Climate Change Adaptation in Developing Countries: From Policies to Practice Results and Experiences from UNDP-supported Country-led Initiatives

Transcription

1 Climate Change Adaptation in Developing Countries: From Policies to Practice Results and Experiences from UNDP-supported Country-led Initiatives Tom Twining-Ward, Regional Technical Advisor CC Adaptation, UN-REDD and Capacity Development UNDP/BDP/EEG

2 UNDP S STRATEGY VISION: Fostering Human Development in a changing climate STRATEGY: Develop the capacity of countries to prepare, finance, implement and report on low carbon & climate resilient development strategies. KEY SERVICES Mainstreaming: Assist countries to develop low carbon & climate resilient strategies including strategies to maintain economic growth and resilience Environmental Finance: Identify, access and combine sources of environmental finance to attract and drive much larger private sector investment flows towards low carbon, climate resilient and ecosystem friendly development 1

3 UNDP s Services on Adaptation Integrated Policy and Planning Knowledge Management and Methodology Support. Formulating, Financing and Overseeing Climate-resilient Projects and Programmes 2

4 Type of Partnerships and more.. 3

5 Adapting to Known & Unknown Probabilities (risk versus uncertainty) Wait till state is different or accept that decisions will have to be made under uncertainty 4

6 UNDP supports developing countries to: CREATING ENABLING ENVIRONMENT Take stock of climate change problem and prioritizing no-regrets, urgent and life-cycle responses Develop national policy frameworks for adaptation including comprehensive Low Carbon & Climate Change Resilient Roadmaps Strengthen technical capacities for managing climate change risks Establish institutional organization to effectively manage climate risk management Test approaches 5

7 COMBINING AND SEQUENCING FINANCE UNDP supports developing countries to: Assess economic costs of action/inaction including marginal costs of low-cost, high-cost adaptation options Access, sequence and deliver financing needs (from various public finance sources) Leverage public finance to catalyze private finance 6

8 UNDP s Assistance to Countries on Adaptation To-date Enabling Activities: NCs, NAPAs APF and Project Development Guidance V&A Priorities and Timescales Identified Strategies and Projects Identified Up to Adaptation Funds Adapted Policies and Measures Implemented 2006 onwards 7

9 UNDP s Approach to Adaptation UNDP assists over 75 non-annex I countries to adapt to climate change UNDP Climate Change Adaptation Assistance Distribution of Funding by Activity 1. Develop Technical Capacity Identify climate change risks and opportunities Prepare long-term risk management strategies 2. Internalize Climate Change Risks Integrate climate change risks into planning, budgeting, management Incorporate climate change risks into decision making process for key economic sectors 3. Policy and Institutional Support Revise and formulate national and sectoral policies Establish institutional support mechanism 4. Demonstration Projects Test approaches and technologies for climate change risk management 5. Capacity Building Codify and disseminate KM and best practices 8

10 Responding to Country Priorities and Promoting Country Ownership UNDP takes an integrated and country driven approach to climate change adaptation Integrated and Country Driven Approaches to Adaptation UNDP LDCF/SCCF/AF/AAP/etc Adaptation Initiatives: Integrate and/or compliment ongoing development initiatives Aligned with National PRSPs, National development frameworks, and UNDAFs Streamline financing Country-led Benefit and include local stakeholders Collaborate with dev. partners National Execution of Adaptation Initiatives UNDP Provides Technical Services to National Executing Authorities Identify and source/screen ideas for fund mobilization Programme/project development Programme/project oversight Support project implementation 9

11 Distribution of UNDP s Adaptation Portfolio (% based on total funding) 10

12 Examples of Projects (Sub-Saharan Africa) (SIDS) (Asia) 11

13 Key Principles for Managing Climate Change Risks Six Key Principles for Managing Climate Change Risks 1. Building Institutional and Individual Capacities 2. Integrating Gender Perspectives 3. Engaging Multiple Stakeholders and Partner for Success 4. Promoting Regional and South-South Cooperation 5. Demonstrating Adaptation for Scale 6. Catalyzing Additional Financial Resources 12

14 Key Principles for Managing Climate Change Risks Building Institutional and Individual Capacities Building capacity at systemic, institutional, and individual levels to integrate climate information and management of climate risks and opportunities into the national development priorities. Vietnam Ministry of Agriculture and Rural Development, UNDP, Asian Development Bank Integrate climate change risks into coastal zone management frameworks Coastal zone policies and regulations will be reviewed and revised in line with anticipated climate change impacts. Technical training including capacity to integrate climate change information in coastal development planning will be provided by key sectoral ministries. 13

