October 11th, 2016 00:00 - November 01st, 2016
Introduction to Results Based Climate Finance (RBCF) (Facilitated)
The UNFCCC’s twenty-first Conference of Parties (or COP21), held in December 2015, resulted in 186 countries agreeing to address climate change and set the foundation for the necessary transition of global economy towards a low-carbon pathway. As part of the Paris process, more than 180 countries submitted their pledges – the Nationally Determined Contributions, or NDCs – laying out the actions they will take to reduce emissions and increase resilience to climate change impacts. The significant investment needs embedded in the NDCs will have to be mobilized, and quickly and effectively channeled into climate related initiatives. The requirements on financial instruments to support climate action are multiple:
• Foster crowding in much higher levels of private sector investments and ensure the most effective use of the available public finance resources, in order to significantly upscale overall climate finance flows.
• Be applicable for financing transformative initiatives towards low-carbon development in different national and sectoral contexts, and enable the alignment of climate and development finance.
• Support monitoring and verification of mitigation efforts by single countries in order to provide data for the assessment of achievements towards meeting global mitigation.
After COP21, the concept of RBCF again came into focus within the international climate finance community as one of the potentially suitable instruments for delivering climate finance in line with the Paris Agreement ambition. The World Bank is proactively developing approaches and financial instruments to support climate action. In addition to well established financial instruments, like grants, concessional loans, and guarantees, the WBG has been using two relatively new instruments in climate finance - Blended Climate Finance and the Results-Based Climate Finance. These instruments are receiving more attention in the context of mobilizing private climate finance resources and combining development and climate finance. The course Introduction to Results Based Climate Finance (RBCF) explains the concepts and specific advantages and limitations of the RBCF, and offers answers and suggestions for using this instrument in climate and development finance.