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 MEDIA ADVISORY AnnouncementofPledgingOutcome
FortheGreenClimateFund
InitialResourceMobilization
What
Who
When
Where
RSVP
Why
PressConferenceoftheGreenClimateFund
toinformmediarepresentativesabouttheresultofitsPledgingConference
whichwillbeheldon20Nov.2014inBerlin,Germany.
ThisPressConferencewillbeheldinEnglish
(withpossibilityofinteractioninFrenchandArabic)
Ms.HélaCheikhrouhou,ExecutiveDirectoroftheGreenClimateFund
H.E.Dr.GerdMüller,FederalMinisterforEconomicCooperation&Dev’t,Germany
H.E.Dr.BarbaraHendricks,FederalMinisterfortheEnvironment,Germany
Thursday,20November2014:13.00h–13.45h
BundesministeriumfürwirtschaftlicheZusammenarbeit&Entwicklung
Stresemannstraße94,10963Berlin
MediaAccreditationshouldberequestedat:
PressestelleBMZ,Tel.:030185352450,Mail:[email protected]
TheExecutiveDirectoroftheGreenClimateFundwillannouncetheresultofthe
High‐LevelPledgingConferenceinBerlinandpresentthecurrentstateofaffairsof
theFund.ShewillexplainthetypeofprojectsandprogrammesthattheFundwill
deliverindevelopingcountriesanddiscussmilestonesuntilthe2015Paris
AgreementoncombattingClimateChange.
Todate13governmentshavealreadymadepledgestotheGreenClimateFund,
totallingclosetoUS$7.5billionequivalent,includingvoluntarycontributionsfrom
twodevelopingcountries.
Green Climate Fund Songdo International Business District 175 Art Center‐daero, Yeonsu‐gu, Incheon 406‐840 Republic of Korea Press Briefing Room Not an Official Document
+ 82 32 458 6062 (UTC+9) For use of the Media only [email protected] gcfund.org Page 1 of 1 PressKit
GreenClimateFund
High‐LevelPledgingConference
Berlin,Germany
20November2014
Green Climate Fund Songdo International Business District 175 Art Center‐daero Yeonsu‐gu, Incheon 406‐840 Republic of Korea Press Briefing Room Not an Official Document + 82 32 458 6062 (UTC+9) For use of the Media only [email protected] gcfund.org NOTE TO MEDIA DearJournalist,
IampleasedtosendyouthisshortPressKitaheadoftheHighLevelPledgingConferencein
Berlinon20November2014.
We are at a critical turningpoint in the internationalclimate changenegotiations. The most
recent report from the IPCC is unequivocal in its conclusions about anthropogenic global
warming.
Tokeepcarbondioxideequivalent(CO2eq)concentrationintheatmosphereinthe430‐530
ppmrangeuntil2100andtolimitglobaltemperatureincreasesto2degreesCelsiusrequiresa
massive greening of global investments. The average investment needed in key mitigation
sectorswillbearoundUS$350billionperyearfrom2010until2029,accordingtorecentIPCC
estimates.
Inaddition,tohelpcountriesadapttoclimatechange,globalfinancingneedsareprojectedat
US$70‐100billionperyearby2050,accordingtoWorldBankcalculations.
In2009Governmentsrecognisedthatresourcesneededtoberadicallyscaledupandthatnew
financinginitiativeswereneeded.TheGreenClimateFundwasestablishedtoactasacentral
vehicle for climate finance under which industrialized countries would assist developing
countrieswithnewfinanceforpublicandprivatesectorprojectsandprogrammes.
Weareafastdevelopingmulti‐lateralfundandareinarapidprocessofraisinginitialfunding.
A number of governments have already made pledges which are approaching US$ 8 billion.
Each dollar invested in the Fund will trigger a multiplier effect across private and public
investmentsinthedevelopingworld.
Yourroleinhelpingcommunicatetheimportanceofthisnewglobalinstitutioniskeytohelping
secureasuccessfulconclusiontointernationalclimatenegotiationsin2015.
Ithankyouforyourinterest.
HélaCheikhrouhou
ExecutiveDirector
GCF PRESS KIT – Berlin Pledging Conference 2014 QUESTIONS & ANSWERS WhatistheGreenClimateFund?