15 Key Principles for Managing Climate Change Risks Integrating Gender Perspectives Gender is mainstreamed through scoping of adaptation needs, engagement with local stakeholders, vulnerability assessments, and capacity building. Mainstreaming Gender at UNDP Mainstreaming gender equality and parity is mandated by UNDP. Efforts are measured through a set of indicators reported by all projects Indicators include reference to gender or gender equality in project documents, gender needs and vulnerability assessment, extent of engagement with women s organizations or groups, targeted women beneficiaries, women in project staff management, and use of gender disaggregated data, to name a few. 14

16 Key Principles for Managing Climate Change Risks Engaging Multiple Stakeholders and Partnering for Success Consultative and participatory processes in project development, delivery, and monitoring and evaluation. Partnering with national and regional institutions, international agencies, private sector entities, NGOs, and CBOs to provide coordinated assistance to countries. Bhutan and Multilateral Partners ADB, FAO, Red Cross, UNDP, UNV, World Bank, WFP, WWF, and WHO In Bhutan, project preparation included a series of consultations with stakeholders at the national and regional levels, including the ministries of agriculture, forestry, livestock, environment, roads, health, geology and mines, finance, planning, and home affairs and the Dzongkha administrations. 15

17 Key Principles for Managing Climate Change Risks Promoting Regional and South-South Cooperation Promoting inter-institutional coordination and regional collaboration to strengthen adaptive capacities across institutions, sectors, and national boundaries. Regional partnerships strengthened to prioritize cross-cutting measures to advance climate change and poverty and environmental considerations. UNDP/GEF Pacific Adaptation to Climate Change Initiative Increase resilience to climate change The Pacific Adaptation to Climate Change initiative brings together Pacific Island countries in increasing resilience in the areas of food security, water, and coastal management. UNDP is implementing this project in partnership with the South Pacific Regional Environment Programme (SPREP). 16

18 Key Principles for Managing Climate Change Risks Demonstrating Adaptation for Scale Demonstration of adaptive responses to offer lessons to replicate, scale, Leverage interventions to inform national and sub-national level policies and programming. Prioritizing the need to link global, regional, and national policy programming to local adaptive action. Liberia In Liberia, with LDCF funding, the Environmental Protection Agency and UNDP, are aiming to enhance resilience of coastal systems by demonstrating adaptive measures such as building a breakwater system for Monrovia coastal area, restoring mangroves and natural buffer zones, and establishing early warning systems. 17

19 Key Principles for Managing Climate Change Risks Catalyzing Additional Financial Resources By accessing, sequencing, and combining adaptive financing from a diverse set of sources, UNDP is facilitating climate risk management and adaptive capacities at various levels. Distribution of UNDP s Adaptation Portfolio (% based on total funding) UNDP Leverages over US $1 billion in Adaptive Financing NDP plays a key role in assisting countries to mobilize adaptive financing including from bi-lateral donors, international agencies, NGOs, development banks, and the GEF-managed adaptation funds. Most recently, UNDP supported initiatives have been approved for funding by the newly operationalized the UNFCCC/Kyoto Adaptation Fund. To date, UNDP has leveraged over US$ 1 billion in adaptive financing, including more than US$ 360 million in grants. 18

20 Critical Issues for Adaptation Issue 1: Scale of adaptation costs, realities of funding and optimizing adaptation decision-making Issue 2: Emerging architecture for adaptation finance and positioning countries to tackle climate change Moving towards a programmatic approach Reducing bottlenecks at country level Issue 3: Scaling up localized adaptation 19

21 Scale of adaptation costs in developing countries US $100 billion per year by 2020 Copenhagen Accord Current sources insufficient! Source: EACC, WB

22 Economically efficient Adaptation CC is also a resource allocation issue $ How do we know best use of scarce resources available: - No single way to adapt (lots of choices today, many choices tomorrow) - Competing needs (climate change impacts, unemployment, poverty, health etc) MSB MC Adaptation is local, context matters Damage costs, net economic and social welfare benefits, efficiency, cost effectiveness Support better informed policy choices Must be contextualized to local conditions/political economy 0% Q* Optimize welfare! 100% Requirements Market and Non-market valuation Social vs. private perspective Notation MSB = Marginal social benefit MC = Marginal Cost Q* = efficient level of climate proofing 21

23 No Regret Options Low Cost / Co-benefit Significant Cost Marginal analysis is missing! Policies / Barriers Policies / Incentives Risk Transfer/Financing Instrument Source: ClimateWorks Foundation, Global Environment Facility, etc. Economic Costs of Adaptation

24 However, what is required is more than a study. Need to create systems and capacity at national/subnational level for economics of climate change adaptation to factor in decision-making processes iteratively and continuously DATA CENTRES Statistics and Census Department Other centres (local/international) 23

