ADAPTATION FINANCE BULLETIN | |
UNFCCC Adaptation Committee | | |
News from the Global Environment Facility | | |
Photo credit: Ivan Bandura on Unsplash | |
GEF Publishes Integrated Program Briefs for GEF-8 Cycle | The GEF has published program briefs for its GEF-8 operating cycle. These provide a snapshot of the issues, integrated solutions, and anticipated outcomes of its planned programs. Much of the USD 5.33 billion pledged to the GEF for the GEF-8 period will be delivered through this set of 11 integrated programs that are geared to address several environmental challenges across sectors, all at once. These programs are focused on areas such as ecosystem restoration, food systems, sustainable cities, and more. | |
GEF and GCF pavilion at COP27 | The GEF and the GCF will together co-host the GCF-GEF Pavilion at COP27. The pavilion will feature a daily program of events. | |
News from the Adaptation Fund | |
Photo credit: Adaptation Fund | |
39th Meeting of the Adaptation Fund Board | |
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The 39th Meeting the of Adaptation Fund Board saw the adoption of a new five-year Medium-Term Strategy (MTS) for the period 2023-2027. The new strategy reflects greater ambition to meet the adaptation needs of vulnerable countries by strengthening the Fund’s existing strategic pillars of Action, Innovation, and Learning and Sharing. As such, the new strategy looks to bolster linkages between pillars, while also including new cross-cutting features. These include fostering locally led adaptation and scaling up Fund actions and results.
Likewise, the meeting of the Board also saw the approval of a Resource Mobilization Strategy, that seeks to diversify funding sources, while also addressing growing adaptation challenges and needs, reflected in a large pipeline of adaptation projects, amounting to roughly USD 380 million, that have not yet received approval.
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News from the Green Climate Fund | |
34th Meeting of the GCF Board | |
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New climate projects approved by the GCF Board during its 34th meeting in Incheon, Republic of Korea, brought its portfolio to 209 projects with USD 11.3 billion in GCF funding, and USD 42.4 billion including co-financing. The Board approved nine new projects, of which two were adaptation focused and an additional three were cross-cutting in nature. This was accompanied by the adoption of an accreditation strategy, renewal of existing accreditation partnerships with five organizations, and accreditation of the Zambia National Commercial Bank Plc as a new partner to the Fund.
Additionally, the Board also adopted a new policy to minimize the impact of currency fluctuations on the GCF’s commitment authority, as well as finalized the approval of work plans and budgets of the Secretariat and independent units. Together, the outcomes of the 34th meeting of the GCF Board were rooted in efforts to increase access to greater resources for developing countries.
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GCF Global Programming Conference 2022 |
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The GCF convened Ministers, GCF National Designated Authorities or Focal Points, Accredited Entities and Delivery Partners for its 2022 Global Programming Conference from 15-17 September. The three-day event aimed to provide a platform for constructive dialogue on how the GCF should target and deliver its resources to maximize climate impact, especially in developing countries, in the face of growing global economic pressures and environmental catastrophe.
Sessions were structured around three themes: Partnerships for climate ambition: charting GCF’s next chapter; Building blocks for effective and impactful climate investment; and Navigating access: how to make the most of GCF support.
Key takeaways related to the need to leverage partnerships in the name of collective responsibility and the several dimensions of access to climate finance, including its speed, simplicity, volume and direct access. These priorities were underscored by the need for a GCF regional presence, in order to both strengthen relationships between the GCF and its partners and also to facilitate access to its resources.
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5th Annual Private Investment for Climate Conference | |
The fifth annual GCF Private Investment for Climate Conference (GPIC) was held in September in the Republic of Korea. The flagship event brought together a range of global leaders, executives, and experts from business, governments, financial institutions, and technology companies to explore paths to facilitate and scale up private sector financing of climate activities in developing countries.
The GPIC provides a platform to showcase successful private sector driven projects and innovative climate solutions in vulnerable communities, and to forge new partnerships and strengthen existing relationships between international and developing country private sector entities and the GCF. As such, it aims to remove climate investment barriers and promote investment opportunities, helping to foster greater resilience in developing countries.
