Adaptation Fund / German climate finance / International climate finance
Overview of financial commitments made by the German government in the context of COP21
COP21 offered a variety of financial commitments which were also used as a leveraging tool for the negotiations.
A broad range of financial commitments were made – and used tactically for negotiating leverage – at COP21. Donor countries delivered climate finance pledges and announcements by the dozen at the UN Climate Change Conference in Paris. A (non-exhaustive) summary can be found here, for example. As numerous (and welcome) as the announcements were, they must not be allowed to obscure the generally rather poor outcome in terms of climate finance, especially with regard to climate finance in the new agreement, i.e. for the period after 2020.
The German government also made several announcements, including the welcome pledges to the Adaptation Fund and the Least Developed Countries Fund. The following table lists the commitments made by the German government for information purposes. Note that most of the announcements are not pledges of new funds, but focus on individual initiatives or projects within the framework of climate-related bilateral Financial and Technical Cooperation and the International Climate Initiative (ICI). All of the announcements fall within the context of the doubling of annual climate finance by 2020 declared in May 2015, and thus do not go beyond that commitment, but simply provide information on how the funds will be deployed.
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Tabelle 1: Financial commitments by the German government in the context of COP21 |
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Purpose |
Amount |
Type of funds |
Period |
Budget |
Remarks |
|
Climate finance in general |
Doubling of the annual volume by 2020 |
All instruments and sources, including but not limited to budgetary funds
|
2014-2020 |
BMZ, BMUB*
|
Source | All other “commitments” in this table fall within this general commitment to double climate finance volume. |
|
Adaptation Fund |
€50 million |
Grant to the AF (budgetary funds) |
2015
|
BMUB |
Source | The fund supports adaptation projects in developing countries. |
|
Least Developed Countries Fund |
€50 million |
Grant to the LDCF (budgetary funds) |
2015-2016 |
BMZ |
Source | 50% of payment effected in 2015; remainder in 2016. The fund supports the most urgent adaptation measures in the LDCs. |
|
G7 Africa Renewable Energy Initiative |
€3 billion |
Grants and loans for bilateral Financial and Technical Cooperation, possibly ICI (budgetary and market funds) |
2015-2020 |
BMZ, BMUB |
Source | Corresponds to the plans for Financial and Technical Cooperation in the energy sector in the course of the growth until 2020. ICI: only small amounts. Industrialized countries are expected to contribute a joint total of $10 billion for the installation of an additional 10 GW of renewable generating capacity by 2020. |
|
Hedging of currency risks for clean energies in Africa |
€30 million |
Grant to KfW (budgetary funds) |
one-time |
BMUB |
Source | Not a commitment in the strict sense, but “only” an ICI project. The funds go to KfW, which will offer risk insurance for investments in renewable energy and energy efficiency via the currency hedging provider TCX. |
|
MRV Trust Fund |
$7 million |
Grant to the United Nations Office for Project Services (budgetary funds) |
one-time |
BMUB |
Source | Not a commitment in the strict sense, but “only” an ICI project. Supports developing countries in building capacities to measure, report and verify greenhouse gas data. |
|
Forest conservation |
$1.1 billion |
Grants and loans for bilateral Financial and Technical Cooperation, as well as ICI (budgetary funds) |
2015-2020 |
BMZ, BMUB |
Source | Corresponds to the plans for Financial and Technical Cooperation in the energy sector in the course of the growth until 2020. Together with Norway and the UK, Germany will contribute $5 billion toward the reforestation and rehabilitation of degraded tropical forests. |
|
InsuReslience (G7 climate risk insurance) |
€150 million |
Grants and loans for bilateral Financial and Technical Cooperation (budgetary funds) |
2015-2016 |
BMZ |
Source | Various already-planned measures/resource deployments. €30 million are a reallocation of funds originally earmarked for the Special Climate Change Fund (SCCF). The initiative is intended to provide access to climate risk insurance to an additional 400 million people. |
|
Transformative Carbon Asset Facility |
€25 million |
Grant to the World Bank |
one-time |
BMUB |
Source | |
* BMZ: Federal Ministry for Economic Cooperation and Development; BMUB: Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety
Jan Kowalzig / Oxfam
