Climate Change and the Most Vulnerable Countries – the Imperative to Act Veerle Vandeweerd United Nations Development Programme July 2008
Why integrate climate risks into development? Adaptation is central to development effectiveness: • Climate change could stall or even reverse development gains • Addressing climate change impacts can make poverty reduction, disaster prevention, etc. more successful (win-win) • Effective institutions are those that manage climate change risks on an ongoing basis • Preventing climate damages is cost-effective versus recovery
The HDR 2007: Focus on adaptation • Impact of climate change can be a one way ticket to absolute poverty. • Action is needed and is needed now. • International Action: • Deliver on commitments; • Climate proof official development assistance; • Pay more attention to silent catastrophes and impact of climate change on development aid; • Scale up and coordinate funds;
HDR 2007: Focus on adaptation • National Action: • Mainstream adaptation • Enhance climate resilience of development process; • Secure new and additional financing. • Adaptation needs mainly to occur at the community level.
Whatdoes it mean to integrate climate risks into development? • UNDP defines adaptation as maximizing development benefits by integrating climate change into strategies, policies, and measures • Key Actions • Climate change scenarios systematically incorporated • Socioeconomic climate vulnerability assessed • Cost effective alternative responses assessed and implemented (development and poverty reduction dividend) • ‘Adaptive systems’ created for managing evolving risks • Institutional capacity & cross-agency relationships strengthened
Project Project Bilateral Across Scales UNDP Programmes climate-proofed National Systems created* Japan Programme • GEF • LDCF • SCCF • SPA 1. CC integrated risks into poverty reduction policies and measures 2. Financing options expanded to meet national adaptation costs Disaster Risk Coastal zone Agriculture Water Project Project Project Project Project 3. Community-based adaptation enhanced * includes enabling activities
Expanding financing options to meet national adaptation costs • Adaptation: • Expanded financing options for meeting national adaptation costs • Baseline: • Ongoing development funding and national programmes National Budget ODA At Risk Assessing costs, financing options New and additional resources Private sector involvement Local - - - - National
Financing adaptation Adaptation financing is dependent on public resources and international support Ongoing initiatives • GEF: SCCF, LDCF, … • Bilaterals • Multilaterals: e.g. WB SCF, UNDP Japanese funded pilot • UNFCCC: Adaptation Fund New and additional resources needed • Up to 50 billion US$/year • Learning by doing
Sources of investment and financial flows: Adaptation • Private sources of funding can be expected to cover a portion of the adaptation costs in several sectors. In particular in the AFF and the infrastructure sector where investment in privately owned physical assests will be needed. • However, public resources are expected to play a predominant role in all adaptation sectors and in particular in the coastal zone and water sector • Measures will be needed to encourage/support private sector adaptation and additional sources of funding dedicated to adaptation will be needed. • Adaptation = good development policy
Trends and priorities • Most importantly priorities should be identified by developing countries themselves in accordance to their specific national conditions and needs.