Transcript Focal Area and Cross Cutting Strategies – Climate Change GEF Expanded Constituency Workshop March 22 – 24, 2011 Kyiv, Ukraine.

Focal Area and Cross Cutting
Strategies – Climate Change
GEF Expanded Constituency Workshop
March 22 – 24, 2011
Kyiv, Ukraine
Mandate of the GEF
• An operating entity of the financial mechanism of the UNFCCC
• The objective of the UNFCCC is "to achieve [...] stabilization of
greenhouse gas concentrations in the atmosphere at a level
that would prevent dangerous anthropogenic interference with
the climate system. Such a level should be achieved within a
time frame sufficient to allow ecosystems to adapt naturally to
climate change, to ensure that food production is not
threatened and to enable economic development to proceed in
a sustainable manner" (from the text of the UNFCCC, Art.2)
Financing Climate Change under
the GEF Trust Fund
• GEF Trust Fund invested in about $3 billion in
over 150 countries
– Mitigation
–Adaptation
–Technology Needs Assessments
– National Communications to the UNFCCC
• Largest multilateral public-sector technology
transfer mechanism
– Financed demonstration, deployment,
diffusion, and transfer of environmentally
sound technologies
Roles of the GEF in Climate Change
Financing
• Catalytic
– Leveraged more than $18 billion in cofinancing on its $3 billion of investments
• Innovative
– Leader in financing new, emerging low-carbon
technologies (FCB, CSP, etc.)
– Pioneer in supporting market-based
approaches (e.g., ESCOs) and innovative
financial instruments
• Cost-effective
– More than 1 billion tonnes of greenhouse gas
emissions avoided, equivalent to nearly 4
percent of annual human emissions
COP Mandate to GEF on Technology
Transfer
• Poznan Strategic Program on Technology
Transfer (COP decision 2/CP.14)
– Support for Technology Needs Assessments
– Support for Technology Transfer Pilot
Projects
– Dissemination of successfully demonstrated
technologies and know-how
• GEF-5 replenishment
– $4.3 billion total (six focal areas)
– $1.4 billion for climate change mitigation
Guiding Principles for GEF-5 Strategy
• Responsiveness to Convention guidance
• Consideration of national circumstances of recipient countries
• Cost-effectiveness in achieving global environmental benefits
Strategic Objectives for GEF-5
• SO1: Demonstration, deployment, and transfer of
innovative low-carbon technologies
• SO2: Market transformation for energy efficiency in
industry and the building sector
• SO3: Investment in renewable energy technologies
• SO4: Energy efficient, low-carbon transport and
urban systems
• SO5: Conservation and enhancement of carbon
stocks through sustainable management of land use
and forestry
• SO6: Enabling activities and capacity building
SO1: Demonstration, deployment, and transfer
of innovative low-carbon technologies
• Innovative technologies are targeted, but also priority technologies
that are commercially available but have not been adopted in their
particular markets.
• Technologies at the diffusion stage or wide-scale dissemination of
commercial technologies is not supported under this objective
• Projects should clearly identify the technology source and the target
for the transfer, the scope and the mechanism of technology cooperation and transfer, and the market potential and strategy for
replication.
• TA for creating enabling policy environment for tech transfer ,
capacity building, establishment of tech transfer mechanisms, N-S
and S-S cooperation, purchase of licenses, pilot investments,
development of local capacity to adapt exogenous technologies to
local conditions and technology integration
SO2: Market transformation for energy
efficiency in industry and the building sector
• Industrial sector: energy efficient technologies and practices; focus
on SMEs
• Buildings: residential, commercial, and public buildings, both new
and retrofitting; building envelope and energy-using systems are
covered
• solar energy and shallow ground thermal capacity for heating and
cooling
• May support phase-out of HCFCs used in industry and buildings
• Combination of TA on policy, regulation, and capacity building;
financing mechanisms; and pilots
SO3: Investment in renewable energy
technologies
• On-grid renewable energy programs
• Decentralized production of electric power and the use of
indigenous renewable sources
• Enhancement of technical capacities of SMEs to provide installation,
operation, and maintenance services for RETs.
• Methane recovery from biomass wastes for power generation or
heat production.
• Sustainable production of biomass for biofuels (appropriate
conditions, including safeguard policies, should apply)
• Combination of TA for policy and regulatory support, capacity
building, and establishing financing mechanisms for investments.
• GEF direct investment is particularly applicable in small, poor
developing countries, and LDCs
SO4: Energy efficient, low-carbon transport
and urban systems
• The focus will remain on transport (STAP Advisory Document)
• But comprehensive interventions through integration of transport,
energy, water, and housing sector activities will be encouraged
• Address not only climate change mitigation but also local air
pollution, traffic congestion, etc.
• TA in transport and urban planning, development of innovative
financing mechanisms, awareness campaigns, and investments in
high-performance technologies
• Greater attention to measuring and quantifying GEB, which will
provide a basis for choosing the best sets of interventions to deliver
maximum global and local benefits (GEF-STAP manual for calculating
GHG benefits)
SO5: Conservation and enhancement of
carbon stocks through sustainable
management of land use and forestry
• Enhance, restore and manage carbon stocks and storage on forest and nonforest land (including peatland)
• Reduce emissions of carbon stocks
• Activities include: good practice demonstrations, establishment of national C
monitoring systems, strengthen policies and institutions, etc.
• Linked to Sustainable Forest Management/ REDD+ incentive mechanism
– Goal is to achieve multiple environmental benefits from forest
management/conservation
– All SFM projects must show carbon benefits
– Multi-focal: include at least 2 focal areas from biodiversity, land degradation,
climate change
– Incentive funds from outside STAR allocation; 1 dollar for every 3 dollars from STAR
SO6: Enabling activities and capacity building
• Preparation of National Communications by NAI Parties
• Preparation and updating of TNAs especially for countries that did not
receive support for TNAs during GEF-4, in accordance with Convention
guidance
• Subject to future COP guidance, the GEF may finance activities to support
capacity building activities, implementation of Article 6 of the Convention
on education, training, and public awareness, as well as other relevant
enabling and capacity building activities as requested by the COP.
• The GEF can play a role in the emerging carbon markets, and options to be
explored may include:
– capacity building to help create enabling legal and regulatory environments;
– demonstration of technologies
– partial risk guarantees
Thank you