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May 2018
2. Parliament, District and Lower Level Councils need to be availed with accurate and timely information to support decision
making in their legislative and monitoring roles. Quite urgently, Parliament should be supported to pass a climate change law
that clearly states both obligations and penalties.
3. Establish and capitalise a climate change fund. Once established, the fund should ensure stakeholder involvement to identify
innovative solutions to climate change as well as monitor the implementation of funded projects to enable resilience building,
as well as building in feedback loops to increase efficiency and effectiveness in use of climate finance.
4. The Government of Uganda should closely follow up the applications for the National Implementing Entities, by expeditiously
addressing any questions pending raised. In equal measure, investments towards building internal capacity to develop
bankable proposals are urgent. Resources including human, time and financial need to be allocated towards this.
1.0 Introduction
Climate change is one of the greatest challenges facing humanity this century, and as a global challenge it requires global
solutions. The threat of climate change is multidimensional and its impacts transcend national borders (MWE 2015). This is
being enabled through the United Nations Framework Convention on Climate Change (UNFCCC) in which close to 195 countries
agreed to pursue efforts to limit global temperature rise to 1.5 °C above pre-industrial levels (UNFCCC, 2015). Therefore
countries are obliged to develop and implement ambitious climate actions so as to meet these targets, also known as Nationally
Determined Contributions (NDCs) of the Paris Agreement .
It should be noted that for countries to meet such commitments, they require necessary means of implementation. Article 4.3
of the UNFCCC stipulates that the developed country Parties and other developed Parties included in Annex II shall also provide
such financial resources, including for the transfer of technology, needed by the developing country Parties to meet the agreed
full incremental costs of implementing such commitments.
Furthermore, the Paris Agreement provides for developed countries to continue to support climate action to reduce emissions
and build resilience to climate change impacts in developing countries through continuation of their existing collective goal to
mobilize USD 100 billion per year by 2020 and extend this until 2025.
1
The Paris Agreement was agreed in December 2015 after several years of negotiation under the UNFCCC, to strengthen global climate change response.
It came into force in November 2016, thus setting a basis for Countries Party to the Agreement to communicate their Nationally Determined Contributions every 5 years.
POLICY BRIEF Delivering Climate Finance to Implement Uganda’s National Determined Contributions (NDCs)
According to the Overseas Development Institute (2016), The ActAlliance Report notes that the European Commission
Uganda’s total expenditure on climate change-relevant (EC), the European Development Fund (EDF), the European
actions has remained well below 1% of Gross Domestic Investment Bank (EIB) and individual EU Member States
Product (GDP), which is much less than 1.6% that the provided only 19% of climate finance to vulnerable least
implementation strategy of the 2015 National Climate Change developed countries (LDC), while 78% of EU funding went to
Policy recommends. middle income countries like Turkey, Ukraine and India.
This suggests that significant additional financing will be But according to Africa’s Adaptation Gap 2 Technical report
required above what is currently spent on climate change- (2015), climate change challenge exceeds the capacity to
relevant actions if the climate change policy goals are to be respond to projected damages and impacts through domestic
met (Overseas Development Institute, 2016). In order to fully resources, even if the base to raise additional funding is
implement the aforementioned adaptation and mitigation broadened. Scaled-up international support for African
priority actions, some cross-cutting initiatives must be countries is therefore critical.
undertaken.
2
Ministry of Water and Environment (2015), Economic Assessment of the Impacts of Climate Change in Uganda. Kampala, Uganda.
POLICY BRIEF Delivering Climate Finance to Implement Uganda’s National Determined Contributions (NDCs)
In Uganda the total cost in the adaptation priority sectors is estimated at around USD 2.4 billion over the next 15 years.
Although the total costs of the activities in the priority mitigation sectors are uncertain, the upfront capital investment for the
renewable energy installations has been estimated at USD 5.4 billion over the next 10 years. Additionally, the initial Costed Plan
for the National Climate Change Policy indicates costs of around USD 36 million over the 10 years for the implementation of
measures in the forestry sector (MWE, 2015).
3.1 Understanding Green Climate Fund (GCF) initial resource mobilization effort that began in June 2014
raised USD 10.3 billion from 43 contributing countries
The Green Climate Fund (GCF) of the UNFCCC was agreed at (including eight developing countries) as well as a handful
the Durban COP and became fully operational with its first of regions and cities. By September 2017, USD 10.1 billion
projects approved at the end of 2015. GCF is the newest actor of pledged finance was formalized through contribution
in the multilateral climate finance architecture and became agreements. Heading into COP 23 in Bonn under a Fiji
fully operational in 2015. Since then, it has approved USD Presidency, this climate finance fundamental provides a
2,634 million for 54 projects. The GCF is an operating entity snapshot of the operationalization and functions of the Fund.
of the Financial Mechanism of the UNFCCC. While the Fund’s role in a post-2020 climate regime as the
major finance channel under the UNFCCC was confirmed, the
It is a legally independent institution hosted by South Korea, scale of its resourcing remains to be clarified post-Paris.
