Financing the SDGs: Some Insights from the OECD

The OECD Development Assistance Committee Statistics & Rio Markers

Jan Corfee-Morlot, DAC SecretariatPEP Meeting, Edinburgh, 27-29 May 2015

Key messages

• Aid – Investment – Tax : all essential for financing sustainable development– 3 different entry points for action, domestic and

international finance, public and private will be needed– Quality of finance, its impact as important as the quantity

• Partnerships – new coalitions of the willing and new forms of partnerships and ways of working – will be needed

• Break down the silos – Climate action and development is sustainable action;

climate finance and development finance is sustainable development action

Patterns of Development Finance and Environment

What do the data tell us?

Environmental ODA often targets multiple global and local objectives, 2011-13

Environment26.2 bn

Adaptation9.6 bn

Desertification2.7 bn

Mitigation14.2 bn

Biodiversity5.6 bn

Three-year annual average, bilateral commitments, USD billion, constant 2013 prices

• The causes an solutions to biodiversity, climate change, desertification and other environmental concerns are intertwined.

• In 2011-13, 64% of bilateral green development finance targeted at least two environmental objectives simultaneously.

Source: OECD DAC Statistics, March 2015

Bilateral development finance for the environment is on the rise

14%

21% 23%

0%

5%

10%

15%

20%

25%

0

5

10

15

20

25

30

2005-07 2008-10 2011-13

Shar

e of

tota

l ODA

com

mitm

ents

(%)

USD

billi

on

Desertification-related ODA Biodiversity-related ODA Climate-related ODA Total environmental ODA Share of total ODA commitments

ODA to the environment, 2005-2013Three-year annual averages, bilateral commitments, USD billion, constant 2013 prices

• ODA commitments targeting the global and local environment reached USD 29.4 billion on average per year in 2011-13, representing 23% of total bilateral ODA commitments by DAC members

• Driven by international commitments under the Rio conventions on biodiversity, desertification and, in particular, climate change

Source: OECD DAC Statistics, March 2015

Climate-related development finance in 2013 reached USD 37 billion

Source: OECD DAC Statistics, December 2014

Climate-related development finance in 2013Commitments, USD billion

• USD 23.0 billion (61%) addressed mitigation only, USD 9.6 billion (26%) addresses adaptation only, and USD 4.8 billion (13%) consists of activities designed to address both mitigation and adaptation.

OECD DAC CRS Rio marker statistics, analysis & access to datahttp://oe.cd/RMioMarkers

Biodiversity, Climate and Desertification-related statistics, data portal and analysiswww.oecd.org/dac/stats/biodiversity.htm

www.oecd.org/dac/stats/climate-change.htm www.oecd.org/dac/stats/desertification.htm

Rio markers training workshop: www.oecd.org/dac/environment-development/training-workshop.htm

OECD Environment and Development Homepagewww.oecd.org/dac/environment-development

Rio markers: Stephanie.Ockenden@OECD.org and Valerie.Gaveau@OECD.org

Environment and Development: Jan.Corfee-Morlot@oecd.org

Some further detail…

Bilateral biodiversity-related ODA commitments by OECD DAC members

• Bilateral biodiversity-related aid commitments reached USD 5.6 billion per year in 2011-13, representing 4% of total bilateral aid.

• Most increase in ODA targeting biodiversity as a “significant” objective (63% av. 2011-13)

• Donors increasingly targeting multiple environmental objectives: 76% biodiversity-related development finance also targets climate

change objectives (2011-13).Source: OECD DAC Statistics, February 2015

Trends in biodiversity-related development finance, three-year averages2002-2013, bilateral commitments, USD billion, constant 2013 prices

Top 3 sectors received 82% of bilateral biodiversity-related ODA in 2007-13

• The estimated share of capacity-building activities is growing over time, from 24% in 2005-07 to 43% in 2011-13. This supports:

• Setting the right policy frameworks and strengthening institutions;• Research, education and training;• Management of, provision of, and access to finance

Source: OECD DAC Statistics, February 2015

Key sectors receiving biodiversity-related development financeAverage 2007-13, bilateral commitments, USD billion, constant 2013 prices

Bilateral climate-related development finance is rising

2002-04 2005-07 2008-10 2011-130

5

10

15

20

25

0%

4%

8%

12%

16%

4% 4%

11%

16%

Principal Significant Share of bilateral ODA

USD billion

Source: OECD DAC Statistics, December 2014

Trend in bilateral climate-related ODA, 3-year annual averages2002-13, bilateral commitments, USD billion, constant 2012 prices

Development finance targeting adaptation

• Total bilateral adaptation-related ODA by DAC members reached USD 10.6 bn per year over 2012-13, or 8% of bilateral commitments.

• 71% targets adaptation as a significant objective, reflecting mainstreaming within on-going development activities

• For the first time, the OECD DAC statistics capture an integrated picture of both bilateral and multilateral climate-related external development finance flows.

• Total bilateral and multilateral adaptation-related finance reached over USD 14.6 bn in 2013.

– DAC members = USD 11 bn– UAE = USD 264 mn– Multilateral = USD 3.3 bn

Total adaptation-related development finance2010-13, bilateral and multilateral commitments, USD billion,

constant 2012 prices, annual and 2-year annual average

2010-11 2012-13 20130

2

4

6

8

10

12

14

16

0%

1%

2%

3%

4%

5%

6%

7%

8%

7%

8%

Principal SignificantUAE Share of total ODA commitments

USD

bill

ion

Shar

e of

tota

l OD

A c

omm

itm

ents

Bilateral

Multilateral

UAE

Bilateral adaptation-related OOF by OECD DAC members: USD 225 million per year over 2010-13

Concentration in few sectors & activity types

• DAC members: top 6 sectors receive 86% of adaptation-related ODA

• Multilateral in 2013: top sector is agriculture (USD 677 million; 20% of adaptation ODA), followed by general environment protection (674 million; 20%), water supply and sanitation (USD 517 million; 16%), disaster risk reduction and response (USD 272 million; 8%)

• United Arab Emirates: – USD 155 million targeting water as a significant objective – USD 150 targeting energy as a principal objective

0.00.51.01.52.02.53.0

0%

10%

20%

30%

40%38%

25%

41%

10%4% 4%

Principal Significant UAE Share of total ODA commitments

USD

bill

ion

Shar

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f to

tal O

DA

co

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ents

Adaptation-related bilateral ODA by sectorAnnual average 2010-13, bilateral commitments, USD billion, constant 2012 prices

LDCs and other low income countries receive 27% of adaptation-related ODA from DAC members

• Multilaterals in 2013– Appear more focused on the poorest: 40% LDCs, 7% other LICs– 26% Lower MICs, 24% Upper MICs

• UAE– 87% Upper MICs (Albania, Jordan)– 13% LDCs (Lesotho, Mali, Somalia)

LDCs24%

Other LICs3%

Lower MICs28%

Upper MICs15%

Unspeci-fied31%

Asia34%

Africa31%

Unspecified18%

Latin America & Caribbean

10%

Europe5%

Oceania2%