Focusing on adaptation in climate financing
The role of adaptation and private sector involvement were the topics in a Nordic Climate Facility –seminar arranged in Helsinki on 13 April 2015
The bulk of climate finance is still targeted at mitigation whereas more focus on adaptation is called upon especially by the developing countries. The needs for climate finance are increasing and the public funding is not enough. The private sector is needed to fill the gap. This was highlighted by Managing Director Pasi Hellman, NDF, in his opening remarks of the seminar. He stressed the undisputable track-record of NCF facilitating private sector funding into climate change projects. The synergies between mitigation and adaptation in numerous NCF projects were noted by Manager Kari Hämekoski, NEFCO.
Senior Officer and Coordinator Outi Leskelä, introduced a soon to be published study financed by NOAK Nordic Climate Finance Opportunities – The NCF case study. The study and its outcomes were presented in more detail by Director Kristian Brüning of Climate Wedge, co-author of the study. Mr. Brüning noted that there are huge efforts in building export networks, and national clean-tech brands but there is very little structured overlap into development and climate financing. “This is an underutilized opportunity” Mr. Brüning stated as these activities could be naturally fit to climate finance.
An NCF case project from Cambodia was presented by Senior Consultant Steffen Johnsen, NORDECO, Denmark. A tree planting project is an example of a project type with clear adaptation and development impacts in addition to carbon sequestration benefits.
Senior Climate Change Specialist Mikko Ollikainen from the Adaptation Fund presented the Fund’s activities. Since 2010 the Fund has approved USD 312 million for 47 adaptation projects in vulnerable developing countries. Mr. Ollikainen discussed the new climate finance architecture and challenges related to adaptation financing, and also the expected role of the Green Climate Fund.
Seminar was organised by NDF, NEFCO and NOAK (Nordic Working Group for Climate Negotiations under the Nordic Council of Ministers). The event gathered around 50 participants from Nordic financing institutions, academia, project developers and NGOs.