1. Trends in international climate finance
flows and frameworks to scale-up, co-ordinate
and mainstream climate action
LEDS Global Partnership Meeting, Addis Ababa, Ethiopia
August 27 2014
Juan Casado-Asensio (OECD Development Co-operation Directorate)
Benjamin Larroquette (GLECRDS, UNDP-GEF)

2. Outline
• Towards effective development co-operation
• OECD DAC statistics for measuring and monitoring
external development finance for climate change
• Climate-related ODA trends and patterns to Africa
• Key policy trends and challenges
• CC strategies as basis of integrated planning
• Examples of capacity building initiatives that
support CC strategy development

3. Toward effective development co-operation:
 Aid Effectiveness
Principles draw
from 50 years of
development co-operation
experience
 Busan Declaration
(2011) and Global
Partnership for
Effective
Development
Co-operation
The Paris Declaration “Pyramid”
• Ownership of development priorities by
developing countries
• Focus on results
• Inclusive development partnerships
• Transparency and accountability

4. OECD DAC Statistical System
• Development finance
statistics are:
– reported by members,
international organisations &
some non-DAC and charities
– collected within the Creditor
Reporting System (CRS),
– monitored by Secretariat
(quality controls & reviews)
– transparent - activity-level aid
data publically available online
– could help partner countries
follow commitments on the
ground
• Reporting guided by
standardised
definitions and
classifications, e.g.
– commitments,
disbursements
– sector classifications
– Bilateral / multilateral
(avoids double counting)
– exchange rates
– ODA definition

5. Climate-related ODA is growing and
increasing as a share of ODA
Trends in climate-related aid, 3-year annual averages
2001-12, bilateral commitments, USD billion, constant 2011 prices
25
20
15
10
5
Source: OECD DAC Statistics, May 2014
• Climate-related aid by members of
the OECD DAC reached USD 21 bn
on average per year in 2010-12,
representing 16% of total ODA.
• Mitigation and/or adaptation was the
principal objective for 59% of
climate-related activities; for the
remainder, it was a significant
objective.
• Of the total climate-related aid, 58%
addresses mitigation concerns
only, 25% adaptation concerns only,
and 18% addresses both over 2010-
12.
3% 4%
6%
16%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
0
2001-03 2004-06 2007-09 2010-12
Share of total ODA commitments
USD billion
Principal Significant Share of Total ODA
Notes: 1) This Chart presents a trend based on averages over three years, so as to smooth fluctuations from
large multi-year projects committed in a given year. 2) Reporting against the mitigation marker became
mandatory from 2006 flows onwards. 3) The adaptation marker was introduced in 2010. Data on total climate-related
aid for earlier years mainly relates to mitigation and may underestimate bilateral aid flows to climate
change.

6. Distribution of bilateral climate-related aid
Geographic regions receiving mitigation-related aid
2007-2012, bilateral commitments
Oceania
1%
Asia
45%
Europe
5%
America
13%
Unspecified
Africa
22%
14%
Oceania
2%
Asia
35%
Africa
28%
Europe
5%
America
11%
Unspecified
19%
• Income groups – MICs are the largest recipient group, but LDCs/LICs receive a higher
share of adaptation-related (25%) aid vs. mitigation-related aid (13%).
• Geographical focus – aid is concentrated in a small number of partner countries (though
less concentrated in adaptation), with most flowing to Asia followed by Africa.
• Delivery instrument – mitigation-related aid is typically delivered through loans (58%);
adaptation-related aid through grants (69%).
Geographic regions receiving adaptation-related aid
2007-2012, bilateral commitments
Source: OECD DAC CRS, May 2014 Source: OECD DAC CRS, May 2014
• Projects – For mitigation: large-volume projects to cut GHG emission reductions (energy, transport, water).
For adaptation: many small-volume policy formulation, research, education and capacity building projects,
but a small number of large-volume activities on water, agriculture, forestry, fishing and rural development.

7. How much climate-related bilateral aid is
flowing to Africa?
Trends in climate-related aid to Africa, 3-year annual averages
2004-12, bilateral commitments, USD billion, constant 2012 prices
Source: OECD DAC Statistics, August 2014
• Climate-related aid to Africa has also increased since 2004-06, reaching USD 5 bn
per year on average over 2010-12 or 13% of total bilateral aid for the region.
• 52% of all climate-related aid to Africa targets mitigation and/or adaptation as a
principal objective.
• Of the total climate-related aid to Africa, 51% targets mitigation only, 32% targets
adaptation only and 17% targets both.
Notes: 1) This Chart
presents a trend based on
averages over three years,
so as to smooth
fluctuations from large
multi-year projects
committed in a given year.
2) Reporting against the
mitigation marker became
mandatory from 2006 flows
onwards. 3) The adaptation
marker was introduced in
2010. Data on total climate-related
aid for earlier years
mainly relates to mitigation
and may underestimate
bilateral aid flows to
climate change.

