UNEP - Bilateral Finance Institutions Climate Change Working Group (UNEP-BFI CCWG) members account for more than one-third of public sector climate finance in 2010
UNEP releases 2 publications and hosts a side event at the COP17 highlighting the UNEP BFI CCWG's public climate finance flows to developing countries in 2010 and the innovative climate finance tools used.
Paris, 2 December 2011 - The members of the UNEP BFI CCWG make up a significant portion of climate finance flowing to developing countries in all regions, and for both mitigation and adaptation. They have been active in such finance for many years and so have built up an important body of experience about what works well (and doesn't) and which innovate finance tools are the most successful. The purpose of both the 3rd annual Mapping report and the Innovative Climate Finance report is to make available comparable, transparent and accurate data on climate financing and communicate the BFI's experience, in particular to policy makers who are developing international and domestic architectures for expanded levels of international climate finance.
Bilateral Finance Institutions and Climate Change - A Mapping of Public Financial Flows for Mitigation and Adaptation to Developing Countries in 2010
This year's report is the third annual effort of the members of the UNEP Bilateral Finance Institutions (BFI) Climate Change Working Group (CCWG) to collectively report their climate change financial flows to developing countries. The reporting is done annually according to mitigation and adaptation objectives, and is distinguished by region, sector, and financial instruments. Total BFI member climate change financing for 2010 is USD 15.7 billion, accounting for more than a third of all public climate finance (USD 39 billion) in 2010. There has been an annual increase in total BFI member climate change financing from 2008 to 2010, but a decrease in financing for adaptation in 2010. The decrease in adaptation financing is attributable in part to the application of a more robust classification of what counts as adaptation in the water supply and treatment sector.
Sectorally, mitigation finance flows mostly to the energy and transport sectors, while adaptation finance is mainly to water supply and treatment. Regionally, Asia receives 47% of BFI climate finance, Africa and the Middle East receive 37%, and Latin America receives 14%. And by financial instrument, BFI financing for adaptation was delivered primarily through concessional loans. Grants nearly doubled in absolute value, from USD 837 million in 2009, to USD 1628 million in 2010; 47% were for adaptation and 53% for mitigation.
Innovative Climate Finance
The members of the UNEP BFI CCWG represent a very significant portion of global public sector climate finance to developing countries. This report examines the innovative finance instruments and facilities employed by the members of this Group, giving specific insight into the experience repository created toward risk mitigation to leverage private investment. Innovative instruments are evaluated based on criteria including: risk mitigation, capital costs, efficacy, and efficiency. Specific examples of innovative instruments described in this report include: blending facilities, policy development support, green credit lines, risk sharing instruments, carbon market support, forest protection and REDD financing, and support for small and medium size projects. This report also looks at the UNFCCC Green Climate Fund and the role of BFIs. Editor's notes Copies of the report can be downloaded from -
Innovative climate finance:
Bilateral Finance Institutions & Climate Change:
Dean Cooper, Head, Energy Finance Unit, UNEP Paris, tel: +33 1 44 37 16 27, email@example.com
Moira O'Brien-Malone, Head, Communications, UNEP Paris, tel: + 33 1 44 37 76 12, mob: +33 6 82 26 93 73, firstname.lastname@example.org
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About UNEP BFI CCWG
The UNEP Bilateral Finance Institutions Climate Change Working Group originated from a workshop on bilateral financing for climate change convened in January 2009 at UNEP in Paris. Present members of the UNEP BFI CCWG are UNEP and five bilateral finance institutions: Agence Française de Développement (AFD), European Investment Bank (EIB), Japan International Cooperation Agency (JICA), KfW Entwicklungsbank (Germany's Development Bank), and Nordic Environment Finance Corporation (NEFCO). These financing institutions act, and provide financing, on behalf of their respective governments. UNEP facilitates the operation of the UNEP BFI CCWG, providing the opportunity for closer interaction and co-ordination of BFIs' climate change activities and investment modalities.