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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