Climate Finance Instruments
Prof. Mohamed Amine ISSAMI
Lecture 10
April 17th, 2024
Source : https://careers.moodys.com/campaign/moodys-morocco-esg-talent-pool/
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Japan
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Source : https://www.sasb.org
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Source : https://equator-principles.com
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AMMC Press Release
Masen, African climate finance pioneer,
issues Morocco's first ever Green Bond
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Video
VIEWING CLIMATE CHANGE AS A
GEOPOLITICAL RISK
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Source : https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions
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The global climate finance
architecture
Public sources
Climate Development
Private capital finance bank-type
instruments
sources
Carbon
markets
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The global climate finance
architecture (cont.)
• 1991, Global Environment Facility (GEF)
Multilateral • 2009, Adaptation Fund (AF)
• 2011, Green Climate Fund (GCF)
• Germany, International Climate Initiative
Bilateral • UK, International Climate Fund
• Norway, International Forest Climate Initiative
Regional and • Regional: African Risk Capacity (ARC), Caribbean
Catastrophic Risk Insurance Facility
national • National: Benin National Fund on Climate Change,
Mali Climate Fund
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The Global Climate Change Financial
Architecture
Innovative Climate
Government Finance
Private Cooperation
Cooperation Capital Markets Domestic Budget (sources and
Finance
Budgets governance under
negotiation
National Bilateral Multilateral
Bilateral Multilateral National
Finance
Private
Implementing Financial Finance UNFCCC CSOs/NGOs
entities
Cooperation Cooperation Institutions Institutions Sector
Institutions
Official ‘New and
Development additional’ Carbon Markets
Assistance climate finance
CDM Levy
funding the
Industrialized Industrialized Industrialized Foreign Adaptation Fund
countries countries countries Direct
ODA commitments emission Investment
commitment to ‘new and reduction
additional’ obligations
finance for
climate change
Total finance available for climate change mitigation and adaptation initiatives
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Source: Adapted from SEI 2009
The UNFCCC
• GCF (Green Climate Fund)
• GEF Trust fund
• Special Climate Change Fund (SCCF)
• Least Developed Countries Fund (LDCF)
• Clean Technology Fund (CTF)
• Pilot Program for Climate Resilience (PPCR)
• Scaling Up Renewable Energy in Low Income Countries Program (SREP)
• Forest Investment Program (FIP)
• Clean Development Mechanism (CDM)
• Nationally Appropriate Mitigation Actions (NAMA)
• Joint Crediting Mechanism (JCM) 35
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GEF CLIMATE CHANGE MITIGATION
More transformational impact, programmatic approaches and sectorial issues
GOAL:
Support developing countries and economies in transition toward a low-
carbon development path
Promote Promote market Promote Promote Conserve and
demonstration, enhance carbon
deployment, transformation investment energy
for energy in renewable efficient, stocks through
and transfer of
advanced low- efficiency in energy low-carbon sustainable
carbon industry and technologies transport management of
technologies land use, land-
buildings and urban
systems use change, and
forestry
(LULUCF)
Enabling
Activities and
Capacity Building
Direct access
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Case study (i)
Transport for London (TfL) Green Bond
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Case study (ii)
DC Water Green Bond
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Video
INVESTORS TURN TO ESG STOCKS TO
WEATHER CLIMATE RISKS
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