First Innovate4Climate outlines roadmap for global climate finance

How should policymakers, businesses and finance institutes collaborate with one another to meet the Paris Agreement’s goals in respect of climate financing, carbon markets and the associated cooperative approaches? What do businesses and finance institutes need to be able to become engaged in the way the Agreement requires? And what kinds of support do developing countries and emerging economies need?

These questions together with new developments in the carbon market and climate finance sectors were the focus of a new conference held in Barcelona from 22 to 25 May. More than 100 high-level podium discussions, side events, workshops and specialist fairs shaped the outstanding programme. The I4C is organised by the World Bank and the International Emissions Trading Association (IETA). Carsten Warnecke from NewClimate Institute said: “Innovate4Climate is a meeting point where we can develop new ideas and approaches to solve the greatest challenges of the 21st Century.”

Against the backdrop of Germany’s G20 presidency and the upcoming Climate Change Conference (COP 23) in Bonn, Innovate4Climate provides an important forum for the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), the Federal Ministry for Economic Cooperation and Development (BMZ) and the German Emissions Trading Authority (DEHSt) to showcase German activities in the climate finance and carbon market sectors, and to enter in dialogue with experts from around the world.

In addition to the various side events and presentations given at the German Pavilion, the experts from Germany faced the specialist public to take questions and give answers at the Pitch Hub and also in the Digital Media Zone.

Side Events: Promoting cooperation with the private sectors in Asia and Africa

The three side events held by the three main German exhibitors were key components of Innovate4Climate. All three took up current issues from Germany’s international cooperation with developing countries in Africa, Asia and Latin America.

How can project-based emission reductions be continued under Article 6 of the Paris Agreement? How can stranded CDM projects be supported in a targeted and meaningful way between now and 2020? What does the future hold for those projects? In a workshop hosted by the German Emissions Trading Authority (DEHSt) on Monday, representatives from the Green Climate Fund (GCF), the African Development Bank (AfDB), IETA and the Gold Standard Foundation discussed new approaches and solutions.

At a side event hosted by the BMZ on Scaling up Renewables Instruments for Mobilizing Private Climate Finance in Developing Countries, focus was placed on finding efficient and effective climate finance instruments to attract private sector investment in developing countries and emerging economies. The role of the Green Climate Fund (GCF) and the respective development banks was also the focus of a lively discussion led by Jochen Harnisch, Head of the KfW Development Bank’s Environment and Climate Competence Centre, with representatives from the Frankfurt School of Finance and the Business School for Sustainable Development Zimbabwe, and a large crowd of interested conference participants.  

A side event hosted by the BMU provided the stage for the international debut of the Nitric Acid Climate Action Group (NACAG). Enrico Rubertus, Head of the NACAG Secretariat, presented the new nitric acid abatement initiative. Together with Silke Karcher (BMU) and Stephanie Rogers (Work Bank Group), he outlined the challenges and opportunities involved, and discussed with representatives from developing countries how the support offered by NACAG can be adapted to meet their specific needs.

High visitor numbers: Dialogue and new offerings at the German Pavilion

With 13 exhibitors and over 20 specialist talks, the German Pavilion was a particularly popular venue at the Innovate4Climate fair. “In the run up to the Climate Change Conference in November, it’s important that we showcase German projects, initiatives and businesses in the carbon market and climate finance sectors,” said Rainer van Loon from Energieagentur.NRW. For regional actors in particular this is especially important in terms of the new market mechanisms whose design can serve as models for replication elsewhere. 

Despite the tightly-scheduled conference programme, the German exhibitors were pleased with the number of visitors who attended the presentations and talks held at the German Pavilion. This was due not least to the practice-oriented dialogue formats and new offerings presented by the exhibitors. In looking at the questions of how the Clean Development Mechanism and the Green Climate Fund can be linked in a meaningful way, a study conducted jointly by area, Climate Focus and Perspectives provided insights from the everyday experience of practitioners and decision-makers. The findings of the study were discussed with more than 100 experts in a multimedia panel talk.

Norbert Gorißen from the International Climate Initiative (IKI) gave an overview of Germany’s current climate finance efforts and reviewed the visible successes achieved by the NAMA Facility.

Stephan Wolters from the Berlin-based think tank aldephi presented a recently published study which assesses the characteristics of and prerequisites for initiatives in countries that have generated emissions certificates from domestic offset projects. Before an audience of more than 30 visitors at the German Pavilion, he discussed the study’s recommendations to improve conditions to enable the development of a domestic offset market.

William Acworth also presented a new study conducted by the International Carbon Action Partnership (ICAP) which looks as the compatibility of emissions trading and long-term carbon pricing.

In addition, representatives from Climate Focus, the DEHSt, GIZ in Uganda, India and Chile, the International Climate Initiative (IKI), NACAG, Gold Standard, NewClimate Institute, Perspectives, verico SCE and the Wuppertal Institute answered questions from visitors in the lounge area. The lively talks, which were attended by African representatives, highlighted the great interest – following the policy decisions adopted in Paris and Marrakech – in moving forward on practical implementation of ambitious climate change mitigation activities policy decisions.

Exhibitors optimistic about I4C 2018

On the whole, exhibitors were positive about the outcome of the new conference. “Innovate4Climate enables us to meet important cooperation partners and customers from around the world with a minimum of effort. And it enables us to launch new ideas,” said Axel Michaelowa from Perspectives. His impression was confirmed by other exhibitors who both likened IC4 to a family gathering for the climate action sector and were unanimous in declaring the conference as a place to “meet the people you want to meet.” In many cases it made it easier for high-ranking experts with extremely tight schedules to get together and talk. Exhibitors did, however, mention several teething problems that will have to be addressed. Nonetheless, they let the event organizers know that would be attending next year’s IC4 and spoke out in favour of trying to attract even more participants from the finance sector to attend.  

The next Innovate4Climate fair will be held in Frankfurt am Main.