Norwegian Climate policies and priorities - response

1. Hans Olav Ibrekk Policy Director - Norad Norwegian Climate policies and priorities - response

2. Ambitious binding climate agreement – max 2-degree increase, • Comprehensive inclusion of GHGs from reduced deforestation • Financing mechanism: International auctioning of a part of the assigned amount units (AAU) (credits) • Inclusion of emissions from international maritime transport – regulated by the International Maritime Organization (IMO) • Incentives for development and diffusion of carbon capture and storage (CCS) • 30% reduction in 2020 compared to 1990 (40%) • Climate neutral in 2050 (2030) • Development cooperation: • Clean energy, REDD, adaptation Norwegian positions

4. Budget 11: Clean energy – a winner! • Two major strands: • Clean Energy for Development+: • Access to energy the primary focus • Continue and expand our current clean energy portfolio: • Focus on countries (Nepal, Mozambique, Uganda etc.) • Fund India? • Norfund – PPPs – new fund • Bilateral focus • Additional resources in 2011 • New organizational structure is being discussed. Increased support to cleanenergy

5. ENERGY+: • International climate/energy finance initiative – political initiative • Inspired by our REDD program – sectoral approach – three phases: • Planning – NAMA – climate and energy • Reform – energy, business environment • Result-based support – • International partnership to scale up clean energy investments primarily from the private sector • Increase access and reduce emissions • Technology development and achieve grid parity for renewable energy (go to scale!) • Result-based approach – access and carbon • Will be fed into climate negotiations at an appropriate point • Piloting in 2-3 countries (led by Norway) • Dedicated project team • Energy for all – Conference 10-11 October 2011 - Oslo Increased support to cleanenergy

7. Background Objectives Background and main objectives of Norway’s International Climate and Forest Initiative Launched at COP13 at Bali in December 2007, established 2008 Project Team at the Ministry of Environment – cooperates with the Norwegian Ministry of Foreign Affairs, other relevant ministries and Norad Aims to contribute to reduced global warming by reducing emissions from deforestation and forest degradation (REDD+) in developing countries Promoting sustainable development and poverty reduction is an overriding goal for the initiative, as with all Norwegian foreign development policy To work towards the inclusion of emissions from deforestation and forest degradation in a new international climate regime To take early action to achieve cost-effective and verifiable reductions in greenhouse gas emissions To promote the conservation of natural forests to maintain their carbon storage capacity SOURCE: The Norwegian Ministry of Environment

8. Multilateral channels. • The UN REDD Programme • The World Bank (FCPF, FIP) • AfDB - CBFF • Bilateral programmes. • Brazil, Tanzania, Guyana, Indonesia • UN REDD countries • NGOs and “think-tanks” Channels and partners

10. The REDD+ Partnership: Established in Oslo May 27th 2010 Why a global climate and forest partnership? • An action track to supplement the UNFCCC negotiation track! • More than 70 countries signed up • Around 4.5 billion USD pledged • Agreed principles • Coordination of actions, financing and results • Learn lessons and share best practice • Secretarial services by Forest Carbon Partnership Facility • and the UN-REDD Programme

11. Abatementpotential

12. Adaptation and ClimateProofing

13. Minister Solheim: Norway to be world champion in adaptation (without money!) • Working Group established to propose an understanding of adaptation and a plan on how to increase emphasis on adaptation in development cooperation (MFA, MoE, Norad) • Report finalized in 2010. • Proposes measures and channels for engagement related to • Capacity building, research and planning • Food security and agriculture (focus on Africa) • Water resource management (Southern Africa and Himalaya) • Prevention of climate related disasters (DRR) • Climate proofing of development cooperation (multilateral as well) • Increased budgets – key priority towards Durban. Developing a Strategy on adaptation

14. Climate “proofing” - Rationale • Development cooperation programs and projects are designed with explicit or implicit assumptions about the climate in which they will function: • Climate a cross-cutting issue • Assessed in all development cooperation. • Climate proofing of development cooperation: • Nepal, Angola, South Africa, Mozambique, Uganda, • Zambia, India, Etiophia, Nicaragua • Extensive training • Challenge: turnover! • Norad has prepared a guide: • “Assessment of Environmental and Social Sustainability and Climate Change Risk Management (‘Climate Proofing’).

15. Development policy – climate change may reverse development and increase poverty, vulnerability increasing– climate smart development Security – risk of conflicts because of limited access to food and clean water, migration (climate refugees) Health – health systems must prepare for the new challenges resulting from climate change (heat waves, malaria, infections) Waterand sanitation - access to clean water limited many places, great challenges for large cities in the future (slums etc) Energy– energy efficiency and renewable energy, energy security Trade – punishment for countries outside the climate regime? Agriculture–development of climate robust crops, food security Infrastructure– long-term planning in a hostile climate; flood control, roads, cables, tubes etc Millenium Development Goals – climate change makes all the goals harder to reach (poverty, hunger, health, sustainable development, clean water…) and will increase costs – LSE estimates about 40% increase. Climate changegoeswaybeyondenvironment policy

16. Integrated policy for Norway’s efforts to prevent humanitarian crises: • Improve coordination between short and long-term assistance, with particular focus on the reconstruction phase, cutting across budget lines and divisions of responsibility. • Long-term strategic partnerships with the clear aim of strengthening the resilience of local communities and vulnerable groups to humanitarian crises. • Increase understanding of the importance of risk reduction. • Focus countries: Cuba, Uganda, China, Vietnam, Bangladesh

17. St. meld 14 – Mot en grønnere utvikling • Will be presented to Parliament – spring 2011. • Nexus environment – development: • Driving force and consensus builder • Green growth – low carbon development • Ecosystem services • Adaptation • Clean energy will be a focus area White paper – environment and development

18. Framework agreements with consulting firms and government institutions: • Procurement rules • Information provided to international organizations on Norwegian expertise • Civil society: • Norwegian, foreign and international institutions and federations of institutions may apply for support. Purely commercial actors, enterprises and consultancy firms fall outside, but research institutions, competence centres and think tanks with an idealistic, non-commercial purpose can apply. • R&D-support Business opportunities

19. Produce new high-quality knowledge to a)address global challenges and b) for Norwegian policy needs • Secure capacity and competency in Norway • Strengthen capacity and competency in the South (sustainable institutions) • Use and communicate results Norad/MFA aims for researchactivities

20. Health - and improved research capacity Forest, climate, environment, energy Environmental and climate friendly agricultural technology Anticorruption, Co-operation with e.g. India and China (climate) Humanitarian assistance Effect of aid and how to strategically use aid in development processes Migration, diaspora Conflict, GBV, Peacebuilding and democracy, state building Gender and equality Thematicresearchpriorities

21. Thematicdistributionofresearch funds