GEF Focal Area Cross Cutting Strategies Climate

GEF Focal Area & Cross Cutting Strategies Climate Change Mitigation benoit. lebot@undp. org GEF Expanded Constituency Workshop Central Africa Constituency 15 -17 February, 2011 Hotel Memling, Kinshasa, DRC

Can we avoid Climate Change? NO Can we reduce Climate Change? YES 2

The International Context encourages climate change mitigation activities • The Cancun COP 16 confirms the target of maintaining global warming below 2°C • Each country to develop National Appropriate Mitigation Actions (NAMAs) • The price of conventional energy is high & will continue to rise • Role of deforestation understood & accepted

World Greenhouse Gas Emissions 14% 8% F Gas 1% 18% CH 4 N 2 O CO 2 From LUCF CO 2 From Combustion 59%

Mainstreaming CCRM into UNDP Core Activities- RBA RR Cluster Meeting Greenhouse gas emissions in Sub-Sahara countries 5% 20% CO 2 CH 4 11% F Gas 0% N 2 O CO 2 From LUCF 64%

Source: IPCC AR 4, Synthesis Report (shares are for 2004)

All sectors & regions have the potential to contribute Note: estimates don’t include non-technical options such as lifestyle changes

ases se G Hou n aste Gree d in ior & W Tren Behav Efficiency Renew able En RED ergy D& Sequ estr Low ation Car bon Path 1 2 3 4

The goal of GEF Climate Change Mitigation is to support countries toward a low-carbon development path • • • Promote low-carbon technologies Promote energy efficiency Promote renewable energy Low-carbon urban transport Sustainable management land-use change, & forestry (LULUCF) • Enabling Activities & Capacity Building

GEF 5 promotes low-carbon technologies 1. Technologies demonstrated, deployed & transferred 2. Enabling policy environment and mechanisms Prevision $300 M (out of $1 350 M GEF 5)

GEF 5 promotes energy efficiency 1. Policy, legal and regulatory frameworks 2. Sustainable financing mechanisms Prevision $260 M (out of $1 350 M GEF 5)

GEF 5 promotes renewable energy 1. Policy and regulatory frameworks 2. Increased investment in RE technologies Prevision $320 M (out of $1 350 M GEF 5)

GEF 5 promotes sustainable urban transport 1. Legal and regulatory frameworks 2. Increased investment in sustainable transport Prevision $250 M (out of $1 350 M GEF 5)

GEF 5 promotes the Conservation & enhancement of carbon stocks through LULUCF 1. Good management practices in LULUCF 2. Restoration and enhancement of carbon stocks in forests and non-forest lands (peatlands) Prevision $50 M (out of $1 350 M GEF 5)

GEF 5 supports enabling activities & capacity building 1. National Communications and Other Obligations under the UNFCCC 2. Countries can also receive support for vulnerability & adaptation assessments, capacity building, and technology needs assessments Prevision $50 M (out of $1 350 M GEF 5)

GEF CC Mitigation & Carbon Finance (i) capacity building to help create enabling legal & regulatory environments; (ii) support of programmatic carbon finance & other activities under the post-2012 climate regime; (iii)demonstration of technical and financial viabilities of technologies; (iv)partial risk guarantees and contingent financing for carbon finance projects; and (v) co-financing of innovative projects, with credits to be retained in the recipient country for further project replication.

Features of GEF & CDM GEF CDM Mandate Financial mechanism of UNFCCC Market-based mechanism of KP Objective To transform the markets toward less-carbon-intensive paths To meet emissions targets for developed countries and provide finances resources and technology for developing countries Strategy Barrier removal; long-term; catalytic Project based; focusing on direct emissions reduction Modality Upfront grant or concessional financing for agreed incremental costs Payment on delivery of emissions reduction (to improve project revenue streams) Project type Preventive measures to reduce/avoid CO 2; primarily RE, EE, and transport projects End-of-pipe fixes to capture/decompose gases of high GWP (HFC, CH 4); relatively few RE, EE, transport projects M&V Ex ante estimate; weak traceability; self-reporting Rigorous methodology; quantified, monitored, verified, and certified

GEF & CDM: “Rule of Thumb” in the Past What GEF has supported What GEF has shied away from üGEF creates enabling legal, regulatory environment; CF supports specific projects. o Creation and operation of DNAs üGEF demonstrates technical and financial viability; CF replicates. o PIN/PDD development üGEF provides partial risk guarantees; CF participates in project financing. üGEF provides funding from non-CC focal areas; CF project earns credits from reduced/avoided emissions. o CDM methodology development o CDM project verification and certification o (Co-)Financing projects that earn CERs

Climate Change Mitigation under GEF 5 • Focal Area Allocation $1, 360 million • Under STAR $1, 088 million • Contribution to Sustainable Forest Management $100 million.

As Climate Changes, Can We? Kofi Annan, UN SG Wednesday, November 8, 2006

A

Thank you for your kind attention benoit. lebot@undp. org