Transcript Title

State of Finance for Adaptation and
UNDP’s Strategy for Supporting countries in
the Arab States
Elie Kodsi
Drylands Development Centre
UNDP Environment and Energy Group
Damascus, 15-16 September 2010
Costs of Mitigation and Adaptation in Developing Countries
US $100 billion
per year by 2020
Copenhagen
Accord
Costs of Adaptation (World Bank and UNFCCC, $billions)
Source: EACC, WB 2010
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Diversity of schemes
Some operate at the
international level
Others only available
to domestic investors.
Four main categories:
(i) public funds
providing either grant
or loan assistance;
(ii) Private funds
providing either grant
or loan assistance;
(iii) market-based
instruments;
(iv) innovative
financing instruments.
Source: SEFI, New Energy Finance in Glemarec et al (2010)
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Global Climate Finance Negotiations
UNFCCC negotiations continue to discuss reform of financial mechanism:
• A possible new fund: Copenhagen Green Climate Fund (CGCF) to manage
a “significant portion” of future climate finance in addition to GEF and AF
• Creation of a new oversight system (possibly a Finance Board) under the
Convention that may be involved in fund allocation and approval (for CGCF,
GEF and AF projects)
•Use of Low-emission, climate-resilient development strategies as the
foundation for accessing and allocating finance
•Increased provisions for direct access under all funds
Status of Discussions as of mid-2010:
• Negotiations moving slowly--full deal in Cancun ruled out
• Still much to be clarified over the CGCF and respective roles of GEF & AF
• However, “fast start finance” ($30bn per year 2010-12) is flowing (65%
along bilateral lines; some as part of GEF V and AF pledges)
3
COP
Registry/Mitigation
Financial Mechanism
CC Adaptation
BILATERAL
BOARD ?
Forestry & REDD
Technology
Matching
Coordination
Oversight
MRV
Capacity Buliding
Adaptation Fund
Copenhagen Green Climate Fund ?
GEF
Countries Receiving Climate Finance
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GEF and the Kyoto Adaptation Fund
GEF Assistance to Address Adaptation
Secretariat
services for the
AFB provided by
GEF on an interim
basis.
GEF Trust
Fund
GEF Trust Fund
Strategic Priority
on Adaptation (SPA)
adaptation action
WITH GLOBAL
BENEFITS
UNFCCC climate
change funds
The Adaptation
Fund
Least Developed
Country Fund
(LDCF)
(implementation of
NAPAs)
Special Climate
Change Fund
(SCCF)
Top priority to
Adaptation
Adaptation Fund
(AF)
Adaptation in
developing country
parties to KP
NO GLOBAL BENEFITS
NO GLOBAL BENEFITS
NO GLOBAL BENEFITS
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Modalities for Accessing The Kyoto Adaptation Fund
Source: Accessing
Resources from the
Adaptation Fund, 2010
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Status of Funding
GEF/LDCF
GEF/SCCF
Pledges: $221m
Pledges: $148m
Kyoto/AF
CER Sales: $156m
Funding Approvals:
$135m
Funding Approvals:
$109m
Funding Approvals:
$0
(Only for LDC)
(For all non-annex 1
Parties)
(For all Parties to Kyoto –
non annex 1 to UNFCCC)
Source of Funding
Replenished Voluntarily
Donor Contributions
Source of Funding
CER Sales
Source of Funding
Replenished Voluntarily
Donor Contributions
2010-2014 Expectation
$500m
2010-2014 Expectation
$500.
Governance
GEF LDCF/SCCF Council
Governance
GEF LDCF/SCCF Council
2010-2014 Expectation
$317-434m
Governance
AF Board (Parties)
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Current UNDP Support to Countries
in the Arab States
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UNDP’s Adaptation Portfolio
• Where do we stand in the region?
