International Climate Financing: Is Bangladesh Ready?

1. Green Climate Fund (GCF) & Country Ownership International Climate Financing: Is Bangladesh Ready? 07 October 2013 www.equitybd.org

2. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Why the GCF? - Counter financial channel of CIF (Climate Investment Fund) of World Bank. - Public financing through developed country parties for CVCs - UN process and accentuate the priorities of CVCs need in view of human rights

3. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Now the GCF The model or clone of CIF? - Controversial model of Trusteeship (Includes all its arms IBRD, IDA and IFC as Financial Intermediaries) - Focus Mitigation (Carbon market expansion) than Adaptation - It is against the sprit of LDCs and CVCs interest & advocacy.

4. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Role of WB !!! - Interim Trustee or Permanent? - Worried about serving LDCs interest, (because of business approach with GCF)

5. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Business Mdel Frame work Result Areas and performance indicators Core objective of GCF The Fund will contribute to the achievement of the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC). In the context of sustainable development, the Fund will promote the paradigm shift towards low-emission and climate-resilient development pathway (Paragraph 02)

6. Green Climate Fund & Country Ownership: Is Bangladesh Ready? A few lacking observed: - Not define the Sustainable Development means - Not define the paradigm shift. There are lot of impediments (Trade & IPR is main, population & migration) exist those need to be resolve beyond GCF. - Primary plan of finance is questionable because very less (maximum 20%) for adaptation - Only Effective CBA (Community Base Adaptation). No Gross National Adaptation approach? - Performance Indicator: Only two sector identified (Transport & Carbon reducing project) - Question also on the performance indicator, because there only Performance Indicator (PI) is early warning system

7. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We demand - Must be respect the national priority issue, selected by country, considering there own scenario - Ensure additional, adequate and predictable financial resources to climate vulnerable countries - Elaborate must the PI (Based on the scenario of country context) on the sector like sheltering development and other infrastructure development those really be a part of adaptation.

8. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Country ownership Paragraph 3: “The Fund will pursue a country-driven approach and promote and strengthen engagement at the country level through effective involvement of relevant institutions and stakeholders”. Paragraph 31: “The Fund will provide simplified and improved access to funding, including direct access, basing its activities on a country-driven approach and will encourage the involvement of relevant stakeholders, including vulnerable groups addressing gender aspects”

9. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Why the Financial Intermediaries and politics behind? - Local Consultative Group (LCG) is one of the causes of violating the country priority. - Latest ADB experience? (e.g. Narail Water management project, Small Scale Water management project etc) - Dubious investment by private sectors

10. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We demand - Define broader definition and the mechanism of inclusive participation of stakeholders’ in Country Ownership model through GCF as well as in country level based on Paris & Accra Declaration & Aid Effectiveness. - Country ownership is not mere govt. or bureaucratic ownership. - Country Ownership should include opposition, media, local govt. CSO, affected community and gender dimension.

11. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Access modalities We opose the Paragraph 45 and 48 Paragraph 45: “Access to Fund resources will be through national, regional and international implementing entities accredited by the Board. Recipient countries will determine the mode of access and both modalities can be used simultaneously.” Paragraph 48: “Recipient countries will also be able to access the Fund through accredited international entities, including United Nations agencies, multilateral development banks, international financial institutions and regional institutions.”

12. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We demand: - Public finance through developed country parties - Access directly to fund through NDA (National Designated Authority). No 3rd party or Financial Intermediaries. - NDA also will be selected through national process of inclusive participation, democratic and transparent way. We don’t want “Rubber stamp NDA” prescribed by the IFIs.

13. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Financial instruments; - There are four basic instruments - Grants - Concessional loans - Guarantees and - Equity investments. - In fact, there are no hope for direct investment in the program except a few issues like; incremental cost of climate change investments, Technical assistance, feasibility study etc.

14. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Latest progress of GCF - Officially set to open for business in 2014 - A Director appointed for secretariat - Policy and management structure - Financial (pledge US$ 9.02 million, Administrative expense already 8.43 million and only 0.59 million yet to receive for developed country parties)

15. Green Climate Fund & Country Ownership: Is Bangladesh Ready? What we expect from GCF ? - GCF must acknowledge the historical responsibility - So climate debt & reparation is the first - No so called paradigm shift approach, rather “Dealing with the present and future impacts of climate change through a mechanism as “Adaptation” - Then we go to the Shift to Sustainable Systems and “Mitigation”

16. Green Climate Fund & Country Ownership: Is Bangladesh Ready? What we expect from GCF ? - Do no harm (The instruments and mechanisms for raising funds should not lead to further impoverishment, disempowerment, displacement and discrimination of marginalized people and communities). - Country Ownership (Through ensuring the right to sovereignty and self-determination process of countries and their people)

17. Green Climate Fund & Country Ownership: Is Bangladesh Ready? What we expect from GCF ? - Source of finance must be public and must be flowed from developed to LDCs & CVCs) - Adequate and Additional (Fund will be additional of ODA and must 50% for Adaptation) - No 3rd parties (Financial Intermediaries)

18. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Are we ready getting benefit from GCF ? Our struggle in Climate Financing since 2008 - London conference on MDTF, Protesting WB manager ship - Demand for CSO participation in BCCSAP - Country ownership and people sovereignty in BCCTF and BCCRF - Demand for bottom up selection process, transparent and participatory practice in BCCTF and BCCRF

19. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Our struggle in Climate Financing since 2010 - 2103 Integration of climate adaptation in national budget - BCCSAP is a stand alone plan in fact and constitutionally immobilized accumulating necessary resource. - Combination of micro planning (e.g. NGO projects, embankment repair & maintenance etc) and less integrated with national plan. - MoF& E has little power to effective coordination in national planning process and monitoring on other ministries.

20. Green Climate Fund & Country Ownership: Is Bangladesh Ready? Poor relevancies of government climate budget and expenditure

21. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We expect in country level targeting the GCF - Cane be initiated National Climate Commission/Council. - Compliance of GCF playing a role as NDA (National Designated Authority) with sufficient authority to; - Ensure climate adaptation all ministries and also in case of different projects - Ensure necessary resource mobilization

22. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We expect in country level targeting the GCF We also need to improve a transparent, accountable fund management system - Inclusive participation in project designing - NGO selection should be based on governance criteria first - Orient them to interact with affected community and thereby to prepare project

23. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We expect in country level targeting the GCF We understand and expect the transparency process as - The right to access - Automatic and mass disclosure - Access to decision making - The right to request information - Effective Appeals procedures - Develop whistleblower approach & policy - Promotion of freedom of information - Regular review & monitoring

24. Green Climate Fund & Country Ownership: Is Bangladesh Ready? We expect in country level targeting the GCF - Project selection process should consider; - Corruption Risk Assessment - Information Disclosure Policy - Complain Response Mechanism - Participation index in all level

25. We want such a Green world that socially just, redistributive and responsible... not foster a new generation of “Carbon Merchandisers” Thank You