UNDP expands support to Least Developed Countries accessing climate finance

Introduction

Accessing climate finance is a key priority to enable the transition toward a low-emission climate-resilient society.   With a field presence in more than 160 countries and a UN coordinating mandate, UNDP is uniquely placed to support countries to leverage various financing options to ensure that their national development is effective and sustainable.

Assisting LDCs access climate finance is particularly important not only because they are homes to the most vulnerable populations affected by climate change impacts, but also because, through the effective utilisation of climate funds, there are several opportunities to ensure that the development path they embark on is a resilient and sustainable one.  Currently, UNDP is supporting 49 Least Developed Countries (LDCs) in accessing multiple sources of funds.

UNDP supports countries in mobilizing financing through the Adaptation Fund as a Multilateral Implementing Agency, and through the Global Environmental Facility (GEF), in three funds: Least Developed Country Fund, (LDCF), Special Climate Change Fund, (or SCCF), and the Strategic Priority Fund of the GEF Trust Fund (SPA). For example, there are 34 LDCs accessing LDCF funds, with 47 LDCF projects (31 currently under implementation and an additional 16 in the planning stage) and LDCF funding totalling $258,668,180.

Figure 1: UNDP Support to Access Climate Change Finance in LDCs

Grant resources are also being mobilized from multilateral and bilateral sources including the Global Environment Facility, and the Governments of Australia, Canada, Denmark, Japan, Norway and Spain, among others. These resources are complemented with co-financing leveraged by UNDP from various sources in support of baseline development needs.

With our national and regional partners, UNDP continues to work to develop, combine and sequence a range of innovative institutional, regulatory and market-based instruments to promote direct investments for strategic interventions in climate-resilient development, including the structuring of and access to additional sources of finance.

For more details refer to the recent report: UNDP support to LDCs to Access Finance for Adaptation Basic Facts and Figures - November 2013.

Project Details

Leveraging climate finance through a variety of funding mechanisms, UNDP’s Adaptation Programme has successfully supported 49 Least Developed Countries (LDCs) in mobilizing financing through the Adaptation Fund as a Multilateral Implementing Agency, and through the Global Environmental Facility (GEF), in three funds: Least Developed Country Fund, (LDCF), Special Climate Change Fund, (or SCCF), and the Strategic Priority Fund of the GEF Trust Fund (SPA). For example, under GEF’s Least Developed Country Fund, (LDCF), there are 34 LDCs accessing LDCF funds, with 47 LDCF projects (31 currently under implementation and an additional 16 in the planning stage) and LDCF funding totalling $258,668,180.

And this support is growing.

Working together with in-country partners, these funds are used to support adaptation measures in agriculture and food security, water resources and quality, coastal zone development, public health, natural resource management and climate-related disaster management. These projects also work to incorporate other cross-cutting issues (i.e. gender, energy, ecosystems).

Grant resources are also being mobilized from multilateral and bilateral sources including the Global Environment Facility, and the Governments of Australia, Canada, Denmark, Japan, Norway and Spain, among others. These resources are complemented with co-financing leveraged by UNDP from various sources in support of baseline development needs.

The number PIFs approved in 2013 totals 28, with 19 funded by the LDCF, and 9 by the Canadian Government. The combined funding for these PIFs, with 109,578,007 from the LDCF and 14,953,120 from Canada, equals 124,531,127 in total.

Refer to the following UNDP publications for more details on UNDP's climate finance support:

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Implementing Agencies & Partnering Organizations: 
United Nations Development Programme (UNDP)
Adaptation Fund
Global Environment Facility (GEF)
Funding Source: 

Key Results and Outputs

“Readiness” for climate finance is a relatively new term that has been used for a number of specific areas of climate finance, such as REDD+ readiness and market readiness; however, a  comprehensive definition that maps out the different elements of readiness with regard to climate finance as a whole is needed. The UNDP (2012) Readiness for Climate Finance paper defines readiness for climate finance as the capacities of countries to plan for, access, deliver, and monitor and report on climate finance, both international and domestic, in ways that are catalytic and fully integrated with national development priorities and achievement of the MDGs.

Within this definition there are four main components:

  1. National capacities in place to plan for finance;
  2. Capacities to access different forms and types of finance at the national level;
  3. Capacities to deliver finance and implement/execute activities;
  4. Capacities to monitor, report, and verify on financial expenditures and associated results/transformative impacts.

Figure 1: Climate change finance: Sources, agents and channels, UNDP (2011) Catalysing Climate Finance

Programme Meetings and Workshops

Thursday,
14 Nov 2013
18:30—20:00
Room Wroclaw
United Nations Development Programme (UNDP) 
Mr. Daniel Buckley 
daniel.buckley@undp.org 
+49 228 8151432
Comprehensive Climate Finance: Capacity building to scale-up climate action in developing countries
The event features good practices on building capacity for comprehensive approaches to climate finance readiness. Spanning a suite of themes going beyond climate finance management, the event will include educational, policy, and regulatory capacities to attract private finance for climate action.
 

 

Monitoring and Evaluation

More information to come...

Contacts

UNDP
Pradeep Kurukulasuriya
Senior Technical Advisor- Adaptation, UNDP-GEF
UNDP
Daniel Buckley
UNDP Climate Change Team