Climate finance mechanisms: an introduction Richard J.T. Klein (richard.klein@sei.se)
The five issues in climate finance • Needs • Generation • Governance • Disbursement • Use
The five issues in climate finance • Needs • Generation • Governance • Disbursement • Use
Reed et al., 2009
Persson et al., 2009
UNFCCC Article 11 • Article 11.1 defines a mechanism for the provision of financial resources. It functions under the guidance of and is accountable to the COP, which decides on its policies, programme priorities and eligibility criteria. Its operation is entrusted to one or more existing international entities. • The Global Environment Facility • The Adaptation Fund Board
UNFCCC Article 11.5 • The developed country Parties may also provide and developing country Parties avail themselves of, financial resources related to the implementation of the Convention through bilateral, regional and other multilateral channels. • For example, Climate Investment Funds
Risk of fragmentation? • Fragmented sources, fragmented funds or fragmented disbursement? • Where does consolidation take place? • Who makes which decisions? • Which institutional roles are required? (operating body, board, registry, trustee, expert panel, etc.)
Criteria to assess finance mechanisms • • • • • • • •
Sufficiency Predictability Equity Additionality Verifiability Efficiency Ease of implementation Co-benefits Spratt, 2009