Innovative Sources of Funding for SLM:

Climate Change Financing Mechanisms

Saveis Joze Sadeghian

Advisor Climate Change Finance Programme , Global Mechanism

5th October 2010, China

Links between Climate Change impacts and Desertification

Examples of Climate Change impacts on the agricultural, forestry and land use sector

Climate Change Responses and Finance needs

Mitigation

(Kyoto Protocol)

Adaptation

Internal measures

Flexible Mechanisms

Joint Implementation

Emission Trading

Clean Development Mechanism (CDM)

Strategies Instruments

Adaptation Funds

Bilateral and Multilateral financing

Adaptation Fund (AF)

Least Developing Countries Fund (LDCF)

REDD (Post Kyoto-2012)

UNFCCC

Special Climate Change Fund (SCCF)

Climate Change Financing - Mitigation

+

Voluntary

Carbon Market

Household cooking

Biomass and waste Agricultural waste

Animal waste Deforestation Land degradation

Climate Change Mitigation: Role of Agricultural, Rural and Land Use sector 1/1

Where do GHG emissions come from in the agricultural, rural and land use sector?

Climate Change Mitigation: Role of Agricultural, Rural and Land Use sector 2/2

Reducing emissions by…

…reducing fertilizer use

…anaerobic digestion of waste

…avoiding deforestation

…modifying livestock management

…using renewable energy

…improving energy efficiency

…increasing sequestration or conservation of carbon

8

Carbon Markets 1/3

Annex I Countries – Gaps in meeting targets after domestic mitigation measures

Regulated Market (Kyoto): Clean Development Mechanism (CDM)

Non-Annex I Countries

Certified Emissions Reductions

(CERs)

$$$ + Technology Transfer

SLM activities that capture carbon and thus generate CERsApproved CDM Methodologies

ONLY!

9

Carbon Markets 2/3

Anyone: Governments, NGOs, Individuals, Private sector

Anyone

Verified Emissions Reductions

(VERs))

$$$ + Technology Transfer

SLM activities that capture or avoid GHG and thus generate carbon credits

Voluntary Market Standards

Voluntary Carbon Markets

Agriculture, Forestry and other Land Use (AFOLU): Project Examples

Agriculture

Biogas and methane recoveryFertiliser switch or management in order to reduce N2O emissions

Cropland and grazing land management: Soil conservation (e.g. no-till farming)Livestock management

Forestry Afforestation / ReforestationAgroforestry

Primary forest conservation (Reduced Emissions from Deforestation and forest Degradation - REDD)

Rural Energy

Energy efficiencyRenewable energyBiofuels and fuel switch

Kyoto + Voluntary

Voluntary only

Kyoto + Voluntary

Voluntary only

Kyoto + Voluntary

Mitigation

(Kyoto Protocol)

Adaptation

Internal measures

Flexible Mechanisms

Joint Implementation

Emission Trading

Clean Development Mechanism (CDM)

Strategies Instruments

Adaptation Funds

Bilateral and Multilateral financing

Adaptation Fund (AF)

Least Developing Countries Fund (LDCF)

REDD (Post Kyoto-2012)

UNFCCC

Special Climate Change Fund (SCCF)

Climate Change Financing: Adaptation

+

Voluntary

Carbon Market

Climate Change Adaptation: Role of Agricultural, Rural and Land Use Sector

Sources of adaptation funding: Adaptation Funds

GEF Funds Extent of Benefits

Scope of Focus Focus Areas Size (m US$)

Eligibility

Strategic Priority for Adaptation (SPA)

Global EnvironmentalBiological diversity, climate change, international waters, land degradation, POPs

50 Non-Annex 1

Least Developed Countries Fund(LDCF)

Local, regional, or

global

Developmental Health, agriculture, water, infrastructure 115 Only LDC in

Non-Annex 1

Special Climate Change Fund (SCCF)

Local, regional or

globalDevelopmental

Health, agriculture, water, infrastructure 50 Non-Annex 1

Adaptation Fund Community,

regional or national

Full adaptation cost of projects and progs. to address the adverse effects of climate change

Water resources, agriculture, coastal zone management and marine resources, ecosystem management.

500 (estimate

)

“Particularly vulnerable” developing country Parties

Other sources for adaptation funding

GCCA Global Climate Change Alliance

European Commission

€ 50 millions 2006- 2010

MDG Spanish MDG Fund Spain € 90 millions 2008-2011

Cool Earth

Japanese Cool Earth Partnership

Japan US$10 billions 2008-2012

NORAD Rainforest Initiative

Cooperation Development Agency of Norway

Norway € 560 millions 2008-2012

Bilateral Funding

Multilateral Funding i.e. World’s Bank Climate Investment Funds (i.e Strategic Climate Fund – Pilot Programme for Climate Resilience)

Private Sector Funding i.e. Adaptation Private Sector Initiative

CDM

Adaptation

Voluntary Carbon Market

REDD

Afforestation/ Reforestation

Agriculture/Land use/Land use change

Energy

Reducing Emissions from Deforestation and Degradation

Agriculture/Land use/Land use change

Energy

Agriculture/Land use/Land use Change

Ecosystems

Coastal Zones

Water

Thank You!

Saveis Joze Sadeghian

Climate Change Programme

Global Mechanism of the UNCCD

s.sadeghian@global-mechanism.org