Focal Area and Cross Cutting Strategies – Climate Change

1. Focal Area and Cross Cutting Strategies – Climate Change • GEF Expanded Constituency Workshop • April 5 – 7, 2011 • Da Lat, Vietnam

2. 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)

3. Financing Climate Change • GEF Trust Fund invested about $3 billion in over 150 countries since 1991 • 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

4. Role of GEF in Climate Change Financing (1) • Market Transformation • Barrier Removal • Pre-investment • TA • Technology Specific • Measuring GHG reductions Not: • Research • Establishment of research and policy centers • Strategic climate plans and strategies

5. Role of GEF in Climate Change Financing (2) • Catalytic • Leveraged more than $18 billion in co-financing 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

6. 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

7. Guiding Principles for GEF-5 Strategy • Responsiveness to Convention guidance • Consideration of national circumstances of recipient countries • Cost-effectiveness in achieving global environmental benefits

8. 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 (NatComs) and capacity building

9. 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 co-operation and transfer, and the market potential and strategy for replication. • TA for creating enabling policy environment for tech transfer , capacity building, N-S and S-S cooperation, purchase of licenses, pilot investments, development of local capacity to adapt exogenous technologies to local conditions

10. 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

11. SO3: Investment in renewable energy technologies • On-gridrenewable energy programs • Decentralizedproduction 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

12. 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)

13. 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 non-forest land (including peatlands) • 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

14. 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

15. Questions?