Tenth meeting of the EAP Task Force

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• Tenth meeting of the EAP Task Forces
• EECCA Environmental Finance Network
• Environmental Financing Trends in South Eastern
  Europe

Joanna Fiedler Senior project manager Environment
al financing
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Outline

• Introduction to the report, status of work
• SEE region context
• Key messages
• Domestic environmental expenditures
• International flows to environment
• Financial mechanisms in use.

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Introduction to the report

• Category II document for Belgrade Ministerial
  conference.
• Follow up to the Environmental financing trends
  report for Kiev conference http//www.rec.org/REC
  /Programs/SofiaInitiatives/Enviro.Finance.in.CEE.p
  df
• The main goal of the report is to propose
  recommendations for decisions-makers in the
  region so that they could take action and ensure
  more environmental funding schemes and resources
  for environmental actions.

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• Major economic and environmental trends which
  were influencing the situation on environmental
  financing in the SEE between 2001 and 2005
• Presenting trends in domestic environmental
  expenditures in the SEE
• Analyzing international financing flows to the
  region including bilateral and multilateral
  sources
• Analyzing established and emerging financing
  mechanisms in the region and their development
  potential in the future
• Identifying new possible financing mechanisms
  which could be developed in the future
• Providing recommendations to decision makers on
  improving effectiveness of environmental
  financing from both domestic and external
  financing sources.

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Trends in bilateral donors commitments
Source OECD DAC data base
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Recipients of assistance
Source OECD DAC data base
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Preliminary trends in assistance
Source OECD DAC data base
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Importance of different sources of finance for
infrastructure projects over the time
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Key messages

• Environment low on political agenda on central
  and local levels
• Decentralisation process not supported by
  allocation of fiscal means
• Low level of domestic financial resources for
  environment
• EU role is increasing, bilateral donors role
  decreasing, IFIs struggling (borrowing
  legislation)
• Important role of economic instruments

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Key messages

• Potential for innovative financial mechanisms
  (private sector, carbon finance etc)
• Presenting environmental projects as contributors
  to growth and employment
• Creating favorable conditions for borrowing,
• Important role of capacity building and technical
  assistance
• Assistance needed on project preparation
• Need for diversification of sources of finance

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• Thank you for your attention
• Joanna Fiedler
• Senior project manager
• Environmental financing and economic instruments
• Environmental Policy Programme
• Regional Environmental Center for
• Central and Eastern Europe
• jfiedler_at_rec.org