hatoyama initiative and jica's perspective on addressing climate change
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1
Hatoyama Initiative
and JICA’s perspectives on Addressing
Climate Change
April 21, 2010
Office for Climate ChangeJapan International Cooperation Agency (JICA)
Japan’s Initiative on Climate
Change
Japan’s Initiative on Climate Change
COP3 (1997)
Kyoto InitiativeInitiative for Sustainable Development Toward The 21st Century(ISD)
WSSD (2002)
Environmental Conservation Initiative for Sustainable Development (EcoISD)
The World Conference on Disaster
Reduction (2005)
Hyogo Framework for Action
Gleneagles G8 Summit (2005)
Japan’s Initiative on Climate Change
4th Japan/PIF Summit (2008)
Okinawa Partnership for a more robust and prosperous Pacific Region
International Conference on “the Future Asia” (2007)
Invitation to “Cool Earth 50”
3rd East Asia Summit (2007)
Towards a “Sustainable East Asia”
World Economic Forum 2008 (2008)
Cool Earth Promotion Program (Cool Earth Partnership)
TICAD IV(2008)
Yokohama Action Plan5th Japan/PIF Summit (2008)
Islander’s Hokkaido Declaration
UN Summit on Climate Change & COP15 (2009)
Hatoyama Initiative
4
Mid term target
• The developed countries need to take the lead in emissions reduction efforts. • For its mid-term goal, Japan will aim to reduce its emissions by 25% by 2020, if compared to the 1990 level.• It is imperative to establish a fair and effective international framework in which all major economies participate. The commitment of Japan to the world is premised on agreement on ambitious targets by all the major economies.
Hatoyama InitiativePrime Minister Yukio Hatoyama made a speech at UN Summit on Climate
Change on 22 September, 2009, and announced Japan’s mid term target and
new initiative named “Hatoyama Initiative” at UN Summit on Climate.
5
Hatoyama InitiativeOutline of
Haytoyama
Initiative
1. Contribution by the developed countries through
substantial, new and additional public and private financing.
2. Development of rules that will facilitate international recognition of developing countries' emissions reductions, in particular those achieved through financial assistance, in MRV.
3. Establishment of system which facilitates one-stop provision of information on and matching of available bilateral and multilateral financing, while securing transparency and effective utilization of assistance.
4. Establishment of a framework to promote the transfer of low-carbon technologies which ensures the protection of intellectual property rights.
6
Hatoyama Initiative (up to 2012)
• As for assistance up to 2012, Japan will provide financial assistance to developing countries of approximately 1 trillion 750 billion Yen (about $15 billion) including public and private finance, of which public finance comprises approximately 1 trillion 300 billion Yen (about $11 billion),
• The assistance under Hatoyama Initiative will be provided on the condition that successful political accord is achieved, that is a fair and effective framework with participation of all major emitting countries and agreement of their ambitious targets.
• Upon the establishment of a new framework Japan will, with this assistance, support a broad range of developing countries which are taking measures of mitigation, as well as those which are vulnerable to the negative impacts of climate change.
7
Hatoyama Initiative (up to 2012)
The assistance under Hatoyama Initiative will be provided on the condition that successful political accord is achieved, that is a fair and effective framework with participation of all major emitting countries and agreement of their ambitious targets.
Public Finance1.3 trillion JPY(11billion USD)
Private Sector Finance450 billion JPY (15billion USD)
support a broad range of developing countries which are taking measures of mitigation, as well as those which are vulnerable to the negative impacts of climate change.
2012
Major Difference between Cool Earth
Partnership & Hatoyama Initiative
Cool Earth partnership Hatoyama Initiative
Financial Amount1.25 trillion JPY
(100 billion USD)
1.75 trillion JP
(150 billion USD)
Target CountriesCool Earth Partner Countries (through Policy dialogue with GOJ)
Broad range of developing countries which are taking measures addresing climate change.
Target scope
Grant & TC: Adaptation & Clean Energy Development
ODA Loan: Mitigation
Grant ,TC & ODA Loan: Both Mitigation & Adaptation
(Note) Further details for operation of Hatoyama Initiative will be decided soon.
