The Fast Start Finance (FSF) period is drawing to a close and negotiations on the long-term framework for climate finance have gathered momentum. Climate Analytics gGmbH, the Wuppertal Institute for Climate, Environment and Energy GmbH, and Germanwatch e.V. have carried out a study analysing the German FSF experiences to date. Based on these findings, the authors draw up recommendations for the further shaping of long-term financing for mitigation and adaptation.
The study finds that the first two years of German Fast Start Finance engagement have produced positive results in terms of gross flows, but the envisaged balance of allocation between thematic areas of mitigation, adaptation and REDD+ has not yet been achieved. A number of challenges and shortcomings were identified, not all of which can be addressed nationally. There is the urgent need for clear definitions and objectives at the international level. The lack of guidance at the international level has posed a challenge for communication and evaluation, leading to misconceptions and differing expectations. Associated with this is the need for increased efforts in communication and coordination between different national and international actors both on the donor and recipient side. The use of EU-ETS revenues for climate-related measures as implemented by Germany can be considered an innovative approach. To be sustainable in the long term this needs to be flanked by mechanisms that ensure a sufficient price levels and thus revenue flows. For long-term funding it is important to clarify the nature of the USD 100 billion/year by 2020 commitment, including the sources of these funds. The international community also needs to identify a clear avenue to ramp up funding from current levels to the envisaged USD 100 billion, ideally in distinct periods and with common definitions of key parameters.
The study is available for download below. It can also be found on the BMU website.
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