adaptation finance - the overview emani kumar deputy secretary general & executive director,...

Adaptation Finance- The Overview

Emani KumarDeputy Secretary General &

Executive Director, ICLEI – South Asia

Presentation Outline:

© ICLEI 2012 www.iclei.org

• Introduction to climate adaptation finance• Global trends (e.g. amount allocated for adaptation finance, • Multilateral Mechanisms• Where the money is??• Bottom up Finance for Local Governments• ICLEI’s Work on adaptation• Conclusions

Climate Adaptation Finance


• adaptation to climate change has become a major agenda item in international climate policy, in particular under the UNFCCC and also at global and national levels.

• planning & design of adaptation finance is taking place at all levels.

Costs of Climate Change


Annual Funding Needs

2005 Billion of US$

By Year Mitigation Adaptation

EC (2009) 2020 94* 10-24

African Group (2009) 2020 200 >67

World Bank (2009) 2030 139-175 20-100

UNFCCC (2008) 2030 >65 28-59Source: IIED 2010, Briefing, Copenhagen‘s climate finance promise: six key questions

Financial Needs for Adaptation


• Estimated global adaptation costs:

– World Bank: $ 70 – 100 billion/year until 2030– UNFCCC: $ 60 – 186 billion needed globally in 2050, $

28-67 in developing countries • 80% to be spent in cities and out of this 54% will be on

infrastructure• Bottom-up approach needed – for local governments to

be able to access adaptation funds directly

Climate Change Funds

Region-wise Approved Vs Disbursed

Source: www.climatefundsupdate.org;June 2013

Climate Change Funds Funds Deposited

~10 bn USDPledged

~13 bn USDAF Adaptation Fund 134.57m 166.65mFA Amazon Fund (Fundo Amazonia) 128.91m 1031.87mCTF Clean Technology Fund 4073m 4936mCBFF Congo Basin Forest Fund 143.63m 186.02mFCPF Forest Carbon Partnership Facility 458.7m 458.7mGCCA Global Climate Change Alliance 385.36m 385.36m

GEEREFGlobal Energy Efficiency and Renewable Energy Fund 65.66m 169.5m

ICI International Climate Initiative 1081m 1081mICFI International Climate and Forest Initiative 1607.82m 1607.82mIFCI International Forest Carbon Initiative 67.06m 189.57mLDCF Least Developed Countries Fund 585.51m 604.74m

MDGMDG Achievement Fund - Environment and Climate Change thematic window 90m 90m

PPCR Pilot Program for Climate Resilience 142.27m 1155m

SREPScaling-Up Renewable Energy Program for Climate Resilience 450m 480m

SCCF Special Climate Change Fund 240m 258.58mSPA Strategic Priority on Adaptation 50m n/aUN-REDD UN-REDD Programme 166.03m 173.34m

Source: http://www.climatefundsupdate.orga/ data , accessed June 2013

Financing Adaptation - Multilateral Mechanisms


Current active multilateral mechanisms for financing adaptation to climate change at the global level, including: – Official Development Assistance (ODA), – The United Nation Framework Convention on Climate

Change (UNFCCC) Special Climate Change Fund (SCCF),– The UNFCCC Least Developed Countries Fund (LDCF), – The UNFCCC Adaptation Fund, – The World Bank’s Climate Investment Fund’s (CIFs) Pilot

Programme for Climate Resilience.

FM- Official Development Assistance


• ODA is international public flows that aim to promote development

• ODAs are grants or loans for developing countries• ODA cannot simply be labeled as adaptation funding• Climate Change can threaten development • So climate change funding should be new and additional to

existing ODA

FM- Global Environemntal Facility – LDCF & SCCF


• Global Environment Facility (GEF) funds adaptation measures through:- The Least Developed Countries Fund (LDCF) - The Special Climate Change Fund (SCCF)

• Both funds are voluntary & depending on contributions from developed countries.

• LDCF was tasked with financing the preparation & implementation of National Adaptation Programs of Action (NAPAs).

• Currently a total of $605.84million pledged to LDCF and an amount of $585.51million deposited.

• Only $13.23million dispersed by the LDCF.

FM- Global Environemntal Facility – LDCF & SCCF


• SCCF also has adaptation as its top priority.• SCCF supports both long-term & short-term adaptation

activities in water resources management, land management, agriculture, health, infrastructure development, fragile ecosystems, including mountainous ecosystems, and integrated coastal zone management64.

• Currently, there is $259.33million pledged to the SCCF, with a total of $230.96 deposited.

• Only $111.13 dispersed by the SCCF.

