1

Hatoyama Initiative

and JICA’s perspectives on Addressing

Climate Change

April 21, 2010

Office for Climate ChangeJapan International Cooperation Agency (JICA)

Japan’s Initiative on Climate

Change

Japan’s Initiative on Climate Change

COP3 (1997)

Kyoto InitiativeInitiative for Sustainable Development Toward The 21st Century（ISD)

WSSD (2002)

Environmental Conservation Initiative for Sustainable Development （EcoISD)

The World Conference on Disaster

Reduction (2005)

Hyogo Framework for Action

Gleneagles G8 Summit (2005)

Japan’s Initiative on Climate Change

4th Japan/PIF Summit (2008)

Okinawa Partnership for a more robust and prosperous Pacific Region

International Conference on “the Future Asia” (2007)

Invitation to “Cool Earth 50”

3rd East Asia Summit (2007)

Towards a “Sustainable East Asia”

World Economic Forum 2008 (2008)

Cool Earth Promotion Program （Cool Earth Partnership）

TICAD IV（2008）

Yokohama Action Plan5th Japan/PIF Summit (2008)

Islander’s Hokkaido Declaration

UN Summit on Climate Change & COP15 (2009)

Hatoyama Initiative

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Mid term target

• The developed countries need to take the lead in emissions reduction efforts. • For its mid-term goal, Japan will aim to reduce its emissions by 25% by 2020, if compared to the 1990 level.• It is imperative to establish a fair and effective international framework in which all major economies participate. The commitment of Japan to the world is premised on agreement on ambitious targets by all the major economies.

Hatoyama InitiativePrime Minister Yukio Hatoyama made a speech at UN Summit on Climate

Change on 22 September, 2009, and announced Japan’s mid term target and

new initiative named “Hatoyama Initiative” at UN Summit on Climate.

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Hatoyama InitiativeOutline of

Haytoyama

Initiative

1. Contribution by the developed countries through

substantial, new and additional public and private financing.

2. Development of rules that will facilitate international recognition of developing countries' emissions reductions, in particular those achieved through financial assistance, in MRV.

3. Establishment of system which facilitates one-stop provision of information on and matching of available bilateral and multilateral financing, while securing transparency and effective utilization of assistance.

4. Establishment of a framework to promote the transfer of low-carbon technologies which ensures the protection of intellectual property rights.

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Hatoyama Initiative (up to 2012)

• As for assistance up to 2012, Japan will provide financial assistance to developing countries of approximately 1 trillion 750 billion Yen (about $15 billion) including public and private finance, of which public finance comprises approximately 1 trillion 300 billion Yen (about $11 billion),

• The assistance under Hatoyama Initiative will be provided on the condition that successful political accord is achieved, that is a fair and effective framework with participation of all major emitting countries and agreement of their ambitious targets.

• Upon the establishment of a new framework Japan will, with this assistance, support a broad range of developing countries which are taking measures of mitigation, as well as those which are vulnerable to the negative impacts of climate change.

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Hatoyama Initiative (up to 2012)

The assistance under Hatoyama Initiative will be provided on the condition that successful political accord is achieved, that is a fair and effective framework with participation of all major emitting countries and agreement of their ambitious targets.

Public Finance1.3 trillion JPY(11billion USD)

Private Sector Finance450 billion JPY (15billion USD)

support a broad range of developing countries which are taking measures of mitigation, as well as those which are vulnerable to the negative impacts of climate change.

2012

Major Difference between Cool Earth

Partnership & Hatoyama Initiative

Cool Earth partnership Hatoyama Initiative

Financial Amount1.25 trillion JPY

(100 billion USD)

1.75 trillion JP

(150 billion USD)

Target CountriesCool Earth Partner Countries (through Policy dialogue with GOJ)

Broad range of developing countries which are taking measures addresing climate change.

Target scope

Grant & TC: Adaptation & Clean Energy Development

ODA Loan: Mitigation

Grant ,TC & ODA Loan: Both Mitigation & Adaptation

(Note) Further details for operation of Hatoyama Initiative will be decided soon.

JICA’s Cooperation Addressing

Climate Change

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Facts and Figures of JICA

• Profile:

– Japan’s Official DevelopmentAssistance Agency

– Providing Grant Aids, ConcessionalLoans and Technical Cooperation

– Assistance implemented by itsown staff as well as thousands ofJapanese experts and young andsenior volunteers.

