Transcript Introduction to adaptation finance

Adaptation Finance
- The Overview
Emani Kumar
Deputy Secretary General &
Executive Director, ICLEI – South Asia
Presentation Outline:
• Introduction to climate adaptation finance
• Global trends (e.g. amount allocated for adaptation finance,
• Multilateral Mechanisms
• Where the money is??
• Bottom up Finance for Local Governments
• ICLEI’s Work on adaptation
• Conclusions
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Climate Adaptation Finance
• adaptation to climate change has
become a major agenda item in
international climate policy, in
particular under the UNFCCC and also
at global and national levels.
• planning & design of adaptation
finance is taking place at all levels.
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Costs of Climate Change
Annual Funding Needs
By Year
Mitigation
Adaptation
EC (2009)
2020
94*
10-24
African Group (2009)
2020
200
>67
World Bank (2009)
2030
139-175
20-100
UNFCCC (2008)
2030
>65
28-59
2005 Billion of US$
Source: IIED 2010, Briefing, Copenhagen‘s climate finance promise: six key questions
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Financial Needs for Adaptation
• Estimated global adaptation costs:
– World Bank: $ 70 – 100 billion/year until 2030
– UNFCCC: $ 60 – 186 billion needed globally in 2050, $
28-67 in developing countries
• 80% to be spent in cities and out of this 54% will be on
infrastructure
• Bottom-up approach needed – for local governments to
be able to access adaptation funds directly
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Climate Change Funds
Distribution of Funds(Million USD)
12000
11000
10000
9000
Million USD
8000
7000
6000
5000
4000
3000
2000
1000
0
Asia and Pacific
Europe and Central
Asia
Global
Latin America and
the Caribbean
Region
Middle East and
North Africa
Sub-Saharan Africa
Region-wise Approved Vs
Disbursed
Unknown
Sub-Saharan Africa
Mixed
Middle East and North Africa
Approved
Disbursed
Latin America and the Caribbean
Global
Europe and Central Asia
Asia and Pacific
0%
Source: www.climatefundsupdate.org;June 2013
20%
40%
60%
80%
100%
Climate Change Funds
Funds
Deposited
~10 bn USD
AF
FA
CTF
CBFF
FCPF
GCCA
Adaptation Fund
Amazon Fund (Fundo Amazonia)
Clean Technology Fund
Congo Basin Forest Fund
Forest Carbon Partnership Facility
Global Climate Change Alliance
Global Energy Efficiency and Renewable
GEEREF
Energy Fund
ICI
International Climate Initiative
ICFI
International Climate and Forest Initiative
IFCI
International Forest Carbon Initiative
LDCF
Least Developed Countries Fund
MDG Achievement Fund - Environment and
MDG
Climate Change thematic window
PPCR
Pilot Program for Climate Resilience
Scaling-Up Renewable Energy Program for
SREP
Climate Resilience
SCCF
Special Climate Change Fund
SPA
Strategic Priority on Adaptation
UN-REDD UN-REDD Programme
Source: http://www.climatefundsupdate.orga/ data , accessed June 2013
Pledged
~13 bn USD
134.57m
128.91m
4073m
143.63m
458.7m
385.36m
166.65m
1031.87m
4936m
186.02m
458.7m
385.36m
65.66m
1081m
1607.82m
67.06m
585.51m
169.5m
1081m
1607.82m
189.57m
604.74m
90m
142.27m
90m
1155m
450m
240m
50m
166.03m
480m
258.58m
n/a
173.34m
Financing Adaptation - Multilateral
Mechanisms
Current active multilateral mechanisms for financing
adaptation to climate change at the global level, including:
– Official Development Assistance (ODA),
– The United Nation Framework Convention on Climate
Change (UNFCCC) Special Climate Change Fund (SCCF),
– The UNFCCC Least Developed Countries Fund (LDCF),
– The UNFCCC Adaptation Fund,
– The World Bank’s Climate Investment Fund’s (CIFs) Pilot
Programme for Climate Resilience.
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FM- Official Development Assistance
• ODA is international public flows that aim to promote
development
• ODAs are grants or loans for developing countries
• ODA cannot simply be labeled as adaptation funding
• Climate Change can threaten development
• So climate change funding should be new and additional to
existing ODA
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FM- Global Environemntal Facility –
LDCF & SCCF
• Global Environment Facility (GEF) funds adaptation measures
through:
- The Least Developed Countries Fund (LDCF)
- The Special Climate Change Fund (SCCF)
• Both funds are voluntary & depending on contributions from
developed countries.
• LDCF was tasked with financing the preparation &
implementation of National Adaptation Programs of Action
(NAPAs).
• Currently a total of $605.84million pledged to LDCF and an
amount of $585.51million deposited.
• Only $13.23million dispersed by the LDCF.
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FM- Global Environemntal Facility –
LDCF & SCCF
• SCCF also has adaptation as its top priority.
