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Innovative Schemes for
Financing Adaptation and
Enhancing Technology Transfer
Valentino Piana
Ankara, 19th November 2009
Contents
1. A qualitative evaluation of the costs of climate change
and adaptation
2. The adaptation cost curve (by strategy type) qualitative estimates
3. Conventional and innovative sources for adaptation funds
4. Enhancing technology transfer: the debate
5. Conclusions
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1. A qualitative evaluation of the costs of climate change and adaptation
Awareness
Systemic relevance
Dominance
280
240
180
160
120
80
Climate change
damage
Adaptation
expenditures
40
0
07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 21 22 23 24 25 26 27 28 29 30 31 32 33 34
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2. The adaptation cost curve (by strategy type) - qualitative estimates
Saving
strategies
110
90
Framework
strategies
(process)
System-wide
intervention
70
50
30
10
Protection of key
assets
-10
-30
Cost
Framework
strategies
(measures)
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3. Conventional and innovative sources for adaptation funds
1
2
International funds (from COP15 new facilities, from WB,…)
Domestic tax ---> PRODINT
3
Local mobilization
44
Insurance schemes
45
“Polluters pay” + “Profit tax from CC gains”
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3. Conventional and innovative sources for adaptation funds
1
International funds (from COP15 new facilities, from WB,…)
“Adaptation Framework / Programme
International Insurance Facility / mechanism
Compensation and rehabilitation component
Adaptation Commitee / Subsidiary Body
National Adaptation Plans
Regional centres for adaptation”
(AWG-LCA Non-paper n. 41, 5/11/2009)
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3. Conventional and innovative sources for adaptation funds
1
International funds (from COP15 new facilities, from WB,…)
How much
Who pays
What to fund
How and who manage
the fund
Large-enough international funds need to be collected from many countries,
from both public and private sources, credibly managed
and spent on uncontroversial actions
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3. Conventional and innovative sources for adaptation funds
2 3
Domestic tax ---> Local mobilization + PRODINT
Distribution of local adaptation plans
Legenda: EE1 = lack of adaptation plan in areas at risk: the"blue"
agents pay;
EE2 = good and cost-effective adaptation plan:
the "red" agents receive
Between EE1 and EE2: Neutral area of unsufficient local plans to be
financed
after improvements
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3. Conventional and innovative sources for adaptation funds
2 3
Domestic tax ---> Local mobilization + PRODINT
PRO
AGAINST
National and
international
funds
can improve
these
balances,
reaching an
even wider
majority of
consensus
Distribution of consensus for PRODINT
Legenda: EE1 = the"blue" agents are against (but guilty);
EE2 = the "red" agents receive (and are in favour)
Between EE1 and EE2 = they will receive next time (so they
are in favour)
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3. Conventional and innovative sources for adaptation funds
44
Insurance schemes
Public-driven, private-delivered instrument to
quantify risk in specific areas
and spread it in uncorrelated conditions
It is possible a mandate to cover areas at risk
It should be thoroughly explored
However, it remains possible that private
assurances will ask too much and
re-assurance business will be afraid of systemic
risk
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3. Conventional and innovative sources for adaptation funds
45
“Polluters pay” + “Profit tax from CC gains”
Damage-based request for compensation
Strong linkage to mitigation
If any business or industry gains from the change
in climate (e.g. shipments through the Arctic Sea),
their profits should be taxed away to fund
adaptation
International agreements needed
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4. Enhancing technology transfer: the debate
International institutions from COP15
“Executive Body on Technology
Technology Incentive for Development
and Transfer
Technology Capacity Building Program
Technology Mechanism/
National policies
Regional Hubs for Technology Tranfer,
Sectoral Innovation Centers,
Executive Coordinating Council
International Technology Action Plan
National Technology Action Plan
Global Technology Pool for Climate Change
Global Technology IPR Pool for Climate Change
Technology Development and
Transfer Facility/service
Climate Technology Hugs and Corps
Climate Technology Centre
Climate Technology Network/
Technology Action Framework/
A financing and technology mechanism
Technology Innovation Centres”
(AWG-LCA Non-paper n.47, 6/11/2009)
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Conclusions
Financing adaptation to climate change will exacerbate fiscal
problems and international difficulties in solidarity.
But properly managed and channeled, the overall architecture of
COP15 and beyond can be a crucial leverage for sustainable
development at large.
Technology is not the only solution: behavioural, organisational
and infrastructural components are essential.
However, trade-offs between costs and effectiveness can be
improved by proper and appropriate technology change.
Fast developing countries with large absorption capacity
should be at the forefront of international dialogue.
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For further information and support feel free to contact us!
Valentino Piana
<[email protected]>
Mobile phone: +39 349 36 10 476
Thank you for your kind
attention.
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