YEAR IN REVIEW FINANCING COMBATTING CLIMATE CHANGE UNECA, Tunis, 3 October 2012

DroughtAgriculture MalawiSudan EthiopiaSenegal Zimbabwe IndiaMali MozambiqueZambia NigerMorocco MauritaniaNiger EritreaIndia SudanMalawi ChadAlgeria KenyaEthiopia IranPakistan 2 Two Key Climate Threats: Top 12 Countries Most at Risk from Each

Instruments to Combat Climate Change Quantitative Instruments: ▫E.g. limits to emitting greenhouse gas emissions (Kyoto Protocol); Pricing Signals: ▫Kyoto Instruments: emissions trading, CDM, Nationally Appropriate Mitigation Actions (NAMAs) Financing Policies & Measures: ▫Funds in support of Policies, Measures, and Projects. 3

Climate Finance Available in Africa Multilateral Financing Bilateral Financing Multilateral Financing Institutions Carbon Finance 4 FINANCE CARBONE Fut. Green Fund

Status of Carbon Finance Africa is a small emitter of greenhouse gas emissions, but potential for reduction of emission growth paths nevertheless important.Africa is a small emitter of greenhouse gas emissions, but potential for reduction of emission growth paths nevertheless important. Carbon finance potential remains largely unexploited in Africa.Carbon finance potential remains largely unexploited in Africa. ▫Limits to the Carbon Finance Model in Africa (only 3% of projects globally in 2009) Carbon Market in Crisis due to lack of follow-up on Kyoto ProtocolCarbon Market in Crisis due to lack of follow-up on Kyoto Protocol Extension of the Kyoto Protocol and Reform of CDMExtension of the Kyoto Protocol and Reform of CDM ▫The Kyoto commitment period has expired; ▫The model of implementation of the CDM has to be reformed – high transaction costs and long gestation periods. 5 FINANCE CARBONE

What are NAMAs? NAMA: Nationally Appropriate Mitigation ActionsNAMA: Nationally Appropriate Mitigation Actions Part of Bali Action Plan (2007, para.1(b)(ii)) at COP13 referring to voluntary mitigation measures for developing countries post 2012Part of Bali Action Plan (2007, para.1(b)(ii)) at COP13 referring to voluntary mitigation measures for developing countries post 2012 Definition: voluntary governmental interventions of a developing country leading to greenhouse gas emissions reductionDefinition: voluntary governmental interventions of a developing country leading to greenhouse gas emissions reduction ▫Potentially bigger magnitude as the project-based activities under the CDM ▫In sink with the overall development needs of a country NAMAs have to: NAMAs have to: ▫ Contribute to a country’s development; ▫ Mitigate climate change to climate change; ▫ Needs to be appropriate to the local environment of where it is employed; ▫ Be measurable and verifiable. Types of NAMAs: Types of NAMAs: ▫ Unilateral : realized on the basis of domestic resources ▫ Supported: in need of international support ▫ Credited: production of certified GHG emission reductions that may be sold on the international carbon market 6 FINANCE CARBONE

Range of Pricing Instruments 7 CDM Projects CDM Program of Activities NAMA Sector-based approaches Measures at the level of sub- sector Capacity Building Volontary program Entire sector is targeted Scope of Mitigation Measure FINANCE CARBONE

Partnership for Market Readiness World Bank initiative launched in December 2010World Bank initiative launched in December 2010 Objective: capacity building for those countries that would like to develop policy instruments for a post- Kyoto (post 2012) carbon market.Objective: capacity building for those countries that would like to develop policy instruments for a post- Kyoto (post 2012) carbon market. Some figures:Some figures: ▫10 contributors towards a total of US$ 75 million ▫Preparation grant of about US$ 350,000 ▫Implementation grant between US$ 3 et 8 million ▫15 countries benefit to date (Africa: Morocco, South Africa) Morocco has joined the PMR in The «Market Readiness Proposal » is under preparation. Morocco has joined the PMR in The «Market Readiness Proposal » is under preparation. 8 FINANCE CARBONE

Partnership for Market Readiness Post-Kyoto: the case of Morocco 9 FINANCE CARBONE

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