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european capacity building initiativeecbi Climate Finance 2011 A Stocktaking Benito Müller Director ecbi european capacity building initiative initiative européenne de renforcement des capacités ecbi for sustained capacity building in support of international climate change negotiations pour un renforcement durable des capacités en appui aux négociations internationales sur les changements climatiques
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european capacity building initiativeecbi International Sources Green Climate Fund [National Funding Entity ?] Funded Activities Recipient Country D IFIs/IGOs/Funds Country A Country B Country C Funded Activities The Global Climate Finance Regime – The Future Architecture
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european capacity building initiativeecbi International Climate Finance: The Status Quo according to National Communications Reported financial contributions made by Annex II Parties to multilateral institutions Financial contributions reported by Annex II Parties to the Climate Investment Funds in the period 2005–2010 Bilateral contributions Source: UNFCCC Secretariat, Compilation and synthesis of fifth national communications, Addendum: Financial resources, technology transfer, vulnerability, adaptation and other issues relating to the implementation of the Convention by Parties included in Annex I to the Convention, 20 May 2011, FCCC/SBI/2011/INF.1/Add.2.
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european capacity building initiativeecbi Annual averages, $bnShares in 1998-2010 total NATCOM Multilateral Contributions by Annex II Parties
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european capacity building initiativeecbi NATCOM 4 Multilateral Contributions: UNFCCC or not? NC4 (2005 –10)
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european capacity building initiativeecbi The Balances of non-UNFCCC Multilateral Contributions: The Case of the CIFs CTF Trustee Commitments Total funds received: Mitigation : Adaptation = 88 :12 CTF funds committed: Developed : Developing = 50:50 Source: CIF Disbursement Reports (31/12/2010)
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european capacity building initiativeecbi Pilot Programme for Climate Resilience and Adaptation Fund
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european capacity building initiativeecbi The SPA portfolio comprises 26 GEF projects and programs financed by $48.35 million in SPA funding, $79.28 million in GEF focal area support (for 12 projects), and $649.64 million in other cofinancing support, for a total portfolio value of $777.27 million. The GEF Trust Fund 2005-10 Funds received NC4: $3billion Funds spent on adaptation: $127million
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european capacity building initiativeecbi NATCOM Bilateral Contributions: Overall Picture
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european capacity building initiativeecbi NATCOM Contributions: Overall Picture
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european capacity building initiativeecbi The UNFCCC Financial Mechanism: Oversight UNFCCC COP SBI SBI Finance Contact Group Submits draft Decision for approval Presents draft Decision for submission Provides annual guidance Sends annual reports “An Operating Entity of the Financial Mechanism of the Convention under the guidance of and accountable to the COP” GEF Council
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european capacity building initiativeecbi The UNFCCC Financial Mechanism: Oversight UNFCCC COP Standing Committee Commissions External Evaluations of OEs Submits draft guidance for approval Provides annual guidance Send annual reports “Operating Entities of the Financial Mechanism of the Convention under the guidance of and accountable to the COP” Operating Entities GEF Council GCF Board Submits Annual Report on OEs
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european capacity building initiativeecbi Sources of Climate Finance Need periodic review of: Current international flows of climate finance Near term needs for climate finance Potential sources of additional funds, if needed Need resources for the Green Climate Fund: Pledges by developed countries – amounts > fast-start finance difficult given their financial situations Innovative sources
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european capacity building initiativeecbi Innovative Sources Possible innovative sources: International financial transactions tax Levy/auctioned allowances for international aviation and shipping emissions (or air passenger levy) Border levies on carbon intensive imports (or carbon export optimization tax) – unlikely AGF Other international needs (MDGs) considering the same possible sources International aviation and shipping emissions most likely source for climate finance
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european capacity building initiativeecbi Revenue from Bunkers No agreement at ICAO/IMO to regulate emissions and generate revenue for climate EU will regulate aviation in 2012. Legal challenges will not succeed. Shipping will follow. Result – revenue goes to developed country treasuries; only part goes to climate finance Exemptions/revenue rebates reduce funds for climate and change distribution among developing countries
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european capacity building initiativeecbi Conclusions Getting substantial initial pledges for GCF will be a challenge Innovative sources increasingly important Revenue from bunkers best prospect for climate and it helps reduce emissions Action by EU rather than ICAO/IMO turns it into national revenue stream and so reduces funds for climate finance Air passenger levy could be implemented quickly
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european capacity building initiativeecbi Bilateral Adaptation Funding and IAPAL potential IAPAL
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