Transcript GEF Funding for Adaptation to Climate Change

GEF Funding for Adaptation to Climate
Change
By: Lars Christiansen
Program Assistant - Climate Change Adaptation
Global Environment Facility (GEF)
Prepared for REC workshop: ‘Adaptation to the Consequences of the Climate
Change: progress achieved and capacity building needed’
Outline of presentation
1. Background on the GEF and Adaptation
2. Relevant funding sources for the region: SPA and SCCF
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Priority areas
Current status and funds available
(Examples of projects)
3. How to apply for GEF funding
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From project idea to implementation – brief overview of the GEF
project cycle
Key modalities for SPA and the new funds
4. GEF experience with adaptation and challenges to come
5. Questions
Background on the GEF and Adaptation
 The Global Environment Facility (GEF) was established in the early
1990s to provide new and additional financing for projects and
programs that would address development needs and at the same
time would protect the global environment.
 As the financial mechanism of the UNFCCC, the GEF has been
working under convention guidance to implement COP decisions on
adaptation.
 Initial guidance (COP 1, COP4) focused on Enabling Activities
such as funds for V&A assessments and capacity building for
preparation of national communications.
 Recent guidance (COP 7 ) has emphasized implementation –
leading to the establishment of the strategic priority for adaptation
under the GEF trust fund, and two newly established funds (SCCF
and LDCF) operated separately from the GEF Trust Fund.
Background on the GEF and Adaptation

General approach: The GEF supports interventions that increase resilience
to the adverse impacts of climate change on vulnerable countries, sectors,
and communities
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The underlying thought behind GEF’s approach is that the adverse impacts of
climate change impose an additional cost on vulnerable countries to meet
their development goals  GEF supplies the funding to overcome this
additional cost.
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Total funds made available for Adaptation - $275 M (total pledges)
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Adaptation – a suite of complementary Funds
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Strategic Priority on Adaptation (SPA) – (GEF Trust Fund)
•
Least Developed Countries’ Fund (LDCF) – (UNFCCC)
•
Special Climate Change Fund (SCCF) – (UNFCCC)
Under Discussion
•
Adaptation Fund of the Kyoto Protocol
Background on the GEF and Adaptation
Three funding sources for Adaptation under the GEF
GEF Assistance to
Address Adaptation
GEF Trust Fund
Strategic Priority
Piloting an
Operational
Approach to
Adaptation (SPA)
Least Developed
Country Fund
(LDCF)
(implementation
of NAPAs)
Special Climate
Change Fund
(SCCF)
Top priority to
Adaptation
NO GLOBAL BENEFITS
NO GLOBAL BENEFITS
Total: $50M
Total: $165M
Total: $57M
Remaining: $4M
Remaining: $135M
Remaining: $0M
Background on the GEF and Adaptation
SPA
SCCF
LDCF
Priority
GEBs
Human development
Human Development
Amount of
adaptation costs
paid by fund
Full cost
Full Cost
Full Cost
Eligibility
All UNFCCC parties
eligible for GEF funding
All non Annex I UNFCCC
parties
LDCs who are also
UNFCCC parties
Supreme body
GEF council
SCCF/LDCF council
SCCF/LDCF council
Replenishment
One time (to be
evaluated by council at
completion)
Rolling (by donors)
Rolling (by donors)
Funds available for
adaptation activities
(still to allocated).
$50 million ($4 million)
$57 million ($0 million)
$165 million ($130
million)
“Piloting an Operational Approach to Adaptation”
(SPA)
The SPA was established as a strategic priority under the GEF
Trust Fund as response to guidance from UNFCCC at
COP7.
$50 million initial allocation, currently $46 million have been
committed to projects => after an evaluation of the pilot the
program will evolve/be replenished.
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Primary focus must be on the protection of Global
Environmental benefits in the GEF focal areas
(Biodiversity, CC mitigation, Land Degradation, International
Waters and POPs)  Typically mainstreaming of adaptation
into existing (GEF) development/environment project.
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Must include on-the-ground pilot adaptation actions (as
opposed to pure capacity building and/or studies)
“Piloting an Operational Approach to Adaptation”
(SPA)
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18 Approved projects – Total $46 million
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More projects are approaching – likely that portfolio will be completed late
2007, early 2008.
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Primarily targets Africa, South/Southeast Asia and Latin America, but also a
few projects in Central and Eastern Europe (Hungary, Albania and Armenia)
SPA - Commited projects - by region
SPA Commited Projects - by sector
Climate
Change
1%
MENA
12%
GLO
14%
ECA
7%
AFR
18%
Asia
21%
LAC
28%
Cross
Sectoral
13%
International
Waters
12%
Land
Degradation
34%
Biodiversity
40%
SPA – Examples of projects in Central and Eastern Europe
ALBANIA: Drini-Mati River Delta
CC Vulnerabilities:
 More frequent and longer flooding
events in coastal zone  severe
stress on unique biodiversity
depending on the delta ecosystem.
↓
Adaptation Actions:
 Development of monitoring and
forecasting capacity
 Mainstreaming of adaptation concerns
into conservation and development
plans, programs and policies (e.g. the
plan to expand the protected area).
 A suite of pilot adaptation actions to
promote learning and upscaling (to be
identified).
↓
Outcomes:
 Adaptation concerns are integrated
into all coming conservation and
development efforts in the DMRD, thus
increasing the CC resilience of a key
global ecosystem
SPA – Examples of projects in Central and Eastern Europe
HUNGARY: Lake Balaton
CC Vulnerabilities:

