Overview of climate change financing mechanisms in Cambodia

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Patricia Gorin, FAO Rome
Vientiane, 29 Aug 2011
Opportunities
Challenges
Carbon markets
(CDM and
voluntary)
Private sector
Carbon markets
will bring additional
financial flows but
not enough to meet
all the needs.
 explore other
sources of finance
Catalyzing the
private sector
investments:
Strong & coherent
national policies,
transparent &
trustworthy legal
systems, appropriate
tax-regime
Standardization that would
give investors greater
confidence. Develop long-term
national policies and link it to
international legal frameworks
Plans and Strategies:
Community Based
Disaster Risk
Reduction Strategy for
Flood and Drought
(2007 – 2012)
Climate strategies &
programmes to
mainstream lowcarbon and
environmental
practices
Development of a
National Green
Growth Roadmap
(2009)
Two National
Communications
and a National
Adaptation
Programme of
Action (NAPA)
Climate
change
Assist with national
policy development,
awareness raising
and project
identification
National Strategic
Development Plan
(NSDP) for 2010–2013.
Unclear procedure,
timeline, and
resources
Cambodian Climate
Change Alliance
(CCCA)
Diverse financing:
World Bank (WB) and
Asian Development
Bank (ADB)
•Strategic Programme for Climate
Resilience (SPCR) (2010-2012)
Global Environment
Facility (GEF) and
UNDP Trust Fund
•Support: sustainable livelihoods
• climate adaptation & mitigation
strategies
• biodiversity conservation
Despite SLM and SFM being a priority for the Cambodian
government, it has been managed in a fragmented way, with
limited coordination and collaboration
Cambodia is among the most forested countries in Southeast
Asia. Approximately 59% of its land is covered with forests
(10.7 million ha)
2008: one of the first countries in the region to address REDD+
with pilot activities
National target: maintaining 60% forest cover, one of the main
objectives of the Royal Government of Cambodia‘s
Rectangular Strategy
Cambodia’s final REDD+ Readiness Preparation Proposal (R-PP)
was submitted to the Forest Carbon Partnership Facility
(FCPF) in March 2011. Total commitments (June 2011 – May
2014): US$ 10,905,000
Risks
Limited
capacity to
monitor forest
management
and distribute
revenues
The issue of
land tenure
Lack of
ecological
indicators
Land
alienation
among
indigenous
communities
REDD mechanism is an answer to strengthen institutional
capacity, sustainable financing and engagement with local
communities
Voluntary
Market
Clean
Development
Mechanism
• Two REDD projects on the ground: involvement
of private sector developers as well as NGOs,
government and the community
• January 2006: 1st CDM project approved
• May 2011: 4 other CDM projects registered
Innovative financing mechanism which is increasing, but still new
and long methodology development, lack of knowledge, etc.
Need to strengthen country ownership by government of local
organizations
LAO PDR
Plans and Strategies:
Nov 2008 - Oct
2011: Second
National
Communication on
Climate Change
National
Appropriate
Mitigation Action
(NAMA) to be
developed
May 2009: National
Adaptation
Programme of
Action (NAPA)
submission
Climate
change
Capacity
implementation of
adaptation and
mitigation actions
CC awareness,
mainstreaming &
capacity building,
strengthening
policies &
institutions
2009-2020: National
Strategy and its
Action Plan on
Climate Change
(NSCC)
LAO PDR
3 major National State Funds related to NRM:
The Poverty Reduction Fund (PRF) (2006): financially
autonomous organization ( WB, SDC). Finance smallscale infrastructure and services to strengthen local
capacity
The Environmental Protection Fund (EPF) (GoL 2005):
autonomous organization (WB, ADB) strengthen
environmental protection, sustainable NRM, biodiversity
conservation and community development
The Forestry and Forest Resource Development Fund
(FRDF) (MAF 2005): management of Protected Forest
Areas and National Biodiversity Conservation Forests
LAO PDR
Diverse financing:
The Agro-Biodiversity • Programme-based approach projects in
Initiative (TABI) (GoL, agriculture, conservation and poverty
reduction
SDC 2009-2011)
The Asian
Development Fund
(ADF) (2010-2017)
• projects to improve agricultural
productivity (sustainable use of NR)
and build the capacity of Government
The Asian
Development Bank
(ADB) (2010-2013)
• Capacity Enhancement for Coping with
Climate Change
• Improving the Resilience of the
Least Developed
Agriculture Sector in Lao PDR to
Countries Fund (LDCF) Climate Change Impacts (2010-2014)
USAID, GIZ, UNEP
• Climate Adaptation and Mitigation
Strategies
UN REDD in LAO PDR
Forestry Strategy 2020 and the National Action Plan
and Strategy on GHG Emission Mitigation: long-term
target of increasing national forest cover from currently ca.
40 to 70%.