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News from the Standing Committee on Finance | |
Figure extracted from the SCF's Fifth Biennial Assessment and Overview of Climate Finance Flows | |
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Four new SCF reports set the scene for finance discussions at COP27
The Standing Committee on Finance (SCF) has published a series of four new reports as a precursor to the climate finance discussions at COP27. Together, these reports provide a comprehensive snapshot of the state of climate finance today. Key findings from each of the four reports include the following:
Fifth Biennial Assessment and Overview of Climate Finance Flows
This report indicates that global climate finance flows reached an annual average of USD 803 billion in 2019-2020, a 12 per cent increase from the previous biennium. It highlights that while the largest share of climate finance is for mitigation, adaptation finance continues to grow steadily and at a higher rate than mitigation finance. The report emphasized the importance of incorporating climate risks into finance decision-making, in order to fulfil the goals of the Paris Agreement.
Report on progress towards achieving the goal of mobilizing jointly USD 100 billion per year to address the needs of developing countries in the context of meaningful mitigation actions and transparency of implementation
This report examines progress towards the USD 100 billion goal along three dimensions: finance flows for USD 100 billion; addressing the needs of developing countries; and progress in the context of meaningful mitigation and transparent implementation. It confirms that the goal was not met in 2020 and notes the importance of scaling up access to climate finance and innovative instruments, and bridging the capacity gap in building project pipelines in developing countries.
Work on definitions of climate finance
This report analyses definitional differences with regard to climate finance on the basis of three distinctions: which climate activities should be financed, how finance should be accounted for, and which actors should be included. As such, it finds that the use of definitions relates to specific tracking purposes, including the tracking of global climate finance, finance from developed to developing countries, and climate finance within government budgets.
Work relating to Article 2, paragraph 1(c) of the Paris Agreement (making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development)
This report identifies ways to fulfil the goal of aligning finance flows with low emissions and climate-resilient development. It explores the type of finance and actors that may be relevant to the goal and ways that Parties could continue work on the topic. Additionally, the SCF mapped out information relevant to the goal, such as policy and regulatory measures on green finance and new collective initiatives for the financial sector.
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SCF Forum for Nature-based Solutions Part II
The SCF organized the second instalment of its Forum on Finance for Nature-based Solutions in Cairns, Australia in September 2022. The SCF Forum serves as a platform to exchange information and promote linkages and coherence in the mobilization and delivery of climate finance. Building on Part I of the Forum, held in 2021, the event offered the opportunity to delve deeper into climate finance issues for nature-based solutions, sharing experiences and knowledge in designing and accessing finance, closing the finance gap, and scaling up nature-based solutions.
Delegates discussed the need for greater financial and technical support to developing countries, to facilitate the inclusion of nature-based solutions in their nationally determined contributions (NDCs) and national adaptation plans (NAPs). They likewise highlighted the importance of bringing together diverse stakeholders in the planning, finance, and implementation processes, including indigenous peoples, women, and youth.
A high-level summary of the second part of the Forum is available here.
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Latest from the Adaptation Committee | |
Figure extracted from the AC's technical paper on Methodologies for assessing adaptation needs and their application | |
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AC finalizes new publications to support adaptation assessments and communication
Ahead of COP27, the UNFCCC Adaptation Committee has approved critical resources and knowledge products that aim to support governments in conducting assessments of their adaptation-related needs and preparing their adaptation communications.
As such, at its twenty-second meeting (AC22), the AC approved a technical paper focusing on Methodologies for assessing adaptation needs and their application. The paper includes a variety of approaches for Parties to consult when assessing their needs, explores approaches in detail through case studies, and presents a five-step process for assessing adaptation needs.
Moreover, the AC also finalized the Draft supplementary guidance for voluntary use by Parties in communicating information in accordance with the possible elements of an adaptation communication to help Parties prepare and enhance the quality of their adaptation communication submissions to the UNFCCC. This includes guidance that can be used for preparing and communicating information on implementation and support needs of, and the provision of support to, developing country Parties.
