Annex 1: Multilateral Climate Finance Mechanisms
Multilateral Climate Finance | ||||||
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Fund | Purpose | Administering entity | Implementing entities | Type of Financing | Funding | Purpose and eligibility criteria |
Adaptation | Adaptation Fund Secretariat; Board approves projects | National, regional and multilateral implementing entities. As of September 2017, there are 25 national, 6 regional and 12 multilateral implementing entities. | Grants | Primary funding comes from a 2% share of proceeds of the Certified Emission Reductions issued by Kyoto Protocol's Clean Development Mechanism. | AF designed to finance climate change adaptation projects and programs based on the priorities of eligible developing countries as identified in their National Adaptation Plans (NAPs). Agriculture, food security, nutrition, water management and CSA are high priorities. | |
Mitigation | Managed by the GEF Secretariat. Funds Projects approved by GEF Council. | Funds can be accessed through 18 GEF Agencies | Grants, non-grant instruments | Replenished every four years. GEF-6 Replenishment for the period 2014-2018 amounted to USD 4..43 billion. | Finances the incremental costs of measures to achieve global environmental benefits. CSA specifically covered in the GEF-6 Climate Change and Land Degradation Focal Areas. GEF-7 will likely continue to promote synergies and deliver multiple benefits across GEF focal areas as well as through new Impact Programs (IPs) which will provide support particularly to agriculture, food security and forestry. Resources combinable with LDCF and SCCF. | |
Green Climate Fund (GCF) | Adaptation, Mitigation 50/50 | Managed by the GCF Secretariat and projects approved by the GCF Board. | Funds can be accessed through national, regional and international accredited entities. As of September 2017, there are 54 accredited entities comprised of 24 are direct access, 8 private sector and 22 international entities. | Grants, loans, guarantees, equity, | USD 10.3 billion initially mobilized for the period 2015-2018. | Investments in the agricultural sectors well aligned with GCF priorities. Four of its eight strategic results areas are directly linked to the agriculture sectors: reducing emissions from deforestation, forest degradation and land use (mitigation); and three adaptation priorities – increasing resilience of health, food and water security; livelihoods of people and communities; and ecosystems and ecosystems services. |
Adaptation | Managed by the GEF Secretariat. | Funds can be accessed through 18 GEF Agencies | Grants | Replenished on a rolling basis. New pledges accepted on ongoing basis. | Tasked with financing the preparation and implementation of National Adaptation Programs of Action (NAPAs). Supports NDC implementaiton. Agriculture and food security, water resources management, disaster risk management, natural resources management, among thematic programming areas. Equitable access for all LDCs: “ceiling” increases proportionately to the growing size of the fund. Funds combinable with GEF, SCCF. | |
Adaptation | Managed by the GEF Secretariat. | Funds can be accessed through 18 GEF Agencies | Grants | Replenished on a rolling basis | SCCF funds same thematic programme areas as LDCF. While adaptation is a top priority, through a separate financing window the SCCF also supports the transfer of climate-resilient technology for both adaptation and mitigation, including in the areas of agriculture, forestry and water management. Funds combinable with GEF, LDCF. | |
Other multilateral funds | ||||||
Adaptation | International Fund for Agricultural Development (IFAD) | IFAD | Grants | Multi-donor Trust Fund (Belgium, Canada, Finland, Netherlands, Norway Sweden, Switzerland, and United Kingdom) | ASAP aims to improve the climate resilience of large-scale rural development programmes and improve the capacity of at least 8 million smallholder farmers to expand their options in a rapidly changing environment. Through ASAP, successful “multiple-benefit” approaches are scaled up which can increase agricultural output while reducing and diversifying climate-related risks. | |
Adaptation, Mitigation | Climate Change and Green Growth Department of the African Development Bank (AfDB), | AfDB | Grants | Multi-donor Trust Fund (Germany, Italy, Flander, Belgium) | ACCF supports African countries and complements existing resources and trust funds. Aims to scale-up mobilization of international climate finance dedicated to support African countries to transition towards climate-resilient, low carbon economies and green growth, including through readiness activities. Supports broad range of activities, including: preparation for accessing climate funding; integration of climate change and green growth into strategic documents and/or projects; preparation and funding of adaptation and mitigation projects; climate change-related knowledge management and information sharing; capacity building; | |
Mitigation | World Bank | World Bank | Carbon Finance | Participants investing in the BioCarbon Fund include six governments and public entities and 11 private companies. Private sector participants include oil & gas, utilities, food & beverage, iron & steel, chemicals & pharmaceuticals, and agriculture. The emission reductions that the BioCarbon Fund purchases on behalf of its Participants are subsequently transferred to them pro-rata their financial participation in the fund. | The BioCarbon Fund is a public-private sector initiative managed by the World Bank and supports projects that generate multiple revenue streams, combining financial returns from the sale of emission reductions (i.e., carbon credits) with increased local incomes and other indirect benefits from sustainable land management practices. | |
Mitigation | World Bank and MDBs | World Bank and MDBs | Concessional financing | Multi-donor Trust Fund: USD 8.3 billion are expected to attract an additional USD 58 billion of co-financing for a portfolio of over 300 projects and growing | CIF consists of funds - CTF and SCF. Four key programs (CTF, FIP, PPRC, SREP - see below) that help 72 developing countries pilot low-emission, climate resilient development. | |
