Name of Fund

The International Climate Initiative (ICI)

Previously known as the International Climate Protection Initiative.

Official Fund Website

www.bmu-klimaschutzinitiative.de

Date Created

Date fund proposed:  December 2007

Date fund made operational: 2008

Proposed Life of Fund

Initially 2008-2011. However the ICI has been extended beyond 2011 and continues to receive funding of EUR€120 million per year.

Administrating Organisation

The German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).

Objectives

The ICI finances and supports climate change mitigation, adaptation and biodiversity projects with climate relevance to help trigger private investments of a greater magnitude. 

The ICI aims to:

1.   Promote a climate-friendly economy by supporting partner countries in establishing a climate-friendly economic structure that prevents climate-damaging greenhouse gas emissions;

2.     Promote measures for climate change adaptation by supporting appropriate national programmes in selected partner countries that are especially vulnerable to climate change; and

3.     Promote and finance measures for preservation and sustainable use of carbon reservoirs/Reducing Emissions from Deforestation and Degradation (REDD).

Activities Supported

Activities supported by the ICI include:

• Building a climate-friendly economy
  
  • This includes measures to reduce emissions, including energy efficiency and renewable energies projects.
    
    
• Adaption to climate change
  
  • This includes developing and implementing national adaptation strategies in partner countries.
    
    
• Conservation and sustainable use of natural carbon reservoirs/REDD+ (Reducing Emissions from Deforestation and Forest Degradation)

Conditions & Eligibility Requirements

Projects must be relevant to one or several of ICI’s key focus areas.  Projects should be innovative in character (technologically, economically, methodologically, institutionally), integrated into national strategies, and contribute to national economic and social development.  The effects of a project must also be sustainable.

Other criteria for project evaluation and selection include:

• Duplicability of results, prominence and multiplier effect;
• Transferability of projects to the level of international climate cooperation;
• Significance of the partner country in cooperating with Germany, or in the context of international negotiations;
• Solidity and quality of concept, presentation, expected project management and monitoring; and
• Availability of self-financing, third party financing, and financial leverage effect.
  

The ICI prioritises certain countries/regions according to its focus areas:

• Climate-friendly economy;
  
  • small and medium-sized newly industrialising countries with a high greenhouse gas reduction potential
  • consulting and capacity-building projects are preferred for the largest newly industrialising countries

• Adaptation
  
  • countries/regions that are particularly vulnerable to climate change

• Carbon sinks/REDD+
  
  • countries and regions that are particularly relevant/suitable to carbon storage and biodiversity;

• Biodiversity
  
  • countries and regions particularly rich in biodiversity and/or an important role in the international CBD processes.
    

Accessing the Fund

1.   Informative project outlines in German or English are prepared and submitted electronically to the Programme Office.  Project proposals can be submitted by German development cooperation implementing organisations, non-governmental or governmental organisations, universities and research institutes, private-sector companies, multilateral development banks, and organisations and programmes of the United Nations;

2.   Following evaluation by the BMU, promising project outlines are pre-selected in line with available budgetary resources; 

3.   Applicants are informed in writing of the result of the evaluation.  Where project outlines are promising, applicants are requested to submit formal applications with detailed project plans and financing strategies; and

4.   BMU makes a final decision on the application.

Decision Making Structure

All funding decisions on projects are made by the BMU.

The ICI works closely with GIZ and KfW, two organisations contracted by the German government to perform development cooperation tasks.  Administration of the ICI is carried out by a programme office located at GIZ, and supported by additional personnel capacity from KfW.

An international advisory group, of up to 30 members, offers strategic support to the practical work undertaken by the ICI.  The international advisory panel is made up of experts from governments, academia, non-governmental organisations, companies, financial markets and international financial institutions. Meeting once every year, the Group advises the ICI on the identification of project types, activity areas and ways to harness potential for cooperation and synergy. In addition, the panel debates the future direction of the ICI and discusses best practice.

Non-Government Stakeholder Participation

No consultations with civil society took place prior to the establishment of this initiative.  However, the international advisory group within ICI’s governance structure includes representatives from academia, non-governmental organisations, companies, financial markets and international financial institutions.

In June 2011, the ICI organized a “Developing Knowledge on the Building Blocks of a Global Mitigation Architecture” workshop bringing together approximately 50 practitioners and experts who evaluated a selection of ICI-projects, and presented their perspectives and experience to a wide audience, specifically to the Bonn negotiation process.

In September 2011, a second workshop ‘Maximising the Co-benefits of REDD+ Actions’, took place in the Philippines.  The forum included ICI project experts from nine South-East Asian countries and the Pacific Islands; as well as representatives from the private sector and civil society.

Information Disclosure

Germany, and by extension the ICI, reports regularly to the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC).

This ICI website also publishes details of projects which have already received funding, as well as information on the on-going development of the initiative.  Projects data is collected from the ICI Projects Page.

Issues Raised

Civil society has largely been in favour of the ICI.  This broad level of public support is reflected in the parliamentary vote for the initiative where it received the support of two (out of the three) opposition parties.

Inclusion as Official Development Assistance?

Yes.

Funding is classified as ODA, with some exceptions for project funding in non-ODA eligible countries, such as Russia.

Financial Instrument/ Delivery Mechanism Used (e.g. grant, loan)

The ICI uses a variety of approaches including grants, concessional loans and where appropriate, project-based contributions to international funds.

Nature of Recipient Country Involvement

ICI adaptation activities build on National Adaptation Programs of Action and other relevant national or regional studies and strategies.