Information event on transparency Reporting on finance, technology development and transfer and capacity-building support

25 August 2021 21:00 –22:00 CEST Bonn

Information event on transparency

Reporting on finance, technology development and

transfer and capacity-building support

Agenda

I. Introductory presentation

(Tibor Lindovsky, UNFCCC Secretariat)

II. Presentation on experience in reporting on FTC support in BURs

(Karina Barrera Moncayo, Ecuador)

III. Presentation on experience in reporting on FTC support in BRs

(Karima Oustadi, Italy)

IV. Discussion

Introductory presentation

I. Overview of the reporting requirements under the current MRV system

II. Example of reporting by Annex II Parties on FTC support provided in CTFs III. Examples of reporting by Non-Annex I Parties on FTC support needed and

received in tabular format

IV. Outlook for the future Biennial Transparency Reports (BTRs)

Tibor Lindovsky

UNFCCC Secretariat

Current MRV of support under the Convention

Annex II

Mandatory Information on support provided

BRs and CTF tables Standardized reporting format and

parameters

Non-Annex I

Not mandatory Information on support needed and

received

BURs

No standardized reporting format or

parameters

Example of reporting by Annex II Parties

on FTC support provided in CTFs

Tables 7,7a,7b - Provision of financial support

Table 8 - Provision of technology development and transfer support

Table 9 - Provision of capacity-building support

Examples of reporting by Non-Annex I Parties on FTC support needed and

received in tabular format

Examples of provision of information on financial support received in tables

Outlook for the future

Biennial Transparency Reports (BTRs)

• Reporting Parties:

I. Developed country Parties shall and other Parties that provide support should provide information support provided and mobilized;

II. Developing country Parties should provide information on support needed and received, to the extent possible, and as available and as applicable;

• Biennial Reports (BRs) and Biennial Update Reports (BURs) will be replaced by Biennial Transparency Reports (BTR);

• Reporting through BTRs:

I. Qualitative information in textual format;

II. Quantitative information in common tabular format (CTF);

III. Standardized formats - more clarity, comparability and consistency of information;

IV. More reporting parameters/provisions – more granularity of information.

Developed and developing country Parties reporting on FTC support

under the Enhanced Transparency Framework (ETF)

Thank you for attention

ECUADOR:

Experience in reporting on

finance, technology development

and transfer and capacity-building

(FTC) support

Challenges

TECHNICAL CAPABILITIES

• Lack of robust financing information to facilitate a transparent report of climate finance flows

• Need to develop knowledge in the public and private sectors to facilitate climate finance analysis and management

LEGAL / REGULATIONS

• Need to define enabling means to facilitate access to financing from international funding sources

• Need for an enabling regulatory framework to facilitate the development of tools that facilitate the proper registration of climate finance flows

• Absence of international consensus regarding the application of Article 6 of the Paris Agreement regarding the global price of carbon, prevents the development of financial instruments that facilitate access to economic resources for mitigation and / or adaptation

INSTITUTIONAL / GOVERNANCE

• The constant rotation of authorities in public institutions has weakened the achievement of institutional arrangements that strengthen the exchange of financial information between actors and the implementation of measures that promote the construction of MRV systems

• Barriers to access information

• Incompatibility of the financial databases managed by different governing bodies on the subject, which makes their use and complementarity difficult

• High level of fiscal indebtedness that reduces the possibilities of obtaining additional credit for climate purposes

• Lack of institutional capacity and knowledge about green credits, strategies or complementary financing instruments

Challenges

INTERNATIONAL FRAMEWORK ON

FINANCING

• Developing countries and developed countries have different interpretations of the concept of “additionality”, which makes it difficult to monitor financial flows and their standardized accounting. This weakens compliance with Article 13, paragraph 9 of the Paris Agreement, which relates to the provision of accurate information, generating distrust in the mobilization of resources between developed and developing countries.

• The international supply of financial resources sometimes establishes very rigid parameters regarding the type of initiative or project that they propose to support, including the expected level of impact, which in many cases does not match the real needs of developing countries.

