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
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