The New Financing Architecture for the Environment

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The New Financing Architecture for the
Environment and some associated issues

• Timothy Geer, WWF International
• Poverty Environment Partnership
• Manila, June 2008

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What will be covered

1. The landscape of new funds for CC and the
   Environment
2. Some issues regarding the new funds

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The Landscape of New Funds for CC and the
EnvironmentStudy commissioned from ODI
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New funds! 12 in 12 months.Combined funding
dwarfs GEF.

• Global Climate Change Alliance of the European
  Commission (GCCA)
• International window of the Environmental
  Transformation Fund of the United Kingdom
• German International Climate Initiative
• German Life Web Initiative
• Spanish-UNDP Spanish MDG Fund
• NORAD Rainforest Initiative
• Japanese Cool Earth Partnership
• Australian Global Initiative on Forests and
  Climate
• World Bank Forest Carbon Partnership Fund (FCPF)
• World Bank Clean Technology Fund (CTF)
• GEF-IFC Earth Fund
• World Bank Strategic Climate Fund (SCF) and Pilot
  Program for Climate Resilience (PPCR)
• Kyoto Protocol Adaptation Fund

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Some issues regarding the new funds
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Issue 1. Climate Change funding must not
reinvent Aid
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Keep the principles!Climate Change Funds
Development and Environment

• Both Development Environment (MDGs)
• Balance between
• Global Public Goods
• Environmental security
• Development options
• Keep coherence with
• MDGs
• National Development Strategies (incl PRSs)
• Aid Effectiveness (Paris Principles)
• Aid modalities (Joint Assistance Strategies)

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Avoid risk.Avoid old habits.

• Build capacity, not just fund flows - income is
  not an outcome!
• More dispersed mechanisms dont engage partners
  they suffocate them.
• Work with existing systems/mechanisms/tools
  dont create new ones the landscape is confused
  enough already.
• Not substitutive of Aid commitments. Additional
  to them.
• If you want to do something differenrt, then
  focus on most pressing needs, not just
  traditional partners

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The risks of a different path

• Not making common but differentiated
  responsibilities work for and with equality
  and respective capabilities.
• Increased layers and transaction costs, often for
  countries most at risk of CC. Let them keep
  their eye on the ball.
• Credibility It sells. Dont turn away from good
  practices when those qualities are most needed.
  Avoid a culture of deception cf Scott McLellan

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2. The Missing Link
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The Missing Link
National Global (Regional)
Objectives MDGs MDGs
Strategy Poverty Reduction Strategy ?
Principles underpinning funding Aid effectiveness Natl Ownership Alignment Harmonization Managing for results Mutual accountability ?
Modalities Joint Assistance Strategy (Coordination, Coherence ) ?
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Where is the Global Strategy Governance?

• MEAs
• Dispersed, not harmonized, silos,
  balkanization.
• Institutions
• Limited in scope and remit.
• Confusion between financing and strategy.
• Institutional jockeying for position.
• Form Follows Function please.

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Conclusions

• Wow! We love the commitment!!! Thank you!!!
• Global Climate Change Funds wont be successful -
• Without adherence to accepted principles.
• Without operational harmonization, coordination
  and coherence.
• Architecture without an architect doesnt make
  sense! Oh, for a common global environment CC
  strategy and (good) governance for it!
• Will this be harder than beating Climate Change?

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