• SCCF supports both long-term & short-term adaptation
activities in water resources management, land
management, agriculture, health, infrastructure
development, fragile ecosystems, including mountainous
ecosystems, and integrated coastal zone management64.
• Currently, there is $259.33million pledged to the SCCF,
with a total of $230.96 deposited.
• Only $111.13 dispersed by the SCCF.
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FM- Adaptation Fund
• The Adaptation Fund - established in 2001 - became
operational in Bali under the Kyoto Protocol
• It is largely separate & distinct from the GEF.
• finance concrete adaptation projects and programmes in
developing country Parties to the Kyoto Protocol
• AF is not dependent on contributions of funding from
developed countries or ODA and it is a 2% levy on CERs from
CDM.
• AF is pledged at $151.65million & a total of $134.57million
deposited.
• It is very small when compared to both LDCF & SCCF
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FM- Fast Start
• COP 2010, Cancun delivered the promise of balanced
allocation of ‘fast start’ finance between adaptation &
mitigation.
• Funding for adaptation is prioritized for least developed
countries, small-island developing States and Africa.
• A formal commitment by developed countries to collectively
provide resources approaching $30 billion for the period
2010 - 2012 to support developing countries’ climate efforts.
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FM- Scaled-up funding
• COP 18 in Doha offered agreement on scaled-up funding by
developed countries: estimated to be at $10 billion a year.
• COP 18 was a pivotal moment with respect to financing
climate change adaptation: as lot of uncertainty between
the end of the original fast start finance period, and the $100
billion commitment made in Copenhagen that begins in
2020.
• Developing countries were hoping for some certainty for the
interim period, but….
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FM- Green Climate Fund
• Green Climate Fund (GCF): A new multilateral funding for
adaptation
• Agreed $100 billion will be mobilized annually for both
mitigation and adaption activities by the year 2020
• Funds are to be new, additional to previous flows, adequate,
predictable, and sustained, and are to come from a wide
variety of sources, both public and private, bilateral and
multilateral, including alternative sources of finance.
• Design of the GCF was agreed upon in Durban (although
many structural elements are still undecided),
• Currently the GCF complements many of the existing
multilateral climate change funds and it may eventually
replace or subsume the other funds.
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FM- Climate Investment Fund (CIF)
• CIF - Four different funding windows
- Clean Technology Fund; - Forest Investment Programme
- Pilot Programme for Resilience; - Scaling up RE Programme
• Implemented by National Governments with the support of
MDBs in close collaboration with other development partners
including UN & bilateral agencies.
• PPCR programs need to build on NAPAs and use existing
adaptation funds
• Two Phases: Planning & Implementation
• A total of $1 billion in contributions to the PPCR, but there
has only been $8million actually dispersed
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FM- Climate Investment Fund (CIF)
• As of September 2011, 9 PPCR pilot countries: Bangladesh,
Bolivia (Plurinational State of), Cambodia, Mozambique,
Nepal, Niger, Tajikistan, Yemen, Zambia; as well as two
regional programs in the Caribbean: Dominica, Grenada,
Haiti, Jamaica, St. Lucia, St. Vincent and the Grenadines; and
South Pacific: Papua New Guinea, Samoa, Tonga.
• 11 SPCRs have been endorsed and are underway in
Bangladesh, Cambodia, Mozambique, Nepal, Niger, Tajikistan,
and Zambia as well as Grenada, St. Lucia and St. Vincent and
the Grenadines from the Caribbean and Samoa from the
South Pacific.
• All other countries and regions are in the process of finalizing
their SPCR design.
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Where the money is
2005-2025
Bottom-up Finance
for Resilience Initiative
launched at Resilient Cities 2011, Bonn
Call for inclusion of Local
Government in development of
funding/financing rules
Call for flexible finance of
performance upgrade projects
devloped bottom-up
Call for priority use of public funds
for capacity+institution building
for demand-driven market
Sources of Funds...
•
•
•
•
•
•
Own funds
Provincial/National
Tax &Levies
Loans, Municipal Bonds
PPP
Corporate Social
Responsibility
• Carbon Markets
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• What is still missing after COP18?
• Binding emission reductions
• Clarity on actions and definitions
• Clear governance structures for
international climate financing
• Clear definitions for implementation
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ICLEI‘s other initiatives....
• Cities Climate Registry (cCCR)
• Earth Hour City Challenge (EHCC) along
with WWF
• 40 cities climate adaptation activities
supported by Rockefeller Foundation
• GEB/PPP investments
• Small Grants Programme
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In conclusion...
• Need for a more funds through various financial mechanisms
• Call for for clarity in governance, financing architecture &
dispersion
• Governments needs to start working mainstreaming climate
& DRR to become factors in conventional planning
processes, project design and development decision making.
• Bottom-up planning process, technical and institutional
capacity building and procurement
• Financial institutions needs to learn integration of resilience
as a new design and project performance upgrading
• Governments start working with their own funds…
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Thank you
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