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Other adaptation finance related news | |
Photo credit: UNCDF/LoCAL - Helvisney dos Reis Cardoso | |
UNCDF and AfDB showcase non-market tools to mobilize adaptation finance
The UN Capital Development Fund (UNCDF) and the African Development Bank (AfDB) held an event on the sidelines of Africa Climate Week in Libreville, Gabon, featuring two innovative mechanisms to scale up adaptation action and finance. The event was held in the recognition that current adaptation finance levels are insufficient to fulfil the needs of developing countries, and the private sector and local governments can help fill this gap.
The Local Climate Adaptive Living Facility (LoCAL Facility) mechanism under the UNCDF helps local governments access climate finance for locally-led adaptation initiatives, whilst also strengthening transparency and reporting. Similarly, the Adaptation Benefits Mechanism, being piloted by the AfDB, was also showcased as a non-market, results-based finance tool to encourage investments that build resilience in vulnerable communities and ecosystems.
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Join LoCAL Facility pavilion
at COP27
The LoCAL Facility is hosting a pavilion at COP27. The LoCAL Facility, designed and hosted by the UNCDF, was initiated in 2010 to bridge adaptation finance and capacity gaps. It aims to promote green and climate-resilient communities and local economies by establishing a standard, internationally recognized country-based mechanism to channel climate finance to local authorities for its effective use. The LoCAL approach has been fine-tuned over time in 34 countries, of which 27 are least developed countries, seven are Small Island Developing States, and 24 are in sub-Saharan Africa. Over EUR 125 million has been mobilized to date, demonstrating that systems are in place to deliver funds to the climate change frontline for locally-lead action. More than 300 local governments have been engaged and 12.5 million people benefitted. Scaled nationally in its countries of operation, LoCAL has the potential to benefit over 600 million people.
This year, the LoCAL Facility will co-host the LLA Pavilion, a space for raising ambition on increased climate finance and Locally Led Adaptation to the impacts of climate change in developing and least developed countries.
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Photo credit: Aaron Burden on Unsplash | |
World leaders unveil new biodiversity commitments | As world leaders met on the sidelines of the UN General Assembly in late September, they unveiled a series of new biodiversity obligations, confirming their commitment to reversing biodiversity loss and ensuring a nature-positive world by 2030 ahead of the UN Biodiversity Conference (COP15) in December. Pledges included EUR 0.87 billion of new funding from the German government. Other commitments include a 10-point plan for biodiversity financing, an accelerator for action on biodiversity, as well as the next phase of the High Ambition Coalition for Nature and People, supporting the protection of at least 30 per cent of global land and oceans. | | |
Spotlight on Blue Finance: UNFCCC publishes report on ocean-related climate action | |
Photo extracted from the UNFCCC's Ocean and Climate Change Dialogue 2022 Summary Report | |
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2022 has been named ‘the Super Year of the Ocean,’ with a series of vital breakthroughs on ocean-related climate action. The Ocean and Climate Change Dialogue, mandated at COP26, took place in June 2022. The dialogue emphasized the importance of the oceans to livelihoods and biodiversity and indicated that momentum is indeed building for greater ocean-related climate action at COP27.
A clear message is the urgent need to ‘blue’ the overall structure of international climate change commitments and institutions. This includes the integration of ocean-based climate action in countries’ NDCs, NAPs, long-term strategies and financial commitments.
Countries have already begun to act through their NDCs. As such, the informal summary report on the dialogue by the Chair of the SBSTA highlights opportunities for ocean action, for instance through expanding and strengthening marine protected areas, protecting coastal communities and ecosystems, advancing ocean-climate justice and developing a sustainable blue economy. Opportunities to advance ocean-related climate action include greater ocean science support for countries’ planning and implementation of their NDCs and NAPs.
The report also emphasizes the need for collective measures at the international level. Among its key messages, the report notes the need to address and overcome barriers to adequate financing for ocean-related climate action; foster enabling environments for the implementation and scaling-up of integrated adaptation solutions; and build cross-sectoral partnerships, especially with the private sector, to encourage innovation and overcome the financing gap.
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