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S-54 - Climate-related ODA funding

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Information on Support Available

  • A Source of Support
    • A.1Support title

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      A.2Support description

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      The German Federal Ministry for Economic Cooperation and Development (BMZ) is providing funding for climate measures involving both bilateral and multilateral development cooperation agencies. On behalf of BMZ, bilateral climate-related funding is channelled through its implementing agencies for German technical cooperation (GIZ; see http://www.giz.de/Themen/en/26097.htm ) and German financial cooperation (KfW Development Bank; see https://www.kfw-entwicklungsbank.de/International-financing/KfW-Entwicklungsbank/). With respect to bilateral development cooperation, BMZ concentrates its work on selected partner countries to enhance overall aid effectiveness. BMZ cooperates with partner countries on the basis of the overarching goals of German development policy (reducing poverty, securing peace and realising democracy, achieving justice in globalisation and protecting the environment). The decision as to which countries Germany engages in development cooperation with depends on various important criteria. The selection takes into account, for example, development needs, governance performance, the relevance of Germany's contribution compared with other bilateral and multilateral donors, political factors, regional aspects and established ties. On the basis of regular country consultations, key priority sectors for German development cooperation are jointly discussed and agreed with individual partner countries. This dialogue is coordinated and channelled in the respective partner country through the responsible national institution for the coordination of development cooperation. Besides bilateral climate-related funding BMZ provides financial support to multilateral institutions such as the World Bank and international climate-specific funds and facilities (e.g. Global Environment Facility, Least Developed Country Fund, Special Climate Change Fund, Adaptation Fund, Climate Investment Funds, etc.). For more detailed information on BMZ’s climate finance, bilateral/multilateral contributions and regional and sectoral information please also visit BMZ’s website “Transparency in climate finance” http://www.bmz.de/en/what_we_do/issues/klimaschutz/finanzierung/transparenz/index.html Climate-related funding provided by BMZ addresses climate change mitigation, adaptation to climate change as well as the reduction of emissions from deforestation and forest degradation (REDD+) and biodiversity preservation. A key element of BMZ’s efforts in its partner countries in order to reduce greenhouse gases and adapt to the negative effects of climate change is to support them in integrating climate protection and climate adaptation into their national development strategies. Generally, in its dialogue with partner countries, BMZ works actively to ensure that a balance is achieved between economic efficiency, social justice and ecological sustainability in line with the principle of sustainable development. With respect to mitigation measures BMZ offers its partner countries a wide range of support, including: - preferential loans to finance investment in climate protection; - advice on the formulation of national climate strategies and programmes; - provision of training for local experts in the application of further development of climate technologies; - support with the introduction of specific legislation, taxation systems and incentive schemes (e.g. to encourage the use of renewable energies and to protecting the climate and natural resources); - support with the creation of favourable investment conditions for the private sector. Through its international cooperation, Germany is supporting the development of strategic approaches to transformation towards low-emission development in the following ways: - Capacity-Building: NAMA training; please see: http://mitigationpartnership.net/nama-tool-steps-moving-nama-idea-towards-implementation - Strategy and Analysis: developing LEDS, cost-benefit analyses and market research - Information Management and Networking: data gathering, baseline setting; organisation of participatory processes and dialogues; facilitation of info sharing, lessons learned; peer-to-peer learning; networking. For further information please also see the following factsheet on NAMAs: http://www.mitigationpartnership.net/giz-2012-factsheet-nationally-appropriate-mitigation-action-nama Exemplary projects on climate change mitigation: e.g. Multi-donor: On Grid Small Scale Renewable Energy in Uganda (GET FiT): GET FiT will support small-scale renewable energy projects in Uganda in an effort to promote private sector investment in renewables and help meet an anticipated increase in energy demand in Uganda. The project will provide a mix of financial incentives and technical assistance, which include: a top up grant provided by KfW to the existing financial incentives (Feed-in-Tariffs) for renewables and capacity building support to the Ugandan Energy Regulatory Authority. GET FiT aims to demonstrate to private sector developers that investment in renewable energy in countries like Uganda is financially attractive. It will also demonstrate to Ugandan and regional governments that incentivising investment in renewable energy can mobilise private sector investment. It is expected that GET FiT will support at least 125 MW of additional installed capacity from at least 15 small scale renewable projects and deliver greenhouse gas savings of between 1-10mt of CO2. The multi-donor project includes support from the UK (£20 Mio, approximately €24 Mio), Germany (€15 Mio/BMZ), Norway (€17 Mio) and the EU (€30 Mio). It is being implemented by KfW. For more information see: http://www.getfit-uganda.org/) e.g. Multi-donor: Ouarzazate I Concentrated Solar Power Project for Morocco The objective of the Ouarzazate Concentrated Solar Power Project for Morocco is to support the Borrower (the Moroccan Solar Agency MASEN) in the development of the 500 Megawatt Ouarzazate solar power plant by financing the first phase (160 Megawatt gross) through a public private partnership (PPP), to increase power generation from solar power and mitigate greenhouse gas emissions and local environment impact. Along with the German Federal Government, project participants comprise the European Commission, the European Investment Bank (EIB), the French development bank AFD, together with the World Bank and the African Development Bank. The German contribution from BMZ and BMU amounts to EUR 115 million (100 million BMZ/KfW, 15 million BMU). The power plant will generate enough electricity for about 530,000 people. Compared to conventional electricity generation, the project will avoid approx. 310,000 tons of CO2 emissions annually. e.g. Indonesia: Policy Advice for Environment and Climate Change (PAKLIM II) On behalf of BMZ, GIZ is implmenenting the programme PAKLIM, which supports the government, municipalities and industrial enterprises of Indonesia in carrying out systematically planned climate strategies. These aim to reduce GHG emissions, improve living conditions, make industrial energy use more efficient and help the country adapt to climate change. The programme consists of the following components: - Working Area 1&2: Climate Mitigation Policy Advice: Implement climate mitigation action plans and disseminate best practices on the provincial level; support NAMA development and setup of a MRV system; - Working Area 3: Industries and Industrial Estates: Integrate private sector actors into mitigation actions, foster voluntary partnerships and development partnerships; - Work Area 4: Climate Education and Awareness: Raise awareness for the reasons and the impact of climate change in the Indonesian youth. For further information see: http://www.paklim.org/; http://www.giz.de/themen/en/36046.htm e.g. Tunisia: Implementation of the International Convention on Climate Change The project “Implementation of the International Convention on Climate Change” funded by BMZ (3.5 million EUR) and implemented by GIZ has extended its approach in the third project phase beyond advisory services on the development and implementation of Clean Development Mechanism (CDM) projects and focuses now on developing ready to finance NAMAs in the waste, energy and cement sector. With respect to adaptation, the aims of German development cooperation is to sensitise its partners to the need for adaptation to climate change and support the requisite adaptation process through a learning process developed and managed in conjunction with the developing countries themselves. Here, the focus in on four main objectives: - supporting development programmes, which directly benefit adaptation; - building the requisite capacities for the adaptation process; - managing risks associated with climate change and extreme weather events; - responding to the climate change impacts that have already occurred. With respect to financing, Germany has long been one of the largest donors for climate action in developing countries and emerging economies. Germany’s overall climate-related target value amounts to 1.44 billion euros in 2012 and 1.78 billion euros in 2013. Further information on Germany’s overall approach on climate change can be found in the following publications: “Germany’s International Approach to Climate Change – Spotlight on Africa” http://www.bmz.de/en/publications/type_of_publication/special_publications/Climate_Change.pdf “Climate Challenges” http://www.bmz.de/en/publications/type_of_publication/special_publications/Climate_Challenges.pdf
      A.3Parties
      A.4Government entity providing the resources
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  • B Organization channelling the resources
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      B.1.13Type of organisation
      B.1.14Comments

