Successful Models inspiring Climate Change Finance
“This is one of the most important climate discussions in Warsaw. Your successful financial innovations for adaptation and mitigation should inspire climate change finance. Do not keep this knowledge and practice in this room - share and inspire,” said Christiana Figueres, Chief Executive of the UN’s Framework Convention on Climate Change (UNFCCC).
She was speaking at the Momentum for Change (MFC) event on Financing Climate-Friendly Investments at the UNFCCC’s COP19 in Warsaw, encouraging winners to share their success to help raise ambition and scale up the global commitment to act on climate change.
There is a need to shift development onto a more sustainable pathway without affecting the economy. Governments can be helped to leverage private sector investments towards climate friendly development using strategically targeted public funds and policies. Each of us can play a role in turning practical ideas into action on the ground. It is exciting and inspiring to see what has already been done by different actors across various sectors and countries. These are already demonstrating concrete results, from carbon markets to Geographical Information Systems (GIS).
The winning Lighthouse Activities for the MFC Finance Pillar 2013 are selected as shining examples of climate action across the globe, combining innovation and passion. The winners showcased their projects and experiences promoting low-carbon growth and highly climate resilient communities through the use of innovative financing mechanisms.
Experiences ranged from supporting low-carbon growth in China to financing sustainable housing in Mexico. Within the mandatory carbon markets framework, the Director General of China CDM Fund (CCDMF) explained how through investments they provide funds to enterprises, mobilize significant market capital, and achieve verified emission reduction effects with direct reduction of over 7 million tons of CO2 equivalent. CCDMF represent a good experience to help address the enormous climate financing gap and support ambitious climate actions in China. While from the voluntary carbon markets a successful project example was reported by Carbon Clear, that showcased their Low Smoke Stoves project in Sudan. The project has already 5,000 stoves in use in El Fasher. It has multiple benefits such as improved access to modern energy, reduced indoor air pollution, strengthened local delivery infrastructure and reduced regional deforestation.
Another interesting example was the Sustainable Energy Finance (SEF) Program, a unique multi-benefits model in the Philippines leveraging private sector investment in sustainable energy projects, reducing greenhouse emissions, improving energy security and strengthening economic development.
Looking at multi-regional programs specifically targeting agriculture systems and farmers, a great example came from Redava with its Rental Solar Farms System Project. This project does not impose big up-front investment costs and long term obligations to farmers to get solar panels, but allows farmers to rent them with a 35% cost savings compared to diesel power. A cost-effective, convenient and clean solution that means a decrease of diesel consumption, improved access to electricity and a reduction of emissions.
Last but not least, IFAD’s Adaptation for Smallholder Agriculture Programme (ASAP) was showcased as a unique example tacking climate adaptation and channeling climate finance to smallholder farmers in accessing the tools and technologies to build their resilience to climate change. Elwyn-Grainger Jones presented how ASAP empowers community-based organizations to make use of new climate risk management skills, information and technologies and combine them with tried and tested approaches to sustainable land and water management. He referred to the work ASAP in doing in Yemen, with improved weather station networks providing farmers with more reliable seasonal forecasts while mapping technologies help to better understand and monitor landscape use in a changing environment.