The Climate Change Near-Term Priority Flagship Programmes & Climate Funding

Gauteng Provincial Climate Change Forum June 24 2015

Climate Change and Air Quality

Presentation Structure

Climate Finance

Climate Change Flagship

Programmes

Climate Finance

Introduction• An effective climate change response requires significant financial

resources• Commitments to deliver climate finance are longstanding• Developed countries have committed to a goal of jointly mobilising 100

billion USD per year by 2020 • Global climate finance flows in 2013 topped USD 331 billion• Private actors remain the largest source of global climate finance, and

invested USD193 billion, or 58% of total flows in 2013• The cumulative gap between finance needed and finance delivered is

growing

Climate Finance Overview• The global climate finance architecture is complex• There are multiple sources, instruments, intermediaries and recipients involved in

providing or receiving climate finance– Public finance, where the source of finance is public treasuries and where allocation is overseen by

government functions. – Private climate finance is generated through a variety of means, including the carbon market,

routine investment decisions by companies, and triggered by national or international policies that govern the functioning of markets in different areas (e.g. energy markets)

• Climate finance typically is intermediated and can flow through several channels for various reasons

Climate Finance Sources & ActorsMultilateral

Development Finance Institutions

Institutional Investors

Private Investors (Commercial)

Government/National Public Institutions

National Sources

International Sources

Public Funds

Private Sector Funds

Climate Finance InstrumentsGrants

• Climate Funds

• Technical Assistance & Capacity Building

Debt Financing

• Concessional Loans

• Loans

Risk Mitigation

• Guarantees• Insurance

Equity

• Equity Investments

• Sovereign Wealth Funds

Most likely instruments for South Africa

Global Climate Finance ArchitectureUNFCCC Financial

Mechanisms

• Green Climate Fund• Adaptation Fund• Global

Environmental Facility

Non-UNFCCC Financial Mechanisms

• Multilateral Development Banks• World Bank Funds• African

Development Bank

• UN Agencies (UNDP, UNEP)

Bilateral Country Funds

• Germany - International Climate Initiative

• Norway -International Climate and Forests Initiative - ICFI

• UK - International Climate Fund - ICFNAMA Registry

UNFCCC Climate Funds• The Green Climate Fund the Green

Climate Fund (GCF) was designated as an operating entity of the Financial Mechanism of the UNFCCC accountable to the COP at COP 17

• The operation of the Financial Mechanism is partly entrusted to the Global Environment Facility (GEF)

• A large share of financial resources for climate change is mobilized through the GEF Trust Fund

Key Funds in Sub-Saharan Africa • A multitude of actors are involved in directing

climate finance to the region • Twenty climate funds are active in supporting

development and climate resilience • The World Bank administered Clean Technology

Fund (CTF) and the Least Developed Countries Fund (LDCF) are the biggest funding providers in the region

• The largest contribution is from the CTF which has approved a total of USD 466 million for four large renewable energy and energy efficiency projects, primarily in South Africa

Top 10 recipients countries by amount approved (2003-14)

Climate Finance Adaptation/Mitigation Split (Sub-Saharan Africa)

Adaptation ; 1028.23

Mitigation; 834.44

REDD; 334.57Multiple foci; 112.73

Key National Role Players

• UNFCCC Focal Point• UNFCCC NAMA Registry Focal Point• GEF and GCF Designated Authority• Flagship Programmes Steering

Committee reccommending NAMA Registry Submission and facilitating access to Climate Finance

• National Green Fund

• Accredited Entities: GEF and GCF (accreditation application underway)

The Climate Change Flagship Programmes

Setting the Context

National Climate Change Response Policy

• “A set of Near-term Priority Flagship Programmes will be implemented…These programmes will include both the scaling-up of existing climate change initiatives and new initiatives that are ready to come on-stream”

NDP Vision 2030

• 2014-2019: Planning, Piloting and Investing (Outcome 10 Delivery Agreement)

• Creation of an implementation framework• Unblocking regulatory constraints• Data collection, establishment of baseline

information, and indicators • Testing concepts and ideas to determine

if these can be scaled upClimate Change

Flagship Programmes

What are the Near-term Priority Flagship Programme?

• Front-runners in the transition to a lower carbon economy and resilient society

• Build on existing expertise and insight of key sectors which have extensive experience in implementing climate change relevant policies and measures

• Represent an important aspect of the practical implementation of the National Climate Change Response Policy and National Development Plan

• Understand and track over time the actual climate change impact of these programmes

• Catalyse sector-wide transformation

The Climate Change Flagship Programme Criteria

• Significant mitigation potential and/or potential to enhance resilience • Ambitious and transformative in design, scale and impact • Realise significant social, economic and environmental benefits • Contribute to achieving existing commitments • Utilise, demonstrate and/or test a set of policy interventions, fiscal

instruments and modes of implementation • Inter-linked components, developed and implemented in coordinated way• Capable of near-term implementation

Near-Term Priority Climate Change Flagship Programmes

The Waste Management Flagship Programme

The Transport Flagship Programme

The Climate Change Response Public Works Flagship Programme

The Adaptation Research Flagship Programme

The Energy Efficiency and Energy Demand Management Flagship

Programme

The Renewable Energy Flagship Programme

The Water Conservation and Demand Management Flagship

Programme

The Carbon Capture and Sequestration Flagship Programme

Priority areas

Climate Change Priority Sectors

Disaster Risk Reduction and Management

Health

Agriculture and Forestry

Biodiversity And Ecosystems

Human Settlements

Current Flagship Programme Areas Other Climate Change Response Areas

The Importance of Provincial & Local Governments

• Subnational and local governments are at the forefront of climate action

• 50% - 80% of adaptation and mitigation actions necessary to tackle climate change are or will be implemented at the subnational level of governance

• Major international initiatives are increasingly making room for non-national actors

• Vertical integration of all spheres of government is key

Emerging Themes• MRV is a pre-requisite for participation in climate finance• Direct access to key climate funds is growing– South Africa already has 2 accredited entities– Private sector accreditation also underway

• Programme preparation and support required – support from the Flagship Programmes /NAMA Focal

• Additional steps are needed to fully integrate sub-national players into national and global climate change response

Linkages between Climate Finance & the Flagship Programmes

Climate Finance Climate Change Flagship Programmes

• Scale• Transformative

• Institutional Arrangements• MRV

Reitumetse MolotsoaneClimate Change Flagship Programmesrmolotsoane@environment.gov.za