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The International Climate Initiative (ICI) An innovative financing mechanism for climate protection Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany

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Page 1: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

The International Climate

Initiative (ICI)

An innovative financing mechanism for

climate protection

Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany

Page 2: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• ICI in a nutshell?

• Value added, key message and strategy

• Methodology and projects

• Project examples

Presentation Outline

21.04.2010 Presented by: Martin Weiss 2

Page 3: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Contributes to „Fast-Start Finance“ approach,

supports preparation of NAMAs, Low Carbon

Growth Plans and data collection

• Has been promoting climate protection projects

in developing countries, emerging economies

and countries in transition since 2008

• Is financed through the auctioning of 8.8% of

German emission trading certificates

• 120 mill. € of German federal budget funds are

earmarked for the ICI per year

The International Climate

Initiative

21.04.2010 3 Presented by: Martin Weiss

Page 4: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

21.04.2010 4

Investing in

Mitigation and Adaptation Measures in

Developing Countries,

Emerging Economies and

Countries in Transition

ICI Auctioning Emission

Allowances

Revenues

EU ETS

Climate Change

Presented by: Martin Weiss

Page 5: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Innovative financing mechanism - Germany is

the first country to earmark revenues from the

auctioning of emission trading certificates for

investments in climate protection measures in

developing countries and emerging economies

• Targeted collaboration on climate issues with

partner countries

• Openness to a broad diversity of (international)

applicants for funding

• strengthen synergies between climate protection

and biodiversity conservation

Added value of the ICI as a

bilateral initiative

21.04.2010 5 Presented by: Martin Weiss

Page 6: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

Strategy 2010-2012

21.04.2010 6

The International Climate Initiative

• fosters innovation for low

carbon growth

• contributes to preparation for

MRV-able action in partner

countries

• Develops methodologies, capacities and know-how for

REDD in partner countries and helps to establish high

sustainability criteria

• General focus in the BRICS countries on capacity

building

Presented by: Martin Weiss

Page 7: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• development and implementation of (national)

emission reduction strategies

• renewable energies, energy efficiency

• emissions reduction in the transport sector

• support and further enhancement of the carbon

market

• monitoring and accounting systems for

mitigation actions

• substitution / mitigation of non CO2-GHG (in

particular F-gases)

Thematic priorities of the ICI –

climate-friendly economy

21.04.2010 7 Presented by: Martin Weiss

Page 8: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Capacity development for REDD+

methodologies and governance, including

institution building, strategy, enabling conditions

• Reaping synergies between conservation,

sustainable use, restoration of carbon sinks and

climate relevant biodiversity (contribution to

LifeWeb initiative of CBD)

• Enhancement of benefits of ecosystems

• Feeding experiences of climate relevance of

carbon sinks into the UNFCCC negotiations

Thematic priorities of the ICI –

preservation and sustainable use

of natural carbon sinks / REDD

21.04.2010 8 Presented by: Martin Weiss

Page 9: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Developing insurance schemes for people and

projects in regions affected by climate change

• Selected strategic adaptation projects

(outstanding pilots, parts of NAPAs)

• Linking different aspects of adaptation (water

management, land use, managing migration,

disaster prevention)

• Ecosystem-based adaptation

• Covering incremental costs of infrastrusture or

development projects

Thematic priorities of the ICI –

adaptation to climate change

21.04.2010 9 Presented by: Martin Weiss

Page 10: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

based on a two-step procedure:

first step:

– March 2010: Release of Call for Proposals

– until April 15 (& December 31): Submission of

project outlines

– May/June: Selection of Proposals

second step:

– Request for submission of complete

application/offer

– Project start: September/October 2010 (Mid-2011)

Selection of ICI projects 2010

(and 2011)

21.04.2010 10 Presented by: Martin Weiss

Page 11: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Coherence with partner country‘s strategies

• Sustainable Impact: Economic efficiency of climate

protection through capacity development, policy

support, framework conditions

• Innovativity: market launch of new technological,

social, economic, or institutional approaches

• Up-scaling: replicability of approach

Selection criteria

21.04.2010 11 Presented by: Martin Weiss

Page 12: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Ownership: partnering with target country in early

planning phases

• Preservation of natural, globally relevant carbon

sinks

• ODA eligibility: contributing to social and economic

development, effectiveness of activities

• Develop and implement innovative approaches to

reduce vulnerability of regions and people

Selection criteria

21.04.2010 12 Presented by: Martin Weiss

Page 13: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

• Close monitoring through BMU:

– Results from projects are linked to the negotiation

process

– Projects and partners are supported through

additional networking activities by BMU

– Up-scaling of innovative approaches is aspired

– BMU supports visibility of projects

Implementation of projects

21.04.2010 13 Presented by: Martin Weiss

Page 14: The International Climate Initiative (ICI) · German emission trading certificates •120 mill. € of German federal budget funds are earmarked for the ICI per year The International

Thank you very much for

your attention!

For further information please see:

http://www.bmu-klimaschutzinitiative.de/en/news