European Capacity Building Initiative
Policy Briefs and Notes
This OCP/ecbi submission to the Standing Committee on Finance summarizes the most recent developments regarding the relations between the Adaptation Fund and the Green Climate Fund and proposes that with regard to this particular relationship, the SCF should focus on how to make best use of existing complementarities between the two funds.
The 'institutionalized' group of Friends of the Chair is composed of delegates trying to influence the Chairman and each other about the way forward, reflecting national positions, and trying to hammer out compromises.
In the preparations for the Copenhagen COP-15 and in the aftermath of the confusing negotiations in Bella Centre there have been many references to the concept of Friends of the Chair. The 'institutionalized' group of Friends of the Chair is composed of delegates trying to influence the Chairman and each other about the way forward, reflecting national positions, and trying to hammer out compromises. This is a long-haul effort which is different from the idea of appointing Friends of the Chair as part of the end game of a negotiation: in this latter case it is ideally a method for the Chairman to get the most important actors to agree and clinch a deal that will lead to final agreement in the plenary.
The Art of Negotiation in the Rio process and climate negotiations
The Green Climate Fund (GCF) Board is in the process of considering "additional modalities that further enhance direct access". A devolved and decentralized access modality has been proposed as an alternative to the more traditional model, where detailed project approval is carried out at the multilateral level. This ecbi Policy Brief by Benito Müller and William Pizer explains the relation between "enhanced direct access" and "programmatic approaches," and addresses certain concerns raised about this decentralized/devolved access model, using seven case studies to illustrate current practices that could provide ideas and insights about how the GCF might design its own approach. The case studies are focused around four questions:
a. How does the funding model generally work, in terms of disbursing funds?
b. Who decides what? What decisions are taken by the governing funding body and what decisions are devolved and to whom?
c. How does this funding model ensure the governing body’s objectives are met, and how does it ensure that the various fiduciary standards and safeguards are satisfied?
d. How is the funding level for a particular programme determined?
The Green Climate Fund (GCF) Board is in the process of considering "additional modalities that further enhance direct access". A devolved and decentralized access modality has been proposed as an alternative to the more traditional model, where detailed project approval is carried out at the multilateral level. This ecbi Policy Brief by Benito Müller and William Pizer explains the relation between "enhanced direct access" and "programmatic approaches," and addresses certain concerns raised about this decentralized/devolved access model, using seven case studies to illustrate current practices that could provide ideas and insights about how the GCF might design its own approach. The case studies are focused around four questions:
a. How does the funding model generally work, in terms of disbursing funds?
b. Who decides what? What decisions are taken by the governing funding body and what decisions are devolved and to whom?
c. How does this funding model ensure the governing body’s objectives are met, and how does it ensure that the various fiduciary standards and safeguards are satisfied?
d. How is the funding level for a particular programme determined?
Having been established more than a decade ago to address the urgent and immediate needs of the Least Developed Countries (LDCs) especially vulnerable to the impact of climate change, the Least Developed Countries Fund for Climate Change (LDCF) still struggles to obtain adequate and predictable funding. The Global Environment Facility, the operating entity of the LDCF, has been unable to program LDCF resources at the level of around US$200 million per year, as proposed in the Programming Strategy for the LDCF.
More generally, this Think Piece by Benito Müller argues, a success at the UN Climate change summit Paris in December will require a significant finance package which is not ad hoc, but rather provides genuine longer-term predictability. In addition to using the proceeds of new international market mechanisms, we think there is also a need to look at innovative sources at the national and sub-national level.
The Adaptation Fund After Marrakech. OCP/ecbi Discussion Note
This paper provides useful background in the forthcoming discussions and negotiations of the UNFCCC with respect to devolution of funding decisions.
The future of the global climate change negotiations hinges on an eventual UNFCCC globally embraced decision on climate change funding support for developing countries. Leading up to Copenhagen, some positive signs on funding emerged. However, these are in danger of turning into empty promises if issues of governance on finance are not resolved. This paper provides useful background in the forthcoming discussions and negotiations of the UNFCCC. Part of a wider series of ecbi and OIES publications on the Reformed Finance Mechanism, most specifically on the case for devolution of funding decisions to the national level.
Their role in the transition to a new paradigm of global cooperation on climate change
Speaking at a dinner hosted by the Indonesian government during the recent Green Climate Fund Board meeting in Bali, Mr. Bambang Brodjonegoro, the Vice Minister of Finance, stated:
‘During this Board Meeting in Bali, Indonesia announces its pledge to contribute to the Fund. Indonesia also stands ready if all countries are required to contribute for the capital base of the Fund. I am hoping this contribution can support the Fund’s activities in helping developing countries to prepare and finance emissions reduction and adaptation programs, including capacity building programs under the South-South Cooperation that replicate the success stories of climate change programmes in other countries. I do hope other more capable countries can consider making pledges, or adding to their pledges, or making an indication of their pledges during this Bali meeting.’
The significance of this announcement should not be underestimated. It signals the readiness of a major developing country to provide voluntary support for South-South Cooperation on climate change through the Green Climate Fund (GCF).
Speaking at a dinner hosted by the Indonesian government during the recent Green Climate Fund Board meeting in Bali, Mr. Bambang Brodjonegoro, the Vice Minister of Finance, stated:
‘During this Board Meeting in Bali, Indonesia announces its pledge to contribute to the Fund. Indonesia also stands ready if all countries are required to contribute for the capital base of the Fund. I am hoping this contribution can support the Fund’s activities in helping developing countries to prepare and finance emissions reduction and adaptation programs, including capacity building programs under the South-South Cooperation that replicate the success stories of climate change programmes in other countries. I do hope other more capable countries can consider making pledges, or adding to their pledges, or making an indication of their pledges during this Bali meeting.’
The significance of this announcement should not be underestimated. It signals the readiness of a major developing country to provide voluntary support for South-South Cooperation on climate change through the Green Climate Fund (GCF).
A GCF Operated Southern Solidarity Fund
A call for Europe to demonstrate renewed leadership in the international climate change regime
