Supporting Institutions showing how to “walk the talk” on the sidelines of COP24 Wednesday, Dec 19, 2018 by: Alice Pauthierposted in: Initiative, NEWS, Supporting Institutions comments: 0 From climate finance commitments to making all financial flows consistent with the objectives of the Paris Agreement, the Supporting Institutions of the Mainstreaming Initiative presented lessons learned on current practices, announced new commitments and detailed their approaches to integrate climate change increasingly across all their activities. 1) Financing mitigation, adaptation and loss and prejudice The World Bank Group announced a new set of climate targets for 2021-2025, doubling its current 5-year investments to around $200 billion in support for countries to take ambitious climate action. The World Bank Group also released its new Climate Change and Resilience Action Plan based on three objectives: Boost adaptation financing; Drive a mainstreamed, whole-of-government programmatic approach; Develop a new rating system to better incentivize and improve the tracking of global progress on adaptation and resilience. The EBRD announced that its Board of Directors has approved a new Energy Sector Strategy to support the delivery of clean, secure and affordable energy for all. The strategy covering 2019-2023 emphasizes the scaling-up of investment in renewables, supporting the integration of energy systems, promoting the switch to cleaner and more resilient energy sources. It also aims to facilitate electrification as a means to clean the economies where the EBRD invests, including some of the least energy-efficient and most polluting economies and cities in the world. KfW and the World Bank signed an agreement for a EUR 15 million contribution from the Federal Republic of Germany to support the Central America and Caribbean Catastrophe Risk Insurance Program (CACCRIP). This is the biggest contribution to the CACCRIP from a single donor. The engagement is part of the efforts from donors and the international community to address increasing disaster risks by supporting insurance mechanisms that provide rapid payouts to countries in the aftermath of a disaster. The Asian Development Bank announced the investment of 5 Billion Thai Baht in B.Grimm Power’s Green Bond to Develop Clean Energy in Thailand. The Green Climate Fund: signed an agreement with CDG Capital to enable this Direct Access Entity to begin proposing projects to receive GCF financing. signed a funding agreement with Kreditanstalt für Wiederaufbau (KfW) to make communities in northern Tanzania more resilient to water strains caused by climate change. 2) Tracking mitigation and adaptation finance In 2015, Multilateral Development Banks (MDBs) Climate Finance Tracking and the International Development Finance Club (IDFC) Climate Finance Working Group agreed upon a set of Common Principles for Climate Change Mitigation and Adaptation Finance Tracking. During MDB-IDFC side-eventsat COP24, the Working Group jointly presented their experience and launched the report on Lessons Learned from Three Years of Implementing the MDB-IDFC Common Principles for Climate Change Adaptation Finance Tracking. The International Development Finance Club (IDFC) announced the launch of the 2018 IDFC Green Finance Mapping Full Report, covering the year 2017 period. The report details IDFC members’ commitments of US$ 220 billion in green finance in 2017, an increase of 27% from 2016, including US$ 196 billion of climate finance. 3) Aligning operations with the Paris Agreement objectives Multilateral Development Banks (MDBs) released a Joint Framework for Aligning their Activities with the Goals of the Paris Agreement based on 6 Buildings Blocks: Alignment with mitigation goals Adaptation and climate-resilient operations Accelerated contribution to the transition through climate finance Engagement and policy development support Reporting Align internal activities The International Development Finance Club (IDFC) released a Position Paper on Aligning with the Paris Agreement, which involves: increasingly mobilize finance for climate action support country-led climate related policies seek to catalyze investments, and to mobilize private capital (local & international) recognize the importance of adaptation and resilience, especially in most vulnerable countries support the transition from fossil fuels to renewables financing Aligning with the Paris agreement is also a process of internal transformation of the institutions, which can build on existing principles and/or practices Five commercial banks, including BBVA, BNP Paribas, ING, Standard Chartered and Société Générale, committed to measure the climate alignment of their lending portfolio, and to explore ways to progressively steer financial flows through their core lending towards the goals of the Paris Agreement. 4) Demonstrating how the financial sector can support NDCs: The Asian Development Bank (ADB) launched the NDC Advance platform to help countries mobilize finance to implement Nationally Determined Contributions (NDCs) The French Development Agency (AFD) presented concrete cases of how AFD is assisting the most vulnerable countries with their climate change mitigation/adaptation policies through Adapt’Action. The Inter-American Development Bank presented how its tool NDC Invest supports countries in the LAC region as they engage in the alignment of their national portfolios to meet their international climate change and development commitments. For Africa Day at COP24, the African Development Bank highlighted the recently established Africa NDC Hub, which focuses on three key support areas: Fostering long-term climate action – this entails analytical work to align country-NDCs with national development agenda, its voluntary contributions, and to explore options to raise ambition necessary for low carbon and climate resilience growth on a long-term trajectory. Mobilizing means for implementation – finance, capacity building, technology development and transfer. These are critical enablers to achieve the objectives of the Paris Agreement within the context of African sustainable development. The Hub will engage global climate funds and the private sector to cater for both conditional and unconditional pledges of African NDCs; and Coordination, Advocacy and Partnerships – the Hub will provide a platform for coordination of NDC support activities on the continent for the efficient use of limited resources. 5) Urging governments to implement the actions needed to achieve the goals of the Paris Agreement 415 investors including BNP, FMO and HSBC, representing over USD $32 trillion in assets released a Global Investor Statement to governments on climate change, calling them to: Achieve the Paris Agreement’s goals Update and strengthen nationally-determined contributions to meet the emissions reduction goal of the Paris Agreement, starting the process now in 2018 and completing it no later than 2020, and focusing swiftly on implementation Formulate and communicate long-term emission reduction strategies in 2018 Align all climate-related policy frameworks holistically with the goals of the Paris Agreement Support a just transition to a low carbon economy. Accelerate private sector investment into the low carbon transition Incorporate Paris aligned climate scenarios into all relevant policy frameworks and energy transition pathways Put a meaningful price on carbon Phase out fossil fuel subsidies by set deadlines Phase out thermal coal power worldwide by set deadlines. Commit to improve climate-related financial reporting Publicly support the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations and the extension of its term Commit to implement the TCFD recommendations in their jurisdictions, no later than 2020 Request the FSB incorporate the TCFD recommendations into its guidelines Request international standard-setting bodies incorporate the TCFD recommendations into their standards.