Focal Area and Cross Cutting Strategies – Climate Change

GEF Expanded Constituency Workshop

March 22 – 24, 2011

Kyiv, Ukraine

Mandate of the GEF

• An operating entity of the financial mechanism of the UNFCCC• The objective of the UNFCCC is "to achieve [...] stabilization of

greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner" (from the text of the UNFCCC, Art.2)

Financing Climate Change under the GEF Trust Fund

• GEF Trust Fund invested in about $3 billion in over 150 countries– Mitigation–Adaptation–Technology Needs Assessments– National Communications to the UNFCCC

• Largest multilateral public-sector technology transfer mechanism– Financed demonstration, deployment, diffusion, and transfer of environmentally sound technologies

Roles of the GEF in Climate Change Financing

• Catalytic – Leveraged more than $18 billion in co-

financing on its $3 billion of investments• Innovative

– Leader in financing new, emerging low-carbon technologies (FCB, CSP, etc.)

– Pioneer in supporting market-based approaches (e.g., ESCOs) and innovative financial instruments

• Cost-effective– More than 1 billion tonnes of greenhouse gas

emissions avoided, equivalent to nearly 4 percent of annual human emissions

COP Mandate to GEF on Technology Transfer

• Poznan Strategic Program on Technology Transfer (COP decision 2/CP.14)

– Support for Technology Needs Assessments

– Support for Technology Transfer Pilot Projects

– Dissemination of successfully demonstrated technologies and know-how

• GEF-5 replenishment

– $4.3 billion total (six focal areas)

– $1.4 billion for climate change mitigation

Guiding Principles for GEF-5 Strategy

• Responsiveness to Convention guidance• Consideration of national circumstances of recipient countries• Cost-effectiveness in achieving global environmental benefits

Strategic Objectives for GEF-5 • SO1: Demonstration, deployment, and transfer of

innovative low-carbon technologies• SO2: Market transformation for energy efficiency

in industry and the building sector• SO3: Investment in renewable energy

technologies• SO4: Energy efficient, low-carbon transport and

urban systems• SO5: Conservation and enhancement of carbon

stocks through sustainable management of land use and forestry

• SO6: Enabling activities and capacity building

SO1: Demonstration, deployment, and transfer of innovative low-carbon technologies

• Innovative technologies are targeted, but also priority technologies that are commercially available but have not been adopted in their particular markets.

• Technologies at the diffusion stage or wide-scale dissemination of commercial technologies is not supported under this objective

• Projects should clearly identify the technology source and the target for the transfer, the scope and the mechanism of technology co-operation and transfer, and the market potential and strategy for replication.

• TA for creating enabling policy environment for tech transfer , capacity building, establishment of tech transfer mechanisms, N-S and S-S cooperation, purchase of licenses, pilot investments, development of local capacity to adapt exogenous technologies to local conditions and technology integration

SO2: Market transformation for energy efficiency in industry and the building sector

• Industrial sector: energy efficient technologies and practices; focus on SMEs

• Buildings: residential, commercial, and public buildings, both new and retrofitting; building envelope and energy-using systems are covered

• solar energy and shallow ground thermal capacity for heating and cooling

• May support phase-out of HCFCs used in industry and buildings• Combination of TA on policy, regulation, and capacity building;

financing mechanisms; and pilots

SO3: Investment in renewable energy technologies

• On-grid renewable energy programs• Decentralized production of electric power and the use of

indigenous renewable sources• Enhancement of technical capacities of SMEs to provide installation,

operation, and maintenance services for RETs. • Methane recovery from biomass wastes for power generation or

heat production. • Sustainable production of biomass for biofuels (appropriate

conditions, including safeguard policies, should apply)• Combination of TA for policy and regulatory support, capacity

building, and establishing financing mechanisms for investments.• GEF direct investment is particularly applicable in small, poor

developing countries, and LDCs

SO4: Energy efficient, low-carbon transport and urban systems

• The focus will remain on transport (STAP Advisory Document)• But comprehensive interventions through integration of transport,

energy, water, and housing sector activities will be encouraged• Address not only climate change mitigation but also local air

pollution, traffic congestion, etc. • TA in transport and urban planning, development of innovative

financing mechanisms, awareness campaigns, and investments in high-performance technologies

• Greater attention to measuring and quantifying GEB, which will provide a basis for choosing the best sets of interventions to deliver maximum global and local benefits (GEF-STAP manual for calculating GHG benefits)

SO5: Conservation and enhancement of carbon stocks through sustainable

management of land use and forestry• Enhance, restore and manage carbon stocks and storage on forest and non-

forest land (including peatland)• Reduce emissions of carbon stocks• Activities include: good practice demonstrations, establishment of national C

monitoring systems, strengthen policies and institutions, etc.• Linked to Sustainable Forest Management/ REDD+ incentive mechanism

– Goal is to achieve multiple environmental benefits from forest management/conservation

– All SFM projects must show carbon benefits– Multi-focal: include at least 2 focal areas from biodiversity, land degradation,

climate change– Incentive funds from outside STAR allocation; 1 dollar for every 3 dollars from STAR

SO6: Enabling activities and capacity building

• Preparation of National Communications by NAI Parties• Preparation and updating of TNAs especially for countries that did not

receive support for TNAs during GEF-4, in accordance with Convention guidance

• Subject to future COP guidance, the GEF may finance activities to support capacity building activities, implementation of Article 6 of the Convention on education, training, and public awareness, as well as other relevant enabling and capacity building activities as requested by the COP.

• The GEF can play a role in the emerging carbon markets, and options to be explored may include: – capacity building to help create enabling legal and regulatory environments;– demonstration of technologies– partial risk guarantees

Thank you