Exercise: Pros and Cons of National Climate Funds.
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Transcript of Exercise: Pros and Cons of National Climate Funds.
Exercise: Pros and Cons of National Climate Funds
4
What you can expect to learn from this exercise
Get an understanding of :- Which criteria should be considered when deciding on establishing
national climate fund(s)
Gain an awareness of:- The pros and cons of national climate fund(s)
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Overview of the assessment criteria for establishing national climate fund(s)
Group discussions
Presentation of results
Reflections
Agenda
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Making a decision on establishing national climate fund(s)
Source: UNDP 2011UNDP Asia Pacific Regional Center 2012
There are different modalities for channelling climate finance…• Through direct budget support:
- A share of climate finance is already flowing through the formal budget system in a number of countries, e.g. Lesotho, Mauritius, the Seychelles, Solomon Islands, Bangladesh , Nepal, Thailand, etc.
• Using existing funds or public institutions- Creating a special funding window / program for climate change activities within an existing
public fund or bank, e.g. Mexico green mortgage program for energy-efficient housing
• Project finance- Cash transfers are made directly into the bank accounts of the implementing organisations.
Many NGOs receive funding in this way and multi- and bilateral partners provide support to government agencies through similar stand-alone projects
• Setting up national climate fund(s)- Establishing a new institution, specialised in climate change only, e.g. Bangladesh, Rwanda,
Cambodia, etc.
A combination of several modalities is possible and often necessary!
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Establishing national climate fund(s)?
Source: UNDP 2011UNDP Asia Pacific Regional Center 2012
A careful assessment is needed before making a decision on establishing national climate fund(s)
Strategic role Political feasibility
Institutional and human
capacity
Timing Financial sustainability
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Your task
Break up into groups of 4 people Follow the instructions of the step-by-step guide which you will find in the hand-
out
• Step 1: Carefully read the information provided in the hand-out
• Step 2: Select the arguments (pros / cons ) and structure them according to the assessment criteria presented
• Step 3: Think of additional factors based on your experience in your country
• Step 4: Prepare and share a short presentation that summarises your discussion
Now it is your turn to do the exercise!
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• What did you learn from this exercise?
• What aspects or arguments did you find useful for the context of your country? What aspects would present the biggest challenge?
• How do you assess the need of establishing a climate fund in your country?
Reflections
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Checklist to get CLIF Ready
According to what you learned from this exercise you could …
Check what modalities for channelling climate finance are feasible in your country
Check whether a national climate fund would be a competitive option in the policy and institutional context of your country
Next Steps