GGCA Gender and Climate Change Training Manual - Women's ...

As with public sources of climate change financing, the key factors
for attracting private-sector finance are awareness; transparent price signals;
standardized, consistent and clear rules; and incentives. These features enable
the development of trust, efficiency and access, and lower the transaction costs
of funding a range of profitable alternatives for investment.
Public-oriented agencies also participate in the carbon market. For
example, the World Bank manages over US$2 billion across 12 funds and facilities.
It sources its funds from 16 governments and 66 private companies. Its two new
market-based or carbon facilities are the Forest Carbon Partnership Facility
(FCPF) and the Carbon Partnership Facility (CPF). While the FCPF focuses on
deforestation, the CPF focus on energy and waste management. FCPF seeks to
prevent deforestation by building capacity in, and compensating, developing
countries for reducing emissions from deforestation and forest degradation. CPF
activities include promoting energy efficiency, gas flaring, transport and urban
development. In the carbon market schemes, the European Union’s Emission
Trading scheme (ETS) accounts for over US$60 billion which is approximately 70%
of the global carbon market value.
7.5 Social, development and gender issues and the state of play
in climate change financing
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There are many developmental, gender and social challenges
around the various climate change funds and sub-funds, the instruments, and
delivery mechanisms of the global climate change financing architecture. The
climate change financing governance structure seeks to promote an enabling
environment for preventing the worst-case scenario of rapid and irreversible
deterioration in the earth’s ecological and environmental balances. There are
serious concerns about how the actions, projects and policies that are being
engendered will impact long-term issues of poverty eradication, and social and
gender equity. Will these issues complement each other, or are they competing
and potentially clashing agendas?
From a development, social and gender perspective, there are at least
five broad priority areas of concern in this regard.
First, there are concerns about the fragmentary nature of the climate
change financing system. Increasingly, there is recognition of the need for greater
coordination mechanisms that both simplify and standardize funds, policies and
procedures. Greater coherence and simplification of processes will enable poor
developing countries to participate more effectively in the system on their own
Module 7