• Operational Volume:

– World’s largest bilateral development assistance agency with a size of USD10 billion (FY2008)

– USD6 billion or more for Climate change related projects and programs

Exchange Rate used: JPY100.10/US$ (IFS rate for 2008 March end)

*estimated based on FY2008 budget (full year)

JICA’s Vision, Mission & Strategy

[Vision]Inclusive and Dynamic Development

[Mission]1. Addressing the global agenda2. Reducing poverty through equitable

growth3 Improving governance4 Achieving human security

[Strategy]1. Integrated assistance2. Seamless assistance3. Promoting development partnerships4. Enhancing research and knowledge-

sharing

[Activity guiding principles]1. Achieving synergies of the merger2. Tackling complex, difficult issues flexibly with the field-based approach3. Fostering expertise for providing professional solutions4. Efficient and transparent operation

Long-term vision

Climate change benefit as co-benefits of developmentCooperation for Sustainable Development from various levels

Projects

Programs

Sector

Policies

Development

Plan

Integrate

Climate

Change

Concerns

into

Development

Actions

Donor’s

Assistance

Financial

Assistance

Technical

Assistance

Generating

Developmental

benefit

GHG Reduction as

co-benefit

Direction of New JICA’s Operation

Addressing Climate Change

＜Mitigation Measures＞

Co-benefit * Promotion of CDM

Assisting in enhancing and promoting

private sector initiatives

＜Adaptation Measures＞

Supporting the formulation

and implementation of

adaptation measures

Technic

al a

ssis

tance

Fin

ancia

l assis

tance

Utilize Japan’s private cutting-edge technologies effectively

Promote globally conducive research

Assisting in implementation

of Policies

- Improvement of legal systems

- Capacity development

- Monitoring , etc…

NEW-JICA’s policies and concrete measures（Image）

Strengthening the capacity

for adaptation

Introducing and

mainstreaming

the concept of

“Climate Risk”

* “Co-benefit” approach ・・・Project or program which realize both developmental benefits for developing country and GHG

emission reductions.

How can we address

Copenhagen Accord? (1)

• Para 5 (NAMAs)– Non-Annex I Parties to the Convention will implement mitigation

actions, including those to be submitted to the secretariat by non-Annex I Parties… Mitigation actions taken by Non-Annex I Parties will be subject to their domestic measurement, reporting and verification the result of which will be reported through their national communications every two years.

– Non-Annex I Parties will communicate information on the implementation of their actions through National Communications, with provisions for international consultations and analysis under clearly defined guidelines that will ensure that national sovereignty is respected.

– Nationally appropriate mitigation actions seeking international support will be recorded in a registry along with relevant technology, finance and capacity building support. Those actions supported will be added to the list in appendix II.

– These supported nationally appropriate mitigation actions will be subject to international measurement, reporting and verification in accordance with guidelines adopted by the Conference of the Parties.

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MRV in Copenhagen Accord and ODA

MRV in Copenhagen

AccordMRV in ODA operation

Measure GHG mitigation actions and its effects

(carbon footprint)M (Measurable)

Effectiveness of development assistance (e.g. expected

increased harvest by irrigation project)

Report to UNFCCC through National Communications

R (Reportable)Project Completion Report

submitted by recipient country, Statistic Report to OECD

Verify by national verification system or

international verification system

V (Verifiable)Post-evaluation (e.g. actual

increase of harvest as Operational & Effectiveness

Indicators)

Development Agencies need to develop common

Carbon Foot Tool for measuring GHG reduction

How can we address Copenhagen

Accord? (2)

• Para 8 (Finance)– Scaled up, new and additional, predictable and adequate funding as well as

improved access shall be provided to developing countries, in accordance with the relevant provisions of the Convention, to enable and support enhanced action on mitigation, including substantial finance to reduce emissions from deforestation and forest degradation (REDD-plus), adaptation, technology development and transfer and capacity-building, for enhanced implementation of the Convention.

– The collective commitment by developed countries is to provide new and additional resources, including forestry and investments through international institutions, approaching USD 30 billion for the period 2010-2012 with balanced allocation between adaptation and mitigation.

