1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Jane Ellis, OECD
Jane.ellis@oecd.org
Based on the draft paper “Replicating and Scaling Up Effective Climate Finance
Interventions” by Takayoshi Kato, Jane Ellis, Pieter Pauw, Randy Caruso
Institutional issues
influencing climate finance
replication and scaling up
CCXG Global Forum
18 March 2014

2. 2 Climate Change Expert Group
What is ‘institutional structure’?
 Who is involved in the design, management,
allocation, delivery of climate finance
 Public, private, mixed
 International, national, sub-national
 The system in place governing interactions
between these different actors
 Both can affect success in replicating and
scaling up climate finance interventions

3. 3 Climate Change Expert Group
What are the trade-offs?

4. 4 Climate Change Expert Group
CF aims influence institutional
structure and replication
 Some sources of climate finance (CF) have replication
or scaling up as a specific aim
 Often found with public CF sources (e.g. GEF, CTF)
 Design aims for integration/alignment with
government policies; learning and dissemination
 Attracting private CF an important part of replicating
and scaling up
 To date, mobilised private finance focuses on
mitigation activities
 Threshold contributions, eligibility/scope for initial
allocations influence what is subsequently replicated

5. 5 Climate Change Expert Group
Decision-making structure
 Wide variation in the number of steps, which
actors are involved
 This affects timeliness of disbursement – which in
turn affects risks and returns … as well as
replication
 Also variation in how CF is delivered:
 ex ante, e.g. grants, loans
 ex post, e.g. results-based finance

6. 6 Climate Change Expert Group
Decision-making structure: access
Management
board
Implementing
body
Executing
body
Management
board
Implementing
body
Executing
body
International level
National level
Adapted from ODI and UNDP, 2011
Indirect accessDirect accessEnhanced
direct access

7. 7 Climate Change Expert Group
Scale of interventions
 Institutional framework for replicating/scaling up
will vary dependent on scale of interventions
 Encouraging household-level actions requires
local actors - or actors with established links
to households (e.g. national electricity utility)
 Buy-in (and other actions) by national
government key to ensuring scaling up
 Capacity building important for all actors
 Links between actors important – so successful
frameworks encourage regular communication

8. 8 Climate Change Expert Group
Tackling multiple barriers
 Successful interventions often tackle multiple
barriers
 Financial and information (e.g. IDCOL)
 Policy framework, financial barriers (e.g.
Ouarzazate)
 Financial barriers, capacity building (GEF)
 … and use multiple financial instruments to do
so

9. 9 Climate Change Expert Group
Insights
 Institutional frameworks can help or hinder
implementation of climate finance interventions…
 Replication/scale-up helped by good information
flow to a wide variety of actors
 Hindered by long time-delays – particularly
private finance
 Trade-offs between safeguards and efficiency
 Different types of multilateral access to CF exists –
each has institutional implications

10. 10 Climate Change Expert Group
Discussion questions
 What are the institutional challenges that sources
of climate finance face in replicating and scaling up
climate finance to mitigation and adaptation?
 How can international climate funds further
contribute to encouraging mobilisation of climate
finance from various sources (including private
sector) through scale-up and replication processes?