Countries: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yemen

Regional partner: League of Arab States (LAS), United Nations Economic and Social Commission for Western Asia (UNESCWA)

Project stage: Post inception, technical analysis and strategy design

Climate change presents significant challenges for Arab States who are already water stressed, with severe implications on desertification and land degradation. Thus, adaptation is a key priority for the region by pursuing sustainable development in the context of economic diversification, food and water security and the provision of basic services such as transport and electricity.

One of the main challenges Arab States are facing is the mobilization and access of climate finance from climate funds to adapt to the impacts of climate change and address the incremental costs of climate action. Of climate finance received between 2013-2017, international public finance averages USD 3.5 billion a year, of which 36% derives from bilateral sources favoring the use of concessional loans with more grants allocated to adaptation projects, 60% is derived from multilateral development banks which focus on non-concessional loans, and 4% was received from climate funds which are a significant source of grant funding and concessional loans.

A preliminary analysis of the needs as articulated in 13 national reports submitted by the member states to the UNFCCC estimates a total need of around 460 billion by 2030. Another 8 countries have yet to layout the costs of their identified needs and priorities. These estimates amplify the requirement for support to rapidly scale up finance to match the needs articulated by the region and for supporting member states to cost and articulate their needs. The proposed Arab Climate Finance Mobilization and Access Strategy aims to address some of the key obstacles identified by the region through unlocking access barriers and diversifying the sources, channels and instruments of climate finance to pursue sustainable development and the goals of the Convention and the Paris Agreement.

Workshops:

• Inception workshop, November 2019
• Technical Workshop for Finance Experts, February 2020
• Consultation on the Technical Assessment to inform the Strategy, May 2021

Publications

Technical Assessment of Climate Finance in the Arab States

Countries: Burundi, Kenya, Rwanda, South Sudan, Tanzania, Uganda

Regional partner entity: East African Community (EAC)

Project stage: Strategy design and validation

The East African Community (EAC) Partner States estimate around USD 20 billion annual climate finance needs until 2030. Climate finance inflows will need to increase steeply to cover needs, in addition to capacity building and technical assistance needed in the region. Priority sectors identified include agriculture; food security; water security; energy security; ecosystems services and biodiversity; tourism; infrastructure; human health, sanitation and settlements; trade and industry; education, science and technology. The region faces several challenges in its current funding situation, including lack of adequate funding, high transaction costs in accessing available funds, lack of capacity to complete complex procedures limiting member states to access and use such funds, lack of information and expertise, unpredictability and unsustainability of the existing sources, among others. Adverse effects of climate change are threatening to undo decades of development efforts by countries in the region. Under the NBF project, the countries have developed a Climate Finance Access and Mobilization Strategy and complementary implementation plan and pipeline of priority projects and programmes. These are intended to address the most urgent needs and build an enabling environment which will enhance climate finance mobilization in the long term.

Workshops:

• Inception workshop, February 2020
• Pre-validation workshop, December 2020
• Validation workshop - Part I, April 2021
• Validation workshop - Part II, June 2021
• Climate Change Technical Working Group Meeting, Finalization of the Strategy, March 2022

Publications

Technical Assessment of Climate Finance in the East African Community

Climate Finance Access and Mobilization Strategy (draft, pending EAC council)

Interview

Mr. Michael Okumu, Deputy Director, Climate Change Negotiations and Finance, Climate Change Directorate, Republic of Kenya, was interviewed during the SB56 Bonn Climate Conference in June 2022.

