Climate change and development cooperation
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Climate change and development cooperation. Joyeeta Gupta. Messages. Development and climate change are closely linked; However, the politics in both arenas are highly charged on a North-South basis;

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Climate change and development cooperation

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Messages
Messages

  • Development and climate change are closely linked;

  • However, the politics in both arenas are highly charged on a North-South basis;

  • Linking climate change to development cooperation is possible, but mainstreaming is a problem.


Climate change and development

Mitigation

Development generally coupled with increased emissions; wise policy can change that especially in sectors that are less productive and less efficient. Beyond that there are trade-offs

Mitigation can have ancillary benefits for development

Climate change and development




Development cooperation

The Right to Development:

Accepted but under-emphasized

The 0.7 percent target:

Accepted, emphasized but not achieved

The link between the right to development and the 0.7 percent target:

Contested

The MDGs and development cooperation:

New emphasis on achieving MDGs; but resources have to double if these are to be achieved.

Development cooperation


Development and development cooperation

Donors have had multiple objectives;

Delivery was often based on simple theoretical formulae

Aid recipient do not respond in predictable manners (e.g. conditionality);

Aid evaluation through quantitative indicators is questionable

Aid coordination has been donor driven.

Development and development cooperation


Challenges in the aid process

Donor recipient process

Donor:

decision-making,

instrumental,

planned

Partner:

Poor governance

Substitution effect

Policy substitution

Mismatch between priorities and partners

Poor diagnosis

Technical assistance

Administrative burden

Challenges in the aid process


Development and development cooperation1

Lessons from aid:

Goal: broaden objective

Nature of aid: Not necessarily catalytic

Indicators: not just macro, but also micro

Aid aligned to country type

Aid should be demand driven and not lead to distortions: Not conditional

Form of assistance should match need

Aid to NGOs subject to caveats

Quantity of aid: avoid dependency

Balanced aid: poor and other sectors

Donors need to take partnership seriously

Development and Development Cooperation


Development and development cooperation2

Lessons from aid:

Goal: broaden objective

Nature of aid: Not necessarily catalytic

Indicators: not just macro, but also micro

Aid aligned to country type

Aid should be demand driven and not lead to distortions: Not conditional

Form of assistance should match need

Aid to NGOs subject to caveats

Quantity of aid: avoid dependency

Balanced aid: poor and other sectors

Donors need to take partnership seriously

Development and Development Cooperation



Climate change classical north south issue

Formal divisions in Convention that both recognizes differences and fosters differences

Structural differences:

In emission levels between average Northern and average Southern country especially in the past – and this is the most serious determining factor for climate impacts until 2050.

If emission levels are to be kept within safe levels – the world budget for the 21st century is over by 2032.

Impacts more severe in the South – both location wise; and because vulnerability is the greatest.

Climate change: Classical North-South issue


Climate change the north south deal

Leadership differences and fosters differences

paradigm

Conditional

leadership

N

CEITS

JSCaNZ

N

S

EU

S

US

Pollution

Leadership sans US

S

Development

Climate change: The North-South deal

EU

US

S

Inverted U-curve may

be a zig-zag curve

Leadership competition

US

N mainstreams cc help in development cooperation

N helps S via CDM


The context of the north south deal

1992: North reduces emissions and helps developing countries (tech transfer and aid) with new and additional resources (above existing aid)

1997: North reduces emissions partly via help to developing countries (new and additional?)

1997: Adaptation funding comes from a tax on North-South cooperation

2007: North reduces emissions partly via help and climate change is mainstreamed in ODA

The context of the North-South deal


Cdm and oda
CDM and ODA (tech transfer and aid) with new and additional resources (above existing aid)

Ideological level

Organization level

  • ODA

  • subsidizes

  • market mech.

  • ODA levels

  • below 0.7%;

  • + ODA helps

  • cap. building

  • esp. in poorest

  • countries;

  • ODA diverted

  • from DC

  • priorities to

  • help IC

  • purchases

Project level

  • + ODA leverages

  • SD; synergy

  • ODA diverted


Cdm and sd an illusion

An illusion (tech transfer and aid) with new and additional resources (above existing aid)

When SD is dependent on host country approval and there is competition between host countries;

When contract success is not based on achievement of the SD component;

When SD component is not verified:

When IC buy CERs without checking SD component;

When SD component is vague and all-encompassing

CDM and SD: An Illusion?


