GEF-5 Strategy for Climate Change Mitigation

GEF Expanded Constituency WorkshopMarch 1 – 3, 2011

Belize City, Belize

Mandate of the GEF

An operating entity of the financial mechanism of the UNFCCC (and other global environmental conventions)

A partnership of 182 member countries along with the private sector and civil society

10 GEF implementing and executing agencies– MDBs: World Bank and regional development banks– UN agencies: UNDP, UNEP, FAO, IFAD, and UNIDO

Provides grant and concessional financing for projects in developing countries and economies in transition that protect the global environment while promoting sustainable development

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

– Over 2.5 billion tonnes of CO2 avoided

– Amounts to slightly over $1/tonnes CO2

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

Strategic Objectives for GEF-5-SO1: Demonstration, deployment, and transfer of innovative low-carbon

technologies

GEF intervention under this objective will include technical

Technical assistance for creating an enabling policy environment for technology transfer, institutional and technical capacity building,

Establishment of mechanisms for technology transfer, North-South and South-South technology cooperation, purchase of technology licenses, and investment in pilot projects.

Project supported under this objective should clearly identify the source of the technology 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.

Project activities may include developing local capacity to adapt exogenous technologies to local conditions and to integrate them with endogenous technologies.

Strategic Objectives for GEF-5-SO2: Market transformation for energy efficiency in industry and

the building sector

In the industrial sector, GEF will support cover promoting energy efficient technologies and practices in industrial production and manufacturing processes (including agro-processing) especially in the small and medium-sized enterprises (SMEs) countries.

In the building sector, GEF support will cover residential, commercial, and public buildings, and include both new buildings and retrofitting of existing buildings.

Project activities may incorporate the use of solar energy and thermal capacity of shallow ground for heating and cooling in the building system. Emphasis will be placed on integrated and systemic approaches and high performance buildings, appliances, and equipment. Promotion of energy efficient cook stoves will be covered under this objective..

Strategic Objectives for GEF-5-SO3: Investment in renewable energy technologies

GEF will support, on-grid renewable energy programs , decentralized production of electric power and the use indigenous renewable sources such as biomass, solar, wind, hydro, and geothermal.

GEF projects can promote local SMEs to enhance their technical capacities to provide installation, operation, and maintenance services for renewable energy technologies.

GEF support will extend to recovering methane from biomass wastes for power generation or heat production.

GEF support may also extend to supporting sustainable production of biomass for solid and liquid biofuels as a substitute to fossil fuels where appropriate conditions, including safeguard policies, exist.

Strategic Objectives for GEF-5-SO4: Energy efficient, low-carbon transport and urban systems

Options for GEF intervention will include the following types of activities ;transport planning, public transit systems, energy efficiency improvement of the fleet, efficient traffic control and management, transport demand management, and non-motorized transport.

Technological options in the transport sector, such as promoting clean, low-carbon vehicles..

GEF projects will address not only climate change mitigation but also local air pollution, traffic congestion, and access to affordable and efficient transport and public utilities.

GEF support under this objective will involve technical assistance in transport and urban planning, development of innovative financing mechanisms, awareness campaigns, and investments in high-performance technologies

Strategic Objectives for GEF-5-SO5: Conservation and enhancement of carbon stocks through sustainable management of land

use and forestry

In GEF-5, the GEF will expand the LULUCF program within the climate change focal area and through cross-cutting projects linking to SFM as well as biodiversity and land degradation focal areas.

The objective on LULUCF during GEF-5 will be two-fold: one is to conserve, restore, enhance, and manage the carbon stocks in forest and non-forest lands, and the other is to prevent emissions of the carbon stocks to the atmosphere through the reduction of the pressure on these lands in the wider landscape.

GEF intervention will cover the spectrum of land-use categories reducing deforestation and forest degradation and enhancing carbon stocks in non-forest lands, as well as management of peatland.

Strategic Objectives for GEF-5-SO5: Conservation and enhancement of carbon stocks through sustainable management of land

use and forestry

During GEF-5, the GEF will support activities that will develop national systems to measure and monitor carbon stocks and fluxes from forest and non-forest lands, strengthen related policies and institutions, undertake good management practices with local communities, and establish financing mechanisms and investment programs.

GEF-5 has created a separate envelop of $250 million for funding that will be operated as an incentive mechanism for beneficiary countries willing to combine significant fractions of their STAR allocations from biodiversity, climate change and land degradation for more comprehensive SFM/REDD-plus projects and programs.

For every three dollars of investment from STAR resources from two or more focal areas allocated to a particular country, one dollar will be released from the SFM/REDD-plus incentive mechanism to the project being proposed.