has its own secretariat and the World Bank as its interim
trustee. It functions under the guidance of, and is accountable Uganda is implementing a number of the projects among
to, the UNFCCC COP. them they include: Government of Uganda and UNDP
launched implementation of a $44.26 million “building
The 24 GCF Board members, with equal representation of community resilience, wetlands ecosystems and associated
developed and developing countries with support from the catchments in Uganda” through GCF funding (UNDP 2017).
secretariat, have been working to operationalize the Fund
since their first meeting in August 2012. 3.2 Global Environmental Facility (GEF)
This year, the GCF focused on addressing policy gaps in The GEF is an operating entity of the Financial Mechanism
essential policies and frameworks to receive and manage of the UNFCCC, serving in the same function for the Paris
finance as well as policy reforms to speed up proposal Agreement, with a long track record in environmental
approval and disbursement of approved funding. By October, funding. It also serves as financial mechanism for several other
it also accredited a total of 59 implementing entities. The conventions, including on biodiversity and desertification.
Government of Uganda and UNDP launched implementation of a $44.26 million “building community
resilience, wetlands ecosystems and associated catchments in Uganda” through GCF funding (UNDP 2017).
POLICY BRIEF Delivering Climate Finance to Implement Uganda’s National Determined Contributions (NDCs)
The CIFs was established in 2008 are administered by 3.4 The Adaptation Fund (AF)
the World Bank, but operate in partnership with regional
development banks including the African Development Bank This is financed through a 2% levy on the sale of emission
(AfDB), the Asian Development Bank (ADB), the European credits from the Clean Development Mechanism of the Kyoto
Bank for Reconstruction and Development (EBRD) and the Protocol and, in times of low carbon prices, increasingly
Inter-American Development Bank (IDB). reliant on developed country grant contributions. Operational
since 2009, total financial inputs amount to USD 619 million,
The CIFs finance programmatic interventions in selected with total cash transfers to projects of USD 237 million. The
developing countries, with the objective of improving AF pioneered direct access to climate finance for developing
understanding of how public finance is best deployed at scale countries through accredited National Implementing
to assist transformation of development trajectories. The Entities that are able to meet agreed fiduciary as well as
CIFs have a total pledge of USD 8.24 billion. They include a environmental, social and gender standards, as opposed
Clean Technology Fund with USD 5.48 billion in contributions to working solely through UN agencies or Multilateral
and USD 2.75 billion in cash transfers to projects to-date, Development Banks (MDBs) as multilateral implementing
and a Strategic Climate Fund (SCF), with USD 2.76 billion agencies (Bird et al 2017). Currently Uganda is implementing
in contributions and USD 856 million in cash transfers to the project “Uganda Enhancing resilience of communities
projects as of October 2017. to climate change through catchment based integrated
management of water and related resources in Uganda”
(EURECCCA).
POLICY BRIEF Delivering Climate Finance to Implement Uganda’s National Determined Contributions (NDCs)
The four-year project is funded by the Adaptation Fund (USD emissions from deforestation and forest degradation, forest
7,751,000) and will be executed by the Ugandan Ministry of conservation, sustainable forest management and the
Water and Environment in partnership with Global Water enhancement of forest carbon stocks (REDD+) Others sources
Partnership, Eastern Africa while the OSS will serve as an of funds include but not limited to the Climate Investment
Implementing Entity . Fund of the World Bank and the Global Energy Efficiency and
Renewable Energy Fund (GEEREF) which leverages public
3.5 Multilateral Development Banks (MDBs) sector funds to catalyse private sector investment into clean
energy projects (ACTADE 2017).
These play a prominent role in delivering multilateral climate
finance, with climate finance commitments of USD 27.4 The African Development Bank is also the Trustee for the
billion made in 2016 alone (EBRD et al., no date). Many have Africa Renewable Energy Initiative (AREI) and will house the
incorporated climate change considerations into their core AREI Trust Fund with expected USD 10 billion in resources.
lending and operations, and most MDBs now also administer Climate finance appear to have directed mitigation and
climate finance initiatives with a regional or thematic scope. adaptation finance where by in Uganda a country with high
vulnerability to climate change is expected to benefit from
The World Bank’s carbon finance unit has established the Adaptation finance that targets poor and vulnerable and the
Forest Carbon Partnership Facility (FCPF) to explore how largest volumes of REDD+ finance targets demonstration to
carbon market revenues could be harnessed to reduce political commitment to tropical-forest protection.
→→ Coordination of finances that are existing and the impact of the funding that is provided is
not clear. There is limited public knowledge about existing finances and to what interventions.
Scanty information can be found on some websites and in newspapers. However, there is no
single one-stop center to monitor how much financing has been mobilized (domestic and
foreign). This limits learning and accountability not only towards value for money, but most Access to
critically towards adaptation and mitigation objectives. financing is a
→→ Access to financing is a major barrier not only to Government, but also to non-state actors. Taking
major barrier
the global financing mechanisms for example, each window has elaborate but cumbersome not only to
criteria for accreditation. Very few countries in Africa for instance have succeeded in being Government,
accredited directly, thus remaining dependent on multilateral agencies such as the UNDP to
access financing on their behalf. While this is fine in the short term, National Implementing but also to
Entities (NIEs) are desired for the midterm and long run, to ensure adequate capacity non-state
development and accountability to the people.
actors.
