Building local capacities for greater access to climate change financing

The 10 warmest years in global meteorological history have all occurred in the last 15 years. The 20th century has been the warmest globally in the last 600 years. According to the IPCC 4^th Assessment Report, in the western Indian Ocean region, a 30% loss of corals reduced tourism in Mombasa (and Zanzibar) and resulted in financial losses of about USD 12-18 million. The National Climate Change Response Strategy suggests that the financial requirement to move Kenya into a low carbon, climate resilient growth path is estimated at USD 2.75 billion per annum.

Climate change and variability are considered to be major threats to sustainable development. The major areas likely to feel the real test impacts include the economy, water, ecosystems, food security, coastal zones, health and the distribution of populations and settlements. Climate change effects are already being felt in Kenya. Moreover, widespread poverty, recurrent droughts and floods, inequitable land distribution, overdependence on rain-fed agriculture, and few coping mechanisms all combine to increase people’s vulnerability to climate change.

To mitigate this growing global phenomenon and build the capacity for local response - especially in accessing climate change finance, UNDP Kenya hosted a critical “Boots on the Ground Global Workshop” in Nairobi, today 19^th September 2012. This workshop is an important building block and a major milestone in the development of climate change policies in Kenya. The workshop takes place in the background of the UN Conference on Sustainable Development, (the Rio+20) in June this year aptly themed “Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication”.

In his opening remarks, UN Humanitarian and Resident Coordinator in Kenya, Aeneas C. Chuma emphasized on the need to seek climate change finance in order to meet the financial costs involved in the shift to a low-emission climate resilient economy. “International climate finance resources have been estimated to reach US$ 100 billion by 2020. The ability to efficiently absorb and utilize funding from both new and existing sources is critical for developing countries and for Kenya to effectively address impacts of climate change” he said.

UNDP believes that developing countries will face three key climate finance challenges in the coming decade: access to new and innovative sources of climate finance, promotion of synergies between development and climate finance, and use and delivery of limited sources of nationally generated public finance to catalyze and leverage climate capital.  However, Mr. Chuma indicated that there are already more than 50 international public funds, 45 carbon markets and 6,000 private equity funds providing climate change finance. Each of these public, private, bilateral and multilateral sources offers new opportunities for Kenya to address its climate and development needs. “It is estimated that climate change adaptation projects and programmes valued at about USD 1.4 billion, are currently supported by bilateral agencies in Kenya,” he added.

As the leading global organization in the fight against poverty, with a presence in 177 countries and territories, UNDP is responding on the front lines of climate change – where it hits the world’s 2.6 billion poorest people the hardest. UNDP works with national, regional, and local planning bodies to help them respond effectively to climate change and promote low-emission, climate-resilient development.

UNDP support focuses on three areas: connecting countries to knowledge, experience and resources to help people build a better life; helping countries build more resilient societies; and strengthening the capacity of countries to access, manage and account for climate finance.