1. An initiative of the ACP Group of States funded by the European Union Global Climate Change Alliance: Intra-ACP Programme Training Module Climate Change Finance Module7 – Synthesis Ms Isabelle Mamaty Senior Expert Climate Support Facility

2. Recap of the framework 2

3. Environment – climate change – development linkages 3 Climate change: - an environ- mental issue - a development issue Source: Millennium Ecosystem Assessment (2005) Figure B, p. 7.

4. Climate Change, sustainable development and MDGs 4 Climate change Biophysical effects Socio-economic impacts Both adaptation and mitigation support more sustainable development In turn, the pursuit of sustainable development enhances society’s response capacity Social dimension Economy Sustainable development Environment Potential impacts on MDGs

5. The development–adaptation continuum 5 Vulnerability Response to impacts Addressing the drivers of vulnerability  Developmental benefits Building the response capacity => Developmental and climate adaptation benefits Managing climate risk (e.g. DRR) => Primarily adaptation benefits, developmental benefits as a ‘side effect’ Specifically confronting climate change => Quasi-exclusive focus on very specific CC impacts, adaptation benefits only Adapted from: McGray et al (2007), OECD (2009a), Olhoff & Schaer (2010) Benefits in the absence of climate change 1000

6. Addressing the climate challenge without compromising development objectives 6 Mainstreaming climate change into national/sectoral/subnational and local levels Climate resilient development: selection of appropriate adaptation options NAPAs may be first step Low emission development: selection of appropriate mitigations options NAMAs may be first step

7. Matching finance with needs 7

8. Mainstreaming CC into budgetary process 8 Mainstreaming climate change into national/sectoral/subnational and local levels Climate resilient development: selection of appropriate adaptation options NAPAs may be first step Low emission development: selection of appropriate mitigations options NAMAs may be first step Development of national/sectoral development plan Allocation of funds under annual budget Domestic resources External resources

9. External climate financing sources 9 multilateral/bilate ral funds Market-based instruments (CDM, voluntary market) Private-public partnership initiatives National climate funds

10. Key features of External climate financing sources External climate financing sources Demonstrate additionality GEF funds – concept of “additional cost” is referring to the costs of measures that would not be necessary in the absence of climate change. CDM & voluntary market – concept of additionality: requirement that the GHG emission after the implementation of the project activity is lower than those that would have occurred in the most plausible alternative scenario to the implementation of the project activity Use of baseline scenario hypothetical case representing the volume of GHG that would have been emitted if the project were not implemented (use of specific methodologies) - GEF funds; CDM/voluntary market Specific application process incl. specific project document: exp. Project Identification Form (PIF)/Project design document (PDD) + REDD key challenges reference levels; Leakage permanence safeguards governance, MRV

11. Selecting funds 11 Adaptation Mitigation Adaptation & Mitigation Adaptation fund; Least developing Countries Fund; Special climate change Fund; EU-Global Climate Change Alliance (GCCA), Market based instruments (CDM, voluntary market); (future) Green Climate fund; (future) African Green Fund, International climate Initiative; International Climate Fund (ICF) CC focal Area-GEF5; Clean Technology Fund; Global Energy efficiency Fund; REDD: World Bank’s Forest Carbon Partnership Facility Readiness Fund and Carbon Fund; World Bank’s Forest Investment Programme; UN-REDD Programme

12. Conclusions 12

13. Planned actions/Way forward 13

14. Seminar evaluation 14

15. Thank you Contact: Dr. Pendo MARO, ACP Secretariat pendomaro@acp.int or +32 495 281 494 www.gcca.eu/intra-acp www.gcca.eu/intra-acp