Transcript Status of Adaptation Funds

GEF Funding for Adaptation
to Climate Change
Sub-Regional Workshop for GEF Focal Points in Asia
Bangkok, Thailand
7-8 April 2009
Background on the GEF and Adaptation
Four funding sources for Adaptation under the GEF
GEF Assistance to
Address Adaptation
GEF Trust
Fund
GEF Trust Fund
Strategic Priority
on Adaptation
(SPA)
adaptation action
with GEBs
Total: $50M
UNFCCC climate
change funds
Kyoto
Adaptation Fund
Least Developed
Country Fund
(LDCF)
(implementation
of NAPAs)
Special Climate
Change Fund
(SCCF)
Top priority to
Adaptation
Adaptation Fund
(AF)
Adaptation in KP
developing I
parties
NO GLOBAL BENEFITS
NO GLOBAL BENEFITS
NO GLOBAL BENEFITS
Total: $180M
Total: $100M
Estimate $80-300
million/year
“Piloting an Operational Approach to Adaptation”
(SPA)
SPA Projects should: “Show how adaptation planning
and assessment can be practically translated into
projects that provide real benefits”.
• SPA Projects should primarily target Global
Environmental Benefits under the GEF focal areas,
whereas the other GEF administered fonds have
development as their primary focus.
• $50 million allocation  as of October 2008 all funds
have been allocated  following an internal evaluation of
the pilot, the program will evolve.
• A total of 21 adaptation projects have been approved for
support through the SPA.
“Piloting an Operational Approach to Adaptation”
(SPA)
 23 Approved projects – Total $50 million
 Once pilot is completed the SPA will be reviewed and potentially
replenished by the GEF Council decision.
 Primarily targets Africa, South/Southeast Asia and Latin America, but
also a few projects in Central and Eastern Europe.
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%
Least Developed Countries Fund (LDCF)
LDCF projects support the implementation of National
Adaptation Plans of Action (NAPAs) which
identifies ‘urgent and immediate adaptation needs’
in each LDC.
•
•
•
The LDCF has so far supported the preparation of
NAPAs in 47 LDCs and will also support implementation
of priority actions identified in completed NAPAs.
As of October 2008, 38 NAPAs have been completed,
and 25 implementation projects have been approved for
LDCF funding.
Existing resources, including new pledges: $180 million
 applying a principle of equal access this translates into
roughly $4 million pr. country.
Least Developed Countries Fund (LDCF)
Least Developed Countries Fund (LDCF)
LDCF - Commited funds - Sectoral distribution By funding
Disaster
manageCoastal ment
Management 13%
8%
Pacific
8%
Water
management
33%
Agriculture/
food security
46%
LDCF - Committed funds - Regional distribution
By funding
Asia
32%
AFR
60%
Special Climate Change Fund (SCCF)
- Top priority under UNFCCC decision = (a) adaptation
SCCF adaptation projects support the implementation
of adaptation actions in non-annex I parties.
•
•
•
•
Priority areas: water, land management, agriculture,
health, infrastructure development, fragile ecosystems,
integrated coastal zone management, disaster risk
management and prevention
Total resources under the SCCF program for adaptation,
including new pledges: $100 million.
Demand greatly exceeds available funding, forcing a
temporary freeze for new SCCF projects.
As of October 2008, 15 projects have been approved for
support under the SCCF. Future funding opportunities
depend on donor contribution.
Special Climate Change Fund (SCCF)
- Top priority under UNFCCC decision = (a) adaptation
Special Climate Change Fund (SCCF)
SCCF - Commited funds - Sectoral distribution - By
funding
SCCF - Committed funds - Regional distribution
By funding
Coastal
Managem ent
Asia
12%
17%
AFR
42%
Agriculture/
food security
Water
m anagem ent
LAC
32%
56%
58%
Adaptation Fund (AF)
AF will support adaptation projects in developing
countries.
• Details regarding priority sectors, eligibility criteria and
administrative processing of AF projects, will be determined
during upcoming Adaptation Fund Board meetings.
• Unlike the other GEF administered funds for adaptation, eligible
countries will be able to access funds directly without having to
go through an implementing agency.
• To be funded by 2% levy on Clean Development Mechanism
(CDM) projects and voluntary donor contributions.
• UNFCCC estimate of available funding for period 2008-2012:
$80-300 million/year.
Features of Adaptation Funds
GEF TRUST FUND:
(SPA)
UNFCCC FUNDS:
(LDCF & SCCF)









Incremental cost
Global benefits
RAF
Co-financing
Additional cost
Sliding scale (optional)
NO RAF
NO Global benefits
Different approach to
co-financing
Features of Adaptation Funds
Additional costs/Sliding Scale
 Additional Cost - Definition: the costs imposed on vulnerable
countries to meet their immediate adaptation needs (Decision
3/CP.11)
The additional 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)
 The LDCF will finance only the additional costs imposed on
vulnerable LDC countries to meet their (urgent and immediate)
adaptation needs, as identified by their NAPAs.
Features of Adaptation Funds
Additional costs/Sliding Scale
 Sliding Scale: An OPTION introduced to simplify the
determination of additional costs, especially for smaller projects.
 Instead of determining additional costs through a complete
baseline/alternative scenario analysis, additional costs are
estimated as a percentage of total project funding request, with
the LDCF/SCCF funding a proportionately larger share of
smaller projects, and a smaller share of larger projects (with the
remaining funding to be leveraged in co-financing). E.g. under
the SCCF the steps are: <$1mil – GEF 50%, $1mil-$5mil – GEF
33%, >$5mil – GEF 25%.
Features of Adaptation Funds
Co-financing
 Co-financing:The full cost of adaptation is always covered by
GEF/LDCF/SCCF. ‘Co-financing’ may therefore be better termed
‘existing (baseline) financing’ for the additional cost to be covered by
GEF/LDCF/SCCF.
 Co-financing refers solely to funding already present in the recipient
countries in the form of existing multilateral development financing,
national investments etc, no additional funds need to be raised for
the purpose of adaptation.
 Stand alone adaptation financing (full cost) is also accepted. In
practice, however, this will be very rare, as most LDCF/SCCF
projects and activities are usually based in a context of human and
socioeconomic development with an added element of CC
adaptation.
THANK YOU FOR YOUR ATTENTION!
GEF Adaptation-related papers:
www.thegef.org
GEF projects database:
www.gefonline.org