Despite the current global economic downturn, countries in Asia-Pacific can expect expanded opportunities to access significant volumes of national and international public and private climate finance. In coming years, billions of dollars are expected to be channeled toward climate change action in this region. Governments need to put in place appropriate institutional and financial mechanisms so that they can readily demonstrate to national and international decision makers their capacity to receive and utilize climate finance effectively.
Depending on the country specific situation, capacities and needs, countries have already started to use (a combination) of various mechanisms to manage climate finance. A mechanism that is receiving increasing attention is the National Climate Fund (NCF). Broadly defined, NCFs are country-owned funds that can access and manage finance from a variety of domestic and international sources and deliver them to support climate actions of national priority. Over the last 20-30 years, a number of countries in Asia-Pacific have established National Funds to support action on various related issues such as environment, conservation, clean energy, and development. Other countries have recently established NCFs, and others are exploring the possibility to do so, thereby offering an opportunity to bring these groups of people together in a peer-to-peer learning event.
The Regional Clinic on the Design and Management of National Climate Funds will bring together fund managers of well established and recently established funds, and people who are considering establishing NCFs in their own countries. The Regional Clinic will focus on discussing technical details of the design and management of national climate funds. Fund managers will be invited as resource persons to share their experiences on establishing and managing national funds for environment and climate change. Government officials and others who are currently considering or planning to establish NCFs will be invited as discussants, fostering direct interaction with the resource persons. During the Regional Clinic, participants will have the opportunity to conduct a feasibility analysis and design the structure and management features of NCFs considering country-specific characteristics. Upon return to their respective countries, the participants will be tasked to share with their supervisors and colleagues the information they have gained from their peers during the Regional Clinic, including the advantages and disadvantages of a national climate fund and the possible design features of NCFs.
The Regional Clinic is being jointly organized by the UNDP Asia-Pacific Regional Centre, and the USAID/RDMA-funded ADAPT Asia-Pacific project. ADAPT Asia-Pacific (www.adaptasiapacific.org) aims to assist eligible Asia and Pacific countries in gaining improved access to finance for climate change adaptation. For UNDP, this Regional Clinic is one of three main activities under UNDP’s recently established Asia-Pacific Community of Practice (CoP) on Climate Finance, the other two being e-discussions and case study analyses, providing substantive inputs to the design and contents of the Regional Clinic.
- Synthesizing best practices and lessons learned on establishing and managing NCFs
- Identifying opportunities for future collaborative work and peer-support between participating countries
- Agreeing on follow-up actions based on members’ feedback and reflection on the knowledge sharing process and suggestions for next steps.
- A report on best practices and lessons learned concerning the establishment and management of NCFs
- A summary of follow-up actions agreed by the CoP
- A virtual learning platform amongst the practitioners on NCFs
Date & venue:
6-8 September 2012: VIE Hotel, Bangkok, Thailand
Approximately 30 practitioners from Asia-Pacific countries will be invited to the workshop. The invited practitioners will be those who:
- Have been leading the establishment of a national fund for environment/conservation/energy/climate, or
- Are responsible for managing a national fund (well-established and recently established) on environment/conservation/energy/climate, or
- Are considering the establishment of a new national climate fund.
Benefits for participants:
Resource people - outcomes expected include:
- During the workshop, sharing experience with the design, establishment and management of a fund
- During the workshop, learning how climate finance may be channeled through an existing non-climate fund
- Upon return, determining how the fund may access climate finance
- Within 1 year, (if the fund board chooses), accessing climate finance through the existing fund.
Government Representatives - outcomes include:
- During the workshop, building and sharing participant’s knowledge on the design, establishment and management of National Climate Funds
- During the workshop, understanding the advantages and disadvantages of setting up a National Climate Fund
- During the workshop, learning to conduct a feasibility analysis, develop a design and take stock of management features of NCFs considering country-specific characteristics
- Upon return from the workshop, sharing the information including the pros and cons of a national climate fund and possible design features of NCFs, with appropriate government representatives
- Within 1 year (if the government choses to establish a NCF), the participants are instrumental in the design and establishment of a NCF.
Post-Clinic Follow Up:
- Virtual learning platform established to continue cross-learning among Clinic participants
- Consideration may be given to possible future twinning arrangements between well established, successful funds and governments considering fund establishment
Reference documents to be used during the Regional Clinic: