Gender and Climate Finance: Double Mainstreaming for Equitable Development

1
Gender and Climate Finance Double
Mainstreaming for Equitable Development

• Liane Schalatek
• HBF North America
• November 19-20, 2008 New York
• UNDP-HBF-GGCA Gender and Climate Finance Workshop

2
Introduction Overview

• Mitigation and adaptation efforts necessary at
  the same time with massive development
  investments (MDGs) in these countries - will be
  very costly, but unavoidable ? Question of GLOBAL
  JUSTICE
• So far, environmental finance mechanisms with
  limited benefit for LDCs and poorest and most
  disadvantaged within countries
• Reasons lack of capital, market access,
  knowledge, skills, decision-making powers
• Women as a group generally least considered by
  modern financing mechanisms
• TODAY proliferation of new instruments for
  climate financing ? Shift from UNFCCC/GEF to WB
  and MDBs good and bad (gender) implications
• CHALLENGE to ensure that gender is an important
  consideration in ongoing climate finance
  negotiations and fund operationalization
• No Climate Justice without Gender Justice

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Overview Recent Cost EstimatesGlobal Mitigation
and Adaptation Measures
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Important climate finance considerations

• ADDITIONALITY should not count towards ODA and
  .7 of GDP obligation (Monterrey Consensus)
• address linkages between development, poverty
  eradication, climate action
• Not AID but COMPENSATORY FINANCE/TRANSFER
  PAYMENTS under a Global Compact (UNFCCC
  preamble common but differentiated
  responsibilities and respective
  capabilities...) currently reliance on mostly
  voluntary contributions
• MDGs Climate Change interaction current MDG
  yearly funding deficit of US 30 bn
• Missing, but needed gender indicators, gender
  budgeting, gender audits for climate finance

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Proliferation of new Climate and Environment
Funds (developed within the last 5 years)
Forests FCPF (WB) Global Init. on Forests
and Climate (Aus) Norwegian
Fund Tropical Forest Account (GEF) Forest
Investment Program (WB)
Biodiversity Life Web (DE)
Other Earth Fund (GEF-IFC) Spanish MDG F/
UNDP
Adaptation UNFCCC-CDM Adapt. Fund SCCF
(GEF) LDCF (GEF) SPA (GEF) Pilot Program on
Climate Resilience (WB)
Climate BioCarbon Funds (WB) Clean Tech.
Fund (WB) CTF (US) Env.Trans F (UK) Cool Earth
Part. (Japan) GEEFREF (EC) German Carbon
Funding GCCAlliance(EC) Scaling-Up Renewable
Energy Prog (WB)
Strategic Climate Fund (WB)
Green denotes development since Summer
2007 Italics denotes bilateral initiatives Bold
denotes multilateral initiatives
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German International Climate Initiative German
Life WebGerman Carbon Financing
UK Env. Transformation Fund African Development
Bank. World Bank
UNFCCC 14 Donors
Australias Global Initiative on Forest and
Climate Indonesia, PNG
Norwegian Rain Forest Initiative Brazil,
Tanzania, Many others
CBD

Global Environment Facility GEF-4 6 Focal
Areas Adaptation Funds Biodiversity
POPS SPA Climate Int. Waters LDCF Land
Degrad Ozone Deplet. SCCF Adaptation Fund To
be developed
World Bank Climate Investment Funds Clean Tech.
Fund Str. Climate Funds
PPCR Forest InveFund
LDC Tech Transfers
Ren. Energies Fund BioCarbon Funds (12
Donors) Forest Carbon Partnership Facility (11
Donors)
Stockholm Convention
Montreal Protocol
UNCCD
European Commission GEEFREF GCCA
Dutch Funds
Japanese Cool Earth Fund
Spanish MDG Fund UNDP Recipient Countries
US Clean Tech Fund
Courtesy David Reed, WWFUS Update LS, 10/01/2008
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• Estimated Finance Volume, New Multilateral
  Climate Funds (as of 9/26/08)
• FUNDS
  INSTITUTION SUM
  DURATION
• Forest Carbon Partnership World
  Bank 165 Mio.
  2008-12
• Fund (FCPF)
• Tropical Forest Account (TFA) GEF
  60 Mio.
  2008-10
• Clean Technology Fund (CTF) World
  Bank 5425 Mio.
  2008-12
• USA 2000 Mio
• UK 1000 Mio
• Japan 1000 Mio
• Germany 730 Mio
• France 500 Mio
• Australia 100 Mio
• Sweden 95 Mio
• Earth Fund
  GEF-IFC 200
  Mio. 2008-(?)
• Strategic Climate Fund with World
  Bank 920 Mio.
  2008-12
• Pilot Program for
• Climate Resilience (PPCR),
• Forest Investment Fund (FIF), and

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World Bank CIFs
Clean Technology FundUS (2B in 5Jahren)
Env. Transformation FundUK (1.5B)
Cool Earth PartnershipJapan (1.2 B)
Climate Investment Funds (World Bank)
Pilot Program on Climate Resilience

• Financing Windows
• Forest Investment Fund
• LDC Tech Transfer
• Carbon Sequestration Storage (CSS) Fund

3-5MICS
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New Funds Focal Areas Gender Implications

• Three main focal areas
• Clean technologies (mitigation)? GOAL
  transformational change of energy sector in
  primarily emerging market countries
• Adaptation/ Climate Resilience Focus on the
  poorest, most affected developing countries
• REDD Reduction of emissions from deforestations
  and degeneration
• ALL the programs in these financing areas need to
  be gender-mainstreamed ? REASON
  gender-specific differences in adaptive and
  mitigative capacity
• CHANCE ? gender perspective to IMPROVE
  effectiveness of climate change finance!

