climate finance/scale-up & replication ccxg gf march 2014

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

Takayoshi Kato, [email protected]

Based on the discussion paper “Scaling up and replicating effective climate finance interventions”

by Takayoshi Kato, Jane Ellis, Pieter Pauw and Randy Caruso

Scale-up and replication-Initial insights from experience-

CCXG Global Forum

18 March 2014

mailto:[email protected]

2 Climate Change Expert Group

Presentation Outline

Why focus on scaling-up and replication?

Three aspects to facilitate replication and scaling-up

Initial insights from the research

Discussion questions


Why focus on scale-up and replication?To mobilise further climate finance more

efficiently To encourage more private climate finance

Building on accumulated knowledge and experience from pilot activities;

Private investors: reluctant to invest in too innovative or unfamiliar activities in a short run; and

Replication and scale-up can help to disseminate innovation in the longer-term.


What does the paper look into?Already Replicated or scaled up examplesThree aspects through which replication and scaling-up have

been facilitated

2. Demonstrating successful

interventions

2. Demonstrating successful

interventions

Replication & scale-upReplication & scale-up

3. Enhancing enabling

environments

3. Enhancing enabling

environments

• In developing countries• Private and public

interventions• Project,

programme or fund level

• In developing countries• Private and public

interventions• Project,

programme or fund level

1. Designing suitable institutional

structure

1. Designing suitable institutional

structure

Initial insights from replicated and scaled up interventions

• Balanced provision• Institutional structure• Information gap


Difficulty in balanced provisionIt is challenging to achieve…

i) balance between mitigation and adaptation ii) geographical or sectoral balance

…although pursued under GCF.

In terms of mobilising more public - private In terms of mobilising more public - private finance;finance;

•Often revenue generating

(thus, self-sustaining)

• Relatively long history

•Quantifying /attributing specific benefits to specific interventions challenging• Early days in evaluating, replicating or scaling up

MitigationMitigation AdaptationAdaptation


Difficulty in balanced provisionAlready scaled up/replicated activities tend

to be;MitigationMitigation

AdaptationAdaptation

Easier to demonstrate financial sustainability;

Yet, concentrated in certain technologies;More scale-up/replication examples found in

middle income countries

Mainly No- or Low-regret adaptation; In limited sectors (agriculture, insurance, food

etc.) ;Supported mostly by public finance in other

sectors (e.g. capacity development, disaster management)


Bridging the information gap

Bridging the information gap is a key part of replication and scaling up.

Public sector can play a key role in bridging the gap

Pilot intervention

s

Replicated 　or scaled-up interventions

Tailor the design Tailor the design as neededas needed

Information;

•From monitoring and

evaluation for pilot activities•On local needs and contexts•On actors’ capacities


Enabling environments and institutional structure

Replication and

scaling-up

Institutional Institutional structure of climate structure of climate

finance sourcefinance source•Aims, decision-making, scale, etc. can affect.•Lessons learned from sources of climate finance

(c.f. Next session for details)

Policies to enhance Policies to enhance enabling enabling

environmentsenvironments•Enabling environments•Absorbing capacities •Co-ordination among policies

Provision of climate finance

Basis for replication and scaling

up


Discussion questions

1. What are broad lessons from replication and scaling-up experience to date?

2. To pursue the balanced provision, what would be distinction in ways of mobilising climate finance between mitigation and adaptation?

climate finance/scale-up & replication ccxg gf march 2014

Environment