8. Which sectors are targeted by climate-related aid?
Top 5 sectors receiving 86% of total climate-related aid to Africa over 2010-12
2010-12, bilateral commitments, USD billion, constant 2012 prices
Electrical
transmission
and
distribution
29%
Wind
21%
Geothermal
14%
Power
generation
from
renewable
sources
17%
• Climate-related aid is concentrated in the energy sector (mitigation-related aid), followed
by the agriculture forestry, fishing and rural development, and water sectors (adaptation-related
aid).
• Mitigation-related aid in the energy sector is concentrated in electrical transmission and
distribution and renewable energy generation (increase energy access and grid
connectivity, integrate renewables).
Hydro
7%
Solar
5%
Energy
Admin
6%
Other
1%
Source: OECD DAC Statistics, August 2014

9. Access 1,000s of activity-level data
through the new data visualisation tool
Online http://www.oecd.org/dac/stats/rioconventions.htm
Data on bilateral climate-related
aid commitments from members
of the OECD DAC.
• Trends and composition in
climate-related aid
• By provider, recipient, by sector,
and instrument.
• Access to activity level data
• 3-minute introduction video
• Latest statistical flyers
• Definitions & additional
guidelines
• Details of events

10. 1
The United Nations Development Programme
We are on the ground in 177 countries and territories
worldwide: we understand the local context
3
2
We provide climate change mitigation expertise,
with a $4 billion project portfolio in sustainable energy
4
Access to
electricity (on-and
off-grid):
$260m + $900m
in co-financing*
Energy efficiency
and
conservation:
$265m + $1.2bn
in co-financing
Sustainable
transport
systems:
$85m + $820m
in co-financing
We implement a detailed approach for developing
Low-Emission, Climate-Resilient Strategies
Statistical downscaling of
General Circulation Models
Municipal climate impact
scenarios
* Project portfolio amounts relate to the period 1992-2010
UNDP’s Low Emission Climate
Resilient Development Strategies
We provide expertise on adaptation , with a project portfolio
in excess of $ 2 billion (including $750 million + in grants)

11. Trends
Countries are:
• increasingly preparing LEDS, LECRDS, NAPS, NAMAs
and other cross-cutting strategies to support their
transitions to a low emission and climate resilient
economy
• recognizing inter-sectoral nature of adapting to “new
reality” , i.e., role of key line ministries and other
partners to reduce risks and mitigate emissions in
integrated manner
• facing critical challenges in implementing these
strategies and actions: capacity, coordination,
mainstreaming into development policy, financing

12. Key Challenges
• National capacities are required to navigate complex
landscape and allow countries to access different forms of
relevant finance and deliver integrated development
benefits
• Funding mechanisms not widely established to deliver
integrated CCA and CCM benefits; focus on one or another
• Need to catalyze private finance: public finance alone is
insufficient to meet demands of climate challenge, must
catalyze greater volumes of private finance
• Limited alignment between climate and development: to
drive economy-wide transformation, and to mainstream
climate expenditures into planning and development policy

13. Green LECRDS, NAPs, LEDS, NAMAs
A Basis of Integrated Planning
Strategic Planning
•Assess needs and
priorities, and
identify barriers to
investment
• Identify policy mix
and sources of
financing
Accessing
Resources
• Directly access
finance
•Blend and combine
finance
•Formulate project,
progamme, sector-wide
approaches to
access finance
Coordinated
Implementation
• Implement and
execute project,
programme,
sector-wide
approaches in
integrated manner
•Build local supply
of expertise and
skills
Monitor, Report &
Verify
•Monitor, report,
and verify flows
•Performance-based
payments
LECRDS, LEDS,
NAPs, NAMAs
Supporting national systems to integrate climate and development helps countries to
plan effectively and allocate finance, as well as identify appropriate sources of finance
and policy mechanisms – LECRDS, LEDS, NAMAs, NAPs can form basis

