Transcript FOCUS: Adaptation Funding sources available and how to access them Louis Perroy, ClimatEkos 30 August 2011, Vientiane, Lao PDR.

FOCUS: Adaptation
Funding sources available and
how to access them
Louis Perroy, ClimatEkos
30 August 2011, Vientiane, Lao PDR
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
What is climate change
adaptation?
‘The adjustment in natural or human systems in response
to actual or expected climatic effects, which moderates
harm or exploits beneficial opportunities’
IPCC Glossary
What does it mean?
•Climate change will have impacts on both natural and
human systems;
•Impacts are expected to be largely negative;
•Climate change adaptation consists in taking initiatives
and measures to make both natural and human systems
less vulnerable to those impacts.
Climate change adaptation
glossary
•
Impacts of climate change: The effects of climate change on natural and human
systems. The effects may be direct (e.g., a change in crop yield) or indirect (e.g.,
damages caused by an increase in the frequency of coastal flooding due to sea-level
rise).
•
Vulnerability: The degree to which a system is susceptible to, and unable to cope
with, adverse effects of climate change. Vulnerability is a function of the character,
magnitude, and rate of climate change and variation to which a system is exposed, its
sensitivity, its resilience, and its adaptive capacity. Adaptation aims to reduce
vulnerability.
•
Adaptive capacity: The ability of a system to adjust to climate change by taking
adaptation measures that moderate potential damages, take advantage of
opportunities, and cope with the consequences (e.g., the access to technology and
know-how for changing farming systems).
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
Impacts of climate change and
possibilities for adaptation actions
Vulnerabilities
Possibilities for adaptation actions
(examples)
1) Coastal zones sea level rise
•Vulnerability of coastal lands to storms
• grounds and fresh water salination in coastal zones
• Coastal Erosion
•Vulnerability of housings
•Plantation of mangrove or other tree types along the
coast
•Building dikes (polders)
•Fresh water management
•Coastal agriculture management (crops more resistant
to salt)
•Analysis and management of zones liable to flooding
•Water management
•Meteorological forecast and warning systems
•Plantation of short rotation forests in zones vulnerable
to winds
•Use of insurance scheme when possible
•Management of agricultural and cattle breeding
practices
• houses insulation
•Water management (better conservation and use)
•Modifications of agricultural practices (types of crops…)
•Reforestation
•Adaptation corridors for the ecosystems and
biodiversity conservation
2) catastrophic events (sudden climatic
malfunction)
• Storms, hurricanes
• Heat waves, sudden droughts.
• Flooding
3) long term impacts (progressive climatic
malfunction)
•progressive warming of weather
•Progressively lower precipitations in some regions
and more intense precipitations on shorter periods in
other regions.
Impacts of climate change on
the agricultural, forestry and
land use sector
Phenomenon
Over most land areas, warmer and fewer cold
days and nights, warmer and more frequent hot
days and nights
Warm spells/heat waves. Frequency increases
over most land areas
Changes in precipitation events. Frequency of
heavy precipitation events increases over most
areas
Area affected by drought increases
Increase in extreme weather events such as hail.
