Climate Change Adaptation Financing: GEF Trust Fund vs. UNFCCC Funds

1. Climate Change Adaptation Rawleston Moore AU Seminar April 9th, 2012

2. CC Mission GEF projects contribute to the overall objective of the United Nations Framework Convention on Climate Change (UNFCCC) "to achieve [...] stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner" (from the text of the UNFCCC, Art.2). Mitigation: Transform the market development paths of eligible countries into trajectories with low GHG emissions. Adaptation: Assisting developing countries in becoming climate resilient by promoting both immediate and longer-term adaptation measures in policies, plans, programs, and projects.

3. Climate Change Adaptation

4. GEF and Adaptation • LDCF and SCCF established under the UNFCCC in 2001. • Top priority is to finance adaptation projects; • managed by the GEF. • SPA established as a precursor to operationalization of LDCF and SCCF • Allocation of $50 million from the GEF Trust Fund. • 26 projects in different focal areas • Demonstrated implementation of on-ground adaptation measures. 4

5. LDCF and SCCF Strategic Objectives • Reduce vulnerability to the adverse impacts of climate change – e.g. reduced risks to economic losses through implementation of adaptation measures • Increase adaptive capacity to respond to the impacts of climate change – e.g. within relevant development sectors and natural resources; diversified and strengthened livelihoods and sources of income • Promote transfer and adoption of adaptation technologies –as defined under the Climate Convention (example: SCCF-TT Jordan)

6. Climate Change Adaptation: LDCF and SCCF • LDCF projects support National Adaptation Plans of Action (NAPAs) and identifies ‘urgent and immediate adaptation needs’ • SCCF adaptation projects support adaptation actions in non-annex I parties • Priorities for financing: water, land management, agriculture, health, infrastructure development, fragile ecosystems, integrated coastal zone management, disaster risk management and prevention

7. Climate Change Adaptation: UNFCCC Funds (LDCF & SCCF) vs. GEF Trust Fund GEF TRUST FUND: • Incremental cost • Global benefits • STAR • Conventional Co-financing UNFCCC FUNDS: (LDCF & SCCF) • Additional cost • Adaptation benefits • No STAR • Different approach to co-financing

8. LDCF and SCCF Achievements • $411.6 million for 95 projects and 4 programs in Climate Change Adaptation • 58 projects and 1 program in 42 Least Developed Countries through the Least Developed Countries Fund (LDCF). • 35 projects and 3 programs in 33 developing countries through the Special Climate Change Fund (SCCF). • 47 National Adaptation Programs of Action completed, 48 financed (LDCs) • Made over $2.2 billion worth of development investments climate resilient. 8

9. LDCF/SCCF and Development Sectors Distribution of LDCF funds across different sectors Distribution of SCCF funds across different sectors

10. Summary – LDCF and SCCF • Implementing concrete adaptation actions on ground • Strong catalytic effect • Fulfilling the UNFCCC mandates and adaptation needs of the most vulnerable • Moving towards programmatic approaches 10