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Some Gender Considerations Mitigation Finance

• Gender-differentiated emissions contribution
  (different/generally lower for women) and
  mitigative capacities ? need for further mapping
• Attitude change needed what has
  mitigation/mitigation finance to do with gender?
  
• Focus on CB and tech transfers

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Closer Look at the CDM

• Mechanism allowing industrialized countries to
  meet their emission reduction target in a
  cost-effective way by financing GHG emissions
  reduction in developing countries.
• BUT of 1,146 CDM projects under way globally,
  only 10 in LDCs (ClimateWire) -gt countries that
  need low-carbon investment most are mostly left
  out
• Only 30 LDCs are party to the Kyoto Protocol and
  eligible to host CDM projects (CDM projects only
  Bangladesh, Bhutan, Cambodia, Nepal and Uganda)
• Most projects in just a few countries India
  (356) China (256) Brazil (144)
• REASONS application procedure (lack of
  know-how)/costs, market-driven push for cheapest
  emissions reduction opportunity ? bias in favor
  of large emitter countries and large-scale
  projects

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CDM and Gender Considerations

• need to include poor/women in design of CDM
  projects streamline application
  procedures/reduce registration fees for small
  projects improve access for small,
  community-based initiatives
• potential of CDM to combine poverty alleviation
  womens empowerment with GHG abatement
• focus on small-scale, off-grid projects
  (mini-hydro, small-scale afforestation/reforestati
  on biomass energy generation )
• Example Grameen Shakti in Bangladesh brings CDM
  to grass-roots by bundling smaller projects
  (rural solar panel/biomass) in deal with World
  Bank projects includes training of female
  engineers to install solar home systems

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Gender Considerations of Adaptation Finance

• Adaptation reduction of vulnerabilities to
  climate change for livelihoods of poor people ?
  vulnerability and poverty strictly connected to
  gender inequality
• Needed mainstreaming of climate policy into
  development policy (which acknowledges the value
  of gender mainstreaming) ? DOUBLE MAINSTREAMING

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Gender Adaptation Finance Instruments

• Existing adaptation funds under UNFCCC (GEF,
  SCDF, LDCF, AF) crossly underfunded ?
  project-by-project, not programmatic approach?
  voluntary contribution instead of polluter pays
  (suggestions like HBFs GDR proposal
  www.ecoequity.org/GDRS)
• NAPAs less than a third mention
  gender-equality as important underlying principle
  gender to be incorporated under NAPA
  finance/budget plans
• New WB Strategic Climate Fund with PPCR, Forest
  Investment Funds others ? pursues
  climate-mainstreaming approach (BUT so far
  mostly gender-unaware)
• Pilot Program for Climate Resilience 5 10
  pilot countries, mainstream climate resilience
  into core development planning and budgeting ?
  NEED to consider GENDER from the very beginning ?
  BEST PRACTISE show it works

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Evolving Climate Finance Architecture Boom or
Bust for Gender Considerations?

• New climate finance architecture with shifts of
  momentum financing might to WB and MDBs from
  GEF and UNFCCC
• PLUS for Gender
• Approach climate change as a development concern
  (WB and MDBs with gender-awareness UNFCCC not)
• WB and most MDBs have gender policies and are
  committed to gender mainstreaming (UNFCCC not)
• Gender considerations as conditionality for
  dispersing funds?
• WB/MDB Experience with social sector programs
  (health, education)
• MINUS for Gender
• Focus on market-driven solutions (carbon finance)
• MDBs are part of the problem (investments in
  oil, gas, mining)
• Focus on scaled-up mitigation interventions and
  large-scale technology
• Donor driven (see conditionality question)
• Mostly concessional finance, not grants treated
  as ODA
• Few stakeholders from recipient countries
  (including women) consulted

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Some Recommendations

• Raise gender-awareness and commitment to gender
  equity with all institutions and donors
  (multilateral, bilateral, private) in the new
  climate finance architecture
• Develop a set of gender-criteria for new funds
• Gender audits of new climate funding mechanisms
• Gender budgets and gender accounting for
  projects/programs financed under these new
  instruments (international and national level)
• Improve womens participation in stakeholder and
  consultation processes for climate finance issues
• Strive for a global North-South deal on climate
  finance on the basis of no climate justice
  without gender justice (also vis-à-vis Southern
  govts. and global civil society)