18 December, 2017, Webinar on NAP under the UNFCCC Process, Slycan Trust

Rohini KohliLead Technical Specialist – NAP Portfolio

UNDP Global Environment Finance

Climate finance for the National

Adaptation Plans process

Key messages

- National Adaptation plans are an instrument to identify and prioritize

investment needs for climate change adaptation and reduction of

vulnerability in the medium to long term

- Access to climate finance both for formulation and implementation of

national adaptation plans is required

- The scale of adaptation finance needs are unlikely to be met by any

single source of finance. Tapping and blending public, private,

international and domestic finance will be important to address

scaled up adaptation investments

- The Green Climate Fund readiness window for NAPs/other

adaptation planning instruments is an opportunity for countries to

advance their NAPs process. This will support the development of

adaptation investment pipelines and financing strategies to be

supported by GCF and other international and domestic sources.

What is the NAP process?

The national adaptation plan (NAP) process was established under the Cancun Adaptation Framework (2010).

It enables Parties to formulate and implement national adaptation plans (NAPs) as a means of identifying medium- and long-term adaptation needs and developing and implementing strategies and programmes to address those needs.

It is a continuous, progressive and iterative process which follows country-driven, gender-sensitive, participatory and fully transparent approach.

3

Under the Paris Agreement, the Global Adaptation Goal, Adaptation Communications

are key milestones. NAP process is well recognized in Article 7

ObjectivesThe Conference of Parties to the UNFCCC have agreed on the

following objectives of the NAP process:

• To reduce vulnerability to the impacts of climate change,

by building adaptive capacity and resilience; and

• To facilitate the integration of climate change

adaptation, in a coherent manner, into relevant new and

existing policies, programmes and activities; in particular

development planning processes and strategies, within

all relevant sectors and at different levels, as appropriate.

4

D. Reporting, Monitoring

and Review1. Monitoring the NAP process

2. Reviewing the NAP process to assess

progress, effectiveness and gaps

3. Iteratively updating the national

adaptation plans

4. Outreach on the NAP process and

reporting on progress and effectiveness

C. Implementation

Strategy1. Prioritizing climate change adaptation

in national planning

2. Developing a (long-term) national

adaptation implementation strategy

3. Enhancing capacity for planning and

implementing adaptation

4. Promoting coordination and synergy at

the regional level and with other

multilateral environmental

agreements

A. Laying the groundwork

and addressing gaps1. Initiating and launching of the NAP process

2. Stocktaking: identifying available

information on climate change impacts,

vulnerability and adaptation and assessing

gaps and needs of the enabling environment

for the NAP process

3. Addressing capacity gaps and weaknesses

in undertaking the NAP process

4. Comprehensively and iteratively assessing

development needs and climate

vulnerabilities

B. Preparatory Elements1. Analysing current climate and future

climate

change scenarios

2. Assessing climate vulnerabilities and

identifying adaptation options at the sector,

subnational, national and other levels

3. Reviewing and appraising adaptation

options

4. Compiling and communicating national

adaptation plans

5. Integrating climate change adaptation into

national and subnational development and

planning

Catalyzing adaptation finance

Slide 7NAP country-level training

Sector Example activities

Enabling

activities

Supporting the development of climate change adaptation-specific

policies, programs and plans

Policy and

legislation

Strengthening capacities of national institutions responsible for

adaptation

Agriculture Promoting diversified agricultural production to reduce climate risk

Energy Strengthening of energy transmission and distribution

infrastructure to cope with the expected impacts of climate change

Health Strengthening food safety regulations; developing or enhancing

monitoring systems

Transport Building protection from climate hazards into existing transport

infrastructures (e.g. Disaster Risk Reduction measures)

Water and

sanitation

Monitoring and management of hydrological and meteorological

data

What needs to be financed in adaptation?

08.01.2018

Analysing impacts of climate over development as usual

Agriculture

Water

Health Housing

Five-year plan

budget outlay is

“business as

usual”

development

Additional

financingClimate

Climate

Climate

Climate

Climate

- Identifying development priorities

- Prioritizing programmes/projects and capacity building activities to support these activities

Catalyzing

Adaptatio

n

Finance

Adaptation Finance is unlikely to be at the scale required without an

effort to remove a few key barriers

Need to create conditions that attract finance without

compromising development goals and sharing cost burden

on end-users.

