6 Financial support and technology transfer Financial support and transfer of technology to deve- 6.1 loping countries in the form of aid or development New and additional support assistance, is an important aspect of international progress in the climate´field. Swedish development Swedish development assistance is long term; much of assistance aims to create the conditions for sustainable it takes the form of programmes for individual count- development, which will alleviate poverty in developing ries. It is therefore difficult to draw a clear distinction countries and help to achieve peace, democracy and between new and ongoing support. A parliamentary sustainable use of natural resources. The Swedish decision was taken in the late 1980s to add a further parliament has laid down six main objectives for objective of development assistance (the environmen- development assistance. One of these is to contribute tal objective), and to allocate funds in the form of a to far-sighted conservation of natural resources and "Special Environmental Appropriation". These funds environmental protection. have been used to supplement other development Compared with other OECD countries, Sweden assistance and to carry out environmental projects of spends a high proportion of its gross national income strategic importance, such as methods development (GNI) on development assistance. Sweden is also in and trial and pilot projects. The appropriation is the "Top 10" in absolute terms. Between 1997 and primarily used for bilateral assistance, but also for 2000, Sweden devoted just over 0.7 per cent of GNI multilateral support to achieve the objectives laid to development assistance each year. About two-thirds down at the United Nations Conference on Environ- of Swedish bilateral development assistance is chan- ment and Development (UNCED). nelled via Sida, the Swedish International Develop- Most new and additional Swedish support is ment Cooperation Agency. Table 6.1 shows the Swe- provided via the Global Environment Facility (GEF). dish budget for development assistance administered by Sida and other bodies, including the Cabinet Offi- ce. Swedish aid will increase over the next few years, 1 Exchange rates: in relative as well as absolute terms. The aim is that 1997: USD 1 = SEK 7.6346 1998: USD 1 = SEK 7.9471 aid in 2003 should represent 0.81 per cent of GNI, 1999: USD 1 = SEK 8.2623 which is forecast to be approximately SEK 13 billion. 2000: USD 1 = SEK 9.1606 Table 6.1 Sweden's government-funded development assistance, in total and as a percentage of GNI, also the "Special Environmental Appropriation" Total Total Total Forecast 1997 1998 1999 2000 Total development 13,212 12,518 13,495 12,487 assistance (SEK millions1) Development assistance 0.79% 0.72% 0.70% 0.72% as a percentage of GDP Special Environmental 174 205 160 210 Appropriation (SEK millions) Source: Sida Table 6.2 Swedish financial contributions to the Global Environment Facility (GEF) Financial contributions (SEK millions) 1998 1999 2000 2001 Global Environment Facility 448 (commitment): Source: Sida 165 6.2 Support for developing Contributions are given in the form of regular pay- ments and as support for specific projects or program- countries particularly mes. Funding supplied to multilateral institutions sensitive to climate change totalled SEK 13.184 billion between 1997 and 1999. Sweden is making a total contribution of SEK 448 Swedish development assistance generally concentrates million to the GEF between 1998 and 2001. Funding on combating poverty. Most of Sida's "programme is also given to the UN Development Programme for countries" have a low or very low GDP per capita. general purposes, for specific projects and to support Many are among the least developed countries and, in its efforts to implement environmental management addition to poverty, are struggling under a heavy debt systems. Table 6.4 summarises multilateral develop- burden. This makes it even more difficult for them to ment assistance going via international institutions. finance measures to reduce emissions, increase removal Sweden is also working actively to fulfil the objectives of greenhouse gases and take steps to adjust to climate set at the Rio conference on environment and deve- change. lopment (UNCED) in 1992, and is also Table 6.3 shows Swedish support given to least de- working on standardisation issues with a number of veloped countries (USD millions) and as a percentage international organisations and fora in the field of of all development assistance and of GNI in 1998 and multilateral development assistance. 