1. CLIMATE CHANGE AND DEVELOPMENT POLICY Climate Finance and Direct Access Matt Spannagle Climate Change Advisor, AusAID 1 July 2011, Canberra

2. Pathways to Development Direct Access – what is it??? 1.The COP in its decision 1/CP.16 entrusted the Transitional Committee (TC) with the design of the Green Climate Fund (GCF) to develop and recommend operational documents for approval by the COP at its 17th session. The TC at its initial meeting held in Mexico City on 28-29 April 2011, agreed to organize its work through four workstreams, including (i) Workstream I on Scope, Guiding Principles, and Cross- cutting issues, (ii) Workstream II on Governance and Institutional Arrangements, (iii) Workstream III on Operational Modalities, and (iv) Workstream IV on Monitoring and Evaluation.

3. Pathways to Development Direct Access – what is it??? The modality for direct access is described in the Adaptation Fund Board’s ‘Operational Policies and Guidelines’ as: … Eligible Parties who seek financial resources from the Adaptation Fund shall submit proposals directly through their nominated National Implementing Entity (NIE).

4. Pathways to Development Direct Access – what is it really??? LAYMANS TERMS: developing countries can have funds directly transferred to their own organisations Eg – national treasury, agriculture department, QuaNGOs, parastatals etc Compared to current arrangements

5. Pathways to Development Direct Access – why is it important? Perception = avoid ‘tax’ – side/non-issue Scale of funds Link & integrate directly with government policies & LEGITIMATE development objectives – better coordination and targeting Control of funds – host governments determine what/how money spent

6. Pathways to Development Direct Access – challenges? Fiduciary responsibility Capacity Cheaper/more effective to use intermediaries?

7. Pathways to Development Example - Ethiopia 80M, big, HDI = 171, LDC Somalia, sudan, djibouti, eritrea, kenya, (yemen) capable big plans: MIC 2025 CRGE food security issues large direct programmes already with WFP aid ~10% of GDP

8. Pathways to Development Example - Honduras Hondras – 9M, LIC, HDI = 106 Nicuragua, El Salvador, Guatamala, (Belize) aid ~7% of GDP More US focused and security and trade-related development issues