25 The Global Climate Change Financial Architecture Government Cooperation Budgets Private Cooperation Finance Capital Markets Domestic Budget Innovative Climate Finance (sources and governance under negotiation National Implementing entities Bilateral Cooperation Industrialised countries ODA commitment Multilateral Cooperation Official Development Assistance National Financial Institutions Industrialised countries commitments to new and additional finance for climate change Bilateral Finance Institutions New and additional climate finance Multilatera l Finance Institutions Industrialised countries emission reduction obligations UNFCCC Carbon Markets Private Sector Foreign Direct Investment CSOs/NGO s Public Finance must be made use of more strategically! CDM Levy funding the Adaptation Fund Total finance available for climate change mitigation and adaptation initiatives Source: Adapted from SEI

26 Emerging architecture for adaptation finance Businesses and households will account for over 80% of the additional climate investment required in 2020; Vertical funds will have proportionately smaller role. Discussions need to focus on core issues how to attract, direct, manage flows of funding under emerging climate change regime. Developing the capacity of countries to create conditions that allow markets and private investment flows to address pressing climate change needs should be a priority in addition to international public finance Finance and Planning, together with Environment and Key Ministries (Agriculture, Water) increasingly will need to work together Systems at national, sub-national level required for attracting finance for climate change 25

27 Desired Outcome National and sub-national Governments supported to develop prospective integrated Low Emission Climate Resilient Development (LECRD) Strategies to attract and direct public and private investment towards catalyzing and supporting sustainable economic growth 26

28 Low Carbon & Climate Resilient Strategies Partnership & Coordination Structure Climate Change Impact Scenarios Climate Change scenarios Vulnerability scenarios GHG emissions scenarios Mitigation & Adaptation Scenarios Identification of priority M&A options Assessment of financial flow requirements and additional costs Identification of possible policies and financial instruments to implement priorities 27 27

29 To enable governments to better identify the optimum mix of regulatory and public financing instruments required to attract catalytic financial flows toward low emissions, climate resilient development. 28

30 Support for Community-Based Adaptation UNDP supports grassroots action for policy change Support to At-Risk Countries High socio-economic vulnerability and climate hazards Strengthen a community s ability to design and implement climate change adaptation measures Ensure a multi-stakeholder process (community, local, and national levels, and development agencies) Support the dissemination of indigenous knowledge on managing climate-related risks Apply lessons and practices from community-led initiatives to the preparation of national policies 29

31 Scaling up localized adaptation: A Grass Roots Approach Promoting equity and justice through community based adaptation Bolivia: Climate resilient watershed management Niger: Protecting resources and optimizing resource cooperation in response to climate change Kazakhstan: Piloting winter irrigation to replace declining snowfall Samoa: Addressing climate driven coastal hazards (erosion and stronger storms) 30

32 Integrating climate resilience principles into social protection programmes Implications for social protection programmes in the context extreme events and climate change However, limited work on role of social protection in context of long-term climate change risks - Risk management in context of long-term CC has not factored in implications of social protection. Aligning risk transfer, microfinance, policy/institutional change for CRM that are closely aligned with poverty reduction Ensuring that social protection policies and programmes are calibrated to long-term outlook(s) 31

33 Scope of Future UNDP Assistance UNDP to focus on technical services to governments to attract and direct public and private investment towards catalyzing and supporting integrated low emission climate resilient economic growth and human development. 1. Support Key Sectoral Governance Entities to Develop and Strengthen Policies, Institutions, and Knowledge Improve climate change risk information relevant to a broad range of end users Establish policy development and review mechanisms to systematically integrate climate change risk information and experience into relevant policies, strategies, and plans Strengthen institutions across sectors and at different levels in conjunction with harmonized institutional mandates to coordinate and jointly formulate and implement climate change policy Ecosystem Based Approaches for Adaptation

34 Scope of Future UNDP Assistance 2. Support Use of Full range of Public and Private Financing Mechanisms for Low Emission, Climate-Resilient Development Pro-poor public sector budgeting adjusted to incorporate climate change risk Design and application of climate change risk finance mechanisms 3. Support Implementation of Incentive Structures to Affect Behavioral Adjustments by Public and Private Sectors Regulatory and fiscal incentive structures adjusted/expanded in relevant institutions, including key sectoral ministries and sub-national governing bodies, to stimulate climate change risk reduction and/or reduce carbon emissions by the private sector and households Social safety nets enhanced to support vulnerable groups, especially women impacted by climate change Ecosystem Based Approaches for Adaptation

35 Components of Low-Emission Climate Resilient Development Develop LECRD Strategies Generate and Share Knowledge UNDP s support services Technical and Policy Advice Developing and Applying Methodologies Oversight and Financial Management Training Multi-stakeholder dialogues Convening & Coordination Establish Enabling Environment Catalyse Finance Ecosystem Based Approaches for Adaptation

36 Visit: Thank You! 35