SUMMARY

2016 is a pivotal year to turn the SDGs and the Paris Agreement reached at COP21 into effective action towards low- carbon, climate-resilient development. The continued and scaled-up mobilization of non-State actors, including financial institutions, is of the essence.

In this context, right before and in line with COP22 in Marrakech, the International Development Finance Club (IDFC), the largest network of international, regional and national development banks, organizes a new edition of its Climate Finance Forum, on November 5 in Casablanca, in an invitation to explore and contribute to the Factory of Climate Solutions.

Following its first edition in March 2015 in Paris, the event will re-gather and expand the coalition of high level representatives of public and private financial institutions from both developing and developed countries as well as other stakeholders that are deploying new efforts and initiatives in the area of climate finance. It will be hosted by Caisse de Dépôt et de Gestion Capital (CDG Capital) of Morocco, with the support of Agence Française de Développement (AFD) and other partners.

The IDFC Climate Finance Forum will investigate the multiple processes, tools, approaches, methodologies and institutional set-ups that make it possible to concretely design, finance and implement climate-smart action in developing countries at the required scale. How to measure what really counts? How to effectively transform business models? How to accelerate climate smart transactions?

The IDFC Climate Finance Forum will aim at delivering concrete outcomes and a road map on next steps, highlighting the continuous positive momentum of a coalition of financial actors who aim at “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development”, as indicated in the Paris Agreement.

In doing so, the event will showcase valuable experiences and lessons, strengthen dialogue, collaboration and coordination, and share the latest thinking and analysis related to climate change finance and the implementation of the NDCs in developing countries. The outcomes of the Forum will also be relevant for and serve as inputs to the implementation of the Sustainable Development Goals (SDG) and the 2030 Agenda.

For the first time, the IDFC Climate Finance Forum will be organized in synergy and back to back with the 2016 edition of the Climate Finance Day - Financing The Climate Agenda: From Decision To Action, organized at the same venue on November 4 by Casablanca Finance City Authority, Paris Europlace and other partners.

The Climate Finance Day Casablanca 2016 will set up and discuss the latest developments regarding the global context of climate finance and related regulatory issues. The event will analyze the need to scale up green investments across the planet, and illustrate the many ways to mobilize private climate investment. Sessions will then present existing, concrete, low carbon and climate resilient solutions in the land use and energy transition areas.

The Climate Finance Day and the Climate Finance Forum aim to provide the financial sector, the international community, climate negotiators and a wide public, with a major two-day sequence of climate finance talks, coordinated by financial practitioners. This rapprochement between both events also illustrates the strategic importance of combining public and private finance and of promoting all stakeholders throughout the financial community, from developed and developing countries, towards increased climate action.

CONTEXT

The International Development Finance Club, IDFC, formed in 2011, is a network of 23 leading national, regional and international development banks from across the planet that share a similar vision of promoting of low-carbon and climate resilient futures, while continuously pursuing poverty reduction, economic and social development and a fair and equitable design of the globalized economy.

The members of IDFC play a key role in bridging critical funding gaps of sustainable development projects and programs, in catalyzing investment in new economic, social and environmental sectors, and in co-developing with governments, the private sector and civil society enabling regulatory and policy environments, including by building technical competencies and strengthening institutions. In particular, IDFC members have a successful and measurable track record of integrating climate change issues and related risks into their development mandates. IDFC members commit close to USD 100 billion in support of green and climate projects, programs and activities around the world. More information is available at http://www.idfc.org/

In this context, IDFC members intend to further support and encourage the required integration of climate concerns within the financial community and markets at the national, international, and regional levels.

The political momentum raised by the UN Climate Summit in September 2014, COP20 in Lima in December 2014, and the subsequent climate agreement in Paris in 2015, galvanizes transformative action in all countries to reduce emissions and build resilience to the adverse impacts of climate change. Over the past two years, significant announcements were made by both the public and the private sector, from developed and developing countries and regions, regarding the financing and promotion of low carbon and climate resilient development pathways.

IDFC and several of its members, along with other partners including the MDBs, CDC or Paris Europlace, have contributed to this positive momentum by participating in and/or organizing multiple international events about the need to reinforce and scale up public and private climate finance action. Such events include among others:

These international and practitioner-oriented events have played a key role in strengthening climate finance and enabling solid and concrete progress, such as the harmonization of climate finance tracking methodologies and the launching of Principles for Mainstreaming Climate Action Within Financial Institutions.

OBJECTIVES

Building on these achievements and on the positive momentum generated by a wide range of climate financers coming from all areas of the financial system, this year’s Climate Finance Forum will focus on implementation issues and the “how tos” and practicalities of financing low carbon and climate resilient pathways, in particular in developing countries. As such, participants will be invited to take part and provide inputs to the Factory of Climate Solutions.

At the international financial community level, the event will capitalize and disseminate concrete tools, methodologies and approaches required to implement the COP21 Paris Agreement and raise ambition, as the signals sent by financial institutions can be decisive for all other economic actors.

The Forum will also discuss the importance of local and regional financial actors operating in developing countries including in Africa to promote, channel and intermediate domestic and international climate finance and implement climate action.

CDG Capital, in collaboration with AFD, will host the event on behalf of IDFC, in close coordination with other partners, including several multilateral development banks and other development finance institutions as well as leading think tanks. The Climate Finance Forum will convene high level representatives of a coalition of willing financial institutions, including multilateral development and other international financial institutions, development banks, commercial banks, institutional investors, pension funds, insurers, etc.. It will also convene relevant government and regulatory bodies, private sector and civil society representatives from developing and developed countries.

As a practitioners’ event, the Forum is designed to encourage dialogue and sharing of lessons among peers.

More specifically, and following the Climate Finance Day of November 4 that will provide an overview of climate finance and highlight existing best practices in different areas like land use/agriculture and energy, the Forum will discuss key ingredients of these success stories as well as issues that still need to be addressed in order to have a fully functional and efficient Factory of Climate Solutions. These relate to :

  1. 1 .WHAT is happening and how to assess it : methodologies and tools to assess and track climate finance flows and related impacts, with a specific focus on adaptation issues;
  2. 2 .HOW climate change considerations are being mainstreamed within financial institutions and how such institutions can contribute to turn NDCs into policies, plans and bankable investments;
  3. 3 .Enabling concrete ACTION through the facilitation and acceleration of (i) the design of climate policies, investment plans, programs and projects, and (ii) access to existing climate public and private financial resources nationally and internationally.

Practical information