$13,3 million / $15 million
in co-financing
•
Addressing priority climate hazards and adaptation needs
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Sources of LDCF, SCCF and AF Funds Mobilized To-Date – Arab Regions
•
•
•
•
•
Egypt - $4m (SCCF)
Sudan - $3.3m (LDCF)
Morocco - $3m (GoJ)
Tunisia - $3m (GoJ)
Morocco - $300K (SPA) (part of a global community based
adaptation project)
• Jordan – $750K (SCCF) (part of a UNDP-GEF global cc health
adaptation project executed by WHO)
Others: Number of Enabling Projects (Nat Coms, CB2s etc)
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Funding to be Mobilized (2010 onwards)
SCCF:
– Jordan – Treated waste water use $ 3.6 million;
– Syria – Innovative finance for adaptation in the Badia steppe - $4.5
million;
LDCF
– Requests from Sudan and Yemen
AF
– Egypt – mariculture as coastal defense and livelihood diversification $5.7 million
– Requests from Lebanon, Sudan, Yemen and Djibouti
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Key Challenges in Attracting Financing
Assuming that international public finance commensurate
with the Copenhagen Accord will be mobilized there are 3
key questions:
 Finding ways to mobilize a variety of resources at scale
How to attract, blend with, and catalyse, larger sources of public and
private finance
 How to assist countries to move towards low carbon climate
resilient growth paths
 How to deliver finance in a nationally defined and directed
way where it is most needed
Find ways to deliver finance at speed to where it is needed most
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Emerging UNDP Support to Countries
in the Arab States to Pursue
Low Emission Climate Resilient Development
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UNDP Approach For Assisting Countries Attract CC Finance
 Raising finance and delivering finance go hand-in-hand (i.e cannot
be dealt with separately)
 A country-driven, multi-stakeholder framework to scale up cc
finance to strengthen and advance national development priorities
is required.
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A New Development Paradigm:
A country-driven, Multi-Stakeholder Climate Finance Framework
Public and Private Sources of Funds
(National and International Sources)
Low Emissions,
Climate Resilient
Development
Strategies
Financial and
Technical
Support
CC Platforms
“NAMAs/NAPS”
Implementation
and Reporting
Mechanisms
This approach allows governments to put development at the heart of
climate planning
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5 key steps to prepare a LCLRD Strategy
Develop
Partnership &
Coordination
Structure
Prepare Climate
Change Scenarios
• Climate scenarios
• Vulnerability
scenarios
• GHG emissions
scenarios
Identify
Mitigation &
Adaptation
Options
• Identify priority
M&A options
through a multistakeholder
consultative process
Assess Priority Climate
Financing Needs
• Assess existing financing
options
• Undertake cost-benefit
analysis of priority options
• Identify Financial flow
requirements
• Identify policy & financing
options
Prepare
comprehensive
Low Carbon &
Climate
Change
Resilient
Roadmap
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[1]
Refer to annex 4
Enhancing Climate Resilient
Development
Drylands Development Centre
Arab States Programme
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DDC-supported Intervention in Syria
• The North-eastern Region in Syria lagging behind in terms of the MDGs
and faces development challenges: lack of basic services and
infrastructure, little investment and limited job opportunities, migration
• It is home to 58.1% of the poor population
• it has 42% of Syria’s cultivated area, is heavily dependent on agriculture
and, therefore, is very sensitive to desertification and drought.
• Moreover, the region has been more impoverished in the last few years
as a result of severe drought. Two UN joint assessments conducted in
2008 and 2009 concluded that the drought is severe, the worst of the last
40 years and affected about one million people.
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DDC-supported Intervention in Syria
• The North-eastern Region in Syria has a major existing climate
adaptation challenge, which climate change is likely to deepen.
(Impact from climate is not a future concern, it is an immediate
concern)
• The Region’s adaptation challenge is inextricably linked with its
development challenge: if people are well educated, have access
to good basic services and have robust/diversified livelihoods they
will be much less vulnerable to climate change.
• Adaptation is essentially about development in a hostile climate or
climate-resilient development
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DDC-supported Intervention in Syria
• National response: Integrated Community Development for
•
•
•
scaling-up the MDGs in the North-eastern Region
Joint project Ministry of planning and UN agencies (UNDP,
ILO, WFP, FAO, UNICEF, UNFPA)
Key MDGs targeted are related to poverty, education, health
and environment.
DDC support seeks to build community resilience to drought
through: 1) developing vocational and business skills among
adults and youth for livelihood enhancement/diversification
and 2) building the capacity of farmers to adopt appropriate
land and water management practices
2020
Syria - Lesson learned
• A window of opportunity today: a chance to put in place
nationally-owned programs that boost sustainable
development and in doing so greatly improve the levels of
climate adaptation
• The work piloted in Syria can:
Serve as a baseline for mobilizing additional funding from
international climate finance (this is on-going)
2. Feed into the development of Low Emissions, Climate Resilient
Development Strategy (whether at the national or sub-national
level)
1.
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For further information on adaptation funding and programming in
the Arab States Region:
Keti Chachibaia, Regional Technical Advisor- Adaptation- Arab States
[email protected]
Elie Kodsi, Regional Manager for Arab States, UNDP Drylands
Development Centre, [email protected]
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