Climate change is a direct driver of disasters.
It significantly increases the likelihood of cyclones, drought, floods, and sea
level rises. Addressing climate change by, for example, reducing emissions is
critical to help mitigate disasters, making it less costly to manage those
disasters that arise. The grant will support the EAP Emissions Reduction
Program (ERP) contributing to increased mobilization of international capital
to create additional incentives for developing countries to reduce emissions
and to help finance associated climate and disaster risk reduction investments
through the generation of Emissions Reduction Credits (ERCs) and sale on the
global ERC markets.. The ERP will help developing countries i) understand and
engage with the global emissions reduction credit (ERC) markets; ii) generate
ERCs that satisfy the requirements of the global ERC markets and access those
markets to sell ERCs, and iii) mobilize debt against future ERC generation in
order to finance climate and disaster risk management investments that generate
ERCs.
This grant will help support the second pillar
of the ERP, by funding
·
the development of Country Guidelines to help
developing countries identify gaps in their regulatory and institutional
frameworks for generating ERCs, and reforms to address these gaps; and
·
test the Country and Project Guidelines in
Indonesia, Vietnam, and Fiji with the objective of potentially informing the
prioritization of investments that incorporate localized and regional disaster
and climate risks.