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climate finance

Efforts to Protect Tropical Forests Take Big Step Forward – and Money Awaits

Ken Andrasko's picture


 

Last week in Paris, the Forest Carbon Partnership Facility’s partners and stakeholders agreed on groundbreaking rules for investments in tropical forest protection in developing nations – a framework that will also help reduce greenhouse gas emissions in our rapidly warming world.

Capping an intense five days of negotiations, this major milestone unblocks $390 million in funding held in escrow in the facility’s Carbon Fund. The agreement (formally known as a Methodological Framework) spells out how tropical countries should design and implement large-scale protection programs in the lowland and mountain forests of the tropics.

In return, the countries get results-based payments from donor countries that support climate policy and social development goals.

It’s the first time an international organization has put on paper the operational rules for purchasing so-called REDD+ credits to reduce greenhouse gas emissions. (REDD is short for Reducing Emissions from Deforestation and Forest Degradation.)

Reaching consensus on the operational roadmap for REDD+ required input from a diverse set of sometimes-contradictory viewpoints.

Seated at the table to negotiate through the many issues in Paris were donor countries, private corporations, officials from tropical countries willing to experiment with REDD+, civil society organizations and representatives from indigenous groups who were championing the rights of traditional dwellers in tropical forests.

New Funding to Expand Carbon Finance in Low-Income Countries

Brice Jean Marie Quesnel's picture





One of the few bright spots at the recent UN climate talks in Warsaw was the announcement of new financial commitments to the World Bank’s BioCarbon Fund.

Coming hard on the heels of that groundbreaking initiative for sustainable forest landscapes is another piece of good news in international efforts to bring more carbon finance to low-income nations.

The governments of the United Kingdom and Sweden and the Switzerland-based Climate Cent Foundation have pledged more than $125 million for the World Bank’s Carbon Initiative for Development (Ci-Dev), a financial initiative that, like the third tranche of the BioCarbon Fund, will help the least-developed countries access financing for low-carbon investments.

More specifically, the new funding allows the World Bank to focus on helping the world’s poorest countries – especially in Africa – access carbon finance to develop clean energy sources.

It will enable the development and scaling up of a diverse range of projects similar to household biogas systems in Nepal or solar home systems in Bangladesh. It’s also an example of how the World Bank continues its efforts to mobilize private-sector investments for clean development and climate mitigation.

We’re showing, through actions on the ground, that putting a price on carbon is a key part of the solution to the climate challenge.

Treading Water While Sea Levels Rise

Rachel Kyte's picture
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At the UN climate talks that ended wearily on Saturday night in Warsaw, negotiators showed little appetite for making firm climate finance commitments or promising ambitious climate action. But they did succeed, again, in keeping hope alive for a 2015 agreement.

The final outcome was a broad framework agreement that outlines a system for pledging emissions cuts and a new mechanism to tackle loss and damage. There were new pledges and payments for reducing deforestation through REDD+ and for the Adaptation Fund, however the meeting did little more than avoid creating roadblocks on the road to a Paris agreement in 2015. In one of the few new financial commitments, the United Kingdom, Norway, and the United States together contributed $280 million to building sustainable landscapes through the BioCarbon Fund set up by the World Bank Group.

At the same time, COP19 was an increasingly emotional Conference of Parties to the UN Framework Convention on Climate Change. The overture to this round of climate drama was provided by Typhoon Haiyan. Haiyan added, sadly, more to the mounting evidence of the costs of failure in tackling climate change. The language is inexorably moving towards one of solidarity, of justice. But for the moment, this framing is insufficient to prevent emission reduction commitments from moving backwards.

And yet again, as was the case in the climate conferences in Cancun, Durban, Doha, and now Warsaw, outside the official negotiations, there is growing pragmatic climate action driven by climate leaders from every walk of life.

The sense of urgency and opportunity is building, it just fails to translate into textual agreement.

Committed to Healthier Forests and Landscapes

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Today, three countries – Norway, the United Kingdom and the United States – pledged $280 million to the World Bank’s BioCarbon Fund, kicking off a groundbreaking initiative for sustainable forest landscapes. 

Their significant commitment to land and forest preservation is important for two reasons.

The new Initiative for Sustainable Forest Landscapes will manage landscapes in a holistic fashion by working across sectors, rather than in “silos.” It also brings in the private sector already in the design phase, recognizing that many private firms are committed to “greening” and securing their supply chains from the impact of climate change.

Mobilizing Climate Finance to Build a Low-Carbon, Resilient Future

Rachel Kyte's picture

This past week, we saw our future in a world of more extreme weather as Super Typhoon Haiyan tore apart homes and cities and thousands of lives across the Philippines.

