Transcript GEF Funding for Climate Change

CLIMTRAIN Workshop:
‘GEF Funding for Climate Change’
IFAD HQ – Rome July 24-25
Bonizella Biagini
Cluster Coordinator for Climate Change Adaptation
Global Environment Facility
Estimated supply and demand for mitigation and adaptation
funding in developing countries – a brief overview
ADAPTATION
MITIGATION
DEMAND
 UNFCCC estimate: $200-210
billion by 2030
DEMAND

World Bank estimate: $10-40
billion/year

Oxfam: $50 billion/year and ‘far
higher if greenhouse-gas
emissions are not cut rapidly’
SUPPLY
 $3.3 billion allocated to
mitigation projects in GEF
since 1991
 World Bank Clean Investment
Funds and other donors’
initiatives
SUPPLY



SPA, SCCF and LDCF: $295
million over the last 5 years
AF: $80-300 million/year (20082012)
World Bank Clean Investment
Funds and other donors’ initiatives
CLIMATE CHANGE
Strategic Programs - Mitigation $1 billion/ 4years
 Energy Efficiency
> Promoting energy efficiency in residential and commercial
buildings
> Promote energy efficiency in industrial sector
 Renewable Energy
> Promote market approaches for renewable resources
> Promote sustainable energy from biomass
 Sustainable Transport
> Promote sustainable, innovative systems for urban transport
 LULUCF
> Manage land-use, land-use change and forestry to protect
carbon stocks and reduce GHG emissions
Examples of LULUCF and Biomass Projects
 Village-Based Management of Woody Savanna and the
Establishment of Woodlots for Carbon Sequestration
 Global: Alternatives to Slash and Burn Agriculture (II)
 Global: Alternatives to Slash and Burn
 Iran: Carbon Sequestration in the Desertified
Rangelands of Hossien Abad, South Khorasan, through
Community-based Management
 Sudan: Community Based Rangeland Rehabilitation for
Carbon Sequestration
 Belarus: Biomass Energy for heating and Hot Water
Supply
 Peru: Biofuels and non-wood cellulose fiber from
agriculture residues/waste
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: $90M
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 May 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)

18 Approved projects – Total $47 million

Remaining $3 million is being programmed – once portfolio is completed the
SPA will be reviewed and potentially replenished by the GEF Council.

