0. Environmental financing
A UNDP perspective
17 March 2008

1. 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.”

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

3. 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.

4. 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;

5. 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

6. 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;

7. 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.

8. 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.

9. Thank you