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Deserts. Disasters. Health. Agriculture. Institutional Arrangements for Adaptation Fund: World Bank view. Biotic resources. Coastal. Oceans. Steve Gorman Global Environment Operations World Bank. Adaptation Agenda. Adaptation and Mitigation are strong complements

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Institutional arrangements for adaptation fund world bank view l.jpg

Deserts

Disasters

Health

Agriculture

Institutional Arrangements for Adaptation Fund: World Bank view

Biotic resources

Coastal

Oceans

Steve Gorman

Global Environment Operations

World Bank


Adaptation agenda l.jpg
Adaptation Agenda

  • Adaptation and Mitigation are strong complements

  • Climate change impacts on developing countries are expected to increase regardless of mitigation efforts

  • Demand for infrastructure and agricultural/water investments that further need to adapt to climate

  • Adaptation links global environment issues with local development paths

  • Development investment is at risk in the absence of consideration of climate variability and climate change issues

  • The Multilateral financial institutions can effectively link the lending and adaptation agenda to produce synergies

  • Expected growth of adaptation agenda within UNFCCC

  • Need to strengthen national and local institutions to promote adaptation

  • Need for long-term funding arrangements to support adaptation agenda


Adaptation and development as part of world bank poverty agenda l.jpg
Adaptation and Development as part of World Bank Poverty Agenda

  • According to OECD Study, 20% to 50% of ODA is subject to climate risk

  • Whatever the mitigation efforts, we are already committed to significant climate change

  • Current climate variability and climate change are significant threats to development

Climate disasters are already a major burden for developing countries


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Climate Variability is Major Impediment to Development

Ethiopia

A water rich developing country, but with GDP tied to annual rainfall variations. Therefore adaptation and growth & development are closely linked

25

20

15

10

5

0

0

%

-5

-20

1992

1987

1990

1997

1998

2000

1989

1993

1995

1988

1991

1994

1996

1999

1982

1984

1985

1983

1986

-10

-15

-40

rainfall variability

-20

-60

GDP growth

-25

Ag GDP growth

-80

-30

year

Preliminary results from :A Country Water Resources Assistance Strategy for Ethiopia


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World Bank and IADB Portfolio Study:vulnerability to climate change

World Bank IADB

  • Average no. of projects each year 440 91

  • Average size of annual financing portfolio $ 20 B $ 6.6 B

  • % of projects with moderately sensitive components 40% 27%

  • % of projects with highly sensitive components 25% 11%

  • Estimated annual expenditure at risk $ 5.3 B $ 1.2 B

  • (Level 2 & 3 impacts) (21 – 34 %) (8 – 33 %)


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World Bank’s Implementation of Adaptation Agenda

  • Mainstreaming adaptation initiatives in country assistance strategies

  • Financing and technical support to adaptation programs outlined in poverty reduction strategies

  • Adaptation is a majorconsideration in development policy lending and sector wide adjustment programs

  • Anticipatory adaptation is a major component of World Bank Hazard Management Program

  • Bank support to private sector development, microfinance, insurance, and small and medium enterprises to promote adaptation at local level

  • Engagement of line ministries at the policy level to promote adaptation agenda

  • Analytical activities supporting adaptation in Bank policy and lending programs


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World Bank Experience in Global Funds that Complement Adaptation Fund

  • More than 30 years experience in managing trust funds on global programs

  • Currently manages over 850 trust funds valued at over $9 billion yearly covering all major sectors with over 25 which Adaptation Fund overlaps


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Co-financing Complements Adaptation FundAdaptation Fund

Trustee

GEF TF/

SCCF/LCDF

Investment

Lending

As GEF

Implementing

Agency

Technical

Support

To GEF

Development

Policy

Lending

World Bank Lending/

Co-financing

Adaptation

Fund

Global

programs

& Trust Funds

Support to

GEF

Secretariat

Market

Mechanisms-

Carbon Finance/

Insurance

Facility

Emergency

Lending

for

Hazards


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Trustee Adaptation Fund

World Bank

GEF

Council

GEF Secretariat

Strategy/

Business Plan

Agencies

IAs / EAs

UNFCCC Share of Proceeds

Country Coordinating Mechanisms for Adaptation Projects and Programs

(GEF Focal Points)

National governments

Private

Sector

Multilateral & Bilateral Development Organizations

Civil Society - NGOs, CBOs

Proposal on Governance Structure for Adaptation Fund

Evaluation Office

M&E


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Costs of Administering Stand Alone Adaptation Fund Adaptation Fund

Source: UNFCCC and WB estimates

Note: Administrative costs of a stand alone AF could be saved by managing AF as part of existing GEF trust fund portfolio


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World Bank Contribution to Adaptation FundAdaptation Fund

World Bank’s

Multiple Roles under Adaptation Fund

Co-financing to Adaptation

Projects and NAPAs

Trustee of

Adaptation Fund

&

(GEF TF,

LCDF, SCCF)

As Implementing

Agency

Coordinating with

other IAs & EAs

on Adaptation

Projects

Technical

Support to

GEF Secretariat

Mainstreaming Adaptation

through PRSPs, CAS

Policy & Market Mechanisms

for Adaptation Investments

Capacity & Knowledge mgt

of Adaptation Programs

Support to Private Sector

on Adaptation Agenda


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World Bank’s Implementation of Adaptation FundGEF Funded Adaptation Projects

  • Kiribati Adaptation Program (SPA funded)

  • Columbia’s Caribbean Insular Human Health (SPA funded)

  • Pilot Adaptation in Coastal areas of Dominica, St. Lucia

  • (SPA funded)

  • Sustainable land management in Zambezi valley (pipeline) (SPA funded)

  • Pilot Climate Change Adaptation Measures in Andean Region (SCCF funded)

  • Caribbean Mainstreaming Adaptation to Climate Change (Stage II Adaptation funding)

  • Caribbean Planning for Adaptation to Global Climate Change (Stage II Adaptation funding)


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Multi-sector Approach - Kiribati Adaptation Project Adaptation Fund

  • Crop improvement programs to promote improved adaptation of cassava, yam, taro, sugarcane

  • Support to agricultural and rural development programs

  • Improving climate forecasting mechanisms

Agriculture

  • Improved sanitation

  • Management of solid and liquid waste

  • Vector control programs for dengue fever

  • Monitoring of areas prone to ciguatera outbreaks

Public Health

  • Hazard mapping done to avoid infrastructure in flood and landslide prone areas

  • Elevation of coastal infrastructure

  • Introduction of building codes

  • Protection of coral reefs

  • Replanting of mangroves

Fisheries

  • Regional collaboration in tuna negotiations

  • El Nino/La Nina forecasting

  • Licensing arrangements to decrease year-to-year fluctuations

Coastal Assets


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Conclusions Adaptation Fund

  • GEF management of AF with other Funds (GEF TF/SCCF/ LCDF) avoids additional costs and time associated with standalone administration of Adaptation Fund

  • Experience in managing GEF Trust Funds permits application of same standards/oversight to Adaptation Fund

  • Small and uncertain size of Adaptation Fund can be better managed as compliment to the portfolio of GEF Trust funds

  • Adaptation fund could benefit from the larger co-financing and global program resources

  • Use of existing trustee infrastructure to manage the Adaptation Fund can result in significant cost savings, which could be ploughed back into the fund to support more projects


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