enhance NDC implementation Presentation layout Introduction to - - PowerPoint PPT Presentation

Public- Private financing instruments to enhance NDC implementation

Presentation layout

• Introduction to climate finance
• Global climate finance flows
• Cost of financing Uganda’s NDC
• Opportunities for financing Uganda’s NDC
• Recommendations for financing NDC

implementation

What is Climate Finance

• Climate finance refers to local, national or transnational

financing—drawn from public, private and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change (UNFCCC)

• Climate finance for mitigation, because large-scale

investments are required to significantly reduce emissions.

• Climate finance for adaptation, as significant financial

resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate.

Total global climate finance flows (2013-2018)

Average annual public mitigation finance

Public Adaptation finance

Global climate finance flows (Public vs Private)

• Private investment continues to account for the major share of climate investments.

Cost of financing Uganda’s NDC

• The estimated cost of Uganda’s NDC is USD

5.5 billion exclusive of

• conditional commitments including Energy efficiency;

Integrated Sustainable Energy Solutions; Promotion and wider uptake of renewable energy technologies; Development and enforcement of building codes; Livestock breeding research and manure management practices.

• In line with the 30 percent contribution from

national sources, Uganda should finance NDC to a tune of USD 1.65 billion by 2030, equivalent to 6 percent of the country’s GDP.

National climate finance landscape(instruments)

• Grants (bilateral and multi lateral agencies)
• Guarantees (UECCC’s risk Guarantee Facility and Solar Refinance to

MFIs/Banks ,Biogas Financing Facility)

• Public-private partnerships (e.g. Uganda Insurance Scheme, ACF, Yield

Uganda Fund)

• Dedicated funds (Ecotrust, Biodiversity fund)
• Loans
• Government budget support

Opportunities for financing Uganda’s NDC

• Bilateral Cooperation through development banks
• Development banks finance (AFDB, EADB, UDB)
• Commercial bank finance (Centenary Bank, Stanbic,

Microfinance)

• Financing credit line (energy efficiency credit line with

Diamond Trust Bank)

• Private sector finance through CSR, direct project

investments e.g. renewable energy, energy efficiency

Opportunities for financing Uganda’s NDC

• Development of financing platforms to support investments e.g.

Financing platform developed to increase access to RE and EE in rural areas

• Development of Green Bonds initiatives by governments to support

investments in climate action

• National Financing Vehicles e.g. the Green Investment Fund
• Carbon finance mechanisms including support countries in the

transfer of mitigation outcomes under Art. 6 of Paris Agreement

Recommendations for fi financing NDC Im Implementation

• Establish a National climate action Financing vehicle e.g. National Climate

Fund

• Establish Climate Finance Unit in Ministry of Finance Planning and Economic

Development to enable mobilization, tracking, accounting and provision of financial resources.

• Enhance national capacity building in proposal development
• Popularize the NDC Partnership Plan
• Align Uganda’s NDC targets with National strategies e.g. NDPIII
• Support national institutions to achieve direct access with multilateral

financial entities such as Green Climate Fund and Global Environment Facility

• Develop a mechanism for leveraging private sector financing for climate action
• Special Purpose vehicle including NDC finance facility

THANK YOU

Gloria Namande