Assessing the state-of- play of climate finance tracking in Europe Final Report Contract details Framework Service Contract No EEA/ACC/13/003/Lot-2 Assessing the state-of-play of climate finance tracking in Europe Presented by Trinomics B.V. Westersingel 32a 3014 GS Rotterdam The Netherlands Authors Lisa Eichler Koen Rademaekers Carmen van den Berg Jeroen van der Laan Hans Bolscher Date Rotterdam, April 2017 Acknowledgements We would like to thank all EIONET contact points, as well as other Member State representatives who have participated in the data and knowledge survey. These responses form a core part of the analysis. We would also like to thank the organisers (Ian Cochran, Hadrien Hainaut) and all participants of the I4CE-EEA expert workshop held in October 2016 for the useful discussions and outcomes that have been incorporated in this report. Finally, we would also like to thank the European Environment Agency, in particular Andreas Barkman, for the continuous engagement, support and feedback throughout the course of this project. Disclaimer The views expressed in this report are purely those of the writer and may not in any circumstances be regarded as stating an official position of the European Environment Agency. Rotterdam, April 2017 Client: European Environment Agency (EEA) Framework Contract EEA/ACC/13/003/LOT-2 Assessing the state-of-play of climate finance tracking in Europe Final Report TEC6112EU TEC6112EU State-of-Play of Climate Finance Tracking in Europe CONTENTS Executive Summary ................................................................................. viii The importance of an improved knowledge base for domestic climate finance tracking .. ix Key messages from the stock-taking of European domestic climate finance data and information ........................................................................................................... x Roadmap towards closing identified data and knowledge gaps ................................. xvi 1 Introduction ........................................................................................ 1 1.1 Context ............................................................................................... 1 1.2 Objectives ........................................................................................... 2 1.3 Scope ................................................................................................. 2 1.3.1 What is domestic climate finance? ..................................................................... 3 1.3.2 What are Landscapes of domestic climate finance? ................................................. 6 1.3.3 What climate action areas to track? ................................................................... 7 1.3.4 What sources of finance to track? ...................................................................... 8 1.3.5 What type of climate finance flows to track? ...................................................... 11 1.3.6 When to track? .......................................................................................... 14 1.4 Methodology ....................................................................................... 16 1.4.1 Overall approach........................................................................................ 16 1.4.2 Detailed methodological steps ........................................................................ 17 1.4.3 Important caveats ...................................................................................... 21 1.5 Reading Guide .................................................................................... 22 2 Stock-taking of European mitigation finance information ...............................23 2.1 Introduction ....................................................................................... 23 2.2 Estimated investment needs .................................................................. 24 2.2.1 EU level .................................................................................................. 24 2.2.2 National level ........................................................................................... 30 2.3 Actual spending .................................................................................. 44 2.3.1 EU level .................................................................................................. 48 2.3.2 National level ........................................................................................... 56 2.4 Planned expenditure ............................................................................ 69 2.4.1 EU level .................................................................................................. 69 2.4.2 National level ........................................................................................... 74 2.5 Remaining financing gap ....................................................................... 79 2.5.1 EU level .................................................................................................. 80 2.5.2 National level ........................................................................................... 87 3 Stock-taking of European adaptation finance information ...............................94 TEC6112EU State-of-Play of Climate Finance Tracking in Europe 3.1 Introduction ....................................................................................... 94 3.2 Estimated investment needs .................................................................. 95 3.2.1 EU level .................................................................................................. 95 3.2.2 National level .......................................................................................... 101 3.3 Actual spending ................................................................................. 108 3.3.1 EU level ................................................................................................. 109 3.3.2 National level .......................................................................................... 109 3.4 Planned expenditure ........................................................................... 113 3.4.1 EU level ................................................................................................. 114 3.4.2 National level .......................................................................................... 115 3.5 Remaining financing gap ...................................................................... 120 3.5.1 EU level ................................................................................................. 121 3.5.2 National level .......................................................................................... 123 4 Roadmap towards closing current data and knowledge gaps .......................... 126 4.1 Synthesis of findings regarding European mitigation finance data and knowledge gaps 130 4.1.1 Overview of data accessibility ....................................................................... 130 4.1.2 Prioritisation of mitigation finance related data gaps ............................................ 135 4.2 Synthesis of findings regarding European adaptation finance data and knowledge gaps 142 4.2.1 Overview of data accessibility ....................................................................... 142 4.2.2 Prioritisation of adaptation finance related knowledge gaps ................................... 146 4.3 Building blocks for improved European climate finance tracking ................... 148 4.3.1 Building block # 1: Developing a common terminology and definitions ........................ 151 4.3.2 Building block # 2: Reviewing and learning from existing tracking methodologies and data collection processes ..................................................................................................... 152 4.3.3 Building block #3: Leveraging existing reporting procedures for gathering improved domestic climate finance information ........................................................................................... 155 4.3.4 Building block #4: Training and capacity building on climate finance across stakeholders . 157 4.3.5 Building block #5: Setting up a European expert network on domestic climate finance tracking 158 5 Annex A: EIONET survey ...................................................................... 160 A1: The EIONET survey .................................................................................. 160 A2: First-entry (face value) survey results ......................................................... 170 6 Annex B: Additional information from the mitigation stock-taking exercise ....... 172 6.1 Supporting evidence on estimated investment needs .................................. 172 6.1.1 EU level: comparative analysis of available literature ........................................... 172 6.1.2 RES-electricity investment needs exercise ......................................................... 181 6.2 Supporting evidence on actual spending .................................................. 184 6.2.1 Actual RES-electricity investment spendings exercise ............................................ 184 TEC6112EU State-of-Play of Climate Finance Tracking in Europe 6.2.2 Underlying assumptions for the EU Budget split between mitigation and adaptation spending 185 7 Annex C: Additional information from the adaptation stock-taking exercise ...... 190 7.1 Supporting evidence on estimated investment needs .................................