiency Renewable energy Biofuels 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 FundsExtent of Benefits Scope of FocusFocus AreasSize (m US$) Eligibility Strategic Priority for Adaptation (SPA) GlobalEnvironmental Biological diversity, climate change, international waters, land degradation, POPs 50Non-Annex 1 Least Developed Countries Fund (LDCF) Local, regional, or global DevelopmentalHealth, agriculture, water, infrastructure 115Only LDC in Non- Annex 1 Special Climate Change Fund (SCCF) Local, regional or global Developmental Health, agriculture, water, infrastructure 50Non-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 (estimate ) “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-Larsen Financing Strategy Officer Global Mechanism of the UNCCD Rome, Italy