TECHNOLOGICAL TRANSFERENCE

• There is little knowledge at the private institutional level about the offer, innovation and access to technologies that would allow optimization of processes and efficiency in results, as well as processes with zero or reduced emissions.

Italy reporting FTC under the UNFCCC: experiences,

lessons learned and options for the future

25 August 2021

Transparency information event

Italy MRV reporting experience

• Relevant guidelines for BRs:

• Decision 2/CP.17 Annex I paras 13-23 guidelines

• Decision 9/CP.21 for CTFs 7, 7a and 7b

• Decision 19/CP.18 for CTFs 8 and 9

• TER recommendations on FTC

• BR3 FTC: 1 encouragement on completess; 1

encouragement on transparency; 2 recommendations on transparency

• BR4 FTC: 1 recommendation on transparency (!)

• Institutional arrangements

• Resource providers

(Sistema Italia (bilaterale, multilaterale) e ruolo

OCSE)

• Data providers

• Use of footnotes and compilation of custom footnotes 1. Useful when containing instructions on the

compilation of the table

2. less meaningful when asking for information on methodologies to be provided in textual format 3. Looking forward:

• Should be clear and consistent where to report methodological information without redundancies

• Useful as instructions for reporters or reference to qualifiers (as applicable, as available etc)

Experiences (1), lessons learned (2) and

options for the future (3)

• Use of documentation boxes

1. Useful in the context of MRV;

linked to the tables through footnotes;

ease of reference to methodological information

2. Partially duplicates information included in textual format, as parameters’ definitions and methodologies used are largely applicable to all reported projects/activities

3. Information included should be useful and

meaningful, avoid useless duplications, providing a space for information not included elsewhere

Experiences (1), lessons learned (2) and options for the

future (3)

• Summary tables

1. Already contains meaningful and useful information

2. Avoiding human errors in the compilation of the other tables facilitates accuracy in the

summary table

3. Preferable automatic insertion of data

Experiences (1), lessons learned (2) and options for the

future (3)

• Parameters (1/2)

• Recipient and Sectors

1. Important to report on a range of sectors 2. Use of «Other» and data consultation

3. practical to improve a standardized list for countries, regions and sectors

• Channel (multilateral – table 7 a)

1. Climate-specific inflows and core-general; use of imputed multilateral shares, usually cross-cutting

2. Multi-bilateral and change in the approach since BR3 3. Outflows depends on institutions, reporting is national

Experiences (1), lessons learned (2) and options for the

future (3)

• Parameters (2/2)

• Type of support (bilateral – table 7 b)

1. Methodology to identify climate-specific support (Rio Markers and synergies with other

environmental objectives)

2. Challenges in specific quantification > depends on primary sources, and the general challenge in

identifying which proportion of finance generate a specific impact

3. Our reporting would likely be 40/100% throughout Experiences (1), lessons learned (2) and options for the

future (3)

• Private finance mobilized

1. Improvement in details through BRs

2. Challenges related to institutional arrangements and data collection; as part of the OECD CRS, expected to improve over time

3. Would be practical to have the possibility to report on support mobilized along with other quantitative and qualitative information in the support provided table

• Grant-equivalency ?

• For Italy, 94% of climate finance is in form of grants … Experiences (1), lessons learned (2) and options for the

future (3)

• Technology transfer and capacity building

• Useful information included…: it is possible to

include further activity-specific information that help understanding of best practices and failures

• …with a meaningful approach: would provide enhanced transparency and more completeness to the overall information in combination with a

«tick-box»

• No double counting, possibility of cross-linkages

Experiences (1), lessons learned (2) and options for the

future (3)

Conclusions

• Sectors and other parameters should be standardized - Standardization of lists of options and/or drop-down menus

• Cross linkages and automated data insertions

• Selected technology transfer and capacity

building activities to enhance accuracy and

avoid redundancies

Grazie!

[email protected] Karima Oustadi

Ministry of Ecological Transition – T.A. Sogesid Department for Climate and Energy

Directorate General for Climate, Energy and Clean Air (CLEA)

Division III – EU affairs and international climate action