Introduction to the OECD DAC Rio markers

Training workshop on accessing and using OECD DAC Rio marker and environmental-related development finance statistics

18 September, Paris

Introduction to the Rio markers

1. Why do the Rio markers exist?

2. What is a policy marker?

3. What are the Rio markers and how are they defined?

4. How the marker methodology indicates policy objectives?

5. To what, and how are the markers applied?

6. The key features and caveats to note

7. Future improvements are under discussion

Why do the Rio markers exist? Following the 1992 Rio “Earth Summit”,

three Rio conventions established on:• Biodiversity

• Climate Change

• Desertification

“Rio markers” introduced in 1998 to:• measure and monitor financial support provided to developing

countries targeting the implementation of the Rio conventions

• support members in their reporting to the Conventions (e.g. as an input to their National Comms/National Reports).

• situate these flows within the overall development co-operation portfolio, and to track mainstreaming

What is a policy marker ? marker = a variable to identify and filter data

according to certain characteristics

markers indicate policy objectives• i.e. if the Rio conventions are the principal or a

significant objective of an activity reported

markers track activities targeting environmental

objectives cutting across a range of sectors > preferable to sector codes

•4 Rio markers:• Climate Change Adaptation• Climate Change Mitigation• Biodiversity • Desertification + 1 Environmental Marker

• To ensure common understanding among reporters, application of each marker guided by:

• Definition• Eligibility criteria, • Typical examples, and guidance• Recorded in CRS reporting directive & Handbook

What are the Rio markers & how are they defined ?

How does the marker methodology indicate policy objectives?

Activities are screend and identified and marked as either, targeting the Rio conventions as a:

• 2 = Principal objective

• 1 = significant objective, or

• 0 = not targeted

To what & how are the markers applied?

Coverage

• Bilateral flows only• Official Development

Assistance (ODA)– Since 1998 for biodiversity,

climate mitigation and desertification

– Mandatory from 2006 flows– Adaptation introduce and

mandatory from 2010 flows

• Other Official Flows (OOF)– Voluntary basis since 2012

(excl. export credits)

Application

• Every activity screened• Excluding:

– general budget support imputed student costs,

– debt relief except debt swaps,

– administrative costs, – development awareness,

and, – refugees in donor countries

• Commitments basis

• The Rio markers are descriptive rather than strictly quantitative.

• They allow for an approximate quantification of financial flows targeting the objectives of the Rio conventions.

Key features and caveats: Marker presentation and quantification

Principal +significant data = Upper bound or total estimate

Principal data only= Flows specifically targeting Rio conventions

• Finance reported by Parties to the conventions is often based on, but may not be directly comparable to, Rio marker data

• Allows tracking of multiple objectives simultaneously whilst avoiding double counting

Figure 18.2. The multiple objectives of environmental development co-operation3 year annual average, 2010-2012, bilateral commitments, USD billion, constant 2012 prices

Source: OECD DAC Creditor Reporting System statistics, July 2014.

Key features and caveats: Tracking of Multiple

The Joint ENVIRONET-WP-STAT Task Team on the Improvement of Rio markers, environment

and development finance statisticsGoal: DAC methodologies and data remain a point of reference on Official Development Assistance & Other Official Flows targeting environmental objectives

Areas for improvement :• Quality - the application of Rio markers and data• Coverage - reconciliation of “green ” multilateral finance flows• Communication - including user access and training workshops • Use - supporting transparency and harmonisation in reporting

*non-export credit

Summary of Key points:• Rio markers measure and monitor external development

finance in support of the Rio conventions

• 4 Rio markers (climate adaptation, mitigation, biodiversity and desertification) + 1 environment marker

• Markers tracks policy objectives – principal and significant

• Marking guided by definitions, eligibility criteria, typical examples and guidance

• Markers applied to bilateral ODA and OOF (voluntarily, 2012)

• Data track mainstreaming and allow for an approximate quantification of finance flows targeting the Rio conventions

OECD DAC CRS Rio marker statistics and analysiswww.oecd.org/dac/stats/rioconventions.htm

Joint ENVIRONET-WP-STAT Task Team:

Stephanie.Ockenden@OECD.org and Valerie.Gaveau@OECD.org