Negative water balance leading to falling
water level in shallow lake. Complex
causes, but CC thought to be important
contributor.
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Unique biodiversity as well as agricultural
and tourism economies under pressure.
↓
Adaptation Actions:
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Capacity building to increase
understanding of watershed and lake
processes in response to climate change
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Strengthened organizational and
individual capacities for interpreting and
addressing approaching CC
vulnerabilities
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Adaptation mainstreamed into all policies
and planning for the lake area
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A suite of local pilot activities to facilitate
learning and replication.
↓
Outcomes:
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A better understanding of the Lake
Balaton system in relation to CC
(ecological and socio economic aspects)
, and how to effectively implement policymaking and adaptation measures in this
context.  Decreased CC vulnerability of
ecosystems and local economies
Special Climate Change Fund (SCCF)
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The SCCF was created as a special fund under the
UNFCCC, administered by the GEF, but separately from the
GEF Trust Fund.
(a) top priority: adaptation
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Targets human development in the following priority
areas: Water, land management, agriculture, health,
infrastructure development, fragile ecosystems,
integrated coastal zone management, disaster risk
management and prevention
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Total resources for adaptation, including new pledges:
$57 million
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All resources have been programmed
Special Climate Change Fund (SCCF)
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10 projects approved or under approval – Total $48 million
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Pipeline currently holds some $65 million worth of additional projects, and due to lacking
replenishment the pipeline is currently closed for new submissions. As soon as funds
become available the pipeline will reopen.
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All non-annex I countries are eligible, but funding has this far primarily been directed to
low income countries in Africa, Asia and Latin America. No current projects in Central
and Eastern Europe although several countries would be eligible.
SCCF - Commited projects - by region
Asia
17%
LAC
48%
SCCF - Commited projects - by sector
Coastal
Managem ent
12%
AFR
35%
Agriculture/
Water
food security
m anagem ent
32%
56%
How to apply for funding through the SPA/SCCF
 The GEF Trust Fund and SCCF/LDCF works with 10 implementing
GEF agencies: AfDB, ADB, EBRD, FAO, IDB, IFAD, UNDP, UNEP,
UNIDO and WB.
 Projects must be submitted through GEF agencies.
 For Medium Sized Projects (< $2 million), projects are submitted
and approved on a rolling basis.
 For Full sized projects (> $2 million), projects are submitted in
certain windows every 3 months for inclusion in a work program
approved by the GEF council.
 The GEF Secretariat reviews proposals on a rolling basis, and
usually makes a decision within 10 days of receiving proposals.
From project idea to implementation
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Formulation of project idea – What is it that needs to be done differently because of
global warming, and how do we go about doing it??
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Consultation with GEF agency
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Submission of PIF (3-4 pages briefly describing the project idea, structure and
outcomes of the proposed project)
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GEF secretariat reviews PIF, and ensures that project conforms to the criteria of the
fund
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Project is approved by the GEF CEO and Council
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(Optional submission of request for project preparation funding)
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Submission of final project document
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GEF secretariat reviews final project document, and ensures that project conforms to
criteria of fund and lives up to GEF fiduciary standards.
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Project is endorsed by GEF CEO and Council
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Implementation starts
Modalities for SPA and new funds
GEF TRUST FUND: (SPA)
New FUNDS:
(LDCF & SCCF)
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Incremental cost
Global benefits
RAF (but not in SPA!)
Co-financing
FULL COST: Existing
development financing
(resources already present
in the country) can be used
as co-financing
Additional cost
Sliding scale (optional)
NO RAF
NO Global benefits
Stand alone activities are
possible (but rare)
 FULL COST: Existing
development financing
(resources already present
in the country) can be used
as co-financing
Additional/incremental costs approach
The additional/incremental cost approach includes:
 A baseline scenario => what development activities would be
undertaken also in absence of cc (baseline costs)
 An adaptation scenario => which includes additional activities to be
implemented to address the adverse impacts of climate change in
the vulnerable sector selected for the project (baseline costs +
additional costs)
 Eligible funding = Adaptation scenario costs – baseline scenario
costs
 For the SCCF a sliding scale may be used to simplify the
determination of additional costs
Adaptation – some experiences from GEF
 How to estimate the costs of adaptation? Additional costs sounds
simple on paper, but is anything but simple in a complicated reality.
 The challenge is not so much how to improve the quality and funding
for individual adaptation projects, but rather how to mainstream
adaptation concerns into general development and policymaking.
 More information, data and experiences are definitely needed…but
many existing good practices and local knowledge to cope with
current climate stresses already exists
=> there is enough knowledge and expertise on the ground to start
implementing adaptation!
THANK YOU FOR YOUR ATTENTION!
GEF Adaptation-related papers:
www.thegef.org
GEF projects database:
www.gefonline.org