2 nd Biennial Assessment and Overview of Climate Finance Flows

Transcription

1 2 nd Biennial Assessment and Overview of Climate Finance Flows Chapter I: Methodological Issues Relating to Measurement, Reporting and Verification of Climate Finance 19 July 2016

2 Chapter Layout Introduction Issues relating to climate finance definitions Methodologies for reporting climate finance Reporting to the Convention and associated Operating Entities Reporting by public institutions Methods to track domestic and private finance Specialised methods: adaptation, REDD+, capacity building, and loss & damage

3 Chapter Layout (contd.) Issues and initiatives in accounting for climate finance Methodologies to review and verify public finance Methods to review data submitted to the Convention Methods to review data submitted to OECD, MDBs, and other financial institutions Methods used to verify climate finance information Other methodological issues South-South cooperation, subsidies, green bonds Summary of key takeaways

4 UNFCCC Annex I Reporting Limited improvements to formats used by Annex II Parties to report on finance. CTF being adjusted through decision 9/CP.21 to enhance transparency and consistency of reporting Fields to explain definitions used for reporting on amounts by: climate-specific vs core/general, status, funding source, activity, financial instrument, type of support and sector Aligning status of support ( pledged, committed and provided ) with terms used by other international institutions ( committed and disbursed ) Challenges: Further improvements, particularly on reporting guidelines, needed

5 UNFCCC Non-Annex I Reporting None; guidelines for reporting finance received by developing countries Time periods for reporting vary widely; some countries report only finance received by national government; countries decide on what and how to report on individual basis. Therefore, not possible to accurately tabulate amounts non-annex I Parties report as support received by year Challenges: Developing countries face challenges in preparing information for BURs, such as inconsistent definitions and criteria, insufficient institutional arrangements, lack of capacity to collect information

6 Paris Agreement Elements relevant to the provision of transparent and consistent information, review and accounting featured in Article 13 (on transparency) and Article 9 (on finance) Provisions specific to reporting and accounting of financial resources include: Development of common modalities, procedures, guidelines for transparency of support (under APA). Due by 2018 Development of modalities for accounting of financial resources provided and mobilized (under SBSTA). Due by 2018 Ex-ante indicative quantitative and qualitative information reporting by Annex II Parties (Article 9.5) process to be launched by COP22

7 OECD-DAC Collecting project-level data from MDBs, to start partial reporting on private finance mobilised in 2017 Task team for updating Rio Marker system Adjust definition for adaptation to align with IPCC Emphasis on objective pursued (instead of on provider s reasons) Allow marking as principal focus on two of the three Conventions TOSSD to complement ODA Grant-equivalent form of reporting, include non-concessional financing Challenges: Further work needed on reporting in consistent currencies and exchange rates, reporting on activities Attribution of MDB climate finance to developed countries Termination of task team creates gap in efforts to harmonize methods across institutions

8 MDBs/IDFC Members MDBs proposed joint approach for tracking co-finance MDBs/IDFC adopted Common Principles for tracking mitigation and adaptation finance Intended to improve comparability of different sets of numbers, and to reduce double counting Voluntary; implementation is the responsibility of each institution Challenges: IDFC members yet to match transparency in reporting by MDBs lack reporting guidelines, insufficiently disaggregate CF flows, provide no common database of projects

9 Domestic Finance Some estimates available through country BURs and CPEIRs, as well as from national funds & development banks such as IDFC members Studies by independent organizations (such as GFLAC, ODI) provide estimates of climate finance shares of select countries budgets Challenge: No method to report domestic finance in consistent manner

10 Accounting Issues and Private Finance Attempts to determine how reporting can be improved; different approaches proposed to consider accounting issues from different perspectives Structuring key methodological questions: Research Collaborative Determining stakeholder preferences: WRI-CPI-ODI Studies attempting to derive initial estimates of climate finance flows, including amounts mobilised Climate Finance in and the USD 100 Billion Goal Getting to USD 100 Billion: Climate Finance Scenarios and Projections to 2020 Challenge: No plans to examine ways to improve systematic collection of private climate finance data

11 Review Mechanisms Expert review teams (ERTs) conducting international assessment and reviews (IARs) of BRs to assess provision of financial, technological and capacity-building support first cycle in 2015 International consultation and analysis (ICA) of BURs to also contribute towards improvements in quality Challenge: Reviews of transparency, consistency and completeness, but not of amounts; no methods on verifying flows of finance and reconciling reporting on finance provided and finance received

12 Others Limited transparency around South-South finance, no reporting obligations, limited data on bilateral flows Current development-oriented subsidies to agriculture, fossil fuels increase emissions and vulnerability No standardization of new instruments such as green bonds risks of greenwashing Investments in energy efficiency and adaptation difficult to distinguish from wider investments

13 THANK YOU