Definition and importance of climate finance
Although climate finance has no established definition, it can be described as the provision of financial resources to developing countries; these resources are used to finance the sustainable development projects of the beneficiary countries.
According to the State of Play Report on the Accessibility and Use of Climate Change Financing in the IOC Area and Zanzibar, 2012, “estimates of the extent of global climate finance needs vary by category of climate actions (adaptation, mitigation or reduction of emissions from deforestation and forest degradation – REDD) and by the method, but will certainly represent hundreds – or even millions – of billions of US dollars per year from 2030. The 5th report of the Intergovernmental Panel on Climate Change (IPCC AR5) underlines that without ambitious and immediate actions to control global warming below 2°C and to reinforce the strategies adaptation, costs will increase massively in the future. ”
Climate finance in the Indian Ocean
South-west Indian Ocean countries benefit from climate finance through internal and external sources.
Internal sources come from the national budget. In the countries of the zone, with the exception of Reunion, the percentages of national budgets allocated to the fight against climate change remain limited. Indeed, they constitute on average 4.84% of the national budgets of the countries, with the following distribution:
COUNTRY % OF NATIONAL BUDGET FOR ENVIRONMENTAL ISSUES
In addition to the tax and incentive framework specific to each country in the zone, another source of internal climate finance is the national funds dedicated to the fight against climate change.
COUNTRIES NATIONAL FUNDS
Comoros Environnemental fund
Madagascar Foundation Tany Meva
The Foundation of Protected Areas and the Environment of Madagascar
Various regional funds
Mauritius Mauritius Sustainable Island Fund
Food Security Fund
Seychelles Environmental Fund
Development Fund for Praslin and La Digue
Various foundations on the islands of the archipelago
The main external sources of the countries of the region are the financing funds dedicated to climate change, the clean development mechanism (CDM), the docking station of the PIPS with which Mauritius and Seychelles signed a memorandum of understanding in 2009 , and non-governmental organizations.
Regional projects are another important external source of climate finance. The South West Indian Ocean area hosts major projects from numerous donor agencies such as AFD, UNDP, the European Union, FFEM, the World Bank, the African Development Bank and is preparing to collaborate with the Green Climate Fund (GCF) by 2018.