Availability, source & use of DFI climate finance data

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+39 041 2700 426Island of San Giorgio Maggiore 830126 VeniceItalyclimatepolicyinitiative.org

Availability, source and use of DFI data in the

CPI Landscapes of Climate FinanceOECD Rio Marker Task Team meeting, March 2014

Jane Wilkinson, Director

Availability, source & use of DFI climate finance data

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Overview of Presentation

• Quick recap of OECD-CPI Consultation on Tracking Climate Finance

• Summarize CPI approach- Who is a Development Finance Institutions

(DFI)?- DFIs in the Global Landscape of Climate

Finance 2013- Availability and source of DFI climate

finance data- Compatibility of DFI data with other data

sources

• Some suggestions for a way forward

Availability, source & use of DFI climate finance data

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Recap: OECD-CPI Consultation on Tracking Climate Finance, Warsaw, COP 19

• Improve tracking to ensure– Robustness and transparency– Incentives that encourage mainstreaming

and prioritize climate change– Situate/understand climate finance in a

broader context• Principles for better tracking– Better definitions and methods– Robust and integrated data management– Enhanced disclosure– Balance

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Recap Continued

• What might improve tracking and transparency?– Bring OECD reporting system, MDB reporting

initiative and DFI surveys closer together– OECD DAC CRS is a good starting point

• Broaden participation– Engage more openly with developing

countries– Use informal work of ENVIRONET and WP-

STAT Task Team– Strengthen developing country ability to

track finance

Availability, source & use of DFI climate finance data

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Who is a Development Finance Institution (DFI)?

Note: only institutions listed that are considered under the Global Landscape of Climate Finance 2013

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DFIs in the Global Landscape of Climate Finance (USD billions flowing in 2011/2012)

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The private sector provides the lion’s share of finance.

PRIVATE

62%$224bn

PUBLIC

38%$135bn

The public sector plays a central role providing incentives, low-cost loans, risk coverage mechanisms, direct project investment, and technical support.

DFIs as key actors in the Global Landscape 2013

DFIs $121 bn

Government Budgets$9-16 bn

Climate Funds

$1.6 bn

ProjectDeveloper

s$102 bn

Corporate

Actors$66 bn

Households

$33 bn

Commercial Financial

Institutions$21 bn

Institutional Investors$0.4 bn

Venture CapitalPrivate Equity

Infrastructure Funds$1.2 bn

$359 bn

Availability, source & use of DFI climate finance data

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Availability and source of DFI climate finance data

- DFI reporting to OECD DAC CRS system (Rio markers)- Pro: common definitions, review process, project level data is public,

compatible with ODA Rio marker data- Con: limited coverage of DFIs unitl now, 2012 data only in 2014

- MDB climate finance joint report- Pro: full coverage of MDBs, common approach among MDBs , 2012 data in

2013- Con: project level data is not public, compatibility with other data?

- IDFC green finance mapping- Pro/Con: similar for DFIs under the IDFC as for MDB joint reporting

- CPI surveys for DFIs (used for Global & Indonesian Landscape)- Pro: large coverage (40+), same definition/reporting format, 2012 data in 2013- Con: ‘black box’ , CPI has no project level data, no control whether DFIs use the

same approach / follow the given definition / methodology (compatibility has to be improved by intensive dialogue with individual DFIs)

Availability, source & use of DFI climate finance data

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Compatibility of DFI data with other data sources

• Data of individual DFIs is largely compatible but there are inconsistencies

- between MDBs and non-MDBs; among non-MDBs- in terms of: granularity of coding, inclusion of activities, stage of projects

• Global and local DFI offices may have different views (Indonesia)

• It is possible that DFIs definitions may differ from national players in developing countries (Indonesia)

• DFI reporting under OECD DAC CRS allows for compatibility with ODA data

• More consistent definitions mitigation than for adaptation data; MDB list of mitigation activities are an interesting way forward

• Making DFI data as compatible as possible with CPI definition was time consuming (Indonesia, Global)- Compatibility much easier to achieve if project level

data

Availability, source & use of DFI climate finance data

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Suggestions for the way forward

For a full and high quality climate finance overview, we need:- Common definitions / reporting formats

- List of activities included/excluded could help- Common application of definitions; can be

improved with;- Transparency when reporting - Review system

- Common database / tracking system, or ways to avoid double counting of flows - Project level reporting can help to identify

overlaps- Identify ways to address the confidentiality

issue that some DFIs face

Availability, source & use of DFI climate finance data

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Additional information

www.ClimateFinanceLandscape.org

www.ClimatePolicyInitiative.org

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+39 041 2700 426Island of San Giorgio Maggiore 830126 VeniceItalyclimatepolicyinitiative.org

Thank you!