Intense tropical cyclone activity increases
Increased incidence of extreme high sea level
(excludes tsunamis)
Examples of impacts
Increased yields in colder environments; decreased
yields in warmer environments; increased weed and
insect pests and disease outbreaks
Reduced yields in warmer regions due to heat
stress; increased danger of wildfire
Damage to crops; soil erosion, inability to cultivate
land due to water-logging of soils
Land degradation; lower yields/crop damage and
failure; increased livestock deaths; increased risk of
wildfire
Damage to crops; wind-throw of trees
Salinisation of irrigation water
Vulnerability of the
agricultural, forestry and land
use sector to climate change
• Climate change vulnerability can be exacerbated by
other stresses such as poverty and unequal access to
resources, food insecurity and conflicts
• Farmers and those dependant on forests and their
products in developing countries, and especially in the
least developed countries are therefore likely to be
among the most vulnerable to the impacts of climate
change
• Future vulnerability will depend largely on the chosen
development pathway of those countries
Adaptation in the agricultural,
forestry and land use sector to
climate change
Examples of autonomous adaptation
•
Changing inputs such as crop varieties and
species in favour of inputs with increased
resistance to heat and drought
•
•
•
Examples of planned adaptation
•
Incorporate and integrate additional information,
technologes and investments, infrastructures
and institutions with the decision-making
environment
Increasing the use of technologies that ‘harvest’ •
Set up safety nets and enable cash transfers;
water to conserve moisture in the soil and
develop insurance policies that poor
crops; make a more efficient use of water in
households can afford
areas where rainfall has decreased
Diversifying income by integrating additional
•
Develop a planned approach to include many
activities into farming such as livestock raising,
forms of land use and land use change, new
or by seeking other market opportunities
cultivation practices, new seed varieties etc
Improving the effectiveness of pest, disease
•
Include an appropriate incentive structure, such
and weed management practices through, for
as targeted payments for environmental
example, breeding crop varieties that are
services, to encourage farmers to engage in
resistant to pests and diseases
adaptation activities that at the same time lead
to climate change mitigation.
Adaptation meets Mitigation of
climate change
Within the Agriculture and LUCF numerous Adaptation
projects are also Mitigation projects:
• This is the case for
Advantages of using Mitigation projects for Adaptation
purpose:
• Complement finances (faster?!)
• Improve the MRV of the projects and therefore conforts
donors,
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
Adaptation in the global
climate change discussions
UNFCCC and Kyoto Protocol:
• All Parties shall:
• ‘Formulate, implement, publish and regularly update national and, where
appropriate, regional programmes containing measures to mitigate climate
change […], and measures to facilitate adequate adaptation to climate
change’; (UNFCCC, Art. 4.1b; KP, Art 10b)
• ‘Cooperate in preparing for adaptation to the impacts of climate change’;
(4.1.e)
• ‘The developed country Parties […] shall also assist the developing country
Parties that are particularly vulnerable to the adverse effects of climate
change in meeting costs of adaptation to those adverse effects’; (UNFCCC,
Art 4.4; similar in KP, Art. 12.8)
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
National Adaptation
Programmes of Action
•
•
•
•
•
•
•
Established by the Parties to the UNFCCC when negotiating the adaptation
funds
Provide a process for countries to identify priority activities that respond to
their urgent needs with regards to climate change adaptation
First step towards accessing funding from one of the adaptation funds
(LDCF)
Document prepared by authorities in least developed country (usually
Ministry of Environment) with the help of usually UNDP, GEF and
consultants, and funds from the Least Developed Countries Fund (LDCF)
Focus on adaptive capacity to climate change variability
Take into account existing coping strategies and build upon those to identify
priority activities
Include short profiles of projects/activities to address immediate adaptation
needs of that country
So far, 45 least developed countries have submitted their NAPAs to the
UNFCCC; including Cambodia and Lao PDR.
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
Potential sources of
adaptation funding
- UNFCCC Funds
- Special Climate Change Fund (SCCF)
- Least Developed Countries Fund (LDCF)
- Adaptation Fund (AF)
- Other Bi-lateral and multi-lateral funding, such as
- Climate Change Adaptation in Africa (CCAA)
- GEF Small Grants Programme (SGP)
- Global Facility for Disaster Reduction and Recovery (GFDRR)
- Private sector funding
Sources of adaptation funding
In addition to ODA financing comes from numerous climate funds, such as
• Dedicated funds: Global Environment Facility’s (GEF) Trust Fund, Special
Climate Change Fund (SCCF), Least Developed Country Fund (LDCF), the
Adaptation Fund, Clean Technology Fund (CTF), Strategic Climate Fund
(SCF), Asian Development Fund (ADF);
• Multilateral development institutions such as: Asian Development Bank (ADB),
• Multilateral financial Institutions: International Fund for Agricultural
Development (IFAD), European Commission (EC), World Bank (WB),
• Bilateral organizations: United States Agency for International Development
(USAID), The Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ), Swiss Agency for Development and Cooperation (SDC), Swedish
International Development Cooperation Agency (SIDA), Danish International
Development Agency (DANIDA), Japan International Cooperation Agency
(JICA), Korea International Cooperation Agency (KOIKA), governments of
Finland and the Netherlands, French Agence Française de Developpement
(AFD).
