MRV of Mitigation Financing

Jan Corfee-Morlot, OECD

Jan.Corfee-Morlot@oecd.org

Acknowledgments: B. Guay

1

Outline: financing mitigation in developing countries

• How much external financing is available to support development in mitigation relevant sectors in developing countries?

• What trends in N-S (external) financing for mitigation or mitigation-relevant investments since 2000?

• What balance between public/private external/domestic finance in mitigation relevant infrastructure?

• Questions for discussion2

North-South mitigation relevant and mitigation-specific investment: 2006: total est. 270 billion USD

Sources: Various including OECD CRS, MDB annual reports, UNCTAD, WB (Ambrosi)

3

North-South mitigation-relevant and mitigation-specific investment flows: 2000-2006

Sources: Various including OECD CRS, MDB annual reports, UNCTAD, WB (Ambrosi)

4

Major external financial flows to developing countries, average 2003-2005

Sources: Various including OECD CRS, MDB annual reports, UNCTAD

5

Source: UNCTAD 2007 based on World Bank PPI database; Note: Data cover all developing economies, except high-income developing economies

Sources of financing for infrastructure in developing countriesShare of foreign and domestic private and public investors in the investment commitments of the infrastructure industries in developing countries and transition economies, by industry, 1996-2006

6

Different qualities and availability of information: A basis for a more comprehensive framework

Financial Data Sources

Mitigation-specific Mitigation-relevantBilateral climate support

ODA bilateral

ODA multilater

alCDM ODA

bilateral

ODA multilater

alFDI

Data type

National communications

Rio markers –

OECDCRS

MDB

UNEP-RisoeWorld Bank

OECD CRS

OECDCRS

UNCTAD

by source country

+ ++ - - ++ + ++

by recipient

+ ++ - + ++ + ++

by purpose

+ ++ - + + + -

by endpoint

+ - - + ++ + +

Questions for discussion: financing mitigation

• What role for public versus private finance to advance low-carbon development?

• How to best use limited public finance to stimulate long-term mitigation and economic development?

• What priorities for reform of public finance in mitigation-relevant sectors?

• How to monitor and assess progress?

• Additional

8

ODA commitments to climate relevant and specific sectors, 1998-2006

Source: OECD CRS database, GEF9

Bilateral ODA commitments to climate relevant sectors, average 2003-2005:

15 of 77 billion USD per year

Source: OECD Credit Reporting System10

FDI inward flows into developing countries, by sector, average 2003-2005:

118 of 242 billion USD per year

Source: UNCTAD FDI database11

Official long-term export credits, by sector, average 2003-2005:

24 of 27 billion USD per year

Source: OECD export credits database12