JICA’s Cooperation Addressing
Climate Change
10
Facts and Figures of JICA
• Profile:
– Japan’s Official DevelopmentAssistance Agency
– Providing Grant Aids, ConcessionalLoans and Technical Cooperation
– Assistance implemented by itsown staff as well as thousands ofJapanese experts and young andsenior volunteers.
• Operational Volume:
– World’s largest bilateral development assistance agency with a size of USD10 billion (FY2008)
– USD6 billion or more for Climate change related projects and programs
Exchange Rate used: JPY100.10/US$ (IFS rate for 2008 March end)
*estimated based on FY2008 budget (full year)
JICA’s Vision, Mission & Strategy
[Vision]Inclusive and Dynamic Development
[Mission]1. Addressing the global agenda2. Reducing poverty through equitable
growth3 Improving governance4 Achieving human security
[Strategy]1. Integrated assistance2. Seamless assistance3. Promoting development partnerships4. Enhancing research and knowledge-
sharing
[Activity guiding principles]1. Achieving synergies of the merger2. Tackling complex, difficult issues flexibly with the field-based approach3. Fostering expertise for providing professional solutions4. Efficient and transparent operation
Long-term vision
Climate change benefit as co-benefits of developmentCooperation for Sustainable Development from various levels
Projects
Programs
Sector
Policies
Development
Plan
Integrate
Climate
Change
Concerns
into
Development
Actions
Donor’s
Assistance
Financial
Assistance
Technical
Assistance
Generating
Developmental
benefit
GHG Reduction as
co-benefit
Direction of New JICA’s Operation
Addressing Climate Change
<Mitigation Measures>
Co-benefit * Promotion of CDM
Assisting in enhancing and promoting
private sector initiatives
<Adaptation Measures>
Supporting the formulation
and implementation of
adaptation measures
Technic
al a
ssis
tance
Fin
ancia
l assis
tance
Utilize Japan’s private cutting-edge technologies effectively
Promote globally conducive research
Assisting in implementation
of Policies
- Improvement of legal systems
- Capacity development
- Monitoring , etc…
NEW-JICA’s policies and concrete measures(Image)
Strengthening the capacity
for adaptation
Introducing and
mainstreaming
the concept of
“Climate Risk”
* “Co-benefit” approach ・・・Project or program which realize both developmental benefits for developing country and GHG
emission reductions.
How can we address
Copenhagen Accord? (1)
• Para 5 (NAMAs)– Non-Annex I Parties to the Convention will implement mitigation
actions, including those to be submitted to the secretariat by non-Annex I Parties… Mitigation actions taken by Non-Annex I Parties will be subject to their domestic measurement, reporting and verification the result of which will be reported through their national communications every two years.
– Non-Annex I Parties will communicate information on the implementation of their actions through National Communications, with provisions for international consultations and analysis under clearly defined guidelines that will ensure that national sovereignty is respected.
– Nationally appropriate mitigation actions seeking international support will be recorded in a registry along with relevant technology, finance and capacity building support. Those actions supported will be added to the list in appendix II.
– These supported nationally appropriate mitigation actions will be subject to international measurement, reporting and verification in accordance with guidelines adopted by the Conference of the Parties.
15
MRV in Copenhagen Accord and ODA
MRV in Copenhagen
AccordMRV in ODA operation
Measure GHG mitigation actions and its effects
(carbon footprint)M (Measurable)
Effectiveness of development assistance (e.g. expected
increased harvest by irrigation project)
Report to UNFCCC through National Communications
R (Reportable)Project Completion Report
submitted by recipient country, Statistic Report to OECD
Verify by national verification system or
international verification system
V (Verifiable)Post-evaluation (e.g. actual
increase of harvest as Operational & Effectiveness
Indicators)
Development Agencies need to develop common
Carbon Foot Tool for measuring GHG reduction
How can we address Copenhagen
Accord? (2)
• Para 8 (Finance)– Scaled up, new and additional, predictable and adequate funding as well as
improved access shall be provided to developing countries, in accordance with the relevant provisions of the Convention, to enable and support enhanced action on mitigation, including substantial finance to reduce emissions from deforestation and forest degradation (REDD-plus), adaptation, technology development and transfer and capacity-building, for enhanced implementation of the Convention.
– The collective commitment by developed countries is to provide new and additional resources, including forestry and investments through international institutions, approaching USD 30 billion for the period 2010-2012 with balanced allocation between adaptation and mitigation.