14. NAPAs NAPA follow up projects NAPA follow-up projects
(under development)
NAP Support

15. From supporting countries to prepare NAPAs to
accessing finance to implement urgent priorities
Bhutan NAPA Process
Reducing Climate Change-induced
Risks and Vulnerabilities from Glacial
Lake Outburst Floods in Punakha-
Wangdi and Chamkhar Valleys
31 countries- Supported to prepared NAPAs
50 LDCs – Supported to access climate
finance to address adaptation needs

16. •Low Emission Capacity Building Programme (LECB)
• EC, Germany - BMU/ICI, Australia
• National Adaptation Plan Support Programme (w/ UNEP)
• LDCF
• National Communications Support Programme (w/UNEP)
•GEF
•National Adaptation Programmes of Action (NAPAs)
• GEF
•Climate Public Expenditures and Institutional Reviews (CPEIR)
• Canada-SIDA, multiple partners, LDCF, SCCF
•Climate Finance Options website (w/ World Bank)
• World Bank, UNDP
• NIE Accreditation Support Programme - AF Direct Access
• UNDP
• GCF Readiness Programme (w/ UNEP, WRI)
• Germany
Capacity building support for
Enabling and foundational initiatives

17. NAP Support Programme
• Project developed by UNEP and UNDP
• Together with GEFSEC, IFAD, WFP, UNITAR, WHO, GIZ
• $2 M USD, duration 2 years, financed by LDCF
• Leveraging and building on other ongoing initiatives
• Designed with inputs and suggestions made by LDCs,
LEG and several key donors and is consequently
establish a support mechanism around three main pillars
• Institutional support
• Technical support
• Knowledge brokering

18. NAP Support Programme
To support LDCs to commence process of integrating medium- to
long-term planning for adaptation to climate change within, or
aligned with, current development planning and budgeting
processes
• Identification of gaps (information, capacity [technical
and functional], institutional)
• Making linkages to other ongoing initiatives
• Making tools and approaches available to LDCs to
support key steps in NAP process
• Exchanging lessons learned and knowledge through
South-South and North-South Cooperation.

19. Low Emission Capacity Building (LECB) Programme:
• Objective: Build capacities to design and implement Low Emission
Development Strategies and national mitigation actions in the public
and/or private sectors
• Five main work areas
• GHG inventory management systems
• Nationally Appropriate Mitigation Actions (NAMAs)
• Low-Emission Development Strategies (LEDS)
• Measurement, Reporting and Verification (MRV)
• Mitigation actions in selected industries/private sector
• Funding: $40 million covering 25 countries; funded by European
Commission, Germany and Australian Government.
• Implementation period: 2011-16
• Sectors: Energy, transport, industries, waste, agriculture. Industries
include cement, fertilizers, mining, construction, chemicals

20. LECB Contribution to Addressing
Capacity/Coordination/Financing Challenges
• Design strategic, long-term national vision for low-emission
development aligned with national development goals
• Remove technical, financial and institutional barriers to scale-up
mitigation action
• Improve GHG emission scenarios and the underlying
information base to ensure well-informed decision making and
a business case for climate change mitigation
• Assess sustainable development impacts (co-benefits) of
NAMAs & LEDS and design systems to capture these impacts
• Support climate finance “readiness” efforts, including how to
catalyse public finance to attract private sector investments

21. LECB Contribution to Addressing
Capacity/Coordination/Financing Challenges (cont’d)
• Put in place a multi-stakeholder framework for coordination
with relevant institutions, national steering committee,
technical working groups
• Maximise use of national experts with tailored technical
assistance provided, based upon country needs
• Focus on institutional capacity building to support a
country-driven process to enhance the skills required for
accessing finance and implementation
• Learn from diverse capacities and experiences, ranging from
LDCs to medium-income countries and large emerging
economies

22. LECB – Implementation challenges
• A country-driven process subject to political changes
• Priority setting for NAMAs are very lengthy and complex
due to competing agendas among sectoral ministries
• Scope of work (i.e. number of sectors and NAMAs)
tends to be overambitious
• Implementation of mitigation actions and MRV politically
charged in many countries
• Incipient institutional support to NAMAs and LEDS
• Weak technical capacities to undertake thorough NAMA
formulation and implementation

23. Existing UNDP Tools and Guidance in English –
some available in French, Spanish, Russian
http://www.undp.org/climatestrategies
http://climatefinanceoptions.org/cfo/index.php

24. Thank you!
juan.casadoasensio@oecd.org
benjamin.larroquette@undp.org
For further information:
www.oecd.org/development/environment-development/climate-partnership.htm
www.climatefinance-developmenteffectiveness.org/partnership-for-climate-finance-and-development.
html