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GIZ´s Global GCF Readiness Programm

Laura Würtenberger,

St. Lucia, 22 May 2013

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Context

German GCF Readiness Support – Goals and current status

II.

I.

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Green Climate Fund Context

The fund was formally established during the UNFCCC COP 16 in

Cancun in 2010

A significant part of financial resources to combat climate change may

be entrusted to the Green Climate Fund in the future

Envisaged Goal

“the Fund will promote the paradigm shift towards low-emission and

climate-resilient development pathways by providing support to

developing countries to limit or reduce their greenhouse gas

emissions and to adapt to the impacts of climate change, taking into

account the needs of those developing countries particularly

vulnerable to the adverse effects of climate change” (Source:

UFCCC/CP/2011/9/Add.1)

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Why climate finance readiness is crucial now

• Common goal to achieve the target of keeping global warming

below 2° Celsius. We want to support our partners on their way

towards truly sustainable, i.e. low-emission and climate resilient

development.

• Countries need to develop a vision how to manage their own

paradigm shift, and donors need to harmonise, co-finance and join

forces.

• Support for partner countries to get ready both in terms of strategy,

policy, project-pipelines as well as institutionally is vital for effective

spending of funds.

• Readiness is crucial now in preparation for future GCF funding and

to orient development plans towards low-emission and climate

resilient development. We need to bridge the gap until the GCF is

up and running to provide support for this preparatory activities.

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Green Climate Fund Readiness

Readiness activities shall facilitate efficient, effective and transparent

use of funds

Possible activities:

Capacity development with regard to access, distribution and use

of funds for adaptation and mitigation measures in relevant

institutions

Support for the development of climate change strategies as well

as development of project proposals for financing by the GCF.

Support for efficient and results-oriented use of funds

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Green Climate Fund Challenges for partner countries

Direct access will be one access modality to acquire funds

Accredited national institutions administer themselves resources of

the fund

To access GCF directly, countries will need to demonstrate that they

can meet high fiduciary standards, have adequate environmental

and social governance systems and ambitious and coherent

national climate strategies implemented.

From the perspective of developing countries and emerging

economies, direct access holds:

opportunities as it includes a high ownership of countries

challenges in accessing and making efficient use of financial

resources

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Building Capacities for Climate Finance GIZ Approach

STRATEGIC

PLANNING

BUILDING AN

INSTITUTIONAL

FRAMEWORK AND

GOOD FINANCIAL

GOVERNANCE

ACCESSING

INTERNATIONAL

CLIMATE FINANCE

EFFECTIVE,

EFFICIENT AND

TRANSPARENT

SPENDING &

IMPLEMENTATION

ENGAGING

THE PRIVATE

SECTOR

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Learning from other sectors German BACKUP Initiative

The German BACKUP Initiative aims to provide worldwide support to

government and civil society partners for applying for the resources of

the Global Fund to Fight AIDS, Tuberculosis and Malaria or making

better use of the funds

The BACKUP Initiative has provided supported 436 projects in 73

countries since 2002

Supports CCMs in fulfilling their coordinating function and to

oversee the implementation of programmes

Assists in the preparation of proposals

Supports capacity building for programme implementation

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Context

German GCF Readiness Support – Goals and current status

II.

I.

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The government of Germany committed 40 Mio Euro in Durban for

readiness support for the GCF, and an additional 10 Mio EUR for the

WB “Climate Finance Readiness Initiative (CIRI)”

The Federal Ministry of Environment (BMU) and the Federal Ministry

for Economic Cooperation and Development (BMZ) each administer 20

Mio

BMZ support will be implemented through GIZ and KfW

GIZ and KfW activities will be closely coordinated

German GCF Readiness Support Background

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OBJECTIVE

To improve the conditions needed to achieve results-oriented, transformational

and efficient use of funds from the GCF

LENGTH: Until November 2018

VOLUME: 5 Mio. EUR, agreed replenishment of further 5 Mio. EUR

TEAM IN GERMANY: Alexander Fröde, Xing Fu-Bertaux, N.N., Dorit Lehr, Anabel Rett

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Support for national

institutions, e.g. for performing

the necessary tasks and

accrediting for GCF direct access

modality, supporting the work of

national climate finance

coordination bodies

Strategic and conceptual advice

for climate strategies as base for

financing, e.g. support for National

Adaptation Plans, and Low carbon

development strategy.

Global Sharing of experiences and knowledge transfers: Facilitating south-

south exchanges and sharing best practice examples

GIZ´s Global GCF Readiness Programme Activities carried out

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Direct and international access:

If development banks or other financial intermediaries are selected as

GCF Implementing Entities, KfW offers support to national authorities in

gaining accreditation under GCF‟s direct & international access modality.

Focused capacity development is offered for development banks on

selection criteria for investment projects and on fiduciary standards and

environmental and social safeguards.

National GCF investment plans and respective project pipeline:

Support in establishing a pipeline of bankable projects for the GCF via

national investment plans in key sectors. This activity includes

investment barrier analyses as well as technical, financial and economic

advisory services for the evaluation of investment proposals.

Pre-feasibility studies may be financed for the most promising project

proposals.

Activities implemented by KfW

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The program intends to work with an initial set of 6-8 countries

Exact contribution and way of working depends on the existing

capacities in the country

Will be determined after first planning mission in the country.

GCFit

Possible approach: Trainings for key stakeholders, advise

through national and international long-term experts in the

country.

Next steps: In-depth analysis of partner countries´ capacities to

efficiently acquire, administer and use climate finance; identifying

possible NIEs and evaluating their capacities; evaluating existing

ambitions, projects and strategies; identification of needs

Next steps

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Contact: gcfit@giz.de

Thank you !

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GCFit Examples of GIZ‘s work on climate finance readiness

TITLE CLIMATE FINANCE READINESS

IN SOUTHERN AFRICA

TARGET

COUNTRY

NAMIBIA, TANZANIA AND

ZAMBIA

IMPLEMENTATION ODI ON BEHALF OF GIZ

Output:

show the status of climate finance readiness in the country.

Identify key capacitites and institutional needs in the countries to make

effective use of climate finance

First results: recommendations for Namibia and Zambia on capacity

building and institutional needs.

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GCFit Examples of GIZ‘s work on climate finance readiness

TITLE

ESTABLISHMENT OF

PHILIPPINES PEOPLE‟S

SURVIVAL FUND

TARGET COUNTRY PHILIPPINES

IMPLEMENTATION GIZ ON BEHALF OF BMU/ICI

The People‟s Survival Fund (PSF) is the newly implemented national

funding entity in the Philippines

Fund„s volume: original capitalisation of around 18.4 million euros through

a national budget allocation

Designed to receive international donations, grants and endowments

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GCFit Examples of GIZ‘s work on climate finance readiness

TITLE

AMAZON FUND TO THE

PROTECTION OF FORESTS AND

CLIMATE

TARGET COUNTRY BRAZIL

IMPLEMENTATION GIZ ON BEHALF OF BMZ

GIZ activities:

Support to set up of M+E System, impact monitoring and strategy

development

Facilitation of stakeholder/civil society participation

Further development of implementation modalities

Knowledge management