Transcript Why an I&FF assessment?

ASSESSING INVESTMENT & FINANCIAL FLOWS
FOR CLIMATE CHANGE: INTRODUCTION
Bay Gardens Hotel, 22 May 2009, Castries, St Lucia
PROJECT CONTEXT
Hernan Carlino, Argentina
Why consider climate change in planning
Why consider climate change in development planning
 Climate change impacts different sectors, cross-cutting
 If not addressed in long-term action, climate change
costs will be high
Countries may want to position themselves
 To ensure that the negotiation outcomes are coherent
with national interests & priorities
 To be able to participate in the mechanisms that will
be created
Project context
Importance of planning tools
 To identify national priorities
 To facilitate cooperation among different ministries
 To build strategies to deal with climate change
 To create a coherent base of information of climate
change impacts on and opportunities in key sectors
These points are addressed in the project
Why an I&FF assessment
Objective of this session
 Introduction to the project and its 3 stages
 Introducing the concept of I&FF assessments
 How to proceed: Workplan preparation
PROJECT STAGES
& SUPPORT
Bhujang Dharmaji, UNDP
Sequencing of national activities
Preparation stage
Pre-workshop
preparation
(2 months)
• Key line
ministries
engaged
• Key
sectors
identified
• National
issues
papers
prepared
National
workshop on
Bali Action
Plan,
national
issues
Implementation stage Reporting stage
Assessment of I&F flows to address CC
mitigation/adaptation options for up to 3
key economic sectors (6-8 months)
National workshop
on:
• Bali Action Plan
• Adaptation,
mitigation,
technology transfer,
financing +
LULUCF
• Key sectors
UNDP methodology
on assessing I&F
flows
Backstopping from
regional centres of
excellence
National
workshop to
present
results,
policy
options
• Update on
Bali Action
Plan
negotiations
• I&F flows
assessments
presented
• Post-2012
preparation
Preparation stage (1- 2 months)
Define & agree
 National objectives/goals
 Key sectors/scope
 I&FF team
 Capacities/needs: methods, information…
 Institutional arrangements
 On workplan/budget
 Available scenarios
Implementation stage (5 – 6 months)
Conduct I&FF assessment in key sectors selected by
the country using the UNDP I&FF methodology and
the sector specific guidance & reporting guidelines
Guidance & procedures for
 Documentation & archiving
 Spreadsheet management
 Quality control & quality assurance procedures
Reporting stage
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
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Ongoing activity, not starting at the end of the
assessment
Define outcome (decision making tool, policy tool),
target group (internal/external) to draft report
Ensure good drafter for preparation of report(s)
Purpose: documentation of steps and processes for
interpretation of outcomes & for later follow-up work
Guidance available + support provided
Support to the 3 stages of the project
 Work plan guidance
 Methodological guidance
 Reporting guidance
Regional Centres of Excellence
 Training on assessment of I&FF
 20 days of technical backstopping incl.
 Review of workplan, draft and final assessments
 Guidance on scenarios, data, approach
Guidance available + support provided
Knowledge platform
Public space
 Provides database of documents on climate change
 Provides information on the project
 Dynamic: Users can upload resources; results and
updates “pushed” to site visitors
Member space
 Faciliate sharing of experiences in groups (country
groups, thematic groups)
 Private access for national project activities
THE I&FF ASSESSMENT
Angel Menendez, ITDT
Definition I&FF and O&M
Investment Flow
 An investment flow (IF) is the capital cost of a new
physical asset with a life of more than 1 year
 Limited to new physical assets, because of climate
change implications for the duration of the operating
lives of the facilities & equipment purchased
Definition I&FF and O&M
Financial Flow
 A financial flow (FF) is an ongoing expenditure on
programmatic measures; financial flows encompass
expenditures other than those for expansion or
installation o few physical assets.
 Primarily ‘operation & maintenance’ (O&M) costs:
salaries, raw materials, equipment maintenance,
depreciation, utilities, rent, insurance, taxes etc.
Definition I&FF and O&M
Operation & Maintenance (O&M) costs of new
physical assets
 The physical assets purchased with investment flows
will have operation & maintenance (O&M) costs
associated with them
 Can vary considerably among investment flow types
& have a significant effect on the total cost of an
investment
Project goals & outcomes
Goals
 Development of national policy options to address
climate change in key sectors
 Increased capacity to co-ordinate negotiating positions
at national level & participate in the UNFCCC process
Outcomes
 National awareness raised
 Investment & financial flows assessed for key sectors
 Web-based knowledge platform populated
http://www.undpcc.org/
Why an I&FF assessment?
What questions does the I&FF assessment help
answer?
 What are the adaptation/mitigation options in
certain sectors in the next 25 years?
 Who is investing in the sector/major players &
sources?
 What shifts/increase in I&FF will be needed in the
sector?
 What will be the overall needs for additional I&FF?
IMPORTANT ISSUES
FOR WORKPLAN
DEVELOPMENT
Angel Menendez, ITDT
Define scope of the sector
How to scope a sector
 Determine specific subsectors that will be included
e.g. within agriculture: crop cultivation, livestock, fishing
…
Determine which processes, activities, entities and
geographic regions are included in the sector


Define scope of the sector
Potential sectoral overlaps
Water-borne
diseases
Health
Hydropower
GLOFs
Electricity
Water
Coastal zones
Tourism
Oil/gas
Energy
Forestry
Agriculture
Livestock
REDD
Mangroves
Biofuel
Transport
Food security
Bioenergy
Energy
plantations
Select analytical approach

Any of these analytical approaches can be used to
develop scenarios, & associated streams of annual
I&FF and O&M costs
 A suitable sectoral model
 A sectoral plan
 A projection of sectoral trends
 The current situation in the sector
 A combination of those approaches
Sources of information
Sources of information include
 National Communications (1st, 2nd)
 National strategies & plans
 System of National Accounts (SNA)
 Systems of integrated environmental and economic
accounts (SEEA)
 etc.
Scenarios
What is a scenario?
 An internally consistent & plausible characterization
of future conditions over a specified time period
 A baseline scenario reflects business-as-usual
conditions, describes what can occur without new
policies to address climate change
 A mitigation scenario incorporates measures to
mitigate GHG emissions
 A adaptation scenario incorporates new measures to
respond to the potential impacts of climate change
Team composition
Reporting
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Sectoral results are compiled so that mitigation/
adaptation investments for each source & investment
entity, & for each year, can be compared across
sectors & across mitigation/adaptation
“Reporting Guidelines for the Assessment of
Investment & Financial Flows to Address Climate
Change” contains spreadsheets for this
Define purpose & target group to prepare report
accordingly
NEXT STEPS
Bhujang Dharmaji, UNDP
Workplan development
Workplan
 Outlines clearly how the I&FF assessment will be done
during the following 6-8 months
 Defines clearly
 The scope of the sector
 Data needs, availability and gaps
 Proposes the organisational framework how the
assessment will be done
I&FF training
The I&FF training
 Is a technical training for the country teams of each
selected key sector
 Will be conducted by the Regional Centre (PASS,
ITDT, TERI, Oxford Consultant)
 Will provide hands-on training how to conduct the
I&FF training in the selected national key sectors
through the sector teams
Steps in the
Sectoral
Assessments of
I&FF to Address
Climate Change
?
Q&A
CLARIFICATIONS
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