TheGreenClimateFundisanewmultilateral,multi‐billiondollarfundwhichwasestablished
by 194 countries that are Parties to the UN Framework Convention on Climate Change
(UNFCCC)in2010.TheFundisdesignedasanoperatingentityoftheConvention’sfinancial
mechanismandisheadquarteredintheRepublicofKorea.ItreceivesguidancefromtheParties
totheConvention.
Whatisitsaim?
TheFund’spurposeistopromote,withinthecontextofsustainabledevelopment,theparadigm
shifttowardslow‐emissionandclimate‐resilientdevelopmentpathwaysbyprovidingsupport
todevelopingcountriestohelplimitorreducetheirgreenhousegasemissionsandtoadaptto
theunavoidableimpactsofclimatechange.
HowwillthePledgingConferencework?
TheConferenceisopentoallgovernmentsinterestedinmakingacontributiontotheFund.At
theConference,governmentswillmakeformalpledges.Thesewillincludedetailsofthesizeof
thepledge,currency,timeperiodoverwhichitwillbemadeandthetypeofcontribution(grant,
capital,loan).
TheConferenceispartofaprocessofinitialresourcemobilization.Large,global,multilateral
fundsusuallybeginwithadhoccontributionsfrominitialcontributors,followedbyoutreachto
abroaderuniverseofcontributorsand,overtime,adoptamoresystematicprocesstoreplenish
resources (a replenishment process). Contributions may be roughly based on past
contributions, or derived solely from contributors’ interests and capacities, and the value
propositionofthefund.Theinitialresourcemobilizationprocessaimstosecurefinancingfor
the2015‐2018programmingperiod.
ThirteengovernmentshavealreadymadepledgestotheGreenClimateFund,totallingupto
US$7.5billionequivalent,includingvoluntarycontributionsfromtwodevelopingcountries.
AfterthePledgingConferenceduringtheremainderof2014andtheearlymonthsof2015the
Fund will complete all the necessary legal arrangements to enable it to receive the monies
pledgedbycontributorgovernments.
GCF PRESS KIT – Berlin Pledging Conference 2014 WhatisthepoliticalsignificanceofthePledgingConference?
Significantinitialfundingiscriticaltotheintergovernmentalnegotiationsonclimatechangein
LimainDecember2014andinParisinlate2015.Itwilldemonstratethatthereistrueprogress
inprovidingafinancialsupporttothosedevelopingcountrieswillingtoshifttoloweremissions
andmoreclimateresilientdevelopmentpathways.
Isallthemoneyfromgovernmentsadditionaltotheirexistinginternational
aidobligations?
The UNFCCC 2010 Cancun Agreements proposed that the pledged funds are to be new,
additionaltopreviousflows,adequate,predictable,andsustained,andaretocomefromawide
variety of sources, both public and private, bilateral and multilateral, including alternative
sourcesoffinance.
Doesthefundhaveatargetandtimescale?
No, the GCF Board has not established a specific target or timescale. The Fund is seeking to
maximizecontributionstotheFundasfastaspossiblesothatitcanbegindisbursingfinancein
linewithitsmandate.
Willthefundbeabletoreceivenon‐publicmonies?
TheGreenClimateFundwillreceivefinancialcontributionsfromdevelopedcountryPartiesto
the Convention. It will also be able to receive contributions from other sources, public and
private,andincludingphilanthropicfoundations.ThepublicmoneyreceivedbytheFundwill
beusedtoleverageprivatesectorfinance.
Whatarethepoliciesforcontributions?
ThefollowingtypesofcontributionstotheFundwillbepossible:
(a) Grantsfrompublicandprivatesources;
(b) Paid‐incapitalcontributionsfrompublicsources;and
(c) Concessionalloansfrompublicsources.
TheBoard’spolicyistomaximizegrantcontributionsandtheFundwillacceptcontributionsof
anysizefromPartiestotheConvention.
GCF PRESS KIT – Berlin Pledging Conference 2014 HowistheprivatesectorinvolvedinGCF?
Bothpublicandprivateflowsareindispensableelementsofclimatefinance.Privateinvestment
flows are essential for the transition to a low‐emission, climate‐resilient future. These
investmentscanbestimulatedthroughapplicationofconcessionalpublicfinancingfromthe
Green Climate Fund. A careful use of public funds in combination with private funds will
promotetheparadigmshifttowardslow‐emissionandclimate‐resilientgrowth.TheFundhas
itsowndedicatedPrivateSectorFacility.