– In the context of meaningful mitigation actions and transparency on implementation, developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries.

– This funding will come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance. New multilateral funding for adaptation will be delivered through effective and efficient fund arrangements, with a governance structure providing for equal representation of developed and developing countries. A significant portion of such funding should flow through the Copenhagen Green Climate Fund.

Trend of Japan’s ODA Finance in Climate Change

(Note) ODA Loan Only. Figures of FY2009 is tentative. Some of projects which

contribute to both Mitigation and Adaptation count as “Mitigation”.

Japan's ODA Finance in Climate Change (FY2002-2009)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2002 2003 2004 2005 2006 2007 2008 2009

FY

Mill

ion J

PY

Mitogation Adaptation Both

MFIs

GEF

Developing Countries

Public Entities

Private Entities

National

Intermediaries

CDM

Market

Developed Countries

Green

Climate

Fund

BFIs

Export

Credit

Private

Finance and

Investment

CIF

Technical Assistance

UNFCCC Funds

Co-Finance

Expected Climate Change Finance

Grant and/or Loan Grant

Concessional

Loans

Commercial

Loans Investment

Private Investment Flow by Recipient Country (2004)

Private Investment Flow Total (million USD, 2004)

China,65,860,

67%

India,14,170,

14%

Malaysia,

9,024,9%

Bangladesh,453,

0%

Cambodia,

131,0%

Sri Lanka,133,

0%

Myanmar,214,0%

Philippines,

887,1%

Thailand,

1,117, 1%

Indonesia,3,152,

3%

Vietnam,1,610,

2%Pakistan,

1,168, 1%

Mongolia,93, 0%

PapuaNew Guinea,

25, 0%

Lao PDR,17, 0%

Maldives,15, 0%

Source: GDF (2006)

Climate Change and ODA

Mitigation and adaptation projects

Implementation of climate change policies based on agreed matrix

Private sector investments for sustainable growth

Feasibility Study for programme loan

to monitor implementation and develop next steps

Identification of necessary investments

Technical assistance (advisor/expert)

Climate Change ODA loanagreement on policy matrix for climate change

ODA grants/loans

Enabling Environment to induce investments

Private capital

ODA

Private

Policy Based Assistance for Climate Change Policy

Climate Change Program Loan

Pillar 1: Mitigation

1.1: LULUCF

(Land Use, Land Use

Change and Forestry)

-Reforestation

-REDD

-Forest management

1.2: Energy

-Power plant

-Industry, domestic and

commercial

-Others

Pillar 2: Adaptation

Pillar 3: Cross-cutting Issues

3.1:Understandin

g the Impact of

Climate Change

3.2: Mainstreaming

Climate Change in the

National Development

Program

Example of the Policy Matrix formulated based on the policy dialogue

2.1: Water

Resource

Management

2.2: Water

Supply and

Sanitation

2.3: Agriculture

3.3: CDM 3.4: Co-Benefit3.5: Fiscal

Incentive

3.6: Early

Warning System

Monitor, Review and advice

Steering Committee

Partner country’s

Government

Donors

Financial Assistance,

Technical Cooperation

Coordination among

line ministries

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National Development Plan

Mitigation

Adaptation

NAMA

Policy Matrix

• NAMA focuses on “Mitigation” actions among development policies

• “policy matrix includes several policies and actions not only mitigation but also

adaptation and cross-cutting issues

• Both need to align “Development policies & Strategies”

Relations between NAMA and Policy Matrix

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Financial Assistance in NAMA

Climate Fund

Bi Donors Multi Donors Other Donors

Bi Donors Multi Donors Others

Policy MatrixAgree with donors Monitoring policy

implementation

General Budget SupportCo-finance among donors

Bi Donor Multi Donor Other Donors

Bi DonorsMulti Donors

Other Donors

Technical & Financial assistance to individual projectsOECD/DAC is preparing system to capture ODA flows in

Climate Change (RIO Marker system)

NAMARegister at UNFCCC

To integrate climate change measures into development cooperation

To promote “Low-carbon Growth”

To realize tangible development programmes /projects from the perspective of climate change

To leverage private sector finance by creating enabling environment

JICA’s Next Steps for Achieving Low Carbon & Climate Proofing Society