Finance & Climate Change Policy in Brazil Carlos A. Klink Ministry of the Environment How much funding is flowing? CPI 2014 Standing Committee on Finance UNFCCC (2014) How much could be invested. UNEP Aligning the Financial System (2015): “... Need of policy convergence ...” “ ... The reality is that the global economy has abundant stocks of financial assets, but insufficient flow of investment in the areas where they are needed for long-term sustainable development”. BRAZILIAN POLICY ON CLIMATE CHANGE • 5 NAMAs: Amazon & Cerrado deforestation, Energy, Low carbon Ag., Charcoal. • 4 additional sector plans (2013): Industry (7 sectors), Mining, Transportation, Public health (adaptation). • Climate Finance. • Policy Coordination. • SMMARE Monitoring System (under construction). • National Plan for Adaptation (under construction): 10 sectors. RESULTS OF GLOBAL IMPACT MCTI 2014 MONITORING, SCIENCE, CLIMATE FINANCE SMMARE Amazon: reduction of 660 million ton CO2/year (2010-2014). Forest reference level approved by UNFCCC (2014) for REDD+ results-based payments. CEMADEN early warning system for disaster mgmt. & prevention (24/7): 20% of Brazil´s municipalities covered (17 basins); funded by climate change fund. Climate projections (5km-5km scale), both Brazilian Climate Change Model & regional model HadgemEta-CEPETEC. 1st. Brazilian Panel launched National Evaluation Report for climate change (2015); funded by the climate change fund. Climate change fund: R$650 million grants & loans. R$188 million disbursed (2011-2014). Inova Sustainability Program (BNDES/FINEP/MMA): R$2 billion committed; over 100 business plans. Low Carbon Agriculture: concessional loans (~US$3.2 billion 20102014). Amazon Fund: results-based grants REDD+ (~US$1 billion). 70 projects approved (2008-2015); ~R$850 million committed. Amazon Fund 1st international program for Amazon countries on forest monitoring: strategic South-South cooperation (~US20 million). Brazil ~ 4.5 US$ billion GCF ~ 10 US$ billion Brazil should meet its committment by 2020. Metrics: GWP AR2 GTP AR5 BRAZILIAN POLICY ON CLIMATE CHANGE • Using national capacities to effectively reduce GHGs of global significance. • Building strategies and instruments for low carbon economy. • Developing capacity on Adaptation. What next? Finance what? OPERATIONAL LEVEL: STRATEGIC LEVEL: • iNDCs 2015. • • From Environmental policy to Sustainable Development policy: High level political decision & Governance. Approval of Natl. Plan Adapation. • Improve ABC; deploy production and protection at scale. • Much higher capacity for policy convergence: Not only how much, but what, when, by whom. • Forest restoration: PLANAVEG: 12.5 million hectares next 20 years (combined area of Portugal + Belgium). • Improve capacity for public policies & investments on climate resiliency (risks and vulnerabilities). • Evaluation of Climate change & Amazon Fund. • Zero illegal deforestation; monitoring of non-AZ biomes. • Final approval of national strategy REDD+ by CIM (2015). • Full implementation of SMMARE monitoring system (2015) • Consolidation of South-South cooperation: prospecting Congo Basin (2015). • Energy: how to deploy renewables, bioenergy, hydro. • Innovation: technologies, business models & social practices. • Engagement: finance, private sector & civil society. Ministry of the Environment Secretariat for Climate Change [email protected]