Transcript Title

1. Commitments of the states under the UNFCCC 2. International climate change financial mechanisms

© 2006 UNDP. All Rights Reserved Worldwide.

Proprietary and Confidential. Not For Distribution Without Prior Written Permission.

Daniela Stoycheva – UNDP BRC climate change policy advisor

Climate Change Fundamentals and Local Action

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September 19-22, 2011

Commitments under the UNFCCC

The ultimate objective:

to achieve stabilization of GHG concentrations in the atmosphere at a level that would prevent dangerous interference with the climate system , within a time frame sufficient to allow ecosystems to adapt naturally to CC, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner

Actions

- formulate, implement, publish and regularly update national and, where appropriate, regional programmes containing measures to mitigate CC, and measures to facilitate adequate adaptation to CC.

Cooperation.

Reporting -

GHG inventories and National Communication The developed country Parties shall provide new and additional

financial resources

to developing country Parties 1

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Commitments under the Kyoto Protocol

Objective:

The Parties included in Annex I - reducing their overall emissions of GHG gases by at least 5 % below 1990 levels in the commitment period 2008 to 2012 . Annex B

Actions:

Implement and/or further elaborate mitigation policies and measures in accordance with their national circumstances (EITs – may use other base year)

Cooperate

to enhance the effectiveness and share experience

Reporting:

National reporting system

Opportunities:

emissions trading mechanisms (flexible mechanisms) 2

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Subsequent major agreements

Negotiating a comprehensive framework for enhanced action on CC

Bali Action Plan

– 2007 - “two-track” approach; AWGs; building blocks • A shared vision for long-term cooperative action • Enhanced national and international action on mitigation developing countries, LEDS of cc, incl. NAMAs for • Enhanced action on adaptation • Enhanced action on technology development and transfer to support action on M&A • Enhanced action on financial resources to support above actions

Copenhagen Accords

– 2009 - political declaration

Cancun Agreement

2010 - laying the foundation to tackle CC through a new post-2012 regime; a number of institutional mechanisms were established, in place WGs to develop the details of operationalization of the mechanisms to be agreed in Durban, incl. Green Climate Fund. SCP?

Durban COP 17

– 2011 – a global legally binding agreement?

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New green growth paradigm

• The World’s population is growing quickly

( it is expected to expand from 7 billion today to an estimated 9 billion by 2050)

• This will be accompanied by growth in demand for natural resources, energy, food, water and other commodities • Need for a

new green growth paradigm

that supports more sustainable local and global livelihoods and economies •

Climate change

adds urgency to this transformation

(emission reduction pledges under the Cancun Agreements reach only 60% of what is required to hold the increase in global temperature below 2 ° C)

• Emissions would need to be 50% below 1990 levels in 2050, and be zero or negative by 2100 4

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Low-emission Development Strategies

• Interest to explore pathways for LED growing rapidly. > 90 countries registered their NAMAs with the UNFCCC (51 developing countries, 25% of which are low-income countries). RBEC – regional project

: Kazakhstan, Moldova, Uzbekistan, Turkmenistan

• Numerous agencies, donors, academic institutions and private consultants have begun to undertake research and provide analytical and advisory services and capacity building on LED • Low emissions development policies are one component of SD or Green Growth, which spans a larger set of environmental and social policies, including climate resilience and disaster risk reduction, improvements in natural asset management, biodiversity and water and air pollution management. 5

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Finance Needs to achieve transition are huge, but possible to achieve

1. 10.5 trillion for low emission energy infrastructure by 2030; 4 – 109 billion/year for adaptation; 60 billion/year in incremental cost funding by 2020 for mitigation actions needed for 20 C pathways; Less than fossil fuel subsidies: 312 billion in 2009 2. Substantial upfront costs, but attractive commercial returns – energy bills reduced by over 8.6 trillion; savings from air pollution 100 billion 3. IEA: the global additional investment needed in 2020 will come from: 40% households, 40% businesses, 20% governments 4. 200 billion /year for ecosystem and climate finance committed

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Proliferation of sources of climate change finance

Global Environment Trust Funds

• GEF Trust Fund •SCCF, LDCF, Adaptation Fund

Multi/bilateral funds

•WB: CIF •Germany ICI

New UNFCCC Related Funds

•Fast Start funding •Green Climate Fund

Market based & Innovative Sources of Financing

•Carbon Finance (CDM/JI, VCM, sectoral credit + financing) •Insurance + other risk financing

$6 - 9 billion $15 billion $280 billion $75-150 billion 7

Key Environmental Finance Challenges faced by developing countries

Access

new and innovative sources for climate and ecosystem finance • Promote

synergies

ecosystem finance between development, climate and • Use limited sources of public finance to

catalyze

private flows much larger 8

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Thank you for your attention!

[email protected]

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