The UNEP – Bilateral Financial Institutions Climate Change Working Group (BFI-CCWG), of which NEFCO is a member, has launched two reports on climate change financing. The reports were presented at a side event of the UNFCCC COP/MOP meeting last Friday in Durban, South Africa.
NEFCO contributed to the study on “Innovative Climate Finance” which communicates the financing work of a number of international financial institutions who are member of the BFI-CCWG initiative. NEFCO Vice President Ash Sharma, who attended the event on Friday, highlighted the Nordic institution’s work with Nationally Appropriate Mitigation Actions (NAMAs). NEFCO, as part of the Nordic Partnership Initiative, is establishing “readiness” activities for the fledgling new market mechanisms in Peru and Viet Nam.
The report highlights a range of innovative financing instrument employed by members of the BFI-CCWG, which consists of UNEP, Agence Française de Developpment (AFD), European Investment Bank (EIB), Japanese International Cooperation Agency (JICA), KfW Entwicklungsbank (German Development Bank) and NEFCO. These instruments include blending facilities which package loans and grants, support for policy development, green credit lines, risk sharing instruments and carbon finance support. NEFCO’s work in the area of climate guarantees, carbon finance products and NAMA readiness is highlighted in the report.
The second report is entitled Bilateral Finance Institutions and Climate Change, and presents a mapping of public financial flows for mitigation and adaptation to developing countries from the institutions in 2010. NEFCO has been a member of the BFI-CCWG since its inception in 2009, and this is the third mapping report produced by the group.