Climate finance in Arab region
Role of climate finance
In terms of tackling climate change, a dual challenge for governments and development partners is present. This challenge consists in the mobilization of sufficient resources to minimize climate change impacts -especially for the most vulnerable social groups and zones- as well as mainstreaming climate change in the reform agenda under way and modernizing the provision of infrastructure services. For the poorest countries, the challenge is to balance short-term development priorities with actions that aim to reduce vulnerability to climate change in the longer term. This is where climate finance intervenes to find this balance and support ARAB countries to combine development priorities with those of climate change.
Focus on Arab region
There are 14 multilateral funds active in Arab region and one bilateral fund, The Clean Technology Fund (CTF) comes first, with the largest contributions estimated to a total approved of USD 733 million for six projects in Morocco and Egypt. Global Environment Facility (GEF4) comes after with much smaller contributions that are estimated to USD 51 million dedicated for 14 projects in the region.
The funding dedicated to Arab region has been and still mostly concentrated on mitigation projects. On a total climate finance approved of USD 1,037.38 million, more than 82% of the funding in the region has been allocated to mitigation projects.
Most of these funding are intended to support large-scale wind and Concentrated Solar Power (CSP) projects, and to a lesser extent projects focused on energy efficiency, sustainable transport and small-scale solar technology. In terms of funding distribution, it is mainly concentrated on two countries:
- Morocco with a total approved amounts of USD 649 million; and
- Egypt with total approved amounts of USD 197 million.
Over the same period (2003-2015), LDCs countries in Arab region, namely Djibouti and Yemen, have also received funding, which has been almost dedicated for adaptation projects. This funding has been around USD 35 million for Djibouti and USD 52.5 million for Yemen. Projects in this theme are mainly focused on water and agriculture sector, as those sectors are a clear adaptation priority for countries in this water-scarce region.