This presentation gives an overview of OECD work on tracking public and private climate finance, including bilateral and multilateral development finance and private finance.

1. TRACKING PUBLIC AND
PRIVATE CLIMATE FINANCE
OECD side event at the UNFCCC COP20
Lima, 4 December 2014
Stephanie Ockenden, Policy Analyst
Development Co-operation Directorate
Raphaël JACHNIK, Policy Analyst
Environment Directorate

2. 0 20 40 60 80 100
Mobilised Private Finance
Private Finance
Multilateral Concessional
and Non-Concessional
Flows
Bilateral Other Official
Flows
Bilateral Official
Development Assistance
Known
Unknown
We have only a partial picture of climate-related
finance to developing countries…
Illustrative magnitudes & data gaps
?
?
?
Annual Av., USD, Bn
Initiatives to improve
data quality & coverage:
 OECD DAC Task Team
& DAC post-2015
development finance
mandate
 International
Development Finance
Club (IDFC)
 MDB Joint Approach
 OECD-led Research
Collaborative on
Tracking Private
Climate Finance

3. Climate-related development finance:
Improving the statistical picture…
3

4. 4
Presenting an integrated picture of bilateral & multilateral
climate-related development finance flows in 2013…
Commitments of USD 37bn in 2013, reported by DAC members,
MDBs, GEF & UAE
 Robustness -> Project-level data
collected and monitored against
standardised classifications,
improves consistency and avoids
double counting
 Transparency -> data
publically available

5. Collecting & compiling project-level data...
Owing to data gaps, USD 37bn represents a low-end range based
on data reported....
• Rio markers identify projects climate change
objectives – principal or significant
• Bilateral Official Development Assistance
(ODA), 28/29 members + UAE,
• Over 6,000 activities
• Bilateral Other Official Flows (OOF),
partial data only for 4 members
Bilateral
• MDB Joint approach - AfDB, AsDB, EBRD,
EIB, IDB, IFC, and WB
• Climate-related multi funds – GEF
• Over 1,000 activities
• Gaps remain on data from other funds..
Multilateral

6. Total 37 billion
13 bn
10 bn
Bilateral principal
Multilateral outflows
3.4 bn
14 bn
Bilateral significant
Non-DAC core contributions
MDB’s capital resources
DAC core contributions
Recipient perspective
Provider perspective
Two perspectives can be taken from the statistical system....
Imputed multilateral contributions

7. Total 37 billion
13 bn
Bilateral
principal
Multilateral outflows
3.4 bn
14 bn
Bilateral
significant
Non-DAC core contributions
MDB’s capital resources
DAC core contributions
Recipient perspective
Provider perspective
10 bn
Climate-related development finance ≠ UNFCCC Climate Finance
Rio markers are descriptive, allowing for an approximate quantification of financial flows

8. 8
Future improvements underway for 2015:
4 December 2014 Tracking private and public climate finance
Quality and
Coverage
Use of data for
reporting
Broader
measures
• On bilateral ODA and OOF
• Increasing data collection from
multilateral providers.
• Advancing collaboration between
the OECD, MDBs & others
• Improving data and understanding
from a recipient perspective
• Developing the evidence based to
support more quantified reporting
• Improving imputed multilateral
contributions
• Improving coverage of data
beyond ODA, including on
amounts mobilised from the
private sector through public
actions (e.g guarentees)

9. Towards improved data and
methods for estimating mobilised
private climate finance
9

10. +/- USD 35
billion per
year
Energy
efficiency
Transport
Agriculture
Water
Waste
Industry
Data and methodological challenge
4 December 2014 Tracking private and public climate finance 10
Source: Caruso R. and R. Jachnik (2014), Exploring potential data sources for estimating private
finance, OECD Environment Working Paper http://dx.doi.org/10.1787/5jz15qwz4hs1-en
Renewable
energy
Tracking private climate finance Estimating mobilisation
Bilateral public
guarantee
Multilateral
public loan
Private
loan
Private
equity
Domestic
public
support
policy
Bilateral
grant and
capacity
building

11. 11
Measuring private finance mobilised by
public finance in OECD DAC statistics
4 December 2014 Tracking private and public climate finance
Scope
Methods for public finance instruments aimed at mobilising private capital
To date: syndicated loans, shares in collective investment funds, guarantees
Causality
Complex to measure statistically
 Need for assumptions that:
 Reflect reality
 Are conservative
 Are commonly agreed
 Vary by financial instrument
Source: On-going OECD DAC work on the
mobilisation effect of public development finance
Example of DAC method for guarantees
Amount mobilised defined as face value
of debt/equity instrument guaranteed
· Causality: assumption that private
financier would not have participated
without a public guarantee
· Attribution: pro-rata-based in case of
co-guarantors
Attribution
Rules and methods need to
vary by financial instrument

12. 12
Estimating the mobilisation effect of public
finance and policy interventions
4 December 2014 Tracking private and public climate finance
Source: Haščič I., M. Cárdenas Rodríguez, R. Jachnik, J. Silva and N. Johnstone (2014), Public interventions and private
finance flows: empirical evidence from renewable energy financing, OECD Environment Working Paper (forthcoming)
Econometric simulation of the effect of public interventions renewable energy
private finance flows (2000-2011) from developed to developing countries
41.5%
15.7%
14.8%
3.3%
2.4%
0% 10% 20% 30% 40% 50%
All public interventions
North-South bilateral
public finance
Multilateral public finance
Feed in tariff in
destination country
Renewable energy quota
in destination country
 Testing methods:
exploratory results
 Likely underestimate
 Remaining % could be
explained by country and
market conditions.
 Currently only possible for
renewable energy (mostly wind
and solar) and at aggregate level
 Missing suitable data on key
variables e.g. domestic
investment conditions

13. In the short-term
· Test and implement practical
methods
· Provide transparency on
underlying definitions,
assumptions and limitations
In the longer term
· Converge on definitions
· Build data systems e.g.
private co-financing data
· Improve and standardise
methods
13
Ways forward
4 December 2014 Tracking private and public climate finance

14. OECD DAC Statistics on
Climate-related Development Finance
Stephanie.OCKENDEN@oecd.org
http://oe.cd/Riomarkers
Raphael.JACHNIK@oecd.org
www.oecd.org/env/researchcollaborative
14
Thank you
4 December 2014 Tracking private and public climate finance