– In the context of meaningful mitigation actions and transparency on implementation, developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries.
– This funding will come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance. New multilateral funding for adaptation will be delivered through effective and efficient fund arrangements, with a governance structure providing for equal representation of developed and developing countries. A significant portion of such funding should flow through the Copenhagen Green Climate Fund.
Trend of Japan’s ODA Finance in Climate Change
(Note) ODA Loan Only. Figures of FY2009 is tentative. Some of projects which
contribute to both Mitigation and Adaptation count as “Mitigation”.
Japan's ODA Finance in Climate Change (FY2002-2009)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2002 2003 2004 2005 2006 2007 2008 2009
FY
Mill
ion J
PY
Mitogation Adaptation Both
MFIs
GEF
Developing Countries
Public Entities
Private Entities
National
Intermediaries
CDM
Market
Developed Countries
Green
Climate
Fund
BFIs
Export
Credit
Private
Finance and
Investment
CIF
Technical Assistance
UNFCCC Funds
Co-Finance
Expected Climate Change Finance
Grant and/or Loan Grant
Concessional
Loans
Commercial
Loans Investment
Private Investment Flow by Recipient Country (2004)
Private Investment Flow Total (million USD, 2004)
China,65,860,
67%
India,14,170,
14%
Malaysia,
9,024,9%
Bangladesh,453,
0%
Cambodia,
131,0%
Sri Lanka,133,
0%
Myanmar,214,0%
Philippines,
887,1%
Thailand,
1,117, 1%
Indonesia,3,152,
3%
Vietnam,1,610,
2%Pakistan,
1,168, 1%
Mongolia,93, 0%
PapuaNew Guinea,
25, 0%
Lao PDR,17, 0%
Maldives,15, 0%
Source: GDF (2006)
Climate Change and ODA
Mitigation and adaptation projects
Implementation of climate change policies based on agreed matrix
Private sector investments for sustainable growth
Feasibility Study for programme loan
to monitor implementation and develop next steps
Identification of necessary investments
Technical assistance (advisor/expert)
Climate Change ODA loanagreement on policy matrix for climate change
ODA grants/loans
Enabling Environment to induce investments
Private capital
ODA
Private
Policy Based Assistance for Climate Change Policy
Climate Change Program Loan
Pillar 1: Mitigation
1.1: LULUCF
(Land Use, Land Use
Change and Forestry)
-Reforestation
-REDD
-Forest management
1.2: Energy
-Power plant
-Industry, domestic and
commercial
-Others
Pillar 2: Adaptation
Pillar 3: Cross-cutting Issues
3.1:Understandin
g the Impact of
Climate Change
3.2: Mainstreaming
Climate Change in the
National Development
Program
Example of the Policy Matrix formulated based on the policy dialogue
2.1: Water
Resource
Management
2.2: Water
Supply and
Sanitation
2.3: Agriculture
3.3: CDM 3.4: Co-Benefit3.5: Fiscal
Incentive
3.6: Early
Warning System
Monitor, Review and advice
Steering Committee
Partner country’s
Government
Donors
Financial Assistance,
Technical Cooperation
Coordination among
line ministries
22
National Development Plan
Mitigation
Adaptation
NAMA
Policy Matrix
• NAMA focuses on “Mitigation” actions among development policies
• “policy matrix includes several policies and actions not only mitigation but also
adaptation and cross-cutting issues
• Both need to align “Development policies & Strategies”
Relations between NAMA and Policy Matrix
23
Financial Assistance in NAMA
Climate Fund
Bi Donors Multi Donors Other Donors
Bi Donors Multi Donors Others
Policy MatrixAgree with donors Monitoring policy
implementation
General Budget SupportCo-finance among donors
Bi Donor Multi Donor Other Donors
Bi DonorsMulti Donors
Other Donors
Technical & Financial assistance to individual projectsOECD/DAC is preparing system to capture ODA flows in
Climate Change (RIO Marker system)
NAMARegister at UNFCCC
To integrate climate change measures into development cooperation
To promote “Low-carbon Growth”
To realize tangible development programmes /projects from the perspective of climate change
To leverage private sector finance by creating enabling environment
JICA’s Next Steps for Achieving Low Carbon & Climate Proofing Society
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