The New Financing Architecture for the Environment – and some associated issues Timothy Geer, WWF International Poverty Environment Partnership Manila, June 2008

What will be covered 1.The landscape of new funds for CC and the Environment 2.Some issues regarding the new funds

The Landscape of New Funds for CC and the Environment Study commissioned from ODI

New funds! 12 in 12 months. Combined funding dwarfs GEF. Global Climate Change Alliance of the European Commission (GCCA) International window of the Environmental Transformation Fund of the United Kingdom German International Climate Initiative German Life Web Initiative Spanish-UNDP Spanish MDG Fund NORAD Rainforest Initiative Japanese Cool Earth Partnership Australian Global Initiative on Forests and Climate World Bank Forest Carbon Partnership Fund (FCPF) World Bank Clean Technology Fund (CTF) GEF-IFC Earth Fund World Bank Strategic Climate Fund (SCF) and Pilot Program for Climate Resilience (PPCR) Kyoto Protocol Adaptation Fund

Some issues regarding the new funds

Issue 1. Climate Change funding must not reinvent Aid

Keep the principles! Climate Change Funds = Development and Environment 1.Both Development & Environment (MDGs) 2.Balance between: Global Public Goods Environmental security Development options 3.Keep coherence with MDGs National Development Strategies (incl PRSs) Aid Effectiveness (Paris Principles) Aid modalities (Joint Assistance Strategies)

Avoid risk. Avoid old habits. Build capacity, not just fund flows - income is not an outcome! More dispersed mechanisms dont engage partners – they suffocate them. Work with existing systems/mechanisms/tools – dont create new ones – the landscape is confused enough already. Not substitutive of Aid commitments. Additional to them. If you want to do something differenrt, then focus on most pressing needs, not just traditional partners

The risks of a different path Not making common but differentiated responsibilities work for and with equality and respective capabilities. Increased layers and transaction costs, often for countries most at risk of CC. Let them keep their eye on the ball. Credibility – It sells. Dont turn away from good practices when those qualities are most needed. Avoid a culture of deception – cf Scott McLellan

2. The Missing Link

NationalGlobal (Regional) ObjectivesMDGs StrategyPoverty Reduction Strategy ? Principles underpinning funding Aid effectiveness: Natl Ownership Alignment Harmonization Managing for results Mutual accountability ? ModalitiesJoint Assistance Strategy (Coordination, Coherence ) ? The Missing Link

Where is the Global Strategy & Governance? MEAs Dispersed, not harmonized, silos, balkanization. Institutions Limited in scope and remit. Confusion between financing and strategy. Institutional jockeying for position. Form Follows Function – please.

Conclusions Wow! We love the commitment!!! Thank you!!! Global Climate Change Funds wont be successful - Without adherence to accepted principles. Without operational harmonization, coordination and coherence. Architecture without an architect doesnt make sense! Oh, for a common global environment & CC strategy – and (good) governance for it! Will this be harder than beating Climate Change?