Abstract
The role and impacts of climate finance on peace and security in conflict-affected and fragile contexts—many of which are also vulnerable to climate change rank among the lowest recipients of climate finance—is an area still little investigated by either the climate finance, climate security or environmental peacebuilding fields. A recent UNDP report (2021) with the Climate Security Mechanism and the Nataij Group argues for the need to better understand peace co-benefits. This chapter attempts to fill this void, highlighting that greater attention is needed to the allocation, access and thus distribution, quality and quantity of finance, and therein, the design of climate finance mechanisms and their inherent impacts on equity in conflict-affected and fragile contexts. This chapter examines, synthetically, but non-exhaustively, the literature and underlying arguments from the emerging fields of climate finance, climate security and environmental peacebuilding and the application of a co-benefits approach to strengthen policy coherence, before considering learnings from nascent practice, including the efforts of the UN system. It identifies gaps for further investigation and key guiding principles on the measurement of peace and security co-benefits or dividends of climate finance and draws conclusions from a new meta-analysis by UNDP (2021) and advocates for a transdisciplinary approach (Lawrence et al., One Earth 5:44–61, 2022; Rigolot, Humanities and Social Sciences Communications 7:1–5, 2020). As one of the first attempts to systematically consider climate finance in climate vulnerable conflict-affected and fragile contexts, it argues that better metrics accounting for peace co-benefits or dividends, reinventing Theories of Change, and establishing intersectoral Communities of Practices and special vehicles/calls for proposals could strengthen access and outcomes.
The metadata analysis presented in this chapter was made possible through the generous support of UNDP and the Climate Security Mechanism, the full details of which were first published in 2021 study, “Climate Finance for Sustaining Peace – Making Climate Finance Work Better for Conflict-Affected and Fragile Contexts.”
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Notes
- 1.
For more information see the UNFCCC’s Standing Committee on Finance (SCF). https://unfccc.int/SCF.
- 2.
Developed country Parties to the UNFCCC provide finance to support developing country Parties, under the principle of “common but differentiated responsibility and respective capacities” and a financial mechanism was established to provide these resources. The GEF and the GCF serve as its operating entities of the financial mechanism and the Standing Committee on Finance established to provide guidance to the operating entities. For more information see: https://unfccc.int/topics/climate-finance/the-big-picture/introduction-to-climate-finance.
- 3.
Carty, T., Kowalzig, J. & Zagema, B. (2020). ‘Climate Finance Shadow Report 2020: Assessing Progress towards the $100 Billion Commitment’, Oxfam GB, p. 32. https://doi.org/10.21201/2020.6621.
- 4.
Bos. J. & Thwaites, J. (2021). A Breakdown of Developed Countries’ Public Climate Finance Contributions towards the $100 Billion Goal. https://files.wri.org/d8/s3fs-public/2021-10/breakdown-developed-countries-public-climate-finance-contributions-towards-100-billion.pdf?VersionId=0luvOD5zVLLxxfRpWad_DyFC3Qh4sjd0.
- 5.
Alcayna, T. (2020). At What Cost: How Chronic Gaps in Adaptation Finance Expose the World’s Poorest People to Climate Chaos. Zurich Flood Resilience Alliance, p. 52. https://www.concernusa.org/wp-content/uploads/2020/07/AT-WHAT-COST.pdf.
- 6.
Green Climate Fund (2020). Tipping or turning point: Scaling up climate finance in the era of COVID-19. Text. Republic of Korea: Green Climate Fund, p. 44. https://www.greenclimate.fund/document/tipping-or-turning-point-scaling-climate-finance-era-covid-19.
- 7.
- 8.
See Boutros-Ghali, B. (1992) An agenda for peace: Preventive diplomacy, peacemaking and peacekeeping. International Relations 11(3): 201–218. https://www.un.org/ruleoflaw/files/A_47_277.pdf; Conca, K. & Dabelko, G.D. (2002). Environmental Peacemaking. Washington, DC: Woodrow Wilson Center Press; and Krampe, F., Hegazi, F. & VanDeveer, S.D. (2021). Sustaining peace through better resource governance: Three potential mechanisms for environmental peacebuilding. World Development 144 (2021) 105508. https://doi.org/10.1016/j.worlddev.2021.105508.
- 9.
S/PRST/2011/15. https://undocs.org/en/S/PRST/2011/15.
- 10.
The “vertical funds” are development financing mechanisms which allocate resources, derived from different funding sources, to single specific issues or themes. For climate change, there are four main funds: the Adaptation Fund, the Climate Investment Funds (CIFs), the Global Environment Facility (GEF) and the Green Climate Fund (GCF). For more information see: UNFCCC: Introduction to Climate Finance: https://unfccc.int/topics/climate-finance/the-big-picture/introduction-to-climate-finance.
- 11.
The 2020 OECD fragility framework includes 57 countries and territories. Fragility is characterized as a combination of exposure to risk and insufficient coping capacity of the state, systems and/or communities to manage, absorb or mitigate those risks. In the framework, five different dimensions: economic, environmental, political, security and societal, are each represented by 8–12 indicators. For more information, see: OECD (2020).
- 12.
The UN Secretary-General’s Independent Expert Group report on climate finance (2020) highlights that 54% of low-income countries already suffer from, or are at risk of debt distress and that increasing levels are also observed in climate vulnerable middle-income countries. For more details, see Averchenkova et al. (2020).
- 13.
WRI’s study of 17 developing countries shows decreases in climate budget and delays in implementation. See: Caldwell, M. and Alayza, N. (2021). What COVID-19 tells us about making climate finance resilient to future. Crises. WRI Insights, 28 October 2021. https://www.wri.org/insights/making-climate-finance-resilient-future-crises. Also see Mercy Corps (2020). Submission to the UNFCCC Standing Committee on Finance on behalf of Mercy Corps—Call for evidence: Information and data for the preparation of the 2020 biennial assessment and overview of climate finance flows. https://unfccc.int/sites/default/files/resource/SCF%20Submission%20Fragile%20States_Mercy%20Corps.pdf.
- 14.
Johns, T. (2015). The impacts of international REDD+ finance DRC case study. http://www.climateandlandusealliance.org/wp-content/uploads/2015/08/Impacts_of_International_REDD_Finance_Case_Study_DRC.pdf.
- 15.
The World Bank’s Global Electrification Database from “Tracking SDG 7: The Energy Progress Report” is jointly led by the custodian agencies: the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank and the World Health Organization (WHO). For further details please see: https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS.
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Sincere thanks are also offered to Dima Reda, Joe Thwaites and Yue Cao for their review and the thoughtful comments kindly provided on the draft text.
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Wong, C. (2022). Climate Finance and the Peace Dividend, Articulating the Co-benefits Argument. In: Cash, C., Swatuk, L.A. (eds) The Political Economy of Climate Finance: Lessons from International Development. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-12619-2_9
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eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)