3 REDD+ projects are currently active in the country
Carbon Markets
Voluntary
Market
Clean
Development
Mechanism
(CDM)
• Information sharing increase between the
GoL and the private sector to develop forest
carbon projects
• Government supports the creation of
comprehensive legal framework
• One project registered, 4 projects approved, 3
projects at validation stage, 7 projects at
preparation stage
Low funding in CC issues
Need to strengthen institutional capacity, coordination and
cooperation within the different sectors
Plans and Strategies:
Strategic Plan on
Climate Change
(2008 to 2012)
Master Plan on
Climate Change
(2010-2019)
participation of all
sectors (public and
private)
11th National
Economic and
Social Development
Plan (2012-2016):
low carbon
economy
Adapt to CC
impacts and
promote GHG
mitigation activities
Climate
change
Nov 2000: 1st
National
Communication
Feb 2011: 2nd
National
Communication
Support
international
cooperation to
achieve sustainable
development
Diverse financing:
The Clean Technology
•Direct and indirect investments in
Fund (CTF) Investment
renewable energy and energy
Plan (Jun 2011- Dec
efficiency.
2016)
World Bank grant
•To analyze and design GHG
trading programs
The Global Environment •locally-based climate risk reduction
Facility (GEF) Special
activities, embedded in the national
Climate Change Fund
disaster management
(SCCF)
The UNEP / GEF’s
Special Grant
Programme (SGP)
•Natural Resources Management,
GHG reductions
Diverse financing:
Small Grants
Programme (SGP)
•for Operations to Promote Tropical
Forests: small-scale community
forest management
The Asian
Development Bank • is financing Climate Risk
Management Assessment for
(ADB), SGP for
Agriculture in Thailand
adaptation
•Strengthen national and local
The GEF Trust Fund capacity for mainstreaming
(Jun 2011-Jun 2015) biodiversity
Proposal of a voluntary fund for payments towards
supporting REDD.
Thailand is willing to develop a REDD national strategy and
adopt a comprehensive REDD Readiness Plan (R-PP) by
August 2012
Estimated costs of REDD interventions: US$ 13.74 million
Voluntary
Market
• The Thailand Greenhouse Gas
Management Organization (TGO,
2008) is actively working to develop a
voluntary carbon market
Clean
Development • The TGO promote also the CDM
registered CDM projects and 131
Mechanism • 46
projects approved
(CDM)
Plans and Strategies:
National Target
Program to
Respond to Climate
Change (2009-2013)
National Strategy for
Disaster Prevention,
Response and
Mitigation 2020
(adopted in 2008)
Climate
change
Action Plan
Framework for
Adaptation to CC in
the Agriculture &
Rural Development
Sector (2008-2020)
assess CC impacts,
low-carbon
economy
Diverse financing:
The Clean Technology •US$ 3.195 billion (government, MDB,
Fund (CTF) Investment
carbon finance and private sector)
Plan (2010- 2013)
The governments of
Vietnam, Finland and •6-years project conservation of
the Netherlands (grants), biodiversity
the WB (credit)
ADB’s Trust Fund for
Forests (2006-2014)
•sustainable forest management; and
ADB Small Grant for Adaptation
Project
ADB, and the “Agence
Française de
Développement”
•enhance rural livelihood
opportunities, strengthening capacity
of water-related service providers
Diverse financing:
United States Agency •Climate Adaptation and Mitigation
for International
Strategies (biodiversity conservation).
Development (USAID) 2010-2014. US$ 34,000,000
GEF’s SCCF (20102014) and GEF Trust
Fund
•climate-resilient development
planning and biodiversity
3 major National Trust Funds
The Vietnam Environmental
Protection Fund (VEPF)
The Vietnam Conservation Fund
(VCF) funded by GEF, EC
The Trust Fund for Forests, and
Forest Protection and
Development Fund (FPDF)
REDD+ activities outlined in the Readiness Preparation
Plan. 2010-2013. US$ 3,619,000
Potential revenues from REDD+: about US$
80-100 million per year
Challenges -inconsistency in forest definition,
- land use classification ,
- insufficient capacity for MRV,
- lack of coordination for data discrepancy and
sharing, and insufficient financing support
JICA, EU and the Finland-FAO Forest Partnership are
assisting Vietnam to fully utilize its REDD+ potential
Voluntary
Market
• Private sector increasing interest in
developing forest carbon projects
• Increasing number of CDM projects: 34 CDM
Clean
projects registered
Development
• Vietnam ranks 11th globally in registered
Mechanism
CDM project quantity and 8th in issued CERs
(CDM)
amount
Numerous CC financing in Vietnam
Need to address the legal issues related to land tenure,
speed up the REDD+ implementation process, and take full
ownership of the multiple CC related initiatives in the country.
Patricia Gorin
Climate Change and Environment Officer
FAO Rome, Investment Centre (TCID)
Patricia.Gorin@fao.org
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