FM- Adaptation Fund


• The Adaptation Fund - established in 2001 - became operational in Bali under the Kyoto Protocol

• It is largely separate & distinct from the GEF. • finance concrete adaptation projects and programmes in

developing country Parties to the Kyoto Protocol • AF is not dependent on contributions of funding from

developed countries or ODA and it is a 2% levy on CERs from CDM.

• AF is pledged at $151.65million & a total of $134.57million deposited.

• It is very small when compared to both LDCF & SCCF

FM- Fast Start


• COP 2010, Cancun delivered the promise of balanced allocation of ‘fast start’ finance between adaptation & mitigation.

• Funding for adaptation is prioritized for least developed countries, small-island developing States and Africa.

• A formal commitment by developed countries to collectively provide resources approaching $30 billion for the period 2010 - 2012 to support developing countries’ climate efforts.

FM- Scaled-up funding


• COP 18 in Doha offered agreement on scaled-up funding by developed countries: estimated to be at $10 billion a year.

• COP 18 was a pivotal moment with respect to financing climate change adaptation: as lot of uncertainty between the end of the original fast start finance period, and the $100 billion commitment made in Copenhagen that begins in 2020.

• Developing countries were hoping for some certainty for the interim period, but….

FM- Green Climate Fund


• Green Climate Fund (GCF): A new multilateral funding for adaptation

• Agreed $100 billion will be mobilized annually for both mitigation and adaption activities by the year 2020

• Funds are to be new, additional to previous flows, adequate, predictable, and sustained, and are to come from a wide variety of sources, both public and private, bilateral and multilateral, including alternative sources of finance.

• Design of the GCF was agreed upon in Durban (although many structural elements are still undecided),

• Currently the GCF complements many of the existing multilateral climate change funds and it may eventually replace or subsume the other funds.

FM- Climate Investment Fund (CIF)


• CIF - Four different funding windows - Clean Technology Fund; - Forest Investment Programme- Pilot Programme for Resilience; - Scaling up RE Programme

• Implemented by National Governments with the support of MDBs in close collaboration with other development partners including UN & bilateral agencies.

• PPCR programs need to build on NAPAs and use existing adaptation funds

• Two Phases: Planning & Implementation• A total of $1 billion in contributions to the PPCR, but there

has only been $8million actually dispersed

FM- Climate Investment Fund (CIF)


• As of September 2011, 9 PPCR pilot countries: Bangladesh, Bolivia (Plurinational State of), Cambodia, Mozambique, Nepal, Niger, Tajikistan, Yemen, Zambia; as well as two regional programs in the Caribbean: Dominica, Grenada, Haiti, Jamaica, St. Lucia, St. Vincent and the Grenadines; and South Pacific: Papua New Guinea, Samoa, Tonga.

• 11 SPCRs have been endorsed and are underway in Bangladesh, Cambodia, Mozambique, Nepal, Niger, Tajikistan, and Zambia as well as Grenada, St. Lucia and St. Vincent and the Grenadines from the Caribbean and Samoa from the South Pacific.

• All other countries and regions are in the process of finalizing their SPCR design.

Where the money is2005-2025

Bottom-up Finance for Resilience Initiativelaunched at Resilient Cities 2011, Bonn

Call for inclusion of Local Government in development of funding/financing rules

Call for flexible finance of performance upgrade projects devloped bottom-up

Call for priority use of public funds for capacity+institution building for demand-driven market

Sources of Funds...


• Own funds• Provincial/National • Tax &Levies• Loans, Municipal Bonds• PPP• Corporate Social

Responsibility• Carbon Markets


• What is still missing after COP18? • Binding emission reductions• Clarity on actions and definitions• Clear governance structures for

international climate financing• Clear definitions for implementation

ICLEI‘s other initiatives....


• Cities Climate Registry (cCCR)• Earth Hour City Challenge (EHCC) along

with WWF• 40 cities climate adaptation activities

supported by Rockefeller Foundation• GEB/PPP investments• Small Grants Programme

In conclusion...


• Need for a more funds through various financial mechanisms• Call for for clarity in governance, financing architecture &

dispersion• Governments needs to start working mainstreaming climate

& DRR to become factors in conventional planning processes, project design and development decision making.

• Bottom-up planning process, technical and institutional capacity building and procurement

• Financial institutions needs to learn integration of resilience as a new design and project performance upgrading

• Governments start working with their own funds…

Thank you

www.iclei.org

[email protected]

adaptation finance - the overview emani kumar deputy secretary general & executive director,...

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