Multiple stakeholders (investors, end-users, policy makers,

supply chains, etc)

Broad spectrum of policies, incentives and support

mechanisms to

(a) reduce risks (i.e. lower cost of capital)

(b) increase rewards (i.e. premium prices, credits, etc)

Catalyzing Adaptation Finance

Recipient countries face climate finance challenges despite increased financial flows from public, private, domestic & international sources:

Responding to country needs & demand: Emerging lessons from UNDPs readiness support

• Lack of national capacities to navigate complex financial landscape to access, manage, deliver, track & report on different forms of finance

• Barriers to catalyse private finance to address the climate challenge as public finance alone cannot provide the “clean trillion” necessary to avoid 2°C rise

• Limited alignment between climate & development inhibits economy-wide transformation; climate finance must be mainstreamed into business, planning & development policy

Financial Planning

• Understand current climate expenditures

• Assess needs & priorities, identify barriers to investment

• Identify policy mix & sources of financing

Accessing Finance

•Directly access finance

• Blend & combine finance

• Formulate project, progamme, sector-wide approaches to access finance

Delivering Finance

• Implement & execute project, programme, sector-wide approaches

• Build local supply of expertise & skills

• Coordinate implementation

Monitor & Report

• Track progress

• Monitor & report flows

• Performance-based payments

Elements of Climate Finance Readiness

• National systems must be “ready” for climate finance so that countries can access public & private, domestic & international finance

• Strengthening planning, access, delivery, and M&E capacities ensures climate finance is available & effective in all countries

Elements of Climate Finance Readiness

• National systems must be “ready” for climate finance so that countries can access public & private, domestic & international finance

• Strengthening planning, access, delivery, and M&E capacities ensures climate finance is available & effective in all countries

A Defining Framework for Medium and Long-Term Climate Change Adaptation Challenge

Catalyzing AdaptationFinance

Integrated Model “Blended Finance

CapitalMarket

Private Sector

Source: UN-MPTF, 2014

Blend

FSources

Integrated Model “Blended Finance”

GCF perspectives on the impact of

adaptation planning

Understanding climate impacts and vulnerabilities

Designing strategies and actions to address these impacts

Achieving ownership and investment by key actors (private/public, sub-national, etc.)

Creating adaptation financing strategy (including GCF project pipeline)

Adaptation planning

Scope

• National adaptation planning (NAPs)

• Other adaptation planning processes

Modalities

• Readiness Programme up to $3M/country

• Funding proposals under Adaptation window

Governing instrument

Paris agreement

Board

Adaptation planning

processes

Key messages

- National Adaptation plans are an instrument to identify and prioritize

investment needs for climate change adaptation and reduction of

vulnerability in the medium to long term

- Access to climate finance both for formulation and implementation of

national adaptation plans is required

- The scale of adaptation finance needs are unlikely to be met by any

single source of finance. Tapping and blending public, private,

international and domestic finance will be important to address

scaled up adaptation investments

- The Green Climate Fund readiness window for NAPs/other

adaptation planning instruments is an opportunity for countries to

advance their NAPs process. This will support the development of

adaptation investment pipelines and financing strategies to be

supported by GCF and other international and domestic sources.

• Low Emission Capacity Building Programme (LECB) EC, Germany - BMU/ICI, Australia

• National Adaptation Plan Support Programme (with UNEP) LDCF, SCCF, Govt of Japan (Caribbean and Pacific region)

Integrating Agriculture into NAPs (with FAO)

Germany BMUB

• GCF Readiness Programme (with UNEP, WRI) Germany BMUB

• National Communications Support Programme (with UNEP) GEF

• Climate Public Expenditures & Institutional Reviews (CPEIRs) Canada-SIDA, multiple partners, LDCF, SCCF

• Climate Finance Options Platform (with World Bank) World Bank, UNDP

• National Adaptation Programmes of Action (NAPAs) LDCF

UNDP & Partners’ Readiness Initiatives

THANK YOU FOR YOUR ATTENTION

ROHINI KOHLI

UNDP Lead Technical Specialist, NAP Portfolio

Rohini.kohli@undp.org

THANK YOU FOR YOUR

ATTENTION