Sources of adaptation funding
• Financing of adaptation initiatives have also been done directly by the UN, and by
the private sector.
• The majority of financing comes in form of grants, technical assistance, and
loans.
• Majority of the initiatives involves two or more financing mechanisms, with a
share of country participation, as well.
• The region will also be targeted with financing from the emerging global Green
Fund, and many other mechanisms in the future.
An up to date, exhaustive list of such funds can be found from:
http://www.climatefundsupdate.org/listing/hatoyama-Initiative
http://www.climatefinanceoptions.org/cfo/Funding%20Sources
UNFCCC Funds - SCCF
•
•
•
•
•
Objective:
– Implement long-term adaptation measures that increase the resilience
of national development sectors to the impacts of climate change
Administrator: GEF
Eligibility:
– All Non-Annex 1 countries are eligible to apply for funding under the
SCCF, although the most vulnerable countries in Africa, Asia and the
Small Island Developing States (SIDS) are given priority
Status:
– USD 148 million pledged to the SCCF, of which USD 110.48 deposited
(as of May 2010).
– USD 105 million have been allocated to 30 approved projects (as of
January 2011)
South East Asia relevance:
– Potential source of adaptation funding
– Thailand: Strengthening the Capacity of Vulnerable Coastal
Communities to Address the Risk of Climate Change and Extreme
Weather Events
UNFCCC Funds - LDCF
•
•
•
•
•
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Objective:
– Address the special needs of the Least Developed Countries which are
especially vulnerable to the adverse impacts of climate change ,
including preparing and implementing the NAPAs
Administrator: GEF
Eligibility:
– All least developed countries are eligible to apply for funding under the
LDCF. Funding is disbursed based on a series of criteria drawn from the
COP guidance
Status:
– USD 221 million pledged, of which USD 169 million deposited (as of
May 2010)
– USD 147 million have been allocated to 94 approved projects, including
the preparation of 48 NAPAs (as of January 2011)
South East Asia relevance –
Relevant to South East Asia, including 2 NAPAs
UNFCCC Funds – LDCF
relevance to SE Asia
Cambodia: Strengthening the adaptive capacity and resilience of rural
communities using micro watershed approaches to climate change and
variability to attain sustainable food security
Lao PDR: Effective Governance for Small Scale Rural Infrastructure and
Disaster Preparedness in a Changing Climate
Cambodia: Vulnerability Assessment and Adaptation Programme for
Climate Change in the Coastal Zone of Cambodia Considering Livelihood
Improvement and Ecosystems
Lao PDR: Improving the Resilience of the Agriculture Sector in LAO PDR
to Climate Change Impacts
•
•
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•
•
UNFCCC Funds – Adaptation
Fund
Objective:
– Finance projects that will provide concrete support to adaptation activities
that reduce the adverse effects of climate change facing communities,
countries and sectors
Administrator: Adaptation Fund Board
Eligibility:
– Kyoto Protocol Parties that are particularly vulnerable to climate change
impacts, such as low-lying and other small island countries, countries
with low-lying coastal, arid and semi-arid areas or areas liable to floods,
drought and desertification, and developing countries with fragile
mountainous ecosystems
Status:
– Roughly USD 250 million, including ~USD 150 million from the sale of
CERs (2%), ~USD 100 million from donor countries, + some investment
income
Central Africa relevance:
– Potential source of adaptation funding
– No projects financed in the sub-region to date, only nine projects
financed to date in total
Other bi-lateral and multilateral funding
GEF Funds
Focus Areas
GEF Small
Grants
Programme
(SGP)
Activities of nongovernmental and
community-based
organizations in
developing countries in
five focal areas
including adaptation
Global
Facility for
Disaster
Reduction
and
Recovery
(GFDRR)
Improve the ability of
low and middle income
countries to respond
and manage disaster
reduction and recovery,
including adapting to
climate change
Others
Volume
pledged
Status
Eligibility
Projects funded in
sub-region
N/A
USD $247m
disbursed so
far in 9,500
grants. Open
for project
ideas
Countries that
ratified both the
UNFCCC and
CBD
Numerous adaptation
specific projects in
the region
N/A
Low and middle
income
countries
Lao PDR, Cambodia
and Vietnam are on
the list of targeted
countries.
