1. Innovative Sources of Funding for SLM:
Climate Change Financing Mechanisms
Saveis Joze Sadeghian
Advisor Climate Change Finance Programme , Global Mechanism
5th October 2010, China

2. Links between Climate Change impacts and Desertification

3. Examples of Climate Change impacts on the agricultural, forestry and land use sector

4. Climate Change Responses and Finance needs

5. Voluntary Carbon Market
Climate Change Financing - Mitigation
Strategies
Instruments
Internal measures
Joint Implementation
Mitigation
(Kyoto Protocol)
Emission Trading
Flexible Mechanisms
UNFCCC
Clean Development Mechanism (CDM)
REDD (Post Kyoto-2012) +
Voluntary Carbon Market
Adaptation Fund (AF)
Adaptation Funds
Special Climate Change Fund (SCCF)
Adaptation
Least Developing Countries Fund (LDCF)
Bilateral and Multilateral financing

6. Climate Change Mitigation: Role of Agricultural, Rural and Land Use sector 1/1
Where do GHG emissions come from in the agricultural, rural and land use sector?
Household cooking
Biomass and waste
Agricultural waste
Land degradation
Animal waste
Deforestation

7. Reducing emissions by…
Climate Change Mitigation: Role of Agricultural, Rural and Land Use sector 2/2
Reducing emissions by…
…reducing fertilizer use
…anaerobic digestion of waste
…avoiding deforestation
…modifying livestock management
…using renewable energy
…improving energy efficiency
…increasing sequestration or conservation of carbon

8. Carbon Markets 1/3
Regulated Market (Kyoto): Clean Development Mechanism (CDM)
$$$ + Technology Transfer
Annex I Countries – Gaps in meeting targets after domestic mitigation measures
Non-Annex I Countries
Certified Emissions Reductions (CERs)
SLM activities that capture carbon and thus generate CERs
Approved CDM Methodologies ONLY!

9. Carbon Markets 2/3 Voluntary Carbon Markets $$$ + Technology Transfer
Anyone: Governments, NGOs, Individuals, Private sector
Anyone
Voluntary markets with standards in agriculture: Voluntary Carbon Standard (VCS) and Chicago Climate Exchange (CCX)
Verified Emissions Reductions (VERs))
SLM activities that capture or avoid GHG and thus generate carbon credits
Voluntary Market Standards

10. Agriculture, Forestry and other Land Use (AFOLU): Project Examples
Biogas and methane recovery
Fertiliser switch or management in order to reduce N2O emissions
Cropland and grazing land management: Soil conservation (e.g. no-till farming)
Livestock management
Forestry
Afforestation / 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

11. Voluntary Carbon Market
Climate Change Financing: Adaptation
Strategies
Instruments
Internal measures
Joint Implementation
Mitigation
(Kyoto Protocol)
Emission Trading
Flexible Mechanisms
UNFCCC
Clean Development Mechanism (CDM)
REDD (Post Kyoto-2012) +
Voluntary Carbon Market
Adaptation Fund (AF)
Adaptation Funds
Special Climate Change Fund (SCCF)
Adaptation
Least Developing Countries Fund (LDCF)
Bilateral and Multilateral financing

12. Climate Change Adaptation: Role of Agricultural, Rural and Land Use Sector

13. Sources of adaptation funding: Adaptation Funds
GEF Funds
Extent of Benefits
Scope of Focus
Focus Areas
Size
(m US$)
Eligibility
Strategic Priority for Adaptation (SPA)
Global
Environmental
Biological diversity, climate change, international waters, land degradation, POPs 50
Non-Annex 1
Least Developed Countries Fund
(LDCF)
Local, regional, or global
Developmental
Health, agriculture, water, infrastructure
115
Only LDC in Non-Annex 1
Special Climate Change Fund (SCCF)
Local, regional or global
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

14. Other sources for adaptation funding
Bilateral Funding
GCCA
Global Climate Change Alliance
European Commission
€ 50 millions
MDG
Spanish MDG Fund
Spain
€ 90 millions
Cool Earth
Japanese Cool Earth Partnership
Japan
US$10 billions
NORAD Rainforest Initiative
Cooperation Development Agency of Norway
Norway
€ 560 millions
The European Commission’s GCCA will address mitigation, adaptation and poverty reduction via a proposed partnership with developing countries that will include the provision of both technical and
financial assistance. In addition, it aims to provide an informal forum that will facilitate negotiations for
a post-2012 climate agreement. The GCCA also plans to add value by acting as a clearinghouse
mechanism to coordinate the international adaptation initiatives of EU member states.
The UK’s ETF-IW has two kinds of objectives. The first process objectives relate to transforming how
finances are delivered. These include facilitating moves toward additional finance provided in a
programmatic way; avoiding aid proliferation and ensuring coherence; and piloting models that will
feed into the UNFCCC negotiation process and the Kyoto Adaptation Fund. The second set are
thematic objectives that include supporting poverty reduction, providing environmental protection and
tackling climate change in developing countries by addressing unsustainable deforestation, access to
clean energy and activities that support adaptation. Most of the finance available under this initiative
will be channeled through the World Bank’s Climate Investment Funds (CIF) Facility, although early
support to the Congo Basin Conservation Fund has been provided to address uncontrolled
deforestation in that region.
The Spanish MDG Fund, which includes a thematic window on Environment and Climate Change, will
support efforts to reduce vulnerability to climate change and poverty reduction. The fund will support
(i) interventions that improve environmental management and service delivery at the local and
national level, (ii) activities that will increase access to new financing mechanisms and (iii) efforts to
enhance adaptive capacities.
The Japanese Cool Earth Partnership has three priorities: (i) establishing a post-Kyoto framework that
will ensure the participation of all emitters and aim at fair and equitable emission targets;
(ii) strengthening international environmental cooperation, under which Japan will provide assistance
to help developing countries achieve emissions reductions and to support adaptation in countries
suffering from severe climate change impacts; and (iii) supporting innovation that will focus on the
development of innovative technology and a shift to a low carbon society.
The German International Climate Initiative has three objectives: (i) supporting sustainable energy
systems, adaptation and biodiversity projects related to climate change; (ii) ensuring that investments
will trigger private investments at a greater magnitude; and (iii) ensuring that financed projects will
strategically support the post-2012 climate change negotiations. For this purpose, it will also support
multilateral activities and funds focusing on adaptation and forest management.
The Norwegian NORAD Rainforest Initiative is not a fund as such, but a pledge of earmarked funding
to be allocated through the national budget. It will support the conservation of rainforests by promoting
large-scale forest protection and the development of forest-based carbon management. More general
measures will include support for adaptation and promoting clean energy in Africa.
New Finance for Climate Change
and the Environment
Gareth Porter, Neil Bird, Nanki Kaur and Leo Peskett
July 2008
Multilateral Funding
i.e. World’s Bank Climate Investment Funds (i.e Strategic Climate Fund – Pilot Programme for Climate Resilience)
Private Sector Funding
i.e. Adaptation Private Sector Initiative

15. Voluntary Carbon Market REDD
CDM
Voluntary Carbon
Market
REDD
Reducing Emissions from Deforestation and Degradation
Agriculture/Land use/Land use change
Energy
Afforestation/ Reforestation
Agriculture/Land use/Land use change
Energy
Agriculture/Land use/Land use Change
Ecosystems
Coastal Zones
Water
Adaptation

16. Thank You! Saveis Joze Sadeghian Climate Change Programme
Global Mechanism of the UNCCD