GLOBAL OPPORTUNITIES FOR

FINANCING CLIMATE CHANGE

Climate-Smart Agriculture Symposium

July 16, 2015

Kingston, Jamaica

How is IDB Assisting in CC Actions?

Mitigation to Climate Change Adaptation to Climate Change

•Technical support and expertise

•Identification of climate change funding

•Knowledge creation and sharing

These are the funds we currently work with:

• Climate Investment Funds

• Global Environment Facility

• Forest Carbon Partnership Facility

• Adaptation Fund

• Green Climate Fund

• UKAid

• InfraFund

• SECCI

Climate Change Funding

• The $1.2 billion Pilot Program for Climate Resilience (PPCR), a funding window of the $8.1 billion Climate Investment Funds, assists developing countries in integrating climate resilience into development planning.

• PPCR $777 million (70% of PPCR allocations) is approved and under implementation for 44 projects with expected co-financing of $1.1 billion.

• Currently the largest adaptation fund in the world, the PPCR is active in 9 pilot countries and 2 regional programs, which includes 9 small island nations.

Climate Investment Funds

Affordable and Flexible Financing Giving priority to highly vulnerable least developed countries, including small island developing states, the PPCR provides grants and highly concessional financing (near-zero interest credits with a grant element of 75%) for investments supporting a wide range of activities, such as:

• Improving agricultural practices and food security

• Building climate-resilient water supply and sanitation infrastructure

• Monitoring and analyzing weather data

• Conducting feasibility studies for climate-resilient housing in coastal areas

PPCR in Jamaica

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Adaptation Program and Financing Mechanisms (Grant US$7,8 + Concessional Loan US$10,7 million):

•Mainstreaming of Climate Change for Adaptation Measures (program built on lessons learned from EU’s Global Climate Change Adaptation and Disaster Risk Reduction Project, UNEP’s Risk and Vulnerability Assessment Methodology Project; and USAID’s JaREEACH Project);

•Creation of Financial Mechanisms to support Climate Resilience (line of credit made available for MSMEs and community based organizations and Special Fund for Climate Change Adaptation);

•Knowledge Management.

PPCR in Jamaica

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Caribbean Regional Track for the Pilot Program for Climate Resilience (Grant Resources US$10,3 million): The project will focus on:

• Improving geospatial data and management for adaptation planning, sea level rise and storm surge impact analyses;

• Consolidating and expanding the regional climate network and global platform linkages;

• Downscaling and expanded climate projection models and high resolution maps;

• Application of adaptation initiatives utilizing the information generated in the areas of health, agriculture, marine resources, water and climate change policies.

PPCR in Jamaica (Private Sector)

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Financing Water Adaptation in Jamaica’s New Housing Sector (US$5,7 million Loan):

The objective of this project is to:

• Facilitate the uptake of water efficiency measures in the housing sector across Jamaica;

• Increase climate resilient housing in Jamaica, through greater awareness of the business and financial cases for developing and building homes with water efficient measures;

• Reduce water demand, improve the reliability of water supply and thereby enhance Jamaica’s water security and climate resilience.

Context: UN Convention on Climate Change

Governance: The Fund is governed and supervised by a Board formed by recipient and contributing countries. Secretariat in Songdo, South Korea.

Country driven approach: strong role of Focal Point/NDA (National Designated Authorities) in beneficiary countries.

Resource mobilization: $10.2 billion

Green Climate Fund

GCF Structure

Private Sector Facility

50% of Adaptation indicatively to

African States, SIDS and Least

Developing Countries

Mitigation Adaptation

It includes Forestry, RE, EE, etc.

Theme based approach Energy efficiency of buildings and appliances

Energy efficiency of industrial processes;

Low‐emission transport;

Low‐emission energy access;

Small‐, medium‐ and large‐scale low‐emission power generation;

Sustainable land use management to support mitigation and adaptation;

Sustainable forest management to support mitigation and adaptation including afforestation and reduction of forest degradation;

REDD+ implementation;

Adaptation activities to reduce climate‐related vulnerabilities;

Readiness and capacity building for adaptation and mitigation activities;

Scaling up of effective community‐based adaptation (CBA) actions.

Accreditation means that IDB has been approved by the Board to act as channel through which the Fund will deploy its resources to developing countries.

Advantages to work with IDB:

Major financial entity in LAC: 45 years of presence in Jamaica

IDB processes ensure TRANSPARENCY

IDB’s own technical assistance

Access to an extensive pool of international experts

Financial blending with IDB’s own funding

IDB accredited by GCF

Thank you! İGracias! Ms. Anaitée Mills

Project Manager Climate Change &

Sustainability Division Tel: 1-876-764-0821

Email: anaiteem@iadb.org