N/A
Adaptation Private Sector
Initiative
•
•
The “Adaptation Private Sector Initiative” (UNFCCC initiative) aims to catalyze the
involvement of the private sector in the wider adaptation community
It provides a platform for business to further engage with adaptation in order to
address three threads of work
• Contribution that the private sector is making and can make to
adaptation
• The contribution that international organizations and governments can
make to the adaptation of affected businesses
• The strategies that should be put in place by business in ensuring that
their own adaptation efforts are sustainable
•
•
Activities carried out by these companies span a variety of businesses and sectors,
including insurance industry, consultancies, environmental management,
infrastructure and transportation sector, water sector and financial sector, and are
described in more detail below.
33 companies have so far joined this initiative, including Allianz, Caisse des Depots,
Deutsche Bahn, McKinsey, PwC…
Content
• Definition of climate change adaptation
• Climate change impacts, vulnerability and adaptation
options
• Adaptation and the global climate change regime
• National Adaptation Programmes of Action (NAPAs)
• Adaptation funding
• Outlook for post-2012
Adaptation in the Cancun
climate talks
The Cancun Agreements for adaptation:
• Creation of a new Climate Adaptation Framework and associated
Adaptation Committee
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–
•
Identification of a broad set of priority areas for action on adaptation:
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–
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Raise the importance of adaptation in the UNFCCC agenda
Should make a more coherent, action-oriented treatment of adaptation possible
The development of plans, projects and programmes;
Strengthening institutions;
Improving research, observation and information management systems;
Impact, vulnerability and financial needs assessment;
Adaptation technology
Establishment of a ‘Green Fund’
Remaining unresolved issues:
• Allocation of adaptation finance among developing countries
–
–
Fast-start finance priority to the most ‘vulnerable countries’ (LDCs and countries in Asia)
Long-term finance (e.g. from Green Fund) to ‘most vulnerable countries’ (= not defined!)
Green Fund
•
•
•
•
Country ownership in the context of CC adaptation finance entails a strong role
for governments.
In many cases the adaptation finance is often channeled around governments,
through multiple and poorly coordinated channels, and without alignment with
national adaptation or development plans or investments aiming at enhancing
national capacity. The plan of the new Green Climate Fund (GCF) particularly is
to make countries the drivers for the use of funding.
COP16 in Cancun formalized the commitment made by developed countries in
Copenhagen to mobilize USD 100 billion a year by 2020 to address developing
countries mitigation and adaptation needs.
Large parts of these funds will be administered by a newly created ‘Green Fund’,
to simplify the complicated funding mechanisms and bilateral agreements
Green Fund
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•
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Many details of the Green Fund still remain to be clarified, but It has already
been decided that the board governing it will be composed of an equal portion of
developed and developing country members.
The Green Fund could potentially constitute a great opportunity to finance
climate change adaptation in SE Asia.
The Green Climate Fund will support projects, programmes, policies and other
activities in developing country Parties using thematic funding windows
However, the Green Fund shall only help to disburse the $100 billion a year by
2020 but is not designed to raise them. The funding is supposed to come from a
wide variety of sources, public and private, bilateral and multilateral, including
alternative sources.
 KEEP AN EYE OPEN FOR FURTHER DEVELOPMENTS AT THE COP IN
DURBAN!
Thank You!
Louis Perroy
Senior Partner and CFO
ClimatEkos
[email protected]