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 May 2008, 32 NAPAs have been completed, and
10 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 $3.7 million pr. country.
Least Developed Countries Fund (LDCF)
Least Developed Countries Fund (LDCF)
LDCF - Committed funds - Regional distribution
By funding
Pacific
8%
Asia
32%
LDCF - Commited funds - Sectoral distribution By funding
Disaster
manageCoastal
ment
Management 13%
8%
Water
management
33%
AFR
60%
Agriculture/
food security
46%
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: $90 million.
Demand greatly exceeds available funding, forcing a
temporary freeze for new SCCF projects.
As of May 2008, 10 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 - Committed funds - Regional distribution
By funding
SCCF - Commited funds - Sectoral distribution - By
funding
Coastal
Managem ent
Asia
12%
17%
AFR
42%
LAC
58%
Agriculture/
food security
Water
m anagem ent
32%
56%
Features of Climate Change 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 Climate Change 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 Climate Change 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 Climate Change Funds
Co-financing
 Co-financing: The full cost of adaptation is always covered by
GEF/LDCF/SCCF. ‘Co-financing’ may therefore be better termed
‘baseline financing’ for the adaptation cost to be covered by
GEF/LDCF/SCCF.
 Co-financing refers solely to funding already present in the recipient
countries in the form of development projects, national investments
etc, no additional funds need to be raised for the purpose of
adaptation.
 Stand alone adaptation financing can be acceptable. 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.
Bhutan:
Reduce CC-induced Risks and Vulnerabilities from Glacial Lake
Outbursts in the Punakha-Wangdi and Chamkar Valleys (LDCF)
LDCF/GEF amount: $3.64M
CC Vulnerabilities:
 Glacial lakes reaches critical threshold as
Himalayan glaciers melt  massive
flashfloods in river valleys
↓
Adaptation Actions:
 Increase disaster risk management
capacity in affected valleys
 Artificial lowering of water level in glacial
lakes
 Creation of an Early Warning System for
glacial flashfloods
↓
Outcomes:
 Decreased risk of massive destruction
from glacial flash floods
 Limitation of human and economic loss
if/when catastrophic flash floods occur
Malawi:
Climate Adaptation from Rural Livelihoods and Agriculture
(LDCF)
LDCF/GEF amount:: $3.00 million
CC Vulnerabilities:
 Drought and rainfall variability will pose
risks to the agricultural sector and food
security
↓
Adaptation Actions:
 Targeted adaptation pilots including
• Crop diversification
• Improved cropping sequences
• Conservation tillage
• Irrigation and efficient water use
• Food storage
 Creation of an enabling environment for
Climate Risk Management
• Policy development and
implementation
• Institutional coordination
• Generation of knowledge and
awareness raising
↓
Outcomes:
 Increased food security and sustainable
agricultural development
Cambodia:
Building Capacities to Integrate Water Resources Planning in
Agricultural Development (LDCF)
LDCF/GEF $1.85M
CC Vulnerabilities:
 Increased drought and/or flooding poses
risk to agricultural sector and food
security
↓
Adaptation Actions:
 Training of ‘adaptation experts’ in
agricultural extension teams a
 Implementation of pilot projects in local
communities
• Rainwater harvesting techniques
• Measures to decrease soil erosion
and preserve genetic diversity in rice
agriculture
• Changed design of reservoirs and
irrigation channels to prevent risks
from increased peak flows
 Lessons learned disseminated to national
and international levels
↓
Outcomes:
 Increased food security and sustainable
agricultural development
 Reduced risks of climate induced
disasters
Regional (Government of the Cook Islands, Federated States
of Micronesia, Fiji, Nauru, Niue, Papua New Guinea, Samoa, Solomon Islands,
Tonga, Tuvalu and Vanuatu, Marshall Islands, Palau:
Pacific Adaptation to Climate Change (SCCF)
SCCF/GEF amount:: $13.125M
CC Vulnerability
 Decreased water availability
 Decreased food production
 Loss of land and coastal infrastructure
↓
Adaptation Actions
 Raising of awareness and capacity for
climate change risks at all levels.
 Locally relevant pilot measures
including:
• Innovative farming and water
management techniques
• Introduction of new crops better
suited to changed climate
conditions
• Installation of breakwater at
important harbors
• Climate proofing of existing roads
↓
Outcomes:
 Negative effects of climate change on
local livelihoods and economy
minimized.
Adaptation Fund
 AF was established in 2001 at COP7 under the
Kyoto Protocol
 The AF will support concrete adaptation projects
in developing countries that are Parties to the
KP
 To be funded by the 2% of the proceeds of the
Clean Development Mechanism (CDM) and by
voluntary contributions
Adaptation Fund
 The AF has innovative features including:
• An independent governing Body (AFB) where
the majority of the members are
representatives from developing countries
• The majority of financial resources come from
two percent of the proceeds of the CERs of
CDM projects
• Parties can access resources directly from the
fund or trough implementing agencies
Adaptation Fund: the way forward
• Details regarding priority sectors, eligibility criteria and
administrative processing of AF projects, will be
determined during upcoming Adaptation Fund Board
meetings (June and November 2008).
• GEF was selected as interim secretariat
• WB as interim trustee
• Two meetings have been held so far
• UNFCCC estimate of available funding for period
2008-2012: $80-300 million/year
Thank you
THANK YOU FOR YOUR ATTENTION!
GEF Adaptation-related papers:
www.thegef.org
GEF projects database:
www.gefonline.org