Countries: Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia, Zimbabwe

Partners: Southern African Development Community (SADC)

Project stage: Post inception, technical analysis and initiation of strategy design

The Southern African Development Community CLIMATE CHANGE STRATEGY AND ACTION PLAN – 2014 outlines the importance of Climate Change Finance and Resource Mobilization in six key strategic areas for action, which include inter alia the establishment of a window for Climate Financing within the SADC “Regional Development Fund (RDF)” for leveraging and attracting international climate finance, the establishment of a regionally controlled Emissions Trading System, and promotion of private sector engagement. Subsequently SADC members have named Finance, Institutional and Data Frameworks a priority in the review of the strategy including a review of climate change financing needs for adaptation, mitigation, technology transfer, capacity building for each SADC member state. The region faces significant climate mitigation and adaptation challenges. These difficulties are compounded by socio-economic constraints that are directly related to energy, transport, and water – over 60% of people do not have access to a clean, regular, and sustainable water supply. An average inflow of USD 2.7 billion per year of international public climate finance for adaptation and mitigation, in energy, agriculture, and water and sanitation falls far below the need ranges between USD 197 billion and USD 202 billion per year by 2030. A Climate Finance Mobilization and Access Strategy aims improve climate finance resource mobilization at the regional level and enhance capacity of countries to mobilize climate finance resources at the national level, in supporting the SADC Regional Indicative Strategic Development Plan, Sustainable Development Goals (SDGs), and Africa Agenda 2063.

Workshops

• Inception Workshop, November 2019

Countries: Benin, Burkina Faso, Cabo Verde, Côte D’Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo

Partners: Economic Community of West African States (ECOWAS), West African Alliance on Carbon Markets and Climate Finance

Project stage: Strategy design and validation

The ECOWAS member states estimate annual climate finance needs at USD 20 billion annually until 2030. To cover these needs, climate finance flows will need to increase manifold and additional capacity building and technical support will be needed to support the access of funds, project development, carbon market readiness, as well as climate finance tracking and reporting. Priority mitigation sectors include energy, agriculture, forestry and other land use, industrial processes, transport and waste, while priority sectors and areas for adaptation include agriculture and livestock, biodiversity, water, forestry and land use, health, energy, coastal zones, fisheries, human settlements and tourism. Technology needs are primarily in the areas of renewable energy, sustainable agriculture and water resources. Although accessed funds are not yet commensurate to the needs, flows to the region have been increasing over the past decade, and countries are more aware of finance opportunities and have increasingly submitted successful proposals to specialized, international and regional climate funds. The Climate Finance Mobilization and Access Strategy being developed by member states under the NBF project aims to channel countries’ full potential to access and mobilize climate finance, including through domestic sources and blended finance.

Workshops:

• Inception workshop, October 2020
• Validation workshop, July 2021
• Strategy deliberation at an ECOWAS meeting of Ministers of Environment, April 2022 - meeting report and news article on the outcomes

Publications

• Technical Assessment of Climate Finance in West Africa
• SWOT Analysis: An assessment of regional strengths, weaknesses, opportunities, and threats regarding access to and mobilization of climate finance and resulting recommended actions.
• Climate Finance Access and Mobilization Strategy for ECOWAS Countries (2022-2031)

Countries: Bangladesh, Cambodia, Bhutan, Lao PDR, Myanmar, Nepal, Timor Leste

Project stage: Technical analysis and strategy design

The least developed countries of Asia - although geographically diverse - face similar challenges in accessing and mobilizing climate finance and have identified similar needs for finance, technology and capacity building support. In total over the period of 2013-2018, the group of countries received USD 13.9 billion in international climate finance flows. The total finance need estimated by countries to fulfill their national climate goals sums up to over USD 200 billion. The climate finance assessments and strategy being developed under the NBF project aim at effectively improving the countries' capacities to access climate finance.

Workshops:

• Inception workshop, October 2020
• Pre-validation workshop, February 2021

Publications

Technical assessment of Climate Finance in the Least Developed Countries in Asia

Countries: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan

Regional partner entity: United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP)

Project stage: Technical analysis and strategy design

The region increasingly faces climate change challenges, such as reduced agricultural productivity. Annual climate finance inflows from international public sources varied roughly between USD 1 billion and USD 2 billion between 2013 and 2018. To overcome challenges in accessing and mobilizing climate finance, the climate finance strategy being developed under the NBF project aims to address needs in capacity building, access to technology solutions, and capital for renewable energy investments, among others. 

