Green Finance and Investment Financing Climate Action in Eastern Europe, the Caucasus and Central Asia

This report aims to shed light on how Eecca countries and development co-operation partners are working together to finance climate actions, using the Oecd Dac database to examine finance flows by provider, sector, financial instrument, channel, etc. A significant amount was committed by international public sources to the 11 countries comprising the Eecca in 2013 and 2014 (i.e. Usd 3.3 billion per year), but the scale of such finance varies considerably from country to country and is insufficient to achieve and strengthen their climate targets communicated through the Intended Nationally Determined Contributions Cop21. In addition, while a range of climate-related policies have already been developed by the Eecca countries, the extent to which such policies are being effectively implemented and conducive to attracting climate finance is still unclear. In this respect, this report proposes a set of questions for the Eecca countries to self-assess their readiness to seize opportunities to access scaled-up climate finance from various sources: public, private, international and domestic. Foreword 5 Table of contents 7 Reader’s guide 11 Data sources 11 Cut-off date 11 Abbreviations and acronyms 13 Executive summary 15 Chapter 1. Scaling-up finance to support climate actions in EECCA countries 19 Background 20 Intended nationally determined contributions (INDCs) of the EECCA countries 21 Aims and structure of the report 23 Policy recommendations 24 Note 28 References 28 Chapter 2. Landscape of climate-related development finance at regional level 31 Background and analytical methodologies 32 Climate-related development finance flows to EECCA and other developing countries 33 Comparison between the EECCA and other regions 34 Comparison across EECCA countries 35 GDP per capita and climate-related development finance 36 Sectoral-level analysis of climate-related development finance 38 Mainstreaming of environment and climate into development finance 40 Delivery channels 40 Financial instruments 44 References 46 Chapter 3. Assessing readiness to access climate finance 49 Background 50 Key elements for climate finance readiness 52 Examples of readiness programmes in Tajikistan and Georgia 54 Key questions for understanding climate finance readiness 56 Chapter 4. Country profiles 77 Analytical framework 78 Armenia 79 Azerbaijan 81 Belarus 83 Georgia 85 Kazakhstan 87 Kyrgyzstan 89 Moldova 91 Tajikistan 93 Turkmenistan 95 Ukraine 97 Uzbekistan 99 Notes 101 References 101 Annotation This report aims to shed light on how EECCA countries and development co-operation partners are working together to finance climate mitigation and adaptation actions, using the OECD DAC database to examine climate-related development finance flows by prov