→→ Related to the above are the low capacity levels to develop bankable projects. Compared
to multi-lateral implementing entities that have fully fledged departments for resource
mobilization, Uganda Government and non-state actors do not have adequate expertise, and
resources including time, to develop bankable proposals.
→→ There are limited joint project fundraising between CSOs and Government due to lack of
operational frameworks
3
https://www.climateinvestmentfunds.org/country/uganda
4
https://www.gwp.org/en/GWP-Eastern-Africa/WE-ACT/News/oss-and-the-government-of-uganda-sign-an- agreement-for-the-implementation-of-eureccca-project-in-uganda/
POLICY BRIEF Delivering Climate Finance to Implement Uganda’s National Determined Contributions (NDCs)
6.0 Conclusion
There are now more than ten international multilateral funds created by the global community, to channel climate finance to
developing countries, including the GCF. Ensuring that the climate funds created under the UNFCCC have adequate finance is
critical to securing the ambitious global agreement on climate change.
There are now a large number of multilateral climate funds, both under and beyond the UNFCCC convention that support
adaptation and mitigation in developing countries. Each of these funds had a particular purpose and function at the time of
their establishment, but there is now substantial overlap, and too little money available through these disparate channels.
Hence, there is need to simplify how they can be accessed by various actors interested in low carbon development pathways
and climate resilient related activities. It is time to simplify and consolidate the global climate-finance, and scale up finance.
Multilateral climate funds have brought developed and developing countries together to agree on how best to finance
interventions to address global climate change, and are increasingly inclusive of civil society, private sector and other inputs
References
• ActAlliance (2018). An analysis of the Climate Finance Reporting of the European Union http://actalliance.eu/wp-content/
uploads/2018/04/Analysis-of-the-climate-finance-reporting-of-the-EU.pdf accessed April 24, 2018
• ACTADE (2017). An outlook of Uganda’s Climate Finance Landscape
• Bird, N., Watson, C., & and Schalatek., L. (2017). The Global Climate Finance Architecture Overseas Development Institute
and Heinrich Böll Stiftung North America
• Green Climate Fund Website: www.greenclimate.fund (accessed on February 9, 2018)
• Ministry of Water and Environment (2015). Economic Assessment of the Impacts of Climate Change in Uganda. Kampala,
Uganda.
• Ministry of Water and Environment (2015). Uganda’s Intended Nationally Determined Contribution :http://www4.unfccc.
int/submissions/INDC/Published%20Documents/Uganda/1/INDC%20Uganda%20final%20%2014%20October%20%20
2015,%20minor%20correction,28.10.15.pdf accessed February 9, 2018
• MWE. 2015. National Climate Change Policy. Ministry of Water and Environment (MWE), Kampala
• ODI (2014). Climate finance: is it making a difference? A review of the effectiveness of Multilateral Climate Funds
• ODI (2016). Public spending on climate change in Africa Experiences from Ethiopia, Ghana, Tanzania and Uganda
• OSS (2017). Kick-off Meeting EURECCCA – Project, funded by Adaptation Fund http://www.oss-online.org/en/kick-meeting-
eureccca-%E2%80%93-project-funded-adaptation-fund
• UCSD (2017). Uganda National baseline study for “Promoting Implementation of the Paris Agreement (PIPA) in East Africa
• UNDP Uganda (2017) http://www.ug.undp.org/content/uganda/en/home/presscenter/pressreleases/2017/11/29/press-
release-government-of-uganda-and-undp-launch-implementation-of-a-44-26-million-project-to-restore-wetlands-and-
build-community-resilience.html accessed on 12 March, 2018
• UNEP (2015). Africa’s Adaptation Gap 2 Technical report: http://climateanalytics.org/files/africa_adaptation_gap_2014_1.
pdf accessed April 24, 2018
• UNFCCC (2015). Paris Agreement http://unfccc.int/paris_agreement/items/9485.php accessed March 12, 2018
Photo Source: UCSD
This Policy Brief has been prepared by the Uganda PIPA project Campaign Group members (Climate Action
Network - Uganda, African Center for Trade and Development, Advocacy Coalition on Sustainable Agriculture,
and Environmental Management for Livelihood Improvement – Bwaise Facility) led by UCSD as part of the
Project: Promoting Implementation of the Paris Agreement (PIPA) in East Africa - with a pro-poor focus involving
INFORSE Network, Sustainable Energy, TaTEDO and SusWatch Kenya supported by CISU (Denmark).
Through the PIPA, the above Partners are contributing to strengthening the pro-poor focus and climate change
ambitions in the implementation of the Paris Agreement in East Africa. This is being done through assessing
implementation (readiness) of the NDCs. This is the principal cornerstone of the Paris Agreement. More about
the Project: http://www.inforse.org/africa/East_Africa_PIPA.htm
Uganda Coalition for Sustainable Development (UCSD), P.O. Box 27551 Kampala. Tel:+256414269461,
E-mail: ugandacoalition@infocom.co.ug, Web: www.easuswatch.org, Twitter: @ugandacoalition