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GEF 4 Climate Change Strategy and Programs

GEF 4 Climate Change Strategy and Programs. May 14, 2007 Richard Hosier. Goal Statement. “ The GEF will finance agreed and eligible enabling, mitigation , and adaptation activities in eligible recipient countries” (1995, GEF Operational Strategy, p 31). .

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GEF 4 Climate Change Strategy and Programs

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  1. GEF 4 Climate Change Strategy and Programs May 14, 2007 Richard Hosier

  2. Goal Statement “The GEF will finance agreed and eligible enabling, mitigation, and adaptation activities in eligible recipient countries” (1995, GEF Operational Strategy, p 31).

  3. Climate Change Operational Programs • Removing barriers to Energy Efficiency (OP5) • Removing barriers to Renewable Energy (OP6) • Reducing the Long-term Costs of Low GHG Emitting Energy Technologies (OP7) • Sustainable Transport (OP11)

  4. What is GEF’s Role or Comparative Advantage? • Market Transformation

  5. Climate Change Mitigation • Mission of GEF in CC Mitigation: To develop and transform the markets for energy and mobility in developing countries so that they will be able to grow and operate efficiently toward a less carbon-intensive path

  6. GEF-4 Strategic Objectives: Energy Efficiency

  7. GEF-4 Strategic Objectives: Renewables, Low GHG, & Transport

  8. GEF-4 Replenishment August 2006 • Covers Period FY 2007-2010 • Provides Total US$3.13 b • Climate Change Focal Area Allocation US$1 b ($960m) • Largest GEF Replenishment to Date

  9. GEF-4 Policy Recommendations • In CC & BD, Resource Allocation Framework Adopted • 75% of Funds to largest ~30 emitters • $140m to 110 group countries ($1m) • $45m regional/global set aside • Be reviewed after 2 years • Other focal areas to adopt RAF for GEF-5 • Develop private sector strategy • Focal area strategies to be reviewed and revised— FOCUS for IMPACT

  10. Strategy Revision Process • Formation of Technical Advisory Group • STAP, FCCC, 3 nominated Experts • Series of virtual meetings (7th in progress) • Make Recommendations to SAG • Formation of Strategy Advisory Group • Sr. Experts, plus one member of each TAG • Chaired by GEF CEO • Focuses on getting strategy correct for GEF as a whole • Strategies Being Revised, Reviewed for Presentation to June Council

  11. Starting Point for Strategy Review Process • Energy Efficient Buildings and Appliances (OP5) • Industrial Energy Efficiency (OP5) • Rehabilitation of Power Plants (OP5) • On-Grid Renewable Energy (OP6) • Off-Grid Renewable Energy (OP6) • Emerging Low-GHG Emitting Electricity Generating Technologies (OP7) • Market Transformation for Sustainable Mobility (OP11)

  12. Issues requiring Re-Consideration: Rehabilitation of Power Plants • Focusing on existing coal plants and technologies, not new technologies • World Bank CEIF estimates needs for Clean Coal > $10b (new technology) • With $200m available funds, cannot do justice to issue • Will fund existing pipeline projects, but not make a focus for GEF-4 • Continue to work with WB to obtain more funding for CEIF

  13. Issues requiring Re-Consideration: Off-grid Renewable Energy • From 1991-2004, GEF had supported off-grid RE projects—largely PV • Markets never took off as anticipated (few exceptions) • GHG benefits minimal • Energy access relates more to development agenda, not CC agenda • GEF initiated support, lessons learned—for now can pass the ball to development assistance • New era—intensification of concern about GHG emissions

  14. Issues requiring Re-Consideration: Emerging Low-GHG Emitting Energy Technologies (OP7) • Experience has been poor • Locking up large sums of money for projects that are not implemented • Imposing extra costs and risks on developing country energy systems • Very difficult to transfer unproven, pre-commercial technologies • GEF put in place of picking technological winners • Requires incremental investment support—if GEF were 10X as big • Conclusion: For GEF-4 not a priority • Periscope? New, new thing?

  15. Issues requiring Re-Consideration: Need for Special Attention to Modern Biomass • Modernizing biomass may have elements of both RE & EE • As part of GEF approach to Forests, CC global benefits derive from biomass energy • Need for safeguards if new, dedicated biomass/biofuel fuel supplies are to be used (not just waste streams) • Easier link to Land Degradation—require info re carbon in other focal areas

  16. GEF-4 Strategic Programs & Outcomes

  17. Intensified Focus on Reducing Emissions • RAF Focuses GEF resources in high emitting countries • Measurement of GHG emission avoidance • IEA Alternative Scenario, emissions reductions come from • Fossil-fuel efficiency, especially transport (36%) • Electricity end-use efficiency (29%) • Power sector efficiency (13%) • Increased use of renewables (12%)

  18. New GEF Role: “Ban the Bulb” or Phase out the Incandescent Light Bulb • Incandescent technology unchanged in 125 years • Efficiency can be improved by 4-5 times • Final technology unclear—performance standards (w/lm) • Britain, California, Australia, & others taking initiative • GEF’s role • IFC/GEF early work on CFL’s • UNEP/UNDP collaborating on global initiative • GEF Public/Private Partnership speaking with manufacturers • GEF bring in developing countries thru policy • CDM can replicate—OSRAM has CFL methodology • CAN UNFCCC get behind it and help create pressure to do something?

  19. Climate Change Adaptation • Mission of GEF in CC Adaptation:To assist developing countries in piloting how to address the adverse impacts of climate change, including variability, by supporting projects that: identify and implement suitable adaptation measures; build adaptive capacity; and reduce vulnerability and increase ecosystem resilience to the adverse impacts of climate change, including variability

  20. GEF Strategic Pilot on Adaptation (SPA) • Established by GEF Council in response to Decision 7/CP.7 • Approach: Supporting the additional costs of projects that build capacity to implement adaptation measures that increase resilience to the adverse impacts of climate change in all focal areas in which GEF operations • Set aside $50m from CC Focal Area to pilot concrete adaptation activities • $27m allocated during GEF3 • $23m remaining for GEF4 (from regional set aside)

  21. Strategic objective and Outcomes: Adaptation

  22. Adaptation within GEF Trust Fund: Next Steps • Mainstreaming adaptation into GEF focal areas • Development of adaptation screening tools • Tools to be developed for all focal areas • All projects will have to screen for vulnerability and take action to modify design to protect against climate change • Evaluation of the SPA • Council to consider/decide on next steps

  23. Climate Change Adaptation: Avenues of Support • Special Climate Change Fund • Adaptation $60m and technology transfer $5m • Allocations of $12m to date • Pipeline commitments of additional $56m • Pent-up demand adaptation for dev’t • Entertaining more pledges in June • Least Developed Countries Fund • NAPA’s and urgent and immediate adaptation needs of LDC’s • Current $120m total pledged • $12m to NAPA’s • One concept (Bhutan GLOF) in pipeline

  24. Conclusions • CC Focal area is beginning work on 2 Fronts • In mitigation arena, focusing support on energy efficiency, renewables, biomass, & transport • In adaptation arena, beginning new work integrating cc adaptation needs into GEF focal areas and development

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