Climate change regime paradigm shift

1990s (tech transfer and aid) with new and additional resources (above existing aid)

Abstract

Global

Future issue

Economic and technical issue

Climate Change Regime: Paradigm Shift


Policy evolution towards mainstreaming

Development (tech transfer and aid) with new and additional resources (above existing aid)

2002: Donor report

2005: Gleneagles plan

2005: EU

2006: World Bank- CEIDF

2007: OECD Declaration

Policy evolution towards mainstreaming


Mainstreaming driving converging forces
Mainstreaming: Driving Converging Forces (tech transfer and aid) with new and additional resources (above existing aid)

Aid

agencies

EU

Devp.

Banks

DCs

Mainstreaming CC

In devp. coop

Acade

mics

OECD

NGOs

UNDAF


Mainstreaming defined

“Mainstreaming of climate change into development cooperation is the process by which existing development processes are redesigned and reorganized, improved, developed and evaluated from the perspective of climate change mitigation and adaptation. Mainstreaming implies involving all social actors – government, civil society, industry, local communities - into the process. Mainstreaming calls for changes in policy as far upstream as possible.”

Mainstreaming defined


From ad hoc approaches to mainstreaming
From Ad hoc approaches to mainstreaming cooperation is the process by which existing development processes are redesigned and reorganized, improved, developed and evaluated from the perspective of climate change mitigation and adaptation. Mainstreaming implies involving all social actors – government, civil society, industry, local communities - into the process. Mainstreaming calls for changes in policy as far upstream as possible.”

Politically

Easy Difficult

----------------------------------------------------

Climate change ignored

Development

agenda

Climate change taken into account

Climate change taken into account

Ad hoc

projects

Focus on

win win

Climate

proofing

Inte-gration

Main-streaming

Ad hoc -------------------------------------------------- full

From ad approaches to mainstreaming


Climate change and international cooperation

International cooperation is needed to help developing countries:

Adopt modern technologies and policies to avoid taking the past emission route of the North;

Adopt measures that will enhance the ability of the South to adapt to the impacts of climate change

International cooperation includes:

Climate cooperation

Development cooperation

Climate change and international cooperation


Practical arguments in favour of mainstreaming cc in aid

Efficiency of use of development resources enhanced since climate change affects development and development affects climate change

There is aid fatigue and no extra money is politically very feasible

Money is clearly needed for climate change and it is more easily justified to spend developed countries on climate change than on development per se

Transaction costs lower if mainstreamed

Practical arguments in favour of mainstreaming cc in aid


The link between development paradigms and development aid
The link between development paradigms and development aid climate change affects development and development affects climate change


The link between development paradigms and development aid1

1 climate change affects development and development affects climate change

1

2

3

The link between development paradigms and development aid


Resources needed
Resources needed climate change affects development and development affects climate change


Political sensitivities

Development cooperation climate change affects development and development affects climate change

Climate assistance

1.0% of GNI

Time

0.7% of GNI

Actual assistance

Expectations/ needs

Actual climate assistance

Mainstreaming

Political sensitivities


Diverging beneficiaries of assistance

Rich climate change affects development and development affects climate change

Poor

Development

cooperation

Climate

Mitigation

Climate

Adaptation

Diverging beneficiaries of assistance


Mainstreaming the stages of mainstreaming
Mainstreaming: the stages of mainstreaming climate change affects development and development affects climate change

Politically

Easy Difficult

----------------------------------------------------

Climate change ignored

PL IT DK, NL UK

Development

agenda

US aid

OECD

EU

Climate change taken into account

Climate change taken into account

Ad hoc

projects

Focus on

win win

Climate

proofing

Inte-gration

Main-streaming

Ad hoc -------------------------------------------------- full

The stages of mainstreaming


Conclusion 1

Mainstreaming of climate change in development cooperation does not make sense; it will lead to a diversion of resources. However, mainstreaming of climate change in development does make sense!

Instead, a search for win win options, climate proofing and climate integration make more sense in relation to development cooperation. This is not the case for development.

Conclusion - 1


Conclusion 2 if mainstreaming is inevitable
Conclusion – 2: If Mainstreaming is inevitable …. does not make sense; it will lead to a diversion of resources. However, mainstreaming of climate change in development does make sense!


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