The International Climate Initiative (IKI) is an important part of the German government international climate finance commitment. In line with the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity (CBD), the IKI finances projects that promote climate action and biodiversity in developing and emerging countries. The project management organisation Zukunft - Umwelt - Gesellschaft gGmbH (ZUG) has been commissioned to implement the IKI funding.
The new IKI Safeguards Policy now aims to set out the guiding principles and procedures for ensuring that international environmental and social standards are upheld in IKI projects. The draft policy has been released for consultation by the the founding ministry BMU. The aim of the consultation is to improve the effectiveness of the policy through dialogue with stakeholders.
The consultation was open until 11 February 2022. Participation was possible through submitting written input as well as attending two online seminars held on 17 & 19 January 2022.
The Federal Ministry for Economic Affairs and Climate Action (BMWK) as the new lead ministry of the IKI, is continuing work on the IKI Safeguards Policy in coordination with the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and the Federal Foreign Office (AA).
Draft of the IKI Safeguards Policy
The IKI Safeguards Policy drafts can be downloaded here:
The IKI Safeguards Policy is based on internationally established principles and procedures for safeguarding international environmental and social standards, which are also implemented in other international institutions working to protect climate and biodiversity.
The IKI is committed to complying with international environmental and social standards as part of its due diligence obligations. It is aligned with the environmental and social standards of the Green Climate Fund (GCF), which currently applies the IFC Performance Standards on Environmental and Social Sustainability.
The aim of the IKI Safeguards is to maximize positive environmental and social impacts of funded projects and to, as much as possible, mitigate, minimise or prevent negative environmental and social impacts.
The Safeguards Policy and environmental and social standards applys to all projects funded by the IKI. This also covers sub-projects financed through financial intermediaries or through partners who receive forwarded funds.
The policy outlines how compliance with safeguards is ensured throughout the project cycle, from project application to completion, and the procedures that must be followed in case of a breach of safeguards standards.
Due diligence requirements are differentiated in accordance with the UN Guiding Principles on Business and Human Rights.
Guiding principles include social and environmental sustainability, protection of biodiversity, respect for international human and labour rights, especially those of indigenous, vulnerable and marginalised groups, stakeholder engagement and participation, as well as the application of a risk-based approach and a risk mitigation hierarchy.
Learning and continuous development of the policy are an integral part of the policy based on lessons learned, regular reviews, and international standards and best practices.
The IKI Safeguards are managed by the IKI Safeguards Team at ZUG. They can be reached at: safeguards(at)z-u-g.org.