Workshops:

• Inception workshop, December 2020
• Pre-validation workshop, May 2021

Countries: Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam

Regional partners: ASEAN, UN-ESCAP

Project stage: Strategy design and validation

International climate finance flows to the region averaged USD 3.2 billion annually between 2013 and 2017, which includes private sector investment in renewable energy totaling approximately USD 6 billion annually. Countries in the region devote 3 to 6% of their national budget to addressing climate change. The needs identified by countries include capacity building to participate in future market mechanisms; technology development and transfer; research and development; development of greenhouse gas inventories; establishment of measurement, reporting and verification systems and monitoring and evaluation systems; and increasing outreach and raising awareness. In order to address these needs, the estimated volume of climate finance required, as reported by the countries, is USD 422 billion up to 2030, most of which is needed for mitigation (USD 293.01 billion), with the balance needed for adaptation (USD 129.15 billion). The proposed ASEAN Climate Finance Mobilization and Access Strategy aims to address some of the identified needs by enhancing access to technology, signaling for investment at scale, enhancing cooperation and alignment between member States, and ensuring equal and inclusive access to institutions and services for all member States.

The proposed Strategy also aims to support the ASEAN Working Group on Climate Change Action Plan. A pre-validation workshop was held in early 2021, where countries agreed to develop a handbook, titled “Guidebook for Accessing Climate Finance for Member States of the Association of Southeast Asian Nations”. This resource and a draft regional climate finance strategy are currently under development with the support of the United Nations Development Programme and Japan International Cooperation Agency.

Workshops

• Technical Workshop on Climate Finance, October 2019
• Technical Workshop on Climate Finance II, August 2020

Publications

• Technical Assessment of Climate Finance in South-East Asia

Countries: Antigua & Barbuda, St. Kitts, Nevis, Montserrat, Anguilla, British Virgin Islands, Dominica, St. Lucia, St. Vincent, Grenadines, Grenada, Martinique

Regional partner entity: Organization of Eastern Caribbean States (OECS)

Project stage: Technical analysis and strategy design completed

The OECS Regional Needs Based Climate Finance Strategy was developed based on available information generated by different national, regional and international stakeholders and with inputs from national and regional finance experts. Between 2010 and 2015, the region received USD 101 million in international public climate finance. According to country submissions to the UNFCCC, climate finance needs for the region are estimated at USD 5 billion per year. The region has limited capacity and know-how for planning and managing climate programmes. Regional needs are diverse and numerous and a common challenge across individual island States and territories is their ability to develop projects at scale. The regional climate finance strategy intends to address some of the needs and challenges by promoting a cooperative regional approach. Currently, recommendations for relevant line ministries on operationalizing the strategy are being developed, based on existing mechanisms, in order to enable effective regional collaboration on project development and finance mobilization.

Countries: Comoros, Madagascar, Maldives, Mauritius, Seychelles, Sri Lanka

Project stage: Strategy validation and approval

The six small island developing states in the Indian Ocean are amongst the most vulnerable to climate change impacts. There is an urgent need to enhance the provision of finance, technology and capacity-building and to ensure predictability and alignment of finance for nationally defined goals. The Needs Based Finance (NBF) Project, through the development and implementation of the proposed Climate Finance Access and Mobilization Strategy, is designed to deliver regional clarity on mobilization and access of climate finance.  

Workshops:

• Training workshop, 23–26 May 2022
• Validation workshop, March 2020

Publications:

• Technical Assessment of Climate Finance for Island States in the Indian Ocean
• Climate Finance Access and Mobilization Strategy for Island States in the Indian Ocean (2022-2025)
   

Countries: Fiji, Papua New Guinea, Vanuatu, Solomon Islands

Regional partner entity: Melanesian Spearhead Group (MSG)

Project stage: Technical analysis and strategy design completed, undergoing funder outreach and implementation

The NBF Project with four Melanesian island States of Fiji, Papua New Guinea, Solomon Islands and Vanuatu was launched in 2018, and the sub-regional Climate Finance Strategy is the main outcome of the Project, which captures the technical work done over the year by UNFCCC as well as the result of multiple consultations with the national experts from the four countries.

Further details related to the NBF project in Melanesia can be viewed here.