Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm

Randy Caruso, OECD

randy.caruso@oecd.org

Based on the discussion paper “Exploring Climate Finance Effectiveness” by Jane Ellis, Randy Caruso, Stephanie Ockenden

Exploring Climate Finance Effectiveness

CCXG Global Forum 18 September 2013

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Focusing on results

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Presentation outline

Walk through three observations related to the following questions on results frameworks:

1. What types of indicators are being used?

2. What is the scope of these indicators?

3. What are the core issues in implementing results frameworks?

Questions for discussion

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1. What types of indicators are being used?

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1. What types of indicators are being used?

While all institutions place a focus on results, chosen indicators are not always linked to impacts – often focusing instead on outputs or outcomes.

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Results frameworks Time since intervention

Scale

Project

Portfolio / Programme

National

Global

Output Outcome Impact Input

$100 m to fund feed-in

tariff

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Results frameworks Time since intervention

Scale

Project

Portfolio / Programme

National

Global

Output Outcome Impact Input

$100 m to fund feed-in

tariff

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Results frameworks Time since intervention

Scale

Project

Portfolio / Programme

National

Global

Output Outcome Impact

1 000 wind turbines installed

Input

$100 m to fund feed-in

tariff

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Results frameworks Time since intervention

Scale

Project

Portfolio / Programme

National

Global

Output Outcome Impact

1 000 wind turbines installed

new fossil-fuel fired

generation avoided

Input

$100 m to fund feed-in

tariff

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Results frameworks Time since intervention

Scale

Project

Portfolio / Programme

National

Global

Output Outcome Impact

1 000 wind turbines installed

new fossil-fuel fired

generation avoided

x tonnes of CO2eq/yr avoided

Input

$100 m to fund feed-in

tariff

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2. What is the scope of these indicators?

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2. What is the scope of these indicators?

Results frameworks are often multi-dimensional, with indicators extending beyond climate-specific areas into broader development areas

Breadth of results frameworks

Mitigation

• Policies introduced

• GHG emissions abated/avoided

• EE savings • tCO2

sequestered • RE installed

(ratio)

Adaptation

• Policies • Energy

efficiency • Renewable

energy • GHG

emissions • tCO2

sequestered

Mitigation-specific indicators

• Policies • Vulnerability

of population • Vulnerability

of assets • Outreach or

CB activities • Vulnerability

assessments

Resilience-specific indicators Broader development indicators

• Finance mobilised

• Access to energy

• Access to transportation

• Livelihoods • Land use and

forests

• Biodiversity • Local env.

quality • Water • Food security • Health • Sanitation • Tech transfer

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3. What are the core issues in implementing results frameworks?

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3. What are the core issues in implementing results frameworks?

Methodological issues complicate

efforts to track results and assess effectiveness;

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3. What are the core issues in implementing results frameworks?

Methodological issues complicate

efforts to track results and assess effectiveness; un-coordinated and differentiated responses compound these

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Core issues

Setting baselines and choosing targets e.g. baseline choice has been shown to influence GHG foot-

printing tools by a factor of 3 for renewable energy and 10 for energy efficiency projects (Clapp et. al., 2009).

Assessing transformational change e.g. how to determine causality or account for exogenous factors?

Context-specificity of results e.g. how to balance tradeoffs between comparability/aggregation

and context-specificity?

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Core issues - cont

Cost effectiveness and value for money e.g. is cost effectiveness a reliable metric across objectives and

contexts?; whose “values” apply?

Tracking underlying financial flows e.g. how to ensure the flow back of results for complex financing

instruments, e.g. investment fund-of-funds?

Learning and knowledge management e.g., how to characterise and share experience within and across

institutions?

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Discussion questions

What information is needed to assess the effectiveness of mitigation activities?

How to balance tracking GHG benefits; broader economic, environmental and social co-benefits; and cost-effectiveness concerns?