Strategic Objectives for GEF-5-SO6: Enabling activities and capacity building

The GEF will ensure adequate resources to support non-Annex I Parties to meet their obligation under the Convention. In addition, the GEF will continue to fund the 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 emerging COP guidance, the GEF may finance activities to support capacity building activities, implementation of Articles 6 of the Convention on education, training, and public

Options to be explored to support the carbon markets in GEF-5 may include: (i) capacity building to help create enabling legal and regulatory environments; (ii) support of programmatic carbon finance and other activities under the post-2012 climate regime;

Contact Information

Ms. Chizuru Aoki

Coordinator-Climate Change

Mitigation

Email: caoki@thegef.org

Website:http://www.thegef.org/gef/

sites/thegef.org/files/documents/

document/GEF-5_CC_strategy.pdf

LDCF/SCCF Climate Change Adaptation Strategy

GEF Expanded Constituency WorkshopMarch 1 – 3, 2011

Belize City, Belize

LDCF and SCCF – a key role in global learning on adaptation in practice

• LDCF and SCCF – funds whose priority is adaptation• Managed and administered independently of from

the GEF Trust Fund• Among the very first international funds to provide

financing for concrete on-the-ground adaptation activities

• Learning by doing: What is “adaptation” in practice?

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Donor Funding of LDCF/SCCF

LDCF --$345M pledged from 23 donorsSCCF -- $186M pledged from 14 donors

ÞTotal > $530 M

Allocated, Committed or Disbursed: –62 projects in 64 developing countries

through:•LDCF for $156 million •SCCF for $100 million

–45 National Adaptation Programs of Action completed, 48 financed (LDCs) $12 M

As of 12/31/2010

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LDCF SCCF Adaptation Strategy: Pillars

• LDCF and SCCF Strategy pivots on financing adaptation

• An increase in adaptation funding, in order to support the increase in volume and scale of intervention – e.g. programmatic approach

• An increase in the predictability of the funding, in order to better facilitate medium-term planning

• Channeling GEF-managed adaptation financing resources through LDCF and SCCF – GEF-5 strategy does not include adaptation.

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LDCF SCCF Adaptation Strategy: Pillars

• Responsiveness to UNFCCC guidance

• Responsiveness to vulnerable developing country needs

• Moving to the next stage of LDCF and SCCF funding – a programmatic approach

• Responsiveness to Independent Evaluations of the SPA and LDCF

• Complementarily among different adaptation-related funds

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LDCF/SCCF Adaptation Strategy 2010-2014

• Goal: To support developing countries to increase resilience to climate change through both immediate and longer-term adaptation measures in development policies, plans, programs, projects and actions.

• Impact: Reduce absolute losses due to climate change, including variability.

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LDCF and SCCF Strategic Objectives

1. Reduce vulnerability to the adverse impacts of climate change – e.g. reduced risks to economic losses through implementation of adaptation measures

2. Increase adaptive capacity to respond

to the impacts of climate change – e.g.

within relevant development sectors

and natural resources; diversified and

strengthened livelihoods and sources of

income

3. Promote transfer and adoption of adaptation technologies – as defined under the Climate Convention (example: SCCF-TT Jordan)

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Pioneering Activities in Priority Sectors and Areas of Intervention: LDCF

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Food Security and Agriculture drought resistant crop, farming techniques

Water Resources Management resilient water infrastructure, rainwater harvesting, micro surface and ground water treatment facilities

Disaster Risk Management Integrated disaster risk management strategies, glacial lake outburst floods hazard management

Community Based Adaptation forest management, mangrove restoration, alternative livelihoods, strengthened animal health systems

Natural Resources Management efficient wood management, ecotourism, fishing around mangroves, renewable energy use

Health climate change challenges incorporated into health programs, use of medicinal plants to treat diseases

Infrastructure critical infrastructure

Pioneering Activities in Priority Sectors and Areas of Intervention: SCCF

Water Resources Management drainage and water-saving technologies, increased reservoir capacity through energy efficiency of turbines

Agriculture/Land Management drip irrigation, drought and salinity resistant crop varieties

Infrastructure Development infrastructure for alternative water sources, e.g. climate resilient roads and harbors

Fragile Ecosystems repopulation of coral reefs, buffer zones and biological corridors between vulnerable wetlands

Integrated Coastal Zone Management beach reinforcement and nourishment, protection structures (e.g. jetties, groins, breakwaters)

Health heat-wave warning systems, surveillance and response for malaria epidemics

Disaster Risk Management early warning systems

Cross Cutting Issues information sharing systems to monitor crop choices and contingency crop plans, and pest and disease severity

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Innovative Features of LDCF/SCCF

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GEF TRUST FUND:

• Incremental cost• Global benefits• STAR• Co-financing

LDCF & SCCF:

• Additional cost• NO Global benefits requirement• No STAR• Existing BAU Financing • Higher MSP ceiling for LDCF• Rolling basis approval for

LDCF

Thank you!

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For more information, please visit LDCF/SCCF websites:

LDCF: http://www.thegef.org/gef/ldcfSCCF: http://www.thegef.org/gef/sccf