Scientists have been warning for years that a warming planet will bring increasingly extreme and devastating weather. Scientific certainty has brought climate change over the planning horizon, and the impact is now unfurling before our eyes.  This level of damage, with millions of people affected, will become more frequent unless we do something about it – fast.

Negotiators from around the world are here in Warsaw for the UN climate conference to work on drivers that can spur that action on a global scale.

It is not overly complicated. We need to get the prices right, get finance flowing, and work where it matters most. But, each of these will take political will to right-size our collective ambition – for ourselves and for the people of the Philippines and the Pacific Islands and the low-lying coasts of Africa and the Caribbean who are directly in harm’s way.

Kenya’s first Carbon Credits from Geothermal Energy Pay for Schools

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Kids at the Oloirowua Primary School in Suswa, Kenya.

Last month, I drove through dust on bumpy dirt roads from Nairobi to visit the Oloirowua Primary School in Suswa, 140 kilometers northeast of the Kenya capital. The school sits on the vast savannah near Hell’s Gate National Park, an area with substantial geothermal potential.

Here, KenGen, Kenya’s electric generating company, has built the country’s largest geothermal plant with support from the World Bank. It’s part of the utility’s effort to “green the grid.”

At the school, classes are being taught outdoors and kids sit under a few trees with notebooks in their laps. Their old and crumbling school will soon be replaced by a new building that will accommodate 200 students. Their faces light up when they talk about the new school, and I feel thankful for being able to work with projects like this where I see the direct effects of our work on kids’ education.

Countries Push Forward with Greenhouse Gas Market Plans

Sarah Moyer's picture

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On the outskirts of Marrakesh’s historic medina, amid bustling construction and new housing developments, the Partnership for Market Readiness’ governing group gathered this month for its final meeting of 2013.

After nearly three years of operation, this group of 30 countries has much to be proud of.

So far, nearly $30 million in grant funding has been allocated to 16 nations to support the design and development of market approaches to greenhouse gas emission reductions. A one-of-a-kind platform to exchange ideas and lessons on market approaches to mitigation has been created. And a technical work program has been launched to support country implementation of critical tools such as data management systems, offset standards, and policy mapping exercises.

Trading for a Better Climate

Harun Onder's picture

Pineapple seedlings grow in the nursery at Bomart Farms in Nsawam near Accra, Ghana. Photo - Jonathan Ernst / World BankConcerns over climate change took center stage at this year’s World Bank annual meetings. The message was clear: there doesn’t have to be a tradeoff between economic growth and a cleaner, healthier environment.

“We can make the right choice and still see robust growth,” World Bank President Jim Yong Kim said during the opening panel discussion, October 8.

With the next United Nations Framework Convention on Climate Change (UNFCCC) conference set to get underway in Warsaw in just a few weeks, Kim and International Monetary Fund Managing Director Christine Lagarde have now clearly laid out the economic case for shifting development strategy into a greener gear.

Set the Right Price on Carbon and Investors Will Come

Karin Rives's picture

 Dana Smillie/World Bank

This was not the time to discuss the science of climate change, or ways to protect coastal cities against monster storms.

The development experts, journalists, policy wonks and investment professionals who gathered at the Center for Global Development in Washington this week were there to sort out a much thornier issue: How to mobilize and spend the $700 billion or so the world will need annually – above what’s already being spent – to slow and adapt to climate change.

Their consensus: Current levels of public and private finance won’t even begin to do the job.

What’s a Group of Indigenous Peoples Doing in a Baroque Castle in Germany?

Kennan Rapp's picture

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It is not often that you find Indigenous Peoples from around the world meeting in one of the most important baroque castles of Germany. Perched on a cliff, with a natural moat created by the river Lahn, the castle of Weilburg allows a bird’s eye view of the surrounding forest landscape.

These forests were not always lush and thriving. Centuries before, the construction of the castle led to massive logging in the adjacent forests and finally the ruling aristocrat ordered restricted use of timber for construction and introduced a new building code. As a result, Weilburg became the national center of a novel construction technique using clay and straw, which is now seen in towns across Germany.

Coincidently, a new approach to tackling deforestation is also what 80 Indigenous Peoples’ leaders, government representatives, civil society practitioners and international experts from 24 countries discussed this week at a three day workshop in Weilburg’s castle.

The central challenge was to identify practical approaches to ensure the full and effective participation of Indigenous Peoples in REDD+, a performance-based mechanism for reducing emissions from deforestation and forest degradation. The meeting was jointly organized by the Federal Ministry for Economic Cooperation and Development (BMZ), the Forest Carbon Partnership Facility (FCPF) and the UN-REDD Programme.


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