1. National Climate Funds: Learning from the long standing experience of Asia-Pacific countries Silvia Irawan Presented in Regional Clinic on the Design and Management of National Climate Funds Bangkok, 6 September 2012

2. Background Asia-Pacific Community of Practice on Climate Finance (incl. e-discussion, case study and regional clinic)

3. e-Discussion on National Climate Funds (NCFs) Participants: 167 participants (32 countries) with 30 active contributors Structure of discussion: Run for 10 weeks and guided by a set of questions posted by a moderator Tools: email and UN Teamworks - a collaborative webspace

4. Case study: 7 cases Bhutan Trust Fund for Environmental Conservation (BTFEC) Cambodia Climate Change Alliance (CCCA) Trust Fund China Clean Development Mechanism Fund (CCDMF) Lao Environmental Protection Fund (EPF) Micronesia Conservation Trust (MCT) Thailand Energy Conservation (ENCON) Fund Tuvalu Trust Fund (TTF)

5. Why are countries considering NCFs? Overcoming the capacity problem & a stepping-stone Direct reporting and higher fiduciary standards Earmarking of government budget Reaching those who need the funds most Smart investment & leveraging private finance

6. Why should countries be mindful about NCFs? Undermining the soundness of: fiscal policy fiscal discipline transparency Extra-budgetary funds do not achieve their intended policy goals

7. Stages: establishment and management of NCFs Decision making process Designing Management Time

8. Feasibility Criteria Time and cost effectiveness Political feasibility

9. Type of Funds Name of fundType of Fund Bhutan Trust Fund for Environmental ConservationEndowment fund Lao PDR: Environmental Protection Fund)Endowment & sinking funds China Clean Development Mechanism Fund Revolving fund Thailand: Energy Conservation Promotion FundRevolving fund Cambodia Climate Alliance FundSinking fund Micronesia Conservation TrustEndowment & sinking fund Tuvalu Trust FundEndowment & revolving funds

10. The Design Capital Legal arrangement Governing body Beneficiaries

11. Management features: Innovative programs Project cycle: transparency and efficiency Working with beneficiaries Performance based monitoring

12. The establishment of NCFs can be considered when: Earmark government budget and reach those who otherwise are likely to be excluded when money is channeled through a formal government system Smart investment of finances and leverage resources from private sector

13. The establishment of NCFs should be avoided when: A duplication of a government function Only to pool resources from external and domestic sources to finance climate actions

14. Required Time and Resources Multi-Donor Trust Fund Endowment Fund Nationalized sinking fund Revolving fund LessMore