1999. Swedish development assistance is fairly sizeable Sweden also makes contributions via Sida to the in comparison with other countries belonging to the International Union for the Conservation of Nature OECD Development Assistance Committee.2 (IUCN), the World Resources Institute (WRI) and the Sweden has long supported efforts to improve con- International Institute for Environment and Develop- ditions in drought-affected areas of southern Africa, ment (IIED). The main purpose of this funding has in the fields of sustainable agriculture and forestry been to enable these institutions to make an active and sustainable use of water resources. These projects contribution to inter-sectoral know-how development, mainly focus on the objectives of the "Deserts Con- and, secondly, to enable Sida to establish a greater vention" but also aim to assist adjustment to climate dialogue on these issues so that it will eventually change. Similar work is also being done in India. be possible to integrate this know-how in bilateral projects and programmes. Sweden is also funding a number of of international 6.3 Financial support research institutions in the agricultural and forestry sectors. These include the Consultative Group for 6.3.1 Multilateral support International Agricultural Research (CGIAR), the International organisations have increasingly contributed International Council for Research in Agroforestry to the creation of various systems and methods for (ICRAF) and the Center for International Forestry achieving sustainable development, particularly during Research (CIFOR). The areas bearing a relation to the and after the UN environment summit in Rio de climate issue are research and further education in the Janeiro in 1992 (UNCED). By using their own net- fields of of biodiversity, livestock production, land works and with the help of their partners, they also management, forest ecosystems and food crops. help to disseminate and improve knowledge of these methods. Approximately one third of Swedish development 2 OECD DAC: Organisation for Economic Co-operation and Development, assistance is channelled via multilateral organisations. Development Assistance Committee Table 6.3 Total financial support for least developed countries in total per year and as a percentage of GNI, according to DAC 1998 1999 % of % of % of % of Net payments USD millions donor’s total donor’s GNI USD millions donor’s total donor’s GNI Sweden 446 28 0.20 407 25 0.17 Total, DAC countries 10,770 21 0.05 10,650 19 0.05 including EU member states 6,607 24 0.08 5,420 20 0.06 Source: Sida 166 Table 6.4 Financial support supplied to multilateral institutions and programmes 7 Financial support (SEK millions) 1997 1998 1999 Multilateral institutions 1. World Bank 966 1,000 865 2. International Finance Corporation 0180 3. African Development Bank 00 0 3b African Development Fund 224 278 143 4. Asian Development Bank 115 180 188 5. European Bank for Reconstruction and Development 20 55 57 5b Via the European Union 707 707 741 5c European Development Fund 0600 6. Inter-American Development Bank 17 15 12 7. United Nations Development Programme 460 474 490 - specific programmes 261 235 262 8. United Nations Environment Programme 20 20 20 - specific programmes and funds 28 34 28 9. UNFCCC 0.8 1.0 1.0 - Supplementary Fund 0.2 0.2 0.3 - Trust fund for participation 0.2 0.6 0.5 10. Other (WFP, IFAD, UNCTAD, et al.) 1,427 1,496 1,556 Total, Multilateral institutions 4,245 4,574 4,365 Other multilateral research, technology and occupational training programmes (some examples): 1. Consultative Group for International Agricultural 42 43 66 Research (CGIAR)* 2. International Union for the Conservation of Nature 30 30 30 (IUCN)** 3. World Bank Environment Fund 10 2 4 4. World Resources Institute (WRI) 22 8 5. UNEP-CEP 20 2 6. Global International Water Assessment (GIWA) 00 3 * Non-tied support to the organisations; targeted support of SEK 5 – 15 million per year has also been paid. ** NB: SEK 15 million of 30 million for 1999 was not paid out until 2000 due to the cap on public spending. A total of SEK 45 million was paid out in 2000. Total (examples of support for multilateral 86 77 112 programmes, not exhaustive): Source: Sida 167 6.3.2 Bilateral development assistance 6.5 shows the proportion of environmentally-related Sida supports projects in almost 120 countries, in- projects in which Sida was involved between 1998 cluding those in central and eastern Europe. Most of and 2000. Environmentally-related projects have these resources go to the twenty or so countries with increased in absolute terms, although the proportion which Sida is engaged in long-term in-depth coopera- has remained constant at about 50 per cent. tion. Its efforts are based on the development projects A study was made in 19984 to identify and analyse the recipients themselves wish to implement and on the links between the Climate Convention and Sida's which they are prepared to devote resources. Sida's operations. The study describes the contents of the role is primarily to supply competence and capital. Climate Convention and objectives from Sida's per- This is provided via a network of some 1,500 partners spective and also describes the ways in which Sida's including companies, popular movements, public operations relate to the convention.