Whatisthefund’sgovernancestructure?
The Fund is governed by a Board. The Board is composed of 24 members, and 24 alternate
memberswithequalrepresentationfromdevelopinganddevelopedcountryParties.Itcovers
the five UN regional groups. The Fund also has an independent Secretariat headed by an
Executive Director, Ms. Héla Cheikhrouhou. The assets of the Fund are administered by a
trustee.TheWorldBankisthecurrentinterimtrustee.
Howdodevelopingcountriesapplyforfunds?
Green Climate Fund will channel its resources through accredited public and private
implementingentities.Recipientcountriescandeterminetheirmodeofaccess–direct(through
subnational,nationalorregionalentities)orthroughinternationalinstitutions,includingUN
agencies,multilateraldevelopmentbanksandinternationalfinancialinstitutions.
CountriesinteractwiththeFundthroughtheirNationalDesignatedAuthority(NDA)orfocal
point.Theynominatetheimplementingentityorintermediaryforaccreditation.
GCF Accreditation opened on 17 November 2014. This is a major step towards ensuring an
effective climate response on the ground. Applications are to be submitted online at:
www.gcfund.org/accreditation.
GCF PRESS KIT – Berlin Pledging Conference 2014 Howisthefundhelpingdevelopingcountriespreparetoaccessthefund?
Preparatory support is a strategic priority as a mechanism that will help ensure that
programmingiseffectiveandnationallyowned.Inparticular,theFundwillprovidesupportto
countriestohelptheirestablishNationalDesignatedAuthoritiesorfocalpoints,decideontheir
low‐emission, climate‐resilient development strategies or plans, strengthen country
arrangementstoengagewiththeFund,putforwardinstitutionstobecomeaccreditedbythe
Fund,andbuildpipelinesofprogrammeandprojectproposals.
Readiness and preparatory support will be available for all countries and priorities will be
tailoredtoaddresscountries’specificcircumstances.Theallocationofrelatedresourceswill
takeintoaccounttheurgentandimmediateneedsofdevelopingcountriesthatareparticularly
vulnerabletotheadverseimpactsofclimatechange,includingLDCs,SIDSandAfricanstates.
Whenwillthefundbeginsupportingprojects?
ItisanticipatedthattheFundwillbegintoconsiderfundingproposalinthesecondhalfof2015.
Whattypeofprojectswillbesupported?
TheFundwillmaximizetheimpactofitsfundingforadaptationandmitigationbyinvestingin
programmes,projectsandpoliciesthatbestrealiseitsaims.Itwilldosoinamannerconsistent
withnationaldevelopmentprioritiesofrecipientcountriesthuspromotingco‐benefits.
WhyistheFundallocatinghalfofitsresourcestoadaptationifitsgoalisaparadigmshift
inemissions?
TheaimoftheFundisnotonlyaparadigmtowardsloweremissions,butequallyaparadigm
shifttowardsclimateresilientdevelopmentpathways.
Howwilltheimpactoftheresourcesbemeasured?
TheFundhasselectedeightstrategicgoalstoorientitsresourcesinamannerthatmaximizes
its climate change impact. These form part of its performance measurement framework. In
additiontheFundwillpromoteenvironmental,social,economic,anddevelopmentco‐benefits
andtakeagender‐sensitiveapproach.
GCF PRESS KIT – Berlin Pledging Conference 2014 Howdoesthisfunddifferfromotherclimatefunds?
Withthegoalofbecomingthemainglobalfundforclimatechange,theFundisexpectedtoplay
asignificantroleinchannellingconcessionalclimatefinance.Itisintendedtooperateatalarger
scalethanotherclimatefundsandtopromotetheparadigmshifttowardslow‐emissionand
climate‐resilientdevelopmentpathways.
Itwillhaveariskappetitethatisconsistentwithitsmandateofpromotingaparadigmshiftin
thefinancingofnewinvestmentsbygovernmentsandprivatesectorindevelopingcountries.It
will alsooperate in a manner that seeks to ensure that countries havefull ownershipofthe
activitiessupportedbytheFund.