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  • C Currency
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  • D Support available
    • D.1Support available for
      D.1.1Regional scope





      D.1.2Comments (provide further details on regional scope)

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      Generally, BMZ concentrates its bilateral development cooperation on selected partner countries and their sector priorities that were jointly agreed on. Funded projects in general must meet the criteria for recognition as Official Development Assistance (ODA). Preparation and implementation of NAMAs can be part of BMZ’s activities if this falls within a certain priority sector, as determined by the partner country and the German government in the framework of bilateral negotiations and consultations. BMZ does not allocate a specific share of its overall budget towards NAMA support. For projects in the area of mitigation, the focus would be on BMZ partner countries with high potential for renewable energy production, greenhouse gas emission reduction, especially newly industrialising countries and middle-income countries. Countries interested in NAMA support should channel this request through their responsible entity for cooperation with Germany and contact German embassy locally to discuss options for support.
      D.1.3Target country (in any)
      D.2.1Amount of Financial support
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      D.2.2Maximum amount of Financial support per NAMA

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      D.2.3Type of required Financial support





      D.2.4Comments on Financial support

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      Generally, mainly capacity building support as well as grants and subsidised loans, which meet the criteria for ODA (official development assistance) eligibility, are provided by BMZ to finance climate-related activities, including mobilisation of additional funding through tailored financial instruments.
      D.3.1Amount of Technological support
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      D.3.2Maximum amount of Technological support per NAMA

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      D.3.3Type of Technology










      D.3.4Comments on Technological support

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      BMZ is generally open towards projects in the field of technology cooperation but does not focus on any particular type of environmental technology. BMZ normally does not provide support to “stand-alone” technology support projects; instead, technology support components need to follow an integrative concept for the acceleration of transformational processes (i.e. be combined with the transfer of know-how, capacity building or policy advice). That way, projects can contribute to further developing existing technological and institutional solutions and to broadening the application of innovative technologies, which advance climate change mitigation and serve to accelerate transformational processes. Technology support is not a necessarily component of BMZ supported projects.
      D.4.1Amount of Capacity Building support
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      D.4.2Maximum amount of Capacity Building support per NAMA

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      D.4.3Type of Capacity Building support


      D.4.4Comments on Capacity Building support

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      Capacity building is primarily considered as an integrative key element of all development cooperation interventions funded by BMZ.
  • E Types of action that may be supported
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  • F Process for the provision of support
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  • G Attachments
  • H Information on support provided
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