Antwi-Boasiako Amoah (EPA, Ghana)(aantwib@gmail.com,/ antwi-boasiako.amoah@epa.gov.gh)

Climate Change Expert Group Global Forum 18 March 2014

OECD Conference Centre, Paris

Challenges of Institutional Frameworks in Scaling up Climate

Finance in Ghana

Reflection Questions 1.What are the challenges in designing suitable

institutional structure of climate finance sources that can facilitate scale-up and replication of climate finance interventions?

2. 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?

Institutions are the capital stock for policy-making

INSTITUTIONS

Production of

Policies

Review of

Policies

Implementation of Policies

Amoah, 2014

INSTITUTIONS-WHAT THEY ARE?

the nature of institutions (both at country and international levels) is crucial for access, replication and upscale of climate financing

Institutional structures can enhance or constrain climate financing at all levels

It is more challenging and complicated for developing countries due to high dependency on international climate funding sources and vulnerable economies

Governance &

coordination

Capacity building

Research & knowledge

management

Finance

International

cooperation

communicationMonitoring &

Reporting

Ghana’s National ClimateChange Policy Framework

CLIMATE CHANGE GOVERNANCE INSTITUTIONAL FRAMEWORK IN GHANA

Institutional Challenges to Climate Financing in Ghana

Absence of or little practical institutional coordination on climate change

Funding for climate change is largely at the project level(notable exception to this is NREG a multi donor multi sector budget support programme of $25-30m pa for 5 years)

Progress to date has been more donor-drivenFunding for CC in Ghana is largely provided bi-

laterally or through specific funds administered by the World Bank or UNDP and to a limited extent through global funding mechanisms

Donor activities have not, to date, focused on developing systemic ownership of the agenda across government (OECD, 2011)

Support has mainly been piecemeal and fragmented via never up-scaled pilot projects (e.g. AAP)

Institutional Challenges to Climate Financing in Ghana (cont.)

The seeming absence of private sector in climate financing

Different reporting as well as M&E systems between donor agencies and implementing institutions often results in delays

Donors are also in principle aligned behind government priorities for climate change but in

practice are `not very Paris like’ in their behaviour (OECD, 2011)

PARIS PRINCIPLES

PERCENTAGE (%) REALIZATION BY STAKEHOLDERS

GOVERNMENT CSO DEV. PARTNERS

Mutual Accountability

50 38 50

Managing for Results

- 38 60

Harmonization 100 90 70

Alignment 75 25 50

Ownership 50 75 80

Assessment of Paris Declaration(PD) Principle in Ghana by OECD in 2011

OECD DAC Key Principles to Inform Climate Change Financing

Ownership: Activities in response to climate change should be country‐driven and be based on needs, views and priorities of partner countries. National sustainable development strategies and climate change policies should be taken into account where they exist. Recipient countries should lead in establishing and implementing their climate change strategies in a broad consultative process ensuring full integration into policies, plans and programmes in all relevant sectors.

Alignment: Climate change financing needs to be integrated into countries‘ own planning and budgeting mechanisms to ensure genuine ownership. Where possible, new and additional climate change financing is channeled through countries‘ existing financial allocation systems.

Capacity Development: Capacity development is critical to ensure that recipient countries have the sufficient capacity to absorb and manage climate change financing.

Harmonization: To reduce administrative costs, it is important that the international community coordinates their actions, simplify procedures and share information to avoid proliferation and duplication of funding mechanisms. A shift to programmatic approaches can help.

Managing for Development Results: The Bali Action Plan acknowledged the challenge of yielding actual results on the ground and stressed the need for actions to be undertaken by Parties to implement the convention to be ―measurable, reportable and verifiable (MRV)‖ (OECD Factsheet Oct. 2009)

ConclusionGhana’s visibility at the international level

climate issues has not reflected proportionally in attracting international climate funding

Ownership, alignment, capacity development and harmonization still remain key institutional challenges at the country level for climate finance up-scaling though some modest achievements have been made

THANK YOU