Mitigation | World Bank | AfDB, ADB, EBRD, IDB, World Bank Group | Concessional financing | Multi-donor Trust Fund under CIF: USD 5.6 billion. | Part of CIF. Provides middle-income countries with highly concessional resources to scale up the demonstration, deployment, and transfer of low carbon technologies in renewable energy, energy efficiency, and sustainable transport. | |
Adaptation, Mitigation | World Bank | AfDB, ADB, EBRD, IDB, World Bank Group | Concessional financing | Multi-donor Trust Fund under CIF | The SCF is one of the two funds of the CIF. It serves as an overarching framework to support three targeted programs - FIP, PPRC and SREP - with dedicated funding to pilot new approaches with potential for scaled-up, transformational action aimed at a specific climate change challenge or sectoral response. | |
Adaptation | World Bank | AfDB, ADB, EBRD, IDB, World Bank Group | Concessional financing | USD 1.2 billion programme under CIF | Part of CIF. The first program under the SCF to become operational. Its objective is to pilot and demonstrate ways to integrate climate risk and resilience It also provides additional funding to put plan into action and pilot innovative public and private sector solutions to pressing climate-related risks | |
Scaling Up Renewable Energy Program (SREP) in Low Income Countries | Mitigation | World Bank | AfDB, ADB, EBRD, IDB, World Bank Group | Concessional financing | USD 780 million programme under CIF | Part of CIF. It aim at demonstrating the social, economic, and environmental viability of low carbon development pathways in the energy sector. It seeks to create new economic opportunities and increase energy access through the production and use of renewable energy. |
Climate-Smart Agriculture Fund for Latin America and the Caribbean (CSAF) | Mitigation, Adaptation | Inter-American Development Bank (IADB) | Inter-American Development Bank (IADB) | Grants | Multi-donor Trust Fund (IADB, GEF, Nordic Development Fund) | The CSAF aiims to scale up climate-smart agriculture practices to achieve carbon sequestration, resilience to climate change and improved provision of ecosystem services by leveraging private sector linvestment in sustainable agriculture, forestry, and rangeland systems. |
REDD-plus funds | ||||||
Mitigation | Brazilian Development Bank (BNDES) | BNDES | Grants | Multi-donor Trust Fund (Norway, Germany - KfW, Petrobras) | The Amazon Fund supports investments in the following areas: management of public forests and protected areas; environmental control, monitoring and inspection; sustainable forest management; economic activities created with sustainable use of the vegetation; eEcological and economic zoning, territorial arrangement and agricultural regulation; preservation and sustainable use of biodiversity; and recovery of deforested areas. | |
Mitigation | African Development Bank (AFDB) | AfDB | Grants | Multi-donor Trust Fund (Norway, UK). Contributions USD 170 million; USD 15 million committed to projects. | "Supports COMIFAC and its subregional partner institutions to mobilize resources to finance activities and projects aimed at promoting the equitable and sustainable use, conservation and management of the Congo Basin forests and ecosystems for poverty alleviation, sustainable social-economic development, regional cooperation and environmental conservation. Thematic areas: forest management and sustainable practice; Livelihoods and economic development; monitoring, assessment and verification; benefits from carbon markets and payment for ecosystem services; capacity building in REDD | |
Mitigation | World Bank | The World Bank assumes the functions of trustee and secretariat. The World Bank, the Inter-American Development Bank and United Nations Development Programme are Delivery Partners under the Readiness Fund and responsible for providing REDD+ readiness support services to distinct countries. | Grants, performance-based payments | Multi-donor Trust Fund (18 donors and 47 REDD+ partners) | Global partnership of governments, businesses, civil society, and Indigenous Peoples focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries (activities commonly referred to as REDD+). Consists of a Readiness Fund that provides technical assistance and supports tropical and sub-tropical developing countries to prepare for future, large-scale, system of positive incentives for REDD+. A Carbon Fund provides results-based finance for emission reductions. | |
Forest Investment Program (FIP) | Mitigation | World Bank | AfDB, ADB EBRD, IDB, World Bank Group | Concessional financing | USD 775 million programme under CIF | Part of CIF one of the three funds under the Strategic Climate Fund. The FIP aims to support developing countries’ efforts to reduce emissions from deforestation and forest degradation by providing scaled-up financing for readiness reforms and public and private investments. It finances programmatic efforts to address the underlying causes of deforestation and forest degradation and to overcome barriers. |
UN Reducing Emissions from Deforestration and Forest Degradation (UN-REDD*) | Mitigation | UN-REDD Programme Executive Board has general oversight for the Programme, taking decisions on the allocation of the UN-REDD Programme fund resources. | UNDP, FAO, UNEP partnership | Grants | Multi-donor Trust Fund | "Purpose of UN-REDD+ is to reduce forest emissions and enhance carbon stocks in forests while contributing to national sustainable development. UN-REDD+ assists countries to develop capacities to meet UNFCCC REDD+ requirements i order to receive results-based payments. UN-REDD+ Programme provides (i) direct support to the design and implementation of National REDD+ Programmes; (ii) complementary tailored support to national REDD+ actions; and (iii) technical capacity building support through sharing of expertise, common approaches, analyses, methodologies, tools, data, best practices and facilitated South-South knowledge sharing." |