Second Experts’ Meeting of the

ENVIRONET-WP-STAT Task Team

on OECD Rio Markers, Environment &

Development Finance Statistics

First proposals for improvements

to the Rio marker definitions (RD 5)

Outline

1. What elements in the definitions should remainunchanged

2. Proposed adjustments to the mitigation marker (Option 8)

3. Proposed adjustments to the adaptation marker (Option 9)

4. Clarification for distinguishing between principal and significant

5. Automatic marking of Rio-marked projects againstthe Environment marker (Option 11)

1. What elements in the definitions should remain unchanged

The methodology is purpose-based (indicatesdonors’ policy objectives)

The definitions are widely accepted.

The scoring system has three values: principal, significant, not targeted.

=> the objective is not to change the methodologyfundamentally but to make adjustments to reduceroom for interpretation and improvecomparability in reporting.

2. Proposed adjustments to the mitigation marker (Option 8)

DEFINITION

Current:

An activity should be classified as climate-change-mitigation related (scorePrincipal or Significant) if:It contributes to the objective of stabilisation of greenhouse gas (GHG)concentrations in the atmosphere at a level that would prevent dangerousanthropogenic interference with the climate system by promoting efforts toreduce or limit GHG emissions or to enhance GHG sequestration.

Proposed adjustments:

None

2. Proposed adjustments to the mitigation marker (O8)

CRITERIA FOR ELIGIBILITY

Current: The activity contributes toa) the mitigation of climate change by limiting anthropogenic emissions of GHGs,

including gases regulated by the Montreal Protocol; orb) the protection and/or enhancement of GHG sinks and reservoirs; orc) the integration of climate change concerns with the recipient countries’

development objectives through institution building, capacity development,strengthening the regulatory and policy framework, or research; or

d) developing countries’ efforts to meet their obligations under the Convention.

The activity will score “principal objective” if it directly and explicitly aims to achieveone or more of the above four criteria.

Proposed adjustments => introduce specifications• General principles (possibly by sector) (drawing on

the MDB approach)• Reference to GHG savings

2. Proposed adjustments to the mitigation marker (O8)

EXAMPLES OF TYPICAL ACTIVITIES

Current:

List of typical examples in sectors and typical non-sectoractivities.

Proposed adjustments:

=> introduce additional examples drawing from the MDB positive list

3. Proposed adjustments to the adaptation marker (Option 9)

DEFINITION

Current: An activity should be classified as climate-change-adaptationrelated (score Principal or Significant) if:It intends to reduce the vulnerability of human or natural systems to the impacts of climate change and climate-related risks, by maintaining or increasing adaptive capacity and resilience. This encompasses a range of activities from information and knowledge generation, to capacity development, planning and the implementation of climate change adaptation actions.

Proposed adjustments:

None

3. Proposed adjustments to the adaptation marker (O9)

CRITERIA FOR ELIGIBILITY

Current:a) the climate change adaptation objective is explicitly indicated in the activity documentation; and b) the activity contains specific measures targeting the definition above.

Carrying out a climate change adaptation analysis, either separately or as an integral part of agencies’ standard procedures, facilitates this approach.

Proposed adjustments => introduce the three steps outlinedin the MDB approach

• Context of vulnerability• Statement of intent to address climate vulnerability• Clear and direct link between vulnerability & project

3. Proposed adjustments to the adaptation marker (O9)

EXAMPLES OF TYPICAL ACTIVITIES

Current:Examples of typical enabling activities for adaptation and examples of typical sectoral activities.

Proposed adjustments:

introduce additional examples drawing from the MDB listof indicative examples highlighting:

- Sector- Context of climate vulnerability- Adaptation activity

4. Clarification for distinguishing between principal and significant (Option 7)

Current guidance provided in the form of Frequently Asked Questions (FAQs)

Possibilities for further clarification?

• Set a minimum budget component threshold forqualifying as principal (e.g. 80% of the budget)

• Report separately minor project componentscontributing to climate.

5. Automatic marking of Rio-marked projects against the Environment marker (Option 11)

Proposed ruling in CRS Reporting Check list:

« When Rio markers climate mitigation,biodiversity or desertification are set to 1 or 2,Aid to environment is generally also set to 1 or 2(exceptions relate to projects marked against Riomarkers but harmful to local environment). »

avoid oversights and trivial mistakes inreporting

retains some flexibility.