Transcript Institutional Arrangements for Adaptation Fund: World Bank

Institutional Arrangements for
Adaptation Fund: World Bank view
Deserts
Oceans
Disasters
Coastal
Biotic resources
Agriculture
Steve Gorman
Global Environment Operations
World Bank
Health
Adaptation Agenda
• Adaptation and Mitigation are strong complements
• Climate change impacts on developing countries are expected
to increase regardless of mitigation efforts
• Demand for infrastructure and agricultural/water investments
that further need to adapt to climate
• Adaptation links global environment issues with local
development paths
• Development investment is at risk in the absence of
consideration of climate variability and climate change issues
• The Multilateral financial institutions can effectively link the
lending and adaptation agenda to produce synergies
• Expected growth of adaptation agenda within UNFCCC
• Need to strengthen national and local institutions to promote
adaptation
• Need for long-term funding arrangements to support adaptation
agenda
Adaptation and Development as part of
World Bank Poverty Agenda
• According to OECD Study, 20% to 50% of ODA is subject to
climate risk
• Whatever the mitigation efforts, we are already committed to
significant climate change
• Current climate variability and climate change are significant
threats to development
Climate disasters are
already a major burden
for developing
countries
Number affected (Millions)
4,000
3,000
Dev'ed
CIT
2,000
Dev'ing
LDC
1,000
-
1970s
1980s
1990s
2000s
Climate Variability is Major Impediment
to Development
Ethiopia
25
20
15
10
5
0
%
A water rich
developing
country, but
with GDP tied
to annual
rainfall
0
variations.
Therefore
-20
adaptation and
growth &
-40
development
are closely -60
linked
-80
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
-5
-10
-15
rainfall variability
-20
GDP growth
-25
Ag GDP growth
-30
year
Preliminary results from : A Country Water Resources Assistance Strategy for Ethiopia
World Bank and IADB Portfolio Study:
vulnerability to climate change
World Bank
• Average no. of projects each year
440
• Average size of annual financing portfolio
$ 20 B
•
• % of projects with moderately sensitive components
40%
• % of projects with highly sensitive components
• Estimated annual expenditure at risk
• (Level 2 & 3 impacts)
25%
IADB
91
$ 6.6 B
27%
11%
$ 5.3 B
$ 1.2 B
(21 – 34 %) (8 – 33 %)
World Bank’s Implementation of
Adaptation Agenda
• Mainstreaming adaptation initiatives in country assistance strategies
• Financing and technical support to adaptation programs outlined in
poverty reduction strategies
• Adaptation is a major consideration in development policy lending and
sector wide adjustment programs
• Anticipatory adaptation is a major component of World Bank Hazard
Management Program
• Bank support to private sector development, microfinance, insurance, and
small and medium enterprises to promote adaptation at local level
• Engagement of line ministries at the policy level to promote adaptation
agenda
• Analytical activities supporting adaptation in Bank policy and lending
programs
World Bank Experience in Global Funds
that Complement Adaptation Fund
• More than 30 years experience in managing trust funds on global programs
• Currently manages over 850 trust funds valued at over $9 billion yearly
covering all major sectors with over 25 which Adaptation Fund overlaps
Co-financing Complements
Adaptation Fund
As GEF
Implementing
Agency
Support to
GEF
Secretariat
Trustee
GEF TF/
SCCF/LCDF
Technical
Support
To GEF
Investment
Lending
Development
Policy
Lending
Adaptation
Fund
World Bank Lending/
Co-financing
Emergency
Lending
for
Hazards
Global
programs
& Trust Funds
Market
MechanismsCarbon Finance/
Insurance
Facility
Proposal on Governance Structure for
Adaptation Fund
Trustee
World Bank
UNFCCC
Share of
Proceeds
GEF
Council
GEF
Secretariat
Strategy/
Business Plan
Agencies
IAs / EAs
Evaluation
Office
M&E
Country Coordinating Mechanisms for Adaptation Projects and Programs
(GEF Focal Points)
National
governments
Private
Sector
Multilateral &
Bilateral
Development
Organizations
Civil Society NGOs, CBOs
World B ank G roup – G EF Program:
Mobilizing Public and Private Fu nds
($21.4 billion) 1993-2005
Other
Other Co
Co--financing
financing
$13.8
$13.8 billion
billion
IB
IBRD/IDA
RD/IDA
$4.8
$4.8 billion
billion
G
GEF
EF
$2.8
$2.8 billion
billion
Costs of Administering Stand Alone
Adaptation Fund
Year
CERs 2% of Size of Fund Admin. Costs of
(Million) CERs @ $ 15/ CER standalone AF
@ 5% of Fund
Current estimate from project
pipeline for 2012
Low Expectation for 2012
340
6.8
$ 102 M
$ 5.1 M
910
18.0
$270 M
$ 13.5 M
Medium Expectation for
2012
1500
30.0
$ 450 M
$22.5 M
High Expectation for 2012
2000
40.0
$ 600 M
$30.0 M
Source: UNFCCC and WB estimates
Note: Administrative costs of a stand alone AF could be saved by managing
AF as part of existing GEF trust fund portfolio
World Bank Contribution to
Adaptation Fund
World Bank’s
Multiple Roles under Adaptation Fund
Trustee of
Adaptation Fund
&
(GEF TF,
LCDF, SCCF)

