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Financing Sustainable Urbanization, Resilience and Adaptation

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Session parameters

• How can investment decisions for urban infrastructure be improved by city-wide coordination and connection?

• How can international climate finance mechanisms be tapped to finance resilience?

• How can household, commercial and communal assets be created and leveraged by implementing and improving transit systems and stations in cities?

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Agenda

• Who are we, what do we do and our focus areas• Experience and evidence• Applications and examples

Global climate and development goals will not be achieved without addressing

inequality of access and opportunity

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The Gold Standard Foundation

• Established by WWF to define, demonstrate & drive best practice in in climate & development finance - on behalf of civil society

• Now endorsed by more than 80 international NGOs

• Creating trust to drive investment

• Assurance of asset integrity & sustainable development impact

• Differentiating transformational change from incremental change

• More than 1000 projects in 50 countries undergoing certification

• Gold Standard approach legislated by Switzerland

• Used by the UN and NGOs to finance their own activities

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The Gold Standard approach

• Maximise the impact of every dollar • Review & assurance of design, implementation and management

– Detailed, transparent Project Design Documents– Pre-feasibility Assessment– Local Stakeholder Consultations– Do No Harm Assessment– Sustainable Development Matrix– Opportunity for civil society to review and input to projects– Regular, independent audits of project outcomes

• Certified impacts– Transferable Gold Standard certificates or result-based payments

• Applied to regulatory schemes and philanthropic activities

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Best in class partners

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Carbon markets as a financial transfer mechanism

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What value a the broader focus?

SOCIAL

ECONOMIC & TECHNOLOGY

ENVIRONMENTAL

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Capture, quantify & financially value the benefits of Gold Standard projects beyond carbon

The Brief:

Towards Paris 2015 – To demonstrate the impact investment of strong, effective climate action

The Rationale:

109 Gold Standard certified projects with verified co-benefits, plus ‘deep dive’ case studies

The Evidence:

The Economics of Ecosystems and Biodiversity (TEEB), the System of Environmental-Economic Accounting (SEEA) and the Social Return on Investment (SROI) methodology.

The Tools:

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Identifying the benefits beyond carbon

SOCIALECONOMICENVIRONMENTAL SOCIO-ECONOMIC

Biodiversity Balance of Payments

Employment Livelihood Health Impacts

Afforestation / Reforestation

Hectares of forest created/preserved

Agroforestryemployment

Wind Savings in fossilfuel imports

Construction& Operation

Cookstoves Manufacturing and distribution

Financialsavings fromreduced fuel use

Reducedrespiratoryillnesses / death

Water Filters Distribution and installation

Financialsavings fromreduced fuel use

Reduced waterborne diseases

Biogas Distribution and installation

Financial savingsfrom reduced fuel use

Reducedrespiratoryillnesses / death

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Economic value over crediting period (USD)

SOCIALECONOMICENVIRONMENTAL SOCIO-ECONOMIC

Biodiversity Balance of Payments

Employment Livelihood Health Impacts

Afforestation / Reforestation

$37m $249m

Wind $693 $81m

Cookstoves Not quantified $33m $1 billion $628m

Water Filters Not quantified $21m Not quantified $3 billion

Biogas $9m $43m $180m

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Economic value per tonne of CO2 (USD)

SOCIALECONOMICENVIRONMENTAL SOCIO-ECONOMIC

Biodiversity Balance of Payments

Employment Livelihood Health Impacts

Afforestation / Reforestation

$150 $27

Wind $19 $2

Cookstoves Not quantified $3 $93 $55

Water Filters Not quantified $1 Not quantified $117

Biogas $2 $7 $32

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• Indigenous people living in Sichuan Panda habitat• Firewood is the main source of energy -26 tons per household per year• Three stone stoves for food, feed, heating • Degrading landscape, 3 months of time, Massive indoor air pollution

Meet the Yi

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From: To:

Source: WWF China

• Energy Efficient stoves with chimney: • 50-70% less firewood needed and extracts smoke • 1,600 stoves installed, estimated demand min 20,000

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Conservation with all its facets:• Climate change mitigation• Biodiversity protection• Improved livelihoods• Indigenous rights• Women empowerment• Awareness, education

So far, WWF projects in China, Nepal, Kenya, Madagascar are good examples of these.

ResultOutcomes/y Value in $/y

Climate: 16,000 tons CO2 emission reduction

160,000

Biodiversity: 17,500 tons of wood = 224 ha

349,000

Health: 2.75 prevented deaths

325,000

Livelihoods: 433 hours saved = $374 per family

600,000

TOTAL: 1,434,000

Total value 9 times the carbon value

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Where do we go from here? • Continue to drive best practice into

carbon markets

• Apply our experience to new tools e.g. NAMAs

• Apply this approach at scale – Cities - a problem and opportunity for low

carbon inclusive growth

– Land-use & landscapes – currently responsible for 20% of all emissions

– Water & Health (adaptation) – helping to safeguard livelihoods of the poor

– Linking public & private sector investments (sustainable infrastructure, supply chains)

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Gold Standard Cities

• ‘Investment ready’ governance and financing framework• Defined activity areas and funding sources

– Domestic funding– ODA and Climate Finance– Private sector investment

• Defined goals– Mitigation– Resilience– Employment & livelihoods– Pro-poor / gender empowerment focus

• Clear benchmarks and baselines• Consistent reporting and impact measurement tools

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Pilot Cities

• New Delhi, India (Bottom up approach)– 8m slum dwellers, massive equity issues– Complex interventions needed for scale– What measures will drive the largest transformation and wider impact?

• Columbo, Sri Lanka (Top down approach)– Strategic partnership with World Bank & Sril Lankan government– Design Columbo Green Growth Programme & MRV framework– Sector focus (Buildings, Transport, Agriculture & land management)

• Sakarya, Turkey (both)– UNDP supported programme– Baselines and prioritisation of programmes– Business case development

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Thank you

adrian.rimmer@goldstandard.orgwww.goldstandard.org (impact report)