OECD DAC Work on Tracking Climate-related Development Finance: use of

the Rio Markers

Gisela    Campillo,  Environment  and  Development  team,  OECD  

Asia Pacific Regional Forum on Climate Change Finance and Sustainable Development 1-3 September 2015, Jakarta

Outline  

1.   Overview  of  DAC    Sta5s5cal  System  

2.   What  are  the  Rio  markers?  

3.   Accessing  and  using  the  data  4.   Possible  applica5ons  of  the  data  for  partner  

countries  

5.   Next  steps  

Iden5fying  climate,  biodiversity-­‐  &  deser5fica5on-­‐related  finance  

4    Rio  markers:  •  Climate  Change  Adapta5on,  and  Mi5ga5on  •  Biodiversity    •  Deser7fica7on    

+  1  Environmental  Marker    

•  Rio  markers  indicate  policy  objec5ves    Ø  i.e.  ac7vi7es  targe7ng  Rio  conven7ons  as  a  principal    

objec7ve,  a  significant  objec7ve,  or  not  at  all  Ø  Applied  ex-­‐ante,  purpose  based,  cross-­‐cuDng  and  mul7ple  

objec7ves  can  be  tagged  •  To  ensure  common  understanding  among  reporters,  applica7on  of  each  marker  guided  by:    Ø  Defini5on,  eligibility  criteria,  examples,    and  guidance  Ø  Recorded  in  CRS  repor7ng  direc7ve  &  Handbook  

 

•  The Rio markers are descriptive rather than strictly quantitative •  Track mainstreaming and allow for an approximate quantification

of financial flows targeting the objectives of the Rio conventions. •  2013: climate-related development aid added up to USD13.9 bn

principal; USD10.5 bn significant.

Main  characteris5cs  of  Rio  markers  

Principal  +significant  data      =  Upper  bound  or  total  es4mate    

 

Principal  data  only  =  Flows  specifically  targe4ng  Rio  conven4ons    

•  Finance reported by Parties to the conventions is often based on, but may not be directly comparable to, Rio marker data

Access the data

•  Data visualisation •  Integrated bi-and multilateral data for 2013

Recipient perspective

Provider perspective

Possible applications of Rio Marker data for partner countries

•  Open database, transparent, activity-level data, accessible online, frequently updated.

•  Allows to compare results from Rio Markers with national external climate-related development finance statistics, find gaps

•  Assess trends in alignment of donor funds with country priorities and strategies

•  Rio Markers methodology provides examples for in tracking own climate budget (guidance on sectors, activities, examples)

Next steps

•  Improve definitions of markers and provide guidance to donors to improve quality of marking

•  Expand tracking of green finance beyond ODA and reflect reality of development finance landscape through Total Official Support for Sustainable Development (TOSSD)

•  Continue to improve access to database and use of information by partner countries through training, webinars, dedicated workshops

•  Pilot case studies to compare data and tracking approaches

•  Ongoing work to improve basis for quantification of Rio markers

OECD DAC CRS Rio marker statistics and analysis www.oe.cd/RM Joint ENVIRONET-WP-STAT Task Team: Gisela.Campillo@oecd.org

Additional slides

To  what  &  how  are  the  markers  applied?  

Coverage •  Bilateral flows only •  Official Development

Assistance (ODA) –  Since 1998 for biodiversity,

climate mitigation and desertification

–  Mandatory from 2006 flows –  Adaptation introduce and

mandatory from 2010 flows •  Other Official Flows (OOF)

–  Voluntary basis since 2012 (excl. export credits)

Application •  Every activity screened •  Excluding:

–  general budget support imputed student costs,

–  debt relief except debt swaps,

–  administrative costs, –  development awareness,

and, –  refugees in donor countries

•  Commitments basis

•  Allows tracking of multiple objectives simultaneously whilst avoiding double counting

Figure 18.2. The multiple objectives of environmental development co-operation 3 year annual average, 2010-2012, bilateral commitments, USD billion, constant 2012 prices

Source: OECD DAC Creditor Reporting System statistics, July 2014.

Key  features  and  caveats:    Tracking  of  Mul5ple  

How  does  the  marker  methodology  indicate  policy  objec5ves?  

Activities are screened, identified and marked as either, targeting the Rio conventions as a: •  2 = Principal

objective •  1 = significant

objective, or •  0 = not targeted

Access the data

•  Data can be analysed from two perspectives

Recipient  perspec7ve   Provider  perspec7ve  

How  many  resources  were  invested  in  Mexico  for  renewable  energy  projects?  

How  many  resources  did  Norway  invest  to  fund  adapta5on  projects?  

Historical data

Bilateral  provider  

Mul5lateral  ins5tu5on  

Developing  country  

Bilateral  flows  Rio  marked  

Two  perspec5ves  

How the DAC statistical system work Climate-related development finance

Imputed  mul5lateral  contribu5ons  

Climate-­‐related  components  for  

MDBs  &  Rio  markers  for  climate  funds  

Recipient  perspec5ve  =  bilateral  flows  Rio  marked  +  climate  component  of  mul5lateral  ouZlows    Provider  perspec5ve  =  bilateral  flows  Rio  marked  +  Imputed  mul5lateral  contribu5ons  

Transfer  of  resources  (USD)