1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Co-facilitated by
Georg Børsting, Tosi Mpanu Mpanu, Herman Sips, Suzanty Sitorus
Climate finance replication
and scaling up – key points
CCXG Global Forum
19 March 2014

2. 2 Climate Change Expert Group
What is replication and scaling up?
Scaling up and replication
crucial for real
transformation
Different topics – may need
to be addressed separately
Include the diversity of
private sector actors
Replication and scaling up
for adaptation may need a
different recipe book than
for mitigation

3. 3 Climate Change Expert Group
Mitigation and adaptation finance
International finance not balanced at present;
replication risks repeating this imbalance
Projects have multiple aims; artificial divide
between mitigation vs adaptation not helpful for
replication and scaling up
Adaptation is case-specific; more likely to be
replicated if intervention aligned into a larger
programme/policy
Difficult to attract private adaptation finance if not
directly related to core business interests, e.g.
food industry and insurance

4. 4 Climate Change Expert Group
Modify to fit local contexts
Replication is not copying – need to modify to local
conditions
It’s not just the finance – domestic enabling conditions
key to moving to programme-level
Barriers include integrity of policies in the face of
competing development objectives; translating
commitment into actions that produce results

5. 5 Climate Change Expert Group
Multiple barriers exist
Information and knowledge gaps
what works and what doesn’t (monitoring and
evaluation – M&E- can help)
how to incentivise front runners
Capacity gaps in moving from planning to
implementation and in developing portfolios
Multiple financing instruments (e.g. capital cost
reduction, Feed-in tariff) may be needed for
projects that face multiple barriers and risks
Note that business cycles are much shorter than
public climate funding approval processes

6. 6 Climate Change Expert Group
Information flow and M&E key…
To provide enough information about what has
worked and what hasn’t … this can increase
political will and potentially also climate finance
delivery
Can also help to reduce risk and cost of project
development (e.g. via improved resource
surveys)
To help financial actors understand what the real
key risks are
Information needs to be packaged so that it
resonates with the business sector

7. 7 Climate Change Expert Group
… as are institutions
Strong institutional structure at a variety of levels
(national, sub-national) needed to plan, prioritise,
implement climate finance interventions.
Support is needed for intervention by government
Good, ongoing, communication and teamwork
between government and private sector also
needed
Alignment of donors is crucial

8. 8 Climate Change Expert Group
What creates appetite from the
private sector?
Enabling policy framework can help, whereas
legislative uncertainty is a key barrier
Reduced risk, e.g. via developing risk mitigation
instruments; allow flexibility in how risk is dealt with
Reduce high up-front capital costs – improve self-
sustainability of intervention
Reduce delays in funding approval and
disbursement (multilateral climate finance delivery
can be slow)
Knowledge of domestic institutional structure
Use programmatic rather than project approach

9. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm

10. 10 Climate Change Expert Group
Possible future work
How to scale up private climate finance for adaptation?
Role that the 2015 agreement can play in enhancing the
enabling environment for climate finance
How to learn from Paris Declaration to improve country
ownership and donor co-ordination re climate finance
mobilised as part of the 2015 agreement
How can M&E help to identify best practice for climate
finance interventions
How can “adaptation contribution” be financed?
How can a future climate agreement provide incentives
for enhanced climate-related finance and investment
flows?