As Implementing
Agency
Coordinating with
other IAs & EAs
on Adaptation
Projects

Technical
Support to
GEF Secretariat
Co-financing to Adaptation
Projects and NAPAs
Mainstreaming Adaptation
through PRSPs, CAS
Policy & Market Mechanisms
for Adaptation Investments
Capacity & Knowledge mgt
of Adaptation Programs
Support to Private Sector
on Adaptation Agenda
World Bank’s Implementation of
GEF Funded Adaptation Projects
•
•
•
•
•
Kiribati Adaptation Program (SPA funded)
Columbia’s Caribbean Insular Human Health (SPA funded)
Pilot Adaptation in Coastal areas of Dominica, St. Lucia
(SPA funded)
Sustainable land management in Zambezi valley (pipeline)
(SPA funded)
• Pilot Climate Change Adaptation Measures in Andean
Region (SCCF funded)
• Caribbean Mainstreaming Adaptation to Climate Change
(Stage II Adaptation funding)
• Caribbean Planning for Adaptation to Global Climate Change
(Stage II Adaptation funding)
Multi-sector Approach - Kiribati Adaptation Project
Agriculture
• Crop improvement programs to
promote improved adaptation of
cassava, yam, taro, sugarcane
• Support to agricultural and rural
development programs
• Improving climate forecasting
mechanisms
Fisheries
Public Health
• Improved sanitation
• Management of solid and liquid
waste
• Vector control programs for
dengue fever
• Monitoring of areas prone to
ciguatera outbreaks
Coastal Assets
• Hazard mapping done to avoid
infrastructure in flood and landslide
prone areas
• Regional collaboration in tuna
negotiations
• Elevation of coastal infrastructure
• El Nino/La Nina forecasting
• Introduction of building codes
• Licensing arrangements to decrease
year-to-year fluctuations
• Protection of coral reefs
• Replanting of mangroves
Conclusions
• GEF management of AF with other Funds (GEF TF/SCCF/ LCDF)
avoids additional costs and time associated with standalone
administration of Adaptation Fund
• Experience in managing GEF Trust Funds permits application of same
standards/oversight to Adaptation Fund
• Small and uncertain size of Adaptation Fund can be better managed
as compliment to the portfolio of GEF Trust funds
• Adaptation fund could benefit from the larger co-financing and global
program resources
• Use of existing trustee infrastructure to manage the Adaptation Fund
can result in significant cost savings, which could be ploughed back
into the fund to support more projects