Recognizing the pressing need to both reduce emissions and strengthen resilience amongst
vulnerablepopulations,theFundwillallocateitsresourcesequallyforbothsetsofactivities
overtime.Severalotherfundsfocusonmitigation.
USEFUL LINKS GreenClimateFund
http://news.gcfund.org
Pressreleases
http://www.gcfund.org/press/releases.html
Boardmembers
http://www.gcfund.org/board/board‐members.html
ExecutiveDirectorProfile
http://news.gcfund.org/executive‐director‐of‐the‐gcf‐hela‐cheikhrouhou/
GoverningInstrument
http://gcfund.net/fileadmin/00_customer/documents/pdf/GCF‐governing_instrument‐120521‐block‐LY.pdf
GlobalClimateFunds–Comparison
http://www.climatefundsupdate.org/the‐funds
GCF PRESS KIT – Berlin Pledging Conference 2014 QUOTES FROM WORLD LEADERS UNSecretaryGeneral,BanKi‐moon
“We must work together to mobilize money and move markets. Let us invest in the climate
solutionsavailabletoustoday.Economistshaveshownthatthiscomesatminimalextracost,
whilethebenefitstoourpeopleandourplanetaremonumental.Weneedallpublicfinance
institutionstostepuptothechallenge.Andweneedtobringprivatefinancefromthesidelines.
WemustbegintocapitalizetheGreenClimateFund.”(UNClimateSummit23Sept2014)
PresidentoftheUnitedStates,BarackObama
“WehavebeenworkingshouldertoshoulderwithmanyofyoutomaketheGreenClimateFund
areality.Butletmebehonest,noneofthisiswithoutcontroversy.Ineachofourcountriesthere
areintereststhatwillberesistanttoaction.Andineachcountrythereisasuspicionthatifwe
act,andothersdon’t,wewillbeataneconomicdisadvantage.Butwehavetolead.Thisiswhat
theUnitedNationsandthisAssemblyisabout.”(UNClimateSummit23Sept2014)
ChancelloroftheFederalRepublicofGermany,AngelaMerkel
“Internationalfinanceisoftheutmostimportance….IcansayforGermany,thatwewillrealize
ourresponsibility.ThisyearwillseethefirstcapitalizationoftheFund.Wewillcontributeto
thiswithuptoEUR750million(US$Ibillionequivalent).We alsohopeandcountonother
countriestocontributeanappropriateamount.”(StPetersburgClimateDialogue14July2014)
PresidentoftheRepublicofFrance,FrancoisHollande
“TheGreenClimateFundisanewprospectthatneedstobewellequipped.AndFrancewill
provideonebilliondollarsoverthenextfewyearsasourcontributiontotheGreenFund.The
Green Fund will help countries to invest in energy transition. The Green Fund will be a
considerableopportunityforenterprisestotransitiontowardsrenewableenergy.TheGreen
Fundwillalsobeanopportunityforgrowth.Itwillnotonlybeamarkofsolidarity,butalsoof
capacity for the global economy to engage into a new model of development.” (UN Climate
Summit23Sept2014)
GCF PRESS KIT – Berlin Pledging Conference 2014 PresidentoftheRepublicofKorea,ParkGeun‐hye
“TheearlycapitalizationoftheGCFisvitaltothelaunchofanewclimateregimenextyear.So
welooktoyourcontributionstotheFund.TheKoreangovernmentpledgesupto100million
USdollarstotheGCF,includingthe50millionwearecurrentlypaying.”(UNClimateSummit
23Sept2014)
TheSpecialEnvoyofthePresidentofthePeople’RepublicofChina,H.E.ZhangGaoli
“Developed countries need to intensify emission reduction and fulfill their commitment of
annual financial support of 100 billion US dollars and technology transfer to developing
countriesby2020.”(UNClimateSummit23Sept2014)
ThePresidentoftheRepublicofNauru,H.E.theHonourableBaronWaqa,
SpeakingasChairoftheAllianceofSmallIslandStates(AOSIS):
“Thecertaintyofclimatefinanceisessentialinbuildingthetrustneededforanagreement.That
is why we are calling for an initial capitalization of the GCF with $15 Billion US dollars and
simplifiedaccessforSIDS.”(UNClimateSummit23Sept2014)
GCF PRESS KIT – Berlin Pledging Conference 2014