1. finance

Climate finance under the UNFCCC
Adaptation Fund – CAF Workshop
Panama, 16/17 October 2014
Marcelo Jordan
UNFCCC secretariat
The UNFCCC – What is it?
The UN Framework Convention on Climate
Change:
• 196 Parties (195 countries + EU) = near universal membership
• The ultimate objective of the Convention:
“… stabilization of greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system.” (Art. 2)
• Annual meetings of all Parties at the Conference of the Parties
(COP) to take decisions
What is negotiated where?
•
UNFCC
Negotiating Bodies
• COP (Conference of the Parties
– 195 countries + EU)
• COP/CMP (COP serving as meeting to the Kyoto Protocol -193 countries +EU)
• ADP (Ad Hoc Working Group on the Durban Platform for Enhanced Action ,
founded 2011, 196 Parties)
• AWG-KP (Ad Hoc Working Group on Further Commitments for Annex I Parties
under the Kyoto Protocol, founded 2005, 193 Parties)
• SBSTA (Subsidiary Body for Scientific and Technological Advice)
• SBI (Subsidiary Body for Implementation)
The Kyoto Protocol - What is it?
The Kyoto Protocol:
193 Parties (192 countries + EU)
1st commitment period: 2008 – 2012
2nd commitment period 2013 - 2020
Main Features:
• Legally binding targets for emissions of greenhouse gases in
industrialized countries
• International market-based mechanisms creating a new
commodity: carbon (emissions trading, CDM)
• Valuable architecture, but scope not commensurate with problem
Other agreements you need to know about
Three important agreements you’ll hear a lot
about:
• Cancun Agreements (2010)
• Paris 2015 Universal change agreement (to enter into
effect in 2020)
Cancun agreements
NEW INSTITUTIONS that emerged from Cancun in
2010 and are now up and running:
1)
Climate finance:

Green Climate Fund (GCF)
 Nominated as an operating entity of the financial mechanism of the
Convention to mobilize significant climate finance, both for
adaptation and mitigation, in developing countries

Standing Committee on Finance (SCF)
 An advisory body to the COP, whose role is to seek coordination
and coherence in the delivery of climate finance, and the analysis
of policies tools to scale up and mobilize climate finance, among
others.
Cancun agreements
NEW INSTITUTIONS that emerged from Cancun in
2010 and are now up and running:
2) Technology Mechanism
 with Technology Committee and Climate Technology Centre
and Network – technology for mitigation and adaptation
3) Adaptation Framework + Committee
 To coordinate adaptation action in developing countries
2015 Paris agreement
The Paris 2015 agreement…
• needs to chart a low carbon and resilient course over 20 – 30
years (covering mitigation and adaptation in equal parts)
• Needs to be universal, and ensure finance and technology to
developing countries
• must ensure that 90 trillion of investments over next 15 years go
into right direction (Global Commission on the Economy and
Climate)
• be a platform for collaboration on climate change
• must ensure climate neutrality in the second half of the century
(=crucial to staying below a maximum 2 degrees Celsius
temperature rise)
Key Deliverables for COP 21
Milestones achieved at COP 20 in Lima (December
2014) to serve as a basis for the Paris outcome in
2015:
• Elements for a Paris 2015 text (must be available in 6 UN
languages in May 2015!)
• Decision on nature of Intended Nationally Determined
Contributions (INDCs to be submitted by April 2015!)
• Decision on Technical Expert Meetings (2014 focus on cities,
land use, agriculture, renewable energy, energy efficiency, CCSU,
non-CO2 gases)
Key Deliverables for COP 21
Financial mechanism of the Convention
• Established through Art 11 of the Convention
• Currently has two operating entities (GEF and GCF)
• Parties may also avail themselves of other institutions, multilateral,
bilateral and international, for the delivery of climate finance
• SCF mandated to “rationalize” the financial mechanism of the
Convention
• Adaptation Fund  operationalized under the Kyoto Protocol
• Future institutional architecture (linkages, coordination and
integration, if any) under negotiation.
Key Deliverables for COP 21
Key priorities for 2015 on climate finance
• Long Term Finance (LTF) in-session workshop to focus this year on:
a) Adaptation finance
b) Enabling environments and readiness
c) Needs of developing countries
 DIRECT ACCESS!
• SCF work plan for this year focuses on:
a) Forest financing (focus of 2015 SCF forum)
b) Institutional linkages and relations between the Adaptation Fund and
other institutions under the Convention
c) MRV of support beyond the biennial assessment and overview of
climate finance flows
d) Guidance to the operating entities of the financial mechanism (GCF
and GEF)