oecd wp-stat workstream on measuring non-oda flows
DESCRIPTION
The OECD introduces its work on non-ODA flows, and how this can benefit the tracking of climate finance.TRANSCRIPT
WP-STAT WORKSTREAM ON NON-ODA FLOWS
February, 2013
DAC WORKSTREAM ON NON-ODA FLOWS
Objectives
1. Review members’ reporting; clarify definitions and basis of measurement; assess policy-relevance; propose alternative classifications on export credits; non export credit OOF; FDI;
2. Propose complementary measures of donors’ efforts/financing for development (Risk mitigation instruments, including guarantees; leveraging effect, results);
3. Analytical work on: Innovative financing; foundations; remittances;
4. Contribute to the reflection and work on measurement and monitoring external development finance post 2015 that the DAC will be undertaking in the coming months under mandate from the December 2012 DAC high-level meeting.
DAC WORKSTREAM ON NON-ODA FLOWS
Activities to date and on-going work
1. In-depth review of DFIs’ and IFI’s portfolios and reporting: ongoing work to improve the quality and policy relevance of current DAC classifications of non-ODA flows to better reflect on the recent evolution of these institutions’ portfolios.
2. Collaboration with other OECD bodies to streamline data collection (export credits and FDI) and contribute to horizontal work (climate finance, infrastructure investment, etc.).
3. Work to enhance the current DAC statistical picture of recipients’ resource receipts of private charity.
4. Launch in February 2013 of a special survey on guarantee schemes for development.
DAC WORKSTREAM ON NON-ODA FLOWS
Special review of IFIs’ portfolios and reporting
Main findings:
While the DAC statistical coverage of IFIs' operations is good, the recent evolution of their financial instruments is not necessarily properly reflected in DAC statistics.
In particular, with increasing use of instruments such as:
• Loans and equity investment to private sector entities (enterprises or investment funds).
• Equity and quasi-equity products (partially or not reported).
• Trade finance and risk mitigation instruments (including guarantee schemes).
• Structured finance, increasingly used to mobilise private investment in support of developmental projects.
DAC WORKSTREAM ON NON-ODA FLOWS
How this can contribute to climate finance tracking?
By:
Improving the current reporting and picture of non-concessional finance, including:
o DFIs’ and IFIs’ non-concessional operations targeting climate change - improving the reporting of sectoral information and RIO markers;
o Export credits (and FDI) –tracking of sectoral information (e.g. renewable energy);
better tracking and reflecting innovative schemes developed by IFIs in support of climate finance programmes (e.g. reimbursable grants to the IFC Financial Mechanisms for Climate Change).
exploring the extent to which public interventions mobilise private (climate) finance in developing countries.
SURVEY ON GUARANTEES FOR DEVELOPMENT February, 2013
Why a special survey for this?
• Guarantees are not captured in DAC statistical framework.
• Contribute to the new DAC High Level Meeting mandate to measure and monitor external development finance post 2015, which includes private finance mobilised by public interventions.
What are the survey objectives?
• Estimate the volume of private sector flows that has been mobilised by guarantee schemes for development purposes over the period 2009-11.
• Explore the feasibility of collecting information on guarantees on a regular basis in the future.
What are the survey objectives?
• Estimate the volume of private sector flows that has been mobilised by guarantee schemes for development purposes over the period 2009-11.
• Explore the feasibility of collecting information on guarantees on a regular basis in the future.
Bank A
Amount mobilised
US$ 10 million
Loan
US$ 4 million
Bank B
US$ 6 million
US$ 4 million
To whom was the survey sent?
• International financial institutions (IFIs)
• Development finance institutions (DFIs)
• Aid agencies
in DAC and non-DAC countries (observers to the DAC)
Export credit agencies are excluded, except when they
issue guarantees for development purposes
How does the survey contribute to
climate finance tracking?
• Two questions were included in the survey:
– Sector (OECD/DAC purpose codes):
• “Report the sector that the project supported by the guarantee scheme intends to benefit.”
– Climate change (Yes/No/Not tracked)
• “Indicate if the project addresses climate change adaptation or mitigation issues. For “Yes”, the climate change adaptation/mitigation objective has to be explicitly promoted in project documentation.
Any questions after this meeting?
• Cécile Sangaré
• + 33 1 45 24 83 73
• Mariana Mirabile
– + 33 1 45 24 76 26